SICAV
Emerging Markets Equity Fund
Seeking to capture compelling growth opportunities in dynamic emerging markets.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(3 Years)
Tracking Error
(3 Years)
Inception Date 30-Jun-2016
Performance figures calculated in EUR
Other Literature
- This product's strategy also available as
- a Strategy
Strategy
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 diversified portfolio of stocks of emerging market companies.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%
Performance (Class A | EUR)
Annualised Performance
1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
---|---|---|---|---|
Fund % | 6.30% | 5.72% | N/A | 10.80% |
Indicative Benchmark % | 8.53% | 5.51% | N/A | 10.36% |
Excess Return % | -2.23% | 0.21% | N/A | 0.44% |
1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
---|---|---|---|---|
Fund % | 6.30% | 5.72% | N/A | 10.80% |
Indicative Benchmark % | 8.53% | 5.51% | N/A | 10.36% |
Excess Return % | -2.23% | 0.21% | N/A | 0.44% |
Recent Performance
Month to DateData as of 15-Jan-2021 | Quarter to DateData as of 15-Jan-2021 | Year to DateData as of 15-Jan-2021 | 1 MonthData as of 31-Dec-2020 | 3 MonthsData as of 31-Dec-2020 | |
---|---|---|---|---|---|
Fund % | 6.30% | 6.30% | 6.30% | 4.07% | 13.36% |
Indicative Benchmark % | 6.43% | 6.43% | 6.43% | 4.95% | 14.72% |
Excess Return % | -0.13% | -0.13% | -0.13% | -0.88% | -1.36% |
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 July 2018, 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.

Holdings
Total
Holdings
89
Largest Top Contributor^
Taiwan Semiconductor Manufacturing
By 0.52%Largest Top Detractor^
Alibaba Group Holding
By -4.92%Top Purchase
Yum China Holdings (N)
0.47%Top Sale
Hangzhou Hikvision Digital Technology (E)
0.00%
We believe (as we have for some time) that, by and large, emerging market countries are in relatively good economic shape. When compared with developed markets, and particularly the U.S., they are at an earlier stage in terms of economic recovery and also in terms of improvements in earnings and margins. However, emerging markets have seen volatile conditions in the recent sell-off in global equities; while we remain mindful of the risks to the asset class, such as continued trade tensions between the U.S. and China and the future path of U.S. monetary policy, our view is that valuations are at attractive levels, while currencies have also corrected. Indeed, we have been taking advantage of this volatility to add to our positions in companies where we have a high level of conviction over their long-term prospects.
Overall, the portfolio continues to have a growth tilt. We are overweight to the IT sector, consumer-related stocks, and financials, where our highly detailed investment research is helping us to identify companies that we believe offer good growth potential. We are underweight to areas of the market where we struggle to find companies with sufficient scope for growth, such as energy, materials, and telecom names.
We Retain Our Overweight To IT; Sector Remains One Of The Largest In Emerging Markets
The size of the IT sector in emerging markets has fallen since the recent MSCI sector reclassification, with several companies (including some names that we continue to own in the portfolio, such as Chinese internet companies Alibaba and Tencent) being moved to either the consumer discretionary space or the new communication services sector. However, IT remains one of the largest sectors within emerging markets, and we retain our overweight.
During the quarter, we initiated a position in Brazilian company Stone, which engages in the provision of financial technology solutions. The company processes payments, which we believe gives it a great deal of scope to grow and expand into other segments and businesses. We met the company following an investment research trip to Brazil in November, and we believe it offers compelling investment potential.
Private Sector Banks In India Are Continuing To Gain Market Share
The portfolio is overweight to financials, the largest sector in emerging markets, where we have identified good investment potential among selected banking and insurance stocks across a range of countries. For example, in India, we think there are some significant tailwinds for private sector banks. Broadly speaking, in our view, the state-owned banks in India are continuing to suffer from some poor loans and poor asset quality, and this is curbing the amount of capital they have to grow their loan books. The private banks are stepping into that gap; by and large they are taking market share in terms of credit growth, and return on equity is improving. These companies are also investing in their online banking and product offerings, and we think that this is helping them to build a stronger competitive position. While we are mindful of recent issues in the wholesale funding market in India, we believe that the risks have reduced. Overall, our view is that the banks that we own here have high-quality balance sheets and diversified sources of funding, with less dependence on wholesale funding. Another issue we are cognizant of is the recent change in leadership of the Reserve Bank of India following the unexpected resignation of the previous central bank head, who had disagreements with Prime Minister Narendra Modi over monetary policy. While we do not view this as a significant near-term risk, we will be monitoring the situation closely.
Over the quarter, we initiated or added to some positions in the financials sector and trimmed our holdings in a number of other names.
- We initiated a position in Brazilian stock exchange company B3, following an investment research trip to Brazil in November and a meeting with the company's CFO. We would expect the stock to benefit from an environment of improving growth and market performance. With interest rates coming down and risk appetite increasing, we believe there are a number of tailwinds for the equity market environment and, therefore, the company's earnings. B3 also trades at a discount to other global exchanges.
- We added to our position in Al Rajhi, Saudi Arabia's second-largest bank. The Saudi banking sector is favorably positioned, in our view; it is an oligopolistic market with high barriers to entry. We expect the banks to benefit from interest rate hikes from the U.S. Federal Reserve (given the Saudi currency's peg to the U.S. dollar). In our view, economic expansion and loan growth are also set to recover. We believe that Al Rajhi is the highest-quality Saudi bank, and we expect it to grow margins and return on equity.
- We added to our position in South African insurer Sanlam, which offers both life and non-life cover as well as other financial services. We prefer the name to fellow South African financial services group FirstRand (which we also hold; see below for further details) and switched some of our holding in this company into Sanlam. We also believe that Sanlam is good operationally, and the company continues to take market share.
- We trimmed our position in South African group FirstRand, which, in our view, is the highest-quality bank in emerging markets, with superior return on equity. We believe the medium- to long-term prospects for the company remain on track, although on a near-term view the valuation is looking a little stretched after strong outperformance. We have, therefore, taken some profits and switched into insurer Sanlam (see above for further details).
- We trimmed our position in Brazilian name Itau Unibanco on strong outperformance. The bank remains a core position for the portfolio, given the supportive domestic environment, as loan growth picks up and consumer confidence rebounds. The banking industry structure in Brazil is also attractive, in our view, with a high level of consolidation and a well-capitalized system.
