T. Rowe Price T. Rowe Price Trusty Logo


Continental European Equity Fund

Style-agnostic, quality-driven European equity investment.

ISIN LU0938199691 Bloomberg TRPEXQA:LX

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 24-May-2013

Performance figures calculated in GBP

Other Literature

30-Apr-2020 - Dean Tenerelli, Portfolio Manager,
Policymakers have responded forcefully to counter the economic impact of the coronavirus. This has helped most asset classes including European equities claw back some losses after precipitous declines. However, we continue to face a severe economic and social shock, which may well endure beyond the current consensus. We are working with our analysts to identify where we can buy better-quality businesses at even more attractive prices.
Dean Tenerelli
Dean Tenerelli, Portfolio Manager

Dean Tenerelli is portfolio manager in the Equity Division at T. Rowe Price. He manages the Europe Equity Strategy, a position he has held since October 2005, and is chairman of its Investment Advisory Committee. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Click for Manager Outlook


Manager's Outlook

Markets and investors are facing one of the most uncertain and challenging environments in modern times. Both the depth and duration of the crisis caused by the outbreak of the novel coronavirus are unknown.

Policymakers have started to respond forcibly, in both monetary and, increasingly, fiscal terms. Most asset classes have declined precipitously, including European equities. We recognize the severity of the economic and social shock that we are facing-and it may well endure beyond the current consensus.

However, many companies' valuations have compressed dramatically, and we find that we are being presented with some real opportunities when we assess their estimated longer-term fundamental value. We have moved from a position at the start of the year when very few companies offered an attractive valuation to one now where some good and very good companies appear "cheap."

Although the scale of market declines has been painful, our relative performance has been quite resilient. That our portfolio has proven to be quite well suited to the environment is attributable, we believe, to our focus on higher-quality companies, biased toward lower leverage and strong competitive advantages, acquired at conservatively derived relative valuations.

We are now working with our analysts to identify better-quality businesses at even more attractive prices. Specific stocks that are currently of interest can be found across many industries, ranging from luxury goods, industrials, selectively in energy and materials, and even in consumer staples after their derating.

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 diversified portfolio of stocks of companies in Europe (excluding the UK).

Investment Approach

  • Fundamental research is critical to successfully identify and assess long-term investment opportunities. We look for companies with high returns on capital and capable of providing sustainable earnings across the market cycle.
  • Style agnostic, focus on quality. By avoiding style constraints, we can invest in quality companies and maintain a balanced portfolio through market cycles.
  • Disciplined approach to valuation. We aim to buy businesses at a clear discount to their intrinsic value.
  • Risk management is essential and is assisted by diversification, quantitative analysis, and automatic stabilizers built in to our investment process.

Portfolio Construction

  • Typically 40-70 stocks
  • Individual position size up to 4.0% relative to the indicative benchmark
  • Sector ranges: typically +/- 10% relative to the indicative benchmark
  • Country ranges: typically +/- 10% relative to the indicative benchmark
  • Expected Tracking Error: typically 3.0% to 6.0%
  • Information Ratio objective: >0.5
  • Cash target range: fully invested, typically less than 5.0%
  • Turnover range: 40%-100%

Performance (Class Q | GBP)

Annualised Performance

  1 YR 3 YR
5 YR
Since Inception
Fund % -2.51% 2.85% 6.33% 7.67%
Indicative Benchmark % -8.08% 0.00% 4.03% 5.34%
Excess Return % 5.57% 2.85% 2.30% 2.33%

Inception Date 24-May-2013

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index Net

Data as of  30-Apr-2020

Performance figures calculated in GBP

  1 YR 3 YR
5 YR
Since Inception
Fund % -4.62% 1.33% 4.77% 6.79%
Indicative Benchmark % -8.59% -1.21% 3.07% 4.74%
Excess Return % 3.97% 2.54% 1.70% 2.05%

Inception Date 24-May-2013

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index Net

Data as of  31-Mar-2020

Performance figures calculated in GBP

Recent Performance

  Month to DateData as of 02-Jun-2020 Quarter to DateData as of 02-Jun-2020 Year to DateData as of 02-Jun-2020 1 MonthData as of 30-Apr-2020 3 MonthsData as of 30-Apr-2020
Fund % 0.61% 16.12% -2.36% 6.37% -9.64%
Indicative Benchmark % 1.46% 14.60% -5.42% 4.45% -12.43%
Excess Return % -0.85% 1.52% 3.06% 1.92% 2.79%

Inception Date 24-May-2013

Indicative Benchmark: FTSE Developed Europe ex United Kingdom Index Net

Indicative Benchmark: FTSE Developed Europe ex United Kingdom 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.

