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T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

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Continental European Equity Fund

Style-agnostic, quality-driven European equity investment.

ISIN LU0285832068 WKN A0MNMY

3YR Return Annualised
(View Total Returns)

Total Assets


1YR Return
(View Total Returns)

Manager Tenure


Information Ratio
(5 Years)

Tracking Error
(5 Years)


Inception Date 26-Feb-2007

Performance figures calculated in EUR

31-May-2021 - Tobias Mueller, Portfolio Manager ,
The development of effective vaccines and the gradual reopening of economies offer the hope of a recovery from deep recession. However, in these uncertain times one should be prepared for market dislocations triggered by events. Opportunities may emerge to buy high-quality companies that have lagged in the recent market rotation but which have become stronger due to the coronavirus crisis, and to sell those that are likely to have been fundamentally weakened.
Tobias Mueller, CFA
Tobias Mueller, CFA, Portfolio Manager

Tobias Mueller is a regional portfolio manager for the European Select Strategy, effective October 2018, and for the Europe Equity and Europe ex-UK Equity Strategies, effective October 2020. He is a vice president of T. Rowe Price International Ltd.

Click for Manager Outlook


Manager's Outlook

The coronavirus pandemic is having a dramatic impact on societies and economies in Europe, triggering far-reaching changes in activity and policy. While economic activity has slowed down sharply as a result, the development of effective vaccines now offers the hope of a recovery from deep recession, beginning later this year.

A recovery will to some extent depend on the evolution of the disease and the efficacy and distribution of any vaccines to treat it. In addition, the level of continuing policy support, the state of corporate and consumer confidence, and the degree of disruption caused by newly agreed post-Brexit trading arrangements will determine the longer-term trajectory of activity.

Massive central bank action and governmental fiscal measures continue to support economies, facilitated by the acceptance that policymakers should use fiscal policy as a tool to engineer an economic recovery. European Union integration has also advanced with the agreement to coordinate policy response, which is a departure from the monetary orthodoxy that dominated the policy response to earlier crises.

The pandemic is serving as a catalyst for change as well, accelerating trends that were emerging before the crisis, particularly the shift from the offline to the online world and the further heightening of awareness around sustainability and green issues.

In these uncertain times, it is important to be prepared for market dislocations trigged by events. Opportunities may emerge to buy companies at attractive valuations that are emerging stronger due to change caused by the coronavirus crisis and to sell those that are likely to be fundamentally weakened. Among these opportunities, in our view, are high-quality companies, which have lagged markedly since the market rotation sparked by the introduction of vaccines.

We believe it is imperative that we continue to implement our investment philosophy and process in a disciplined manner and avoid actions that aim to mitigate short-term pressures. We retain a strong conviction that holdings across the portfolio will continue to prove to be highly successful investments.

Seeking to invest in companies that we believe are "on the right side of change" is core to our investment theses. Although the market has proven to be quite efficient at sorting out the winners and losers in this disruptive period, we still expect to be consistently rewarded through rigorous consistency in our approach.

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 Europe (excluding the UK).

Investment Approach

  • Fundamental research is critical to successfully identify and assess long-term investment opportunities. We look for companies with high returns on capital and capable of providing sustainable earnings across the market cycle.
  • Style agnostic, focus on quality. By avoiding style constraints, we can invest in quality companies and maintain a balanced portfolio through market cycles.
  • Disciplined approach to valuation. We aim to buy businesses at a clear discount to their intrinsic value.
  • Risk management is essential and is assisted by diversification, quantitative analysis, and automatic stabilizers built in to our investment process.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

Portfolio Construction

  • Typically 40-70 stocks
  • Individual position size up to 4.0% relative to the indicative benchmark
  • Sector ranges: typically +/- 10% relative to the indicative benchmark
  • Country ranges: typically +/- 10% relative to the indicative benchmark
  • Expected Tracking Error: typically 3.0% to 6.0%
  • Information Ratio objective: >0.5
  • Cash target range: fully invested, typically less than 5.0%
  • Turnover range: 40%-100%

Performance (Class I)

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % 30.98% 12.24% 10.60% 10.48% 21.26%
Indicative Benchmark % 31.66% 9.56% 9.14% 7.83% N/A
Excess Return % -0.68% 2.68% 1.46% 2.65% N/A

