SICAV

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
(USD)

-5.97%
$80.7m

1YR Return
(View Total Returns)

Manager Tenure

-13.16%
7yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.43
5.63%

Inception Date 15-Nov-2006

Performance figures calculated in USD

Other Literature

30-Sep-2020 - Shawn T. Driscoll, Portfolio Manager,
We continue to believe that we are in a secular bear market for many commodities, although brief countercyclical rallies are possible. We expect the near-term oil prices to overcorrect from second quarter lows as global economies recover from the pandemic and demand normalises. Over the long term, however, we believe that oil prices are likely to settle in the mid-USD 40s per barrel.
Shawn T.  Driscoll
Shawn T. Driscoll, Portfolio Manager

Shawn Driscoll is the portfolio manager of the Global Natural Resources Equity Strategy, including the New Era Fund, in the U.S. Equity Division. He is chairman of the Investment Advisory Committee of the Global Natural Resources Equity Strategy and a vice president and an Investment Advisory Committee member of the US Capital Appreciation, US Large-Cap Core Equity, US Growth Stock, US Large-Cap Core Equity, US Mid-Cap Growth Equity, US Multi-Cap Growth Equity, and Real Assets Equity Strategies. Shawn also 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 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
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % -13.16% -5.97% 1.65% -0.66% -2.64%
Indicative Benchmark % -23.13% -10.02% -0.75% -1.14% -4.45%
Excess Return % 9.97% 4.05% 2.40% 0.48% 1.81%

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-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % -13.16% -5.97% 1.65% -0.66%
Indicative Benchmark % -23.13% -10.02% -0.75% -1.14%
Excess Return % 9.97% 4.05% 2.40% 0.48%

Inception Date 15-Nov-2006

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Data as of  30-Sep-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 23-Oct-2020 Quarter to DateData as of 23-Oct-2020 Year to DateData as of 23-Oct-2020 1 MonthData as of 30-Sep-2020 3 MonthsData as of 30-Sep-2020
Fund % 4.33% 4.33% -15.54% -4.78% 5.50%
Indicative Benchmark % 2.98% 2.98% -26.41% -8.08% -3.70%
Excess Return % 1.35% 1.35% 10.87% 3.30% 9.20%

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.

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. 

30-Sep-2020 - Shawn T. Driscoll, Portfolio Manager,
Commodity prices were mixed in September. Natural gas prices surged as European demand accelerated while U.S. production remained subdued. Crude oil prices fell on fears of a slower demand recovery, despite surprising inventory drawdowns. Precious metals and minerals companies modestly declined. Gold prices pulled back from intra-month highs given U.S. dollar strength and declining inflation expectations. Silver prices fell in response to gold’s weakness and due to increasing investor nervousness about industrial demand going into the autumn and winter should a second wave of coronavirus infections emerge. Diversified metals and mining companies were weak as well. Within the portfolio, the paper and forest products industry, which we believe to be an attractive segment of the market, contributed the most to relative performance, driven by strong demand for containerboard and related products. An above-benchmark allocation to the construction and farm machinery and heavy trucks industry also added value. In this cyclical segment, our quality bias to names with dominant market share was beneficial. Conversely, U.S. oil exploration and production weighed. The industry significantly underperformed the broader benchmark, and, with peers avoiding traditional energy industries, our modest allocation rendered us overweight and hurt results.

