SICAV
Global Technology Equity Fund
To provide long-term capital growth by investing mainly in technology companies, and companies enabled by technology.
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 15-Jun-2015
Performance figures calculated in USD
Strategy
After a historic stretch of outperformance and strong absolute gains, leading technology stocks struggled somewhat in the first quarter. As the accelerated vaccine rollout boosted hopes for the reopening of the economy, investors favored cyclically sensitive companies and sectors. Investors' enthusiasm for the reopening of the economy also drove a sharp rise in longer-term interest rates, which placed a greater discount on future earnings.
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Meanwhile, the fundamentals of our core positions remained intact or even strengthened, with companies reporting strong fourth-quarter earnings and offering solid guidance. Over the short term, we recognize that these strong fundamentals may be offset by other factors. For example, many of our high-conviction names are poised to experience more difficult year-over-year earnings comparisons as we lap the pandemic highs. Moreover, this will probably happen as other parts of the economy are experiencing accelerated earnings growth-although we hope to capture some of this acceleration through our stock selection in payments and media.
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Nevertheless, our goal is to provide superior returns over a full market cycle, and we will look to seize opportunities to add to holdings where valuations have improved. We are also taking advantage of our global mandate and research platform to search for opportunities in both developed and emerging markets. While U.S. and Chinese internet titans are coming under increased regulatory scrutiny, governments in many countries are actively nurturing the development of homegrown competitors in online retail and media.
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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 technology development or utilization companies, with a focus on leading global technology companies. The companies may be anywhere in the world, including emerging markets.Investment Approach
- Seeks long-term growth by investing primarily in the common stocks of companies that generate the majority of revenues from the development, advancement, and use of technology.
- Stock selection is driven by rigorous research and analysis of companies, sectors, and industry trends.
- The portfolio invests primarily in the common stocks of technology companies or companies enabled by technology across the entire market capitalization spectrum. We seek companies which can successfully weather economic cycles and deliver sustainable growth through product development and innovation, at a reasonable valuation.
- While our primary emphasis is on a company’s prospects for future growth, valuation can also be an important consideration, particularly when valuation reaches extreme levels.
- The portfolio is less diversified than a non-focused fund and its substantial reward potential is coupled with significant risk. In addition, any foreign holdings could be affected by declining local currencies or adverse political or economic events.
- 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
- Typically 35-60 stock portfolio
- Non-U.S. companies typically make up 25-45% of the portfolio
- Portfolio consists of highest conviction ideas from a global perspective
- Diversification across sectors, countries/currencies, and end markets is a risk management tool
- Bottom-up stock picking is used to capitalize on rapid and extreme changes in technology trends
Performance (Class Q)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
Since Manager Inception Annualised |
|
|---|---|---|---|---|---|
| Fund % | 57.85% | 25.53% | 27.40% | 24.66% | 36.23% |
| Indicative Benchmark % | 48.16% | 25.42% | 27.36% | 22.71% | 35.62% |
| Excess Return % | 9.69% | 0.11% | 0.04% | 1.95% | 0.61% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 85.38% | 25.97% | 27.39% | 24.30% |
| Indicative Benchmark % | 71.72% | 25.73% | 26.30% | 22.54% |
| Excess Return % | 13.66% | 0.24% | 1.09% | 1.76% |
Recent Performance
| Month to DateData as of 15-Jun-2021 | Quarter to DateData as of 15-Jun-2021 | Year to DateData as of 15-Jun-2021 | 1 MonthData as of 31-May-2021 | 3 MonthsData as of 31-May-2021 | |
|---|---|---|---|---|---|
| Fund % | 3.85% | 9.53% | 7.76% | -2.90% | -0.38% |
| Indicative Benchmark % | 2.93% | 7.32% | 9.24% | -0.93% | 4.65% |
| Excess Return % | 0.92% | 2.21% | -1.48% | -1.97% | -5.03% |
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
52
Largest Top Contributor^
Sea
By 2.14%Largest Top Detractor^
Zoom Video Communications
By -3.13%Top Purchase
Zoom Video Communications
5.79%Top Sale
Workday
2.89%
Industry
Total
Industries
N/A
Regions
Total
Regions
4
Largest Overweight
Pacific Ex Japan
Largest Underweight
Japan
Countries
Total
Countries
11
Largest Overweight
Singapore
Largest Underweight
Japan
Team (As of 10-Jun-2021)
Alan Tu is the portfolio manager for the Global Technology Equity Strategy in the U.S. Equity Division. He also is chairman of its Investment Advisory Committee. Alan is a vice president and an Investment Advisory Committee member of the US Small-Cap Growth II Equity, Science & Technology Equity, US Large-Cap Core Growth Equity, Communications and Technology Equity, and US Tax-Efficient Multi-Cap Growth Equity Strategies. In addition, he is an Investment Advisory Committee member of the Global Growth Equity Strategy. Alan also is a vice president of T. Rowe Price Group, Inc.
Alan’s investment experience began in 2012, and he has been with T. Rowe Price since 2014, beginning in the U.S. Equity Division. After that, he was an investment analyst following software companies in the technology sector. He also served as a summer intern in 2013. Prior to T. Rowe Price, Alan was employed by Ananda Capital Management as an analyst, conducting analyses of small-cap Chinese and U.S. equities. He also was a valuation associate at Huron Consulting Group.
Alan earned a B.S., summa cum laude, in business administration from the University of California, Berkeley, and an M.B.A., with honors, from the University of Chicago, Booth School of Business. He also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Fund manager2019
since - Years at6
T. Rowe Price - Years investment6
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% | 175 basis points | 1.87% |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 85 basis points | 0.94% |
| Class Q | $1,000 | $100 | $100 | 0.00% | 85 basis points | 0.97% |
| 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.
Alan Tu is the portfolio manager for the Global Technology Equity Strategy in the U.S. Equity Division. He also is chairman of its Investment Advisory Committee. Alan is a vice president and an Investment Advisory Committee member of the US Small-Cap Growth II Equity, Science & Technology Equity, US Large-Cap Core Growth Equity, Communications and Technology Equity, and US Tax-Efficient Multi-Cap Growth Equity Strategies. In addition, he is an Investment Advisory Committee member of the Global Growth Equity Strategy. Alan also is a vice president of T. Rowe Price Group, Inc.