Strategy
Frontier Markets Equity
The Frontier Markets Equity Composite seeks long-term capital appreciation through investing in companies located, or with primary operations, in Frontier markets (defined as those markets which are not in the MSCI AC World Index) which are experiencing sustainable, strong earnings growth and trading at reasonable valuations 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-Jun-2014
Performance figures calculated in USD
Strategy
Investment Approach
- Invest across the entire frontier investment universe, including countries outside the MSCI Frontier Markets Index.
- Rigorous, risk-aware approach to identify quality growing companies trading at attractive valuations.
- Employ fundamental analysis with a focus on returns, balance sheet structure, management team and corporate governance.
- Disciplined approach to valuation. Verify relative valuation appeal versus peers and history.
- Consider macroeconomic and political factors to temper bottom-up enthusiasm.
Portfolio Construction
- Number of holdings: 60-80 stocks
- Individual position sizes typically range from 0.5%-10%
- Country Ranges:
- Index countries: Unconstrained
- Non-index countries: Constrained – 15% limit in any one country
- Sector Ranges: Unconstrained. Maximum 50% in Financials.
- Reserves are typically less than 5%
- Expected Turnover range: 20-40%
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Composite Gross % | -17.40% | -6.06% | -0.18% | -0.73% |
| Composite Net % | -18.20% | -6.96% | -1.13% | -1.67% |
| Benchmark % | -11.04% | -1.72% | -0.10% | -2.55% |
| Excess Return (Gross) % | -6.36% | -4.34% | -0.08% | 1.82% |
Recent Performance
| 3 MonthsData as of 30-Jun-2020 | Year to DateData as of 30-Jun-2020 | |
|---|---|---|
| Composite Gross % | 15.41% | -20.61% |
| Composite Net % | 15.15% | -21.00% |
| Benchmark % | 14.65% | -15.65% |
| Excess Return (Gross) % | 0.76% | -4.96% |
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.
Effective 1 January 2020, the primary benchmark for the composite changed from MSCI Frontier Markets Index Net to MSCI Frontier Market 10-40 Index Net. Effective 1 July 2018, the benchmark for the composite changed from gross to net of withholding taxes. The changes were made because the firm viewed the new benchmarks to be more consistent with the tax impacts of the portfolios in the composite. Historical benchmark representations have been restated.
Holdings
Total
Holdings
53
Top Purchase
Agility (N)
2.81%Top Sale
Commercial International Bank Egypt
0.48%Sectors
Total
Sectors
11
Top Contributor^
Financials
Net Contribution 1.76%Top Detractor^
Consumer Staples
Net Contribution -1.26%Largest Overweight
Consumer Discretionary
Largest Underweight
Communication Services
Regions
Total
Regions
3
Top Contributor^
EM EMEA
Net Contribution 0.63%Top Detractor^
United States
Net Contribution -0.08%Largest Overweight
Pacific Ex Japan
Largest Underweight
Middle East & Africa
Countries
Total
Countries
21
Top Contributor^
Bahrain
Net Contribution 1.59%Top Detractor^
Rwanda
Net Contribution -0.70%Largest Overweight
Vietnam
Largest Underweight
Nigeria
Team (As of 05-Aug-2020)
Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.
Mr. Bell has 21 years of investment experience, seven of which have been with T. Rowe Price. Prior to joining the firm in 2011, Mr. Bell was head of emerging markets equities research at Pictet Asset Management (the institutional asset management arm of Pictet & Cie, the largest private bank in Switzerland), where his responsibilities included managing several funds, as well as a team of analysts. During his time at Pictet, Mr. Bell was directly responsible for managing investments in the emerging Europe, Middle East and Africa region as part of the global emerging markets and the standalone Middle East and Africa portfolios. Mr. Bell also managed the Global Emerging Markets High Dividend Yield Equity Strategy.
Mr. Bell has earned a bachelor of science degree in chemistry from Exeter University and also has earned the Investment Management Certificate.
- Portfolio manager2014
since - Years at8
T. Rowe Price - Years investment22
experience
Johannes Loefstrand is the Co-Portfolio Manager on the Frontier Markets Fund in the Equity Division of T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.
Johannes’s investment experience began in 2012 and he has been with T. Rowe Price since 2015, beginning in the Emerging Markets Equity Division. Prior to this, he was an investment analyst at Arisaig Partners in Singapore and in Cape Town.
Johannes earned a master of laws degree from the London School of Economics and a bachelor of laws degree from the University of Groningen, Netherlands.
- Portfolio manager2020
since - Years at4
T. Rowe Price - Years investment0
experience
Leigh Innes is a Director of Research in the International Equity Division. She also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Leigh’s investment experience began in 1997, and she has been with T. Rowe Price since 2002, beginning as an investment analyst, a portfolio manager, and a portfolio specialist for Emerging Markets Equity. Prior to T. Rowe Price, Leigh was employed by Merrill Lynch as a fund manager/analyst covering Latin America.
Leigh earned an M.A., with honors, in mathematics from Oxford University. She also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Years at18
T. Rowe Price - Years investment23
experience
Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.