Schroders reduces fees across its suite of funds

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MEDIA RELEASE: Schroders is reducing management fees across many of its Australian funds, spanning a range of asset classes and strategies including Australian and global equities, Australian and global fixed income and multi-asset.  

Schroders Australia CEO, Chris Durack, commented: “Schroders’ aim is that our business and our goals are aligned with those of our clients to create long-term value.

“Schroders’ sustainable themed funds benefit from an average fee reduction of 28 per cent, while fees for the wholesale class of the Schroder Wholesale Australian Equity Fund – one of the longest standing active Australian equity funds – will decrease by 13 per cent,” Mr Durack said. 

“There will also be significant fee reductions for the wholesale classes of the Schroder Global Emerging Markets Fund (from 1.4 per cent a year to 1.0 per cent a year) and the Schroder Asia Pacific Fund (from 1.37 per cent a year to 1.1 per cent a year). Further, fees for the popular Schroder Real Return CPI Plus 5% Fund will reduce from 0.9 per cent a year to 0.85 per cent a year.

“With ongoing challenges across our industry, it’s never been as important as it is now to ensure that fee levels are competitive.”

Mr Durack said Schroders takes a long-term approach to investing, building client relationships and growing the business. 

“Schroders has developed under stable ownership for over 200 years, and was established in Australia in 1961. As a global business that’s managed locally, our clear commitment is that we will continue to put our clients’ interests first.

“These fee reductions are in line with our ongoing commitment to serve our clients, and these lower fees will assist in delivering better long-term outcomes for investors.” 

Details of the current and new management fees (effective 1 October 2020) for each affected fund are as follows:

* Investors in the Schroders funds may incur fees and costs in addition to the management fees listed above, including indirect costs, performance fees and transactional and operational costs.  Please refer to the PDS of each fund for further information.