Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Schroders sets out hard closure plans for UK funds

Schroders sets out hard closure plans for UK funds

Schroders has told analysts that it is likely to hard close some of its most popular UK equity funds in the months ahead.

‘We have at the moment six soft-closed funds and they are mainly in the UK equity/UK high alpha sector, some of which will probably become hard closed in the coming months,’ said Massimo Tosato, global head of distribution at Schroders.

While Schroders has maintained that they are still open, the firm has discouraged flows into Citywire AAA-rated Julie Dean’s (pictured) £2.7 billion UK Opportunities and £919 million UK Equity funds.

Tosato cited the recent hard closures of AA-rated Paul Marriage’s £1.3 billion Cazenove UK Smaller Companies and £438 million Cazenove Absolute UK Dynamic funds as evidence of the group’s willingness to stem inflows.

‘We manage capacity, as you know, very carefully. It’s part of the quality of our offering and we are very careful in continuing managing it on a day-to-day basis,’ commented Tosato.

In addition, Tosato relayed that the Schroder GAIA Cat Bond fund was on the brink of closure. ‘We are managing the capacity of the Ucits version of the catastrophe bonds fund because they’ve been so successful that we think we will have sold out the Ucits way to manage it by the end of April, just six months from launch,’ he stated.

Schroders has already closed the £920 million long/short GAIA Egerton Equity fund.

Michael Dobson, the Schroders chief executive, observed that the group was equally prepared to launch new products after closing popular funds.

‘I think a good example was we closed our Asian multi-asset income fund, which was very successful,’ he said. ‘We closed that and we launched as a follow-up a global multi-asset income fund. So it’s an example of success but also successive strategies to pick up that opportunity.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Julie Dean
Julie Dean
153/155 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 5.06%
Andrew Brough
Andrew Brough
109/155 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 15.79%
Paul Marriage
Paul Marriage
12/72 in Alternative UCITS - Long/Short Equity (Performance over 3 years) Average Total Return: 19.88%
Citywire TV
Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter