Download

Audience for the document: Share Class: Language of the document:

Download

Share Class: Language of the document:

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest

T. Rowe Price

Please enter valid search characters

SICAV

Asian Opportunities Equity Fund

A concentrated portfolio of high-quality Asian companies.

ISIN LU1044871579 WKN A114WH

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

11.60%
$380.4m

1YR Return
(View Total Returns)

Manager Tenure

26.78%
6yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.39
4.23%

Inception Date 21-May-2014

Performance figures calculated in USD

Other Literature

30-Nov-2020 - Eric C. Moffett, Portfolio Manager,
Some Asian markets have started to price in a possible return to normality by 2022 amid expectations of an available vaccine and herd immunity. We see value in businesses that can benefit from the end of the pandemic, but are cognisant that markets may correct on evidence of reinfection or mutation of the coronavirus. While markets such as India have rerated, Southeast Asia, where valuations remain undemanding, may be a fertile hunting ground for investment opportunities.
Eric C. Moffett
Eric C. Moffett, Portfolio Manager

Eric Moffett is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited. He is the portfolio manager for the firm's Asia Opportunities equity strategy and chairman of the strategy's Investment Advisory Committee. 

 

Strategy

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 diversified portfolio of stocks of companies in Asia.

Investment Approach

  • Seeking long term capital appreciation to come from owning high quality businesses that will reliably compound earnings/ cash flow generation over time.
  • In Asia, this type of company tends to exhibit three key characteristics:
    • Established companies with leading market positions.
    • Good management teams who care about shareholder returns.
    • Returns-focused capital allocation and prudent balance sheet management.
  • Fundamental research is critical in helping us to identify these characteristics and exploit market inefficiencies:
    • Focus on the long term. Be patient.
    • Gain a better understanding of the durability of a company’s prospects than the market.
    • More accurately assess a company’s intrinsic value than other market participants.

Portfolio Construction

  • Typically 40-70 stock portfolio
  • Individual positions typically range from 0.50% to 6.00%.
  • Country and sector weightings a residual of stock selection.
  • Cash position typically less than 5%.

Performance (Class A)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 26.78% 11.60% 15.23% 11.46% 11.46%
Indicative Benchmark % 25.02% 8.15% 13.58% 8.75% 8.75%
Excess Return % 1.76% 3.45% 1.65% 2.71% 2.71%

Inception Date 21-May-2014

Manager Inception Date 21-May-2014

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Data as of 31-Dec-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 26.78% 11.60% 15.23% 11.46%
Indicative Benchmark % 25.02% 8.15% 13.58% 8.75%
Excess Return % 1.76% 3.45% 1.65% 2.71%

Inception Date 21-May-2014

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Data as of 31-Dec-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 15-Jan-2021 Quarter to DateData as of 15-Jan-2021 Year to DateData as of 15-Jan-2021 1 MonthData as of 31-Dec-2020 3 MonthsData as of 31-Dec-2020
Fund % 3.95% 3.95% 3.95% 4.27% 18.22%
Indicative Benchmark % 5.75% 5.75% 5.75% 6.80% 18.60%
Excess Return % -1.80% -1.80% -1.80% -2.53% -0.38%

Inception Date 21-May-2014

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Performance figures calculated in USD

Past performance is not a reliable indicator of future performance.  Source for fund performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures. 

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

Index returns shown with reinvestment of dividends after the deduction of withholding taxes. 

Effective 1 July 2018, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly. 

30-Nov-2020 - Eric C. Moffett, Portfolio Manager,
Asia ex-Japan equities advanced in November, albeit to a lesser extent than developed market counterparts, as the impact of promising vaccine developments were tempered by fresh waves of coronavirus cases in several countries. Within the portfolio, stock selection in India contributed the most to outperformance. In particular, Shriram Transport Finance, which provides pre-owned commercial vehicle financing, and Kotak Mahindra Bank (KMB) lifted relative returns as they reported strong quarterly results. We have better visibility on Shriram’s path to a normalised return on equity and profitability post-results. We continue to believe that KMB’s high-quality lending franchise will help it take market share. Stock choices in Hong Kong, notably Hysan Development, a retail and office landlord, also boosted returns reacting to improved operations. At a sector level, our stock choices in financials added value. Aside from Shriram and KMB, Chailease Holding helped returns due to the Taiwanese leasing company’s solid quarterly results that showed improving asset quality trends. In contrast, our underweight in South Korea weakened relative returns as the market outperformed following a solid earnings season and stronger-than-expected exports that reflected buoyant sales of memory chips.

