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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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SICAV

Global Growth Equity Fund

Seeking to select superior stocks from the broadest global equity opportunity set.

ISIN LU0382933116 Bloomberg TRGBLEI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

20.83%
$777.2m

1YR Return
(View Total Returns)

Manager Tenure

49.00%
12yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.13
5.54%

Inception Date 27-Oct-2008

Performance figures calculated in USD

31-May-2021 - Scott Berg, Portfolio Manager,
Recognising the challenging pushes and pulls in the market, we are trying to be more balanced in the portfolio and not be overly offensive or defensive. We think volatility is likely to increase, in part due to higher dispersion within factors, styles, and sectors, an environment that is well suited for active investors. While financial and market conditions continue to change, our philosophy, rooted in stock selection and a thoughtful approach to portfolio construction, has not.
Scott Berg
Scott Berg, Portfolio Manager

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and a vice president of T. Rowe Price Group, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

The current pushes and pulls in the market are incredibly complex. From a fundamental perspective, near- to intermediate-term economic and corporate data are likely�going to be exceedingly strong. We are still operating in a very low interest rate world, in any absolute sense, rates remain near historic lows, with a massive amount of central bank liquidity and fiscal stimulus at a time when real GDP growth is picking up and corporate earnings are likely to accelerate this year and next. While equity valuations are still more reasonable when compared with bond yields, they are clearly above average for a normal environment, which causes some concern.

The ongoing health pandemic offers its own pushes and pulls. There has been a marked improvement in vaccine distribution within the U.S., with 2% to 3% of the country's population being vaccinated each week. However, the vaccine rollouts in parts of Europe and Asia have been rockier and the virus is likely to remain in the world for some time, particularly in some emerging market countries where we may be more than a year out before many people can obtain the vaccine, which amplifies risks of virus variants.�

The Biden administration's emerging priorities offer positives and negatives for equity investors as well. Widespread fiscal stimulus has supported asset prices, but the increasing likelihood of rising corporate tax rates could put a damper on after-tax corporate earnings. Geopolitically, relations between the U.S. and China remain complex. The arrival of a new U.S. administration increased expectations for less adversarial relations, but it has become clear that underlying tensions between the two superpowers are real, structural, and unlikely to go away.

We have also seen exuberance and extreme positive sentiment in markets. There has been an explosion in special-purpose acquisition companies and initial public offerings as well as retail investors with growing risk-seeking behavior driving price movements. While we think we have entered a new equity bubble with areas of the market looking frothy and irrational, it could be years before we experience a meaningful reversion, which means there could still be room for equities to move higher.

Recognizing the challenging pushes and pulls in the market, we are trying to be more balanced with the portfolio, keeping the overall portfolio beta near 1.0, not overly offensive or defensive, while focusing on picking stocks broadly across sectors and regions. We think volatility is likely to increase, in part due to higher dispersion within factors, styles, and sectors, and think such an environment is well suited for active investment. While financial and market conditions have changed meaningfully, and will continue to do so, our investment philosophy, rooted in stock selection and a thoughtful approach to portfolio construction, has not. It is this consistent process that allows us to successfully navigate more challenging cycles.

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 companies 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 large-cap stocks, incorporating developed and emerging markets.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

Portfolio Construction

  • Number of holdings: Typically around 130 holdings.
  • Individual positions: Typically 0.3%-3.0%, maximum 5%
  • Emerging markets exposure: +/- 15% of benchmark
  • Broad sector ranges: +/- 10% of benchmark
  • Country ranges: +/- 10% of benchmark (USA is +/- 20%)
  • Currency hedging: Currency views incorporated in stock selection
  • Cash target range: Typically less than 5%
  • Expected tracking error: 300 to 700 basis points

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 49.00% 20.83% 20.45% 13.29% 17.42%
Indicative Benchmark % 41.85% 13.86% 14.18% 9.58% 12.71%
Excess Return % 7.15% 6.97% 6.27% 3.71% 4.71%

Inception Date 27-Oct-2008

Manager Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Data as of 31-May-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 75.40% 20.37% 19.60% 12.81%
Indicative Benchmark % 54.60% 12.07% 13.21% 9.14%
Excess Return % 20.80% 8.30% 6.39% 3.67%

Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Data as of 31-Mar-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 11-Jun-2021 Quarter to DateData as of 11-Jun-2021 Year to DateData as of 11-Jun-2021 1 MonthData as of 31-May-2021 3 MonthsData as of 31-May-2021
Fund % 1.27% 6.66% 8.63% -0.29% 3.89%
Indicative Benchmark % 1.18% 7.24% 12.15% 1.56% 8.83%
Excess Return % 0.09% -0.58% -3.52% -1.85% -4.94%

Inception Date 27-Oct-2008

Indicative Benchmark: MSCI All Country World Index Net

Indicative Benchmark: MSCI All Country World Index Net

Performance figures calculated in USD

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. 

