At The Adviser Centre Monthly Review Meeting on 9^th February 2018, we agreed to add Schroder US Smaller Companies to our Recommended list and to move Schroder US Mid Cap to our Established list.

Schroder US Smaller Companies

Schroder US Smaller Companies is co-managed by Head of US Small and SMID Cap Equity, Jenny B Jones, and portfolio manager and Research Director, Robert Kaynor.  Ms Jones is an extremely experienced small and mid-cap equity practitioner, having begun her career in 1980.  Mr Kaynor has over twenty years of fundamental research and investment experience.

The investment philosophy has been applied over many years and through a variety of market cycles.  The process is founded upon original research, through which the team seeks out share price inefficiencies.  They think carefully about risk at all stages of their work, paying particular attention to the price they pay when initiating a position.  Their preference for diversification is reinforced by their allocation to three types of stocks - “Mispriced Growth”, “Steady Eddies” and “Turnarounds”.  In this way, their goal is to expose the fund to different sources of alpha.  By dint of their carefully-considered approach, the fund can be regarded as a risk-aware way of accessing a higher risk asset class.

The fund is primarily invested in smaller companies in the US, but can incorporate some mid-cap exposure, notably through those companies that may have migrated from the upper end of the small-cap market into the mid-cap index.

Schroder US Mid Cap

The Ms Jones and Mr Kaynor also manage the Schroder US Mid Cap fund, which is featured in The Adviser Centre.

As part of Schroders’ on-going monitoring of capacity, the firm believes that the fund has grown to a size that brings it close to their assessment of full capacity.   As a result, the business has ceased marketing the fund actively.

Therefore, in discussion with Schroders, we have moved the fund to our Established List. 

For definitions of our three list types, Recommended, Established and Positive Watch, please click here.