Holdings

Total
Holdings
66
Largest Holding Taiwan Semiconductor Manufacturing 6.93% Was (30-Sep-2020) 6.86%
Other View Full Holdings Quarterly data as of  31-Dec-2020
Top 10 Holdings 41.23% View Top 10 Holdings Monthly data as of  31-Dec-2020

Largest Top Contributor^

Taiwan Semiconductor Manufacturing
By 1.38%
% of fund 6.87%

Largest Top Detractor^

Alibaba Group Holding
By -4.27%
% of fund 5.11%

^Absolute

Quarterly Data as of 31-Dec-2020

Top Purchase

Tencent Holdings
6.65%
Was (30-Sep-2020) 7.62%

Top Sale

Treasury Wine Estates (E)
0.00%
Was (30-Sep-2020) 2.79%

Quarterly Data as of 31-Dec-2020

30-Sep-2020 - Eric C. Moffett, Portfolio Manager,

During the third quarter, we remained comfortable with our positioning following the significant changes we made to our holdings in the first half the year. We continued to take the opportunity to invest in quality companies that can reliably compound earnings - companies that can deliver consistent earnings regardless of the economic cycle. We favor businesses which are run by a reliable management team, and which are cash-generative with an attractive dividend yield.

We increased our positions in the core quality names that we own in China while lock in gains in select consumer holdings and deployed the funds released to increase exposure to Taiwanese IT names. Outside of technology, we also initiated positions in companies where we think the recovery story is intact.

We believe our portfolio is well positioned for an eventual recovery from the coronavirus pandemic. We think the strength of domestic consumption in the region will prevail and will yield ample secular growth opportunities.

We Increased our Stake in Core Quality Positions in China

In China, the portfolio's largest country position, we added to our holdings in Chinese internet giants Tencent and the abovementioned Alibaba, driven by their attractive long-term prospects in the China ecommerce and internet space. We had cut our positions in these names in the first quarter when we used them to fund portfolio additions.

  • Tencent announced strong quarterly results that demonstrated the durability of its growth with the China-U.S. friction having a limited impact on its core business. Its gaming revenues grew despite user time spent on mobile games coming down sequentially as many users went back to school and work, demonstrating that the coronavirus disruption had a positive impact on long-term game monetization potential. We think Tencent's future growth will be driven by game innovation, improving monetization capability in advertising and the launch of new fintech products.
  • We also increased our position in Yum China, which operates the KFC and Pizza Hut chains in the country, and which has been a top holding in the portfolio since inception. Its fast-food business remained resilient during the coronavirus outbreak. We continue to like its cash-generative business model and strong balance sheet as well as the quality of its corporate governance.
  • While increasing these exciting core holdings, we also established new positions in ecommerce firm Meituan Dianping, which we earlier discussed, and in Pinduoduo, which has a differentiated positioning as a marketplace for value-for-money products. It counts Tencent as a shareholder.

We Added to Taiwanese Positions Largely in Semiconductors

We increased our stake in Taiwan during the quarter, adding mostly to our positions in semiconductor names. We started to invest in Vanguard International which focuses on 8-inch wafer fabrication foundry services. We view it as a well-managed company with good corporate governance and steady dividend growth over time. Over the longer term, 8-inch wafer supply may be tight owing to limited incremental 8-inch wafer capacity expansion mainly due to the lack of depreciated tools in the market. Moreover, Vanguard may be less affected by U.S.-China trade tensions which centers more on leading-edge technology. We also boosted our position in TSMC, which we have discussed earlier, and in MediaTek, a fabless design house which in our view remains a key 5G solution provider for Chinese smartphone makers even as the U.S. expanded its curbs on Huawei Technologies. MediaTek is the only non-US independent 5G solution supplier globally.

Outside of these IT stocks, we increased our stake in Chailease Holding, a well-run leasing company catering to small- and medium-sized enterprises. It delivered a solid set of quarterly results, with asset quality remaining stable. Chailease has a good track record as it has been operating in Taiwan for decades and has weathered several major downturns. It has delivered a high return-on-equity through the cycle, driven by its high-quality and stable leasing franchise in Taiwan and growing China business.

Industrials and Business Services Allocation Boosted

We established a position in Beijing Capital International Airport, one of China's largest airports, as we are betting on an earnings acceleration and potential valuation re-rating in 2021 to 2023. The recovery should be driven by better-than-expected international passenger volume and duty-free spending.

We also added to our positions in Greentown Service, a Chinese property management company, and ComfortDelGro, a Singapore land transport company. We increased our stake in Greentown given its increased discipline concerning new investments as well as its focus on profitability with an expanding margin, a reversal of the negative trend in the past three years.

ComfortDelGro, on the other hand, has the balance sheet and cashflows to weather the near-term difficulties brought about by the coronavirus outbreak, supported by a decent dividend yield. We see an earnings recovery in 2021 once the work-from-home restrictions ease. As the recovery thesis remains intact, free cash flow generation remains strong.

We Reduced our Allocation to Consumer Discretionary

Consumer discretionary remained our biggest sector position in absolute and relative terms, but we decreased our overweight to this segment during the quarter.

