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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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T. Rowe Price

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SICAV

Global Value Equity Fund

Targeting attractively valued global companies with prospects for improving earnings growth.

ISIN LU0859255472 WKN A1T64M

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

11.91%
$516.0m

1YR Return
(View Total Returns)

Manager Tenure

45.64%
8yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.61
4.37%

Inception Date 28-Nov-2012

Performance figures calculated in USD

30-Jun-2021 - Sebastien Mallet, Portfolio Manager,
As the global economic recovery strengthens, this could provide a more sustained positive backdrop for value investing. A more positive stance in the market’s longer-term prognosis for inflation and interest rates should be supportive. We focus on economically sensitive and “deep value” names, companies with strong free cash flow generation not yet fully appreciated by the market, and pockets of controversy where fundamentally sound, well-run businesses face unwarranted investor scepticism.
Sebastien Mallet
Sebastien Mallet, Portfolio Manager

Sebastien Mallet is a portfolio manager in the Equity Division at T. Rowe Price, managing the Institutional Global Value Strategy. Mr. Mallet is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

 

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 undervalued stocks of companies anywhere in the world, including emerging markets.

Investment Approach

  • Diversified portfolio investing in companies located throughout the globe.
  • Emphasize attractively valued companies with prospects for improving earnings growth.
  • Employ rigorous and comprehensive research to identify and assess investment opportunities.
  • Allocate country and sector positions through consideration of:~~Attractiveness of individual investments^^~~Macroeconomic environment^^
  • 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 80-100 stock portfolio
  • Individual positions typically range from 0.30% to 3.00% — average position size of 1.00%
  • Country and sector weights generally range +/- 15% deviation from the benchmark
  • Maximum of 10% in emerging markets
  • Reserves range from 0% to 10%

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 45.64% 11.91% 12.16% 11.38% 11.38%
Indicative Benchmark % 39.04% 14.99% 14.83% 12.37% 12.37%
Excess Return % 6.60% -3.08% -2.67% -0.99% -0.99%

Inception Date 28-Nov-2012

Manager Inception Date 28-Nov-2012

Indicative Benchmark: MSCI World Index Net

Data as of 30-Jun-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 45.64% 11.91% 12.16% 11.38%
Indicative Benchmark % 39.04% 14.99% 14.83% 12.37%
Excess Return % 6.60% -3.08% -2.67% -0.99%

Inception Date 28-Nov-2012

Indicative Benchmark: MSCI World Index Net

Data as of 30-Jun-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 29-Jul-2021 Quarter to DateData as of 29-Jul-2021 Year to DateData as of 29-Jul-2021 1 MonthData as of 30-Jun-2021 3 MonthsData as of 30-Jun-2021
Fund % 0.24% 0.24% 13.96% -1.17% 3.61%
Indicative Benchmark % 2.47% 2.47% 15.84% 1.49% 7.74%
Excess Return % -2.23% -2.23% -1.88% -2.66% -4.13%

Inception Date 28-Nov-2012

Indicative Benchmark: MSCI World Index Net

Indicative Benchmark: MSCI 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.

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-Jun-2021 - Sebastien Mallet, Portfolio Manager,
Global stocks gained modest ground in June. Generally favourable U.S. economic data, particularly relating to consumer confidence and jobs, helped to support sentiment, as did the announcement of a bipartisan agreement for a USD 1 trillion plan in infrastructure spending over the next five years. Enthusiasm was kept in check by the spread of the delta variant of the coronavirus. Concerns that inflationary pressures might bring forward interest rate increases also weighed, particularly on cyclical stocks. This was reinforced by the U.S. Federal Reserve’s post-meeting in which policymakers noted they have begun to discuss slowing the central bank’s bond purchases, the first step toward eventually raising interest rates. At the portfolio level, stock selection within consumer discretionary and industrials and business services held back relative performance, as did our overweight exposure to financials and underweight to information technology (IT). Financial stocks came under pressure over the month as the uncertain timing of future interest rate hikes hung over the sector; our overweight here held back portfolio returns.

