Schroders is this month launching the UK Core fund, the first in a suite of low cost actively-managed products, for Richard Buxton's UK equity team.
The group says the fund is designed to offer investors a lower risk, transparent alternative to passive investing.
UK Core 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 Buxton. UK Prime is responsible for £4.7bn of assets.
Subject to approval, the fund will have an estimated total expense ratio capped at 40 basis points. It will aim to generate outperformance after fees of 1% per annum versus its benchmark the FTSE All Share.
The AMC will be 0.35%, with no initial charge, performance fees or exit charges. The minimum investment will be £1,000.
Robin Stoakley, managing director, UK intermediary, says: "This is the first in a suite of low cost, actively managed products we will offer investors. We believe actively managed funds with strong fundamental investment processes 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 has an important place alongside higher octane funds."
In January J.P. Morgan rolled out a UK Active Index Plus fund, an active fund with a TER of no more than 0.55%, in response to competitively priced passive and exchange-traded funds.
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