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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 Focused Growth Equity Fund

Concentrating high conviction positions in leading global investment prospects.

ISIN LU1438969351 Bloomberg TRGFGAE:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

22.39%
$5.7b

1YR Return
(View Total Returns)

Manager Tenure

32.38%
8yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.25
6.61%

Inception Date 30-Jun-2016

Performance figures calculated in EUR

31-Aug-2021 - David J. Eiswert, Portfolio Manager,
We believe now is the time to distinguish between those companies that will likely succeed and thrive and those that experienced temporary benefits that will likely not prove durable. This approach often requires imagination, a carefully contrarian mindset, and the ability to distinguish good companies from good stocks. We believe making difficult decisions by adhering to our investment framework with the support of our global research platform ultimately can add value for our clients.
David J. Eiswert, CFA
David J. Eiswert, CFA, Lead Portfolio Manager

David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

We are currently experiencing a nuanced market that requires skillful navigation. As global economies begin to heal and emerge from the coronavirus pandemic, it is important to remember that the world is not headed back to the same "pre-COVID-19 normal" but, rather, a "new normal," where fundamental differences exist and behaviors will likely change?potentially in extreme ways. It is equally important to appreciate that, although COVID-19 shutdowns were happening in unison last year, economies around the world are not reopening in the same synchronized fashion. This presents an exciting, intellectual challenge for global active managers and creates an environment of opportunity and choice where active management can truly shine.

�As markets continue to treat 2021 as the "year of the reopening," divergent forces are creating distortions 9A11

developed markets?especially the U.S.?have made impressive progress on vaccine distribution while emerging markets continue to struggle; and consumers appear eager to travel again, while pockets of inflation?especially in certain commodities?are at extreme price levels. At the same time, interest rates remain low and technology continues to unlock capacity, which supports increased productivity and economic growth.

�Overall, we believe economic activity is returning to a more normal pace despite the distortions present in today's market. Although economic growth on a year-on-year basis is not likely to fully normalize until the latter part of 2022, we see economic growth improving in the second half of 2021 and into 2022. While we think it is reasonable to expect increased inflation, some of the recent extreme inflation?in lumber prices, for example?is likely transitory and should wane as the economy emerges from the pandemic. Additionally, the U.S Federal Reserve remains committed to keeping its benchmark rate low for the foreseeable future. We believe an environment with moderate inflation and moderately higher interest rates could be a positive catalyst for equities.

�During times of market transition, our devotion to our investment framework of favoring companies where we have insights into improving or accelerating economic returns in the future?and trying not to pay too much?continues to guide our bottoms-up stock selection. In light of the current market environment, we are being careful not to overly skew the portfolio in any one direction. Ultimately, we favor companies with idiosyncratic ivers that are on the right side of change. Now is the time to distinguish between the "chasm crossers"?those companies that will succeed and thrive?and the "imposters"?those companies that experienced temporary benefits that will likely not prove durable. This approach often requires imagination, a carefully contrarian mindset, and the ability to distinguish good companies from good stocks. Experience has shown that making difficult decisions by adhering to our investment framework with the support of our global research platform ultimately can add value for our clients.

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 that have the potential for above average and sustainable rates of earnings growth. The companies may be anywhere in the world, including emerging markets.

Investment Approach

  • Single decision maker provides clear accountability.
  • Identify “best ideas” by assessing companies in a global sector context, using bottom-up approach to create focused, high- conviction portfolio.
  • Global research platform uses fundamental analysis to identify companies with superior and sustainable growth prospects, and improving fundamentals.
  • Macroeconomic and local market factors are integrated in stock selection decisions.
  • Valuation appeal is measured against local market and broad sector opportunity set.
  • Broad range of stocks across all capitalizations, incorporating developed and emerging markets.
  • 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

  • Number of holdings: typically 60-80 stocks
  • Individual positions: Typically 0.5%-5.0%
  • Emerging markets exposure: +/-15% of benchmark
  • Broad sector ranges: +/-15% of benchmark
  • Country ranges: +/-10% of benchmark (U.S.A. is +/-20%)
  • Currency hedging: Currency views incorporated in stock selection
  • Cash target range: Typically less than 5%, Maximum 10%
  • Expected tracking error: 400 to 800 basis points

Performance (Class A | EUR)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 32.38% 22.39% 21.27% 22.25%
Indicative Benchmark % 30.33% 13.79% 12.97% 13.46%
Excess Return % 2.05% 8.60% 8.30% 8.79%

