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 % | 9.95% | 3.95% | 8.14% | 13.50% |
| Composite Net % | 9.24% | 3.28% | 7.44% | 12.77% |
| Benchmark % | -4.14% | 0.19% | 2.75% | 9.28% |
| Excess Return (Gross) % | 14.09% | 3.76% | 5.39% | 4.22% |
Recent Performance
| 3 MonthsData as of 30-Jun-2020 | Year to DateData as of 30-Jun-2020 | |
|---|---|---|
| Composite Gross % | 29.29% | 1.07% |
| Composite Net % | 29.10% | 0.74% |
| Benchmark % | 18.66% | -15.59% |
| Excess Return (Gross) % | 10.63% | 16.66% |
Past performance is not a reliable indicator of future performance.
Returns for time periods greater than one year are annualised.
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.
Effective 1 July 2018, the benchmark for the composite, MSCI Europe Small Cap Index, was changed from gross to net of withholding taxes. The change was because the firm viewed the new benchmark to be more consistent with the tax impacts of the portfolios in the composite. Historical benchmark representations were restated. Prior to 1 January 2016, the benchmark was S&P Pan Europe Small‐Cap Index Net.
Holdings
Total
Holdings
98
Top Purchase
ASOS
1.74%Top Sale
Mail.Ru (E)
0.00%Sectors
Total
Sectors
10
Top Contributor^
Consumer Discretionary
Net Contribution 3.29%Top Detractor^
Health Care
Net Contribution -0.61%Largest Overweight
Health Care
Largest Underweight
Industrials & Business Services
Countries
Total
Countries
14
Top Contributor^
United Kingdom
Net Contribution 3.85%Top Detractor^
Norway
Net Contribution -0.30%Largest Overweight
United Kingdom
Largest Underweight
Norway
Team (As of 05-Aug-2020)
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 manager2016
since - Years at14
T. Rowe Price - Years investment0
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 at10
T. Rowe Price - Years investment31
experience
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.