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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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SICAV

Global Natural Resources Equity Fund

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

ISIN LU1382644919 WKN A2AGKX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

0.28%
$109.3m

1YR Return
(View Total Returns)

Manager Tenure

31.80%
<1yr

Inception Date 18-Mar-2016

Performance figures calculated in GBP

30-Sep-2021 - Shinwoo Kim, Portfolio Manager ,
We continue to believe that we are in the middle of a secular downcycle for commodities. Despite the recovery in oil prices, productivity gains continue, pressuring the cost curve and challenging the long-term outlook for energy stocks. We remain committed to our philosophy of buying and holding a diverse selection of fundamentally sound natural resources companies.
Shinwoo Kim
Shinwoo Kim, Portfolio Manager

Shinwoo Kim is the portfolio manager for the Global Natural Resources Equity Strategy, including the New Era Fund. He is the president and chairman of the fund’s Investment Advisory Committee. In addition, Shinwoo is a member of the Investment Advisory Committees of the US Large-Cap Value Equity and US Large-Cap Equity Income Strategies. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, 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.
  • 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

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

Performance (Class Q | GBP)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Fund % 31.80% 0.28% 3.20% 6.73% 1.77%
Indicative Benchmark % 46.45% -0.73% 3.49% 7.44% 5.33%
Excess Return % -14.65% 1.01% -0.29% -0.71% -3.56%

Inception Date 18-Mar-2016

Manager Inception Date 31-Aug-2021

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Data as of 30-Sep-2021

Performance figures calculated in GBP

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 31.80% 0.28% 3.20% 6.73%
Indicative Benchmark % 46.45% -0.73% 3.49% 7.44%
Excess Return % -14.65% 1.01% -0.29% -0.71%

Inception Date 18-Mar-2016

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Data as of 30-Sep-2021

Performance figures calculated in GBP

Recent Performance

  Month to DateData as of 15-Oct-2021 Quarter to DateData as of 15-Oct-2021 Year to DateData as of 15-Oct-2021 1 MonthData as of 30-Sep-2021 3 MonthsData as of 30-Sep-2021
Fund % 4.25% 4.25% 22.14% 1.77% 2.28%
Indicative Benchmark % 5.33% 5.33% 32.84% 5.33% 1.77%
Excess Return % -1.08% -1.08% -10.70% -3.56% 0.51%

Inception Date 18-Mar-2016

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Indicative Benchmark: MSCI World Select Natural Resources Index Net

Performance figures calculated in GBP

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.

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-2021 - Shinwoo Kim, Portfolio Manager ,
Commodity markets gained ground in September, benefitting from a global energy supply crunch. Companies levered to oil and natural gas surged as prices each hit multi-year record highs amid worldwide competition for the resources. Coal also continued to advance, but diversified metals and mining companies pulled back. Chinese steel factories and other material manufacturers remained under pressure to limit output levels due to a government crackdown on polluting industries. Specialty chemicals companies fell in September, hurt by rising raw materials input costs amid widespread supply shortages. Precious metals and minerals also posted losses as the U.S. dollar strengthened. Most agricultural commodities moved lower amid larger-than-expected U.S. corn and soybean stores. Within the portfolio, our overweight position in underperforming speciality chemicals companies hurt performance, as did our lack of exposure to U.S. mixed explorers and producers, which benefitted from record-high oil and natural gas prices. Conversely, diversified metals and mining companies struggled during the month, and our underweight allocation contributed positively.

Holdings

Total
Holdings
103
Largest Holding ConocoPhillips 4.80% Was (30-Jun-2021) 3.39%
Other View Full Holdings Quarterly data as of  30-Sep-2021
Top 10 Holdings 29.79% View Top 10 Holdings Monthly data as of  30-Sep-2021

Largest Top Contributor^

ConocoPhillips
% of fund 4.77%

Largest Top Detractor^

Boliden
% of fund 1.99%

^Absolute, percentages based on the difference between the total net assets of the two largest holdings of the fund.

