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Global Natural Resources Equity Fund

Seeking to identify long-term global winners in the arena of natural resources extraction and production.

ISIN LU0272423913 WKN A0MKKE

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 15-Nov-2006

Performance figures calculated in USD

Other Literature

30-Sep-2019 - Shawn T. Driscoll, Portfolio Manager,
We believe the global commodities market is in middle of a long-term, secular downcycle. Although countercyclical rallies in oil prices can occur, we believe any periods of outperformance will likely be brief, due to a declining cost curve and the disruptive effects of short-cycle shale production. Nevertheless, we continue to find pockets of opportunity in several areas of the market.
Shawn T.  Driscoll
Shawn T. Driscoll, Portfolio Manager

Shawn Driscoll is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Natural Resources Strategy and is president and chairman of its Investment Advisory Committee. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.



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 widely diversified portfolio of stocks of natural resources or commodities-related companies. The companies may be anywhere in the world, including emerging markets.

Investment Approach

  • Focus on well-managed companies that own or develop natural resources and other basic commodities with attractive long-term supply-demand fundamentals.
  • Invest in companies that operate “downstream” from these resources, e.g., refining, paper manufacturing, steel fabrication, and petrochemicals.
  • The portfolio invests in resource companies on a global basis including — international energy, forest products, mining, and commodities.
  • Assessment of resource/commodity cycle, industry valuation, and company fundamentals is key.
  • Broadly diversify holdings to manage portfolio risk profile relative to highly concentrated energy or gold strategies.

Portfolio Construction

  • Typically 90-120 securities
  • Positions typically range to 5%
  • Reserves typically range from 0% to 5%

Performance (Class I)

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % -12.82% 0.49% -3.16% 1.66% -0.76%
Indicative Benchmark % -13.85% 1.63% -2.49% 2.33% -0.92%
Excess Return % 1.03% -1.14% -0.67% -0.67% 0.16%

Inception Date 15-Nov-2006

Manager Inception Date 30-Sep-2013

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Data as of  30-Sep-2019

  1 YR 3 YR
5 YR
10 YR
Fund % -12.82% 0.49% -3.16% 1.66%
Indicative Benchmark % -13.85% 1.63% -2.49% 2.33%
Excess Return % 1.03% -1.14% -0.67% -0.67%

Inception Date 15-Nov-2006

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Data as of  30-Sep-2019

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 16-Oct-2019 Quarter to DateData as of 16-Oct-2019 Year to DateData as of 16-Oct-2019 1 MonthData as of 30-Sep-2019 3 MonthsData as of 30-Sep-2019
Fund % -1.37% -1.37% 6.65% 2.45% -4.41%
Indicative Benchmark % -1.47% -1.47% 6.94% 3.95% -4.74%
Excess Return % 0.10% 0.10% -0.29% -1.50% 0.33%

Inception Date 15-Nov-2006

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Indicative Benchmark: MSCI World Select Natural Resources 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 - Shawn T. Driscoll, Portfolio Manager,
Commodity prices were broadly lower in September. West Texas Intermediate crude oil prices ended the month down slightly, despite an attack on Saudi oil infrastructure. Industrial metals prices were generally flat. However, nickel prices soared after Indonesia announced that it would ban exports at the start of 2020. After a strong summer, precious metals, silver, platinum, and gold prices gave back some gains as the U.S. dollar strengthened and bond yields stabilised. Palladium prices, on the other hand, tested new highs. Within the portfolio, our underweight in diversified metals and mining held back relative returns the most. The industry rebounded from a challenging August, lifted by increasing optimism surrounding upcoming trade talks between the U.S. and China. A below-benchmark position in oil and gas refining and marketing also hurt, as the stocks rallied on low input costs and solid demand. Conversely, the portfolio’s underweight allocation to precious metals and minerals boosted relative results, with shares in the industry pulling back in sympathy with gold and silver prices.