Holdings

Total
Holdings
116
Largest Holding Total 3.85% Was (30-Jun-2020) 4.48%
Other View Full Holdings Quarterly data as of 30-Sep-2020
Top 10 Holdings 24.71% View Top 10 Holdings Monthly data as of 30-Sep-2020

Largest Top Contributor^

Air Products & Chemicals
By 0.66%
% of fund 3.67%

Largest Top Detractor^

Total
By -1.82%
% of fund 3.84%

^Absolute

Quarterly Data as of 30-Sep-2020

Top Purchase

Air Liquide (N)
1.37%
Was (30-Jun-2020) 0.00%

Top Sale

Total
3.83%
Was (30-Jun-2020) 4.48%

Quarterly Data as of 30-Sep-2020

31-Jul-2020 - Shawn T. Driscoll, Portfolio Manager,
Our bearish long-term outlook for oil prices has not changed. Accordingly, we favour defensive industries, such as electric utilities, and areas of the natural resources universe that tend to benefit from lower commodity prices. We continued to upgrade the portfolio by trimming lower-conviction ideas while adding to high-quality companies that look attractive now and that we’d like to own on the other side of the economic cycle. Although we see the potential for a strong countercyclical rally in oil prices and energy stocks over the next 12 months, we remain selective in how we position for this trade.

Sectors

Total
Sectors
9
Largest Sector Chemicals 20.98% Was (31-Aug-2020) 20.23%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2020

Indicative Benchmark: MSCI World Select Natural Resources Index

Largest Overweight

Other
By7.33%
Fund 10.56%
Indicative Benchmark 3.23%

Largest Underweight

Energy Services & Processors
By-15.26%
Fund 8.09%
Indicative Benchmark 23.35%

Monthly Data as of 30-Sep-2020

30-Sep-2020 - Shawn T. Driscoll, Portfolio Manager,
Our bearish long-term outlook for oil prices has not changed. Accordingly, we favour defensive industries, such as electric utilities, and areas of the natural resources universe that tend to benefit from lower commodity prices. We continued to upgrade the portfolio by trimming lower-conviction ideas while adding to high-quality companies that look attractive now and that we would like to own on the other side of the economic cycle. Although we see the potential for a strong countercyclical rally in oil prices and energy stocks over the next 12 months, we remain selective in how we position for this trade.

Countries

Total
Countries
17
Largest Country United States 56.90% Was (31-Aug-2020) 56.18%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2020

Indicative Benchmark: MSCI World Select Natural Resources Index

Largest Overweight

United States
By9.28%
Fund 56.90%
Indicative Benchmark 47.62%

Largest Underweight

Canada
By-6.95%
Fund 7.18%
Indicative Benchmark 14.13%

Monthly Data as of 30-Sep-2020

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.

Currency

Total
Currencies
10
Largest Currency U.S. dollar 60.97% Was (31-Aug-2020) 60.95%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2020

Indicative Benchmark : MSCI World Select Natural Resources Index

Largest Overweight

U.S. dollar
By 13.06%
Fund 60.97%
Indicative Benchmark 47.91%

Largest Underweight

Canadian dollar
By -9.55%
Fund 4.57%
Indicative Benchmark 14.13%

Monthly Data as of 30-Sep-2020

Team (As of 01-Oct-2020)

Shawn T.  Driscoll

Shawn Driscoll is the portfolio manager of the Global Natural Resources Equity Strategy, including the New Era Fund, in the U.S. Equity Division. He is chairman of the Investment Advisory Committee of the Global Natural Resources Equity Strategy and a vice president and an Investment Advisory Committee member of the US Capital Appreciation, US Large-Cap Core Equity, US Growth Stock, US Large-Cap Core Equity, US Mid-Cap Growth Equity, US Multi-Cap Growth Equity, and Real Assets Equity Strategies. Shawn also is a vice president of T. Rowe Price Group, Inc. 

Shawn’s investment experience began in 2003, and he has been with T. Rowe Price since 2006, beginning in the U.S. Equity Division. Prior to this, Shawn was employed by MTB Investment Advisors as an equity research analyst. Shawn also was employed by MPower Communications as an information technology project manager. 

Shawn 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
    since
    2013
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    17
Brian Dausch, CFA

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
    21
  • Years investment
    experience
    22

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 $1,000 $100 $100 5.00% 160 basis points 1.74%
Class I $2,500,000 $100,000 $0 0.00% 75 basis points 0.84%
Class Q $1,000 $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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