SICAV
Global Growth Equity Fund
Seeking to select superior stocks from the broadest global equity opportunity set.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 27-Oct-2008
Performance figures calculated in USD
Strategy
Equity markets were resilient throughout the latter part of 2019 despite continuing geopolitical uncertainty and general economic blas�. However, several positive developments on the macro front that occurred in December served to support equity markets. The U.S. and China agreed to the first phase of a trade deal, the Conservative party celebrated a resounding win in the UK general election, seemingly ensuring a final resolution of the Brexit debacle, and Democrats and Republicans were able to settle on a budget agreement in the midst of impeachment hearings, which avoids a government shutdown in January. In total, we do not view these events as meaningful positives for equity markets, but they resulted in the avoidance of meaningful negatives.
Importantly for equity markets, key central banks changed direction in 2019, cutting interest rates and reviving or expanding quantitative easing programs. Assuming the economy does not lurch in either direction in a meaningful way, we think it is unlikely that the U.S. Federal Reserve will do much leading up to the November elections. However, we do expect that global monetary policy will remain supportive as the European Central Bank and the Bank of Japan continue their quantitative easing programs, and that will be good for equity markets.
Valuations are at the upper end of normal from a price-to-earnings perspective but through the lens of dividend/bond yields, equities still appear attractive in our opinion. We expect we will see a modest re-acceleration in corporate earnings growth following a tepid 2019. We continue to like the names we own from the bottom up in terms of their growth outlooks and valuations over a multiyear timeframe and are still largely playing it down the "middle of the fairway" with the portfolio. However, with the catalysts of the market being a bit more supportive, we have let the beta of the portfolio drift modestly higher.
The big question marks for equity investors as we enter 2020 relate to U.S.-China trade and November's U.S. elections. In our view, it is difficult to envision a sharp runup in equity markets until we see meaningful progress toward a real, constructive second phase trade agreement between the two superpowers and more clarity around the U.S. elections-neither of which are likely until very late into 2020. Overall, the environment is likely to remain complex, but this should provide ample opportunity for active investors to take advantage of valuations anomalies.
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 % | 30.40% | 17.41% | 10.91% | 10.47% | 15.27% |
| Indicative Benchmark % | 26.60% | 12.44% | 8.41% | 8.79% | 11.86% |
| Excess Return % | 3.80% | 4.97% | 2.50% | 1.68% | 3.41% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
10 YR Annualised |
|
|---|---|---|---|---|
| Fund % | 30.40% | 17.41% | 10.91% | 10.47% |
| Indicative Benchmark % | 26.60% | 12.44% | 8.41% | 8.79% |
| Excess Return % | 3.80% | 4.97% | 2.50% | 1.68% |
Recent Performance
| Month to Date | Quarter to Date | Year to Date | 1 MonthData as of 31-Dec-2019 | 3 MonthsData as of 31-Dec-2019 | |
|---|---|---|---|---|---|
| Fund % | N/A | N/A | N/A | 2.81% | 9.11% |
| Indicative Benchmark % | N/A | N/A | N/A | 3.52% | 8.95% |
| Excess Return % | N/A | N/A | N/A | -0.71% | 0.16% |
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.
Holdings
Total
Holdings
160
Largest Top Contributor^
Alphabet
By 0.37%Largest Top Detractor^
Boeing
By -0.05%Top Purchase
Apple
1.47%Top Sale
Boeing
0.66%
Sectors
Total
Sectors
11
Top Contributor^
Consumer Discretionary
Net Contribution 1.28%Top Detractor^
Consumer Staples
Net Contribution -0.69%Largest Overweight
Consumer Discretionary
Largest Underweight
Energy
Countries
Total
Countries
28
Largest Overweight
India
Largest Underweight
United States
Currency
Total
Currencies
21
Largest Overweight
Indian rupee
Largest Underweight
Japanese yen
Team (As of 06-Jan-2020)
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 manager2008
since - Years at17
T. Rowe Price - Years investment17
experience
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 manager2015
since - Years at9
T. Rowe Price - Years investment12
experience
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 at27
T. Rowe Price - Years investment27
experience
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 at11
T. Rowe Price - Years investment20
experience
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.
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.