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SICAV

Global Growth Equity Fund

Seeking to select superior stocks from the broadest global equity opportunity set.

ISIN LU0382933116 WKN A0RB2L

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

13.05%
$456.2m

1YR Return
(View Total Returns)

Manager Tenure

5.13%
10yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.69
4.17%

Inception Date 27-Oct-2008

Performance figures calculated in USD

Other Literature

30-Sep-2019 - Scott Berg, Portfolio Manager,
Equity investors are currently facing multi-dimensional challenges. Having said that, we still feel confident about the companies we own in the portfolio in terms of their growth outlooks and valuations over a multiyear view. We are more cautious in the short term and think it is time to be prudent in our positioning; however, we believe equity markets can still move higher and are mindful that there could be a cost to being too defensive too early.
R. Scott Berg
R. Scott Berg, Lead Portfolio Manager

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and 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 of companies 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 large-cap stocks, incorporating developed and emerging markets.

Portfolio Construction

  • Number of holdings: Typically around 130 holdings.
  • Individual positions: Typically 0.3%-3.0%, maximum 5%
  • Emerging markets exposure: +/- 15% of benchmark
  • Broad sector ranges: +/- 10% of benchmark
  • Country ranges: +/- 10% of benchmark (USA is +/- 20%)
  • Currency hedging: Currency views incorporated in stock selection
  • Cash target range: Typically less than 5%
  • Expected tracking error: 300 to 700 basis points

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 5.13% 13.05% 9.53% 10.16% 14.73%
Indicative Benchmark % 1.38% 9.71% 6.65% 8.35% 11.28%
Excess Return % 3.75% 3.34% 2.88% 1.81% 3.45%

Inception Date 27-Oct-2008

Manager Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Data as of  30-Sep-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 5.13% 13.05% 9.53% 10.16%
Indicative Benchmark % 1.38% 9.71% 6.65% 8.35%
Excess Return % 3.75% 3.34% 2.88% 1.81%

Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Data as of  30-Sep-2019

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 18-Oct-2019 Quarter to DateData as of 18-Oct-2019 Year to DateData as of 18-Oct-2019 1 MonthData as of 30-Sep-2019 3 MonthsData as of 30-Sep-2019
Fund % 0.76% 0.76% 20.42% 0.29% -1.17%
Indicative Benchmark % 0.95% 0.95% 17.30% 2.10% -0.03%
Excess Return % -0.19% -0.19% 3.12% -1.81% -1.14%

Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

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.

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

Effective 1 July 2018, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly. 

30-Sep-2019 - Scott Berg, Portfolio Manager,
Global equities rose in September as U.S.-China trade tensions appeared to ease and central banks took measures to stimulate economic growth. At the portfolio level, stock selection in the consumer discretionary sector hurt the most. Shares of China’s dominant e-commerce platform Alibaba Group fell over the month as investors worried that slowing growth in China and rising trade tensions with the U.S. could hurt its business. We have high conviction in Alibaba given its strong position in China’s fast-growing e-commerce market as well as its pace of innovation. On the positive side, stock selection in consumer staples aided relative performance, helped by our position in diversified Indian consumer goods company, Godrej Consumer Products. Its share price spiked with the broader Indian market after the country’s central bank reduced interest rates and the government announced corporate tax rate reductions to boost growth. We think Godrej is a high-quality staples company, which is highly levered to demographic consumption growth in India and other key emerging market regions including Indonesia, South Africa, and Latin America. At the regional level, our holdings in North America were a drag on relative returns. Stock selection in emerging markets boosted relative performance, although our overweight position muted positive results somewhat.

Holdings

Total
Holdings
159
Largest Holding Alphabet Class C 2.85% Was (30-Jun-2019) 3.03%
Other View Full Holdings Quarterly data as of 30-Sep-2019
Top 10 Holdings 17.60% View Top 10 Holdings Monthly data as of 30-Sep-2019

Largest Top Contributor^

Alphabet
By 1.38%
% of fund 2.77%

Largest Top Detractor^

Amazon.com
By -0.79%
% of fund 2.66%

^Absolute

Quarterly Data as of 30-Sep-2019

Top Purchase

Experian (N)
0.98%
Was (30-Jun-2019) 0.00%

Top Sale

Northrop Grumman (E)
0.00%
Was (30-Jun-2019) 0.72%

Quarterly Data as of 30-Sep-2019

30-Jun-2019 - Scott Berg, Portfolio Manager,

As always, our trading activity during the quarter was driven from the bottom up. The portfolio's sector and region allocations are driven primarily by individual stock considerations but are also influenced, to a lesser degree, by an assessment of macroeconomic and geopolitical considerations. Over the quarter, the portfolio's exposure increased to the communication services, consumer staples, and information technology sectors, while exposure decreased in health care and financials. Regionally, our allocation to the Pacific ex-Japan increased, while exposure to North America decreased. Within emerging markets, we continue to favor what we consider the more fertile and demographically advantaged regions, such as China, India, Indonesia, the Philippines, Peru, and Vietnam.

