Products January 6, 2015

Schroders Introduces R6 Share Class

Asset management company Schroders introduced an R6 share class across 10 of its mutual funds and is making adjustments to bolster its presence in the United States.

Reported by

PLANADVISER staff

Schroder Investment Management North America, a wholly owned subsidiary of the global asset manager Schroders, announced the creation of an R6 share class for a number of its mutual funds.

With no embedded shareholder servicing fees, the new share class provides more competitively priced products to eligible institutional clients, the firm says.

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“We are deeply committed to enhancing investment offerings for our North American clients, and two of our key areas of growth are the institutional and retirement markets,” says Thomas Darnowski, head of product development at Schroders in the U.S. “Introducing a competitively priced R6 share class provides us with an opportunity to broaden the appeal of our mutual funds to these important markets.”

The R6 shares are available for purchase by eligible institutional investors, including defined contribution retirement plans, pension plans, endowments, and foundations. High-net-worth individual investors can also gain access to the new R6 share class, so long as they can meet the initial investment requirement of $5 million and are able to invest either directly with Schroders or through a platform that does not charge a fee to the fund or Schroders.

Current shareholders who are eligible may convert their shares to the new R6 shares on a tax-free basis, the firm notes. Additionally, Schroders is reducing fees across six of the 10 mutual funds gaining the R6 share class designation through management fee waivers, lower expense caps, or both. The R6 share class is available to investors across 10 of Schroders mutual funds, including: