Strategy

Emerging Markets Discovery Equity

Formerly Emerging Markets Value Equity Strategy

The Emerging Markets Discovery Equity Composite seeks long-term capital appreciation primarily through investment in emerging markets with attractive valuation levels relative to market/sector averages.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(3 Years)

-0.40%
4.43%

1YR Return (Net)
(View Total Returns)

Information Ratio
(3 Years)

-15.92%
-0.33

Inception Date 30-Sep-2015

Performance figures calculated in USD

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Ernest C.  Yeung
Ernest C. Yeung, Portfolio Manager

Ernest Yeung is a portfolio manager for the Emerging Markets Discovery Equity Strategy at T. Rowe Price. He was the co-portfolio manager for the International Small-Cap Equity Strategies from 2009 to 2014. Mr. Yeung is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited.

 

Strategy

Investment Approach

  • Aim to exploit the valuation anomalies that arise across the diverse and inefficient emerging market opportunity set.
  • Employ a contrarian approach using fundamental research, quantitative screen and industry contacts to identify companies that are out of favor, undervalued and that offer an attractive risk and reward profile.
  • Minimize the risk of value traps by focusing on companies offering yield or a book value anchor to the valuation, and where we have identified re-rating thesis that can lead to an expansion in valuation over time.
  • Risk management is an integral part of the portfolio construction process.

Portfolio Construction

  • Typically 50-80 stock portfolio
  • Expected 4-8% tracking error
  • Individual position typically 0.5% to 5%, position sized by prospective risks
  • Country ranges +/-10% absolute deviation from the benchmark
  • Sector ranges +/-15% absolute deviation from the benchmark
  • Reserves are normally less than 5%, max 10%

Holdings

Total
Holdings
60
Largest Holding Samsung Electronics 6.25% Was (31-Mar-2020) 6.20%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 27.29% View Top 10 Holdings Monthly data as of 30-Jun-2020

Top Purchase

Ping An Insurance (N)
1.81%
Was (31-Mar-2020) 0.00%

Top Sale

Ping An Insurance (E)
0.00%
Was (31-Mar-2020) 1.82%

Quarterly Data as of 30-Jun-2020

Sectors

Total
Sectors
11
Largest Sector Financials 20.18% Was (31-Mar-2020) 26.35%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: MSCI Emerging Markets Index

Top Contributor^

Consumer Staples
Net Contribution 0.94%
Sector
0.13%
Selection 0.81%

Top Detractor^

Health Care
Net Contribution -0.68%
Sector
-0.44%
Selection
-0.25%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Materials
By4.86%
Portfolio 11.72%
Benchmark 6.86%

Largest Underweight

Communication Services
By-4.91%
Portfolio 8.59%
Benchmark 13.50%

Monthly Data as of 30-Jun-2020

Regions

Total
Regions
4
Largest Region Pacific Ex Japan 67.57% Was (31-Mar-2020) 68.10%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2020

Benchmark: MSCI Emerging Markets Index

Largest Overweight

Europe
By5.91%
Portfolio 10.78%
Benchmark 4.87%

Largest Underweight

Pacific Ex Japan
By-11.64%
Portfolio 67.57%
Benchmark 79.21%

Monthly Data as of 30-Jun-2020

Countries

Total
Countries
16
Largest Country China 37.35% Was (31-Mar-2020) 42.49%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2020

Benchmark: MSCI Emerging Markets Index

Top Contributor^

Brazil
Net Contribution 0.75%
Country
0.24%
Selection 0.51%

Top Detractor^

South Korea
Net Contribution -1.05%
Country
-0.08%
Selection
-0.97%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Russia
By3.67%
Portfolio 6.90%
Benchmark 3.23%

Largest Underweight

Taiwan
By-5.84%
Portfolio 6.35%
Benchmark 12.20%

Monthly Data as of 30-Jun-2020

Team (As of 01-Oct-2020)

Ernest C.  Yeung

Ernest Yeung is a portfolio manager for the Emerging Markets Discovery Equity Strategy at T. Rowe Price. He was the co-portfolio manager for the International Small-Cap Equity Strategies from 2009 to 2014. Mr. Yeung is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Hong Kong Limited.

Mr. Yeung has 17 years of investment experience, 15 of which have been with T. Rowe Price. Prior to joining the firm in 2003, he was an analyst with HSBC Asset Management in London.

Mr. Yeung earned an M.A., with honours, in economics from Cambridge University. He also has earned the Chartered Financial Analyst designation and the Investment Management Certificate. 

  • Portfolio manager
    since
    2015
  • Years at
    T. Rowe Price
    17
  • Years investment
    experience
    19
Nick Beecroft, CFA

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 at
    T. Rowe Price
    15
  • Years investment
    experience
    19

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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

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

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