fund
T. Rowe Price US Smaller Companies Equity Q GBP
A well diversified portfolio of small US companies
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2557.00p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.95%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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1.11%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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0.00%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
This fund aims 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 smaller capitalisation companies(up to $9bn market cap) listed in the United States. The portfolio is diversified across more than 200 holdings and is a blend of both value and growth styles.
Fund summary
| Sector | North American Smaller Cos |
| Structure | OFFSHORE FUND |
| Launched | January, 2013 |
| Size | £1,275m |
| Yield | 0.00% |
| Charging basis | Income |
| Dividends paid | Acc units only |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.95% |
| Ongoing charges figure | 1.11% |
Allocation
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Investment process
T Rowe Price is Baltimore based and has a team of 140 equity analysts, 40 of whom are focused on smaller companies. The team meets more than 1,000 companies each year. Smaller companies are much less well covered by other stock market professionals which means having a large, experienced in-house team of analysts is a distinct advantage. Companies must have market values between $100m to $9bn which gives them a pool of 2,500 stocks from which to build a portfolio of around 200 holdings. Sector weights are set by bottom–up stock selection though with an eye on keeping a broad sector diversification to limit risk/volatility. Both growth and value stocks are chosen. Position size is set by their confidence in the investment thesis and the quality of the company's business model. The risks of investing in small companies are somewhat offset by holding several companies in any given sector - for example in biotechnology where each company is reliant on the success (or otherwise) of a single drug, the manager will take positions in several such companies.
T Rowe Price has run funds investing in US smaller companies since the 1960s and now manages more than US$100 billion in US small and mid caps. Its long history and large size means it has unrivalled access to companies’ senior management. The T Rowe Price US Smaller Companies Equity fund has a more diverse 200-300 stock portfolio rather than a high risk focused portfolio - the approach is “broad brush” rather than “shot gun”. The fund’s holdings are often taken over by larger rivals, often at significant premia to the prevailing share price, giving an added fillip to its performance.
Manager research
Average monthly relative returns
- 15/16 0.00%
- 16/17 0.00%
- 17/18 0.83%
- 18/19 0.51%
- 19/20 0.97%
Bestinvest MRI
- 3 years 0.77%
- 5 years 0.00%
- Career 0.68%
- 3 years 100.00%
- 5 years 0.00%
- Career 100.00%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Ryan Burgess
Burgess is a portfolio manager in T Rowe Price’s US Equity Division.
Track record
Ryan Burgess has 3.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.68%. During the worst period of relative performance (from February 2018 - July 2018) there was a decline of 4% relative to the index. The worst absolute loss has been 16%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
Periods of worst performance
| Absolute | -16.00% (August 2018 - December 2018) |
| Relative | -4.00% (February 2018 - July 2018) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 30 September 2015
| 1.64% | Multi-Color Corp |
| 1.58% | SS&C Technologies Holdings Inc |
| 1.51% | Vantiv Inc |
| 1.46% | Iron Mountain Inc |
| 1.44% | VeriSign Inc |
| 1.38% | Tile Shop Holdings Inc |
| 1.29% | Xerium Technologies Inc |
| 1.27% | Berry Plastics Group Inc |
| 1.16% | PNM Resources Inc |
| 1.1% | Incyte Corp |
| Source:T Rowe Price |
Portfolio
As at 30/09/15: 207 holdings; forecast earnings growth rate 12%; forward PE 20x.
Constraints
200-300 holdings. Market cap range $100m to $9bn.
Key Investor Information