Lloyd, who managed the Schroders income maximiser and UK income defensive funds, has been placed on three months’ gardening leave.
Management of the funds will pass to John Teahan. He will report to Thomas See, who was previously co-head with Lloyd and now becomes head of the open-ended structured products business.
Nick Purves will continue to run the equity positions in the portfolios.
Lloyd’s role as head of structured solutions will be passed to Luke Browne, who alongside See will report to head of multi-asset and structured solutions John McLaughlin.
Schroders’ income maximiser has grown to £254m since launch in November 2005. Its UK income defensive fund launched last month.
Hargreaves Lansdown senior analyst Meera Patel says: “This is a big blow for Schroders as Richard Lloyd was the brains behind the income maximiser offering and we have yet to meet John Teahan.
“The actual stockpicking is down to Nick Purves but Lloyd managed the covered call options where timing is crucial, especially in these markets.”