- We reduced our position in Ping An, China's largest insurer. The company's advanced technology platform is a competitive advantage, in our view, and also provides other financial technology options and opportunities. We continue to like the name for what we see as its favorable long-term fundamentals, but given the increased equity market volatility at present, associated with "trade war" rhetoric escalation, we have trimmed the position as the company has high equity market exposure.
Growing Prosperity Across Developing World Is Providing A Strong Tailwind For Consumer Stocks, In Our View
Increased prosperity across the emerging world remains a powerful medium- to long-term trend, in our view. We have identified several companies that we believe are well placed to take advantage of the considerable business opportunities that this growing wealth presents; as a result, the portfolio has a large overweight to consumer-related stocks.
Over the period, we trimmed our holding in Brazilian name Lojas Renner, one of our largest relative positions, following a strong period of outperformance in the wake of Jair Bolsonaro's election victory. We believe the apparel retailer has strong operational efficiency, and, in our view, this may enable it to continue to take market share. The improving consumer environment may provide a further boost. Given Lojas Renner's significant recent outperformance, taking some profits seemed prudent, in our view.
Portfolio Remains Underweight To Commodity-Driven Sectors
We retain our long-standing underweight to the commodity-driven energy and materials sectors. Broadly speaking, we struggle to identify stocks in these areas of the market with sufficient growth potential, while we continue to have a negative view on the longer-term outlook for the price of oil. Having said that, we have stock-specific positions in markets including Russia and the United Arab Emirates, partially as a counterbalance to our large underweight to energy; both markets are correlated to oil-price trends.
We have also identified some stock-specific opportunities in the materials space and made some changes to our holdings here over the quarter; we initiated a position in a pulp producer and trimmed our holding in a mining stock.
- We initiated a position in Brazilian company Suzano, which became the world's largest pulp producer following a merger. Suzano is a relatively low-cost producer, and with strong pulp demand and robust free cash flow generation, we believe the near-term outlook for the company is supportive.
- We reduced our holding in Fresnillo, a Mexican gold mining company listed in London. We trimmed the name because we believe production has peaked and also on concerns about a deteriorating political environment with the election victory last year of left wing populist candidate Andres Manuel Lopez Obrador. In our view, the risk outlook and risk premium for the stock has increased on the back of this development.
We Are Underweight To Communication Services, Largely A Result Of Low Exposure To Telecom Names
One of the key changes in the recent MSCI sector reclassification was that the telecommunication services sector was expanded and renamed communication services. As part of the changes, some securities previously assigned to information technology or consumer discretionary were reclassified as communication services. We are underweight to the new sector, largely a result of our low exposure to telecommunications stocks; this area of the market is relatively mature and "ex growth" even within the emerging world.
However, we have a sizable position in communication services in absolute terms, largely a result of names that have moved across from other sectors during the reclassification and which we continue to hold in the portfolio, the foremost of which is Chinese internet stock Tencent, in which we continue to have a high level of conviction.
Sectors
Total
Sectors
11
Top Contributor^
Financials
Net Contribution 1.97%Top Detractor^
Consumer Discretionary
Net Contribution -0.95%Largest Overweight
Consumer Staples
Largest Underweight
Materials

Countries
Total
Countries
23
Top Contributor^
India
Net Contribution 0.67%Top Detractor^
China
Net Contribution -1.18%Largest Overweight
Hong Kong
Largest Underweight
China

Team (As of 15-Jan-2021)

Gonzalo Pángaro is the lead portfolio manager for the Emerging Markets Equity Strategy in the Equity Division. He is chairman of the Investment Advisory Committee for the Emerging Markets Equity Strategy and a member of the International Equity Steering Committee. Gonzalo is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Gonzalo’s investment experience began in 1991, and he has been with T. Rowe Price since 1995, beginning in the Buenos Aires office as an analyst, covering Latin American equities from Buenos Aires. After that, he served as head of International Research from 2000 to 2004. He also has been instrumental in the development of the firm's non-U.S. research capabilities. Prior to T. Rowe Price, Gonzalo was employed by Robert Fleming as head of Argentine research, covering Latin American utilities. He also was an investment analyst with Banco Mildesa, specializing in the Argentine market.
Gonzalo earned a bachelor's degree in business administration from Argentine Catholic University and a master's degree in finance from CEMA University (Centro de Estudios Macroeconomicos de la Argentina). Gonzalo also has earned the Chartered Financial Analyst® designation. In addition to English, Gonzalo is fluent in Spanish and Portuguese.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Fund manager2009
since - Years at22
T. Rowe Price - Years investment29
experience

Nick Beecroft is the APAC head of the Investment Specialist Group and a portfolio specialist in the Equity Division. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Nick’s investment experience began in 2001, and he has been with T. Rowe Price since 2005, beginning in the Equity Division. Prior to this, Nick was employed by Mercer Investment Consulting as an investment analyst.
Nick earned a B.A., with honors, in contemporary European studies from the University of Southampton. He also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Years at15
T. Rowe Price - Years investment19
experience

Chuck Knudsen is a portfolio specialist in the Equity Division. He also is a member of the Emerging Markets Equity team. Chuck is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Chuck’s investment experience began in 1987, and he has been with T. Rowe Price since 2005, beginning in the Global Investment Services department, the organization responsible for the firm's institutional business worldwide. After that, he was the associate head of Institutional Client Service, North America, for Global Investment Services. Prior to T. Rowe Price, Chuck was a senior vice president with Legg Mason Capital Management for three years, servicing many of the firm's large, global institutional clients. He also spent 15 years with Allied Investment Advisors, where he oversaw the Client Service team, was an equity analyst, and served as the portfolio manager for the Ark Funds Balanced Portfolio.
Chuck 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.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Years at16
T. Rowe Price - Years investment34
experience
Fee Schedule
Share Class | Minimum Initial Investment and Holding Amount (USD) | Minimum Subsequent Investment (USD) | Minimum Redemption Amount (USD) | Sales Charge (up to) | Investment Management Fee (up to) | Ongoing Charges |
---|---|---|---|---|---|---|
Class A | $1,000 | $100 | $100 | 5.00% | 190 basis points | 2.01% |
Class I | $2,500,000 | $100,000 | $0 | 0.00% | 100 basis points | 1.06% |
Class Jd | $10,000,000 | $0 | $0 | 0.00% | 0 basis points | 0.10% |
Class Q | $1,000 | $100 | $100 | 0.00% | 100 basis points | 1.10% |
Class S | $10,000,000 | $0 | $0 | 0.00% | 0 basis points | 0.06% |
Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.
