Schroders has entered the European active ETF market with the launch of two new funds, part of CEO Richard Oldfield’s push to reposition the UK asset manager as a stronger competitor in active strategies, Bloomberg reports.

The new ETFs will invest in global equities and investment-grade corporate bonds, carrying a total expense ratio of 25 basis points. They provide ETF investors access to existing Schroders strategies managing $24bn and $3bn in assets.

The launch follows similar efforts in Australia in 2016 and the US in 2018, but marks Schroders’ first step into Europe, where distribution is dominated by banks and wealth managers rather than direct retail investors.

Johanna Kyrklund, Schroders’ Chief Investment Officer, said: “Natural demand has been slower to develop in Europe, so we had to consider which strategies would scale quickly here.” She added that the firm plans further active ETF launches in the region.

The expansion comes as Europe’s active ETF market accelerates. JPMorgan currently dominates with $42bn in assets, ahead of peers including Fidelity, Pimco, BlackRock, Amundi, and DWS. HANetf projects the market will grow from under $100bn today to $1tn by 2031.

As part of its broader strategy revamp, Schroders is also holding talks with Apollo Global Management about a potential partnership to expand its private markets offerings.

The move reflects the broader convergence between traditional managers and private equity groups as competition intensifies for institutional and retail capital.

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