Schroders has launched the first in a range of low-cost funds as it looks to take on the passive investment market.
The Schroder UK Core Fund will have a total expense ratio (TER) capped at 0.40% and will aim to generate outperformance after fees of 1% per annum over the FTSE All Share.
Launch of the fund follows JPMorgan Asset Management's launch of the UK Active Index Plus fund, which will carry a TER capped at 0.55%.
The fund will be co-managed by Sue Noffke, Andy Simpson and Jessica Ground who form Schroders’ UK Prime Team, a specialist unit within the broader UK equity team headed by Richard Buxton. It will open to investors in March.
According to Schroders, the team's track record on a model of the fund is 1.3% per annum net of fees.
Buxton (pictured) said: 'We have a depth of talent and experience within the UK Prime team. Sue, Andy and Jessica have excellent performance track records, generating top-quartile returns year-to-date, and over three and five years.'