Past performance is not a reliable indicator of future performance.
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 % | -9.37% | -4.79% | 4.02% | 0.53% |
| Composite Net % | -10.24% | -5.69% | 3.04% | -0.42% |
| Benchmark % | -2.42% | -1.59% | 3.83% | -1.17% |
| Excess Return (Gross) % | -6.95% | -3.20% | 0.19% | 1.70% |
Recent Performance
| 3 MonthsData as of 30-Sep-2020 | Year to DateData as of 30-Sep-2020 | |
|---|---|---|
| Composite Gross % | 7.98% | -14.27% |
| Composite Net % | 7.73% | -14.90% |
| Benchmark % | 8.49% | -8.49% |
| Excess Return (Gross) % | -0.51% | -5.78% |
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 July 2018, the "net" version of the benchmark replaced the "gross" version of the benchmark. The "net" version of the benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly.
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
52
Top Purchase
Safaricom
3.51%Top Sale
National Bank of Kuwait
9.52%Sectors
Total
Sectors
10
Top Contributor^
Consumer Discretionary
Net Contribution 0.88%Top Detractor^
Financials
Net Contribution -1.06%Largest Overweight
Consumer Discretionary
Largest Underweight
Communication Services
Regions
Total
Regions
3
Top Contributor^
Pacific ex Japan
Net Contribution 2.15%Top Detractor^
EM EMEA
Net Contribution -2.20%Largest Overweight
Pacific Ex Japan
Largest Underweight
Middle East & Africa
Countries
Total
Countries
20
Top Contributor^
Vietnam
Net Contribution 2.03%Top Detractor^
Bahrain
Net Contribution -0.98%Largest Overweight
Vietnam
Largest Underweight
Nigeria
Team (As of 15-Jan-2021)
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 at5
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
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.