Strategy

Frontier Markets Equity

The Frontier Markets Equity Composite seeks long-term capital appreciation through investing in companies located, or with primary operations, in Frontier markets (defined as those markets which are not in the MSCI AC World Index) which are experiencing sustainable, strong earnings growth and trading at reasonable valuations relative to market/sector averages.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

-6.96%
4.96%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

-18.20%
-0.02

Inception Date 30-Jun-2014

Performance figures calculated in USD

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Oliver Bell
Oliver Bell, Co-Portfolio Manager

Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.

 

Strategy

Investment Approach

  • Invest across the entire frontier investment universe, including countries outside the MSCI Frontier Markets Index.
  • Rigorous, risk-aware approach to identify quality growing companies trading at attractive valuations.
  • Employ fundamental analysis with a focus on returns, balance sheet structure, management team and corporate governance.
  • Disciplined approach to valuation. Verify relative valuation appeal versus peers and history.
  • Consider macroeconomic and political factors to temper bottom-up enthusiasm.

Portfolio Construction

  • Number of holdings: 60-80 stocks
  • Individual position sizes typically range from 0.5%-10%
  • Country Ranges:
    • Index countries: Unconstrained
    • Non-index countries: Constrained – 15% limit in any one country
  • Sector Ranges: Unconstrained. Maximum 50% in Financials.
  • Reserves are typically less than 5%
  • Expected Turnover range: 20-40%

Holdings

Total
Holdings
53
Largest Holding National Bank of Kuwait 9.44% Was (31-Mar-2020) 9.14%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 48.12% View Top 10 Holdings Monthly data as of 30-Jun-2020

Top Purchase

Agility (N)
2.81%
Was (31-Mar-2020) 0.00%

Top Sale

Commercial International Bank Egypt
0.48%
Was (31-Mar-2020) 1.67%

Quarterly Data as of 30-Jun-2020

Sectors

Total
Sectors
11
Largest Sector Financials 51.64% Was (31-Mar-2020) 52.03%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: MSCI Frontier Market 10/40 Index Net

Top Contributor^

Financials
Net Contribution 1.76%
Sector
-0.35%
Selection 2.11%

Top Detractor^

Consumer Staples
Net Contribution -1.26%
Sector
0.36%
Selection
-1.62%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Consumer Discretionary
By7.26%
Portfolio 7.40%
Benchmark 0.14%

Largest Underweight

Communication Services
By-10.42%
Portfolio 5.16%
Benchmark 15.58%

Monthly Data as of 30-Jun-2020

Regions

Total
Regions
3
Largest Region Middle East & Africa 46.68% Was (31-Mar-2020) 45.50%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2020

Benchmark: MSCI Frontier Market 10/40 Index Net

Top Contributor^

EM EMEA
Net Contribution 0.63%
Region
0.48%
Selection 0.15%

Top Detractor^

United States
Net Contribution -0.08%
Region
-0.08%
Selection
0.00%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Pacific Ex Japan
By11.71%
Portfolio 34.65%
Benchmark 22.94%

Largest Underweight

Middle East & Africa
By-16.52%
Portfolio 46.68%
Benchmark 63.19%

Monthly Data as of 30-Jun-2020

Countries

Total
Countries
21
Largest Country Kuwait 27.02% Was (31-Mar-2020) 23.23%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2020

Benchmark: MSCI Frontier Market 10/40 Index Net

Top Contributor^

Bahrain
Net Contribution 1.59%
Country
1.59%
Selection 0.00%

Top Detractor^

Rwanda
Net Contribution -0.70%
Country
-0.70%
Selection
0.00%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Vietnam
By4.81%
Portfolio 24.61%
Benchmark 19.80%

Largest Underweight

Nigeria
By-5.95%
Portfolio 0.00%
Benchmark 5.95%

Monthly Data as of 30-Jun-2020

Team (As of 05-Aug-2020)

Oliver Bell

Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.

Mr. Bell has 21 years of investment experience, seven of which have been with T. Rowe Price. Prior to joining the firm in 2011, Mr. Bell was head of emerging markets equities research at Pictet Asset Management (the institutional asset management arm of Pictet & Cie, the largest private bank in Switzerland), where his responsibilities included managing several funds, as well as a team of analysts. During his time at Pictet, Mr. Bell was directly responsible for managing investments in the emerging Europe, Middle East and Africa region as part of the global emerging markets and the standalone Middle East and Africa portfolios. Mr. Bell also managed the Global Emerging Markets High Dividend Yield Equity Strategy.

Mr. Bell has earned a bachelor of science degree in chemistry from Exeter University and also has earned the Investment Management Certificate.

  • Portfolio manager
    since
    2014
  • Years at
    T. Rowe Price
    8
  • Years investment
    experience
    22
Johannes Loefstrand

Johannes Loefstrand is the Co-Portfolio Manager on the Frontier Markets Fund in the Equity Division of T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Johannes’s investment experience began in 2012 and he has been with T. Rowe Price since 2015, beginning in the Emerging Markets Equity Division. Prior to this, he was an investment analyst at Arisaig Partners in Singapore and in Cape Town.

Johannes earned a master of laws degree from the London School of Economics and a bachelor of laws degree from the University of Groningen, Netherlands.

  • Portfolio manager
    since
    2020
  • Years at
    T. Rowe Price
    4
  • Years investment
    experience
    0
Leigh Innes

Leigh Innes is a Director of Research in the International Equity Division. She also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Leigh’s investment experience began in 1997, and she has been with T. Rowe Price since 2002, beginning as an investment analyst, a portfolio manager, and a portfolio specialist for Emerging Markets Equity. Prior to T. Rowe Price, Leigh was employed by Merrill Lynch as a fund manager/analyst covering Latin America.

Leigh earned an M.A., with honors, in mathematics from Oxford University. She 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
    18
  • Years investment
    experience
    23

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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

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