Audience for the document: Share Class: Language of the document:


Share Class: Language of the document:

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®) 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

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

Please enter valid search characters


Japanese Equity Fund

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

ISIN LU1569987610 Bloomberg TRPJEIU:LX

3YR Return Annualised
(View Total Returns)

Total Assets


1YR Return
(View Total Returns)

Manager Tenure


Information Ratio
(3 Years)

Tracking Error
(3 Years)


Inception Date 20-Feb-2017

Performance figures calculated in USD

31-Aug-2021 - Archibald Ciganer, Portfolio Manager,
We believe the global economic recovery will continue to accelerate this year and beyond and that we will slowly return to some semblance of “normality.” Given Japan is one of the most cyclical and open markets—highly levered to the health of the world economy—we believe it will be a major beneficiary of the prospective global recovery. The rapid economic recovery evident in China, Japan’s major trading partner, represents a significant tailwind, in our view.
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.

Click for Manager Outlook


Manager's Outlook

The path to Japan's economic recovery is beset with uncertainty, depending on progress of the vaccine rollout, the potential for "new waves," and the effectiveness of the public health responses to these outbreaks, both domestically and worldwide.

That said, we believe the anticipated global economic recovery will continue to build and broaden through 2021 and beyond and that we will slowly return to some semblance of "normality." Given Japan is one of the most cyclical and open markets, highly levered to the health of the global economy, we believe it will be a major beneficiary of the prospective global recovery. Certainly, the rapid economic recovery evident in China, Japan's major trading partner, represents a significant tailwind.

As we enter the next stage of the equity cycle, amid a broadening domestic and global economic recovery, we continue to believe that Japan is a compelling active management case, particularly as the market is under-owned, continues to undergo governance reform and improvement, and displays positive change dynamics.

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.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

Portfolio Construction

  • Typically 80-110 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 | USD)

Annualised Performance

  1 YR 3 YR
5 YR
Since Inception
Fund % 18.32% 11.05% N/A 13.26%
Indicative Benchmark % 19.10% 6.57% N/A 8.12%
Excess Return % -0.78% 4.48% N/A 5.14%

Inception Date 20-Feb-2017

Indicative Benchmark: TOPIX Index Net

Data as of 31-Aug-2021

Performance figures calculated in USD

  1 YR 3 YR
5 YR
Since Inception
Fund % 24.26% 10.33% N/A 13.12%
Indicative Benchmark % 23.38% 5.95% N/A 7.97%
Excess Return % 0.88% 4.38% N/A 5.15%

Inception Date 20-Feb-2017

Indicative Benchmark: TOPIX Index Net

Data as of 30-Jun-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 22-Sep-2021 Quarter to DateData as of 22-Sep-2021 Year to DateData as of 22-Sep-2021 1 MonthData as of 31-Aug-2021 3 MonthsData as of 31-Aug-2021
Fund % 4.38% 7.19% 0.88% 4.52% 3.84%
Indicative Benchmark % 4.45% 6.49% 7.69% 3.06% 1.66%
Excess Return % -0.07% 0.70% -6.81% 1.46% 2.18%

Inception Date 20-Feb-2017

Indicative Benchmark: TOPIX Index Net

Indicative Benchmark: TOPIX 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 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-Aug-2021 - Archibald Ciganer, Portfolio Manager,
Japanese equities rose in August, outperforming their developed market peers, boosted by the country’s accelerating COVID-19 vaccination rates. Within the portfolio, SMS was the top contributor. The leader in nurse and care worker recruiting reported first-quarter operating profit ahead of consensus and the management’s own targets. Despite a coronavirus-related downturn in hiring activity, the firm has been hiring new recruiters, with 100 joining in the first quarter alone. Daikin Industries also added. The air conditioner producer reported a historical high quarterly result, driven by strong residential air conditioner demand. The company said it had faced no issues with semiconductor chip procurement, highlighting the quality of its operational execution. Conversely, UT Group, a provider of temporary staffing services for domestic manufacturers, was a major laggard. Sentiment on the stock took a hit from carmaker Toyota Motor’s announcement that it would cut production in September by 40% from its previous plan, which could lead to a scaling back in hiring. Shares of Freee were also weak. The software-as-a-service firm announced a fiscal-year earnings forecast which showed slowing revenue growth. Over the long term, it continues to benefit from small- and medium-sized enterprises transitioning from packaged software to the cloud.


