Jenny Jones, manager of the Schroder US Mid Cap (GB00B7LDLV43) and Schroder US Smaller Companies (GB00B7LDL923) funds, is to retire at the end of March. She will be replaced by Bob Kaynor, although will be available in an advisory capacity for several months after this.
Ms Jones has managed Schroder US Mid Cap since 1 January 2005, and between this date and 21 January 2019 it has returned 398 per cent, versus 325 per cent for the Russell 2500 index and the Investment Association (IA) North America sector average return of 255 per cent. Schroder US Smaller Companies has returned 363 per cent over this period, versus 287 per cent for the Russell 2000 and the IA North American Smaller Companies sector average of 325 per cent.
Ms Jones has worked at Schroders since 2003 when she started managing Schroder US Smaller Companies. She has taken a very risk-conscious approach to what can be a volatile market, which was popular with investors. She always maintained a relatively defensive position by blending growth and value stocks with cash, in contrast to other mid-cap managers who tend to favour growth stocks. This means that her funds' three-year returns are behind those of their respective benchmarks and sector averages as the funds have lag in bull markets, such as in 2016 and 2017. Schroder US Mid Cap returned 46 per cent between March 2016 and December 2017, below the 48 per cent rise in the Russell 2500 index.
Mr Kaynor became Schroders' director of US small and mid-cap company research in 2014 and co-manager of the funds in 2018. He was chief investment officer at Ballast Capital Group from 2010 to 2013, and a portfolio manager at Ramius Capital between 2003 and 2010. His investment career spans more than 20 years.
Nicky Richards, global head of equities at Schroders, said: “Jenny has built a team of experienced investment professionals who have worked together within the same investment process for many years.”
Analysts at rating company FundCalibre have maintained their 'Elite' rating on Schroder US Mid Cap Fund, due to good "long-term secession planning", as Mr Kaynor has been involved with the funds for a number of years. But Morningstar has placed its four (out of five) star rating on the fund under review, at least until it meets Mr Kaynor and gets a better understanding of his plans for the fund.
Fund performance
| Fund/benchmark | 1-year total return (%) | 3-year cumulative return (%) | 5-year cumulative return (%) |
| Schroder US Mid Cap | -0.24 | 58.21 | 89.65 |
| Russell 2500 index | -0.44 | 60.75 | 71.35 |
| IA North America sector average | 2.55 | 59.67 | 83.05 |
| Schroder US Smaller Companies | 1.32 | 59.91 | 81.35 |
| Russell 2000 index | -1.22 | 62.67 | 65.74 |
| IA North American Smaller Companies sector average | 2.75 | 69.35 | 72.35 |
Source: FE Analytics as at 22/01/2019
