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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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Home / Products / Strategy / Emerging Markets Discovery Equity Strategy
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Past performance is not a reliable indicator of future performance.

Strategy

Emerging Markets Discovery Equity

The Emerging Markets Discovery Equity Composite seeks long-term capital appreciation primarily through investment in emerging markets with attractive valuation levels relative to market/sector averages.

Strategy HighLights
GIPS
Performance Report

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

Tracking Error
(5 Years)

7.81%
6.07%
Data as of 30-Sep-2021
Data as of 30-Sep-2021

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

34.53%
0.24
Data as of 30-Sep-2021
Data as of 30-Sep-2021

Inception Date 30-Sep-2015

Performance figures calculated in USD

Ernest C. Yeung, CFA
Ernest C. Yeung, CFA, Portfolio Manager

Ernest Yeung is a portfolio manager for the Emerging Markets Discovery Equity Strategy at T. Rowe Price. He was the co-portfolio manager for the International Small-Cap Equity Strategies from 2009 to 2014. Mr. Yeung is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited.

 

Strategy

Investment Approach

  • Aim to exploit the valuation anomalies that arise across the diverse and inefficient emerging market opportunity set.
  • Employ a contrarian approach using fundamental research, quantitative screen and industry contacts to identify companies that are out of favor, undervalued and that offer an attractive risk and reward profile.
  • Minimize the risk of value traps by focusing on companies offering yield or a book value anchor to the valuation, and where we have identified re-rating thesis that can lead to an expansion in valuation over time.
  • Risk management is an integral part of the portfolio construction process.

Portfolio Construction

  • Typically 50-80 stock portfolio
  • Expected 4-8% tracking error
  • Individual position typically 0.5% to 5%, position sized by prospective risks
  • Country ranges +/-10% absolute deviation from the benchmark
  • Sector ranges +/-15% absolute deviation from the benchmark
  • Reserves are normally less than 5%, max 10%

Regions

Total
Regions
4
Largest Region Pacific Ex Japan 63.35% Was (30-Jun-2021) 66.94%
Other View complete Region Diversification

Monthly Data as of 30-Sep-2021

Benchmark: MSCI Emerging Markets Index

Largest Overweight

Europe
By11.35%
Portfolio 16.87%
Benchmark 5.52%

Largest Underweight

Pacific Ex Japan
By-15.09%
Portfolio 63.35%
Benchmark 78.44%

Monthly Data as of 30-Sep-2021

Countries

Total
Countries
21
Largest Country China 30.63% Was (30-Jun-2021) 33.35%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2021

Benchmark: MSCI Emerging Markets Index

Top Contributor^

China
Net Contribution 3.09%
Country
0.45%
Selection 2.64%

Top Detractor^

Taiwan
Net Contribution -0.68%
Country
-0.65%
Selection
-0.04%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Netherlands
By4.43%
Portfolio 4.43%
Benchmark 0.00%

Largest Underweight

Taiwan
By-10.25%
Portfolio 4.31%
Benchmark 14.56%

Monthly Data as of 30-Sep-2021

Strategies with co-portfolio managers display the manager with the longer tenure. 

Holdings information and other breakdowns (such as country and currency) are related to those of representative portfolio ("Portfolio"). The Portfolio is an account in the composite we believe most closely reflects current portfolio management style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of other accounts in the strategy. Please see the GIPS® Disclosure page for additional information on the composite.

The specific securities identified and described above do not represent all of the securities purchased, sold or recommended for advisory clients and no assumptions should be made that investments in the securities identified and discussed were or will be profitable.