Passive funds set to prosper from RDR

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...