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.

30-Apr-2020 - Dean Tenerelli, Portfolio Manager,
The FTSE All-World Developed Europe ex UK Index surged in April, rebounding from deep losses, on signs of easing lockdown restrictions in some major economies, aggressive stimulus measures, and hopes of a coronavirus treatment. However, gains were curbed by the European Central Bank’s (ECB) decision to maintain its current policy stance rather than expand quantitative easing to make up for the lack of fiscal measures to bolster economies. The portfolio beat the benchmark thanks to strong stock picking. Financials, consumer discretionary and communication services were the top-contributors. Health care and real estate were the main drags on performance. Financials rose in the market rally leading up to the ECB’s policy-setting meeting at the end of the month. Bawag, the fourth-largest bank in Austria, was the main contributor to relative performance after posting first-quarter results that were seen as solid overall by investors even though the coronavirus dented profits. On the negative side, Getinge, a Swedish medical technology company that is a leading provider of surgical products and operating room supplies, curbed returns in health care. Investors took profits after strong performance this year underpinned by expectations for continued increased demand for ventilators and life support equipment for coronavirus patients.


Largest Holding Roche Holding 5.27% Was (31-Dec-2019) 6.35%
Other View Full Holdings Quarterly data as of 31-Mar-2020
Top 10 Holdings 31.10% View Top 10 Holdings Monthly data as of 30-Apr-2020

Largest Top Contributor^

Roche Holding
By 1.77%
% of fund 5.18%

Largest Top Detractor^

By -0.71%
% of fund 2.75%


Quarterly Data as of 31-Mar-2020

Top Purchase

Teleperformance (N)
Was (31-Dec-2019) 0.00%

Top Sale

Zurich Insurance Group
Was (31-Dec-2019) 3.57%

Quarterly Data as of 31-Mar-2020

31-Mar-2020 - Dean Tenerelli, Portfolio Manager,

Correction Reveals Rich Seam of Opportunities

The marked market decline and continuing volatility have presented us with a much broader range of opportunities than was available previously. Portfolio Manager Dean Tenerelli continues to adopt a measured, stock-by-stock appraisal of opportunities identified by the broader analyst team and by revisiting companies he has known for many years that are trading once again at fundamentally attractive levels. Long experience tells him that even when a company meets his quality criteria, it pays to be patient if the valuation does not appear attractive. He is prepared to wait and monitor the share price until it moves into the right area, and this has happened in many cases within the last few weeks. This has resulted in a heightened level of portfolio activity.�

  • We added 11 new company names to the portfolio during the quarter, four of them in March.
  • We added most to industrials and business services, largely within capital goods, and to some financials, before the crisis.�
  • There is more of a concentration in cyclical areas, especially related to travel and industrial activity, such as Amadeus IT.
  • We moved from an overweight to virtually a zero weight in utilities as valuations became less attractive, exiting Iberdrola.
  • We reduced our overweight in health care, trimming names that have outperformed, such as Getinge and Roche Holding.

Industrials and Business Services

We adjusted our mix of holdings in industrials and business services, raising our overweight. Our additions are mainly in capital goods, with some in the less cyclical commercial services group. These are good businesses whose decline is disproportionate to the change in their intrinsic value. We continue to invest in high-quality businesses with strong industry positions and durable earnings that are now more realistically valued when these opportunities arise.

In terms of industry, our largest overweights are in electrical equipment and in machinery. In the former, we own the shares of Schneider Electric, a global specialist in energy management and automation, and Prysmian, the world's largest global telecommunications cable manufacturer. In the latter, our largest investments are Gea Group, which provides process technology and components for the food processing industry worldwide, and Epiroc, a leading provider of products, solutions, and services to the global mining and infrastructure markets. We are also slightly overweight in professional services exposure, holding RELX, the world's leading publisher of science journals and a provider of risk assessments on transactions with retail customers.

