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GIPS® Information

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.

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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T. Rowe Price

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SICAV

Global Focused Growth Equity Fund

Concentrating high conviction positions in leading global investment prospects.

ISIN LU0143563046 WKN 541556

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

24.92%
$5.4b

1YR Return
(View Total Returns)

Manager Tenure

50.60%
8yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.55
6.71%

Inception Date 12-Jan-2006

Performance figures calculated in USD

30-Jun-2021 - David J. Eiswert, Portfolio Manager,
Now is the time to distinguish between those companies that will succeed and thrive and those that experienced temporary benefits that will likely not prove durable. This approach often requires imagination, a carefully contrarian mindset, and the ability to distinguish good companies from good stocks. We believe making difficult decisions by adhering to our investment framework with the support of our global research platform ultimately can add value for our clients.
David J. Eiswert, CFA
David J. Eiswert, CFA, Lead Portfolio Manager

David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.

 

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 that have the potential for above average and sustainable rates of earnings growth. The companies may be anywhere in the world, including emerging markets.

Investment Approach

  • Single decision maker provides clear accountability.
  • Identify “best ideas” by assessing companies in a global sector context, using bottom-up approach to create focused, high- conviction portfolio.
  • Global research platform uses fundamental analysis to identify companies with superior and sustainable growth prospects, and improving fundamentals.
  • Macroeconomic and local market factors are integrated in stock selection decisions.
  • Valuation appeal is measured against local market and broad sector opportunity set.
  • Broad range of stocks across all capitalizations, incorporating developed and emerging markets.
  • 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

  • Number of holdings: typically 60-80 stocks
  • Individual positions: Typically 0.5%-5.0%
  • Emerging markets exposure: +/-15% of benchmark
  • Broad sector ranges: +/-15% of benchmark
  • Country ranges: +/-10% of benchmark (U.S.A. is +/-20%)
  • Currency hedging: Currency views incorporated in stock selection
  • Cash target range: Typically less than 5%, Maximum 10%
  • Expected tracking error: 400 to 800 basis points

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 50.60% 24.92% 24.99% 16.21% 19.10%
Indicative Benchmark % 39.26% 14.57% 14.61% 9.90% 11.40%
Excess Return % 11.34% 10.35% 10.38% 6.31% 7.70%

Inception Date 12-Jan-2006

Manager Inception Date 30-Sep-2012

Indicative Benchmark: MSCI All Country World Index Net

Data as of 30-Jun-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 50.60% 24.92% 24.99% 16.21%
Indicative Benchmark % N/A N/A N/A N/A
Excess Return % N/A N/A N/A N/A

Inception Date 12-Jan-2006

Data as of 30-Jun-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 29-Jul-2021 Quarter to DateData as of 29-Jul-2021 Year to DateData as of 29-Jul-2021 1 MonthData as of 30-Jun-2021 3 MonthsData as of 30-Jun-2021
Fund % 1.09% 1.09% 10.46% 1.43% 6.59%
Indicative Benchmark % 1.44% 1.44% 13.92% 1.32% 7.39%
Excess Return % -0.35% -0.35% -3.46% 0.11% -0.80%

Inception Date 12-Jan-2006

Indicative Benchmark: MSCI All Country World 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.

Index returns shown with gross dividends reinvested.

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-Jun-2021 - David J. Eiswert, Portfolio Manager,
Global equities rose in June, although a stronger U.S. dollar versus other major currencies decreased returns for U.S.-based investors. Overall, markets benefited from the continued reopening of economies, falling coronavirus cases despite the spread of the delta variant, and generally positive economic data. Within the portfolio, stock selection within consumer discretionary hurt relative returns the most. China’s dominant online travel agency Trip.com Group fell on concerns about the country’s recovery and revived COVID-19 controls in response to outbreaks in isolated areas. We continue to like Trip.com’s dominant market position and competitive advantages in product supply, technology, and high-quality customer service and believe the company is well positioned for accelerating growth as the pandemic wanes. Conversely, our holdings in communication services helped relative returns. Facebook spiked near the end of the month after the company won the dismissal of two antitrust cases filed by the federal government and a coalition of states after a federal judge threw out the cases. While we expect regulatory scrutiny for large tech companies will persist, we like Facebook due to its world-class advertising monetisation, effectiveness in capturing direct response dollars, and efforts to diversify its business through various innovative means, such as acquisitions like Instagram.