Largest Holding Total 5.27% Was (30-Jun-2019) 5.00%
Other View Full Holdings Quarterly data as of 30-Sep-2019
Top 10 Holdings 26.93% View Top 10 Holdings Monthly data as of 30-Sep-2019

Largest Top Contributor^

NextEra Energy
By 0.08%
% of fund 2.42%

Largest Top Detractor^

By -2.38%
% of fund 5.29%


Quarterly Data as of 30-Sep-2019

Top Purchase

Was (30-Jun-2019) 0.77%

Top Sale

Occidental Petroleum
Was (30-Jun-2019) 2.28%

Quarterly Data as of 30-Sep-2019

30-Jun-2019 - Shawn T. Driscoll, Portfolio Manager,

Our bearish outlook for oil prices and belief that we are in the middle of a secular downcycle for commodities have not changed. Accordingly, we continue to favor defensive industries and areas of the natural resources universe, such as specialty chemicals, that stand to benefit because lower commodity prices reduce their input costs. However, we remain aware of the potential for signs of�further economic weakness�to weigh on�cyclical names and have sought to emphasize idiosyncratic growth stories that can provide a bit of a buffer against macro headwinds. As always, we remain conscious of valuation, industry fundamentals, and longer-term risk/reward propositions. In the second quarter, this prompted us to add exposure to well-positioned containerboard companies that we�believe should�benefit from secular demand tailwinds related to e-commerce and a rebalancing market. Among commodity producers, we prefer high-quality names that can deliver strong, low-cost output growth without sacrificing their balance sheets. Despite our long-term outlook, we are not�averse to taking advantage of the countercyclical rallies that crop up during secular bear markets. We also continue to explore electric vehicles and other disruptive trends that could create risks and opportunities in our investment universe. Our bottom-up approach to stock selection helps us assess this evolving landscape and make informed, long-term investment decisions.

Allocation to Energy Industrials

We high-graded our exposure in energy industrials, rotating into higher-conviction�stocks that we believe�traded at undemanding valuations�and/or offered exposure to�idiosyncratic growth stories that could prove resilient in a challenging environment.

  • We established a position in CNH Industrial, a company that produces agricultural equipment and commercial vehicles. Although we like the quality of the company's core businesses, under-earning business�segments and macro headwinds have weighed on the stock's performance. At current valuations, we believe�CNH Industrials�offers a favorable risk/reward profile that should afford some downside protection while we wait for an inflection in�the company's�underlying businesses.
  • We added to the portfolio's stake in Epiroc, a high-quality mining equipment company that boasts a debt-free balance sheet and generates a significant portion of its revenue from services. In our view, Epiroc's growing service business, which aims to improve miners' productivity, should compound value for shareholders over time. We also believe that equipment orders could grow significantly once replacement cycles kick in and the industry steps up development of greenfield mining sites.
  • We sold shares of Ball, a global leader in aluminum packaging, on strength. In our view, the company should continue to benefit from growing demand as aluminum packaging replaces less sustainable options and cans take market share in cocktails and wines.
  • We eliminated Pentair from the portfolio after the company pre-announced quarterly results that fell well short of guidance, raising questions about execution. We also had concerns about Pentair's leverage to residential construction.

Oil and Gas Storage and Transportation

The portfolio finished the quarter with an overweight allocation to the oil and gas storage and transportation industry, though we refined our positioning to emphasize ideas that we believe have the�most compelling�risk/reward profiles. The best-positioned companies in this space stand to benefit as hydrocarbon output from low-cost U.S. shale plays continues to increase. These stocks tend to fare better when interest rates are lower because of their dividend yields and the reduced credit risk for their counterparties in oil and gas exploration and production.

  • We eliminated the portfolio's stake in Royal Vopak, a Netherlands-based company that owns a global portfolio of tank terminals that store gases, chemicals, and oil.
  • We sold some of the portfolio's stake in TC Energy, which owns pipelines and other energy infrastructure in Canada and the U.S., on strength to manage position size. We like TC Energy's resilient cash flows and leverage to expansion opportunities created by growing North American oil and gas production.
  • We initiated a position in Targa Resources, an oil and gas gathering and processing company that has built an integrated system of pipelines and other critical energy infrastructure in the Permian Basin. We value Targa Resources' expansion opportunities as hydrocarbon output from West Texas continues to increase and see the potential for�the company's�financial condition to improve as these projects generate incremental cash flow.

