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)

4.46%
2.95%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

-3.64%
0.31

Inception Date 30-Apr-2012

Performance figures calculated in AUD

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Randal S. Jenneke
Randal S. Jenneke, Portfolio Manager

Randal Jenneke is a portfolio manager and head of Australian equities. He is a vice president of T. Rowe Price Group, Inc. 

 

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

Holdings

Total
Holdings
35
Largest Holding CSL 10.01% Was (31-Mar-2020) 8.82%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 52.85% View Top 10 Holdings Monthly data as of 30-Jun-2020

Top Purchase

National Australia Bank (N)
5.00%
Was (31-Mar-2020) 0.00%

Top Sale

Woolworths
2.04%
Was (31-Mar-2020) 7.88%

Quarterly Data as of 30-Jun-2020

Sectors

Total
Sectors
10
Largest Sector Health Care 19.08% Was (31-Mar-2020) 15.12%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: S&P/ASX 200 Index

Top Contributor^

Consumer Discretionary
Net Contribution 0.97%
Sector
1.31%
Selection -0.34%

Top Detractor^

Materials
Net Contribution -1.15%
Sector
0.09%
Selection
-1.24%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Consumer Discretionary
By11.58%
Portfolio 18.53%
Benchmark 6.96%

Largest Underweight

Financials
By-13.08%
Portfolio 14.26%
Benchmark 27.33%

Monthly Data as of 30-Jun-2020

Team (As of 01-Oct-2020)

Randal S. Jenneke

Randal Jenneke is a portfolio manager and head of Australian equities. He is a vice president of T. Rowe Price Group, Inc. 

Mr. Jenneke has 28 years of investment experience, nine of which have been with T. Rowe Price. Prior to joining the firm in 2010, he was a senior portfolio manager of Australian equities at Schroder Investment Management.

Mr. Jenneke earned a B.Ec. in accounting and finance from Macquarie University and a graduate diploma in applied finance and investment from the Securities Institute of Australia.

  • Portfolio manager
    since
    2012
  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    29

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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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