Inception Date 30-Jun-2016

Indicative Benchmark: MSCI All Country World Index Net

Data as of 31-Aug-2021

Performance figures calculated in EUR

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 40.81% 22.92% 22.30% 22.30%
Indicative Benchmark % 31.90% 13.97% 13.13% 13.13%
Excess Return % 8.91% 8.95% 9.17% 9.17%

Inception Date 30-Jun-2016

Indicative Benchmark: MSCI All Country World Index Net

Data as of 30-Jun-2021

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 27-Sep-2021 Quarter to DateData as of 27-Sep-2021 Year to DateData as of 27-Sep-2021 1 MonthData as of 31-Aug-2021 3 MonthsData as of 31-Aug-2021
Fund % 0.28% 3.55% 16.39% 2.65% 7.58%
Indicative Benchmark % -0.69% 2.97% 19.31% 2.97% 8.31%
Excess Return % 0.97% 0.58% -2.92% -0.32% -0.73%

Inception Date 30-Jun-2016

Indicative Benchmark: MSCI All Country World Index Net

Indicative Benchmark: MSCI All Country World 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 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. 

31-Aug-2021 - David J. Eiswert, Portfolio Manager,
Global equities were broadly positive in August as investors welcomed strong corporate earnings and improving economic conditions. Concerns regarding the spread of the Delta variant of the coronavirus tempered gains, but investors seemed encouraged by further vaccination progress. Within the portfolio, our holdings in financials contributed the most to relative returns. Shares of Axis Bank, an Indian private bank, finished higher, thanks to solid underlying trends in both asset quality and net interest margins. We believe that the CEO’s ongoing efforts to strengthen the balance sheet and improve earnings granularity increases the company’s chances of becoming a steady compounder. Conversely, information technology names weighed on relative performance. Zoom Video Communications reported better-than-expected revenue and earnings, but shares fell in response to declining sales growth. We continue to have high conviction that the company has room to grow internationally as the world moves to a hybrid work model even as the pandemic wanes. In our view, Zoom Video Communications remains a long-term secular winner with a substantial growth runway.

Holdings

Total
Holdings
75
Largest Holding Facebook 4.82% Was (31-Mar-2021) 3.84%
Other View Full Holdings Quarterly data as of  30-Jun-2021
Top 10 Holdings 33.41% View Top 10 Holdings Monthly data as of  31-Aug-2021

Largest Top Contributor^

Facebook
% of fund 4.80%

Largest Top Detractor^

Sony
% of fund 1.69%

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

Quarterly Data as of 30-Jun-2021

Top Purchase

T-Mobile US (N)
2.27%
Was (31-Mar-2021) 0%

Top Sale

Caterpillar (E)
0.00%
Was (31-Mar-2021) 2.17%

Quarterly Data as of 30-Jun-2021

30-Jun-2021 - David J. Eiswert, Portfolio Manager,

We made a number of meaningful shifts in the portfolio over the quarter. We continued to trim exposure to the most fairly valued COVID-19 beneficiaries while adding to positions that we believe will experience accelerating fundamentals in 2021 and 2022. In our view, the global pandemic will continue to accelerate several existing and nascent trends that chiefly benefit growth companies?like those leveraged to e-commerce, digital media, and cloud computing?but we are also mindful of valuations and want to take advantage of opportunities in more cyclical segments of the market that should experience an inflection as the world continues to emerge from the pandemic.

�At the sector level, industrials and business services, which we believe should generally benefit from economic acceleration through 2021 and into 2022, remains the top overweight. We are also overweight financials, where we have recently expanded interest rate exposure, and communication services and consumer discretionary, where we continue to see opportunities in digital media and internet retail. Conversely, our largest sector underweight exposures are materials, information technology, and consumer staples. We continue to see limited growth potential within materials and consumer staples. Information technology features many COVID-19 winners that we trimmed on valuation.

�Regionally, the portfolio's underweight to the U.S. is largely due to stock-specific drivers, but we are also aware U.S. companies could face a harsher regulatory and tax environment under Joe Biden's presidency. Ultimately, we believe the containment of COVID-19 will likely be a larger factor in determining the mid-term path of the economy and its impact on interest rates. We remain overweight developed Europe, but our exposure is idiosyncratic as many of the companies we own have significant global exposure and are thus not overly levered solely to European economies. We are also overweight Japan, where our exposure is likewise driven by stock-specific factors. Although we are closely watching the upward trajectory of U.S. interest rates?which can negatively impact emerging markets?we remain constructive on our emerging markets holdings and believe they should ultimately benefit on the other side of the pandemic.

