Schroders in changes to UK equities unit, fees

Sue Noffke

Schroders, the biggest UK asset management firm with about £700 billion of assets, has announced several changes to its UK equities business as it declared that the UK market is “ripe” for active fund management.

The firm said its Schroders UK equities suite has been strengthened “with a new fund, building on two recently launched UK focused strategies, a competitive pricing review and a focus on sustainability.”

Graham Ashby and Duncan Green, who both joined Schroders from Santander Asset Management last year, have been appointed as co-fund managers to run the newly-named Schroder UK-Multi-Cap Income Fund.

“Graham and Duncan will build on their long track record of generating strong investment performance in the UK, whilst targeting a dividend yield of 5% per annum,” said Schroders.

Schroders has also introduced reductions in fees across its UK equity product range.

“For example, the Schroder Prime UK Equity Fund (I units) annual fee has been reduced from 52bps to 30bps,” said the firm.

“The fund is managed by Sue Noffke, Andy Simpson and Matthew Bennison.

“Fees have also been reduced for the Schroder UK Alpha Income Fund and the Schroder UK Alpha Plus Fund.

“The Z units are priced at 75bps and 80bps per annum respectively.

“The Schroder Income Growth Fund PLC, also recently adjusted its management fee lower to 45bps per annum.”

Schroders Head of UK Equities Sue Noffke said: “The UK market is ripe for active management and it is incumbent on us to identify these opportunities.

“We’re an established desk and the recent investments in our UK team only aids our goal of delivering successful outcomes for our clients.

“In what has been an eventful year, in the 12 month period to end August, we’re pleased to note eight Schroder UK equity products have been placed in the first quartile of their respective IA UK Equity sectors.

“Today’s announcement provides us with the ability to further engage clients on the opportunities across UK equities and our capabilities.”

Doug Abbott, Head of UK Intermediary, Schroders, said: “UK equities continue to be a significant sector for UK investors and these developments provide us with a fantastic opportunity to demonstrate our commitment to the sector.

“We have always had a strong suite of strategies in UK Equities and, in recent months, have now evolved our range to offer attractive pricing, a dedicated sustainable strategy, a new income fund and the Schroder British Opportunities Trust.

“We will always look to strengthen our offering by developing the funds and solutions that best meet our clients’ needs.

“Our UK Equities investment platform provides us with the opportunity to speak with our clients and distil the type of risk profile or style of product which bests fits their broader portfolio of investments.”