The news comes following the shock announcement that Richard Buxton, head of UK equities, was defecting to Old Mutual Group, and in a week when two further departures from the UK equities team have been made public. Errol Francis and Ed Meier will be joining Buxton at Old Mutual in June.
Commentators have speculated about the order of events, asking whether Buxton knew about a deal, which went above his head and that he did not approve of.
Caroline Shaw, fund manager at Courtiers, said: “This puts a very interesting twist on the Richard Buxton story. Schroders had to act quickly because their UK team has been decimated with news of a third manager going to Old Mutual today.
"These are managers leaving, not analysts, and they have a load of money in those UK funds they cannot afford to see that going elsewhere. The timing of the announcement is crucial because it allows Schroders that element of security as people will naturally read into it that they are replacing the team."
Good fit
Cazenove has around £18bn of AUM, of which £5.8bn is within its investment fund business, £1bn is in Ucits alternative products and around £12bn in private banking. It was suggested by Bank of America Merrill Lynch that the acquisition of Cazenove would strengthen Schroders’ private banking division and could provide ‘a welcome shot in the arm’ following a period of mixed performance.
David Coombs, head of multi-manager investments at Rathbones Unit Trust Management, also said: "This could be a very good fit for Schroders following Buxton’s departure. We own a little bit of Paul Marriage’s Smaller Companies Fund and Julie Dean’s UK Opportunities Fund is also on our approved list. We don’t own it in my portfolios but that is more of an asset allocation call on the UK.
"When we were speculating here who Schroders might go for to boost the UK equities team back up Cazenove was top of the list, although there was not a very long list to be honest. I could see the attraction for Schroders, definitely."
Schroders has until close of play on 19th April to make an offer for the asset manager.
