John Harrington, US small-cap product and client portfolio manager at Schroders, says if the conversion goes ahead the fund will be similar to the groups existing ISF US Small & Mid-Cap Equity Luxembourg Sicav fund.Launched in December last year, the Smid-Cap fund, as Harrington calls it, differs from Joness small-cap portfolio in two ways. First is its market cap range: while the Small Cap fund invests in companies between $500m and $2.2bn in size, the Smid-Cap fund holds those between $1bn and $7bn. Harrington adds: As result of the larger companies we are investing in, the second difference with the Smid-Cap fund is that it is more concentrated. At present Joness Small Cap fund holds 142 stocks while the Smid-Cap fund holds 62. The maximum she will hold in any one company in Smid-Cap is 3%, versus 2.1% in Small-Cap. Despite these differences, the Smid-Cap fund follows the same proprietary bottom-up, fundamentals-driven process Jones uses on the US Small Cap fund. Harrington says 50-60% of the portfolio will always be held in mispriced growth companies, 20-30% will be in perceived turnaround situations, while the remainder will be invested in steady Eddie stocks. Indeed, Harrington expects that there will be an overlap of some 30% between the two funds. If the proposal is voted through, Schroders will no longer have a mainstream American fund in its range. However, this does not concern Harrington: There has not been much retail attraction in the fund as it stands. We think the Smid-Cap fund will be of more appeal to retail investors.