Identifying Opportunity

A significant proportion of the earnings of many Australian companies are generated from offshore markets. Therefore, when looking at these stocks, such as an Australian domiciled global building products supplier, T. Rowe Price’s Australia–based equity analyst evaluates the quality of the opportunity through on the ground site visits to manufacturing plants and meetings with company management, cross-referencing findings with T. Rowe Price teams across the globe.

The result: sound investment decisions made for our clients through global collaboration.

Our Culture of Collaboration

A key market for the company is the US residential housing sector. Changes to the US housing market, local competition, as well as, input and freight-distribution costs are therefore likely to impact upon the company’s operating results and stock performance.

Our Australian analyst collaborates with Baltimore’s housing analyst, transport analyst, and a Fixed Income analyst who covers the corporate bonds issued by the company’s competitors.

A London-based research analyst further factors in their expertise on the supply, demand and pricing of US fibre cement siding. All these information sources are important inputs to help the Australia analyst derive the key assumptions used evaluate the company’s expected operating performance and investment attractiveness.

Research findings are distributed across T. Rowe Price’s global collaborative network to stimulate healthy debate and rigorously test the assumptions and conclusions surrounding the investment idea. This cross-analysis gives confidence to the Australian Equity Portfolio Manager who selects the company stock.