Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
Press Release
Schroders introduces performance
related fees for DC investors
20 September 2011
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 riskadjusted 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.
Schroders plc
Registered office at above address
Reg. 3909886 England
1
For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
For further information, please contact:
Estelle Bibby
Tel: +44 (0)20 7658 3431 / estelle.bibby@schroders.com
Notes to Editors
For trade press only.
* Performance Fees: Global Core standard initial fee is 0.35%. Performance fee structure, base AMC
of 0.20% with a performance fee of 20% of the simple outperformance of the benchmark
** Source: Schroders as at 31st August 2011. MSCI benchmarks are shown Net Dividends Reinvested (NDR). Relative returns are arithmetically calculated, gross of fees. Performance shown is
past performance and is not necessarily a guide to future performance. The value of your investment
can go down as well as up and is not guaranteed.
*** Partial period, please refer to strategy inception date.
Relative Returns (%)
Global Core vs MSCI World
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 YTD – August****
Return – Annualised
Return – Total
Information Ratio
Tracking Error
2.2***
1.2
0.9
0.5
0.8
0.7
0.5
-0.8
2.9
2.1
2.4
1.2
1.3
17.6
1.2
1.1
**** Please note that August data is based on estimates
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Schroders plc
Schroders is a global asset management company with £204.8 billion (EUR
226.7 billion/$328.7 billion) under management as at 30 June 2011. Our clients are major financial
institutions including pension funds, banks and insurance companies, local and public authorities,
governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate
from 32 offices in 25 countries across Europe, the Americas, Asia and the Middle East. Schroders
has developed under stable ownership for over 200 years and long-term thinking governs our
approach to investing, building client relationships and growing our business.
Schroders plc
Registered office at above address
Reg. 3909886 England
2
For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
Further information about Schroders can be found at www.schroders.com or on Schroders Talking
Point www.schroders.com/talkingpoint. Issued by Schroder Investment Management Ltd, which is
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Schroders plc
Registered office at above address
Reg. 3909886 England
3
For your security, communications may be taped or monitored