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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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European Equity Fund

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

ISIN LU0285831334 WKN A0MNMX

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 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.
  • 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 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 I)

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % 28.17% 10.23% 7.86% 9.15% 19.53%
Indicative Benchmark % 29.67% 7.25% 7.61% 7.24% 25.44%
Excess Return % -1.50% 2.98% 0.25% 1.91% -5.91%

Inception Date 26-Feb-2007

Manager Inception Date 01-Oct-2020

Indicative Benchmark: MSCI Europe Index Net

Data as of 31-May-2021

Performance figures calculated in EUR

  1 YR 3 YR
5 YR
10 YR
Fund % 37.72% 10.50% 8.03% 8.98%
Indicative Benchmark % 35.32% 7.26% 7.52% 7.08%
Excess Return % 2.40% 3.24% 0.51% 1.90%

Inception Date 26-Feb-2007

Indicative Benchmark: MSCI Europe 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 % 1.98% 6.46% 14.32% 1.81% 9.96%
Indicative Benchmark % 2.61% 7.42% 16.39% 2.56% 11.45%
Excess Return % -0.63% -0.96% -2.07% -0.75% -1.49%

Inception Date 26-Feb-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-May-2021 - Tobias Mueller, Portfolio Manager ,
The MSCI Europe 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, stock picking in consumer discretionary, health care and materials weighed the most on relative performance. On the other hand, our choice of securities in information technology (IT) and industrials and business services were supportive. The main drag in consumer discretionary both in absolute and relative terms was Trainline, the UK’s leading online rail and coach booking platform. The stock fell when the government announced it was setting up a new supervisory body to run the national railway that would set up a new website and booking app, which could erode Trainline’s large market share. On the positive side, 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 3.79% Was (31-Dec-2020) 3.25%
Other View Full Holdings Quarterly data as of  31-Mar-2021
Top 10 Holdings 23.52% View Top 10 Holdings Monthly data as of  31-May-2021

Largest Top Contributor^

ASML Holding
By 1.12%
% of fund 3.78%

Largest Top Detractor^

By -0.22%
% of fund 1.97%


Quarterly Data as of 31-Mar-2021

Top Purchase

Airbus (N)
Was (31-Dec-2020) 0%

Top Sale

Was (31-Dec-2020) 1.83%

Quarterly Data as of 31-Mar-2021

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 21.88% Was (30-Apr-2021) 22.04%
Other View complete Sector Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: MSCI Europe Index

Top Contributor^

Industrials & Business Services
Net Contribution 0.92%
Selection 0.78%

Top Detractor^

Net Contribution -0.92%


Quarterly Data as of 31-Mar-2021

Largest Overweight

Industrials & Business Services
Fund 21.88%
Indicative Benchmark 14.78%

Largest Underweight

Consumer Staples
Fund 4.24%
Indicative Benchmark 12.80%

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 and some new investments for idiosyncratic reasons. As part of this process we also reconfigured our exposure to financials, maintaining a modest underweight allocation. We exited Munich Re, a global reinsurer, recycling the funds into an international insurer and a financial holding company that we believe has a better longer-term business model. We raised our overweight exposure to health care, opening a position in an animal health company that we believe can withstand competition from large pharmaceutical companies.


Largest Country United Kingdom 23.77% Was (30-Apr-2021) 22.27%
Other View complete Country Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: MSCI Europe Index

Top Contributor^

Net Contribution 0.41%
Selection 0.22%

Top Detractor^

United Kingdom
Net Contribution -0.99%


Quarterly Data as of 31-Mar-2021

Largest Overweight

Fund 7.14%
Indicative Benchmark 3.97%

Largest Underweight

Fund 10.51%
Indicative Benchmark 18.00%

Monthly Data as of 31-May-2021

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 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 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.