Quarterly Data as of 30-Sep-2021

Top Purchase

Chevron
2.73%
Was (30-Jun-2021) 1.96%

Top Sale

Linde
2.41%
Was (30-Jun-2021) 3.01%

Quarterly Data as of 30-Sep-2021

30-Jun-2021 - Shawn T. Driscoll, Portfolio Manager ,

Our bearish long-term outlook for oil prices and our belief that we are in the middle of a secular downcycle for commodities have not changed. Despite the spike in oil price, oil productivity is still improving and has further room to run, pressuring the cost curve and leaving a challenged long-term outlook for energy stocks. As such, we remain meaningfully underweight energy to reflect our longer-term bearish view. The oil cost curve is influential in the cost curve of many other commodities and informs our bearish views on metals and mining, which remains the strategy's second largest underweight. Additionally, we continue to favor beneficiaries of commodity deflation (including utilities, packaging, and specialty chemicals) and expect to retain meaningful allocations to paper and forest products, where we see cyclical and secular tailwinds converging, as the cost curve steepens to the advantage of low-cost producers and the growing emphasis on ESG adds additional support to the industry.

Specialty Chemicals

This defensive industry remains one of the largest overweights in the portfolio. Our bearish long-term outlook for commodities makes specialty chemicals an area of focus, thanks in part to the potential margin uplift that some companies may receive from lower input costs. In this space, we favor long-term earnings compounders and names with idiosyncratic growth drivers.

  • We added to Atotech, a supplier of process chemicals used in electroplating solutions for electronics and automotive technology applications. In our view, the company operates in an oligopolistic industry and its strength in Asia, as well as in certain niche applications, is an attractive differentiator from its peers.
  • We increased our position in Sherwin-Williams, our largest specialty chemicals position. We consider it a best-in-class architectural coatings company and value its high free cash flow business that generates solid returns on invested capital. We also added to RPM International, which manufactures and sells coatings and sealants to consumer and industrial markets. We like RPM's risk-reward profile and leading coatings brands that it sells to niche end markets. We believe that the firm benefits from an entrepreneurial culture and focus on investment discipline.

Paper and Forest Products

We remain overweight to this industry, a reflection of our increasing conviction in the potential for cost curves to rise throughout the value chain, supporting timber and containerboard prices and improving profit margins in the industry.

  • We increased our positions in UPM-Kymmene, which manufactures and sells printing and writing papers, and added to European cartonboard market leader Mayr-Melnhof Karton. We see meaningful opportunities in the space, as cost curves are rising to the advantage of low-cost producers that, in our view, are poised to benefit from rising prices and improving demand.
  • We exited DS Smith, a UK-based producer of recyclable containerboard packaging, and reallocated the proceeds to other high-conviction ideas.

Metal and Glass Containers

While a modest portfolio allocation, we expect glass packaging should continue to take market share from plastic because of its superior recyclability. This was one of the industries significantly impacted by the COVID-19 pandemic as lockdown restrictions put a stop to social gatherings. However, as lockdown measures are increasingly lifted, we believe the industry stands to benefit from resurging demand from an artificially low growth rate as normalcy resumes and social events resume.�

  • We eliminated our positions in beverage can manufacturer Crown Holdings and Spanish glass packaging company Vidrala and reallocated assets to other high-conviction ideas within the segment. We also trimmed the portfolio's stake in Ball Corporation, a leading manufacturer of aluminum packaging. However, we continue to maintain a meaningful allocation in Ball, which should benefit as aluminum packaging replaces less sustainable options and cans take market share in cocktails and wines. We expect that Ball can grow its organic topline given competitive pricing in specialty cans and supportive supply/demand dynamics, as well as new beverage categories.

Diversified Metals and Mining

We remain underweight in this industry. Within the segment, we are focused on metals and mining companies with solid balance sheets and records of sound capital allocation. We believed that a global oversupply of many base metals could be a headwind through much of what we regard as a secular bear market in commodities. Nevertheless, we have a favorable medium- to long-term outlook for copper prices because of the potential for demand to expand as adoption of electric vehicles grows.

  • We eliminated our position in Lundin Mining, the top sell for the quarter, after the Canadian-based copper miner reported revised production guidance for the year due to another operational mishap at Candelaria, their main cornerstone asset. We also exited Norway-based Norsk Hydro, a producer of bauxite, alumina, and aluminum along with downstream rolled and extruded products. In our view, a low carbon world will bring disruption and dislocation for the aluminum market.
  • We initiated a position in Antofagasta, a pure copper producer based in Chile. We believe that the company offers a relatively better risk/reward profile within the segment. The expansion at Los Pelambres and Centinela mines are additional tailwinds. We think Antofagasta is a well-run copper miner in a stable mining jurisdiction, with long-life assets and a strong balance sheet.

Precious Metals and Mining

The portfolio remained underweight precious metals and minerals. In our view, miners with high-quality expansion opportunities, as well as credible management teams and solid balance sheets, have the potential to create significant value for shareholders even if commodity prices do not cooperate.

