Unloved sectors boost Schroder US Small & Mid Cap

The ability to find the best stocks not only in strongly performing sectors but also in the more ‘unloved’ areas of the US market has helped Schroder US Small & Mid Cap to produce superior returns of 42.23%, outperforming the S&P 500 by 16.16% in two years since launch.

Jenny Jones, manager of the Schroder US Small & Mid Cap fund since inception, has been able to identify companies that have outperformed substantially in sectors such as Financial Services and Healthcare – the two worst performing sectors in the last two years. This disciplined focus on stock picking is part of Jones’s successful style.

Jenny Jones, manager of the Schroder US Small & Mid Cap Fund, said: “US small and medium sized companies have outperformed their larger counterparts over the last four years and we have captured solid returns in this environment. Looking ahead, we are finding a greater risk / return trade off particularly in the mid caps – an area of the US market most overlooked by many financial institutions and where we are finding companies with the best valuations and earnings visibility.”

Robin Stoakley, Managing Director, Schroders’ UK Retail Business, said: “The experience and expertise of our US small & mid cap team is second to none. Jenny is a well recognised name in the US small cap area and continues to prove her extensive knowledge and experience with impressive returns. The team has demonstrated their skills through both bull and bear market cycles and it is their ability to deliver year on year which has proved critical to adding real value for our clients.

“Investors get genuine US exposure thought our US Small & Mid Cap Fund and it makes an ideal core for a globally invested portfolio.”