Veteran Japanese equity fund manager Andrew Rose will retire from the investment management industry at the end of June 2019, Schroders has announced.
Rose, who has spent 38 years with the company, was lead manager on a pair of Morningstar Gold Rated mandates, the Schroder Tokyo fund and the investment trust Schroder Japan Growth (SJG). The funds' ratings have been placed under review.
He will be replaced by Masaki Taketsume, who will assume management of both funds from July 1 2019. Taketsume joined Schroders in 2007 and the firm says the move represents the execution of a long-term succession plan.
Taketsume has been working together with Rose on the portfolios since 2014 and relocated from Tokyo to London in 2014. He will be supported by Nathan Gibbs, investment director for Japanese equities, as well as a wider team.
“Masaki is ideally placed to take on Andrew’s fund management responsibilities,” said Nicky Richards, global head of equities at Schroders. “We are confident that Masaki’s fund management expertise will ensure investment continuity for our clients.”
Rose took over the management of Schroder Tokyo in April 2004, returning 155% since – more than twice that of the Topix at 75%. He was named manager of Schroder Japan Growth in November 2007, since when he has beaten the Topix by returning 116% versus the index’s 23%.
His best years in the past decade came in 2010 and 2016, when the Topix barely moved but both of Rose’s offerings returned in excess of 20%, according to Morningstar Direct data.
Morningstar Analyst View
The funds' ratings have been placed under review. Morningstar analyst Peter Brunt says: "We will meet with Takesume in the coming weeks to better understand how the fund will be managed in the future."
Morningstar had rated Rose as one of the most experienced equity managers in his peer group, noting he “is supported by a strong and broadly stable team of Tokyo-based analysts and portfolio managers”.
In May, Brunt said he welcomed the succession planning implemented when Taketsume moved to London: “Taketsume’s experience is primarily in covering IT stocks, so Rose has been working on broadening his coverage and thinking more in terms of portfolio construction.”
Rose is the second long-standing equity fund manager at Schroders to announce their retirement this year, with US-based Jenny Jones set to step down at the end of March.
Meanwhile, Richards will step back from her role as global head of equities in the same month, to be replaced by current UK and European equities boss Rory Bateman.
Morningstar’s analysts note that the head of equities role at the company does not involve espousing a house view. “It’s more a position that provides oversight of fund managers and an extra pair of eyes to ensure they stick to the various investment approaches.
“As such, we don’t see this as a material change, and an in-house appointment provides a sense of continuity.”