  • We invested in Valmet, a leading Finland-based provider of services and equipment to the paper, board, and pulp industry, using funds recycled from the sale of Capgemini, a lower-quality company. Valmet has pricing power, margins are increasing, and it is taking market share. It is well positioned to benefit from structural changes in its end markets.
  • We started an investment in Teleperformance, a global, omnichannel, customer experience provider that enables customer acquisition, customer care, technical support, debt collection, social media content moderation, and other services in 80 countries. The market is underestimating the momentum of the core business, which should see resilient volumes in terms of calls and interactions with customers during these critical times, and, in the longer term, the switch in business mix to specialized services, such as visa application and interpreting, which should improve margins. Management also has a strong track record of deploying capital into value-added, accretive deals, which should continue as they enhance their portfolio.
  • We exited our holding in Dassault Aviation, a French aerospace and defense company, to recycle funds into other opportunities. The thesis that earnings would double between 2016 and 2019 has played out, and business jet orders are expected to be flat this year, with some fighter jet orders being deferred until next year. The company also expects a spike in research and development expenditure.


We moved from an underweight to a more neutral exposure to financials, where valuations have become more attractive, especially for banks.

We further increased our allocation to banks, where we are now overweight, opening a position in Julius Baer, a Swiss private bank and asset manager. We also hold Nordea Abp, the largest Nordic financial services provider, and Bawag, Austria's fourth-largest lender. We exited BNP Paribas, a large eurozone lender, which is likely to struggle in a recessionary environment.

Many banks are trading at historically low valuations amid weak demand for loans, persistently low interest rates, and a stringent regulatory environment. However, we remain cautious because the industry remains challenged by slower economic growth, poor return on equity, and low capital generation. Our focus is on better-quality names, typically in more consolidated markets, resulting in a relatively more resilient return on equity. Some of our investments also have the potential to improve returns due to self-help initiatives, such as Nordea Bank Abp, a new position.

One common theme is an objective to generate more defensive and sustainable returns from fee income, as opposed to lending or trading activities. Our investments include Spanish lender Bankinter, one of the best capitalized in Europe; Finecobank Banca Fineco, a diversified financial institution in Italy that attracts deposits through its online bank; and KBC, a leading Belgian bancassurer and financial company, which also has strong positions in central and Eastern Europe.

We are modestly underweight insurance, where our investments are mainly determined by our stock-specific approach. We raised our exposure during the quarter with a new investment in Munchi Re, a large, high-quality global reinsurer with a sizable primary insurance business, on share price weakness. Our main holding in the industry is Zurich, which spans Europe, Latin America, North America, and Asia. The company is increasing return on capital, which we expect to gain momentum as it�streamlines operations. We also hold Germany-based Allianz, a leading global insurer and asset manager.

  • We invested in Swiss private bank and asset manager Julius Baer. The company is highly profitable and should be able to consistently deploy free cash flow via bolt-on acquisitions, dividends, and buybacks. Cyclical headwinds on fund flows and gross margin should begin to abate and help revenue growth. The new management also seems determined to implement efficiencies and boost operating leverage.
  • We replaced BNP Paribas, a large eurozone bank, with Munich Re, a stronger, better company. The shares sold off on fears that coronavirus claims may have a sizable impact on this year's earnings. We believe, however, that the impact on earnings should be manageable and leave capital untouched. As we emerge from the crisis, the company should benefit from repricing and increased demand for reinsurance from weaker capitalized insurers. Munich Re is a well-positioned, well-run, and strongly capitalized business, which, in our view, can generate a low-double-digit return on equity across the business cycle.

Consumer Discretionary

We raised our overweight allocation to consumer discretionary by increasing our exposure to the household durables industry, which is supported at this late stage in the cycle by lower interest rates and easier borrowing, and raising our exposure to the textiles, apparel, and luxury goods segment, where strong brands and companies are beginning to emerge at attractive valuations.