Inception Date 26-Feb-2007

Manager Inception Date 01-Oct-2020

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index Net

Data as of 31-May-2021

Performance figures calculated in EUR

  1 YR 3 YR
5 YR
10 YR
Fund % 42.09% 11.98% 10.70% 10.25%
Indicative Benchmark % 39.32% 8.80% 8.86% 7.60%
Excess Return % 2.77% 3.18% 1.84% 2.65%

Inception Date 26-Feb-2007

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index Net

Data as of 31-Mar-2021

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 11-Jun-2021 Quarter to DateData as of 11-Jun-2021 Year to DateData as of 11-Jun-2021 1 MonthData as of 31-May-2021 3 MonthsData as of 31-May-2021
Fund % 2.07% 6.57% 14.65% 2.30% 10.87%
Indicative Benchmark % 2.76% 7.88% 16.05% 2.71% 11.69%
Excess Return % -0.69% -1.31% -1.40% -0.41% -0.82%

Inception Date 26-Feb-2007

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index Net

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index Net

Performance figures calculated in EUR

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.

Index returns shown with reinvestment of dividends after the deduction of withholding taxes. 

Effective 1 June 2019, 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.

31-May-2021 - Tobias Mueller, Portfolio Manager ,
The FTSE All-World Developed Europe ex UK Index rose for a fourth consecutive month in May, while easing from record highs, on optimism about an economic recovery as the rollout of vaccines quickened and central banks maintained loose monetary policy. At the portfolio level, financials, health care and materials were the worst-performing sectors due to stock selection. FinecoBank Banca Fineco, an Italian lender with exposure to the online banking and wealth management industries, weighed modestly on relative returns amid some profit taking since the shares reached a record level in mid-February. The bank unveiled strong first-quarter results that showed net profit beating consensus, increased revenue and continuing growth in assets. Conversely, information technology (IT) and industrials and business services supported relative performance. Amadeus IT, a leading provider of global distribution systems and software solutions for the travel industry, was the best performer in the IT sector. The stock benefitted from growing optimism about a recovery as countries began lifting lockdown restrictions and paving the way for a resumption of cross-border travel this summer in Europe.


Largest Holding ASML Holding 4.36% Was (31-Dec-2020) 3.78%
Other View Full Holdings Quarterly data as of  31-Mar-2021
Top 10 Holdings 28.60% View Top 10 Holdings Monthly data as of  31-May-2021

Largest Top Contributor^

ASML Holding
By 1.17%
% of fund 4.35%

Largest Top Detractor^

By -0.02%
% of fund 2.15%


Quarterly Data as of 31-Mar-2021

Top Purchase

Airbus (N)
Was (31-Dec-2020) 0%

Top Sale

Novartis (E)
Was (31-Dec-2020) 3.14%

Quarterly Data as of 31-Mar-2021

31-Mar-2021 - Tobias Mueller, Portfolio Manager ,

Focus on Quality, Cyclicals Amid Volatile Markets

The first quarter of 2021 was volatile, largely driven by the market's shifting perception of the impact and recovery path from the coronavirus pandemic. We continued to see a market rotation away from companies with growth and momentum factor characteristics into more value-oriented, lower-quality names.

We identified four key themes (energy transition, sustainability, offline to online, and biologics) where we found numerous stocks on what we believe is the right side of change. We also bought stocks that we thought were idiosyncratic opportunities where change was more internally driven. The recent underperformance of quality created a window for us to add names on weakness and build up existing positions. We also raised our exposure to cyclical parts of the index where we still see upside, such as aerospace.

  • We increased our overweight in industrials and business services; we added Airbus and exited RELX.
  • We raised an overweight in financials, adding ING.
  • We reduced our position in materials to a modest overweight, adding Akzo Nobel and Symrise, while exiting Air Liquide, Acerinox, and Corbion.
  • We moved from a modest overweight to a modest underweight in health care; we added Coloplast, and we exited Grifols and Novartis.
  • We have a zero weight in energy after exiting Koninklijke Vopak.