Industrials and Business Services

Industrials and business services represents our largest sector overweight. Cyclical areas of the market, like industrials, should experience accelerating fundamentals as economic conditions improve and the world reopens, and we believe our exposure within the sector is poised to capture these tailwinds. However, we acknowledge that multiples in certain pockets of the sector have risen along with expectations for economic improvement and large-scale infrastructure reform. We used the recent run in these stocks as an opportunity to reallocate funds into areas where we believe valuations are supportive of further gains.

  • We reduced our stake in U.S. construction equipment manufacturer Caterpillar. While we believe that the stock should continue to benefit in the near term due to solid fundamentals, cyclical upside, and a potential bipartisan infrastructure spending deal, we see less upside potential after the stock's strong run over the past 12 months.
  • We eliminated our stake in Teleperformance, an outsourced customer experience management company, on strength. While we think the company remains well positioned to benefit from continued outsourcing of customer experience management needs, the stock has performed well, and we elected to take profits amid heightened uncertainty as the economy normalizes.

Real Estate

While we do not generally favor real estate given the limited growth profiles in the space, our select idiosyncratic investments within the sector have brought us to a relative overweight. We are being carefully contrarian in our real estate investments, choosing discounted names that we believe are well positioned for long-term growth given their holdings of high-quality assets in desirable markets.

  • We initiated a stake in AvalonBay Communities, one of the largest apartment real estate investment trusts (REITs) in the U.S. We appreciate AvalonBay's high-quality portfolio of assets, which are concentrated in urban and transit-oriented coastal suburban areas with a significant moat. We are also attracted to the company's experience, construction footprint, and financial strength. In our view, AvalonBay should continue to experience improvements in occupancies and rental rates as the pandemic wanes.
  • We initiated a position in Equity Residential, one of the largest apartment REITs in the U.S., with assets concentrated in excellent gateway locations, including Boston, New York, Washington, D.C., Seattle, San Francisco, and Southern California. The firm is operated by a team of strong operators and capital allocators, and we believe that it is well positioned for a strong recovery after struggling early on during the pandemic.

Communication Services

We believe that the lasting behavioral effects from the coronavirus pandemic could accelerate the long-term trend of streaming video services taking share from traditional television and exacerbate the ongoing shift toward digital advertising. We continue to see limited opportunities for strong growth in legacy telecommunications companies, so we remain focused on highly innovative, secular growers within the entertainment and internet services spaces that are on the right side of change and benefiting from accelerating popularity of digital media.

  • We initiated a position in U.S. wireless carrier T-Mobile. Following its recent acquisition of Sprint, we think T-Mobile is well positioned for accelerating revenue and free cash flow growth. In our view, T-Mobile has the potential to become the best wireless network in the U.S. as it realizes synergies from the Sprint merger, increases its exposure to suburban and rural areas as well as the enterprise wireless market segment, and further expands its 5G network leadership. Notably, we believe T-Mobile's accelerating return characteristics are not dependent on common post-pandemic drivers and, thus, think it has the ability to perform well regardless of the near- to medium-term environment.
  • We eliminated our position in Spotify. Our outlook for the company's growth has come down, and we chose to reallocate funds to names where we have higher conviction.

Financials

We continue to have a modest overweight position to the sector and generally prefer nontraditional financials like security exchanges, which have low correlation to the rest of the portfolio and provide support with volatility, and online brokerages, which don't have the credit risk of banks. However, as expectations have grown for a post-pandemic economic expansion and higher interest rates, we have purposefully added exposure to select U.S. banks that we believe will experience improving economic returns as the world emerges from the pandemic. We also maintain exposure to select emerging markets banks that we believe are undervalued and underappreciated.

  • We added shares of Bank of America after initiating a position in March. We think that Bank of America should thrive in a post-pandemic environment where interest rates rise and consumer and business habits shift back to normal. In our view, the market is underestimating the magnitude of improvement that Bank of America could potentially experience in the coming months.

