'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.