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Schroders closes Shatney’s US Alpha Plus fund

Schroders has closed Joanna Shatney’s Schroder US Alpha Plus fund after less than two years, owing to the small size of its assets.

The fund, which launched in December 2011 to offer exposure to “the best of the S&P”, grew to just £6.6m by the end of October 2013. It closed on 27 November.

Schroders managing director for UK intermediary Robin Stoakley says: “We continually review our UK fund range and believe the Schroder US Alpha Plus fund is too small to be run economically.”

Schroder US Alpha Plus has outperformed its S&P 500 benchmark, returning 43.3 per cent between launch and 31 October 2013 against the benchmark’s 42 per cent, its latest factsheet shows.

However, Chelsea Financial Services managing director Darius McDermott argues the fund’s relatively weak performance over the past year could be one of the reasons it failed to attract enough assets.

He says: “Over one year, it is right on the third/fourth quartile cusp of performance so it has has good absolute numbers but it’s still 3 or 4 per cent behind the average fund in its sector. That is why it will have failed to attract investors.” 

Other US funds McDermott highlights as being attractive include Stephen Kelly’s Axa Framlington American Growth fund, Jenny Jones’ Schroder US Mid Cap fund and Nick Ford and Hugh Grieves’ CF Miton US Opportunities fund.


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