Industrials and Business Services

We increased our overweight in the cyclical industrials and business services sector, which has become our largest absolute and relative allocation. We added Airbus, a global aerospace and defense company, and Fluidra, a Spain-based builder of swimming pools and provider of pool equipment, which is gaining market share in North America after a transformational merger with rival Zodiac almost three years ago. �

We also trimmed several positions that performed well, recycling some funds into new opportunities in the materials and consumer discretionary sectors. The reductions included Assa Abloy, a global leader in security lock products and solutions that we added to the portfolio late last year; Epiroc, a leading provider of products, solutions, and services to the global mining and infrastructure markets; and Norma, a specialist in engineering joining technology.

Our largest industry exposures in relative terms are to machinery and aerospace and defense. In the former, our largest investments are Valmet, a Finland-based provider of services and equipment to the paper, board, and pulp industry, and Epiroc. In the latter industry, Airbus is our main holding.

We invested in Airbus because we believe that the company can emerge from the coronavirus crisis in a stronger competitive position, with exposure to a structural growth end market given the demand to fly. A cost-reduction program last year freed up resources to boost aircraft production, already at strong levels, over the medium term. The company is also dominant in the market for narrow-body aircraft, which are expected to lead the industry out of the recent slump.We exited RELX, the leading publisher of science journals and a provider of risk assessments on transactions with retail customers, to recycle the funds into UK-based Ascential, a company in the communication services sector in which we have higher conviction. Ascential, a B2B media business specializing in exhibitions, festivals, and information services for retailers, will, in our view, emerge stronger from the coronavirus as it steadily shifts the portfolio of its businesses to higher-growth brands and continues with its plan to become fully digitized.


We raised our overweight in financials, adding ING, a global Dutch bank, as we sought to add a cyclical tilt to the portfolio.

With this move, we are now modestly overweight banks, where our largest bets are Erste Group Bank, one of the largest lenders in Austria and Central Europe, and Bawag, the fourth-largest bank in Austria. We increased our overweight exposure to insurance, dominated by our position in Zurich Insurance, a global insurer based in Switzerland, and we raised our overweight in capital markets, where our largest holding is Julius Baer, a global private bank based in Switzerland.

  • ING has shown great resilience since the market correction in early 2020. The capital position is strong, which sets it apart from most European Union banks. Its commitment to technological development and innovation supports revenue growth and shields it from market disruption. If the digital bank in Germany�is successful, the model could be replicated elsewhere, which, we believe, should boost growth. The new chief executive officer is also focusing on cost discipline.


We made numerous adjustments to our holdings in the materials sector, reducing our allocation to a modest overweight position.

We exited France-based Air Liquide, one of the largest industrial gas companies internationally, and Acerinox, a global stainless-steel producer, after strong performance. We also sold our holding in Corbion, a Dutch biobased ingredients company operating in the food and biochemical sectors, where the thesis has played out. We added Akzo Nobel, a global company specializing in decorative paints and industrial performance coatings, now one of our largest holdings in the sector. We also initiated a position in Germany-based Symrise, a supplier of flavorings and fragrances to food, beverage, cosmetic, and personal care producers.

Our biggest position in the sector is Koninklijke DSM, a leading vitamin maker and performance materials business. Our largest industry exposure is to containers and packaging, where we own Verallia, Europe's biggest maker of glass containers.

  • Akzo Nobel's earnings should grow, we believe, as an economic recovery takes hold. The company is asset light, has good pricing power, and generates strong cash flow. Management is halfway through a turnaround and is beginning to deliver stronger operational performance. It has also started a capital return program.
  • Symrise's management has diversified the business to exploit new growth areas like premium pet food and care, probiotics, and aquaculture. These efforts should allow the company to sustain strong organic growth over the medium term.
  • We exited Corbion, whose stock rerated after a strong rally since March last year. However, in our view, the earnings potential of polylactic acid production, an ingredient for making biodegradable plastic that has become a strong focus of environmental, social, and governance-related interest, is fully factored into valuations.

Health Care

We adjusted our holdings in the health care sector, moving from a modest overweight to a modest underweight exposure. We added Danish company Coloplast, a global leader in the chronic care medical products industry, and exited Grifols, a Spain-based company that collects blood plasma and manufactures biopharmaceuticals, and Novartis, a Switzerland-based manufacturer of health care and nutritional products.

  • Coloplast has excellent management, a differentiated research and development portfolio, and, in our view, the industry's most advanced and effective distribution channel, giving it a competitive advantage over rivals. The market also underappreciates the potential for gaining market share in the U.S. over the longer term.
  • We sold our holding in Grifols because the plasma business is being affected by the coronavirus pandemic, which� limit its could growth prospects. We exited Novartis, which has continued to suffer from negative momentum on topline estimates as both Novartis-specific regulatory and launch execution�issues�have been exacerbated by the pandemic.


