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/a732866

Schroders shuts low cost UK Core fund

by Eleanor Lawrie on Feb 07, 2014 at 13:19

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 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

  • Schroder UK Core A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the shares

  • Schroders PLC (SDR.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Sue Noffke
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Andy Simpson
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Jessica Ground
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • James Illsley
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • John O'Brien
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Christopher Llewelyn
    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