Investing with Schroders should be easy, so we have tried to make the investment process as simple and as clear as possible. Below you can find information on Schroders’ products, charges and even an investment guide to help you get started.
Charges and costs can have a real impact on the returns that you get from a fund so it's important to know what you will pay when you invest. Here we try to make it as clear as possible.
What charges and costs will you pay for investing in a Schroders' fund?
Charges and costs
Paid by investors
Ongoing charge (including the Annual Management Charge)
This covers the Schroders Annual Charge, costs for holding underlying funds and extraordinary costs. It does not include payments to your financial adviser and/or any other firm through which you invest. You pay for these services directly.
Portfolio transaction costs
These are the expenses incurred by the fund when buying and selling assets on behalf of its investors. Portfolio transaction costs are made up of the broker commissions and stamp duty incurred as a necessary part of buying and selling the funds’ underlying investments in order to achieve their investment objectives. In the case of shares, portfolio transaction costs are paid by the fund on each transaction.
Otherwise known as ‘initial charge, this may be taken from your money before it is invested. From 1 Jan 2013, it does not include commission to advisers, but platforms or execution-only brokers may take a percentage.
May be taken before the proceeds of your investment are paid out. Very few funds will have an exit charge.
Performance fees are charged separately as a way of rewarding the investment manager for superior returns or for outperforming specified targets. Schroder UK Dynamic Absolute Return fund is the only fund that currently charges a performance fee.
One fund only
Our funds are all single priced - with a single priced fund there is a single price for buying and selling units or shares in the fund on any one dealing day. Single-priced funds can swing the single price of a fund unit upwards when there are more buyers than sellers of fund units or shares or downwards where there are more sellers than buyers of fund units or shares.
Dilution - investors in a fund can be adversely affected by other investors subscribing or redeeming from a fund. This effect is known as dilution. Dilution occurs when large deals in and out of a fund cause the fund manager to buy or sell the underlying investments of the fund thereby attracting trading costs which are borne by the investors in that fund.
Swing pricing - is a mechanism to reduce dilution and protect ongoing investors. It aims to ensure that investors subscribing or redeeming from a fund bear a portion of the trading costs, i.e. the underlying spreads and transactions costs. Each fund has a swing factor, also known as a anti-dilution adjustment, which is an estimate of the underlying dealing spreads, transaction charges, and taxes.
Download the latest KIID, Report & Accounts and other literature for each of our unit trust/ OEIC.
Each year we publish an Assessment of Value for all the funds managed by Schroders Unit Trust Limited, which is available here.
Visit the Investment Association website to access further information about charges and costs on funds.