Sectors

Total
Sectors
9
Largest Sector Information Technology 17.62% Was (31-Jul-2021) 17.94%
Other View complete Sector Diversification

Monthly Data as of 31-Aug-2021

Indicative Benchmark: MSCI All Country World Index

Top Contributor^

Communication Services
Net Contribution 0.78%
Sector
0.01%
Selection 0.77%

Top Detractor^

Consumer Discretionary
Net Contribution -1.39%
Sector
-0.07%
Selection
-1.32%

^Relative

Quarterly Data as of 30-Jun-2021

Largest Overweight

Communication Services
By6.95%
Fund 16.38%
Indicative Benchmark 9.43%

Largest Underweight

Information Technology
By-5.05%
Fund 17.62%
Indicative Benchmark 22.67%

Monthly Data as of 31-Aug-2021

31-Aug-2021 - David J. Eiswert, Portfolio Manager,
We believe that the lasting behavioural effects from the COVID-19 pandemic could accelerate the long-term trend of streaming video services taking share from traditional television and exacerbate the ongoing shift toward digital advertising. We continue to see limited opportunities for strong growth in legacy telecommunications companies, so we remain focused on highly innovative, secular growers within the entertainment and internet services spaces that are on the right side of change and benefitting from the accelerating popularity of digital media.

Countries

Total
Countries
17
Largest Country United States 55.79% Was (31-Jul-2021) 56.78%
Other View complete Country Diversification

Monthly Data as of 31-Aug-2021

Indicative Benchmark: MSCI All Country World Index

Largest Overweight

United Kingdom
By6.21%
Fund 9.85%
Indicative Benchmark 3.64%

Largest Underweight

United States
By-3.81%
Fund 55.79%
Indicative Benchmark 59.60%

Monthly Data as of 31-Aug-2021

Currency

Total
Currencies
11
Largest Currency 65.31% Was (31-Jul-2021) 66.68%
Other View completeCurrency Diversification

Monthly Data as of  31-Aug-2021

Indicative Benchmark : MSCI All Country World Index

Largest Overweight

British pound sterling
By 6.25%
Fund 9.87%
Indicative Benchmark 3.62%

Largest Underweight

Canadian dollar
By -2.82%
Fund 0.00%
Indicative Benchmark 2.82%

Monthly Data as of  31-Aug-2021

Team (As of 10-Sep-2021)

David J. Eiswert, CFA

David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.

Mr. Eiswert has 19 years of investment experience, 16 of which have been with T. Rowe Price. Prior to joining the firm in 2003, he was an analyst at Mellon Growth Advisors and Fidelity Management and Research. He also worked as a consultant in the communications industry.

Mr. Eiswert earned a B.A., summa cum laude, in economics and political science from St. Mary's College of Maryland and an M.A. in economics from the University of Maryland, College Park. He also has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2012
  • Years at
    T. Rowe Price
    18
  • Years investment
    experience
    21
Josh Nelson

Josh Nelson is a director of research for North America in the U.S. Equity Division. In addition, he is a co-portfolio manager of the US Structured Research Equity Strategy, cochairman of the US Structured Research Equity Strategy's Investment Advisory Committee, and a member of the Research Governance Oversight Committee. He also serves on the Equity Steering Committee. Josh is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.

Josh’s investment experience began in 2003, and he has been with T. Rowe Price since 2007, beginning in the U.S. Equity Division as an investment analyst covering business services and education. Subsequently, he became an associate portfolio manager of the Global Focused Growth Equity Strategy from 2010 to 2018. Prior to this, Josh was employed by Citigroup as an investment banking analyst.   

Josh earned a B.S., with honors, in industrial and systems engineering from the University of Florida and an M.B.A., with honors, in finance from the University of Pennsylvania, The Wharton School.

  • Fund manager
    since
    2009
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    19
Samuel Ruiz

Samuel Ruiz is a portfolio specialist in the Equity Division. He is a vice president of T. Rowe Price Australia Ltd.

Sam’s investment experience began in 2008, and he has been with T. Rowe Price since 2020, beginning in the Equity Division working on the Global and Australia Equity Strategies. Prior to this, Sam was employed by Macquarie Investment Management in the area of strategy in the Equities Division.

Sam earned a bachelor of applied finance degree from the University of South Australia.

  • Years at
    T. Rowe Price
    1
  • Years investment
    experience
    13
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 (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 N/A 75 basis points 0.85%
Class Q $1,000 $100 $100 N/A 75 basis points 0.92%

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