Schroders' Head of UK Investment Richard Buxton is leaving to join rival company Old Mutual, it was announced Friday.

Buxton, one of the UK's top fund managers, will step down in June after 11 years at the company.

It comes as a serious blow to Schroders as Buxton runs more than £4.0bn for the group. He has helped steer the UK Alpha Plus fund to become one of the top performers of the past decade.

Broker Charles Stanley said it would remove the fund from its 'buy' rating until a successor is appointed.

"We have decided it is prudent to remove this trust from the approved funds list until further announcements are made regarding the future management arrangements," the broker said in a statement.

Investors have been advised to remain calm as Schroders said it was confident of a successful handover by June and expects to announce a replacement in a couple of weeks.

RD

Related share prices
Schroders (SDR) share price
Old Mutual (OML) share price