Paper and Forest Products

International containerboard prices have tumbled�from their peak in�the back half of 2018, pressured by macro-driven demand deterioration and supply-side capacity additions that have increased inventories. These headwinds have already prompted leading producers to reduce their operating rates to help rebalance the market. Despite this near-term weakness, our long-term outlook for the industry remains favorable. We believe industry consolidation should help to moderate the cyclicality in containerboard pricing, while a rising capital-incentive curve and the increasing penetration of e-commerce provide long-term tailwinds. We started or added to positions in high-quality containerboard producers.

  • We exited Australia-based packaging company Orora in favor of investment ideas that we believe offer better risk/reward profiles.
  • We established a position in Packaging Corporation of America, the U.S. containerboard producer with the least exposure to international exports. We value the company's highly integrated business and disciplined management team, qualities that should help the company to sustain its superior profitability relative to peers.
  • We added to International Paper, a leading producer and distributor of containerboard and other paper products. As with Packaging Corporation of America, this position is a bet that cyclical weakness eventually will give way to secular and structural tailwinds.
  • Shares of West Fraser Timber and Interfor came under pressure from weakness in spot lumber prices. We continue to believe the market does not appreciate the extent to which the scarcity of timber in British Columbia has pushed the region to the higher end of the cost curve. In our view, this dynamic favors West Fraser Timber and Interfor, both of which have favorable geographic mixes that include meaningful exposure to the low-cost U.S. South.

Diversified Metals and Mining

The portfolio remained underweight the diversified metals and mining industry. A global oversupply of many metals and mining commodities is expected to be a headwind for this segment throughout much of this secular bear market in commodities. We continue to believe the industry is one of the more challenged spaces within the natural resources complex over�a longer time frame. We remain defensively positioned with the names we do own, focusing on companies with solid balance sheets and sound records of capital allocation.

  • We initiated a position in Australia-based South32, a diversified mining outfit that boasts a strong balance sheet and continues to execute its plan of harvesting cash from its existing assets while incrementally improving the quality of its portfolio through sound capital allocation and strategic divestments. We like the company's high-quality management team and regard this stock as a value story that will play out over time.
  • We eliminated the portfolio's position in Aurubis, a global copper smelter and recycler, in favor of opportunities that we believe have better risk/reward profiles.
  • In May, shares of Boliden pulled back on concerns about the macro environment, the head of smelting's departure, and disappointing free cash flow in the first quarter. In our view, the zinc and copper mining and smelting company ranks among the highest-quality names in diversified metals and mining, thanks to a strong management team, solid balance sheet, and history of allocating capital intelligently through the cycle.

Allocation to Utilities

We appreciate utilities for their defensive qualities but remain selective and valuation-conscious, focusing on names that should be able to deliver solid cash flow and dividend growth during periods of deceleration in the broader economy. The portfolio again ended the quarter with a significantly above-benchmark allocation to utilities.

  • We increased the portfolio's position in NextEra Energy's common stock. In our view, the company's utility franchise stands to benefit from a supportive regulatory environment and ample opportunity to invest in�clean energy, storage, and grid reliability. The utility is also the leading U.S. developer of renewable energy, a distinction that we believe gives it the expertise and scale to take advantage of growing demand for (and the declining cost of) wind and solar power. These opportunities should enable the company to compound shareholder value over time.
  • We reduced the portfolio's exposure to NiSource in favor of other investment opportunities.
  • We took advantage of recent strength to take some profits on Atmos Energy and manage our position size. In our view, the gas utility should be able to grow its cash flow and dividend at a steady clip, thanks to a long runway for system�investment and a supportive regulatory environment.

Allocation to Chemicals

Our bearish long-term outlook for commodities makes chemicals an area of focus, thanks in part to the potential margin uplift from lower input costs. However, with key end markets showing signs of slowing down and concerns about potential overcapacity in the polyethylene, we prefer names that operate high-quality businesses, have the most levers to pull to offset weakness, and/or offer exposure to potential upside drivers that are independent of the macro environment. Specialty chemicals and industrial gases finished the quarter as the portfolio's largest overweight allocations at the industry level.

