Strategy
Middle East & Africa Equity
The Middle East & Africa Equity Composite seeks long-term capital appreciation through investing across the region in companies who are experiencing 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-Sep-2007
Performance figures calculated in USD
Strategy
Investment Approach
- The strategy is growth orientated, unconstrained and designed to deliver strong absolute performance.
- Stock selection is driven by fundamental analysis seeking to identify the best companies with attractive valuations and earnings that are growing faster than their local, regional or global peers.
- In investment frontiers such as the Middle East and Africa market, inefficiencies are likely to be significant. One of the core tenets of our investment strategy is that stocks are frequently mispriced.
- Focus on finding companies with above-average revenue growth, strong management and good corporate governance.
- The bottom-up, stock specific approach is supported by a top-down perspective focusing on macro and micro-factors mainly at the country level.
- A broad opportunity set allows for greater flexibility in the pursuit of alpha.
- Manager with a proven track record of investing in emerging markets supported by a dedicated analyst team.
Portfolio Construction
- Typically 50-80 stocks
- Individual positions typically range from 2.0%-8.0%
- Country and sector weights unconstrained
- Cash reserves 1%-5%
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
10 YR Annualised |
|
|---|---|---|---|---|
| Composite Gross % | -22.97% | -3.84% | -3.36% | 3.88% |
| Composite Net % | -23.64% | -4.66% | -4.18% | 3.00% |
| Benchmark % | -19.25% | -2.95% | -3.34% | 2.47% |
| Excess Return (Gross) % | -3.72% | -0.89% | -0.02% | 1.41% |
Recent Performance
| 3 MonthsData as of 30-Jun-2020 | Year to DateData as of 30-Jun-2020 | |
|---|---|---|
| Composite Gross % | 12.15% | -21.88% |
| Composite Net % | 11.92% | -22.22% |
| Benchmark % | 17.36% | -19.62% |
| Excess Return (Gross) % | -5.21% | -2.26% |
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 benchmark changed from a gross of withholding tax benchmark to a net of withholding tax benchmark. The change was because the firm viewed the new benchmark to be more consistent with the tax impacts of the portfolios in the composite. Historical benchmark representations were restated. Effective 1 January 2018, the benchmark for the composite was changed to MSCI Arabian Markets & Africa 10/40 Investable Market Index Net. Prior to 1 January 2018, the benchmark was S&P Emerging Market/Frontier Middle East & Africa Broad Market Index ex Israel Net. Prior to 30 September 2010, the benchmark for the composite was MSCI Arabian Markets and Africa Index. Prior to 1 July 2009, the benchmark was the S&P IFCG Africa and Middle East ex-Saudi Arabia and ex-Israel, a custom benchmark with the base line of the S&P/IFCI EMEA index which is a subset of the S&P/IFCI index excluding Saudi Arabia and Israel. Prior to 1 September 2008, this benchmark also excluded Kuwait.
Holdings
Total
Holdings
42
Top Purchase
Saudi Basic Industries (N)
3.63%Top Sale
Prosus
2.00%Sectors
Total
Sectors
10
Top Contributor^
Consumer Discretionary
Net Contribution 0.41%Top Detractor^
Materials
Net Contribution -3.12%Largest Overweight
Consumer Staples
Largest Underweight
Materials
Countries
Total
Countries
13
Top Contributor^
Netherlands
Net Contribution 0.41%Top Detractor^
South Africa
Net Contribution -3.90%Largest Overweight
Morocco
Largest Underweight
Saudi Arabia
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 manager2011
since - Years at8
T. Rowe Price - Years investment22
experience
Seun Oyegunle is the co-portfolio manager of the Africa & Middle East Fund in the Equity Division.
Seun’s investment experience began in 2009, and he has been with T. Rowe Price since 2013, beginning as a research analyst, covering retail and other sectors across a number of emerging markets, in the Emerging Markets department of the Equity Division. Prior to this, Seun was employed by Asset and Research Management Ltd as an analyst covering the consumer goods sector. He also was employed by Vetiva Capital Management Ltd.
Seun earned an M.B.A. in finance from the University of Pennsylvania, The Wharton School, and a B.Sc. in chemical engineering from the University of Lagos. Seun also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Portfolio manager2020
since - Years at7
T. Rowe Price - Years investment11
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.