31-May-2021 - Scott Berg, Portfolio Manager,
Global equities generated modest returns in May, as investors balanced generally positive news around economic data and coronavirus vaccine programmes with concerns about rising inflation, fading stimulus, and rising coronavirus case rates in certain areas. Within the portfolio, stock selection in consumer discretionary lowered relative returns the most. Shares of Etsy, the world’s largest online marketplace for unique, creative, and often homemade goods, fell despite reporting solid first-quarter results in May. Management indicated that much of the earnings beat was transitory, attributable to the stronger-than-expected impact of stimulus spending. Markets also appeared wary of weak second-quarter guidance that pointed to a deceleration in gross merchandise sales. During the coronavirus pandemic, Etsy became one of the few go-to marketplaces for everyday purchases, a trend that we believe will be durable. Conversely, stock choices in consumer staples aided relative results the most, although our underweight allocation hurt. Shares of United Spirits rose following a solid quarterly earnings report that featured margin growth and debt reduction. We appreciate that the company has managed the income statement and balance sheet during an adverse operating environment, and we are optimistic about the growth trajectory as business conditions improve.

Holdings

Total
Holdings
183
Largest Holding Amazon.com 3.24% Was (31-Dec-2020) 3.43%
Other View Full Holdings Quarterly data as of  31-Mar-2021
Top 10 Holdings 17.02% View Top 10 Holdings Monthly data as of  31-May-2021

Largest Top Contributor^

Alphabet
By 1.33%
% of fund 2.45%

Largest Top Detractor^

Amazon.com
By -2.35%
% of fund 3.24%

^Absolute

Quarterly Data as of 31-Mar-2021

Top Purchase

Amazon.com
3.24%
Was (31-Dec-2020) 3.43%

Top Sale

Morgan Stanley
0.83%
Was (31-Dec-2020) 1.2%

Quarterly Data as of 31-Mar-2021

31-Mar-2021 - Scott Berg, Portfolio Manager,

Over the quarter, our positioning remained largely sector neutral. We are currently in a very challenging environment where markets are debating the timing of the end to the pandemic and what the world will look like in the next six to 12 months. This is creating more complexity for us as investors, and with so many unknowns, our most pressing goal is to keep a very balanced portfolio of diverse holdings across sectors and regions. As always, we want to own truly innovative companies that can produce solid growth over a two- to three-year time horizon, and the recent shift away from secular growth winners that were COVID-19 beneficiaries has given us the opportunity to pick up or add to higher-quality growth companies at what we feel are good prices. However, we are mindful that valuations are stretched in some areas.

Sector-wise, we are overweight consumer discretionary, health care, and financials, though not dramatically so, and are underweight energy and consumer staples. During the quarter, our allocations to industrials and materials increased, while our exposure to information technology and financials decreased. Regionally, our allocation to North America increased, while exposure to Pacific ex-Japan decreased. We continue to be overweight fast-growing emerging market countries that have low debt-to-gross domestic product (GDP) ratios and attractive demographic growth, such as India, Indonesia, Vietnam, and Peru.

Consumer Discretionary

In our view, there are more coronavirus beneficiaries in the consumer discretionary sector than anywhere else, but this has led to a dramatic demarcation between winners and losers. COVID-19 has pulled forward years of e-commerce share gains in the span of a few months, and we have an expanded and diverse set of names levered to that trend. We continue to think the market is severely underestimating the profound effect the pandemic has had on the consumer landscape. It is now vital for companies to view their businesses through an omnichannel lens, and it is no longer an option for businesses to ignore the need for an online presence.

