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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.

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European Equity Fund

Style agnostic, focus on quality to maintain a balanced portfolio.

ISIN LU0285830955 WKN A0M1XN

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 02-May-2007

Performance figures calculated in EUR

Other Literature

31-Oct-2020 - Tobias Mueller, Portfolio Manager ,
The path of economic recovery from here remains unclear, not least due to the uncertainties around the second wave of coronavirus infections and the timing and efficacy of any vaccines. The pandemic continues to act as a change catalyst, accelerating trends that were emerging before the crisis. We therefore need monitor and assess what will be stronger on the other side. However, alongside this elevated importance of change, quality and insight remain paramount.
Tobias Mueller, CFA
Tobias Mueller, CFA, Portfolio Manager

Tobias Mueller is the portfolio manager for the European Select Strategy, effective October 2018. Previously, he covered the technology, medical technology and exchange sectors as a research analyst in the Equity Division. Mr. Mueller is a vice president of T. Rowe Price International Ltd.

Click for Manager Outlook


Manager's Outlook

Tobias Mueller, the portfolio manager for the European Select Equity Strategy, has completed most of the intended changes to the European Equity and Continental European Equity strategies and is on course to take the helm from Dean Tenerelli, the previous portfolio manager, on October 1.

The COVID-19 pandemic is having dramatic consequences for Europe. For the first time, European leaders agreed to coordinate their policy response, setting up a EUR�750 billion recovery plan. We believe this is a is a big step forward for European Union integration and coordination and a clear break from the monetary orthodoxy that dominated the policy response to earlier crises.

Alongside the very supportive monetary actions of the European Central Bank, it is now accepted that national and supra-national policy makers should use fiscal policy as a tool to engineer an economic recovery. In addition, a meaningful component of the expenditure is targeted to be on policies supporting the "green transition" to a lower carbon economy.

The pandemic has also had other dramatic consequences that we are addressing in our European Equity strategies.

On the economic front, the path of recovery from here remains unclear, not least due to the uncertainties around the risk of a second wave of coronavirus infections and the timing and efficacy of any vaccines. But our perceptions of fundamentals, including policy developments, and what is being discounted by markets are encouraging us to increase our cyclical exposure for the medium term as we look for those higher-quality opportunities where we have deep insights. For example, within European Equity we have initiated or increased positions within the consumer discretionary, industrials and business services and IT sectors that implement this objective.

The pandemic is also serving as a catalyst for change, accelerating trends that were emerging before the crisis, particularly the shift from the off- to the online world and the further heightening of awareness around sustainability and green issues. Being "on the right side of change" is core to the investment theses for most of our investments and although the market has proven to be quite efficient at sorting through the winners and losers of the pandemic, we still expect to be consistently rewarded through rigorous consistency in this approach.

We will be looking for dislocations and opportunities because the outlook for markets and the economy remains highly uncertain. Market setbacks should present opportunities to buy companies at attractive valuations that are emerging stronger as a result of change triggered by the coronavirus crisis and to sell those that are likely to be fundamentally weakened by it.

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 European companies.

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 into our investment process.

Portfolio Construction

  • Typically 50-80 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 A)

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % -5.81% 1.05% 0.90% 6.76% 8.27%
Indicative Benchmark % -13.13% -2.67% 0.55% 5.06% 6.98%
Excess Return % 7.32% 3.72% 0.35% 1.70% 1.29%

Inception Date 02-May-2007

Manager Inception Date 06-May-2009

Indicative Benchmark: MSCI Europe Index Net

Data as of  31-Oct-2020

Performance figures calculated in EUR

  1 YR 3 YR
5 YR
10 YR
Fund % 1.10% 3.49% 3.27% 7.59%
Indicative Benchmark % -7.76% -0.34% 3.21% 5.86%
Excess Return % 8.86% 3.83% 0.06% 1.73%

Inception Date 02-May-2007

Indicative Benchmark: MSCI Europe Index Net

Data as of  30-Sep-2020

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 20-Nov-2020 Quarter to DateData as of 20-Nov-2020 Year to DateData as of 20-Nov-2020 1 MonthData as of 31-Oct-2020 3 MonthsData as of 31-Oct-2020
Fund % 10.41% 4.41% -0.45% -5.43% -2.93%
Indicative Benchmark % 13.95% 8.24% -5.56% -5.01% -3.59%
Excess Return % -3.54% -3.83% 5.11% -0.42% 0.66%

Inception Date 02-May-2007

Indicative Benchmark: MSCI Europe Index Net

Indicative Benchmark: MSCI Europe 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 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. 