Portfolio Characteristics
Characteristic | Fund | Benchmark |
---|---|---|
Projected Earnings Growth Rate (IBES) | 20.7% | 17.0% |
Price to Earnings (Current Fiscal Year) | 27.7x | 22.4x |
Return on Equity (Current Fiscal Year) | 15.5% | 11.6% |
Price to Book | 4.7x | 3.3x |
Investment Weighted Median Market Cap (EUR mm) | 64,666 | 35,828 |
Investment Weighted Average Market Cap (EUR mm) | 186,357 | 138,703 |
Number of Issuers | 81 | 1,333 |
Top 20 Holdings as % of Total | 63.0% | 36.1% |
Portfolio Holdings Turnover (12 Months) | 30.0% | N/A |
Percent of Portfolio in Cash | 3.4% | 0.0% |
Active Share Percentage | N/A | N/A |
Risks
The following risks are materially relevant to the fund (refer to prospectus for further details):
- Capital risk
- Country risk (China)
- Country risk (Russia and Ukraine)
- Country risk (Saudi Arabia)
- Currency risk
- Emerging markets risk
- Equity risk
- Geographic concentration risk
- Hedging risk
- Investment fund risk
- Management risk
- Market risk
- Operational risk
- Small and mid-cap risk
- Style risk
- Volatility risk
Risk/Return Characteristics
as of 31-Dec-2020Risk/Return (3 Years) | Fund | Indicative Benchmark |
---|---|---|
Alpha | 1.35% | 0.00% |
Beta | 1.01 | 1.00 |
R-Squared | 0.97 | 1.00 |
Annualized Std. Deviation | 20.06% | 19.60% |
Information Ratio | 0.42 | 0.00 |
Sharpe Ratio | 0.30 | 0.23 |
Tracking Error | 3.35% | 0.00% |
Past performance is not a reliable indicator of future performance.
Statistics based on monthly net returns of the Fund's Class I shares.
Returns shown with reinvestment of dividends after the deduction of withholding taxes.
Calendar Year Performance
2016^ | 2017 | 2018 | 2019 | 2020 | ||
---|---|---|---|---|---|---|
8.40% | 23.89% | -12.73% | 27.39% | 6.30% | Fund | |
10.05% | 20.59% | -10.26% | 20.60% | 8.53% | Indicative Benchmark | |
-1.65% | 3.30% | -2.47% | 6.79% | -2.23% | Value added |
- Fund
- Indicative Benchmark
Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Effective 1 July 2018, 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.
Monthly Performance (Class A | EUR)
- Fund
- Indicative Benchmark
- Exceptional Commentary
- Monthly Commentary

Purchases - 10 Largest (31-Dec-2020)
Major Purchases | % of Fund | Previous Quarter Change | Industry | Country |
---|---|---|---|---|
Yum China Holdings (N) | 0.47% | 0.47% | Hotels Restaurants & Leisure | China |
Taiwan Semiconductor Manufacturing | 9.08% | 0.42% | Semiconductors & Semiconductor Equipment | Taiwan |
Tencent Holdings | 7.63% | -0.83% | Interactive Media & Services | China |
Songcheng Performance development (N) | 0.32% | 0.32% | Hotels Restaurants & Leisure | China |
Samsung Electronics | 7.23% | 1.48% | Technology Hardware, Storage & Peripherals | South Korea |
Alibaba Group Holding | 4.15% | -2.09% | Internet & Direct Marketing Retail | China |
Rede D Or Sao Luiz (N) | 0.28% | 0.28% | Health Care Providers & Services | Brazil |
Ozon Holdings (N) | 0.20% | 0.20% | Internet & Direct Marketing Retail | Cyprus |
Capitec Bank Holdings | 0.61% | 0.29% | Banks | South Africa |
XP | 0.48% | 0.06% | Capital Markets | Brazil |
(N) New Position.

- We purchased shares in Itau Unibanco, the largest private sector bank in Brazil, at what we viewed as an attractive valuation. We believe that a consolidated market may allow the bank to deliver a strong return on equity over the medium term. After front-loading provisions in the first quarter, we think Itau may see better earnings throughout this year and in 2021.
- We sold Banco Bradesco, the second-largest private sector bank in Brazil, on an assessment of the balance between risk and potential reward, as we see less upside from here; we moved funds into our higher-conviction Brazilian bank, Itau.
- We purchased shares in Indian firm Kotak Mahindra Bank. The Indian banking sector has underperformed as economic growth expectations and net interest margins have been squeezed because of the coronavirus pandemic. However, in our view, Kotak Mahindra is a high-quality private sector bank, and we think its return on equity is attractive. We believe that this was a good opportunity to buy a high-quality bank at an attractive valuation, and we believe there is scope for it to rerate as expectations and fundamentals improve.
- Chinese company Meituan Dianping has two main businesses: It has a strong market share in food delivery and an in-store business for online users to book restaurants, hotels, and other "long-tail" offline services. We purchased shares on the pullback in July as we believe execution has been strong (the coronavirus pandemic has helped the food delivery business) and its strategy is more focused on food delivery and hotel bookings. We expect to continue to build our position on further opportunities; however, we believe the current valuation is too rich. Longer term, we are confident about the company's potential given the improved execution and focused strategy.
- We purchased MediaTek, a "fabless" chip designer; its focus is on providing handset chips to emerging market vendors, while it also makes TV and PC chips. An extension of restrictions by the U.S. Senate in August means that MediaTek needs to apply for a license to sell smartphone semiconductor chips to Chinese firm Huawei. We used this development to purchase shares in the name because we do not believe the news will impact MediaTek's high-end 5G solutions in the long run. While we expect an impact in the near term, in our view, the growth and opportunity for MediaTek comes from its high-end 5G solutions chips; we think these may instead be sold to Huawei's competitors, which make similar high-end models.