  • We participated in the initial public offering for Coupang, South Korea's largest e-commerce platform. We believe the company will grow much larger in South Korea over time as it continues to disrupt offline commerce by offering consumers faster delivery, more selections, and lower prices. The firm has heavily invested in logistics and technology, which has created a strong moat that makes its strategy difficult to follow by competitors. The company is also expanding into food delivery, which could be another driver of growth in the future.
  • We eliminated our position in Jollibee Foods, the dominant quick-service restaurant operator in the Philippines. This is a name we have owned in the portfolio for years as we like the company's exposure to the demographic growth trends in the region. However, the country is still struggling with pandemic-related headwinds, and with our outlook for the company more opaque, we chose to exit our position.
  • We continue to have a core position in Amazon.com. While many investors are debating how much further the stock has to run given its impressive performance in 2020, we still think the extraordinary long-run e-commerce trends that have been pulled forward by the pandemic, as well as the company's strong position in cloud computing via its Amazon Web Services, mean Amazon.com is still well positioned for growth over the long term.

Health Care

The long-term secular tailwinds for the health care sector remain in place. Within the sector, we have meaningful exposure to life sciences tools and services companies making biologics or facilitating research and development efforts for companies in the biopharma space, as well as equipment and supplies companies focused on medical diagnostics and testing. We also own companies tied to the ongoing secular trend of robotic surgery and have exposure to U.S. managed care where fundamentals remain strong and valuations are attractive. Within biotechnology, we continue to invest in highly innovative companies that have the best chance of dominating their space either through drugs likely to become the standard of care in large and well-characterized markets, or companies where we have a degree of confidence that the repeatability of their platform gives them the potential to become much larger over time.

  • Quidel is a manufacturer of diagnostic health care products and rapid diagnostic testing products. The company has benefited from strong demand for its rapid point-of-care coronavirus antigen diagnostics test, but the stock has recently suffered due to durability concerns following the rollout of several coronavirus vaccines. We initiated a position on weakness, as we believe that Quidel is poised to emerge from the pandemic with a higher earnings base. We also maintain a favorable view of the company's pipeline.

Real Estate

Real estate has been challenged as the pandemic has reduced demand, but we think the sector stands to benefit as the pandemic wanes and demand accelerates. Additionally, in a lower-growth world, we think this is an area that offers solid yield backed by tangible, quality assets. Within the sector, we have a diverse mix of high-quality names of both residential and commercial assets in the U.S., Philippines, China, and London.

  • We started a position in Welltower, a real estate investment trust that works with senior housing operators, post-acute providers, and health systems to fund real estate and infrastructure needed to scale innovative care delivery models. We believe Welltower could emerge from the pandemic stronger given its favorable liquidity profile and the likelihood for significantly increased demand for senior housing in the coming years. In addition, the company's recent purchases of distressed senior housing could add value over time.
  • We initiated a position in KE Holdings, the leading property online and offline brokerage platform in China. The company operates a disruptive platform called Agent Cooperation Network, which is similar to the Multiple Listing Service (MLS) used by realtors in the U.S. KE Holdings is rapidly gaining market share and stands to benefit from strong growth in China's real estate market and the increased adoption of brokers for new home sales by property developers.

Information Technology

Advancements in areas like artificial intelligence (AI) and enterprise software are not only affecting technology companies, but also reshaping more traditional industries once viewed as less susceptible to business model disruption. The powerful long-run trends that we believe will drive value creation in the technology sector still remain and, in some cases, have been accelerated by the ongoing pandemic. Aftereffects from the pandemic could also result in lasting behavioral changes with more people working remotely and payment methods skewing more digitally. As a result, software and electronic payments are areas of focus for our sector exposure, but we also remain positioned to benefit from increasing AI adoption as well as the growing technology consumption in emerging markets.

  • We eliminated our stake in Monolithic Power Systems, an analog semiconductor company focused on power management. This high-quality company, which has differentiated technology, high customer service, and good free cash flow generation, features diversity in product wins across multiple industries and a highly fragmented customer base. However, share prices have appreciated recently due to the company's strong relative performance, and we shifted the sale proceeds into names with less demanding valuations.
  • We eliminated our position in Temenos, which packages back-end software for banks. This is a name we have owned for some time, and with the stock spiking late in the period, we chose to exit our position in favor of names where we have stronger conviction.

