Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a740397

Schroders sets out hard closure plans for UK funds

by Robert St George on Mar 14, 2014 at 11:14

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 here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Cazenove UK Opportunities B Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cazenove UK Equity B GBP
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroder UK Mid 250 Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cazenove UK Smaller Companies B Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cazenove Absolute UK Dynamic P1 GBP Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroder GAIA Cat Bond F Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroder GAIA Egerton Equity A Dis GBP
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Julie Dean
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Andrew Brough
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Paul Marriage
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet