The new fund will retain the name of the former and will give retail investors access to the same strategy previously reserved for institutional clients.
Martin Skanberg and Rory Bateman will manage the newly-merged fund, having previously held responsibility for the institutional fund. Skanberg and Bateman will assume management of the fund from 25 March 2011.
The current manager of the retail fund, Riita Hujanen, will maintain management responsibility for two other funds – ISF Euro Active and ISF Italian Equity – which she already manages.
Martin Skanberg, co-manager of the newly merged fund, said merging the two funds will mean UK retail investors will have access to a highly successful approach which has previously delivered outperformance through different market environments.
He added, ‘While peripheral European countries continue to face substantial difficulties we expect the core European recovery to continue through 2011.
‘Corporate profitability and cash generation, particularly amongst the larger companies, is strong following a period of excellent cost management during the downturn.
‘European equity market valuations are also attractive, which underpins the investment case for European equities.’
The European equity team at Schroders consists of 17 fund managers and analysts, and has £6.9 billion under management as at 31 December 2010.