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)
1YR Return (Net)
(View Total Returns)
Information Ratio
(5 Years)
Inception Date 30-Nov-2008
Performance figures calculated in EUR
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%
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
10 YR Annualised |
|
|---|---|---|---|---|
| Composite Gross % | 18.15% | 10.07% | 11.28% | 14.00% |
| Composite Net % | 17.39% | 9.36% | 10.56% | 13.27% |
| Benchmark % | 31.44% | 9.60% | 9.99% | 11.71% |
| Excess Return (Gross) % | -13.29% | 0.47% | 1.29% | 2.29% |
Recent Performance
| 3 MonthsData as of 31-Dec-2019 | Year to DateData as of 31-Dec-2019 | |
|---|---|---|
| Composite Gross % | 10.79% | 18.15% |
| Composite Net % | 10.61% | 17.39% |
| Benchmark % | 11.75% | 31.44% |
| Excess Return (Gross) % | -0.96% | -13.29% |
Returns for time periods greater than one year are annualised.
Past performance is not a reliable indicator of future performance.
Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule contained within this material, without the benefit of breakpoints. Gross and net performance returns reflect the reinvestment of dividends and are net of all non-reclaimable withholding taxes on dividends, interest income, and capital gains.
Holdings
Total
Holdings
109
Top Purchase
Bawag (N)
0.89%Top Sale
Grandvision (E)
0.00%Sectors
Total
Sectors
11
Top Contributor^
Communication Services
Net Contribution 0.66%Top Detractor^
Information Technology
Net Contribution -1.35%Largest Overweight
Health Care
Largest Underweight
Real Estate
Countries
Total
Countries
16
Top Contributor^
Belgium
Net Contribution 0.27%Top Detractor^
Germany
Net Contribution -0.29%Largest Overweight
United Kingdom
Largest Underweight
Norway
Team (As of 06-Feb-2020)
Ben Griffiths is the portfolio manager for the European Smaller Companies Strategy and undertakes investment analysis covering European small-cap stocks. Mr. Griffiths is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.
Mr. Griffiths has 20 years of investment experience, 13 of which have been with T. Rowe Price. Prior to joining the firm in 2006, he was an investment manager with Baillie Gifford.
Mr. Griffiths earned a diploma in investment analysis from Stirling University and an M.Eng. in engineering science from Oxford University. Mr. Griffiths has earned the Chartered Financial Analyst designation.
- Portfolio manager2016
since - Years at
T. Rowe Price - Years investment
experience
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 at9
T. Rowe Price - Years investment30
experience
Ben Griffiths is the portfolio manager for the European Smaller Companies Strategy and undertakes investment analysis covering European small-cap stocks. Mr. Griffiths is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.