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T. Rowe Price Responsible European Smaller Companies Equity
This fund is pan-European, also investing in the UK, and its manager is highly experienced, with a proven track record managing small and mid-cap portfolios in Europe. He is part of a dedicated smaller companies analyst team, utilising an integrated investment process that emphasises fundamental stock selection and rigorous portfolio construction.
Previously T. Rowe Price European Smaller Companies Equity
Our opinion
T. Rowe Price Responsible European Smaller Companies Equity is an excellent pan-European smaller companies fund run by a very experienced manager, with the backing of a dedicated team and all the resources that T. Rowe Price can provide.
Company description
Founded in 1937, T. Rowe Price is one of the world's largest investment managers and was awarded the Elite Provider for Equities Rating each year from 2016 to 2021. Fundamental research is at the heart of the T. Rowe Price approach, with more than 200 in-house analysts dedicated to equity and fixed income research. Experienced and stable fund management teams are a key feature of the firm.
Fund manager
Ben joined T. Rowe Price in 2006 as an analyst covering European smaller companies. Prior to this, he worked at Baillie Gifford as an investment manager. Ben has co-managed this fund since 2008, taking the lead role in January 2016. He is a CFA charterholder and achieved a Masters in Engineering at Oxford University.
Our mission: early identification of long-term opportunities.
Ben GriffithsFund manager
Investment process
The research process of the T. Rowe Price Responsible European Smaller Companies Equity fund emphasises high quality, durable franchises with good capital allocation and high standards of corporate governance. This fund, like most others at T. Rowe Price, has a bias in favour of growth investing. The team's universe of stocks is less well covered by the asset management industry giving Ben plenty of scope to find unloved and undervalued companies. Buying early or in a contrarian fashion with a long-term view allows him to compound his winners. Ben will initially look to buy and hold a stock for five years at the point of investment.
ESG
ESG - Integrated
An assessment of ESG considerations is integrated into the whole portfolio construction process. No quantitative screening tools are used, rather fundamental company analysis and research is used to provide greater in-depth knowledge of ESG factors, as well as an assessment of the materiality of those considerations. ESG factors are assessed alongside other fundamental considerations and T. Rowe integrates those assessments in its investment decisions for the purpose of enhancing investment performance. ESG inputs are also important from a risk management perspective.
T. Rowe has a team of dedicated ESG specialists who continually help the portfolio managers to identify and analyse the impact of ESG factors on any existing and potential investments. This is supplemented by regular, more formal meetings where a full review of the portfolio is undertaken, specific stocks are discussed in detail, and engagement opportunities are identified, as the managers place great importance on engagement with the management teams of the companies in which they invest.
Risk
T. Rowe Price Responsible European Smaller Companies Equity is well diversified with around 100 holdings. Initial positions are limited to a maximum of 2% of the portfolio to reduce individual stock risk. The fund is unconstrained by sectors and typically has a bias in favour of technology, healthcare and consumer discretionary companies. Risk management is controlled through rigorous analysis and careful portfolio construction – not risk avoidance. Investors should also be aware of the currency risk.
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.