The US Small Cap Equity Fund is managed by a San Diego based team headed by John McCraw. He has also managed the US sleeve of the Global Small Cap Fund for the last year.
“The US small cap universe is enormous, stocked full of technology, health care, consumer and energy companies that have the potential to become tomorrow’s mid and large cap winners,” McCraw said.
The fund mirrors an existing strategy, the US Small Cap Growth Fund launched in 1993. The new product adheres to a bottom-up strategy focusing on US companies that have a market capitalisation between $100m (£59m) to $3bn (£1.8bn).
“We continue to see strong demand from investors for small cap products,” according to Nick Smith, head of European retail sales (Ex-Germany).
“Smaller companies carry more risk, they are less liquid and less well covered, but historic returns have more than compensated for this higher risk, making small caps an attractive part of a diversified portfolio,” he added.
