T. Rowe Price OEIC Global Value Equity C Acc 9 - Accumulation (GBP)

Mallet has built a strong long-term track record. The fund’s performed better than the average fund in the IA Global sector since launch in November 2012. Like many global value funds that don’t tend to invest as much in US or technology companies as growth-focused funds, this one hasn’t performed as well as its benchmark, the MSCI World Index, over this time.

That said, our analysis shows this fund has performed better than many other global value funds as well as the MSCI World Value Index.

The fund also offers important diversification. While US and technology companies have done well in recent years, different sectors, themes and countries will come in and out of favour and perform well at different times. For example, the fund performed much better than the market in 2022 when value companies outperformed.

Over the longer term, we expect the fund to do better when value investing is in favour, and the reverse is also true. Given Mallet invests in some higher-quality companies we also expect the fund to hold up better than some others when markets fall but may not rise as quickly when they go up.

Overall, we think Mallet has the experience, skill, and support to deliver good long-term returns to patient investors.

Mallet believes stock markets often overreact to uncertainty, which can cause share prices to move away from a company’s true value. If his assessment is correct and the company improves over time, its share price could rise as the market re-evaluates it.

The research team plays a key role in narrowing down the investment universe of around 4,000 companies and determining if a company’s share price is mispriced and undervalued.

Using the team’s research and ideas, Mallet builds a fund of 80–100 companies. He works closely with the analysts to understand the risks and rewards of each investment and assesses whether a company is higher quality and defensive, or a deeper value and potentially riskier one. By blending both types, Mallet believes the fund is better positioned to perform across a range of market conditions and will be less volatile. Mallet also has the flexibility to invest in emerging markets and smaller companies, both of which can increase return potential but add risk.

Mallet usually invests in the higher-quality companies for up to three years for their true value to be reflected in the share price. Deeper-value companies are typically held for less time. Once a company reaches what Mallet believes is its true value, he’ll either sell or reassess if there’s further potential.