Schroders re-opens US small-cap strategy

Schroders has re-opened its US mid-cap strategy to capitalise on renewed investor appetite for developed market equities.

Schroders re-opens US small-cap strategy

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The onshore US Smaller Companies fund, which has AUM of £487m, will remain soft-closed. 

Meanwhile, the onshore US Mid Cap fund, with £847m under management, has reopened alongside the Luxembourg- and US-domiciled small and mid cap funds.

The strategies are managed by New York-based Jenny Jones. Returns over three years and one year are below the sector average.

Returns for the former have been 41.5% compared to a sector average of 41.9%, ranking it 48th out of 89 funds. Over one year it has returned 10.4%, while the sector average stands at 13.7%.

Financial services accounts for 17% of the fund’s portfolio, while 14.1% and 13.5% of capital is invested in producer durables and technology respectively.

Fred Schaefer, product manager US Equities at Schroders, said: "We hard closed a number of funds within the strategy in late March 2011 after extraordinary inflows of USD 1 billion, combined with market action between December 2010 and March 2011, pushed the strategy asset to USD 5.2 billion – considerably above our stated capacity of USD 4.5 billion.

"As a result of the strategy closure a number of participants withdrew assets from the strategy and we now feel there is sufficient available capacity to re-open the strategy."

Schroders has also hired Robert Kaynor as a Senior Equity Analyst in the team. He has 19 years’ experience in the industry and will oversee work in the consumer sector.
 

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