Schroders calls time on low-cost active fund

Schroders is to wind up its £16m UK Core fund after failing to gain traction for its first ‘low-cost active’ product.

The fund was launched in March 2011 amid a flurry of debate about providing a low cost actively-managed alternative to passive products.

While the fund managed to outperform its FTSE All-Share index benchmark according to FE Analytics data, it failed to raise sufficient assets. A spokesperson for Schroders said the fund was “too small to be run economically”. It will close on March 17.

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The product is managed by Sue Noffke, Andy Simpson and Jessica Ground.

Schroders still runs another ‘low-cost active’ product, the Schroder QEP Global Core fund, which has £783m in assets.