Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Schroders shuts low cost UK Core fund

Schroders shuts low cost UK Core fund

Schroders is to close its low cost active UK Core Fund two years after launch, as the group says it has become too small to run economically.

The £16.2 million fund, managed by Sue Noffke, Andy Simpson (pictured) and Jessica Ground, will close on 17 March.

'We continually review our UK fund range and as a result we believe that this fund is too small to be run economically,’ a spokesperson said. 

The fund was designed as a 'low cost, lower risk, transparent alternative to passive investing', with a total expense ratio (TER) capped at 40bps. Since launch in March 2011 to December 2013, the fund has returned 35.6%, compared with a 33.9% return for the FTSE All-Share benchmark.

But JP Morgan has said it has no plans to shut its UK Active Index Plus fund, which was launched just before Schroders' offering for a similar market, with a TER cap of 0.55%. 

The £85.7 million UK Active Plus fund, run byJames Illsley, Christopher Llewelyn and John O'Brien, has an annual management charge of 0.25% per annum and fixed expenses of 0.15% per annum. The fund has posted a 32.75% return versus a 29.68% rise by the FTSE All-Share over the 12 months to the end of December.

A spokesperson said the group has no plans to make changes to the fund range.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: 'women make very good wealth managers'

Profile: 'women make very good wealth managers'

JM Finn's head of investment Sarah Soar warns women in positions of seniority will remain an anomaly for generations to come

Wealth Manager on Twitter