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.
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.’