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.
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.