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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 Growth Equity Fund

Seeking to select superior stocks from the broadest global equity opportunity set.

ISIN LU0382932902 Bloomberg TRGBLEA:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

21.91%
$906.9m

1YR Return
(View Total Returns)

Manager Tenure

32.67%
12yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.06
5.56%

Inception Date 27-Oct-2008

Performance figures calculated in USD

31-Aug-2021 - Scott Berg, Portfolio Manager,
Continued uncertainty and growing debate around inflation, interest rates, growth, valuations, and market sentiment has led to heightened complexity, which we believe increases the merits of our strategy. We acknowledge what we don’t know and the risks of our defining “bets.” Although macro considerations are factored into our bottom-up, stock-specific theses, we do not try to predict their outcomes and instead remain focused on corporate earnings and the path of earnings growth over time.
Scott Berg
Scott Berg, Portfolio Manager

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and a vice president of T. Rowe Price Group, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

We are in unprecedented times where there is no standard playbook. Equity markets have remained resilient during a period marked by a very uneven global economic recovery as countries and regions are forging divergent paths to a post-pandemic world. Continued uncertainty and growing debate around inflation, interest rates, growth, valuations, and market sentiment has led to heightened investor complexity, which increases the merits of our strategy: We remain humble in acknowledging what we don't know and the risks of portfolio defining "bets." Although macro considerations are factored into our bottom-up, stock-specific theses, we do not try to predict macro outcomes and instead remain focused on corporate earnings and the path of earnings growth over time. As always, our goal is to fill the portfolio with the best bottom-up ideas that fit our investment framework.

We expect markets to remain volatile in the near term as genuine investor debate about how the world will look on the other side of the pandemic ebbs and flows. We are thoughtfully processing information as it is uncovered and are open-minded that the world can change as time progresses and events unfold. Our default view remains that the recent spate of inflation we have seen is likely transitory due to the ongoing secular forces of globalization, demographics, digitalization, and low interest rates and that the post-pandemic world should be similar to what it was pre-COVID with relatively lower growth and lower rates. However, we recognize the need for some time to pass to gain a clearer picture.

Recognizing the challenges in front of us, we are trying to be balanced within the portfolio, keeping the overall portfolio beta near 1.0, while focusing on picking stocks and owning an idiosyncratic set of names across sectors and countries as opposed to expressing large bets at the sector or country level. While equity valuations are broadly viewed as being above average, we think we are far from a peak of a bubble. However, under the surface, volatility at the single-stock level feels high, suggesting the need to be selective. Overall, we remain encouraged by our portfolio holdings and their long-term ability to deliver�consistent growth to 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 of companies 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 large-cap stocks, 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 around 130 holdings.
  • Individual positions: Typically 0.3%-3.0%, maximum 5%
  • Emerging markets exposure: +/- 15% of benchmark
  • Broad sector ranges: +/- 10% of benchmark
  • Country ranges: +/- 10% of benchmark (USA is +/- 20%)
  • Currency hedging: Currency views incorporated in stock selection
  • Cash target range: Typically less than 5%
  • Expected tracking error: 300 to 700 basis points

Performance (Class A)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 32.67% 21.91% 20.17% 14.21% 16.64%
Indicative Benchmark % 28.64% 14.34% 14.29% 11.27% 12.84%
Excess Return % 4.03% 7.57% 5.88% 2.94% 3.80%

Inception Date 27-Oct-2008

Manager Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Data as of 31-Aug-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 45.97% 21.47% 20.80% 12.92%
Indicative Benchmark % 39.26% 14.57% 14.61% 9.90%
Excess Return % 6.71% 6.90% 6.19% 3.02%

Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Data as of 30-Jun-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 24-Sep-2021 Quarter to DateData as of 24-Sep-2021 Year to DateData as of 24-Sep-2021 1 MonthData as of 31-Aug-2021 3 MonthsData as of 31-Aug-2021
Fund % -1.72% 1.82% 12.97% 3.48% 7.57%
Indicative Benchmark % -1.37% 1.80% 14.32% 2.50% 4.57%
Excess Return % -0.35% 0.02% -1.35% 0.98% 3.00%

Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Indicative Benchmark: MSCI All Country 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. 

31-Aug-2021 - Scott Berg, 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, health care names contributed the most to relative performance. Shares of European contract research organisation Evotec spiked following solid quarterly results. While earnings were weaker than expected due to increased operating expenses and cost of goods, topline growth was strong, and investors remained encouraged by the firm’s growth trajectory. We have high conviction in Evotec’s long-term growth potential, driven by secular tailwinds and deeper customer penetration as end-market businesses choose to outsource these services more often. Conversely, stock selection in real estate detracted modestly from relative returns. Shares of China Resources Mixc Lifestyle Services, a real estate development and management company operating both residential and commercial property management businesses, fell with the broader Chinese market amid concerns about slowing growth in the region. We think the company represents a compelling way to access China’s rising consumption growth via the firm’s asset-light business model. We believe the company should experience strong durable growth over the long term.

