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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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SICAV

US Smaller Companies Equity Fund

Seeks capital appreciation using both value and growth approaches.

ISIN LU1562330560 Bloomberg TRPUSQH:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

21.86%
$3.6b

1YR Return
(View Total Returns)

Manager Tenure

39.43%
2yrs

Information Ratio
(3 Years)

Tracking Error
(3 Years)

0.82
7.69%

Inception Date 15-Feb-2017

Performance figures calculated in GBP

31-Oct-2021 - Curt Organt, Portfolio Manager,
While we are mindful there is significant uncertainty in the markets, our overall outlook for the U.S. economy in the year ahead remains positive. We take macro factors into consideration, but they do not drive portfolio construction; we maintain our focus on long-term investment outcomes.
Curt J. Organt, CFA
Curt J. Organt, CFA, Portfolio Manager

Curt Organt is the portfolio manager of the US Smaller Companies Equity Strategy in the U.S. Equity Division. Curt is a vice president and an Investment Advisory Committee member of the US Small-Cap Core Equity and US Diversified Small-Cap Value Equity Strategies. He is a vice president of T. Rowe Price Group, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

The macroeconomic environment has been volatile and there are many unknowns at this time. Washington remains at an impasse on most legislation and the Federal Reserve is set for turnover this year. Two regional Federal Reserve Presidents announced their resignations and Jerome Powell, and other Federal Reserve Governors, face potentially contentious renominations. We are keeping an eye on inflation, potential tax increases, and the supply chain as these factors will impact a continued economic recovery. With the tapering of household fiscal stimulus, we expect consumer spending to fall, which could impact names in the discretionary space that have performed very well over the last twelve months. While we take these macro factors into consideration, they do not drive portfolio construction and we maintain our focus on long-term investment outcomes while working closely with our talented team of investment professionals to identify the most attractive opportunities across the full range of the small-cap and mid-cap segments of the US equity market.

Investment Objective

To increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a widely diversified portfolio of stocks from smaller capitalization companies in the United States.

Investment Approach

  • Focus on companies within the market cap range of the Russell 2500 Index at time of purchase.
  • Assess valuation using relevant sector/industry metrics — absolute and relative price to earnings, price to cash flow, and price to assets.
  • Integrate fundamental research by a dedicated Small-Cap research team to discover underfollowed companies possessing clear business plans, financial flexibility, and proven management teams.
  • Identification of a “value creation” catalyst is key.
  • Broadly diversify holdings to manage portfolio risk profile.
  • Employ a low turnover and patient trading strategy to promote full value realization.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

Portfolio Construction

  • 200-250 securities
  • Position sizes typically range from 0.15% to 2.50%
  • Primary sector weights generally vary from 0.5X to 2.0X the Russell 2500 Index weights

Recent Performance

  Month to DateData as of 03-Dec-2021 Quarter to DateData as of 03-Dec-2021 Year to DateData as of 03-Dec-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % -1.55% -0.75% 11.66% 4.28% 4.12%
Indicative Benchmark % -1.40% -1.18% 12.01% 4.82% 3.68%
Excess Return % -0.15% 0.43% -0.35% -0.54% 0.44%

Inception Date 15-Feb-2017

Indicative Benchmark: Russell 2500 Index Net 30% Hedged to GBP

Indicative Benchmark: Russell 2500 Index Net 30% Hedged to GBP

Performance figures calculated in GBP

Sectors

Total
Sectors
11
Largest Sector Industrials & Business Services 21.71% Was (30-Sep-2021) 21.96%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: Russell 2500 Index

Top Contributor^

Information Technology
Net Contribution 1.40%
Sector
-0.01%
Selection 1.41%

Top Detractor^

Financials
Net Contribution -0.18%
Sector
-0.09%
Selection
-0.09%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Industrials & Business Services
By5.79%
Fund 21.71%
Indicative Benchmark 15.92%

Largest Underweight

Consumer Discretionary
By-4.98%
Fund 7.11%
Indicative Benchmark 12.09%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Curt Organt, Portfolio Manager,
Industrials and business services, information technology, health care, and financials remain dominant sectors in the portfolio. We continue to invest in select companies across various industries where we feel valuations may underestimate the sustainability of growth or turnaround potential. During the month, we boosted our positions within equity real estate investment trusts, airlines, containers and packaging, and consumer finance.

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (USD) Minimum Subsequent Investment (USD) Minimum Redemption Amount (USD) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $1,000 $100 $100 5.00% 160 basis points 1.68%
Class I $2,500,000 $100,000 $0 0.00% 95 basis points 0.99%
Class Q $1,000 $100 $100 0.00% 95 basis points 1.04%
Class S $10,000,000 $0 $0 0.00% 0 basis points 0.04%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.