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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

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AUT

Global Equity Fund

High-conviction, global equity portfolio targeting companies throughout the world.

APIR ETL0071AU

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

Total Assets
(AUD)

21.90%
$6.4b

1YR Return (Net)
(View Total Returns)

Manager Tenure

28.91%
12yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.27
5.33%

Inception Date 15-Sep-2006

Performance figures calculated in AUD

30-Sep-2021 - Scott Berg, Portfolio Manager,
We expect markets to remain volatile in the near term as investors grapple with a mix of positive and negative tensions; we are trying to remain balanced within the portfolio. We continue to thoughtfully process information as it is uncovered and are open minded that the world can change as time progresses and events unfold.
Scott Berg
Scott Berg, Portfolio Manager

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and a vice president of T. Rowe Price Group, Inc.

 

Strategy

Investment Objective

The fund’s objective is to provide long-term capital appreciation by investing primarily in a portfolio of securities of companies which are traded, listed or due to be listed, on recognised exchanges and/or markets throughout the world. The portfolio may include investments in the securities of companies traded, listed or due to be listed, on recognised exchanges and/or markets of developing countries.

Investment Approach

  • Single decision maker provides clear accountability.
  • Identify "best ideas" by assessing companies in a global sector context, using bottom-up approach to create focused, high-conviction portfolio.
  • Global research platform uses fundamental analysis to identify companies with superior and sustainable growth prospects, and improving fundamentals.
  • Macroeconomic and local market factors are integrated in stock selection decisions.
  • Valuation appeal is measured against local market and broad sector opportunity set.
  • Broad range of large-cap stocks, incorporating developed and emerging markets.

Portfolio Construction

  • Number of holdings: Typically around 90-145 holdings.
  • Individual positions: Typically 0.3%-3.0%, maximum 5%.
  • Emerging markets exposure: +/- 15% of benchmark.
  • Broad sector ranges: +/- 10% of benchmark.
  • Country ranges: +/- 10% of benchmark (USA is +/- 20%).
  • Currency hedging: Currency views incorporated in stock selection.
  • Cash target range: Typically less than 5%.
  • Expected tracking error: 300 to 700 basis points.

Performance - Net of Fees 

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 28.91% 21.90% 21.39% 19.23% 13.61%
Benchmark % 26.37% 12.71% 14.60% 15.40% N/A
Excess Return % 2.54% 9.19% 6.79% 3.83% N/A

Inception Date 15-Sep-2006

Manager Inception Date 26-Oct-2008

Benchmark: MSCI All Country World Index ex Australia Net

Data as of 30-Sep-2021

Performance figures calculated in AUD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 28.91% 21.90% 21.39% 19.23%
Benchmark % 26.37% 12.71% 14.60% 15.40%
Excess Return % 2.54% 9.19% 6.79% 3.83%

Inception Date 15-Sep-2006

Benchmark: MSCI All Country World Index ex Australia Net

Data as of 30-Sep-2021

Performance figures calculated in AUD

Recent Performance

  Month to DateData as of 14-Oct-2021 Quarter to DateData as of 14-Oct-2021 Year to DateData as of 14-Oct-2021 1 MonthData as of 30-Sep-2021 3 MonthsData as of 30-Sep-2021
Fund % -0.85% -0.85% 17.12% -4.01% 2.27%
Benchmark % -0.30% -0.30% 18.43% -3.02% 2.87%
Excess Return % -0.55% -0.55% -1.31% -0.99% -0.60%

Inception Date 15-Sep-2006

Benchmark: MSCI All Country World Index ex Australia Net

Benchmark: MSCI All Country World Index ex Australia Net

Performance figures calculated in AUD

Past performance is not a reliable indicator of future performance.

Source for performance: T Rowe Price. Net of fees performance is based on end of month redemption prices after the deduction of fees and expenses and the reinvestment of all distributions. Figures include changes in principal value. Investment return and principal value will vary, and an account may be worth more or less at termination than at inception. For further details, please refer to the fund's product disclosure statement and reference guide which are available from Equity Trustees or TRPAU.

Daily performance (MTD, QTD, and YTD) data is based on the latest available NAV minus one business day.

Effective 1 June 2019, the "net" version of the benchmark replaced the "gross" version of the benchmark. The "net" version of the 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.

Returns for time periods greater than one year are annualised.

Fund performance is shown in I Class.

30-Sep-2021 - Scott Berg, Portfolio Manager,
In Australian dollar terms, global equity markets pulled back in September amid inflation and interest rate fears. The spread of the Delta variant of the coronavirus continued to weigh on the global economy, but progress in vaccinations helped support investor confidence. Within the portfolio, our holdings in consumer discretionary detracted the most from relative returns. Shares of a Brazilian omnichannel retailer fell amid tough comparison data, increased competition, and pressure across the broader Brazilian market. We continue to think the company is a strong, durable grower that is capable of sustaining well-above industry average growth in e-commerce and marketplace retail. Conversely, stock selection in the information technology sector helped. Shares of a leading NoSQL, non-relational database spiked after the firm reported strong earnings results, driven mainly by impressive growth in its cloud Database as a Service offering, which saw outstanding accelerating demand. We think the firm has a long runway for consistent and durable growth given its strong leadership in the market with multiple long-term tailwinds, including the constant need for fast, reliable, and scalable data solutions, growing enterprise comfort with and adoption of NoSQL databases, and the delivery of database software as a service.

