Strategy
Emerging Markets Discovery Equity
Formerly Emerging Markets Value Equity Strategy
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.
3YR Return Annualised (Net)
(View Total Returns)
Tracking Error
(5 Years)
1YR Return (Net)
(View Total Returns)
Information Ratio
(5 Years)
Inception Date 30-Sep-2015
Performance figures calculated in USD
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%
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Composite Gross % | -5.26% | -1.27% | 7.42% | 7.42% |
| Composite Net % | -6.06% | -2.11% | 6.51% | 6.51% |
| Benchmark % | 10.54% | 2.42% | 8.97% | 8.97% |
| Excess Return (Gross) % | -15.80% | -3.69% | -1.55% | -1.55% |
Recent Performance
| 3 MonthsData as of 30-Sep-2020 | Year to DateData as of 30-Sep-2020 | |
|---|---|---|
| Composite Gross % | 3.08% | -15.37% |
| Composite Net % | 2.86% | -15.92% |
| Benchmark % | 9.56% | -1.16% |
| Excess Return (Gross) % | -6.48% | -14.21% |
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.
Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Holdings
Total
Holdings
64
Top Purchase
Ping An Bank (N)
2.00%Top Sale
Dongfeng Motor (E)
0.00%Sectors
Total
Sectors
11
Top Contributor^
Materials
Net Contribution 0.79%Top Detractor^
Consumer Discretionary
Net Contribution -3.75%Largest Overweight
Materials
Largest Underweight
Consumer Discretionary
Regions
Total
Regions
4
Largest Overweight
Europe
Largest Underweight
Pacific Ex Japan
Countries
Total
Countries
17
Top Contributor^
Mexico
Net Contribution 0.93%Top Detractor^
China
Net Contribution -3.51%Largest Overweight
Mexico
Largest Underweight
Taiwan
Team (As of 01-Oct-2020)
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.
Mr. Yeung has 17 years of investment experience, 15 of which have been with T. Rowe Price. Prior to joining the firm in 2003, he was an analyst with HSBC Asset Management in London.
Mr. Yeung earned an M.A., with honours, in economics from Cambridge University. He also has earned the Chartered Financial Analyst designation and the Investment Management Certificate.
- Portfolio manager2015
since - Years at17
T. Rowe Price - Years investment19
experience
Nick Beecroft is the APAC head of the Investment Specialist Group and a portfolio specialist in the Equity Division. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Nick’s investment experience began in 2001, and he has been with T. Rowe Price since 2005, beginning in the Equity Division. Prior to this, Nick was employed by Mercer Investment Consulting as an investment analyst.
Nick earned a B.A., with honors, in contemporary European studies from the University of Southampton. He also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Years at15
T. Rowe Price - Years investment19
experience
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.