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Strategy

Emerging Markets Discovery Equity

Formerly Emerging Markets Value Equity Strategy

The Emerging Markets Discovery Equity Composite seeks long-term capital appreciation primarily through investment in emerging markets with attractive valuation levels relative to market/sector averages.

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

Tracking Error
(3 Years)

14.97%
3.58%

1YR Return (Net)
(View Total Returns)

Information Ratio
(3 Years)

8.76%
1.48

Inception Date 30-Sep-2015

Performance figures calculated in USD

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Ernest C.  Yeung
Ernest C. Yeung, Portfolio Manager

Ernest Yeung is a portfolio manager for the Emerging Markets Discovery Equity Strategy at T. Rowe Price. He was the co-portfolio manager for the International Small-Cap Equity Strategies from 2009 to 2014. Mr. Yeung is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited.

 

Strategy

Investment Approach

  • Aim to exploit the valuation anomalies that arise across the diverse and inefficient emerging market opportunity set.
  • Employ a contrarian approach using fundamental research, quantitative screen and industry contacts to identify companies that are out of favor, undervalued and that offer an attractive risk and reward profile.
  • Minimize the risk of value traps by focusing on companies offering yield or a book value anchor to the valuation, and where we have identified re-rating catalysts that can lead to an expansion in valuation over time.
  • Risk management is an integral part of the portfolio construction process.

Portfolio Construction

  • Typically 50-80 stock portfolio
  • Expected 4-8% tracking error
  • Individual position typically 0.5% to 5%, position sized by prospective risks
  • Country ranges +/-10% absolute deviation from the benchmark
  • Sector ranges +/-15% absolute deviation from the benchmark
  • Reserves are normally less than 5%, max 10%

Holdings

Total
Holdings
60
Largest Holding Samsung Electronics 5.92% Was (31-Mar-2019) 5.41%
Other View Full Holdings Quarterly data as of 30-Jun-2019
Top 10 Holdings 27.14% View Top 10 Holdings Monthly data as of 30-Jun-2019

Top Purchase

MediaTek (N)
1.73%
Was (31-Mar-2019) 0.00%

Top Sale

Saudi British Bank
0.82%
Was (31-Mar-2019) 2.41%

Quarterly Data as of 30-Jun-2019

Sectors

Total
Sectors
11
Largest Sector Financials 32.74% Was (31-Mar-2019) 34.73%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Emerging Markets Index

Top Contributor^

Financials
Net Contribution 2.48%
Sector
0.33%
Selection 2.15%

Top Detractor^

Industrials & Business Services
Net Contribution -0.85%
Sector
-0.09%
Selection
-0.76%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

Industrials & Business Services
By11.67%
Portfolio 17.03%
Benchmark 5.36%

Largest Underweight

Consumer Discretionary
By-6.92%
Portfolio 6.53%
Benchmark 13.45%

Monthly Data as of 30-Jun-2019

Regions

Total
Regions
4
Largest Region Pacific Ex Japan 57.23% Was (31-Mar-2019) 57.16%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Emerging Markets Index

Largest Overweight

Europe
By5.59%
Portfolio 12.06%
Benchmark 6.47%

Largest Underweight

Pacific Ex Japan
By-14.88%
Portfolio 57.23%
Benchmark 72.11%

Monthly Data as of 30-Jun-2019

Countries

Total
Countries
20
Largest Country China 34.45% Was (31-Mar-2019) 33.83%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Emerging Markets Index

Top Contributor^

South Africa
Net Contribution 0.83%
Country
0.28%
Selection 0.55%

Top Detractor^

Mexico
Net Contribution -0.29%
Country
0.00%
Selection
-0.30%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

South Africa
By4.53%
Portfolio 10.43%
Benchmark 5.89%

Largest Underweight

Taiwan
By-8.28%
Portfolio 2.55%
Benchmark 10.83%

Monthly Data as of 30-Jun-2019

Team (As of 07-Feb-2019)

Ernest C.  Yeung

Ernest Yeung is a portfolio manager for the Emerging Markets Discovery Equity Strategy at T. Rowe Price. He was the co-portfolio manager for the International Small-Cap Equity Strategies from 2009 to 2014. Mr. Yeung is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited.

Mr. Yeung has 17 years of investment experience, 15 of which have been with T. Rowe Price. Prior to joining the firm in 2003, he was an analyst with HSBC Asset Management in London.

Mr. Yeung earned an M.A., with honours, in economics from Cambridge University. He also has earned the Chartered Financial Analyst designation and the Investment Management Certificate. 

  • Portfolio manager
    since
    2015
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    18
Nick Beecroft

Nicholas Beecroft is a portfolio specialist in the Equity Division at T. Rowe Price, representing the firm's global equity strategies. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Beecroft has 18 years of investment experience, 14 of which have been with T. Rowe Price. He joined the firm in London in 2005 and spent many years working with our emerging markets equity team. Mr. Beecroft has been based in Hong Kong since 2011. Prior to joining T. Rowe Price, he was an investment analyst at Mercer Investment Consulting.

Mr. Beecroft earned a B.A, with honours, in contemporary European studies from the University of Southampton. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    18
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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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