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
'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.
News sponsored by:
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
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
Look up the shares
Look up the fund managers
More from us
- Schroders launches low-cost UK equity fund with 0.40% TER
- JP Morgan to launch the UK's first 'RDR-ready' Oeic
On the road
by Dylan Lobo on Jul 28, 2014 at 08:03