Holdings

Total
Holdings
198
Largest Holding Amazon.com 3.08% Was (30-Jun-2021) 2.98%
Other View Full Holdings Quarterly data as of  30-Sep-2021
Top 10 Holdings 15.20% View Top 10 Holdings Monthly data as of  30-Sep-2021

Largest Top Contributor^

Alphabet
% of fund 2.65%

Largest Top Detractor^

Alibaba Group Holding
% of fund 0.92%

^Absolute, percentages based on the difference between the total net assets of the two largest holdings of the fund.

Quarterly Data as of 30-Sep-2021

Top Purchase

Amazon.com
3.07%
Was (30-Jun-2021) 2.98%

Top Sale

Okta (E)
0.00%
Was (30-Jun-2021) 0.41%

Quarterly Data as of 30-Sep-2021

30-Jun-2021 - Scott Berg, Portfolio Manager,

Over the quarter, our positioning remained largely sector neutral. We are currently in a very challenging environment where markets are debating the timing of the end to the pandemic and what the world will look like in the next six to 12 months. This is creating more complexity for us as investors, and with so many unknowns, our most pressing goal is to keep a very balanced portfolio of diverse holdings across sectors and regions. As always, we want to own truly innovative companies that can produce solid growth over a two- to three-year time horizon, while paying a reasonable price. With the market flip-flopping between favoring secular and cyclical companies, we are being diligent about using the opportunities presented to pick up names we like at reasonable valuations.

Sector-wise, our most meaningful overweight is in consumer discretionary, with other sectors having much more modest over- and underweights versus the benchmark. Consumer discretionary was also the sector that had the most meaningful shift, as our allocation increased. Meanwhile, our exposure to consumer staples and industrials and business services decreased. Regionally, our allocation to North America decreased, while other regions experienced more modest shifts. We continue to be overweight fast-growing emerging market countries that have low debt-to-gross domestic product ratios and attractive demographic growth, such as India, Indonesia,Vietnam�and the Philippines. The portfolio is also overweight China, with an emphasis on domestic exposure to areas like information technology and health care, where there is a lot of innovation and the government is focused on building vibrant domestic industries.

Consumer Discretionary

The consumer discretionary sector now represents our largest overweight position. In our view, there are more coronavirus beneficiaries in the consumer discretionary sector than anywhere else, but this has led to a dramatic demarcation between winners and losers. COVID-19 has pulled forward years of e-commerce share gains in the span of a few months, and we have an expanded and diverse set of names levered to that trend. We continue to think the market is severely underestimating the profound effect the pandemic has had on the consumer landscape. It is now vital for companies to view their businesses through an omnichannel lens, and it is no longer an option for businesses to ignore the need for an online presence.

  • Pinduoduo is a rising e-commerce leader with the largest number of online buyers in China. The stock was significantly down from its February highs due to skepticism around the company's foray into community grocery. We think Pinduoduo can be the potential winner in community grocery, a key innovation in e-commerce, which we view as a large opportunity set where long-term profitability is feasible.

Energy

While oil prices have rebounded and there is better balance between supply and demand in the short term, we continue to have a subdued medium- and long-term outlook on the sector due to still rampant U.S. shale productivity, less impetus for coordination between oil-producing nations, and growing ESG/terminal value concerns. We currently have no exposure to the energy sector.

  • We eliminated our stake in EOG Resources on strength as shares traded higher amid a strong rebound in oil prices. We are wary of the inherent secular risks associated with the broader energy space, and we instead prefer to own names that offer indirect exposure to commodities without the associated environmental, social, and governance headwinds.
  • We exited our position in European integrated oil and gas producer Galp Energia. Our thesis for the company has changed, as the company tilts toward more downstream energy sources where we feel it has less of a competitive advantage. With our conviction reduced, we chose to move on from the stock.

Health Care

The long-term secular tailwinds for the health care sector remain in place. Within the sector, we have meaningful exposure to life sciences tools and services companies making biologics or facilitating research and development efforts for companies in the biopharma space, as well as equipment and supplies companies focused on medical diagnostics and testing. We also own companies tied to the ongoing secular trend of robotic surgery and have exposure to U.S. managed care where fundamentals remain strong and valuations are attractive. Within biotechnology, we continue to invest in highly innovative companies that have the best chance of dominating their space through drugs likely to become the standard of care in large and well-characterized markets or companies where we have a degree of confidence that the repeatability of their platform gives them the potential to become much larger over time.