Holdings

Total
Holdings
185
Largest Holding Amazon.com 3.71% Was (31-Mar-2021) 3.24%
Other View Full Holdings Quarterly data as of  30-Jun-2021
Top 10 Holdings 16.86% View Top 10 Holdings Monthly data as of  31-Aug-2021

Largest Top Contributor^

Amazon.com
% of fund 3.75%

Largest Top Detractor^

Fiserv
% of fund 0.67%

^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

Amazon.com
3.75%
Was (31-Mar-2021) 3.24%

Top Sale

PPD (E)
0.00%
Was (31-Mar-2021) 0.48%

Quarterly Data as of 30-Jun-2021

30-Jun-2021 - Scott Berg, Portfolio Manager,

Over the quarter, our positioning remained largely sector neutral. We are currently in a very challenging environment where markets are debating the timing of the end to the pandemic and what the world will look like in the next six to 12 months. This is creating more complexity for us as investors, and with so many unknowns, our most pressing goal is to keep a very balanced portfolio of diverse holdings across sectors and regions. As always, we want to own truly innovative companies that can produce solid growth over a two- to three-year time horizon, while paying a reasonable price. With the market flip-flopping between favoring secular and cyclical companies, we are being diligent about using the opportunities presented to pick up names we like at reasonable valuations.

Sector-wise, our most meaningful overweight is in consumer discretionary, with other sectors having much more modest over- and underweights versus the benchmark. Consumer discretionary was also the sector that had the most meaningful shift, as our allocation increased. Meanwhile, our exposure to consumer staples and industrials and business services decreased. Regionally, our allocation to North America decreased, while other regions experienced more modest shifts. We continue to be overweight fast-growing emerging market countries that have low debt-to-gross domestic product ratios and attractive demographic growth, such as India, Indonesia, Vietnam, and the Philippines. The portfolio is also overweight China, with an emphasis on domestic exposure to areas like information technology and health care, where there is a lot of innovation and the government is focused on building vibrant domestic industries.

Consumer Discretionary

The consumer discretionary sector now represents our largest overweight position. In our view, there are more coronavirus beneficiaries in the consumer discretionary sector than anywhere else, but this has led to a dramatic demarcation between winners and losers. COVID-19 has pulled forward years of e-commerce share gains in the span of a few months, and we have an expanded and diverse set of names levered to that trend. We continue to think the market is severely underestimating the profound effect the pandemic has had on the consumer landscape. It is now vital for companies to view their businesses through an omnichannel lens, and it is no longer an option for businesses to ignore the need for an online presence.

  • Pinduoduo is a rising e-commerce leader with the largest number of online buyers in China. The stock was significantly down from its February highs due to skepticism around the company's foray into community grocery. We think Pinduoduo can be the potential winner in community grocery, a key innovation in e-commerce, which we view as a large opportunity set where long-term profitability is feasible.

Energy

While oil prices have rebounded and there is better balance between supply and demand in the short term, we continue to have a subdued medium- and long-term outlook on the sector due to still rampant U.S. shale productivity, less impetus for coordination between oil-producing nations, and growing ESG/terminal value concerns. We currently have no exposure to the energy sector.

  • We exited our position in European integrated oil and gas producer Galp Energia. Our thesis for the company has changed, as the company tilts toward more downstream energy sources where we feel it has less of a competitive advantage. With our conviction reduced, we chose to move on from the stock.

Health Care

The long-term secular tailwinds for the health care sector remain in place. Within the sector, we have meaningful exposure to life sciences tools and services companies making biologics or facilitating research and development efforts for companies in the biopharma space, as well as equipment and supplies companies focused on medical diagnostics and testing. We also own companies tied to the ongoing secular trend of robotic surgery and have exposure to U.S. managed care where fundamentals remain strong and valuations are attractive. Within biotechnology, we continue to seek to�invest in highly innovative companies that have the best chance of dominating their space through drugs likely to become the standard of care in large and well-characterized markets or companies where we have a degree of confidence that the repeatability of their platform gives them the potential to become much larger over time.

  • We eliminated our stake in leading contract research organization PPD following news that the company would be acquired by Thermo Fisher Scientific. We used the sale proceeds to buy shares of other names within the health care space that we believe offer more attractive risk/reward potential.

