3rd March 2011

Schroders launches first fund in low cost active range

Schroders announces the launch of Schroder UK Core Fund, the first in a suite of actively-managed products, designed to provide customers with a low cost, lower risk, transparent alternative to passive investing.

Open to investors in March (subject to FSA approval) the fund, which will have an estimated total expense ratio capped at 40 basis points, aims to generate outperformance after fees of 1 per cent per annum versus the benchmark (FTSE All Share) by investing in UK equities.

The fund will be co-managed by Sue Noffke, Andy Simpson and Jessica Ground who form Schroders’ UK Prime Team, a specialist unit within the broader UK equity team headed by Richard Buxton. The UK Prime Team runs £4.7 billion*and has a long, successful track record** of managing assets to the UK Core Fund’s specifications. The team’s track record on a representative portfolio is 1.3% per annum net of fees**.

Schroders’ managing director UK intermediary Robin Stoakley said:

“I am very excited about the launch of this fund. It’s the first in a suite of low cost, actively managed products that we will offer investors. We believe that actively managed funds with strong fundamental investment processes like Schroder UK Core are a great alternative to passive funds which simply allocate assets according to size and are destined to underperform. In an investor’s portfolio a low cost, lower risk fund like Schroder UK Core has an important place alongside higher octane funds such as our Alpha Plus range.”

Schroders’ head of UK equities Richard Buxton said:

 “We have a depth of talent and experience within the UK Prime team. Sue, Andy and Jessica have excellent performance track records, generating top-quartile returns year-to-date, and over three and five years*. I am confident that together they will continue to generate strong returns for our investors".

Schroders has a 15-strong UK Equity investment team, allowing the fund managers to benefit from the collective insight and ideas of a tightly integrated group of leading UK analysts and market specialists. On average, the team has 13 years of UK equity investment experience.

Investments