Past performance is not a reliable indicator of future performance.
Strategy
Australia Equity
The Australia Equity Composite seeks long‐term capital appreciation primarily through investment of at least 90% of its market value in securities of high quality growing Australian companies included in the Standard and Poor's/ASX200 Accumulation Index. The composite will include securities of a broad range of companies across the market capitalization. The strategy may contain investment in the securities outside of the benchmark including certain ASX listed stocks which are also listed on a foreign exchange.
3YR Return Annualised (Net)
(View Total Returns)
Tracking Error
(5 Years)
1YR Return (Net)
(View Total Returns)
Information Ratio
(5 Years)
Inception Date 30-Apr-2012
Performance figures calculated in AUD
Strategy
Investment Approach
- Our investment approach focuses on bottom-up company fundamentals but recognizes that sector and industry analysis are also critical to understanding growth drivers. The portfolio manager ultimately seeks to construct a growth-oriented portfolio of stocks, ranging across all market capitalization segments and maintaining sector diversification.
- One of the core tenets of our investment philosophy is that quality growth stocks are frequently mispriced. Our long-term investment approach provides us with the opportunity to take advantage of near-term trends that can often be overemphasized by the market and our competitors.
- We implement fundamental analysis to identify companies with positive structural industry dynamics, strong competitive positions and those that we believe can grow sustainably at attractive rates of return. In seeking out these higher-quality businesses, we focus on industry attractiveness, competitive advantage, management quality, free cash flow, return on capital and financing/balance sheet structure.
- Our global research platform enables us to access and use information from local and global perspectives, generating unique insights. The strategy comprises some of the highest-conviction ideas from our research platform, as well as the insights of our global sector and regional equity portfolios. We expect these businesses to compound value faster than the overall market and outperform over time, focusing on opportunities where our fundamental views differ from market expectations.
- We assess valuations relative to other local market opportunities, seeking high-growth companies with attractive valuations relative to their long-term intrinsic value.
- Systematic and integrated risk management are hallmarks of our investment process.
Portfolio Construction
- Universe consists of Australian and New Zealand listed stocks as well as dual listed stocks trading on foreign exchanges
- Typically 30-40 holdings, ranging across all market capitalization segments
- Individual positions range from +/- 5% relative to benchmark
- Expected Tracking Error: typically 3.0 to 6.0% over rolling three-year period
- Cash target range: Cash Reserves are typically less than 5% but will not exceed 10% of the Fund's total market value
- Turnover range: 30 - 50% per annum
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Composite Gross % | -6.71% | 5.23% | 8.66% | 9.12% |
| Composite Net % | -7.13% | 4.75% | 8.17% | 8.63% |
| Benchmark % | -10.21% | 4.80% | 7.31% | 7.94% |
| Excess Return (Gross) % | 3.50% | 0.43% | 1.35% | 1.18% |
Recent Performance
| 3 MonthsData as of 30-Sep-2020 | Year to DateData as of 30-Sep-2020 | |
|---|---|---|
| Composite Gross % | 1.07% | -10.19% |
| Composite Net % | 0.95% | -10.49% |
| Benchmark % | -0.44% | -10.82% |
| Excess Return (Gross) % | 1.51% | 0.63% |
Past performance is not a reliable indicator of future performance.
Returns for time periods greater than one year are annualised.
Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule contained within this material, without the benefit of breakpoints. Gross and net performance returns reflect the reinvestment of dividends and are net of all non-reclaimable withholding taxes on dividends, interest income, and capital gains.
Holdings
Total
Holdings
34
Top Purchase
Bhp
8.75%Top Sale
APA
2.35%Sectors
Total
Sectors
11
Top Contributor^
Consumer Discretionary
Net Contribution 1.42%Top Detractor^
Consumer Staples
Net Contribution -0.91%Largest Overweight
Consumer Discretionary
Largest Underweight
Financials
Team (As of 15-Jan-2021)
Randal Jenneke is a portfolio manager and head of Australian equities in the International Equity Division. He is a director of T. Rowe Price Australia, Ltd. He is also a vice president of T. Rowe Price Group, Inc.
Randal’s investment experience began in 1991, and he has been with T. Rowe Price since 2010, beginning in the International Equities Group. Prior to this, Randal was employed by Schroders in the area of investment management.
Randal earned a B.Ec. in accounting and finance from Macquarie University. He also earned a graduate diploma in applied finance and investment from the Securities Institute of Australia.
- Portfolio manager2012
since - Years at10
T. Rowe Price - Years investment29
experience
Randal Jenneke is a portfolio manager and head of Australian equities in the International Equity Division. He is a director of T. Rowe Price Australia, Ltd. He is also a vice president of T. Rowe Price Group, Inc.