31-Oct-2020 - Tobias Mueller, Portfolio Manager ,
The MSCI Europe Index fell the most since the March swoon, as investors worried that lockdowns aiming to control the coronavirus’ spread could push the eurozone economy into a double-dip recession. Political uncertainty in the U.S. also weighed on sentiment. The top sector contributors to relative performance were health care, materials and financials, due to stock picking. On the negative side, our choice of securities and consumer discretionary and IT dragged on relative returns. Our off-benchmark holding in Abcam, a biotech company engaged in producing and marketing research grade antibodies, performed best in health care. The shares surged after the company said it would seek a U.S. listing on the Nasdaq exchange as part of its long-term growth strategy. Conversely, Trainline, the UK’s leading online rail and coach booking platform was the worst performer of our consumer discretionary investments. The shares fell as tightening restrictions to curb the spread of the novel coronavirus depressed travel, pointing to a sharp decline in ticket sales and continuing losses. We believe the company will emerge from the crisis as the dominant platform for bookings and ticket sales as the move digital tickets accelerates.


Largest Holding Roche Holding 3.55% Was (30-Jun-2020) 3.67%
Other View Full Holdings Quarterly data as of 30-Sep-2020
Top 10 Holdings 24.03% View Top 10 Holdings Monthly data as of 31-Oct-2020

Largest Top Contributor^

By 0.76%
% of fund 2.73%

Largest Top Detractor^

Roche Holding
By -1.17%
% of fund 3.53%


Quarterly Data as of 30-Sep-2020

Top Purchase

Sanofi (N)
Was (30-Jun-2020) 0%

Top Sale

Nestle (E)
Was (30-Jun-2020) 4.59%

Quarterly Data as of 30-Sep-2020

31-Dec-2018 - Dean Tenerelli, Portfolio Manager ,

Attractively Valued Stocks Emerged as Market Retrenched

Attractive opportunities have emerged in the equity market retrenchment at the end of 2018. These conditions suit our investment approach as they allow us to buy strong high-quality businesses and to diversify the portfolio. We increased our positions most in defensive sectors, such as utilities and real estate, and reduced them in the more cyclical sectors. However, the decline in cyclicals did not deter us from assessing high-quality opportunities with durable earnings that emerged there. On balance, we are tending to find more attractive opportunities in companies that have a more defensive profile or where we believe the market misunderstands the fundamental outlook and unfairly penalizes the company. At the same time, we continue to seek a relatively balanced portfolio in terms of exposures to possible economic scenarios, so that our relative performance is not dependent on a particular "macro" environment.

We altered our positioning by:

  • Raising our exposure to utilities, now our largest overweight, initiating in Iberdrola
  • Moving to an overweight in real estate, adding Great Portland Estates
  • Reducing our underweight in materials, investing in Koningklijke DSM
  • Slimming our overweight in industrials and business services

Raised Exposure to Utilities, Now Biggest Overweight

We increased our exposure to utilities, which is now our biggest overweight. We are overweight in the gas and multi-utilities industries, where we hold Italian names Italgas, a natural gas distribution company, and Hera, a public utility company. We also hold Red Electrica, a partly state-owned and public limited Spanish corporation that operates Spain's national electricity grid.

  • We initiated an investment in Iberdrola, a Spain-based integrated utility company, taking advantage of weakness in the share price, which is driven by regulatory uncertainty. The company is attractively valued, provides a steady income stream, and should benefit over the longer term from its position in the decarbonized renewables and electricity transmission markets. It also has a potential pipeline of new assets extending beyond 2025.

Moved to Overweight in Real Estate

As we seek to maintain a balanced portfolio to counter the impact of market volatility, we raised our exposure to the real estate sector by adding UK office developer Great Portland Estates (GPOR). Our other investment is in Aedas Homes, a Spanish house builder with a large land bank.

  • We believe GPOR, which operates in central London, is undervalued by the market. The management team has an excellent track record, the balance sheet is strong, and the values of its office assets are being underestimated. We believe there is a high probability that GPOR will return capital to shareholders after a successful disposals program.

Reduced Underweight in Materials

We increased our allocation to materials, a sector that we have not favored largely because we did not like the business models of many companies within it. However, when opportunities to own high-quality companies arise, such as in the current market retrenchment, we are happy to invest in them. To this end, we opened a position in Koningklijke DSM, a leading vitamin maker and performance materials business.

We currently own France-based Air Liquide, a large international industrial gas company; Corbion, a Dutch biobased ingredients company operating in the food and biochemical sectors; and Johnson Matthey, a specialty chemicals company that is also the world's biggest auto catalyst maker.

  • We took advantage of share price weakness to invest in DSM. We believe the business is becoming more stable and focused on growth, thanks to the acquisition-driven transformation program. In our view, improving organic growth, an effective cost and capital efficiency program, and the end of the headwind of falling vitamin E prices should drive a share price recovery and outperformance.

Reduced Overweight in Industrials and Business Services

We reduced our overweight industrials and business services amid signs that the European economy is losing momentum, a less favorable environment for this cyclical sector.

