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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

Japanese Equity Fund

Seeking to uncover the best investment opportunities across the Japanese equity spectrum.

ISIN LU0230817925 WKN A0MKJ6

3YR Return Annualised
(View Total Returns)

Total Assets
(EUR)

12.93%
€2.3b

1YR Return
(View Total Returns)

Manager Tenure

23.43%
7yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.24
6.46%

Inception Date 16-Dec-2005

Performance figures calculated in EUR

Other Literature

31-Dec-2020 - Archibald Ciganer, Portfolio Manager,
As we enter the next stage of the equity cycle and the evolution of domestic and international political governance progresses, we continue to believe that Japan is a compelling active management case, particularly as the market is under-owned and displays positive change dynamics. We believe the expected global economic recovery in 2021, together with the vaccine rollout, will provide a cyclical tailwind for Japanese equities.
Archibald Ciganer
Archibald Ciganer, Portfolio Manager

Archibald Ciganer is the portfolio manager of the Japan Equity Strategy in the International Equity Division. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Japan, 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 companies in Japan.

Investment Approach

  • Macroeconomic factors have a role, but our approach is primarily bottom-up and research driven.
  • Growth opportunities are found across the capitalization spectrum and across market sectors.
  • Risk is managed at stock, sector, and cap-range levels.
  • Portfolio rebalancing is an effective risk management tool.

Portfolio Construction

  • Typically 80-110 stock portfolio
  • Minimum individual position size is 0.40%
  • Individual position sizes can range +/- 2.00% relative to the benchmark
  • Sector weightings vary from +/- 10% of the benchmark
  • Tracking error expected to range between 300 and 600 bps
  • Target reserves less than 5%

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 23.43% 12.93% 13.84% 12.39% 14.50%
Indicative Benchmark % 3.32% 4.12% 5.84% 7.67% 8.93%
Excess Return % 20.11% 8.81% 8.00% 4.72% 5.57%

Inception Date 16-Dec-2005

Manager Inception Date 26-Dec-2013

Indicative Benchmark: TOPIX Index Net

Data as of 31-Dec-2020

Performance figures calculated in EUR

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 23.43% 12.93% 13.84% 12.39%
Indicative Benchmark % 3.32% 4.12% 5.84% 7.67%
Excess Return % 20.11% 8.81% 8.00% 4.72%

Inception Date 16-Dec-2005

Indicative Benchmark: TOPIX Index Net

Data as of 31-Dec-2020

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 22-Jan-2021 Quarter to DateData as of 22-Jan-2021 Year to DateData as of 22-Jan-2021 1 MonthData as of 31-Dec-2020 3 MonthsData as of 31-Dec-2020
Fund % 3.15% 3.15% 3.15% 0.00% 10.13%
Indicative Benchmark % 2.86% 2.86% 2.86% 1.65% 8.90%
Excess Return % 0.29% 0.29% 0.29% -1.65% 1.23%

Inception Date 16-Dec-2005

Indicative Benchmark: TOPIX Index Net

Indicative Benchmark: TOPIX Index Net

Performance figures calculated in EUR

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 June 2019, 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.

31-Dec-2020 - Archibald Ciganer, Portfolio Manager,
After surging in November, Japanese equities posted more modest positive returns in December. Enthusiasm was kept in check by uncertainty over the pace of the global economic recovery and a resurgence in the number of coronavirus cases worldwide. Domestically, the Bank of Japan made no changes to its monetary policy stance but extended its corporate finance support measures to September 2021. Within the portfolio, our overweight position in Suzuki Motor was a significant detractor. Its shares gave up much of the gains they had registered in November on evidence of strong retail sales trends and management’s provision of an operating profit outlook that exceeded analysts’ expectations. Our position in commercial kitchen equipment producer Hoshizaki also worked against us. Having performed strongly in November, Hoshizaki’s shares retreated in December on growing concerns about the slow-recovery scenario facing the company. Conversely, SoftBank Group was a significant contributor to relative performance; shares in the telecommunications and internet conglomerate posted robust gains over the month on reports that the company is considering a strategy of going private by gradually buying back outstanding shares.

Holdings

Total
Holdings
60
Largest Holding SOFTBANK GROUP CORP 6.36% Was (30-Sep-2020) 6.00%
Other View Full Holdings Quarterly data as of  31-Dec-2020
Top 10 Holdings 39.28% View Top 10 Holdings Monthly data as of  31-Dec-2020

Largest Top Contributor^

SOFTBANK GROUP CORP
By 1.58%
% of fund 6.36%

Largest Top Detractor^

UT
By -0.92%
% of fund 2.14%

^Absolute

Quarterly Data as of 31-Dec-2020

Top Purchase

Hino Motors (N)
1.22%
Was (30-Sep-2020) 0%

Top Sale

NET One Systems (E)
0.00%
Was (30-Sep-2020) 1.06%

Quarterly Data as of 31-Dec-2020

30-Sep-2020 - Archibald Ciganer, Portfolio Manager,

We kept portfolio turnover low in the third quarter after increasing our exposure to quality cyclical companies in the previous three-month period, with a view to benefiting from their potential outperformance as earnings expectations improve from depressed levels.

