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.
  

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.