Matthews (pictured), who currently runs the £2bn Jupiter Income, £367m Jupiter Growth & Income and £15m Jupiter UK Alpha funds, will take over the Schroder portfolio in mid-October.
The manager lost his FE Alpha Manager status in the latest rebalancing, but his record is still very strong.
Our data shows he has returned 232.2 per cent over a 10-year period, beating his peer group composite by 50.69 percentage points.
Performance of managers vs peers over 10yrs
Source: FE Analytics
By point of comparison, Buxton has returned 186.24 per cent over this time, with more volatility.
However, it is worth pointing out that two of Matthews’ funds have an income mandate, which tends to dampen volatility.
Schroders has also bought in Neptune’s Alex Breese, who is set to take over the Schroder UK Equity and Schroder ISF UK Equity funds in July. These are both currently headed up by Errol Francis, who is also set to join Old Mutual in June.
Breese currently runs the Neptune UK Special Situations portfolio. He has consistently beaten his peer group composite since he started running funds in December 2006, returning approximately the same amount as Buxton in the process.
Managing director of UK intermediary Robin Stoakley says he is very happy with the appointments, but accepts that they will both have a very different style from Buxton, who has served the Alpha Plus fund so well.
"We were never going to find a manager who runs money in exactly the same way as Richard," he said.
"Our intention was to find a manager who could deliver the kind of returns investors have come to expect from the Alpha Plus fund, but with their own style."
Performance of fund vs sector and index since launch
Source: FE Analytics
"If you look at the track record of both managers, they’ve delivered very strong returns with a high level of alpha and a relatively low tracking error and volatility. For us, we are very pleased."
Of the three managers’ main funds – Schroder UK Alpha Plus, Jupiter Growth & Income and Neptune UK Special Sits – Matthews has the best record over five years, followed by Breese and then Buxton.
Buxton’s fund has been the most volatile of the three, and has also added the least amount of alpha – or value – to its benchmark, which for all three is the FTSE All Share.
Schroder UK Alpha Plus has the better record compared with Jupiter Growth & Income over the last decade, though Matthews’ fund once again comes out on top in the alpha standings.
Buxton is set to join Old Mutual in June, meaning that the fund will be without a lead manager for four months or so.
"Sue Noffke, who currently heads up the Schroder Income Growth trust, is currently overseeing all of Richard’s portfolios," explained Stoakley.
"For the very brief period before Alex Breese’s appointment in July, Sue will oversee the Alpha Plus fund. Once Alex arrives, they will both oversee the portfolio, until Philip arrives later on in the year, in October."
Managing director of Chelsea Financial Darius McDermott says he has been impressed by both the speed and quality of the announcements, and that investors in UK Alpha Plus should be pleased by the appointment.
"Schroders has managed to make some quality hires in a very short space of time, which is no mean feat and demonstrates both the attraction of Schroders as an investment house and the importance the company has placed on finding a credible replacement for Richard Buxton," he said.
"Both [Matthews and Breese] have very good track records and their five-year numbers are in fact better than those of Richard Buxton."
"We have previously tipped Alex Breese as an up-and-coming manager, Philip Matthews we know less well."
"Neither manager has the same gravitas as Buxton, but they are sound replacements for the funds Richard and his deputy ran."
"We will be keeping Schroder UK Alpha Plus on a 'hold' pending a meeting with Matthews, but we definitely don't think there is any reason for investors to panic," he added.
Schroders is yet to announce who will take over from Buxton in running the Schroder UK Growth investment trust, but the group says it is currently in discussions.