Largest Holding Keyence 4.67% Was (31-Mar-2021) 4.04%
Other View Full Holdings Quarterly data as of  30-Jun-2021
Top 10 Holdings 37.56% View Top 10 Holdings Monthly data as of  31-Aug-2021

Largest Top Contributor^

% of fund 4.66%

Largest Top Detractor^

% of fund 4.53%

^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

Eisai (N)
Was (31-Mar-2021) 0%

Top Sale

Was (31-Mar-2021) 7.23%

Quarterly Data as of 30-Jun-2021

30-Jun-2021 - Archibald Ciganer, Portfolio Manager,

Japanese growth stocks outperformed massively in 2020, followed by a reversal with value stocks outperforming year-to-date this year. We are usually overweight growth stocks, with three-quarters of the portfolio invested in secular growth companies and the remainder in companies undergoing transformations, usually value companies. The reversal from growth to value did not come as a surprise to us, and the portfolio was restructured last year to stay in line with the changing market dynamics.

In the short term, given the ongoing pandemic, we believe the opportunity is in the recovery of the services sector, which will be fueled by the reopening of the domestic economy. The improvement in quality smaller-cap companies reflected by improved governance, and capital efficiency and shareholder return trends, allows for an opportunistic position in our strategy. The digitalization of corporate Japan has also accelerated the growth of many companies, and, with continued digital reform, the investment opportunity persists.

The portfolio's significant sector overweight positions are in IT and services and machinery, while its considerable underweight exposures are in banks, commercial and wholesale trade, and transportation and logistics.

IT and Services

IT and services is the portfolio's biggest overweight and its largest absolute weighting.

  • We participated in the initial public offering of Visional, an HR-tech company with the potential to disrupt the traditional recruiting market in Japan. Its BizReach platform for professional jobseekers is likely to enjoy a strong cyclical recovery as Japan moves past the pandemic, and its high profitability and cash generation will power investments in more early-stage projects, notably the "HRMOS" cloud-based talent-management system.


We moved overweight the pharmaceutical sector over the quarter.

  • We bought shares of Eisai, a Japanese pharmaceutical company with global operations. The company's revenue split is approximately 40% Japan, 47% U.S., 7% Europe, and 6% the rest of the world. Its key franchises are in Alzheimer's disease with Aricept and acid reflux with Aciphex. Our investment is predicated on Eisai gaining approval for drugs in its pipeline: During the quarter, the U.S. Food and Drug Administration granted approval for Eisai's Alzheimer's drug aducanumab (marketed as Aduhelm).


Largest Sector It & Services & Others 37.32% Was (31-Jul-2021) 36.72%
Other View complete Sector Diversification

Monthly Data as of 31-Aug-2021

Indicative Benchmark: TOPIX Index

Top Contributor^

Health Care
Net Contribution 0.83%
Selection 0.74%

Top Detractor^

Industrials & Business Services
Net Contribution -1.27%


Quarterly Data as of 30-Jun-2021

Largest Overweight

It & Services & Others
Fund 37.32%
Indicative Benchmark 16.59%

Largest Underweight

Fund 0.00%
Indicative Benchmark 4.91%

Monthly Data as of 31-Aug-2021

31-Aug-2021 - Archibald Ciganer, Portfolio Manager,
Within the information technology and services sector, we added a position in a leading player in a relatively new growth industry in Japan, services for children and adults with disabilities. Reimbursement schedules are full of incentives that reward high-quality operators achieving measurable results, and this is leading to consolidation towards the few larger private companies in the sector. In our view, the company has a unique vision of becoming a comprehensive platform for disability services generally, and is rapidly growing software-as-a-service and matching solutions for welfare facilities, public schools, and companies looking to hire the disabled.

Team (As of 10-Sep-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
  • Years at
    T. Rowe Price
  • Years investment
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
  • 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 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.