We reduced our exposure to the automobile industry, selling Daimler, a leading global manufacturer of premium automobiles and trucks, which has been hit by falling sales in the U.S., Europe, and China, due to� the economic slowdown and rising trade protectionism and due to a shift to electric vehicles, which requires huge investment. However, we still own shares in auto components company Autoliv, a best-in-class supplier of automotive safety systems, and Brembo, a high-quality family-owned auto supplier that makes braking systems, which we believe will be largely immune to the electrification trends.

We further raised our overweight in household durables, buying shares in de Longhi, an Italian company that designs, produces, and markets products for home and business comforts. We also hold SEB, a France-based household equipment manufacturer that has leading global brands that are coping resiliently amid slowing economic growth. And we have a position in Husqvarna, a Sweden-based company that makes and markets outdoor power and consumer watering products, cutting equipment, and diamond tools for the construction and stone industries.

We reduced our underweight to the textiles, apparel, and luxury goods industry by investing in Prada, an iconic fashion brand. We also have a sizable investment in EssilorLuxottica, the world's leading eyewear company, which would normally benefit from structural growth in developed markets and has significant expansion potential in emerging markets.

In retail, we own the shares of Zalando, Europe's largest online retailer, which gives us an exposure to internet retailing, a disruptor of bricks-and-mortar apparel retailers.

  • We initiated an investment in Italy-based de Longhi, taking advantage of share price weakness. Negative one-off events in 2019, such as restructuring in the Turkish and Latin America operations and trade dispute uncertainty, pushed the stock down to five-year lows. Even though the coronavirus may affect the top line, the company is now better equipped to weather the slowdown. A good start to the year was driven by an upturn in coffee and food preparation; China production showed signs of recovery; and raw material prices are expected to be a tailwind in financial year 2020, more than offsetting higher logistics costs.
  • We started a position in Prada. The business has a high profitability potential given its strong position in the luxury retail and leather goods markets and strong presence in Europe, the U.S., and the Asia Pacific. It also has good pricing power and efficient cost structures. Valuation is attractive after disappointing like-for-like sales growth in recent years, but we believe the family owners have a good chance of revitalizing the brand over the next few years.

Health Care

Health care held up relatively well over the period as investors favored high-quality, steady earners in defensive sectors and anticipated increased demand for drugs and medical services because of the coronavirus outbreak. We moderated position sizes in Roche Holding, a Swiss pharmaceutical company, and Getinge, a leading Sweden-based provider of surgical products and operating room supplies, after strong performance.

We have a sizable position in pharmaceuticals, which also includes Novartis, a Swiss manufacturer of health care and nutritional products; Denmark-based Novo-Nordisk, which develops, manufactures, and distributes health care products; and France-based Sanofi. We also hold Grifols, a Spain-based company engaged in the manufacture of biopharmaceuticals, which is expanding in China.


We reduced our overweight allocation to utilities to a modest overweight as risk/reward became less appealing after the sector's strong performance in volatile markets. Also, given the economic and social pressures that are now likely, these companies mostly will not be immune to sharp reductions in demand and potentially more adverse regulatory environments.

We are overweight gas utilities and multi-utilities, holding Italgas, which is Italy's largest gas distributor; Hera, an Italian company that operates in the waste, water, gas, and electricity segments; and E.ON, a German energy company that operates in generation, renewables, global commodities, and exploration and production.

  • We eliminated our holding in Iberdrola, a Spain-based integrated energy utility that operates in the renewables, electricity transmission and distribution markets, after a strong run this year and increased political uncertainty in Spain. The shares looked fully valued, and we believed they had little room to rise much further.


Largest Sector Industrials & Business Services 19.17% Was (31-Mar-2020) 17.45%
Other View complete Sector Diversification

Monthly Data as of 30-Apr-2020

Indicative Benchmark: FTSE All World Developed Europe ex United Kingdom Index

Top Contributor^

Health Care
Net Contribution 1.26%
Selection 1.04%

Top Detractor^

Information Technology
Net Contribution -0.65%


Quarterly Data as of 31-Mar-2020

Largest Overweight

Industrials & Business Services
Fund 19.17%
Indicative Benchmark 13.85%

Largest Underweight

Consumer Staples
Fund 4.39%
Indicative Benchmark 13.50%

Monthly Data as of 30-Apr-2020

30-Apr-2020 - Dean Tenerelli, Portfolio Manager,
We opened positions in two attractively valued, high-quality company names in April: a major airport company that we believe will prove resilient in current conditions, and an integrated oil and gas company that has reduced costs and is set to benefit from new projects. We exited Capgemini, a leading global management consulting, outsourcing and professional services company; BNP Paribas, a leading French bank in the eurozone; and Konecranes, a Finland-based industrial cranes manufacturer. Our most overweight sectors in relative terms are industrials and business services, materials, consumer discretionary and communication services. Consumer staples and information technology remain our largest underweights.


