We have added the Schroder US Mid Cap Fund to the Wealth 150 list of our favourite funds in each sector. The fund is run by a US-based team headed by the well respected Jenny Jones. She has a fine stock picking record in the US market and was previously represented on the Wealth 150 by the Schroder US Smaller Companies Fund, which is now imposing a full initial charge to new investors in order to limit the fund size.
Her investment process involves dividing investment opportunities into three categories: ‘mispriced growth stocks’, ‘steady eddies’ and ‘turnarounds’. Mispriced growth stocks are companies which are experiencing growth that hasn’t been recognised by the wider market. The ‘steady eddies’, as the name implies, are stable companies that are consistently growing their earnings. Finally, the ‘turnarounds’ category contains companies who have run into trouble but where there is likely to be a change in fortunes and a return to growth.
By blending the best ideas from each of these categories she hopes to outperform the wider market and her peers. Adjustments will also be made according to the economic outlook. For example, exposure to ‘steady eddies’ was increased during the credit crunch and subsequently reduced in 2009. Schroders believe there are plenty of good opportunities in the US mid-cap sector at the present time. In particular Jenny Jones is seeking companies with overseas exposure that are not reliant on the US consumer.
Given the quality and experience of Jenny Jones and her team we believe the Schroder US Mid Cap Fund is capable of long-term outperformance of the US market. We think it therefore makes an excellent choice for exposure to the region, and is a valuable addition to the Wealth 150 list of our favourite funds in each sector.
Key Features of the Schroder US Mid Cap Fund
Prospectus of the Schroder US Mid Cap Fund
Her investment process involves dividing investment opportunities into three categories: ‘mispriced growth stocks’, ‘steady eddies’ and ‘turnarounds’. Mispriced growth stocks are companies which are experiencing growth that hasn’t been recognised by the wider market. The ‘steady eddies’, as the name implies, are stable companies that are consistently growing their earnings. Finally, the ‘turnarounds’ category contains companies who have run into trouble but where there is likely to be a change in fortunes and a return to growth.
By blending the best ideas from each of these categories she hopes to outperform the wider market and her peers. Adjustments will also be made according to the economic outlook. For example, exposure to ‘steady eddies’ was increased during the credit crunch and subsequently reduced in 2009. Schroders believe there are plenty of good opportunities in the US mid-cap sector at the present time. In particular Jenny Jones is seeking companies with overseas exposure that are not reliant on the US consumer.
Given the quality and experience of Jenny Jones and her team we believe the Schroder US Mid Cap Fund is capable of long-term outperformance of the US market. We think it therefore makes an excellent choice for exposure to the region, and is a valuable addition to the Wealth 150 list of our favourite funds in each sector.
Key Features of the Schroder US Mid Cap Fund
Prospectus of the Schroder US Mid Cap Fund
