Scot Life drops 'underperforming' Schroders from pension fund

Scottish Life is to switch the underlying investment within its UK Mid Cap Specialist Pension fund from Schroder UK Mid 250 to the Franklin UK Mid Cap fund.

The pension arm of Royal London will also switch the underlying investment of its US Core Plus Pension fund from Investec American to Fidelity American.

The switches will take place on 14 November, the provider said.

Lorna Blyth, investment marketing manager at Scottish Life, said: "We take a proactive role in the governance of our investment fund range, with regular reviews of the investment objectives, performance and benchmarks, and we make changes when necessary.

"We have taken the decision to replace the Schroder UK Mid 250 fund following a sustained period of underperformance and concern the size of the underlying fund had increased to such an extent it was likely to have a negative impact on performance relative to its market sector.

"The Investec American fund has also had a sustained period of underperformance and in addition has become more volatile relative to its benchmark."