Bestinvest says
Previously on the buy list this fund was downgraded to a two star rating in 2009. Schroders has a well resourced team of analysts and fund managers covering UK small and mid cap stocks and whilst we believe that the fundamental research process is detailed, we were concerned about the size of assets that the desk was responsible for. Therefore, we have higher conviction towards other smaller company funds.
The fund's objective is capital growth through investment in UK smaller companies, focusing on the FTSE Small Cap (ex IT) universe. The primary influence on the portfolio is bottom up stock selection with individual stock weightings reflecting a combination of investment conviction and assessment of the stock’s likely volatility. Ongoing fundamental research generates an “investment triangle”, allocating investment opportunities into three categories. Generally the fund manager invests in growing companies with a unique product or service for which demand is strong and which have pricing power, while avoiding companies operating in industries where supply exceeds demand.