- Largan Precision is a manufacturer of high-precision handset camera lenses. We sold some shares as its third quarter guidance pointed to the beginning of market share loss of high-end lenses in new smartphone models and a weak product mix. We believe the slower migration of lens specification may allow competitors to catch up and erode Largan's dominant share and profitability in the high-end lens segment.
Sales - 10 Largest (31-Dec-2020)
Major Sales | % of Fund | Previous Quarter Change | Industry | Country |
---|---|---|---|---|
Hangzhou Hikvision Digital Technology (E) | 0.00% | -0.60% | Electronic Equip, Instr & Cmpts | China |
Baidu (E) | 0.00% | -0.61% | Interactive Media & Services | China |
Sunny Optical Technology (E) | 0.00% | -0.42% | Electronic Equip, Instr & Cmpts | China |
SK Hynix | 1.05% | -0.21% | Semiconductors & Semiconductor Equipment | South Korea |
Hangzhou Hikvision Digital Technology (E) | 0.00% | -0.35% | Electronic Equip, Instr & Cmpts | China |
Tencent Holdings | 7.63% | -0.83% | Interactive Media & Services | China |
Taiwan Semiconductor Manufacturing | 9.08% | 0.42% | Semiconductors & Semiconductor Equipment | Taiwan |
National Bank of Kuwait (E) | 0.00% | -0.38% | Banks | Kuwait |
Alibaba Group Holding | 4.15% | -2.09% | Internet & Direct Marketing Retail | China |
Sanlam (E) | 0.00% | -0.30% | Insurance | South Africa |
(E) Eliminated.
Major Purchases/Sales represent the highest to lowest total cost (purchases) and proceeds (sales) for the time period indicated.
The information shown does not reflect any ETFs that may be held in the portfolio.
Contributors (31-Dec-2020)
Contributors | % of Fund | Industry | Country |
---|---|---|---|
Samsung Electronics | 8.56% | Technology Hardware, Storage & Peripherals | South Korea |
Taiwan Semiconductor Manufacturing | 9.08% | Semiconductors & Semiconductor Equipment | Taiwan |
Itau Unibanco Holding | 2.94% | Banks | Brazil |
Sberbank of Russia | 3.01% | Banks | Russia |
Housing Development Finance | 2.24% | Thrifts & Mortgage Finance | India |

- While shares in MercadoLibre, an Argentina-based e-commerce platform and digital payments provider, underperformed the sector, they delivered a strong absolute return. The company unveiled a robust set of results that were ahead of expectations; they showed strong growth in its online marketplace business and in total payments volumes. We believe MercadoLibre can continue to deliver strong growth for several years, and we view it as one of the highest-quality companies in Latin America.
- Shares in Chinese company Meituan Dianping, which is involved in businesses such as food delivery and restaurant/hotel bookings, strongly outperformed on better-than-expected results. While we have a small position in the name, we are underweight, and this held back relative returns.
- Brazilian private sector bank Itau Unibanco underperformed. Sentiment toward Brazilian banks remains relatively pessimistic, given investor concerns about potential regulatory and tax issues as well as fintech disruption. However, we think Itau is trading at an attractive valuation, while recent Brazilian economic data have been better than expected. Itau has frontloaded provisioning, and we believe this may have peaked; we would expect the bank to benefit significantly from a normalization of economic conditions. The company unveiled results during the period that were in line with expectations.
- Shares in Banco Santander Chile underperformed. The company reported a deterioration in earnings against the background of the economic impact of the pandemic. While the company stated that asset quality has held up better than expected, it has been frontloading provisions, which we believe is prudent. We continue to hold the name. We think Banco Santander Chile is a well-run bank, operating in what we view as a solid banking system. Furthermore, we feel that the shares are attractively valued.
- Several Chinese banking stocks underperformed, including China Construction Bank and ICBC, and our relatively low weighting among these names boosted relative returns.
- Information technology name Taiwan Semiconductor Manufacturing Company (TSMC) strongly outperformed. Positives for the shares included U.S. chipmaker Intel announcing a delay in the launch of its next generation of chips and that it was considering outsourcing more of its manufacturing, with TSMC seen as a likely beneficiary. TSMC unveiled results that showed better-than-expected margins, while the company also raised guidance for 2020 sales.
- Russian internet firm Yandex outperformed. Although the company released results that, as expected, indicated a decline in online advertising revenues, they also showed a strong increase in revenues from the taxi segment, helped by a recovery in demand post lockdown. This part of the business also includes food and grocery delivery operations, which have seen rapid growth. Expectations for Yandex's inclusion in the MSCI Emerging Markets Index, which was confirmed in August, provided a further tailwind for the stock.
Detractors (31-Dec-2020)
Detractors | % of Fund | Industry | Country |
---|---|---|---|
Alibaba Group Holding | 6.34% | Internet & Direct Marketing Retail | China |
Anhui Conch Cement | 1.12% | Construction Materials | China |
CSPC Pharmaceutical | 0.38% | Pharmaceuticals | China |
TAL Education | 0.93% | Diversified Consumer Services | China |
Sino Biopharmaceutical | 0.58% | Pharmaceuticals | China |
The information shown does not reflect any ETFs that may be held in the portfolio.
N/A indicates Not Available.