  • We exited industrial gas company Air Liquide on valuation.
  • We started a position in Westlake Chemical, a leading U.S. producer of polyethylene that opportunistically diversified into chor-alkali and polyvinyl chloride (PVC) via its 2016 acquisition of Axiall. Although potential capacity concerns and the uncertain macro backdrop make us cautious on commodity chemicals producers, we regard Westlake Chemical as a value play because the market has not priced in improving fundamentals in the chlor-alkali market. We also like management's history of allocating capital intelligently during past downcycles and its sizable ownership stake.
  • We increased the portfolio's position in Linde, as we like the potential for�the industrial gas company�to drive margin expansion as it realizes projected cost synergies from its�combination with�Praxair. We also appreciate the company's high-quality management team, defensive qualities, and potential to compound value for shareholders.


Largest Sector Chemicals 18.03% Was (31-Aug-2019) 18.11%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: MSCI World Select Natural Resources Index

Largest Overweight

Fund 10.43%
Indicative Benchmark 6.01%

Largest Underweight

Energy Services & Processors
Fund 10.60%
Indicative Benchmark 22.55%

Monthly Data as of 30-Sep-2019

30-Sep-2019 - Shawn T. Driscoll, Portfolio Manager,
We continued to upgrade our positioning in oil and gas exploration and production to reflect an increasingly challenging environment. This process involved adding to our highest-conviction investment ideas and exiting holdings that we believe could struggle to compete as their larger, more sophisticated peers continue to employ their superior scale, balance sheets, and technology to drive productivity and efficiency gains. Within this space, we remain focused on high-quality operators that we believe can grow their hydrocarbon output at midcycle oil prices, without damaging their balance sheets.


Largest Country United States 57.75% Was (31-Aug-2019) 58.45%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: MSCI World Select Natural Resources Index

Largest Overweight

United States
Fund 57.75%
Indicative Benchmark 50.98%

Largest Underweight

Fund 0.46%
Indicative Benchmark 6.00%

Monthly Data as of 30-Sep-2019

31-Jul-2015 - Shawn T. Driscoll, Portfolio Manager,
From a country perspective, our allocation to Norway saw the largest percentage increase during the month of July. There were no notable reductions for the period.


Largest Currency U.S. dollar 64.60% Was (31-Aug-2019) 64.78%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark : MSCI World Select Natural Resources Index

Largest Overweight

U.S. dollar
By 13.25%
Fund 64.60%
Indicative Benchmark 51.35%

Largest Underweight

Canadian dollar
By -7.45%
Fund 4.49%
Indicative Benchmark 11.94%

Monthly Data as of 30-Sep-2019

Team (As of 31-Aug-2019)

Shawn T.  Driscoll

Shawn Driscoll is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Natural Resources Strategy and is president and chairman of its Investment Advisory Committee. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Driscoll has 16 years of investment experience, 13 of which have been with T. Rowe Price. Prior to joining the firm in 2006, he was employed by MTB Investment Advisors as an equity research analyst. He also worked for MPower Communications as an information technology project manager.

Mr. Driscoll earned a B.A. in economics and mathematics from the University of Rochester and an M.B.A. in finance and global business from New York University, Leonard N. Stern School of Business.

  • Fund manager
  • Years at
    T. Rowe Price
  • Years investment
Brian Dausch

Brian Dausch is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He is a member of the Global Natural Resources Equity, US Mid-Cap Growth Equity, US Small-Cap Growth Equity, QM US Small-Cap Growth Equity, and Health Sciences Strategy teams, working closely with institutional clients, consultants, and prospects. Mr. Dausch is a vice president of T. Rowe Price Group, Inc.

Mr. Dausch has 22 years of investment experience, 21 of which have been at T. Rowe Price. He joined the firm in 1998; prior to his current position, he managed the U.S. Equity Portfolio Analysis Group. Mr. Dausch also served as an associate research analyst in the U.S. Equity Division in health care, specializing in biotechnology and pharmaceutical company research.

Mr. Dausch earned a B.S. in business administration, with a concentration in finance, from the University of Delaware. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
  • Years investment

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 0.83%
Class Q $15,000 $100 $100 0.00% 75 basis points 0.92%

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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