After a disappointing 1997/98 Pep season, Schroder is launching three new Peps for the current tax year designed to simplify the decision-making choice for investors.

The three Peps include a higher-risk package with exposure to smaller companies and non-UK markets, a lower-risk package which is UK-based and a package designed to provide income and growth.

The Schroder global smaller companies Pep is at the higher end of the risk spectrum. Schroder believes that smaller caps will outperform this year.

Schroder Unit Trusts managing director Clive Boothman says: "The smaller companies Pep has good prospects for investors who are hoping to see significant returns on their investment."

In the past three months, the UK smaller-companies Pep has shown growth of 11 per cent.

The Schroder UK balanced growth Pep uses three Schroder funds to create a UK portfolio which combines big, medium and smaller companies.

For investors seeking income, Schroder is offering the income & growth Pep, which will invest in the Schroder income fund.

Schroder took about £308m in Pep business in 1997/98 while both Fidelity and Perpetual took over £1bn.