We decreased our holdings in China Yongda Automobiles, the country's largest BMW and Porsche dealer, locking in some of the year-to-date gains brought about by expectations of a recovery in auto demand. We continue to view Yongda as a share gainer in a fragmented auto dealer industry that may benefit from growth in aftermarket revenue and potential merger and acquisition deals. Its management is executing well and is becoming more focused on returns, with inventory turnover now a key metric for a store manager. These improvements should support the stock's re-rating.

Within the China auto opportunity set, we prefer auto dealers that can benefit from the shift towards higher return and less volatile aftermarket services. We favor dealers with favorable brand and geographic exposure, strong operational capability and sound capital allocation. China's auto sector will likely witness more consolidation as well as an upgrade in quality going forward.

Sectors

Total
Sectors
10
Largest Sector Consumer Discretionary 26.99% Was (30-Nov-2020) 30.18%
Other View complete Sector Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: MSCI All Country Asia ex Japan Index (unhedged)

Top Contributor^

Financials
Net Contribution 1.75%
Sector
-0.06%
Selection 1.81%

Top Detractor^

Consumer Staples
Net Contribution -1.26%
Sector
-0.24%
Selection
-1.02%

^Relative

Quarterly Data as of 31-Dec-2020

Largest Overweight

Consumer Discretionary
By7.91%
Fund 26.99%
Indicative Benchmark 19.08%

Largest Underweight

Information Technology
By-4.84%
Fund 18.23%
Indicative Benchmark 23.07%

Monthly Data as of 31-Dec-2020

30-Nov-2020 - Eric C. Moffett, Portfolio Manager,
We reduced our allocation to consumer staples as we exited Treasury Wine Estates, which sources half of its revenue from Asia and counts its Penfolds wine brand in China as a key driver. We liked its growth potential driven by China’s rising wine consumption but eliminated the stock amid China’s crippling anti-dumping duties on Australian wine. We also cut our allocation in consumer discretionary, our largest sector position, as we exited Meituan, an online services platform offering food delivery, and replaced it with another e-commerce platform, which we like for its value-for-money positioning that will help it take market share.

Countries

Total
Countries
10
Largest Country China 38.17% Was (30-Nov-2020) 39.46%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: MSCI All Country Asia ex Japan Index (unhedged)

Top Contributor^

India
Net Contribution 1.72%
Country
-0.00%
Selection 1.72%

Top Detractor^

South Korea
Net Contribution -0.48%
Country
-0.74%
Selection
0.26%

^Relative

Quarterly Data as of 31-Dec-2020

Largest Overweight

Hong Kong
By6.13%
Fund 13.50%
Indicative Benchmark 7.36%

Largest Underweight

China
By-6.04%
Fund 38.17%
Indicative Benchmark 44.21%

Monthly Data as of 31-Dec-2020

30-Nov-2020 - Eric C. Moffett, Portfolio Manager,
We increased our allocation to Hong Kong, as we established a position in a Southeast Asian-focused conglomerate which has retail, property and auto manufacturing businesses. Notably, the company has been buying back its stock, which we liked, and its valuation was undemanding. This new holding boosted the fund’s allocation to Hong Kong, our biggest country overweight in November. We turned more overweight in Singapore as we increased our stake in an internet platform provider domiciled in the city state whose ecommerce business is gaining share in Southeast Asia. The move further diversified our investments in the sector.

Team (As of 15-Jan-2021)

Eric C. Moffett

Eric Moffett is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited. He is the portfolio manager for the firm's Asia Opportunities equity strategy and chairman of the strategy's Investment Advisory Committee. 

Mr. Moffett has 19 years of investment experience, 12 of which have been with T. Rowe Price. Prior to joining the firm in 2007, Mr. Moffett was an analyst with Fayez Sarofim & Company, where he covered the household products, communications equipment and lodging/leisure industries. Mr. Moffett also was employed as an associate at Audax Group and as a management consultant with Bain & Company.

Mr. Moffett earned an A.B., magna cum laude, in economics from Princeton University and an M.B.A. from Harvard Business School.

  • Fund manager
    since
    2014
  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    20
Nick Beecroft, CFA

Nick Beecroft is the APAC head of the Investment Specialist Group and a portfolio specialist in the Equity Division. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Nick’s investment experience began in 2001, and he has been with T. Rowe Price since 2005, beginning in the Equity Division. Prior to this, Nick was employed by Mercer Investment Consulting as an investment analyst.

Nick earned a B.A., with honors, in contemporary European studies from the University of Southampton. He also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    19

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (USD) Minimum Subsequent Investment (USD) Minimum Redemption Amount (USD) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $1,000 $100 $100 5.00% 160 basis points 1.77%
Class I $2,500,000 $100,000 $0 0.00% 75 basis points 0.85%
Class Q $1,000 $100 $100 0.00% 75 basis points 0.92%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.