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Strategy

Europe Smaller Companies Equity

The Europe Smaller Companies Equity Composite seeks long-term capital appreciation primarily through investment in small- and mid-cap companies traded in European markets, with faster earnings growth and reasonable valuation levels relative to market/sector averages. The average market cap of holdings within these portfolios will typically be <$5 billion.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

-2.42%
5.35%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

-14.62%
0.72

Inception Date 30-Nov-2008

Performance figures calculated in EUR

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Benjamin Griffiths
Benjamin Griffiths, Portfolio Manager

Ben Griffiths is the portfolio manager for the European Smaller Companies Equity Strategy in the International Equity Division, covering European small-cap stocks and co-portfolio manager of the International Small-Cap Equity Strategy.  Ben is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd. 

 

Valuations and performance are computed in USD and converted to EUR. When converting U.S. Dollar composite returns, benchmarks, dispersion and asset data, the same exchange rate source is used consistently. Total returns in non-U.S. Dollar currencies are calculated by adjusting U.S. Dollar performance by the percent change in the U.S. Dollar/foreign currency exchange rate (as determined by an independent third party) for the time periods selected. Net of fees performance is calculated using the currency-converted gross performance and then deducting the highest applicable EUR fee without the benefit of breakpoints. 

Strategy

Investment Approach

  • Invests in European small- and mid-cap companies capable of sustaining above-average, long-term earnings growth and selling at reasonable prices.
  • Benchmark-unconstrained approach exploits diverse opportunities across Europe.
  • Exposure to companies at different stages in the growth cycle offers the potential for more consistent performance across market cycles.
  • Long-term investment horizon emphasizes bottom-up stock selection as the primary source of excess return.
  • Dedicated London-based research team seeks companies with:
    • Attractive industry structure.
    • Compelling business models.
    • Strong growth prospects.
    • Solid management teams.
    • Reasonable valuations.

Portfolio Construction

  • Typically 70-100 stock portfolio
  • Diversification at the security, country, region, and sector levels offers the potential for attractive risk-adjusted returns
  • Bias toward high-quality stocks provides the potential for downside risk protection
  • Risk parameters
    • Emerging Europe exposure: maximum 10%
    • Typical position size: 0.50% to 5.00%
    • Low turnover expected
    • Expected tracking error: 3% to 7%

Holdings

Total
Holdings
105
Largest Holding Ambu 3.60% Was (31-Dec-2019) 1.88%
Other View Full Holdings Quarterly data as of 31-Mar-2020
Top 10 Holdings 21.03% View Top 10 Holdings Monthly data as of 31-Mar-2020

Top Purchase

Ssp (N)
0.72%
Was (31-Dec-2019) 0.00%

Top Sale

Sabre Insurance (E)
0.00%
Was (31-Dec-2019) 0.78%

Quarterly Data as of 31-Mar-2020

Sectors

Total
Sectors
11
Largest Sector Health Care 22.78% Was (31-Dec-2019) 20.13%
Other View complete Sector Diversification

Monthly Data as of 31-Mar-2020

Benchmark: MSCI Europe Small Cap Index

Top Contributor^

Health Care
Net Contribution 1.85%
Sector
1.71%
Selection 0.14%

Top Detractor^

Utilities
Net Contribution -0.65%
Sector
-0.65%
Selection
0.00%

^Relative

Quarterly Data as of 31-Mar-2020

Largest Overweight

Health Care
By11.68%
Portfolio 22.78%
Benchmark 11.10%

Largest Underweight

Industrials & Business Services
By-9.40%
Portfolio 11.18%
Benchmark 20.58%

Monthly Data as of 31-Mar-2020

Countries

Total
Countries
16
Largest Country United Kingdom 37.96% Was (31-Dec-2019) 40.39%
Other View complete Country Diversification

Monthly Data as of 31-Mar-2020

Benchmark: MSCI Europe Small Cap Index

Top Contributor^

United Kingdom
Net Contribution 2.65%
Country
-0.52%
Selection 3.16%

Top Detractor^

Ireland
Net Contribution -0.22%
Country
0.05%
Selection
-0.27%

^Relative

Quarterly Data as of 31-Mar-2020

Largest Overweight

United Kingdom
By8.78%
Portfolio 37.96%
Benchmark 29.18%

Largest Underweight

Switzerland
By-4.98%
Portfolio 5.89%
Benchmark 10.87%

Monthly Data as of 31-Mar-2020

Team (As of 02-Jul-2020)

Benjamin Griffiths

Ben Griffiths is the portfolio manager for the European Smaller Companies Equity Strategy in the International Equity Division, covering European small-cap stocks and co-portfolio manager of the International Small-Cap Equity Strategy.  Ben is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd. 

Ben’s investment experience began in 1999, and he has been with T. Rowe Price since 2006, beginning in the Equity Division. Prior to this, Ben was employed by Baillie Gifford as an investment manager. 

Ben earned a B.A. in investment analysis from Stirling University and an M.Eng. in engineering science from Oxford University. Ben also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Portfolio manager
    since
    2016
  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    0
Andrew Clifton

Andrew Clifton is a portfolio specialist in the Equity Division at T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Mr. Clifton has over 30 years of investment experience, nine of which have been at T. Rowe Price. Prior to joining the firm in 2010, he was an executive director at UBS Global Asset Management. Prior to that, he was a vice president at Merrill Lynch.

Mr. Clifton earned a B.Sc. in economics from the London School of Economics and an M.Sc. in econometrics from the University of Southampton.

  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    30
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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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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