  • We eliminated Australian miner Silver Lake Resources and added to Canadian gold miner Wesdome after the company announced expansion of drilling in its Kiena Mine Complex in Quebec Gold Mines. We prefer small- to mid-cap producers pursuing mining projects that are lower on the cost curve and should drive significant production and cash flow growth upon completion.

Multi-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 all economic cycles. In our view, the trends toward increasing adoption of renewable energy and electric vehicles, as well as the associated need for grid modernization, should be secular multi-decade tailwinds for the industry. For these reasons, we believe electric utilities should also benefit from increasing interest in investment strategies that involve ESG considerations.

  • We are invested in WEC Energy and Dominion Energy based in Wisconsin and Virginia. These well-managed electric utilities trade at attractive valuations and stand to gain from clean energy legislation that could drive significant capital expenditures in renewables over the long term.

Sectors

Total
Sectors
9
Largest Sector Chemicals 17.18% Was (31-Aug-2021) 18.33%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: Lipper Global Natural Resources Funds Index

Largest Overweight

Chemicals
By11.57%
Fund 17.18%
Indicative Benchmark 5.61%

Largest Underweight

Metals & Mining
By-13.70%
Fund 9.02%
Indicative Benchmark 22.72%

Monthly Data as of 30-Sep-2021

30-Sep-2021 - Shinwoo Kim, Portfolio Manager ,
We follow what the data tell us and remain focused where we believe we have an investment edge—specifically in the multiyear structural commodity call. The oil cost curve is influential in the cost curve of many other commodities. Therefore, in addition to our underweight energy allocation, we are also underweight metals and mining. We favour defensive industries, like electric utilities, and beneficiaries of commodity deflation, including utilities, packaging and specialty chemicals. We also see meaningful opportunities in the paper and forest products industry, which we believe could benefit from a steepening cost curve and a favourable environmental, social and governance profile.

Countries

Total
Countries
19
Largest Country United States 56.16% Was (31-Aug-2021) 55.68%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: Lipper Global Natural Resources Funds Index

Largest Overweight

Sweden
By5.61%
Fund 6.47%
Indicative Benchmark 0.86%

Largest Underweight

Canada
By-12.00%
Fund 5.03%
Indicative Benchmark 17.03%

Monthly Data as of 30-Sep-2021

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
9
Largest Currency 60.11% Was (31-Aug-2021) 59.71%
Other View completeCurrency Diversification

Monthly Data as of  30-Sep-2021

Indicative Benchmark : MSCI World Select Natural Resources Index

Largest Overweight

U.S. dollar
By 7.20%
Fund 60.11%
Indicative Benchmark 52.90%

Largest Underweight

Canadian dollar
By -10.10%
Fund 3.15%
Indicative Benchmark 13.25%

Monthly Data as of  30-Sep-2021

Team (As of 01-Oct-2021)

Shinwoo Kim

Shinwoo Kim is the portfolio manager for the Global Natural Resources Equity Strategy, including the New Era Fund. He is the president and chairman of the fund’s Investment Advisory Committee. In addition, Shinwoo is a member of the Investment Advisory Committees of the US Large-Cap Value Equity and US Large-Cap Equity Income Strategies. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Shinwoo has been with T. Rowe Price since 2009, beginning in the U.S. Equity Division as an investment analyst covering energy. Prior to joining the firm, he served as a summer equity research analyst for MFS Investment Management, focusing on the railroad industry. He also was a senior consultant/engineer for AT&T, Inc., and a managed network operation engineer for Sprint Corp.

Shinwoo earned a dual B.S., magna cum laude, in electrical engineering and computer engineering from North Carolina State University and an M.B.A. in finance from the University of Pennsylvania, The Wharton School.

  • Fund manager
    since
    2021
  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    12
Brian Dausch, CFA

Brian Dausch is a portfolio specialist in the U.S. Equity Division. 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 Equity Strategy teams, working closely with institutional clients, consultants, and prospects. He is a vice president of T. Rowe Price Group, Inc.  

Brian’s investment experience began in 1997, and he has been with T. Rowe Price since 1998, beginning in the U.S. Equity Division as an associate investment analyst covering biotechnology and pharmaceutical companies. Prior to his current role, Brian managed the U.S. Equity Portfolio Analysis Group.

Brian 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.

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

  • Years at
    T. Rowe Price
    22
  • Years investment
    experience
    23

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.