Sectors

Total
Sectors
11
Largest Sector Information Technology 20.68% Was (30-Apr-2021) 20.65%
Other View complete Sector Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: MSCI All Country World Index

Top Contributor^

Communication Services
Net Contribution 0.25%
Sector
-0.04%
Selection 0.29%

Top Detractor^

Information Technology
Net Contribution -1.18%
Sector
0.04%
Selection
-1.22%

^Relative

Quarterly Data as of 31-Mar-2021

Largest Overweight

Consumer Discretionary
By4.49%
Fund 17.05%
Indicative Benchmark 12.56%

Largest Underweight

Energy
By-3.19%
Fund 0.15%
Indicative Benchmark 3.34%

Monthly Data as of 31-May-2021

31-May-2021 - Scott Berg, Portfolio Manager,
The powerful long-run trends that we believe will drive value creation in the technology sector remain and, in some cases, have been accelerated by the ongoing pandemic. In our view, the aftereffects from the pandemic could also result in lasting behavioural changes with more people working remotely and payment methods skewing more digitally. As a result, software and electronic payments are areas of focus for our sector exposure, but we also remain positioned to benefit from increasing artificial intelligence adoption as well as the growing technology consumption in emerging markets.

Countries

Total
Countries
27
Largest Country United States 55.76% Was (30-Apr-2021) 55.59%
Other View complete Country Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: MSCI All Country World Index

Top Contributor

N/A

Top Detractor

N/A

Largest Overweight

Germany
By4.03%
Fund 6.50%
Indicative Benchmark 2.47%

Largest Underweight

Japan
By-4.90%
Fund 1.10%
Indicative Benchmark 6.00%

Monthly Data as of 31-May-2021

Currency

Total
Currencies
18
Largest Currency 67.33% Was (30-Apr-2021) 67.42%
Other View completeCurrency Diversification

Monthly Data as of  31-May-2021

Indicative Benchmark : MSCI All Country World Index

Largest Overweight

U.S. dollar
By 8.42%
Fund 67.33%
Indicative Benchmark 58.90%

Largest Underweight

Japanese yen
By -4.89%
Fund 1.11%
Indicative Benchmark 6.00%

Monthly Data as of  31-May-2021

Team (As of 10-Jun-2021)

Scott Berg

Scott Berg is the portfolio manager for the T. Rowe Price Global Growth Equity Strategy and a vice president of T. Rowe Price Group, Inc.

Mr. Berg has 17 years of investment experience, all of which have been with T. Rowe Price. He joined the firm in 2002 as a research analyst covering the business services sector after serving as a summer intern in 2001. In 2005, he joined the global equity team as an associate portfolio manager and in 2008 launched the Global Growth Equity Strategy. Prior to T. Rowe Price, he was the manager of financial analysis and planning for Mead Consumer and Office Products. Previously, Mr. Berg was also employed by McKinsey & Company as a business analyst and was a core team member on the firm's global growth initiative.

Mr. Berg graduated first in his class from Macquarie University in Australia, with a B.Ec. in actuarial studies and finance. He also holds an M.B.A. from the Stanford Graduate School of Business, where he again graduated at the top of his class. Mr. Berg has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2008
  • Years at
    T. Rowe Price
    18
  • Years investment
    experience
    18
Samuel Ruiz

Samuel Ruiz is a portfolio specialist in the Equity Division. He is a vice president of T. Rowe Price Australia Ltd.

Sam’s investment experience began in 2008, and he has been with T. Rowe Price since 2020, beginning in the Equity Division working on the Global and Australia Equity Strategies. Prior to this, Sam was employed by Macquarie Investment Management in the area of strategy in the Equities Division.

Sam earned a bachelor of applied finance degree from the University of South Australia.

  • Years at
    T. Rowe Price
    1
  • Years investment
    experience
    13
Laurence Taylor

Laurence Taylor is a portfolio specialist in the Equity Division. He represents the firm's global equity strategies to institutional clients, consultants, and prospects. Laurence is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Laurence’s investment experience began in 1999, and he has been with T. Rowe Price since 2008, beginning in the Investment Specialist Group. Prior to this, Laurence was employed by AXA Rosenberg as a quantitative portfolio manager, with responsibility for global and European equity portfolios, and began his career at AonHewitt Associates in the UK investment practice. At AonHewitt, Laurence 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.

Laurence earned a B.A., with honors, from Greenwich University. He also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    21

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% 160 basis points 1.77%
Class I $2,500,000 $100,000 $0 0.00% 75 basis points 0.81%
Class Q $1,000 $100 $100 0.00% 75 basis points 0.92%
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.