Schroders reviews fees on Jenny Jones' mandates as Morningstar downgrades funds

Fees represent 'structural disadvantage'

Schroders is reviewing the fees on the US Small & Mid Cap Equity and US Smaller Companies funds, with Morningstar labelling the pricing "high" and posing "a structural disadvantage".

The $2.5bn Schroder ISF US Small & Mid Cap Equity fund and the £833m Schroder ISF US Smaller Companies fund, both managed by Jenny Jones since 2004 and 2002 respectively, have been downgraded by Morningstar from an analyst rating of Silver to Bronze. Morningstar's Lena Tsymbaluk, analyst, manager research, said the high fees were of greater concern than the appointment of Robert Kaynor as co-manager alongside Jones as part of the firm's long-term succession planning. "[The funds continue] to benefit from a seasoned investor, Jenny Jones," Tsymbaluk said. "In January 2018, Robert Ka...