  • We eliminated our stake in leading contract research organization PPD following news that the company would be acquired by Thermo Fisher Scientific. We used the sale proceeds to buy shares of other names within the health care space that we believe offer more attractive risk/reward potential.

Information Technology

Advancements in areas like artificial intelligence (AI) and enterprise software are not only affecting technology companies, but also reshaping more traditional industries once viewed as less susceptible to business model disruption. The powerful long-run trends that we believe will drive value creation in the technology sector remain and, in some cases, have been accelerated by the ongoing pandemic. Aftereffects from the pandemic could also result in lasting behavioral changes with more people working remotely and payment methods skewing more digitally. As a result, software and electronic payments are areas of focus for our sector exposure, but we also remain positioned to benefit from increasing AI adoption as well as the growing technology consumption in emerging markets.

  • We initiated a position in Chinese construction software vendor Glodon. Glodon's main source of revenue is from its contribution cost estimation software, where it has a dominant market position and a meaningful competitive advantage. We think there are several tailwinds for Glodon that should lead to strong growth over the long term, including the company's efforts to transition to a subscription-based venue model as well as cross-selling opportunities that should fuel growth in its newer business segments of construction management and design software.
  • We started a position in Manhattan Associates, which develops warehouse and supply chain�execution software primarily used by retail and retail-related customers, third-party logistics,�life sciences, and�high-tech industries.�The company has a synergistic portfolio of cloud products that is well positioned to benefit from ongoing omnichannel retail and direct-to-customer trends. We think the company's cloud revenue can grow substantially as its customer base invests in upgrading systems to stay relevant and meet their customer expectations.

Sectors

Total
Sectors
11
Largest Sector Information Technology 22.78% Was (31-Aug-2021) 22.97%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2021

Benchmark: MSCI All Country World Index ex Australia (unhedged)

Top Contributor^

Health Care
Net Contribution 0.50%
Sector
0.00%
Selection 0.49%

Top Detractor^

Consumer Discretionary
Net Contribution -1.97%
Sector
-0.12%
Selection
-1.84%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Consumer Discretionary
By5.39%
Fund 17.92%
Benchmark 12.53%

Largest Underweight

Energy
By-3.49%
Fund 0.03%
Benchmark 3.51%

Monthly Data as of 30-Sep-2021

30-Sep-2021 - Scott Berg, Portfolio Manager,
We are overweight the consumer discretionary sector, where we are focused on leaders within the global online retail and consumer services ecosystems. COVID-19 has pulled forward years of e-commerce share gains, and we have an expanded and diverse set of names levered to that trend. We continue to think the market is severely underestimating the profound effect the pandemic has had on the consumer landscape. It is now vital for companies to view their businesses through an omnichannel lens, and it is no longer an option for businesses to ignore the need for an online presence.

Countries

Total
Countries
29
Largest Country United States 54.90% Was (31-Aug-2021) 54.91%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2021

Benchmark: MSCI All Country World Index ex Australia (unhedged)

Largest Overweight

India
By4.06%
Fund 5.54%
Benchmark 1.48%

Largest Underweight

United States
By-5.50%
Fund 54.90%
Benchmark 60.40%

Monthly Data as of 30-Sep-2021

Team (As of 01-Oct-2021)

Scott Berg

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and a vice president of T. Rowe Price Group, Inc.

Mr. Berg has 17 years of investment experience, all of which have been with T. Rowe Price. He joined the firm in 2002 as a research analyst covering the business services sector after serving as a summer intern in 2001. In 2005, he joined the global equity team as an associate portfolio manager and in 2008 launched the Global Growth Equity Strategy. Prior to T. Rowe Price, he was the manager of financial analysis and planning for Mead Consumer and Office Products. Previously, Mr. Berg was also employed by McKinsey & Company as a business analyst and was a core team member on the firm's global growth initiative.

Mr. Berg graduated first in his class from Macquarie University in Australia, with a B.Ec. in actuarial studies and finance. He also holds an M.B.A. from the Stanford Graduate School of Business, where he again graduated at the top of his class. Mr. Berg has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2008
  • Years at
    T. Rowe Price
    19
  • Years investment
    experience
    19
Samuel Ruiz

Samuel Ruiz is a portfolio specialist in the Equity Division. He is a vice president of T. Rowe Price Australia Ltd.

Sam’s investment experience began in 2008, and he has been with T. Rowe Price since 2020, beginning in the Equity Division working on the Global and Australia Equity Strategies. Prior to this, Sam was employed by Macquarie Investment Management in the area of strategy in the Equities Division.

Sam earned a bachelor of applied finance degree from the University of South Australia.

  • Years at
    T. Rowe Price
    1
  • Years investment
    experience
    13

Fees

APIR Minimum Initial Investment (AUD) Minimum Subsequent Investment (AUD) Buy/Sell Spread Management Fees
ETL0071AU $500,000 $100,000 Buy +0.25%/ Sell -0.20% 0.94% pa