SICAV
Global Focused Growth Equity Fund
Concentrating high conviction positions in leading global investment prospects.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 31-Jan-2014
Performance figures calculated in GBP
Strategy
We remain in a low-growth, low-interest rate, and high disruption world and believe this will persist. We were well positioned to take advantage of the cyclical rally in the latter part of 2019 and do not currently see any reason to become defensive. We�have been carefully contrarian with the portfolio by leaning into our cyclical names, but we also continued to have exposure to quality, durable growth names that sold off in early autumn.
�
There are a number of data points that we think could support equity markets in the new year. Trade and Brexit-related tail risks have decreased, and we may have found the bottom in global manufacturing PMIs as well as inflation and interest rate expectations. Year-over-year comparables in the first half of 2020 should be much easier in the global industrial economy as we lap the initial disruptions caused by the U.S.-China trade conflict a year ago. We also expect that the U.S. Federal Reserve is unlikely to interfere with the upcoming elections, so we should continue to have a supportive interest rate environment and money growth.
�
We view China, which represents our largest country overweight, as a potentially rich source of highly innovative companies that are at the forefront of secular change and disruption. We have used periods of volatility to add to our positions in several of the country's big internet platform companies. While there was a broad-based slowdown in the Chinese economy in 2019, we think it is showing signs of stabilizing and expect that it will gradually improve as the year unfolds, especially as trade tensions ease. The second half of 2020 will be dominated by the U.S. election, and we are conscious of the unpredictability of a presidential race that remains wide open and has the potential to be very disruptive for many sectors.
�
As always, we are remaining true to our framework: investing in quality companies where we have an insight about improving economic returns in the future and where valuations aren't excessive.�Given our focus on companies on the right side of change, we remain wary of areas that are subject to structural challenges. However, we think there are benefits to being carefully contrarian in select areas where we have differentiated insights.
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 that have the potential for above average and sustainable rates of earnings growth. The companies may be anywhere in the world, including emerging markets.Investment Approach
- Single decision maker provides clear accountability.
- Identify “best ideas” by assessing companies in a global sector context, using bottom-up approach to create focused, high- conviction portfolio.
- Global research platform uses fundamental analysis to identify companies with superior and sustainable growth prospects, and improving fundamentals.
- Macroeconomic and local market factors are integrated in stock selection decisions.
- Valuation appeal is measured against local market and broad sector opportunity set.
- Broad range of stocks across all capitalizations, incorporating developed and emerging markets.
Portfolio Construction
- Number of holdings: typically 60-80 stocks
- Individual positions: Typically 0.5%-5.0%
- Emerging markets exposure: +/-15% of benchmark
- Broad sector ranges: +/-15% of benchmark
- Country ranges: +/-10% of benchmark (U.S.A. is +/-20%)
- Currency hedging: Currency views incorporated in stock selection
- Cash target range: Typically less than 5%, Maximum 10%
- Expected tracking error: 400 to 800 basis points
Performance (Class Q | GBP)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 11.28% | 12.36% | 15.05% | 16.24% |
| Indicative Benchmark % | 8.18% | 6.03% | 9.65% | 11.14% |
| Excess Return % | 3.10% | 6.33% | 5.40% | 5.10% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 30.02% | 16.51% | 17.52% | 17.55% |
| Indicative Benchmark % | 21.71% | 9.86% | 12.00% | 12.58% |
| Excess Return % | 8.31% | 6.65% | 5.52% | 4.97% |
Recent Performance
| Month to DateData as of 03-Apr-2020 | Quarter to DateData as of 03-Apr-2020 | Year to DateData as of 03-Apr-2020 | 1 MonthData as of 29-Feb-2020 | 3 MonthsData as of 29-Feb-2020 | |
|---|---|---|---|---|---|
| Fund % | -3.11% | -3.11% | -12.68% | -6.83% | -2.96% |
| Indicative Benchmark % | -2.73% | -2.73% | -18.28% | -5.13% | -4.70% |
| Excess Return % | -0.38% | -0.38% | 5.60% | -1.70% | 1.74% |
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.
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
75
Largest Top Contributor^
Samsung Electronics
By 0.43%Largest Top Detractor^
CME Group
By -0.79%Top Purchase
Charles Schwab (N)
2.61%Top Sale
Boeing (E)
0.00%
Sectors
Total
Sectors
10
Top Contributor^
Information Technology
Net Contribution 1.17%Top Detractor^
Health Care
Net Contribution -0.69%Largest Overweight
Information Technology
Largest Underweight
Consumer Staples
Countries
Total
Countries
19
Largest Overweight
China
Largest Underweight
United States
Currency
Total
Currencies
14
Largest Overweight
U.S. dollar
Largest Underweight
Canadian dollar
Team (As of 31-Mar-2020)
David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.