Holdings (31-Dec-2020)
Company | % of Fund | Previous Qtr Change | Value (USD) | Shares | Sector | Industry | Country |
---|---|---|---|---|---|---|---|
Taiwan Semiconductor Manufacturing | 9.11% | 0.45 | $284,423,655.40 | 15,086,050 | Information Technology | Semiconductors & Semiconductor Equipment | Taiwan |
Tencent Holdings | 7.58% | -0.88 | $236,528,120.40 | 3,289,000 | Communication Services | Interactive Media & Services | China |
Samsung Electronics | 7.24% | 1.49 | $226,036,449.40 | 3,041,999 | Information Technology | Technology Hardware, Storage & Peripherals | South Korea |
Alibaba Group Holding | 4.22% | -2.02 | $131,747,932.70 | 558,609 | Consumer Discretionary | Internet & Direct Marketing Retail | China |
AIA Group | 3.10% | 0.05 | $96,690,993.19 | 7,947,800 | Financials | Insurance | Hong Kong |
LG Household & Health Care | 3.09% | -0.08 | $96,551,908.70 | 64,914 | Consumer Staples | Personal Products | South Korea |
Sberbank of Russia | 3.02% | 0.04 | $94,220,265.48 | 6,488,999 | Financials | Banks | Russia |
Itau Unibanco Holding | 2.93% | 0.61 | $91,530,099.68 | 15,064,986 | Financials | Banks | Brazil |
China Mengniu Dairy | 2.41% | 0.14 | $75,327,474.24 | 12,484,000 | Consumer Staples | Food Products | China |
Ping An Insurance | 2.32% | -0.09 | $72,572,995.89 | 5,941,600 | Financials | Insurance | China |
Housing Development Finance | 2.26% | 0.43 | $70,430,285.30 | 2,008,078 | Financials | Thrifts & Mortgage Finance | India |
Alibaba Group Holding | 2.17% | -0.94 | $67,837,223.59 | 2,296,832 | Consumer Discretionary | Internet & Direct Marketing Retail | China |
Infosys | 1.60% | 0.07 | $49,879,346.03 | 2,911,978 | Information Technology | IT Services | India |
NAVER | 1.57% | -0.21 | $49,160,107.95 | 183,210 | Communication Services | Interactive Media & Services | South Korea |
HDFC Bank | 1.55% | 0.14 | $48,331,706.23 | 2,454,971 | Financials | Banks | India |
Largan Precision | 1.42% | -0.32 | $44,460,983.09 | 392,000 | Information Technology | Electronic Equip, Instr & Cmpts | Taiwan |
Samsung Electronics | 1.32% | 0.24 | $41,313,824.06 | 611,994 | Information Technology | Technology Hardware, Storage & Peripherals | South Korea |
CP ALL | 1.30% | -0.23 | $40,507,912.30 | 20,838,800 | Consumer Staples | Food & Staples Retailing | Thailand |
MercadoLibre | 1.26% | 0.13 | $39,360,462.75 | 23,385 | Consumer Discretionary | Internet & Direct Marketing Retail | Argentina |
SM Investments | 1.10% | -0.06 | $34,287,395.10 | 1,570,858 | Industrials & Business Services | Industrial Conglomerates | Philippines |
Raia Drogasil | 1.05% | -0.00 | $32,923,713.79 | 6,843,070 | Consumer Staples | Food & Staples Retailing | Brazil |
China Resources Beer Holdings | 1.05% | 0.20 | $32,827,408.63 | 3,566,000 | Consumer Staples | Beverages | China |
SK Hynix | 1.05% | -0.21 | $32,777,903.32 | 301,618 | Information Technology | Semiconductors & Semiconductor Equipment | South Korea |
Kweichow Moutai | 1.04% | 0.86 | $32,518,240.70 | 106,346 | Consumer Staples | Beverages | China |
Credicorp | 1.03% | 0.06 | $32,150,068.00 | 198,850 | Financials | Banks | Peru |
TAL Education | 0.94% | -0.26 | $29,257,583.42 | 407,147 | Consumer Discretionary | Diversified Consumer Services | China |
BM&FBOVESPA | 0.93% | 0.09 | $29,031,598.06 | 2,438,300 | Financials | Capital Markets | Brazil |
OTP Bank | 0.90% | 0.17 | $27,957,268.65 | 621,477 | Financials | Banks | Hungary |
Banco Santander Chile | 0.83% | 0.11 | $25,840,924.82 | 1,344,481 | Financials | Banks | Chile |
First Abu Dhabi Bank | 0.82% | 0.05 | $25,536,804.43 | 7,265,239 | Financials | Banks | United Arab Emirates |
Anheuser-Busch InBev SA/NV | 0.80% | 0.04 | $25,128,064.80 | 359,240 | Consumer Staples | Beverages | Belgium |
Anhui Conch Cement | 0.78% | -0.26 | $24,237,508.12 | 3,872,500 | Materials | Construction Materials | China |
President Chain Store | 0.76% | 0.01 | $23,630,167.74 | 2,495,000 | Consumer Staples | Food & Staples Retailing | Taiwan |
StoneCo | 0.75% | 0.08 | $23,541,566.72 | 284,044 | Information Technology | IT Services | Brazil |
Naspers | 0.75% | -0.03 | $23,304,757.77 | 113,091 | Consumer Discretionary | Internet & Direct Marketing Retail | South Africa |
Wal-Mart de Mexico | 0.74% | -0.01 | $22,960,667.92 | 7,918,082 | Consumer Staples | Food & Staples Retailing | Mexico |
Shoprite Holdings | 0.70% | -0.07 | $21,878,802.89 | 2,289,773 | Consumer Staples | Food & Staples Retailing | South Africa |
Bank Central Asia | 0.69% | -0.09 | $21,495,236.61 | 8,963,500 | Financials | Banks | Indonesia |
Gree Electric Appliances Inc of Zhuhai | 0.67% | -0.04 | $20,799,299.98 | 2,195,551 | Consumer Discretionary | Household Durables | China |
Pagseguro Digital | 0.66% | 0.17 | $20,716,308.00 | 371,260 | Information Technology | IT Services | Brazil |
Grupo Aeroportuario del Sureste | 0.66% | 0.10 | $20,501,729.60 | 125,932 | Industrials & Business Services | Transportation Infrastructure | Mexico |
X5 Retail Group | 0.65% | -0.16 | $20,375,003.04 | 564,092 | Consumer Staples | Food & Staples Retailing | Russia |
FirstRand | 0.64% | 0.09 | $20,098,696.46 | 5,769,712 | Financials | Diversified Financial Services | South Africa |
Midea | 0.64% | 0.10 | $19,870,930.01 | 1,319,462 | Consumer Discretionary | Household Durables | China |
Capitec Bank Holdings | 0.61% | 0.30 | $19,190,489.51 | 196,265 | Financials | Banks | South Africa |