Communication Services

Amid the changing media, entertainment, and communications landscape, certain sector names benefit from strong user engagement and/or subscriber growth. Due to limited opportunities for strong growth in legacy telecommunications companies, our focus is on highly innovative, secular growers within the entertainment and internet services spaces that are on the right side of change.

  • We added to our position in global search leader Alphabet. With its world-class computing infrastructure and elite engineering and data science capabilities, we think Alphabet is well placed to extract value from the economy as the world becomes increasingly digital.
  • We initiated a position in Tencent Music Entertainment, the dominant player in China's online music industry, when a recent pullback offered an attractive entry point. With over 600 million users, monetization opportunities are large from music subscription, selling online music content, user's tipping to music-related live streaming hosts, and payment for online karaoke services. Tencent Holdings is the controlling stakeholder of Tencent Music Entertainment.

Consumer Discretionary

Our holdings in consumer discretionary are diversified across industries and geographies. However, many of our holdings have a strong presence in online retail and/or exposure to emerging markets with attractive demographics.

  • EssilorLuxottica is the newly formed combined entity of two leading eyewear makers into a single, dominant global leader in a secularly advantaged industry. We think the firm is well positioned to take advantage of the move toward more complex eyewear, which should prove to be higher-margin products, as well as increasing penetration into emerging markets. The stock had pulled back in recent months, making valuation more interesting and providing an attractive entry point.
  • Altaba, the investment company left over after the 2016 merger of Yahoo and Verizon, announced in April that it was seeking shareholder approval for liquidation and dissolution. The primary holding of Altaba is a stake in Chinese internet giant Alibaba Group Holding. Given that Altaba's share price is now less attractive relative to the underlying value of the Alibaba holding, we eliminated our holding in Altaba in favor of adding to Alibaba directly.
  • We added to our position in Alibaba Group Holdings, China's dominant e-commerce platform. We continue to have high conviction in Alibaba given its combination of e-commerce dominance and hypergrowth cloud business. Additionally, the benefits from its ownership stake in Ant Financial make it a very strong and durable platform with multiple compelling avenues to value creation.

Health Care

Our holdings are tilted toward drugmakers with strong pipelines, equipment makers with significant technology advantages, and health care providers that should benefit from increasing memberships as well as the ongoing trend of lower health care utilization in the U.S. In addition, we think there is tremendous growth and innovation happening in China with regard to health care and own several high-quality names in the region.

  • Services names have been pressured by increased political rhetoric around health care reform proposals. While the fundamental earnings backdrop for these companies remains robust, the continued and growing sentiment overhang on the group led us to exit our position in WellCare Health Plans and trim our exposure to UnitedHealth Group.
  • As part of upping the quality of the Chinese names we hold, we moved on from health care firm BeiGene, choosing to put more emphasis on the other names in the sector that we believe offer higher-quality returns.

Information Technology

We continue to believe that innovations in artificial intelligence (AI) are not only affecting technology companies, but also reshaping more traditional industries, ones viewed as less susceptible to business model disruption. We remain positioned to benefit from increasing AI adoption and application as well as the ongoing transition toward greater computing mobility, increasing use of the Web, and growing technology consumption in emerging markets. As a result, our holdings are tilted toward payment and cloud software companies.

  • We bought Atlassian, an enterprise software company that provides both on-premises and cloud-based collaboration and workflow software and services. We think Atlassian is a well-managed, secularly advantaged software company with a disruptive business model that has a long and durable growth runway.
  • We initiated a position in Amphenol as a recent stock pullback offered a compelling entry point to this high-quality company. Amphenol is an industrial supplier of sensors, cables, and connectors to a broad diversity of attractive and growing end markets including military, telecommunications, and automotive applications. Decentralized and entrepreneurial business management fosters a competitively advantaged, industry-specific approach to its numerous end markets. Growth is supported by secular tailwinds such as the increasing trend toward connectivity and the growing Internet of Things. Amphenol also has a proven track record of solid capital allocation and successful M&A, which should prove beneficial given the low current cost of capital.
  • While we maintain a favorable long-term view of NVIDIA, transient issues including central processing unit shortages and data center weakness may weigh on the stock in the near term, so we exited our position.

Industrials and Business Services

We are focused on high-quality companies that can benefit from multiyear growth trends and increases in global trade and capital spending. We are attracted to less cyclical, durable earnings growers in industries with attractive growth dynamics and seek to avoid companies with commodity capital expenditures exposure.

  • We eliminated our position in diversified industrials firm Illinois Tool Works. We think the risk/reward has become less favorable and that earnings and the multiple may be pressured by moderating demand due to lower levels of auto builds and industrial activity in China and Europe as well as weakening private nonresidential spend in North America. We directed the proceeds into a new holding in Amphenol.
  • We sold out of our stake in building products supplier Fortune Brands Home & Security. Although the firm's recent earnings were above consensus, we feel that there is limited upside remaining in the stock and are choosing to reallocate funds to opportunities with more attractive potential.

