Bestinvest says
In the context of a large portfolio we believe that low cost actively managed funds are a good alternative to more passive funds. As the name suggests this is an actively managed core UK equity fund. The difference compared to many so-called "active funds" with risk constraints is that this fund is very good value with a TER (total expense ratio) that is capped at 0.40%. The portfolio will be run by Schroder's UK institutional team who have a proven track record managing similarly constrained UK mandates.
The portfolio is constructed within a 1.5 to 3.5% tracking error range targeting a 0.5 information ratio. The fund managers take a longer term approach to investing consequently turnover tends to be low. As part of the risk monitoring process performance reviews are automatically triggered where monthly FTSE relative performance exceeds +/-1.5% and rolling annual figures +/- 3%. Portfolio beta tends to be close to 1, with most of the risk budget taken at the stock specific level.