Trip.Com | 0.59% | -0.09 | $18,281,781.00 | 549,828 | Consumer Discretionary | Internet & Direct Marketing Retail | China |
Yifeng Pharmacy Chain | 0.58% | -0.17 | $18,226,186.55 | 1,321,240 | Consumer Staples | Food & Staples Retailing | China |
Sino Biopharmaceutical | 0.58% | -0.03 | $18,216,904.45 | 18,840,000 | Health Care | Pharmaceuticals | China |
Southern Copper | 0.55% | 0.00 | $17,079,048.00 | 263,200 | Materials | Metals & Mining | Peru |
Astra International | 0.53% | 0.07 | $16,617,760.52 | 38,933,100 | Consumer Discretionary | Automobiles | Indonesia |
Universal Robina | 0.53% | -0.04 | $16,535,301.13 | 5,216,960 | Consumer Staples | Food Products | Philippines |
Jiangsu Hengrui Medicine | 0.52% | 0.10 | $16,275,673.56 | 954,600 | Health Care | Pharmaceuticals | China |
Clicks Group | 0.52% | 0.04 | $16,200,937.59 | 939,471 | Consumer Staples | Food & Staples Retailing | South Africa |
China Merchants Bank | 0.52% | 0.04 | $16,134,123.58 | 2,554,500 | Financials | Banks | China |
Lojas Renner | 0.50% | 0.00 | $15,548,488.37 | 1,860,694 | Consumer Discretionary | Multiline Retail | Brazil |
XP | 0.49% | 0.07 | $15,289,958.88 | 381,486 | Financials | Capital Markets | Brazil |
Vanguard International Semiconductor | 0.49% | 0.02 | $15,241,218.71 | 3,707,000 | Information Technology | Semiconductors & Semiconductor Equipment | Taiwan |
Yum China Holdings | 0.47% | N/A | $14,771,622.00 | 258,200 | Consumer Discretionary | Hotels Restaurants & Leisure | China |
Al Rajhi Bank | 0.46% | -0.03 | $14,389,824.72 | 733,596 | Financials | Banks | Saudi Arabia |
ENN Energy Holdings | 0.45% | 0.05 | $14,203,149.60 | 968,000 | Utilities | Gas Utilities | China |
Yandex | 0.45% | -0.05 | $13,965,110.00 | 202,100 | Communication Services | Interactive Media & Services | Russia |
Mail.Ru | 0.44% | -0.12 | $13,887,688.70 | 528,049 | Communication Services | Interactive Media & Services | Russia |
Tencent Music Entertainment | 0.41% | 0.02 | $12,886,054.00 | 684,700 | Communication Services | Entertainment | China |
Prosus | 0.41% | -0.01 | $12,798,736.15 | 118,056 | Consumer Discretionary | Internet & Direct Marketing Retail | Netherlands |
MediaTek | 0.40% | 0.02 | $12,342,525.85 | 466,000 | Information Technology | Semiconductors & Semiconductor Equipment | Taiwan |
Meituan | 0.39% | N/A | $12,189,808.25 | 321,200 | Consumer Discretionary | Internet & Direct Marketing Retail | China |
Hong Kong Exchanges and Clearing | 0.39% | -0.01 | $12,071,359.31 | 220,300 | Financials | Capital Markets | Hong Kong |
CSPC Pharmaceutical | 0.39% | -0.18 | $12,059,256.66 | 11,796,560 | Health Care | Pharmaceuticals | China |
Maruti Suzuki India | 0.38% | -0.02 | $11,965,354.31 | 114,103 | Consumer Discretionary | Automobiles | India |
Kotak Mahindra Bank | 0.38% | 0.10 | $11,813,339.01 | 431,909 | Financials | Banks | India |
Network International Holdings | 0.37% | 0.03 | $11,564,861.37 | 2,592,363 | Information Technology | IT Services | United Arab Emirates |
Airports of Thailand | 0.35% | -0.01 | $10,779,391.64 | 5,189,000 | Industrials & Business Services | Transportation Infrastructure | Thailand |
Shanghai International Airport | 0.34% | -0.03 | $10,498,063.52 | 907,108 | Industrials & Business Services | Transportation Infrastructure | China |
Anhui Conch Cement | 0.33% | -0.08 | $10,447,502.20 | 1,322,446 | Materials | Construction Materials | China |
Komercni Banka | 0.32% | 0.06 | $10,065,298.63 | 328,103 | Financials | Banks | Czech Republic |
BIM Birlesik Magazalar | 0.32% | -0.01 | $10,009,535.33 | 971,992 | Consumer Staples | Food & Staples Retailing | Turkey |
Songcheng Performance development | 0.31% | N/A | $9,685,399.00 | 3,571,460 | Consumer Discretionary | Hotels Restaurants & Leisure | China |
Tenaris | 0.31% | 0.04 | $9,632,518.00 | 606,200 | Energy | Energy Equipment & Services | Argentina |
Rede D Or Sao Luiz | 0.29% | N/A | $8,956,030.17 | 680,973 | Health Care | Health Care Providers & Services | Brazil |
Tata Consultancy | 0.27% | -0.01 | $8,503,234.77 | 216,801 | Information Technology | IT Services | India |
Greentown Service | 0.22% | 0.03 | $6,747,091.63 | 5,468,000 | Industrials & Business Services | Commercial Services & Supplies | China |
Ozon Holdings | 0.21% | N/A | $6,515,214.30 | 150,885 | Consumer Discretionary | Internet & Direct Marketing Retail | Cyprus |
Kweichow Moutai | 0.20% | 0.03 | $6,356,506.96 | 20,800 | Consumer Staples | Beverages | China |
Ping An Insurance | 0.10% | N/A | $2,992,100.13 | 224,911 | Financials | Insurance | China |
JD Health International | 0.08% | N/A | $2,536,146.37 | 131,100 | Consumer Discretionary | Internet & Direct Marketing Retail | China |
Gree Electric Appliances Inc of Zhuhai | 0.04% | -0.66 | $1,333,674.90 | 140,700 | Consumer Discretionary | Household Durables | China |
China Resources Mixc Lifestyle Services | 0.04% | N/A | $1,137,768.27 | 245,400 | Real Estate | Real Estate Management & Development | China |
Anhui Conch Cement | 0.01% | -0.41 | $273,976.50 | 34,700 | Materials | Construction Materials | China |
Songcheng Performance development | 0.01% | N/A | $254,228.29 | 93,800 | Consumer Discretionary | Hotels Restaurants & Leisure | China |
N/A indicates Not Available.
Numbers may not add due to rounding and/or the exclusion of reserves and other assets.