Holdings

Total
Holdings
100
Largest Holding Microsoft 3.55% Was (31-Mar-2021) 1.98%
Other View Full Holdings Quarterly data as of  30-Jun-2021
Top 10 Holdings 21.86% View Top 10 Holdings Monthly data as of  30-Jun-2021

Largest Top Contributor^

Microsoft
By 1.21%
% of fund 3.55%

Largest Top Detractor^

Fiserv
By -0.25%
% of fund 1.30%

^Absolute

Quarterly Data as of 30-Jun-2021

Top Purchase

Microsoft
3.55%
Was (31-Mar-2021) 1.98%

Top Sale

Johnson & Johnson (E)
0.00%
Was (31-Mar-2021) 1.56%

Quarterly Data as of 30-Jun-2021

31-Mar-2021 - Sebastien Mallet, Portfolio Manager,

While our portfolio maintains a balance across the value style spectrum, we are positioned more bullishly than in the past, and have taken the opportunity to lock in profits from holdings that have had a strong recovery, while adding to deeper value companies �and less-bought cyclicals. On a sector basis, we increased the extent of our overweight position in financials, moved from underweight to overweight in health care, and reduced our relative exposure to IT and materials following good performance by both sectors. On a country basis, we found compelling investment opportunities in Japan and China and raised our exposure to those markets. In Japan, we are seeing evidence of good capital allocation and restructuring by the country's corporates.

At the end of March, our major overweight sector positions were in financials, industrials and business services, and utilities. The largest underweight sector positions included IT, consumer staples, and consumer discretionary. On a geographic basis, we remain cautious about the U.S. where we believe valuations are still expensive, while our largest relative overweight position is in China. We also see value in emerging markets and the UK.

IT

IT is a very large and diversified sector and we generally see the most opportunities in cyclical areas (particularly memory semiconductor-related names) and in recovery plays.� Over the course of the review period, we sold some of our semiconductor positions that had performed well.

  • We eliminated our holding in NXP Semiconductors, the diversified, mixed signal semiconductor company. Its product solutions are used in a range of end-market applications including automotive, wireless infrastructure, industrial, and computing applications. The stock has been a strong performer for the portfolio since we purchased it, due to both growth in the automotive and mobile segments and, more broadly, to the cyclical recovery. While the valuation remains reasonable, we found stronger opportunities elsewhere.

Financials

The portfolio had a significant overweight position in financials as the first quarter began and over the review period, we continued to build this. Our exposure is tilted towards U.S. banks as we believe they stand to benefit from a favorable interest rate environment, are generally better-managed than banks in other regions, and operate under the jurisdiction of a more benign, hands-off regulator. Beyond banks, we believe that the global property and casualty insurance industry looks set to have more pricing power, following a large number of catastrophes forcing up industry costs and driving a number of smaller players out of the industry.

  • We continued to add to our position in Wells Fargo, which has broad exposure to most U.S. retail and corporate banking asset classes and reports on three operating segments: community banking, wholesale banking and wealth and investment management. The stock reached an attractive valuation point following earnings pressure due to the pandemic and an asset cap limit which has been in place for the bank since 2018. We believe the asset cap could be removed, management is looking to tackle expenses more aggressively, and earnings are more likely to normalise as the economy recovers from the pandemic.
  • We added to our holding in JP Morgan Chase, one of the largest U.S. banks. The bank is well-run, in our view, with an even mix of retail and wholesale businesses. The company reported a solid set of results for the fourth quarter. We see potential for further outperformance in U.S. banks, which are set to benefit from a positive rate environment and will see a lift of dividend payment caps this year. We believe that the company's ability to invest for growth will continue to be its differentiating factor.
  • We initiated a position in the insurance and financial services company Prudential. The company recently announced the spin-off of the Jackson unit, its U.S. arm. This should allow the company to ramp up the focus on its unique franchise across ASEAN and re-risk the balance sheet to strong levels. Although there may be some volatility in the short-term, we believe that this leaves the business with a strong growth trajectory in the longer term.

Materials

The portfolio retains an overweight position in materials, but we reduced our exposure following strong share performance on the back of higher commodity prices.

  • We sold out of our position in Rio Tinto, whose primary commodity exposures include iron ore, aluminium, copper and titanium dioxide. As commodity spot prices rose, the stock price recovered strongly from the lows of last March and valuation metrics approached levels seen in previous cycle highs. We believe that the risk/reward profile of the stock has become negatively skewed and there is also an adverse macro risk from potentially aggressive tightening of Chinese credit. We redeployed proceeds to other opportunities.

Utilities

Over the quarter we retained our overweight position in the utilities sector but made a number of changes within our holdings, selling where our outlook had become less positive and identifying areas where we saw more potential share price upside.

