Schroders cuts initial charge across range by 200bp

Schroders has cut the initial charge on a range of unit trusts from 5.25% to 3.25% ahead of the Retail Distribution Review.

From today, the new initial charge will apply to the ‘A’ unit class of 23 of its retail portfolios, including Richard Buxton’s UK Alpha Plus fund and Andy Brough’s UK Mid 250 fund.

Six NURS funds including multi-manager portfolios are also affected. The group said the move brings into line fees across its fund. A number of other groups have been adjusting their fee structures ahead of RDR.

Schroders has already launched a range of Z share classes across its UK fund range which do not pay trail commission.

M&G, Rathbones, and Cazenove are among those also considering adding clean fee share classes to their product ranges to prepare for a post-RDR world.

Many investors already get some or all of the initial charge rebated back to them if they purchase funds via platforms.

The full list of funds affected by the initial charge reduction is below.

Retail

- Schroder Asian Income Fund

- Schroder Asian Income Maximiser Fund

- Schroder European Alpha Plus Fund

- Schroder European Smaller Companies Fund

- Schroder Gilt and Fixed Interest Fund

- Schroder Global Alpha Plus Fund

- Schroder Global Climate Change Fund

- Schroder Global Emerging Markets Fund

- Schroder Global Equity Income Fund

- Schroder Global Property Securities Fund

- Schroder Income Fund

- Schroder Income Maximiser Fund

- Schroder Japan Alpha Plus Fund

- Schroder Managed Wealth Portfolio

- Schroder Medical Discovery Fund

- Schroder Recovery Fund

- Schroder Tokyo Fund

- Schroder UK Alpha Plus Fund

- Schroder UK Equity Fund

- Schroder UK Mid-250 Fund

- Schroder UK Smaller Companies Fund

- Schroder US Mid Cap Fund

- Schroder US Smaller Companies Fund

 

NURS

- Schroder Asian Alpha Plus Fund

- Schroder Dynamic Multi-Asset Fund

- Schroder Managed Balanced Fund

- Schroder Multi-Manager Cautious Managed Fund

- Schroder Multi-Manager High Alpha Fund

- Schroder Multi-Manager Strategic Balanced Fund

 

Institutional

- Schroder European Fund

- Schroder QEP Global Active Value

 

Categories: Investment|RDR

Topics: Schroders|RDR|unit trust|Rathbone|Cazenove|fund platform