Machinery

We took some profits in core holding Miura, a manufacturer of efficient gas-powered boilers, as shares have reached record highs. It has seen growth both in its dominant domestic and its international business. The latter has been helped by the reopening of the Chinese economy.

We added to our position in commercial kitchen manufacturer Hoshizaki. The company has a large domestic presence but is also expanding overseas. The coronavirus pandemic has been a severe hit to growth and earnings this year - as commercial kitchens have closed due to virus containment measures - but we believe earnings will recover sharply as companies look to automate and improve kitchen services in response to the pandemic.

We also increased our position in Fujitec, a manufacturer of escalators and elevators. In our view, the company's cyclical nature means that it stands to benefit as earnings expectations improve from depressed levels. Furthermore, we believe that the company is undergoing a period of transformation that will lead to it making better use of cash.

IT and Services

We topped up our holding in UT Group, the provider of temporary staffing services for Japanese manufacturers. While its operations have taken a hit from the coronavirus, the company's prospects stand to improve as the domestic and global economies recover. Demographic and social changes continue to create opportunities for innovative business models in staffing.

Real Estate

We increased our position in Industrial & Infrastructure Fund Investment Corp (IIF), a real estate investment trust that invests in infrastructure assets (25%), manufacturing factories/research and development centers (20%), and logistics facilities (55%). IIF is a defensive income generator with solid dividend growth potential.

Raw Materials and Chemicals

We added to our holding in Sumitomo Seika Chemical, a manufacturer of industrial chemicals and pharmaceutical products. We anticipate that an important catalyst for the stock will be improving supply/demand dynamics for its key product.

Sectors

Total
Sectors
12
Largest Sector It & Services & Others 36.97% Was (30-Nov-2020) 36.60%
Other View complete Sector Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: TOPIX Index

Top Contributor^

Communication Services
Net Contribution 0.92%
Sector
0.14%
Selection 0.78%

Top Detractor^

Consumer Discretionary
Net Contribution -0.38%
Sector
-0.10%
Selection
-0.28%

^Relative

Quarterly Data as of 31-Dec-2020

Largest Overweight

It & Services & Others
By19.23%
Fund 36.97%
Indicative Benchmark 17.74%

Largest Underweight

Commercial And Wholesale Trade
By-4.58%
Fund 0.00%
Indicative Benchmark 4.58%

Monthly Data as of 31-Dec-2020

31-Dec-2020 - Archibald Ciganer, Portfolio Manager,
We identified a number of new investment opportunities in December. Within the automobiles and transportation equipment sector, we initiated a position in a truck manufacturer. We believe the company has a number of tailwinds; in our view, earnings will likely benefit from a cyclical recovery of truck demand outside of Japan and cost restructuring measures. We also participated in the widely anticipated IPO of one of Japan’s leading RoboAdvisors, a disruptor in the wealth management industry, and a beneficiary of the equitisation of savings in Japan.

Team (As of 15-Jan-2021)

Archibald Ciganer

Archibald Ciganer is the portfolio manager of the Japan Equity Strategy in the International Equity Division. He is a vice president of T. Rowe Price Group Inc. and T. Rowe Price Japan, Inc. 

Archibald’s investment experience began in 1999 and he has been with T. Rowe Price since 2007, beginning in the International Equity group. Archibald began his career as a credit analyst with BNP Paribas in Japan. Subsequently, he served as an associate in the firm's Investment Banking Department and most recently as a vice president in Mergers and Acquisitions, where he handled a number of cross-border transactions for blue chip Japanese and foreign corporates.

Archibald earned a B.A. in finance and accounting from Institut d'Etudes Politiques de Paris (sciences po.). Archibald has also earned the Chartered Financial Analyst® designation.

  • Fund manager
    since
    2013
  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    21
Laurence Taylor

Laurence Taylor is a portfolio specialist in the Equity Division. He represents the firm's global equity strategies to institutional clients, consultants, and prospects. Laurence is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Laurence’s investment experience began in 1999, and he has been with T. Rowe Price since 2008, beginning in the Investment Specialist Group. Prior to this, Laurence was employed by AXA Rosenberg as a quantitative portfolio manager, with responsibility for global and European equity portfolios, and began his career at AonHewitt Associates in the UK investment practice. At AonHewitt, Laurence 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.

Laurence earned a B.A., with honors, from Greenwich University. 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
    12
  • Years investment
    experience
    21

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (EUR) Minimum Subsequent Investment (EUR) Minimum Redemption Amount (EUR) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A €1,000 €100 €100 5.00% 160 basis points 1.71%
Class I €2,500,000 €100,000 €0 0.00% 75 basis points 0.81%
Class Q €1,000 €100 €100 0.00% 75 basis points 0.86%

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