Information Technology

Advancements in areas like artificial intelligence (AI) and enterprise software are not only affecting technology companies, but also reshaping more traditional industries once viewed as less susceptible to business model disruption. The powerful long-run trends that we believe will drive value creation in the technology sector remain and, in some cases, have been accelerated by the ongoing pandemic. Aftereffects from the pandemic could also result in lasting behavioral changes with more people working remotely and payment methods skewing more digitally. As a result, software and electronic payments are areas of focus for our sector exposure, but we also remain positioned to benefit from increasing AI adoption as well as the growing technology consumption in emerging markets.

  • We initiated a position in Chinese construction software vendor Glodon. Glodon's main source of revenue is from its contribution cost estimation software, where it has a dominant market position and a meaningful competitive advantage. We think there are several tailwinds for Glodon that should lead to strong growth over the long term, including the company's efforts to transition to a subscription-based venue model as well as cross-selling opportunities that should fuel growth in its newer business segments of construction management and design software.
  • We started a position in Manhattan Associates, which develops warehouse and supply chain�execution software primarily used by retail and retail-related customers, third-party logistics,�life sciences, and�high-tech industries.�The company has a synergistic portfolio of cloud products that is well positioned to benefit from ongoing omnichannel retail and direct-to-customer trends. We think the company's cloud revenue can grow substantially as its customer base invests in upgrading systems to stay relevant and meet their customer expectations.

Sectors

Total
Sectors
10
Largest Sector Information Technology 22.57% Was (31-Jul-2021) 22.21%
Other View complete Sector Diversification

Monthly Data as of 31-Aug-2021

Indicative Benchmark: MSCI All Country World Index

Top Contributor^

Financials
Net Contribution 0.70%
Sector
-0.01%
Selection 0.70%

Top Detractor^

Consumer Discretionary
Net Contribution -0.51%
Sector
-0.06%
Selection
-0.45%

^Relative

Quarterly Data as of 30-Jun-2021

Largest Overweight

Consumer Discretionary
By4.78%
Fund 16.91%
Indicative Benchmark 12.13%

Largest Underweight

Energy
By-3.08%
Fund 0.00%
Indicative Benchmark 3.08%

Monthly Data as of 31-Aug-2021

31-Aug-2021 - Scott Berg, Portfolio Manager,
In our view, there are more coronavirus beneficiaries in the consumer discretionary sector than anywhere else, but this has led to a dramatic demarcation between winners and losers. COVID-19 has pulled forward years of e-commerce share gains in the span of a few months, and we own an expanded and diverse set of companies levered to that trend. We continue to think the market is severely underestimating the profound effect the pandemic has had on the consumer landscape. It is now vital for companies to view their businesses through an omnichannel lens, and it is no longer an option for businesses to ignore the need for an online presence.

Countries

Total
Countries
27
Largest Country United States 54.51% Was (31-Jul-2021) 55.70%
Other View complete Country Diversification

Monthly Data as of 31-Aug-2021

Indicative Benchmark: MSCI All Country World Index

Largest Overweight

Germany
By4.10%
Fund 6.47%
Indicative Benchmark 2.37%

Largest Underweight

United States
By-5.09%
Fund 54.51%
Indicative Benchmark 59.60%

Monthly Data as of 31-Aug-2021

Currency

Total
Currencies
18
Largest Currency 65.02% Was (31-Jul-2021) 66.95%
Other View completeCurrency Diversification

Monthly Data as of  31-Aug-2021

Indicative Benchmark : MSCI All Country World Index

Largest Overweight

U.S. dollar
By 4.30%
Fund 65.02%
Indicative Benchmark 60.72%

Largest Underweight

Japanese yen
By -4.08%
Fund 1.76%
Indicative Benchmark 5.84%

Monthly Data as of  31-Aug-2021

Team (As of 10-Sep-2021)

Scott Berg

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and a vice president of T. Rowe Price Group, Inc.

Mr. Berg has 17 years of investment experience, all of which have been with T. Rowe Price. He joined the firm in 2002 as a research analyst covering the business services sector after serving as a summer intern in 2001. In 2005, he joined the global equity team as an associate portfolio manager and in 2008 launched the Global Growth Equity Strategy. Prior to T. Rowe Price, he was the manager of financial analysis and planning for Mead Consumer and Office Products. Previously, Mr. Berg was also employed by McKinsey & Company as a business analyst and was a core team member on the firm's global growth initiative.

Mr. Berg graduated first in his class from Macquarie University in Australia, with a B.Ec. in actuarial studies and finance. He also holds an M.B.A. from the Stanford Graduate School of Business, where he again graduated at the top of his class. Mr. Berg has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2008
  • Years at
    T. Rowe Price
    19
  • 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 0.00% 75 basis points 0.81%
Class Q $1,000 $100 $100 0.00% 75 basis points 0.92%
Class S $10,000,000 $0 $0 0.00% 0 basis points 0.06%

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