Sector Diversification (31-Dec-2020)
Sector Diversification | % of Fund | % of Indicative Benchmark | % Underweight/Overweight |
---|---|---|---|
Consumer Staples | 15.76% | 5.86% | |
Financials | 24.28% | 17.96% | |
Information Technology | 24.69% | 20.48% | |
Communication Services | 10.46% | 11.63% | |
Utilities | 0.46% | 2.02% | |
Industrials & Business Services | 2.65% | 4.34% | |
Real Estate | 0.04% | 2.05% | |
Health Care | 1.78% | 4.74% | |
Consumer Discretionary | 14.56% | 18.34% | |
Energy | 0.31% | 5.02% | |
Materials | 1.67% | 7.56% |
Numbers may not add due to rounding and/or the exclusion of reserves and other assets.
T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.
Sector Attribution - Top and Bottom Five by Total Value Added (31-Dec-2020)
Representative Portfolio vs BenchmarkSector | Total Value Added % | Value from SectorWeight % | Value from Stock Selection % |
---|---|---|---|
Financials | 1.97% | 0.23% | 1.74% |
Information Technology | 0.75% | 0.58% | 0.16% |
Energy | 0.33% | 0.21% | 0.12% |
Real Estate | 0.32% | 0.30% | 0.02% |
Utilities | 0.04% | -0.02% | 0.05% |
Consumer Staples | -0.03% | -0.26% | 0.23% |
Communication Services | -0.18% | 0.05% | -0.22% |
Health Care | -0.26% | 0.01% | -0.27% |
Materials | -0.90% | -0.49% | -0.40% |
Consumer Discretionary | -0.95% | 0.43% | -1.38% |
Total | 0.61% | 0.55% | 0.06% |
Numbers may not add to 100% due to rounding; all numbers are percentages.
Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.
Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.
Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.

We believe (as we have for some time) that, by and large, emerging market countries are in relatively good economic shape. When compared with developed markets, and particularly the U.S., they are at an earlier stage in terms of economic recovery and also in terms of improvements in earnings and margins. However, emerging markets have seen volatile conditions in the recent sell-off in global equities; while we remain mindful of the risks to the asset class, such as continued trade tensions between the U.S. and China and the future path of U.S. monetary policy, our view is that valuations are at attractive levels, while currencies have also corrected. Indeed, we have been taking advantage of this volatility to add to our positions in companies where we have a high level of conviction over their long-term prospects.
Overall, the portfolio continues to have a growth tilt. We are overweight to the IT sector, consumer-related stocks, and financials, where our highly detailed investment research is helping us to identify companies that we believe offer good growth potential. We are underweight to areas of the market where we struggle to find companies with sufficient scope for growth, such as energy, materials, and telecom names.
We Retain Our Overweight To IT; Sector Remains One Of The Largest In Emerging Markets
The size of the IT sector in emerging markets has fallen since the recent MSCI sector reclassification, with several companies (including some names that we continue to own in the portfolio, such as Chinese internet companies Alibaba and Tencent) being moved to either the consumer discretionary space or the new communication services sector. However, IT remains one of the largest sectors within emerging markets, and we retain our overweight.
During the quarter, we initiated a position in Brazilian company Stone, which engages in the provision of financial technology solutions. The company processes payments, which we believe gives it a great deal of scope to grow and expand into other segments and businesses. We met the company following an investment research trip to Brazil in November, and we believe it offers compelling investment potential.
Private Sector Banks In India Are Continuing To Gain Market Share
The portfolio is overweight to financials, the largest sector in emerging markets, where we have identified good investment potential among selected banking and insurance stocks across a range of countries. For example, in India, we think there are some significant tailwinds for private sector banks. Broadly speaking, in our view, the state-owned banks in India are continuing to suffer from some poor loans and poor asset quality, and this is curbing the amount of capital they have to grow their loan books. The private banks are stepping into that gap; by and large they are taking market share in terms of credit growth, and return on equity is improving. These companies are also investing in their online banking and product offerings, and we think that this is helping them to build a stronger competitive position. While we are mindful of recent issues in the wholesale funding market in India, we believe that the risks have reduced. Overall, our view is that the banks that we own here have high-quality balance sheets and diversified sources of funding, with less dependence on wholesale funding. Another issue we are cognizant of is the recent change in leadership of the Reserve Bank of India following the unexpected resignation of the previous central bank head, who had disagreements with Prime Minister Narendra Modi over monetary policy. While we do not view this as a significant near-term risk, we will be monitoring the situation closely.
Over the quarter, we initiated or added to some positions in the financials sector and trimmed our holdings in a number of other names.
- We initiated a position in Brazilian stock exchange company B3, following an investment research trip to Brazil in November and a meeting with the company's CFO. We would expect the stock to benefit from an environment of improving growth and market performance. With interest rates coming down and risk appetite increasing, we believe there are a number of tailwinds for the equity market environment and, therefore, the company's earnings. B3 also trades at a discount to other global exchanges.
- We added to our position in Al Rajhi, Saudi Arabia's second-largest bank. The Saudi banking sector is favorably positioned, in our view; it is an oligopolistic market with high barriers to entry. We expect the banks to benefit from interest rate hikes from the U.S. Federal Reserve (given the Saudi currency's peg to the U.S. dollar). In our view, economic expansion and loan growth are also set to recover. We believe that Al Rajhi is the highest-quality Saudi bank, and we expect it to grow margins and return on equity.
- We added to our position in South African insurer Sanlam, which offers both life and non-life cover as well as other financial services. We prefer the name to fellow South African financial services group FirstRand (which we also hold; see below for further details) and switched some of our holding in this company into Sanlam. We also believe that Sanlam is good operationally, and the company continues to take market share.
- We trimmed our position in South African group FirstRand, which, in our view, is the highest-quality bank in emerging markets, with superior return on equity. We believe the medium- to long-term prospects for the company remain on track, although on a near-term view the valuation is looking a little stretched after strong outperformance. We have, therefore, taken some profits and switched into insurer Sanlam (see above for further details).
- We trimmed our position in Brazilian name Itau Unibanco on strong outperformance. The bank remains a core position for the portfolio, given the supportive domestic environment, as loan growth picks up and consumer confidence rebounds. The banking industry structure in Brazil is also attractive, in our view, with a high level of consolidation and a well-capitalized system.
- We reduced our position in Ping An, China's largest insurer. The company's advanced technology platform is a competitive advantage, in our view, and also provides other financial technology options and opportunities. We continue to like the name for what we see as its favorable long-term fundamentals, but given the increased equity market volatility at present, associated with "trade war" rhetoric escalation, we have trimmed the position as the company has high equity market exposure.