Mr. Eiswert has 19 years of investment experience, 16 of which have been with T. Rowe Price. Prior to joining the firm in 2003, he was an analyst at Mellon Growth Advisors and Fidelity Management and Research. He also worked as a consultant in the communications industry.
Mr. Eiswert earned a B.A., summa cum laude, in economics and political science from St. Mary's College of Maryland and an M.A. in economics from the University of Maryland, College Park. He also has earned the Chartered Financial Analyst designation.
- Fund manager2012
since - Years at16
T. Rowe Price - Years investment19
experience
Josh Nelson is a director of research in the U.S. Equity Division of T. Rowe Price. Previously, he was an associate portfolio manager for the Global Focused Growth Equity Strategy. He is an Investment Advisory Committee member of the Global Stock Strategy. He also serves on the Equity Steering Committee. Mr. Nelson is a vice president of T. Rowe Price Group, Inc.
Mr. Nelson has 17 years of investment experience, 12 of which have been with T. Rowe Price. He served as a summer intern with T. Rowe Price in 2006, covering agricultural commodities and ethanol companies. Prior to joining the firm in 2007, he was an investment banker for Citigroup Global Markets, Inc.
Mr. Nelson earned a B.S., with honors, in industrial systems and engineering from the University of Florida. He also earned an M.B.A., with honors, in finance from the University of Pennsylvania, The Wharton School.
- Fund manager2009
since - Years at12
T. Rowe Price - Years investment17
experience
Kurt Umbarger is the regional head of the Equity Investment Specialist Group of T. Rowe Price. Previously, he was a global equity portfolio specialist in the International Equity Division. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Mr. Umbarger has 26 years of investment experience, all of which have been at T. Rowe Price. He joined the firm in 1992 and has been a portfolio specialist since 2001. Prior to joining the global equity team in 2005, Mr. Umbarger worked with the international and emerging market equity teams. As a portfolio specialist, he has traveled the world, working closely with institutional clients, consultants, and prospects.
Mr. Umbarger earned a B.S. in finance from Towson University and an M.S.F. in finance from Loyola University Maryland. He also has earned the Chartered Financial Analyst designation and is a Series 6, 7, 63, and 65 registered representative.
- Years at27
T. Rowe Price - Years investment27
experience
Laurence Taylor is a portfolio specialist in the Equity Division at T. Rowe Price, representing the firm's global equity strategies to institutional clients, consultants and prospects. Mr. Taylor is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.
Mr. Taylor has 19 years of investment experience, 10 of which have been with T. Rowe Price. Prior to joining the firm in 2008, Mr. Taylor was a quantitative portfolio manager at AXA Rosenberg, with responsibility for European institutional clients, and began his career at Hewitt Associates in the UK investment practice. At Hewitt, Mr. Taylor provided investment advice to European institutions as a client-facing consultant before specializing in the research and selection of global and regional equity managers in the manager research team.
Mr. Taylor obtained his B.A., with honours, from Greenwich University and has earned the Chartered Financial Analyst designation.
- Years at11
T. Rowe Price - Years investment20
experience
Jennifer O'Hara Martin is a global equity portfolio specialist in the U.S. Equity Division of T. Rowe Price. She is a member of the Global Growth Equity, Global Focused Growth Equity, Global Technology Equity, Communications & Technology Equity, Science & Technology Equity, and US Structured Research Equity Strategy teams. Ms. Martin is a vice president of T. Rowe Price Group, Inc.
Ms. Martin has 23 years of investment experience, 14 of which have been at T. Rowe Price. She joined the firm in 2005 as an equity research analyst covering food retailing and discount stores and had portfolio management responsibilities for the firm's US Structured Research Equity Strategy. Prior to joining the firm, she was an equity research analyst at Northern Trust, following telecommunications and business services companies. Ms. Martin was also employed by Merrill Lynch, where she was an investment banking analyst.
Ms. Martin earned a B.S. in agricultural economics from the University of Illinois at Urbana-Champaign and an M.B.A. from Northwestern University, Kellogg School of Management. She presently serves on the Board of Trustees of the Baltimore Museum of Art and as a committee member for the Northwestern University, Kellogg School of Management, Asset Management Practicum.
- Years at15
T. Rowe Price - Years investment24
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 | $15,000 | $100 | $100 | 5.00% | 160 basis points | 1.77% |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 75 basis points | 0.81% |
| Class Q | $15,000 | $100 | $100 | 0.00% | 75 basis points | 0.92% |
Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.
David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.