Holdings

Total
Holdings
75
Largest Holding Facebook 4.82% Was (31-Mar-2021) 3.84%
Other View Full Holdings Quarterly data as of  30-Jun-2021
Top 10 Holdings 33.55% View Top 10 Holdings Monthly data as of  30-Jun-2021

Largest Top Contributor^

Facebook
By 0.68%
% of fund 4.80%

Largest Top Detractor^

Sony
By -0.16%
% of fund 1.69%

^Absolute

Quarterly Data as of 30-Jun-2021

Top Purchase

T-Mobile US (N)
2.27%
Was (31-Mar-2021) 0%

Top Sale

Caterpillar (E)
0.00%
Was (31-Mar-2021) 2.17%

Quarterly Data as of 30-Jun-2021

31-Mar-2021 - David J. Eiswert, Portfolio Manager,

We made a number of meaningful shifts in the portfolio over the quarter. With the rollout of highly effective coronavirus vaccines accelerating globally, we are anticipating a return to normalcy on the horizon. However, we acknowledge that this will not be the same "pre-COVID-19 normal" but, rather, a "new normal," which requires us to reimagine where the true growth opportunities and sources of alpha lie. With this mindset, we added a mixture of "COVID-off" names that stand to benefit from the new normal and high-quality companies that have been left behind in the recent value rotation.

Sector-wise, our allocation to information technology continued to decrease dramatically as a result of the aforementioned repositioning of the portfolio. This is a sector that has a large number of "COVID-on" names that have done very well, but that we feel have more limited near-term upside. On the other hand, we added to communication services, consumer discretionary, and industrials and business services, areas with more cyclical traits that have what we feel are solid tailwinds heading into the post-COVID expansion. Within these areas of the market, we also took advantage of the market rotation away from growth to add shares of names that we believe should be long-term winners. Regionally, our exposure to North America increased the most, while our allocations to Japan and Latin America decreased.

Consumer Discretionary

The consumer discretionary sector has become increasingly challenged as market disruption, driven in part by rapid changes in consumer behavior and e-commerce, has led to a more dramatic demarcation between winners and losers. Given the polarized structure of the sector, our focus is on high-quality names that we believe are on the right side of change and that have dominant market positions. We find internet-based retail particularly attractive, and we have bolstered certain positions that have been discounted during the value rotation and that we believe should continue to enjoy favorable fundamentals as we emerge from the pandemic. As we look forward to a post-coronavirus world, we have also added exposure to names that we think are well positioned for improvement as the world returns to a more normal way of life.

  • We added to our position in Amazon.com on weakness. The stock has pulled back in recent weeks in light of its incredibly strong gains in 2020 and amid investor concerns about the company's ability to sustain similar momentum as the pandemic wanes. However, despite an apparent lack of near-term catalysts for the stock, we are encouraged by the scale and strength of the company's retail and cloud businesses. We believe that accelerating Prime membership trends and significant logistics investment undertaken during the pandemic should lead to sustained share gains.
  • We initiated a stake in online travel company Expedia. In our view, the market is undervaluing Expedia's in-house vacation rental business, Vrbo, which has been resilient during the coronavirus pandemic and stands to benefit further from an eventual normalization in travel. We believe that Expedia's ongoing overhaul of its cost structure should boost profitability on the other side of the pandemic.

Financials

We continue to have a modest overweight position to the sector and generally prefer nontraditional financials like security exchanges, which have low correlation to the rest of the portfolio and help provide support with volatility, and online brokerages, which don't have the credit risk of banks. Traditional developed market banks have faced a difficult environment as leading central banks have ramped up quantitative easing measures to help counteract the negative economic impact of the COVID-19 pandemic. However, as expectations grow for a post-pandemic economic expansion and higher interest rates, we have purposefully added exposure to U.S. banks. We continue to like select emerging market banks that we think are undervalued and underappreciated.

