Schroder review retains low AUM high TER funds

Recent closure of two products still sees five funds operating at higher total expense ratios than industry average

Schroders currently has five low value funds operating at higher total expense ratios (TER) than the industry average, despite ditching two products last week due to unviable business volumes. The five funds in the IMA's Unit Trust and Oeic sectors are of £30m or smaller. Schroders' Global Climate Change fund has just £14m AUM, Multi Manager High Alpha is £23m in size and Far East Income has £30m AUM, with respective TERs of 2.1%, 2.34% and 1.73%. These are all higher than the Morningstar average of 1.5%. Morningstar analyst Chris Trauben is calling the funds expensive. "It would ta...