Buxton’s alpha style unleashes investment trust

Recent changes to the investment style of the Schroder UK Growth Fund plc have unleashed top quartile performance.

Over the first six months, the fund has outperformed the FTSE All Share by 5.5%.

Shareholders voted to convert the investment style of the Schroder UK Growth Fund plc, managed by Richard Buxton, to mirror that of the top performing Schroder UK Alpha Plus fund also managed by Buxton.

Schroder UK Alpha Plus has delivered impressive returns of 142.26% since launch outperforming the FTSE All Share by 61.56%. Commonality between the two funds is now very high with an 80-90% crossover. The Schroder UK Growth Fund plc is now an unconstrained, focussed portfolio of Buxton’s highest conviction stock ideas. As an investment trust, the Fund has an additional ability to use gearing.

Richard Buxton, manager, Schroder UK Growth and UK Alpha Plus, said: “Hugging an index may have delivered good returns over the last few years with the FTSE All-Share racking up double-digit growth; however, such a strategy is unlikely to be so desirable should the index start fluctuating more heavily. I believe a more flexible, active, stockpicking approach, such as the one we use in Schroder UK Alpha Plus, and more recently in the UK Growth investment trust, makes sense now more than ever for long-term investors.”

Robin Stoakley, Managing Director, Schroders’ UK Retail Business, said: “The Board received strong support from shareholders to convert Schroder UK Growth to mirror the successful formula of the Schroder UK Alpha Plus. The Funds’ excellent performance over the first six months has proved how the Alpha Plus investment style can work harder to deliver superior returns.”