Largest Country Switzerland 17.47% Was (31-Mar-2020) 16.33%
Other View complete Country Diversification

Monthly Data as of 30-Apr-2020

Indicative Benchmark: FTSE All World Developed Europe ex United Kingdom Index

Top Contributor^

Net Contribution 0.86%
Selection 0.62%

Top Detractor^

Net Contribution -0.31%


Quarterly Data as of 31-Mar-2020

Largest Overweight

Fund 10.94%
Indicative Benchmark 4.93%

Largest Underweight

Fund 16.97%
Indicative Benchmark 21.80%

Monthly Data as of 30-Apr-2020

30-Sep-2019 - Dean Tenerelli, Portfolio Manager,
We deepened our underweight allocation in consumer staples, the largest in the portfolio, by selling Essity Aktiebolag, a global hygiene products company, taking profits after a strong run. In our view, the margin-improvement thesis has largely played out and is factored into the share price. Raw material prices have also started to decline, and the company could find it more challenging to maintain price increases. Consequently, the shares may struggle to rise much further. In contrast, we increased our overweight exposure to industrial and business services, health care and real estate.

Team (As of 21-May-2020)

Dean Tenerelli

Dean Tenerelli is portfolio manager in the Equity Division at T. Rowe Price. He manages the Europe Equity Strategy, a position he has held since October 2005, and is chairman of its Investment Advisory Committee. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Tenerelli has 28 years of investment experience, 19 of which have been at T. Rowe Price. He joined the firm in 2000 as an equity research analyst and was appointed co-manager of the firm's Global Equity Strategy in 2004. Prior to joining T. Rowe Price, Mr. Tenerelli served as a director for Credit Suisse Asset Management, where he was a senior telecommunications analyst. Prior to Credit Suisse Asset Management, Mr. Tenerelli worked as assistant portfolio manager at Artisan Partners (1995-2000). He began his investment career in 1993 at Banesto Bolsa in Madrid as an equity analyst following Spanish equities. Mr. Tenerelli later became an international equity analyst, focused on Europe, for Waddell and Reed in Kansas City, MO. In 1995, he moved to Artisan Partners as an assistant portfolio manager.

A graduate of Rutgers University with a B.A. in economics, Mr. Tenerelli earned an M.B.A. from Escuela Superior de Administración y Direccion de Empresa and an M.A. in international management from American Graduate School of International Management (Thunderbird).

  • Fund manager
  • Years at
    T. Rowe Price
  • Years investment
Andrew Clifton

Andrew Clifton is a portfolio specialist in the Equity Division at T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Mr. Clifton has over 30 years of investment experience, nine of which have been at T. Rowe Price. Prior to joining the firm in 2010, he was an executive director at UBS Global Asset Management. Prior to that, he was a vice president at Merrill Lynch.

Mr. Clifton earned a B.Sc. in economics from the London School of Economics and an M.Sc. in econometrics from the University of Southampton.

  • Years at
    T. Rowe Price
  • Years investment

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 I €2,500,000 €100,000 €0 0.00% 65 basis points 0.75%
Class Q €1,000 €100 €100 0.00% 65 basis points 0.82%

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

Tap to dismiss


Latest Date Range
Audience for the document: Share Class: Language of the document:
Download Cancel


Share Class: Language of the document:
Download Cancel
Sign in to manage subscriptions for products, insights and email updates.
Continue with sign in?
To complete sign in and be redirected to your registered country, please select continue. Select cancel to remain on the current site.
Continue Cancel
Once registered, you'll be able to start subscribing.

By clicking the Continue button, I acknowledge that I have read and accepted the Privacy Notice

Continue Back

Change Details

If you need to change your email address please contact us.
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

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

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest