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SICAV

Asian Opportunities Equity Fund

A concentrated portfolio of high-quality Asian companies.

ISIN LU1044871900 Valoren 24532532

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

17.19%
$123.0m

1YR Return
(View Total Returns)

Manager Tenure

24.89%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.87
4.36%

Inception Date 21-May-2014

Performance figures calculated in USD

Other Literature

30-Nov-2019 - Eric C. Moffett, Portfolio Manager,
Strong consumption growth in most of Asia supports our constructive outlook for the region’s equity markets. In China, despite the slowing economy, we believe what matters is employment and so far, real wage growth remains positive, suggesting a relatively tight labour market. However, it is unclear how the trade conflict with the U.S. will affect income and employment in China. In terms of company valuations, Asia ex-Japan remains reasonable amid the trade dispute.
Eric C. Moffett
Eric C. Moffett, Portfolio Manager

Eric Moffett is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited. He is the portfolio manager for the firm's Asia Opportunities equity strategy and chairman of the strategy's Investment Advisory Committee. 

 

Strategy

Investment Objective

To increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a diversified portfolio of stocks of companies in Asia.

Investment Approach

  • Seeking long term capital appreciation to come from owning high quality businesses that will reliably compound earnings/ cash flow generation over time.
  • In Asia, this type of company tends to exhibit three key characteristics:
    • Established companies with leading market positions.
    • Good management teams who care about shareholder returns.
    • Returns-focused capital allocation and prudent balance sheet management.
  • Fundamental research is critical in helping us to identify these characteristics and exploit market inefficiencies:
    • Focus on the long term. Be patient.
    • Gain a better understanding of the durability of a company’s prospects than the market.
    • More accurately assess a company’s intrinsic value than other market participants.

Portfolio Construction

  • Typically 40-70 stock portfolio
  • Individual positions typically range from 0.50% to 6.00%.
  • Country and sector weightings a residual of stock selection.
  • Cash position typically less than 5%.

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 24.89% 17.19% 10.36% 9.98% 9.98%
Indicative Benchmark % 18.17% 12.77% 6.55% 6.09% 6.09%
Excess Return % 6.72% 4.42% 3.81% 3.89% 3.89%

Inception Date 21-May-2014

Manager Inception Date 21-May-2014

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Data as of  31-Dec-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 24.89% 17.19% 10.36% 9.98%
Indicative Benchmark % 18.17% 12.77% 6.55% 6.09%
Excess Return % 6.72% 4.42% 3.81% 3.89%

Inception Date 21-May-2014

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Data as of  31-Dec-2019

Performance figures calculated in USD

Recent Performance

  Month to Date Quarter to Date Year to Date 1 MonthData as of 31-Dec-2019 3 MonthsData as of 31-Dec-2019
Fund % N/A N/A N/A 6.23% 12.02%
Indicative Benchmark % N/A N/A N/A 6.65% 11.78%
Excess Return % N/A N/A N/A -0.42% 0.24%

Inception Date 21-May-2014

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Performance figures calculated in USD

Past performance is not a reliable indicator of future performance.  Source for fund performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures. 

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

Returns shown with reinvestment of dividends after the deduction of withholding taxes. 

Effective 1 July 2018, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative 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. 

30-Nov-2019 - Eric C. Moffett, Portfolio Manager,
Asia ex-Japan equity markets ended broadly flat in November as legislation signed by U.S. President Trump supporting pro-democracy protesters in Hong Kong dampened optimism over a near-term U.S.-China trade deal. China, however, still led regional gains as its central bank stepped up monetary easing and was the top contributor within the portfolio. Ecommerce firm Alibaba, which IPO’d in Hong Kong in November, added the most. It reported strong quarterly earnings growth and we think it will likely improve profitability in the big Chinese cities. From a sector perspective, owning Shimao Property benefitted following the homebuilder’s solid results. We continue to believe that Shimao will gain market share in a consolidating market. Our position in Bumrungrad Hospital added further as the Thai-based health care provider recovered some of the losses since August. In contrast, our selection in the Philippines hurt, particularly Jollibee Foods as the fast-food chain’s shares fell following its ex-dividend date and profit decline after booking losses from Smashburger, which it took full control of last year. Our stock choices in consumer staples such as Yixintang Pharmaceutical also dragged as investors in China rotated to cyclical laggards at the expense of defensive names in health care.

Holdings

Total
Holdings
50
Largest Holding Tencent Holdings 7.55% Was (30-Sep-2019) 6.23%
Other View Full Holdings Quarterly data as of 31-Dec-2019
Top 10 Holdings 46.43% View Top 10 Holdings Monthly data as of 31-Dec-2019

Largest Top Contributor^

Tencent Holdings
By 0.19%
% of fund 7.50%

Largest Top Detractor^

HKT Trust & HKT Limited
By -0.40%
% of fund 2.29%

^Absolute

Quarterly Data as of 31-Dec-2019

Top Purchase

Hysan Development (N)
4.00%
Was (30-Sep-2019) 0.00%

Top Sale

NAVER
0.92%
Was (30-Sep-2019) 2.56%

Quarterly Data as of 31-Dec-2019

31-Oct-2019 - Eric C. Moffett, Portfolio Manager,
We increased our overweight in real estate as we initiated a position in a Hong Kong commercial landlord, which has a strong financial position and is focused on ensuring a stable absolute dividend. This stock is not very reliant on visiting tourists from the mainland. We also took the opportunity to add to our existing holdings in high-conviction names within the consumer discretionary sector. These businesses, which include a Chinese ecommerce company and a fast food chain operator, will likely continue to benefit from strong domestic demand and hold up relatively well under trade tensions.

Sectors

Total
Sectors
10
Largest Sector Consumer Discretionary 22.15% Was (30-Nov-2019) 20.23%
Other View complete Sector Diversification

Monthly Data as of 31-Dec-2019

Indicative Benchmark: MSCI All Country Asia ex Japan Index (unhedged)

Top Contributor^

Industrials & Business Services
Net Contribution 0.41%
Sector
-0.06%
Selection 0.47%

Top Detractor^

Consumer Staples
Net Contribution -0.44%
Sector
-0.30%
Selection
-0.14%

^Relative

Quarterly Data as of 31-Dec-2019

Largest Overweight

Consumer Discretionary
By7.20%
Fund 22.15%
Indicative Benchmark 14.95%

Largest Underweight

Information Technology
By-4.58%
Fund 13.91%
Indicative Benchmark 18.49%

Monthly Data as of 31-Dec-2019

30-Nov-2019 - Eric C. Moffett, Portfolio Manager,
We took the opportunity to add to our existing high-conviction holdings in November including a Chinese ecommerce firm and a licensee of fast food-chain brands, which will likely continue to grow despite the ongoing trade war. The move increased our exposure to consumer discretionary, one of our largest sector positions in absolute terms. We added to our exposure in information technology, our biggest relative underweight, as we increased our positions in shares that will likely benefit from memory chip prices potentially hitting bottom.

Countries

Total
Countries
9
Largest Country China 42.19% Was (30-Nov-2019) 44.17%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2019

Indicative Benchmark: MSCI All Country Asia ex Japan Index (unhedged)

Top Contributor^

China
Net Contribution 0.66%
Country
0.05%
Selection 0.62%

Top Detractor^

Hong Kong
Net Contribution -0.40%
Country
0.04%
Selection
-0.44%

^Relative

Quarterly Data as of 31-Dec-2019

Largest Overweight

Philippines
By2.95%
Fund 4.06%
Indicative Benchmark 1.11%

Largest Underweight

Taiwan
By-5.53%
Fund 8.23%
Indicative Benchmark 13.76%

Monthly Data as of 31-Dec-2019

30-Nov-2019 - Eric C. Moffett, Portfolio Manager,
In India, we turned less overweight as we locked in some gains in a few quality stocks we owned following their substantial year-to-date share price advances. These include an asset management company, a personal care products company, and a paint manufacturer. We have yet to see a much awaited recovery in the capital expenditure cycle in India and in recent months concerns have risen over a perceived bubble in consumer stocks. In China, our biggest country position, we increased our allocation to an ecommerce firm that we believe will benefit from its secondary listing. This made us more overweight China.

Team (As of 06-Jan-2020)

Eric C. Moffett

Eric Moffett is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited. He is the portfolio manager for the firm's Asia Opportunities equity strategy and chairman of the strategy's Investment Advisory Committee. 

Mr. Moffett has 19 years of investment experience, 12 of which have been with T. Rowe Price. Prior to joining the firm in 2007, Mr. Moffett was an analyst with Fayez Sarofim & Company, where he covered the household products, communications equipment and lodging/leisure industries. Mr. Moffett also was employed as an associate at Audax Group and as a management consultant with Bain & Company.

Mr. Moffett earned an A.B., magna cum laude, in economics from Princeton University and an M.B.A. from Harvard Business School.

  • Fund manager
    since
    2014
  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    19
Nick Beecroft

Nicholas Beecroft is a portfolio specialist in the Equity Division at T. Rowe Price, representing the firm's global equity strategies. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Beecroft has 18 years of investment experience, 14 of which have been with T. Rowe Price. He joined the firm in London in 2005 and spent many years working with our emerging markets equity team. Mr. Beecroft has been based in Hong Kong since 2011. Prior to joining T. Rowe Price, he was an investment analyst at Mercer Investment Consulting.

Mr. Beecroft earned a B.A, with honours, in contemporary European studies from the University of Southampton. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    18

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount Minimum Subsequent Investment Minimum Redemption Amount Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $15,000 $100 $100 5.00% 160 basis points 2.07%
Class I $2,500,000 $100,000 $0 0.00% 75 basis points 1.10%
Class Q $15,000 $100 $100 0.00% 75 basis points 1.17%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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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