  • We eliminated our position in global investment bank JPMorgan Chase. The stock has been a strong performer in recent months, and with limited upside remaining, in our view, we chose to exit our position and reallocate funds to names where we have stronger conviction.
  • We trimmed our position in Morgan Stanley on strength. We continue to think Morgan Stanley has resilient underlying business segments in wealth management and investment management.
  • We initiated a position in Bank of America. We think the U.S. bank is extremely well positioned to benefit in a post-pandemic environment where interest rates are rising and consumer and business habits shift back to normal. Additionally, an influx of cash and stimulus built up from the pandemic could fuel consumer and business confidence, leading to increased spending, job and wage improvement, and loan growth. We think the market is severely underestimating the magnitude of improvement that Bank of America could potentially experience in the coming months.

Information Technology

We reduced our technology exposure during the quarter as we continued to trim or eliminate some of the most fairly valued COVID-19 beneficiaries, and we are now slightly underweight the sector. However, we still have high conviction in the technology sector as this is an area where rapid market share shifts mean growth companies are plentiful regardless of the broader macroeconomic environment. The powerful long-run trends that we believe will drive value creation within the technology sector remain and, in some cases, have been accelerated by the pandemic. Aftereffects from the crisis could also result in lasting behavioral changes, with more people working remotely and shopping digitally. As a result, software, internet commerce, and electronic payments are areas of focus for our sector exposure, but we also remain positioned to benefit from the growing technology consumption in emerging markets, particularly in Asia. We also have exposure to semiconductor stocks that we anticipate should benefit from content growth in automotive and industrial end markets as well as investment in data centers and artificial intelligence.

  • We eliminated our stake in Qualcomm as part of our efforts to reduce our exposure to the semiconductor space late in the industry's cycle. In our view, most of the drivers of our investment thesis have played out, making further outperformance more difficult from current levels.
  • We added to our position in Zoom Video on weakness as the stock pulled back amid anticipation of a waning pandemic and decelerating demand for videoconferencing. However, despite the market's reaction, we think demand for the reliable videoconferencing technology that Zoom Video offers won't dissipate with the pandemic, and we have conviction in the company's growth potential.

Health Care

Health care remains a fertile area for growth potential and accelerating technological discovery despite fears of potential regulatory headwinds and drug pricing reform. We particularly like medical diagnostic and testing companies that have been discounted amid the COVID-19 vaccine rollout on fears of reduced demand, as we believe their growth could prove more durable than many expect. We also own select biopharma names that offer relatively unique platforms and robust drug pipelines. In general, our exposure within health care is idiosyncratic and targeted at companies that are facing unique innovation- or product-driven tailwinds.

  • We initiated a position in pharmaceuticals company Eli Lilly. The company has one of the most comprehensive diabetes portfolios through its alliance with Boehringer Ingelheim, including several leading insulin brands, a market-leading GLP-1 analog, and several oral anti-diabetic agents. Eli Lilly also has an emerging cancer treatment pipeline that we think looks promising.

Sectors

Total
Sectors
9
Largest Sector Financials 18.21% Was (31-May-2021) 17.98%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: MSCI All Country World Index

Top Contributor^

Communication Services
Net Contribution 0.80%
Sector
0.01%
Selection 0.79%

Top Detractor^

Consumer Discretionary
Net Contribution -1.43%
Sector
-0.08%
Selection
-1.35%

^Relative

Quarterly Data as of 30-Jun-2021

Largest Overweight

Industrials & Business Services
By5.01%
Fund 14.87%
Indicative Benchmark 9.86%

Largest Underweight

Information Technology
By-4.79%
Fund 17.11%
Indicative Benchmark 21.90%

Monthly Data as of 30-Jun-2021

30-Jun-2021 - David J. Eiswert, Portfolio Manager,
Industrials and business services represents one of our largest sector overweight positions. Cyclical areas of the market, like industrials, should experience accelerating fundamentals as economic conditions improve and the world reopens, and we believe our exposure within the sector is poised to capture these tailwinds. However, we acknowledge that multiples in certain pockets of the sector have risen along with expectations for economic improvement and large-scale infrastructure reform. We used the recent run in these stocks as an opportunity to reallocate funds into areas where we believe valuations are supportive of further gains.

