Passive funds set to prosper from RDR

clock •

Passive funds are expected to grow in popularity in the post-retail distribution review (RDR) environment as product bias diminishes.

While a personal, rather than a house view, Schroders head of intermediary sales Neil Bridge says passive and passive-plus type products could become up to twice as important in a typical client portfolio as advisers struggle to justify active fund charges. He says currently, most unit trusts will pay out typically 1.5% annual management charge, comprising 0.5% adviser commission and the remainder split between the fund group and the platform. Pre-RDR, Bridge says a client might have been paying 3% initial costs and 0.5% trail commission. However post-RDR, this translates to 3% commis...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Baillie Gifford workforce faces 10% reduction following voluntary exit programme

Baillie Gifford workforce faces 10% reduction following voluntary exit programme

Around 160 roles vacated

clock 23 September 2026 • 1 min read
Nine SJP funds flagged for underperformance in AoV despite improvements on last year

Nine SJP funds flagged for underperformance in AoV despite improvements on last year

89% of assets given green light

Alex Sebastian
clock 22 September 2026 • 2 min read
The human advantage in an AI-powered asset management industry

The human advantage in an AI-powered asset management industry

'AI should be used to enhance, not replace, human engagement'

Apiramy Jeyarajah
clock 22 September 2026 • 5 min read