  • We eliminated our position in Entergy, the U.S. integrated electric and gas utility company. While the company continues to offer an attractive long-term profile, the nearer-term outlook may be pressured by regulatory noise ad increased costs due to hurricanes last summer. We chose to sell out of our holding and use proceeds to add to more attractive ideas within this space.
  • We built a position in Public Service Enterprise, the U.S. diversified energy company. The company is in the process of improving the quality of its earnings mix and as a result, we see strong upside potential in the share price. The business' focus is on selling its fossil fuel generation portfolio and entering the offshore wind business with the global leader as a partner. Furthermore, the company is working to de-risk its nuclear generation business. In the next year, we believe that the company will be an above-average transmission and distribution utility, having grown its exposure to renewables through its offshore wind partnerships with Orsted, and may also have a nuclear generation fleet with improved long-term government support.

Consumer Discretionary

The portfolio remains underweight consumer discretionary and we further reduced our exposure over the review period.

  • We sold out of our holding in Magna International, one of the largest auto suppliers globally. The company designs, develops and manufactures almost every major component of the car aside from wheels and tyres. We took advantage of the strength of its share price and eliminated our position after the company demonstrated solid results in 2020 as automotive production volumes recovered. We are also cautious on the stock's downside potential in a recessionary scenario.

Sectors

Total
Sectors
11
Largest Sector Financials 19.66% Was (31-May-2021) 21.38%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: MSCI World Index

Top Contributor^

Health Care
Net Contribution 0.23%
Sector
0.00%
Selection 0.22%

Top Detractor^

Information Technology
Net Contribution -0.93%
Sector
-0.31%
Selection
-0.62%

^Relative

Quarterly Data as of 30-Jun-2021

Largest Overweight

Financials
By6.12%
Fund 19.66%
Indicative Benchmark 13.55%

Largest Underweight

Information Technology
By-7.06%
Fund 15.07%
Indicative Benchmark 22.12%

Monthly Data as of 30-Jun-2021

30-Jun-2021 - Sebastien Mallet, Portfolio Manager,
The portfolio’s main relative overweight positions are in financials, industrials and business services, materials, and health care, while the most significant underweights remain IT, consumer discretionary, and consumer staples. Within the health care sector, we initiated a position in a U.S.-based company which provides life, hospital and medical insurance plans. The company benefits from strong local share and brand recognition. The health care sector lagged the earlier market recovery and a lack of clarity on the reform bill in the U.S. had also been weighing on sentiment, resulting in attractive valuations.

Regions

Total
Regions
6
Largest Region North America 57.40% Was (31-May-2021) 58.41%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: MSCI World Index

Top Contributor^

Japan
Net Contribution 0.72%
Region
-0.20%
Selection 0.92%

Top Detractor^

United States
Net Contribution -2.12%
Region
-0.13%
Selection
-1.99%

^Relative

Quarterly Data as of 30-Jun-2021

Largest Overweight

Pacific Ex Japan
By4.58%
Fund 8.02%
Indicative Benchmark 3.43%

Largest Underweight

North America
By-13.06%
Fund 57.40%
Indicative Benchmark 70.47%

Monthly Data as of 30-Jun-2021

Countries

Total
Countries
21
Largest Country United States 55.36% Was (31-May-2021) 56.27%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: MSCI World Index

Largest Overweight

China
By4.04%
Fund 4.06%
Indicative Benchmark 0.02%

Largest Underweight

United States
By-11.78%
Fund 55.36%
Indicative Benchmark 67.14%

Monthly Data as of 30-Jun-2021

Team (As of 27-Jul-2021)

Sebastien Mallet

Sebastien Mallet is a portfolio manager in the Equity Division at T. Rowe Price, managing the Institutional Global Value Strategy. Mr. Mallet is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Mallet has 19 years of investment experience, 14 of which have been at T. Rowe Price. Prior to joining the firm in 2005, he was a telecom banker at Credit Suisse First Boston in the Tokyo and London offices. Mr. Mallet started his career as a financial analyst with France Telecom, based in Guangzhou, China, and Madrid, Spain.

Mr. Mallet earned an M.A., with honours, in finance from the University of Paris and an M.B.A. from the London Business School.

  • Fund manager
    since
    2012
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    20

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 1.77%
Class I $2,500,000 $100,000 $0 0.00% 75 basis points 0.85%

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