We moved to a zero weight in energy, exiting our only holding, Koninklijke Vopak, the world's largest tank terminal operator and a specialist in the storage and handling of liquid and gaseous chemicals. The sector faces structural challenges as the world transitions to cleaner forms of energy; many of the companies in the sector are on the wrong side of change, in our view, as they are overly wedded to fossil fuel extraction.


Largest Sector Industrials & Business Services 21.12% Was (30-Apr-2021) 21.07%
Other View complete Sector Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index

Top Contributor^

Information Technology
Net Contribution 0.58%
Selection 0.62%

Top Detractor^

Consumer Discretionary
Net Contribution -0.90%


Quarterly Data as of 31-Mar-2021

Largest Overweight

Industrials & Business Services
Fund 21.12%
Indicative Benchmark 16.57%

Largest Underweight

Consumer Staples
Fund 5.29%
Indicative Benchmark 10.30%

Monthly Data as of 31-May-2021

31-May-2021 - Tobias Mueller, Portfolio Manager ,
We reduced our exposure to some cyclical stocks that had performed well within industrials and financials and reinvested the proceeds in high-conviction holdings. As part of this process we also reconfigured our exposure to financials, moving to a modest overweight allocation. We exited Munich Re, a global reinsurer, recycling the funds into a financial holding company and a Swiss insurer that we believe have better longer-term business models. We raised our overweight exposure to consumer discretionary, adding to our holding in an online fashion retailer that is increasing its customer base.


Largest Country Germany 17.73% Was (30-Apr-2021) 19.61%
Other View complete Country Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index

Top Contributor^

Net Contribution 0.47%
Selection 0.58%

Top Detractor^

Net Contribution -0.94%


Quarterly Data as of 31-Mar-2021

Largest Overweight

Fund 10.05%
Indicative Benchmark 5.10%

Largest Underweight

Fund 13.19%
Indicative Benchmark 22.44%

Monthly Data as of 31-May-2021

30-Sep-2019 - Dean Tenerelli, Portfolio Manager ,
We deepened our underweight allocation in consumer staples, the largest in the portfolio, by selling Essity Aktiebolag, a global hygiene products company, taking profits after a strong run. In our view, the margin-improvement thesis has largely played out and is factored into the share price. Raw material prices have also started to decline, and the company could find it more challenging to maintain price increases. Consequently, the shares may struggle to rise much further. In contrast, we increased our overweight exposure to industrial and business services, health care and real estate.

Team (As of 10-Jun-2021)

Tobias Mueller, CFA

Tobias Mueller is a regional portfolio manager for the European Select Strategy, effective October 2018, and for the Europe Equity and Europe ex-UK Equity Strategies, effective October 2020. He is a vice president of T. Rowe Price International Ltd.

Tobias’s investment experience began in 2006, and he has been with T. Rowe Price since 2011, beginning in the medical technology and exchange sectors as a research analyst in the Equity Division. Prior to this, Tobias completed an internship at the firm in 2010 and was employed by Lehman Brothers in the Principal Finance Group in London, where he focused on distressed fixed income assets.

Tobias earned an M.B.A. from the University of Chicago, Booth School of Business and is a graduate of business administration from the University of Applied Sciences in Munich, Germany. He also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
  • Years at
    T. Rowe Price
  • Years investment
Andrew Clifton

Andrew Clifton is a portfolio specialist in the Equity Division at T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Mr. Clifton has over 30 years of investment experience, nine of which have been at T. Rowe Price. Prior to joining the firm in 2010, he was an executive director at UBS Global Asset Management. Prior to that, he was a vice president at Merrill Lynch.

Mr. Clifton earned a B.Sc. in economics from the London School of Economics and an M.Sc. in econometrics from the University of Southampton.

  • Years at
    T. Rowe Price
  • Years investment

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (EUR) Minimum Subsequent Investment (EUR) Minimum Redemption Amount (EUR) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class I €2,500,000 €100,000 €0 0.00% 65 basis points 0.75%
Class Q €1,000 €100 €100 0.00% 65 basis points 0.82%

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