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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)

7.90%
4.18%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

16.19%
0.87

Inception Date 31-Dec-1995

Performance figures calculated in USD

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Verena Wachnitz
Verena Wachnitz, Portfolio Manager

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.

 

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%.

Holdings

Total
Holdings
49
Largest Holding Itau Unibanco Holding 12.49% Was (30-Jun-2019) 12.90%
Other View Full Holdings Quarterly data as of 30-Sep-2019
Top 10 Holdings 56.66% View Top 10 Holdings Monthly data as of 30-Sep-2019

Top Purchase

Ambev
4.28%
Was (30-Jun-2019) 3.21%

Top Sale

Compania de Minas Buenaventura (E)
0.00%
Was (30-Jun-2019) 0.82%

Quarterly Data as of 30-Sep-2019

Sectors

Total
Sectors
11
Largest Sector Financials 39.09% Was (30-Jun-2019) 41.53%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2019

Benchmark: MSCI Emerging Markets Latin America Index

Top Contributor^

Consumer Staples
Net Contribution 0.48%
Sector
0.13%
Selection 0.35%

Top Detractor^

Health Care
Net Contribution -0.39%
Sector
0.04%
Selection
-0.43%

^Relative

Quarterly Data as of 30-Sep-2019

Largest Overweight

Consumer Discretionary
By6.80%
Portfolio 12.42%
Benchmark 5.62%

Largest Underweight

Energy
By-8.77%
Portfolio 1.31%
Benchmark 10.08%

Monthly Data as of 30-Sep-2019

Countries

Total
Countries
9
Largest Country Brazil 60.80% Was (30-Jun-2019) 59.62%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Benchmark: MSCI Emerging Markets Latin America Index

Top Contributor^

Brazil
Net Contribution 0.44%
Country
-0.05%
Selection 0.48%

Top Detractor^

Argentina
Net Contribution -0.45%
Country
-1.95%
Selection
1.51%

^Relative

Quarterly Data as of 30-Sep-2019

Largest Overweight

Peru
By3.63%
Portfolio 6.79%
Benchmark 3.16%

Largest Underweight

Mexico
By-7.07%
Portfolio 13.86%
Benchmark 20.93%

Monthly Data as of 30-Sep-2019

Team (As of 31-Aug-2019)

Verena Wachnitz

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 manager
    since
    2014
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    16
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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