We continued to adjust the composition of our holdings, taking advantage of the market decline to sell companies that have underperformed and invest in high-quality businesses with strong industry positions and durable earnings that are now more realistically valued.

We sold out of CNH Industrial, one of the world's largest capital good companies; Trelleborg, a Sweden-based engineering company that develops polymer sealing solutions and wheel systems; and Wolters Kluwer, a Dutch print and digital publisher, after a strong run.

In terms of industry, our largest weight is still professional services companies. We own Bureau Veritas, a France-based international certification agency, and Experian, the leading global provider of credit information with operations in 17 countries, and we swapped Wolters Kluwer for RELX, the world's leading publisher of science journals and a provider of risk assessments on transactions with retail customers. Electrical equipment and aerospace and defense are also overweights. In the former, our biggest position is Schneider Electric, a global specialist in energy management and automation. In the latter, we also hold Dassault Aviation, another French company.

  • We started investing in RELX because we believe the market underestimates the quality and sustainability of growth at the risk business, which provides one of the leading online identity verification tools. It should benefit from the recent acquisition of the ThreatMetrix, one of the leading electronic devices databases. We also believe the risks around the science publishing business are overdone.
  • We sold our position in CNH Industrial because slowing economic momentum and increasing uncertainty in the agricultural sector about the possible impact of tariffs and trade disruptions could further curb sales growth in the main divisions. We exited Trelleborg as signs of weakening demand and emerging risks in the automotive agricultural and industrials segments could, in our view, weigh further on the share price after a period of underperformance.

Maintained Health Care Overweight; Exited Fresenius

We have retained our overweight allocation to the health care sector amid the market uncertainty, which favors defensive sectors. We sold Fresenius, a provider of health care-related products and services, and sister company Fresenius Medical Care after both companies issued a second surprise profit warning in the space of two months. Neither company now expects net income growth in 2019.

We hold sizable positions in pharmaceuticals, with overweights in two Swiss companies, Roche Holding and Novartis, a manufacturer of health care and nutritional products. We also hold Getinge, an off-benchmark Swedish medical technology company with product areas such as surgery, intensive care, infection control, and patient handling.


Largest Sector Industrials & Business Services 18.16% Was (30-Sep-2020) 19.03%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2020

Indicative Benchmark: MSCI Europe Index

Top Contributor^

Net Contribution 1.03%
Selection 0.89%

Top Detractor^

Health Care
Net Contribution -0.15%


Quarterly Data as of 30-Sep-2020

Largest Overweight

Industrials & Business Services
Fund 18.16%
Indicative Benchmark 14.57%

Largest Underweight

Consumer Staples
Fund 6.43%
Indicative Benchmark 14.74%

Monthly Data as of 31-Oct-2020

31-Oct-2020 - Tobias Mueller, Portfolio Manager ,
Tobias Mueller took over as portfolio manager from Dean Tenerelli at the start of October, having aligned the portfolio with his process and philosophy. There was considerable activity in some sectors, with resulted in some changes to relative positioning. Industrial and business services, consumer discretionary, and real estate are the largest allocations; consumer staples, energy, and financials are the smallest. We now have a greater exposure and are overweight to the IT and consumer discretionary sectors and moved underweight to energy, which we believe faces structural challenges over the medium term.


Largest Country United Kingdom 20.65% Was (30-Sep-2020) 21.38%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2020

Indicative Benchmark: MSCI Europe Index

Top Contributor^

United Kingdom
Net Contribution 1.39%
Selection 1.20%

Top Detractor^

Net Contribution -0.55%


Quarterly Data as of 30-Sep-2020

Largest Overweight

Fund 8.72%
Indicative Benchmark 3.66%

Largest Underweight

Fund 10.72%
Indicative Benchmark 17.23%

Monthly Data as of 31-Oct-2020

30-Sep-2018 - Dean Tenerelli, Portfolio Manager ,
The new position in the aforesaid Belgian bank reduced our underweight allocation to the country. Otherwise, our country weights were little changed. Our country positioning is a function of our bottom-up stock picking.

Team (As of 01-Oct-2020)

Tobias Mueller, CFA

Tobias Mueller is the portfolio manager for the European Select Strategy, effective October 2018. Previously, he covered the technology, medical technology and exchange sectors as a research analyst in the Equity Division. Mr. Mueller is a vice president of T. Rowe Price International Ltd.

Mr. Mueller has 13 years of investment experience, eight of which have been with T. Rowe Price. He completed an internship at the firm in 2010, and prior to joining T. Rowe Price in 2011, he worked at Lehman Brothers in the Principal Finance Group, London, where he focused on distressed fixed income assets.

Mr. Mueller has 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.

  • 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 A €1,000 €100 €100 5.00% 150 basis points 1.62%
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.