US Smaller Companies Equity Fund*

A fund seeking attractive companies from across the full US smaller companies universe.

At a glance:

Strategy inception date
31 July 2001
Comparator benchmark
Russell 2500 Index Net 15%

Ratings 

Curt Organt
Portfolio Manager
Why T. Rowe Price US Smaller Companies Equity Equity Fund?
Our US Smaller Companies Equity Fund invests in a well-diversified portfolio of attractively valued, out-of-favour companies with strong potential for improvement, or companies that may appear fully valued, but whose long-term growth potential is under appreciated. It’s designed to give consistent access to growth and value opportunities in up-and-coming US industries and companies.
1 Blend of compelling growth and value opportunities

We maintain a blend of value and growth stocks, opportunistically purchasing emerging growth stocks when our research leads us to believe a company’s true growth potential is not fully appreciated by others in the marketplace and purchasing value and core stocks with a near-term catalyst to improve fundamentals, company earnings, or valuation. This approach enables us to selectively take advantage of valuation anomalies created by extreme swings in investor sentiment while delivering a more consistent pattern of performance to our clients.

1. Attractive business model
2. Sound or improving financial characteristics
3. Potential for catalyst
4. Reasonable valuation
5. Quality, shareholder-oriented management teams

2 Highly diversified portfolio
We maintain a portfolio of 150-250 positions, with market-like risk exposures and sector weightings to help limit industry risk and volatility. We will invest across the growth and value universe in response to changing market conditions and as the opportunity set evolves.
3 Long-term investment orientation

We are patient investors whose discussions with company managements emphasise long-term business strategy as opposed to near-term operating results.

Portfolio turnover is therefore relatively low, which allows for the compounding of earnings growth and lower portfolio trading costs.

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 capitalisation companies in the United States.
We want to own companies with strong business models and catalysts not fully appreciated by the market. We also pay a lot of attention to the quality of management, as good decisions around things like strategic direction and capital allocation greatly improves our odds of success over time.
Curt Organt / Portfolio Manager
Diversified exposure to US smaller companies across the growth and value spectrum
Highly-diversified portfolio
  • 150-250 holdings
  • Sector weights driven by stock selection
  • Stocks <
    US$12bn market cap
Growth and value opportunities
  • Flexible style bias, tilted in response to changing conditions
Leading companies
  • Diversified portfolio of innovative businesses with potential for growth and attractive valuations

Key Risks – The following risks are materially relevant to the fund (refer to prospectus for further details):

Small and mid-cap risk – stocks of small and mid-size companies can be more volatile than stocks of larger companies.

Volatility risk – the performance of the strategy has a risk of high volatility.

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*T. Rowe Price Funds SICAV – US Smaller Companies Equity Fund and T. Rowe Price Funds OEIC – US Smaller Companies Equity Fund

Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors and via the links titled “See all SICAV fund data” and “See all OEIC fund data” available in the resources section above.

Past performance is not a reliable indicator of future performance.

Morningstar Rating as at 30 June 2020. The Morningstar Rating is updated on a monthly basis. For the latest ratings information please visit the Morningstar website. FE fundinfo Crown Fund Rating as at 30 June 2020.

©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For further information on ratings methodology please visit www.morningstar.com

This rating relates to the SICAV Fund which is managed in the same way as the OEIC Fund but has a longer track record. © 2020 FE fundinfo. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FE fundinfo, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by FE fundinfo, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete, or accurate. FE fundinfo 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. FE fundinfo does not guarantee that a fund will perform in line with its FE fundinfo Crown Fund Rating as it is a reflection of past performance only. Likewise, the FE fundinfo Crown Fund Rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision.

Other US Equity funds

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All figures are as at 30 June 2020 unless stated otherwise.

1 Total US Equity Assets: 652.3 Billion GBP. As of 30 June 2020. US Equity AUM includes assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.

2 T. Rowe Price Funds OEIC – US Large Cap Growth Equity Fund, T. Rowe Price Funds SICAV – US Large Cap Growth Equity Fund.
3 T. Rowe Price Funds SICAV – US Blue Chip Equity Fund.
4 T. Rowe Price Funds OEIC – US Equity Fund, T. Rowe Price Funds SICAV – US Equity Fund.
5 T. Rowe Price Funds OEIC – US Large Cap Value Equity Fund, T. Rowe Price Funds SICAV – US Large Cap Value Equity Fund.
6 T. Rowe Price Funds OEIC – US Smaller Companies Equity Fund, T. Rowe Price Funds SICAV – US Smaller Companies Equity Fund

Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors and via the links titled “See all SICAV fund data” and “See all OEIC fund data” available in the resources section above.