Strategy
Latin America Equity
The Latin America Equity Composite seeks long-term capital appreciation through investment in companies in Latin America, with faster earnings growth and reasonable valuation levels relative to market/sector averages.
3YR Return Annualised (Net)
(View Total Returns)
Tracking Error
(5 Years)
1YR Return (Net)
(View Total Returns)
Information Ratio
(5 Years)
Inception Date 31-Dec-1995
Performance figures calculated in USD
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 region.
- Apply negative screening for macroeconomic and political factors to temper bottom-up enthusiasm for specific securities.
Portfolio Construction
- Typically 30-60 stock portfolio.
- Individual positions typically range from 0.5% to 20.0% — average position size of 2.0% to 3.0%.
- Sector ranges typically +/- 10.0% absolute deviation to the benchmark.
- Country ranges typically +/- 10.0% absolute deviation to the benchmark.
- Reserves typically range from 0.0% to 5.0%.
- Expected Turnover 20.0% to 50.0%.
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
10 YR Annualised |
|
|---|---|---|---|---|
| Composite Gross % | 26.71% | 12.68% | 2.82% | 4.51% |
| Composite Net % | 25.66% | 11.74% | 1.95% | 3.62% |
| Benchmark % | 18.45% | 10.79% | -0.75% | 2.34% |
| Excess Return (Gross) % | 8.26% | 1.89% | 3.57% | 2.17% |
Recent Performance
| 3 MonthsData as of 30-Jun-2019 | Year to DateData as of 30-Jun-2019 | |
|---|---|---|
| Composite Gross % | 6.62% | 16.92% |
| Composite Net % | 6.40% | 16.44% |
| Benchmark % | 4.44% | 12.64% |
| Excess Return (Gross) % | 2.18% | 4.28% |
Past performance is not a reliable indicator of future performance.
Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule contained within this material, without the benefit of breakpoints. Gross and net performance returns reflect the reinvestment of dividends and are net of all non-reclaimable withholding taxes on dividends, interest income, and capital gains.
MSCI Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Effective 1 July 2018, the "net" version of the benchmark replaced the "gross" version of the benchmark. The "net" version of the 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.
Holdings
Total
Holdings
51
Top Purchase
Localiza Rent A Car (N)
0.67%Top Sale
Ultrapar Participacoes (E)
0.00%Sectors
Total
Sectors
11
Top Contributor^
Consumer Discretionary
Net Contribution 0.85%Top Detractor^
Materials
Net Contribution -0.21%Largest Overweight
Consumer Discretionary
Largest Underweight
Energy
Countries
Total
Countries
8
Top Contributor^
Brazil
Net Contribution 1.41%Top Detractor^
Peru
Net Contribution -0.13%Largest Overweight
Peru
Largest Underweight
Mexico
Team (As of 07-Feb-2019)
Verena Wachnitz is the portfolio manager for the Latin America Equity Strategy. Prior to this, she was an analyst in the Equity Research team, covering the telecom, financials, materials and real estate sectors in Latin America. Ms. Wachnitz is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.
Ms. Wachnitz has 14 years of investment experience, all of which have been with T. Rowe Price. Prior to joining the firm in 2003, she was an investment analyst with Centro de Estudios de Transporte e Infraestructura.
Ms. Wachnitz earned a B.A. in economics and a master's degree in finance from Universidad de San Andres. She also has earned the Chartered Financial Analyst designation. She is fluent in Spanish, German, Portuguese and English.
- Portfolio manager2014
since - Years at15
T. Rowe Price - Years investment15
experience
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 at14
T. Rowe Price - Years investment32
experience
Verena Wachnitz is the portfolio manager for the Latin America Equity Strategy. Prior to this, she was an analyst in the Equity Research team, covering the telecom, financials, materials and real estate sectors in Latin America. Ms. Wachnitz is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.