Growing Prosperity Across Developing World Is Providing A Strong Tailwind For Consumer Stocks, In Our View
Increased prosperity across the emerging world remains a powerful medium- to long-term trend, in our view. We have identified several companies that we believe are well placed to take advantage of the considerable business opportunities that this growing wealth presents; as a result, the portfolio has a large overweight to consumer-related stocks.
Over the period, we trimmed our holding in Brazilian name Lojas Renner, one of our largest relative positions, following a strong period of outperformance in the wake of Jair Bolsonaro's election victory. We believe the apparel retailer has strong operational efficiency, and, in our view, this may enable it to continue to take market share. The improving consumer environment may provide a further boost. Given Lojas Renner's significant recent outperformance, taking some profits seemed prudent, in our view.
Portfolio Remains Underweight To Commodity-Driven Sectors
We retain our long-standing underweight to the commodity-driven energy and materials sectors. Broadly speaking, we struggle to identify stocks in these areas of the market with sufficient growth potential, while we continue to have a negative view on the longer-term outlook for the price of oil. Having said that, we have stock-specific positions in markets including Russia and the United Arab Emirates, partially as a counterbalance to our large underweight to energy; both markets are correlated to oil-price trends.
We have also identified some stock-specific opportunities in the materials space and made some changes to our holdings here over the quarter; we initiated a position in a pulp producer and trimmed our holding in a mining stock.
- We initiated a position in Brazilian company Suzano, which became the world's largest pulp producer following a merger. Suzano is a relatively low-cost producer, and with strong pulp demand and robust free cash flow generation, we believe the near-term outlook for the company is supportive.
- We reduced our holding in Fresnillo, a Mexican gold mining company listed in London. We trimmed the name because we believe production has peaked and also on concerns about a deteriorating political environment with the election victory last year of left wing populist candidate Andres Manuel Lopez Obrador. In our view, the risk outlook and risk premium for the stock has increased on the back of this development.
We Are Underweight To Communication Services, Largely A Result Of Low Exposure To Telecom Names
One of the key changes in the recent MSCI sector reclassification was that the telecommunication services sector was expanded and renamed communication services. As part of the changes, some securities previously assigned to information technology or consumer discretionary were reclassified as communication services. We are underweight to the new sector, largely a result of our low exposure to telecommunications stocks; this area of the market is relatively mature and "ex growth" even within the emerging world.
However, we have a sizable position in communication services in absolute terms, largely a result of names that have moved across from other sectors during the reclassification and which we continue to hold in the portfolio, the foremost of which is Chinese internet stock Tencent, in which we continue to have a high level of conviction.
Country Diversification (31-Dec-2020)
Country Diversification | % of Fund | % of Indicative Benchmark | % Underweight/Overweight |
---|---|---|---|
Hong Kong | 3.48% | 0.00% | |
Brazil | 7.61% | 5.10% | |
Russia | 4.56% | 2.95% | |
Argentina | 1.57% | 0.12% | |
Peru | 1.58% | 0.24% | |
Philippines | 1.63% | 0.74% | |
South Korea | 14.28% | 13.46% | |
Belgium | 0.80% | 0.00% | |
Hungary | 0.90% | 0.21% | |
United Arab Emirates | 1.19% | 0.53% | |
Netherlands | 0.41% | 0.00% | |
Chile | 0.83% | 0.50% | |
Czech Republic | 0.32% | 0.10% | |
Cyprus | 0.21% | 0.00% | |
Pakistan | 0.00% | 0.02% | |
Turkey | 0.32% | 0.37% | |
Egypt | 0.00% | 0.08% | |
Greece | 0.00% | 0.11% | |
Indonesia | 1.22% | 1.34% | |
Thailand | 1.64% | 1.82% | |
Colombia | 0.00% | 0.20% | |
South Africa | 3.22% | 3.47% | |
Mexico | 1.39% | 1.73% | |
Kuwait | 0.00% | 0.49% | |
Taiwan | 12.18% | 12.67% | |
Poland | 0.00% | 0.68% | |
Malaysia | 0.00% | 1.51% | |
Saudi Arabia | 0.46% | 2.44% | |
India | 6.44% | 9.25% | |
China | 30.40% | 39.17% |
A maximum of 30 largest countries are displayed.
Numbers may not add due to rounding and/or the exclusion of reserves and other assets.
Country Attribution - Top and Bottom Five by Total Value Added (31-Dec-2020)
Representative Portfolio vs BenchmarkCountry | Total Value Added % | Value from CountryWeight % | Value from Stock Selection % |
---|---|---|---|
India | 0.67 | -0.05 | 0.73 |
Argentina | 0.45 | 0.04 | 0.41 |
Saudi Arabia | 0.30 | 0.27 | 0.03 |
Brazil | 0.24 | 0.34 | -0.09 |
Peru | 0.20 | 0.12 | 0.09 |
Mexico | -0.05 | -0.03 | -0.02 |
Turkey | -0.05 | -0.00 | -0.05 |
Taiwan | -0.25 | -0.01 | -0.23 |
Thailand | -0.34 | 0.01 | -0.35 |
China | -1.18 | 0.65 | -1.83 |
Total | 0.61 | 2.19 | -1.58 |
Numbers may not add to 100% due to rounding; all numbers are percentages.
Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.
Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. Analysis by T. Rowe Price Associates, Inc.
Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.
By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.
In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.
Please note that the Fund typically has a risk of high volatility.
Indicative Benchmark Data Source: MSCI. MSCI and its affiliates and third party sources and providers (collectively, “MSCI”) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. Historical MSCI data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
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.
Daily performance data is based on the latest available NAV. Performance returns for share classes less than 1 year old (and associated benchmarks) are cumulative rather than annualised.
Please note that no management fees are charged to the S and J share classes. No administration agent fees are charged to the J class. Fee arrangements for the S and J classes are made directly with the investment manager. Please see the prospectus for further information.
The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors and via www.troweprice.com.
Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class. The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.
Net Asset figure applies to all share classes.
Number of years managing the fund. In the case of co-portfolio management, the longer tenure is displayed.
The specific securities identified and described in this report do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.
A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.
Gonzalo Pángaro is the lead portfolio manager for the Emerging Markets Equity Strategy in the Equity Division. He is chairman of the Investment Advisory Committee for the Emerging Markets Equity Strategy and a member of the International Equity Steering Committee. Gonzalo is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.