Pensions - Articles - Schroders introduce performance related fees for DC investor


Schroders introduces performance related fees for DC investors

 Schroders is today introducing a performance related fee structure* on the Schroder QEP Global Core Fund specifically for Defined Contribution pension schemes, making active management more accessible to the DC market. Managed by the highly regarded QEP Global Equities Team (led by Justin Abercrombie), Schroder QEP Global Core, with its 11 year track record of outperformance**, offers clients consistent returns ahead of global indices with limited index-relative risk.
 
 As investors contemplate a challenging environment of anaemic economic growth and volatile market conditions, the attractions of good quality active management are becoming ever more apparent.
 While the UK DC market has, historically, been more inclined towards passive managers, Schroders believes that actively managed equity solutions should also be made available to DC investors in search of valuable additional returns.
 
 Stephen Bowles, Head of DC at Schroders, comments:
 “DC members shouldn’t solely rely on passive investing to deliver global equity returns. Active management can offer good opportunities to provide valuable additional returns. In the past the associated costs of active management have been a barrier, which is why we are introducing the new fee structure. Essentially if we don’t deliver outperformance, our clients won’t pay for it”.
 
 John Marsland, QEP Global Equities – Client Portfolio Manager, comments:
 "Over the last 11 years, the QEP Global Core strategy has generated a strong track record of consistent outperformance, generating an excess return of 1.3% p.a. since launch. The fund’s risk-adjusted performance is best in class*** against similarly active competitors. With a proven ability of delivering risk-controlled, above-market returns over the long-term, we believe this is an exciting proposition for UK DC investors.”
 
 Schroders’ QEP team managed £14.6 billion as at June 2011 on behalf of clients around the world.
  

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