SICAV

US Smaller Companies Equity Fund

Seeks capital appreciation using both value and growth approaches.

ISIN LU0133096981 Valoren 1274355

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

13.54%
$1.4b

1YR Return
(View Total Returns)

Manager Tenure

9.20%
1yr

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.05
5.90%

Inception Date 28-Sep-2001

Performance figures calculated in USD

Other Literature

30-Jun-2020 - Curt Organt, Portfolio Manager ,
We seek to capitalise on opportunities across the broad range of the small- and mid-cap U.S. equity market. Overall, we remain modestly overweight high-quality companies that compound their earnings. We also look for select investments in “deeper-value” opportunities – those stocks that we believe are significantly undervalued – and hold a number of income-oriented dividend growth companies.
Curt J. Organt, CFA
Curt J. Organt, CFA, Portfolio Manager

Curt Organt is the portfolio manager of the US Smaller Companies Equity Strategy and an associate portfolio manager of the US Small-Cap Core 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, US Diversified Small-Cap Value Equity, and US Small-Cap Growth Equity Strategies. He also is a vice president of T. Rowe Price Group, Inc.

 

Strategy

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.

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

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 9.20% 13.54% 12.00% 15.00% 14.85%
Indicative Benchmark % -2.39% 4.60% 5.79% 10.66% 1.05%
Excess Return % 11.59% 8.94% 6.21% 4.34% 13.80%

Inception Date 28-Sep-2001

Manager Inception Date 31-Mar-2019

Indicative Benchmark: Russell 2500 Net 30% Index

Data as of  31-Jul-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 6.08% 11.29% 10.61% 14.68%
Indicative Benchmark % -5.16% 3.60% 4.93% 10.98%
Excess Return % 11.24% 7.69% 5.68% 3.70%

Inception Date 28-Sep-2001

Indicative Benchmark: Russell 2500 Net 30% Index

Data as of  30-Jun-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 10-Aug-2020 Quarter to DateData as of 10-Aug-2020 Year to DateData as of 10-Aug-2020 1 MonthData as of 31-Jul-2020 3 MonthsData as of 31-Jul-2020
Fund % 2.75% 9.96% 7.00% 7.01% 14.56%
Indicative Benchmark % 4.97% 9.13% -3.16% 3.96% 14.77%
Excess Return % -2.22% 0.83% 10.16% 3.05% -0.21%

Inception Date 28-Sep-2001

Indicative Benchmark: Russell 2500 Net 30% Index

Indicative Benchmark: Russell 2500 Net 30% Index

Performance figures calculated in USD

Past performance is not a reliable indicator of future performance.  Source for fund performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures. 

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

Index returns shown with reinvestment of dividends after the deduction of withholding taxes. 

Effective 1 June 2019, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly.

30-Jun-2020 - Curt Organt, Portfolio Manager ,
U.S. equities produced positive returns in June, capping a robust but periodically volatile second quarter. Within the portfolio level, stock selection in industrials and business services had the most negative impact on relative results. Shares of aerospace and defense company Teledyne Technologies declined during the period, possibly due to weakened investor sentiment on rising political uncertainty leading into November’s presidential election and following a reduction to fiscal year guidance. We continue to like the company for its strong management team, solid organic growth prospects, and ample opportunities for capital deployment. Consumer discretionary also weighed on relative returns due to our choice of securities, as stocks that had appreciated significantly the prior month, such as Strategic Education and Domino’s, gave back some gains. Conversely, health care added value due to our stock picks. For example, shares of Quidel continued to rise on positive sentiment following an announcement in March that the U.S. Food and Drug Administration had authorised the company to use one of its diagnostic testing kits on patients suspected of having COVID-19, the disease caused by the coronavirus.

Holdings

Total
Holdings
176
Largest Holding Quidel 2.16% Was (31-Mar-2020) 1.80%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 17.00% View Top 10 Holdings Monthly data as of 31-Jul-2020

Largest Top Contributor^

Quidel
By 0.42%
% of fund 2.20%

Largest Top Detractor^

JBG SMITH Properties
By -0.02%
% of fund 0.83%

^Absolute

Quarterly Data as of 30-Jun-2020

Top Purchase

CareDx (N)
0.43%
Was (31-Mar-2020) 0.00%

Top Sale

Cable One
0.86%
Was (31-Mar-2020) 1.50%

Quarterly Data as of 30-Jun-2020

30-Jun-2020 - Curt Organt, Portfolio Manager ,
Industrials and business services, information technology, financials, and health care remain the dominating sectors in the portfolio, all with greater than 10% of the equity allocation. We continue to invest in select companies across various industries where we feel valuations may underestimate the sustainability of their growth or turnaround potential. This included boosting our positions within machinery; software; and oil, gas, and consumable fuels.

Sectors

Total
Sectors
11
Largest Sector Information Technology 19.82% Was (30-Jun-2020) 20.02%
Other View complete Sector Diversification

Monthly Data as of 31-Jul-2020

Indicative Benchmark: Russell 2500 Index

Top Contributor^

Information Technology
Net Contribution 1.27%
Sector
-0.01%
Selection 1.28%

Top Detractor^

Consumer Discretionary
Net Contribution -0.97%
Sector
-0.13%
Selection
-0.84%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Industrials & Business Services
By4.25%
Fund 18.95%
Indicative Benchmark 14.70%

Largest Underweight

Financials
By-3.48%
Fund 10.64%
Indicative Benchmark 14.12%

Monthly Data as of 31-Jul-2020

31-May-2020 - Curt Organt, Portfolio Manager ,
Industrials and business services, IT, financials, and health care remain the dominating sectors in the portfolio, all with greater than 10% of the equity allocation. We continue to invest in select companies across various industries where we feel valuations may underestimate the sustainability of their growth or turnaround potential. This included boosting our positions within chemicals; electric utilities; and hotels, restaurants, and leisure.

Team (As of 05-Aug-2020)

Curt J. Organt, CFA

Curt Organt is the portfolio manager of the US Smaller Companies Equity Strategy and an associate portfolio manager of the US Small-Cap Core 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, US Diversified Small-Cap Value Equity, and US Small-Cap Growth Equity Strategies. He also is a vice president of T. Rowe Price Group, Inc.

Curt’s investment experience began in 1993, and he has been with T. Rowe Price since 1995, beginning in the U.S. Equity Division. Prior to this, Curt was employed by DAP Products, Inc., as a financial and marketing analyst. 

Curt earned a B.S. in finance and philosophy from LaSalle University and an M.B.A. from Wake Forest University. Curt also has earned the Chartered Financial Analyst® designation.

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

  • Fund manager
    since
    2019
  • Years at
    T. Rowe Price
    24
  • Years investment
    experience
    28
Eric Papesh

Eric Papesh is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He is based in London and serves as a proxy for equity portfolio managers with institutional clients, consultants and prospects. Mr. Papesh supports T. Rowe Price's US Smaller Companies Equity and US Large-Cap Equity Strategies offered in the Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Papesh has 22 years of financial services experience, two of which have been with T. Rowe Price. Before joining the firm in 2014, he was a senior research analyst with Russell Investments, where he focused on US equity investment strategies.

Mr. Papesh earned a B.A. in business administration and an M.B.A. from the University of Washington. He has also earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    5
  • Years investment
    experience
    25

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.

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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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