Schroders to launch RDR-ready share classes

Schroders is to launch a range of Z share classes across its UK fund range next month which do not pay trail commission.

In a move which will prepare the group for the post RDR-world, Schroders said it would be launching share classes with adviser commission stripped out.

The changes will affect its entire range of UK-domiciled unit trusts and mean the fund range - which typically has an AMC of 1.5% - will now offer a share class with a 0.75% AMC.

Platforms will then be able to add their own charges on top so investors can see a break down of what they are paying.

James Rainbow, head of UK marketing at Schroders, said: "The key with the change is that advisers who want to operate on a fee-based model will be able to do that."

The new Schroders' share classes will be available from 8 November.

Platform Cofunds recently requested fund managers issue a "completely clean" share class.