Schroders eyes index range ahead of RDR

Schroders is eyeing the addition of enhanced index-based products to its retail range in preparation for an expected increase in passive fund use post-RDR.

Robin Stoakley, Schroders’ retail managing director, says the development would leverage the group’s existing capabilities in the institutional space to roll-out products with a TER of about 30 basis points. With the FSA last week hinting at the end of bundled charging and fund manager rebates through platforms, Stoakley warns the cost of active fund management could rise as the industry meets the costs of RDR compliance. “When you take into account the FSA revised up the ongoing compliance costs for the industry five-fold, the cost to fund managers is definitely going to be significa...