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Strategy

Emerging Markets Equity

The Emerging Markets Equity Composite seeks long-term capital appreciation primarily through investment in established companies, in developing markets, with faster earnings growth and reasonable valuation levels relative to market/sector averages.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

12.56%
3.54%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

3.46%
1.17

Inception Date 31-Dec-1995

Performance figures calculated in USD

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Gonzalo Pángaro
Gonzalo Pángaro, Portfolio Manager

Gonzalo Pangaro is the lead portfolio manager for the firm's Emerging Markets Equity Strategy and is chairman of the strategy's Investment Advisory Committee.  Mr. Pangaro assumed portfolio management responsibilities in 2004. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd and a member of the International Equity Steering Committee.

 

Strategy

Investment Approach

  • Employ fundamental analysis to identify companies with sustainable above-market earnings growth rates.
  • Focus on franchise strength, management team quality, free cash flow, and financing/balance sheet structure.
  • Verify relative valuation appeal versus both local market and broad sector opportunity set.
  • Apply negative screening for macroeconomic and political factors to temper bottom-up enthusiasm for specific securities.

Portfolio Construction

  • Typically 80-100 stocks
  • Expected 3-7 tracking error
  • Individual positions typically range from 0.30% to 6.00% — average position size from 0.50% to 1.00%
  • Country ranges +/- 10% absolute deviation from the benchmark
  • Sector ranges +/- 15% absolute deviation from the benchmark
  • Reserves are typically less than 5%
  • Expected Turnover range: 20-40%

Holdings

Total
Holdings
86
Largest Holding Tencent Holdings 6.27% Was (31-Mar-2019) 6.55%
Other View Full Holdings Quarterly data as of 30-Jun-2019
Top 10 Holdings 40.46% View Top 10 Holdings Monthly data as of 30-Jun-2019

Top Purchase

Tencent Music Entertainment (N)
0.40%
Was (31-Mar-2019) 0.00%

Top Sale

Largan Precision
2.07%
Was (31-Mar-2019) 2.71%

Quarterly Data as of 30-Jun-2019

Sectors

Total
Sectors
11
Largest Sector Financials 30.43% Was (31-Mar-2019) 29.56%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Emerging Markets Index

Top Contributor^

Financials
Net Contribution 0.97%
Sector
0.18%
Selection 0.79%

Top Detractor^

Information Technology
Net Contribution -0.63%
Sector
0.00%
Selection
-0.63%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

Consumer Staples
By9.83%
Portfolio 16.41%
Benchmark 6.59%

Largest Underweight

Energy
By-7.24%
Portfolio 0.66%
Benchmark 7.89%

Monthly Data as of 30-Jun-2019

Regions

Total
Regions
4
Largest Region Pacific Ex Japan 60.36% Was (31-Mar-2019) 63.95%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Emerging Markets Index

Largest Overweight

Latin America
By5.63%
Portfolio 17.92%
Benchmark 12.29%

Largest Underweight

Pacific Ex Japan
By-11.75%
Portfolio 60.36%
Benchmark 72.11%

Monthly Data as of 30-Jun-2019

Countries

Total
Countries
23
Largest Country China 25.10% Was (31-Mar-2019) 26.48%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Emerging Markets Index

Top Contributor^

Brazil
Net Contribution 0.45%
Country
0.17%
Selection 0.28%

Top Detractor^

Taiwan
Net Contribution -0.50%
Country
-0.00%
Selection
-0.50%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

Brazil
By3.09%
Portfolio 10.74%
Benchmark 7.65%

Largest Underweight

China
By-6.45%
Portfolio 25.10%
Benchmark 31.55%

Monthly Data as of 30-Jun-2019

Team (As of 31-Aug-2019)

Gonzalo Pángaro

Gonzalo Pangaro is the lead portfolio manager for the firm's Emerging Markets Equity Strategy and is chairman of the strategy's Investment Advisory Committee.  Mr. Pangaro assumed portfolio management responsibilities in 2004. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd and a member of the International Equity Steering Committee.

Mr. Pangaro has 26 years of investment experience, all of which have been in the emerging markets. He joined the firm in 1998 as an analyst covering Latin American equities from Buenos Aires. During his tenure, he has been instrumental in the development of the firm's non-US research capabilities and served as head of International Research from 2000 to 2004 before electing to move to portfolio management full time. Prior to joining T. Rowe Price, Mr. Pangaro was head of Argentine research, also covering Latin American utilities, at Robert Fleming. He began his investment career in 1991 at Banco Mildesa in Buenos Aires, where he was an investment analyst specializing in the Argentine market.

A graduate of Argentine Catholic University with a bachelor's degree in business administration, Mr. Pangaro earned a master's degree in finance from CEMA University (Centro de Estudios Macroeconomics de la Argentina). Mr. Pangaro has earned the Chartered Financial Analyst designation. In addition to English, Mr. Pangaro is fluent in Spanish and Portuguese.

  • Portfolio manager
    since
    2004
  • Years at
    T. Rowe Price
    21
  • Years investment
    experience
    28
Charles Knudsen

Chuck Knudsen is a portfolio specialist in the Equity Division of T. Rowe Price. Mr. Knudsen is a member of the Emerging Markets Equity team and a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc. Previously, he was the associate head of Institutional Client Service, North America, for Global Investment Services, the organization responsible for the firm's institutional business worldwide.

Mr. Knudsen has 32 years of industry experience, 14 of which have been with T. Rowe Price. Before joining the firm in 2005, he was a senior vice president with Legg Mason Capital Management for almost three years, servicing many of the firm's large, global institutional clients. Prior to that, he was with Allied Investment Advisors for 15 years, where he oversaw the client service team, was an equity analyst, and served as the portfolio manager for the Ark Funds Balanced Portfolio.

Mr. Knudsen earned a B.A. from Duke University and an M.B.A. in finance and investments from George Washington University. He also has earned the Chartered Financial Analyst designation and is a Series 7 and 63 registered representative.

  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    32
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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

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