The board of the Schroder UK Growth trust has retained the fund house to run the portfolio following a beauty parade - but the company's investment style will no longer follow the group's 'business cycle' process.
The trust has been reviewing its investment management options over the past few weeks, in the wake of Dean’s departure from Schroders.
"A substantial number of managers indicated an interest in managing the company's portfolio," the board said in a statement.
It added that the portfolio's investment objective will not change, despite the change in manager and style.
Matthews, manager of the £1.5bn Schroder UK Alpha Plus fund, has been appointed based on what the board called a “disciplined investment process”, with a focus on long-term earnings and valuations.
His appointment means the trust will no longer be run by the business cycle team within Schroders UK equity division, of which Dean formed a part.
The remaining members of that team, including the likes of Matt Hudson, had run the trust in the period since her departure.
Schroders has proposed a fee reduction and will pay the costs of management transition: the trust's AMC will fall from 0.6% to 0.5% following the change.
The changes will mark the third different manager for the trust in the past 19 months, following Richard Buxton's departure from Schroders last March.
Schroder UK Growth chairman Alan Clifton said: “The decision to remain with Schroders reflects the fact that they put forward a highly rated manager in Philip Matthews with an excellent and consistent investment process and performance record and a world class support team.”
“We have also been impressed with Schroders' commitment actively to promote the company and their strong desire to retain this mandate.”