Sectors

Total
Sectors
11
Largest Sector Information Technology 18.23% Was (31-Aug-2019) 17.79%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: MSCI All Country World Index

Top Contributor^

Materials
Net Contribution 0.44%
Sector
0.08%
Selection 0.36%

Top Detractor^

Consumer Discretionary
Net Contribution -1.08%
Sector
-0.01%
Selection
-1.07%

^Relative

Quarterly Data as of 30-Sep-2019

Largest Overweight

Consumer Discretionary
By2.98%
Fund 13.82%
Indicative Benchmark 10.84%

Largest Underweight

Energy
By-3.48%
Fund 1.98%
Indicative Benchmark 5.46%

Monthly Data as of 30-Sep-2019

30-Sep-2019 - Scott Berg, Portfolio Manager,
Our current outlook for the energy sector remains subdued given the global oversupply of oil. While escalating tensions in the Middle East between Saudi Arabia and Iran are another complicating factor, we expect the surge in U.S. shale oil production and productivity will continue to drive oversupply for some time to come. Our focus in the sector is on companies with high-quality balance sheets, low-cost production, and better production growth profiles.

Countries

Total
Countries
29
Largest Country United States 46.07% Was (31-Aug-2019) 47.23%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: MSCI All Country World Index

Largest Overweight

India
By5.84%
Fund 6.85%
Indicative Benchmark 1.02%

Largest Underweight

United States
By-9.56%
Fund 46.07%
Indicative Benchmark 55.63%

Monthly Data as of 30-Sep-2019

Currency

Total
Currencies
22
Largest Currency U.S. dollar 57.20% Was (31-Aug-2019) 59.83%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark : MSCI All Country World Index

Largest Overweight

Indian rupee
By 5.92%
Fund 6.94%
Indicative Benchmark 1.02%

Largest Underweight

Japanese yen
By -5.95%
Fund 1.31%
Indicative Benchmark 7.27%

Monthly Data as of 30-Sep-2019

Team (As of 31-Aug-2019)

R. Scott Berg

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and a vice president of T. Rowe Price Group, Inc.

Mr. Berg has 17 years of investment experience, all of which have been with T. Rowe Price. He joined the firm in 2002 as a research analyst covering the business services sector after serving as a summer intern in 2001. In 2005, he joined the global equity team as an associate portfolio manager and in 2008 launched the Global Growth Equity Strategy. Prior to T. Rowe Price, he was the manager of financial analysis and planning for Mead Consumer and Office Products. Previously, Mr. Berg was also employed by McKinsey & Company as a business analyst and was a core team member on the firm's global growth initiative.

Mr. Berg graduated first in his class from Macquarie University in Australia, with a B.Ec. in actuarial studies and finance. He also holds an M.B.A. from the Stanford Graduate School of Business, where he again graduated at the top of his class. Mr. Berg has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2008
  • Years at
    T. Rowe Price
    17
  • Years investment
    experience
    17
Harishankar Balkrishna

Hari Balkrishna is an associate portfolio manager for the Global Growth Equity Strategy in the Equity Division of T. Rowe Price. Mr. Balkrishna is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Balkrishna has 12 years of investment experience. He completed an internship at T. Rowe Price in 2009. Prior to joining the firm in 2010, he worked at Goldman Sachs, Sydney, Australia, in the financial institutions group of the Investment Banking Division.

Mr. Balkrishna has a bachelor of commerce in finance and accounting (university medal and first-class honours) from the University of New South Wales and also has earned an M.B.A., with distinction, from Harvard Business School.

  • Fund manager
    since
    2015
  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    12
Kurt A.  Umbarger

Kurt Umbarger is the regional head of the Equity Investment Specialist Group of T. Rowe Price. Previously, he was a global equity portfolio specialist in the International Equity Division. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Mr. Umbarger has 26 years of investment experience, all of which have been at T. Rowe Price. He joined the firm in 1992 and has been a portfolio specialist since 2001.  Prior to joining the global equity team in 2005, Mr. Umbarger worked with the international and emerging market equity teams. As a portfolio specialist, he has traveled the world, working closely with institutional clients, consultants, and prospects.

Mr. Umbarger earned a B.S. in finance from Towson University and an M.S.F. in finance from Loyola University Maryland. He also has earned the Chartered Financial Analyst designation and is a Series 6, 7, 63, and 65 registered representative.

  • Years at
    T. Rowe Price
    26
  • Years investment
    experience
    26
Laurence Taylor

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

Mr. Taylor has 19 years of investment experience, 10 of which have been with T. Rowe Price. Prior to joining the firm in 2008, Mr. Taylor was a quantitative portfolio manager at AXA Rosenberg, with responsibility for European institutional clients, and began his career at Hewitt Associates in the UK investment practice. At Hewitt, Mr. Taylor 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.

Mr. Taylor obtained his B.A., with honours, from Greenwich University and has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    19

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount Minimum Subsequent Investment Minimum Redemption Amount Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $15,000 $100 $100 5.00% 160 basis points 1.77%
Class I $2,500,000 $100,000 $0 0.00% 75 basis points 0.82%
Class Q $15,000 $100 $100 0.00% 75 basis points 0.92%
Class S $10,000,000 $0 $0 0.00% 0 basis points 0.07%

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

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GIPS® Information

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

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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