Countries

Total
Countries
17
Largest Country United States 55.93% Was (31-May-2021) 55.43%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: MSCI All Country World Index

Largest Overweight

United Kingdom
By5.75%
Fund 9.45%
Indicative Benchmark 3.69%

Largest Underweight

Switzerland
By-2.57%
Fund 0.00%
Indicative Benchmark 2.57%

Monthly Data as of 30-Jun-2021

Currency

Total
Currencies
12
Largest Currency 66.23% Was (31-May-2021) 65.09%
Other View completeCurrency Diversification

Monthly Data as of  30-Jun-2021

Indicative Benchmark : MSCI All Country World Index

Largest Overweight

U.S. dollar
By 6.47%
Fund 66.23%
Indicative Benchmark 59.77%

Largest Underweight

Hong Kong dollar
By -3.19%
Fund 0.97%
Indicative Benchmark 4.16%

Monthly Data as of  30-Jun-2021

Team (As of 27-Jul-2021)

David J. Eiswert, CFA

David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.

Mr. Eiswert has 19 years of investment experience, 16 of which have been with T. Rowe Price. Prior to joining the firm in 2003, he was an analyst at Mellon Growth Advisors and Fidelity Management and Research. He also worked as a consultant in the communications industry.

Mr. Eiswert earned a B.A., summa cum laude, in economics and political science from St. Mary's College of Maryland and an M.A. in economics from the University of Maryland, College Park. He also has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2012
  • Years at
    T. Rowe Price
    18
  • Years investment
    experience
    21
Josh Nelson

Josh Nelson is the associate head of U.S. Equity. In addition, he is a co-portfolio manager of the US Structured Research Equity Strategy, cochairman of the US Structured Research Equity Strategy's Investment Advisory Committee, and a member of the Research Governance Oversight Committee. He also serves on the Equity Steering Committee. Josh is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.

Josh’s investment experience began in 2003, and he has been with T. Rowe Price since 2007, beginning in the U.S. Equity Division as an investment analyst covering business services and education. Subsequently, he became an associate portfolio manager of the Global Focused Growth Equity Strategy from 2010 to 2018. From 2018 to 2021, he was the director of Research for North America in the U.S. Equity Division. Prior to T. Rowe Price, Josh was employed by Citigroup as an investment banking analyst.   

Josh earned a B.S., with honors, in industrial systems and engineering from the University of Florida and an M.B.A., with honors, in finance from the University of Pennsylvania, The Wharton School.

  • Fund manager
    since
    2009
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    19
Samuel Ruiz

Samuel Ruiz is a portfolio specialist in the Equity Division. He is a vice president of T. Rowe Price Australia Ltd.

Sam’s investment experience began in 2008, and he has been with T. Rowe Price since 2020, beginning in the Equity Division working on the Global and Australia Equity Strategies. Prior to this, Sam was employed by Macquarie Investment Management in the area of strategy in the Equities Division.

Sam earned a bachelor of applied finance degree from the University of South Australia.

  • Years at
    T. Rowe Price
    1
  • Years investment
    experience
    13
Laurence Taylor

Laurence Taylor is a portfolio specialist in the Equity Division. He represents the firm's global equity strategies to institutional clients, consultants, and prospects. Laurence is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Laurence’s investment experience began in 1999, and he has been with T. Rowe Price since 2008, beginning in the Investment Specialist Group. Prior to this, Laurence was employed by AXA Rosenberg as a quantitative portfolio manager, with responsibility for global and European equity portfolios, and began his career at AonHewitt Associates in the UK investment practice. At AonHewitt, Laurence provided investment advice to European institutions as a client-facing consultant before specializing in the research and selection of global and regional equity managers in the manager research team.

Laurence earned a B.A., with honors, from Greenwich University. He also has earned the Chartered Financial Analyst® designation.

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

  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    21

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (USD) Minimum Subsequent Investment (USD) Minimum Redemption Amount (USD) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A 1000 100 $100 5.00% 160 basis points 1.77%
Class I 2500000 100000 $0 N/A 75 basis points 0.85%
Class Q 1000 100 $100 N/A 75 basis points 0.92%

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