View more on these topics

Schroders to launch low-cost UK fund

Schroders is launching a low-cost active fund designed as an alternative to passive investing in anticipation of the RDR.

The Schroder UK core fund will have a maximum total expense ratio of 40 basis points and will target outperformance after fees of 1.3 per cent a year versus its FTSE All-share benchmark.

The fund is set for launch on March 18 and will be the first in a suite from the firm.

Schroder UK core will be managed by the Schroder UK prime team trio of Sue Noffke, Andy Simpson and Jessica Ground, who manage a total of £4.7bn of assets.

The fund will have between 50 and 65 stocks and a 1.5 to 3.5 per cent tracking error. It will have up to a plus or minus 3 per cent active position with the biggest 20 companies in the All-share and up to a plus or minus 2 per cent exposure to all other companies. There will also be up to a 5 per cent plus or minus weighting to each sector.

Ground says: “Targeting 1 per cent net is a good level of performance. That would make it upper quartile in the IMA UK sectors over a longer timeframe, making it an ideal core product.”

Last month, revealed that JP Morgan was launching a low-cost active fund. The JPM UK active index plus fund is a rebrand of the firm’s UK active 350 offering and has a maximum TER of 0.55 per cent, including a 10 per cent performance fee.

Chelsea Financial Services managing director Darius McDermott says: “While there is always going to be an appetite for good active fund managers, these products offer a strong alternative to the underperformers in the active area.”


The developing picture

Last week was busy – and I don’t just mean because of the inflation figures and the Bank of England’s quarterly inflation report. As well as all the usual elements of a busy working week for someone who laughingly calls himself “semi-retired”, I found myself chairing a round table discussion for Cofunds and moderating a […]


Aviva life and pensions sales up 16% in 2010

Aviva has announced increased life and pension sales of 16 per cent to £10.3bn and a 19 per cent increase on total long-term savings to £11.8bn in 2010. Announcing its annual results for the year ending December 31, 2010 today, Aviva reports a 35 per cent increase in pre-tax profits to £2.44bn, up from £1.81bn […]


Providers count the annuity cost to men of ECJ ruling

The ECJ’s decision to ban gender pricing for annuity products will cost a man with a £100,000 pension pot £12,000 over their lifetime, according to A J Bell calculations. Earlier today the European Court of Justice confirmed that offering annuity prices based on gender will be illegal from December 21, 2012. A J Bell marketing […]

Rock offering 90% LTVs for first-timers

State-backed bank Northern Rock has launched a range of 90 per cent loan-to-value mortgages aimed at first-time buyers. The range includes a two-year fixed rate mortgage at 5.99 per cent, a three-year fixed rate at 6.49 per cent and a five-year fixed rate at 6.59 per cent. There are no product fees for any of […]

UK gilts: Shaken and stirred

Mike Riddell, fixed income portfolio manager at Allianz Global Investors, reviews the performance of the UK government bonds market post-Brexit and assesses its future prospects, as well as giving his outlook for global fixed income markets and yields movements. In addition, he provides a brief analysis of the impact of Brexit and the Bank of […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Andrew Whiteley 3rd March 2011 at 9:06 am

    Whilst the low annual fee is to be applauded, what will make this fund any more likely to outperform its benchmark than any other active fund?? I suppose the 1% reduction in AMC will help performance but surely the risk of underperformance is not compensated for by the chance of such a small additional return. This and the JPM fund are simply knee jerk marketing reactions to the rise in popularity of ETFs and Index Tracking funds in the retail sector but I cannot see advisers looking at these as viable alternatives to passive funds where you are certain of achieving benchmark less fee performance….

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm