Schroder US Mid Cap A

Invests in medium sized US equities with a growth at a reasonable price style

  • 151.20p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 151.30p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.66%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 18 September 2020, fund data last updated 18 July 2011

This fund is managed in exactly the same way that Jenny Jones runs her US Smaller Companies fund. The only difference is that it invests more in mid sized companies, although there will be some overlap with the US Smaller Companies fund. Jenny Jones has over 25 years' experience investing in US companies. Her style focuses on under researched, quality, growth companies at a reasonable price.

Fund summary

Sector North America
Structure UNIT TRUST
Launched June, 2001
Size £1,009m
Yield 0.00%
Charging basis Income
Dividends paid 31 Jul

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.66%

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Investment process

The investment approach for this fund is identical to the existing Schroder US Small Cap fund which is also managed by Jenny Jones and her team with the exception that it invests mainly in mid cap companies, although there will be some overlap between the two. The portfolio structure is built primarily through bottom-up stock selection. The final portfolio is usually a combination of turnaround situations (0-20%), mis-priced growth opportunities (50-60%) and steady earners (20-50%). Invariably these companies will have a strong market position, financial strength (with a particular emphasis on cash-flow) and the ability to grow their earnings at a sustainable rate. The fund manager avoids fashionable, high-flying stocks, devoting more time to researching under followed and misunderstood companies on reasonable valuations. Stock ideas are sourced in-house and from third parties.

Jenny Jones has over 25 years' experience investing in US companies. Her fund benefits from investing in a variety of stock types, which should enable it to perform throughout a market cycle. Historically it has offered relatively strong downside protection characteristics, partly due to the “steady eddie” stocks held in the portfolio, though it can underperform strongly rising markets. We downgraded this to 2-star hold rating in April 2011 following soft closing. It re-opened in 2012 but recent performance suggests there’s no urgency in upgrading. The recent loss of a senior sector analyst from the research team left the manager at sea with her holdings in the affected sector. She ended up holding when she should have sold. We are currently l looking at alternatives.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 -0.37%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.01%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Robert Kaynor

Robert Kaynor joined Schroders as a senior equity analyst in 2013 and became Research Director in 2014. Kaynor was the Chief Investment Officer and Managing Member at Ballast Capital Group from 2010 to 2013. He was a Managing Director/Portfolio Manager at Ramius Capital Group from 2003 to 2010. Qualifications: CFA Charterholder; BSc in Economics with Financial Applications from Southern Methodist University.

Track record

The track record of Robert Kaynor in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -26.00% (July 2019 - March 2020)
Relative -7.00% (April 2020 - August 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

2.52% Catalent Inc
2.02% Assurant Inc
1.86% Berry Global Group Inc
1.86% Entegris Inc
1.75% Fortune Brands Home & Security Inc
1.72% Masimo Corp
1.72% Servicemaster Global Hldgs Inc
1.7% Advance Auto Parts Inc
1.66% Semtech Corp
1.65% Perkinelmer Inc
Source: Trustnet

Sector breakdown

Information Technology 21.00%
Financials 14.00%
Health Care 14.00%
Industrials 13.00%
Consumer Discretionary 9.00%
Materials 8.00%
Real Estate 6.00%
Money Market 5.00%
Utilities 4.00%
Consumer Staples 3.00%

Portfolio

The portfolio consists of 70-90 stocks.

Constraints

Minimum holding 0.5%, maximum position 5%. Stock weights can go +/- 5% and sector weights +/- 10%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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