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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

Emerging Markets Equity Fund

Seeking to capture compelling growth opportunities in dynamic emerging markets.

ISIN LU0133084979 Bloomberg TRPGEMI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

12.23%
$2.1b

1YR Return
(View Total Returns)

Manager Tenure

10.71%
12yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.05
3.28%

Inception Date 02-Dec-2003

Performance figures calculated in USD

31-Oct-2021 - Gonzalo Pángaro, Portfolio Manager ,
Markets have traded around short-term sentiment and speculation over the past 18 months, a considerable headwind for our “growth at a reasonable price” and “quality” style. We expect that a normalisation of market conditions post the pandemic, and a return to investors focusing on fundamentals, may provide a more favourable environment for our approach.
Gonzalo Pángaro
Gonzalo Pángaro, Co-Portfolio Manager

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.

 

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.
  • 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 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%

Recent Performance

  Month to DateData as of 03-Dec-2021 Quarter to DateData as of 03-Dec-2021 Year to DateData as of 03-Dec-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % -0.33% -5.20% -11.50% 0.59% -1.51%
Indicative Benchmark % 1.07% -2.09% -3.31% 0.99% -0.49%
Excess Return % -1.40% -3.11% -8.19% -0.40% -1.02%

Inception Date 02-Dec-2003

Indicative Benchmark: MSCI Emerging Markets Index Net

Indicative Benchmark: MSCI Emerging Markets Index Net

Performance figures calculated in USD

Sectors

Total
Sectors
9
Largest Sector Financials 23.45% Was (30-Sep-2021) 23.03%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI Emerging Markets Index

Top Contributor^

Information Technology
Net Contribution 0.28%
Sector
0.08%
Selection 0.20%

Top Detractor^

Energy
Net Contribution -0.87%
Sector
-0.87%
Selection
0.00%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Consumer Staples
By8.75%
Fund 14.57%
Indicative Benchmark 5.82%

Largest Underweight

Materials
By-8.53%
Fund 0.00%
Indicative Benchmark 8.53%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Gonzalo Pángaro, Portfolio Manager ,
Broadly speaking, we do not see many firms in the energy sector with the growth characteristics that we favour and retain our longstanding underweight. In our view, there are long-term structural headwinds for oil prices from factors such as decarbonisation. We also believe there is scope for productivity improvements in the oil industry—an important influence on the commodity’s price, in our view—to continue for some time. The portfolio is also underweight to the health care space. However, we have identified some stock-specific opportunities; we hold a couple of Chinese pharmaceutical names and a Brazilian hospital company.

Countries

Total
Countries
24
Largest Country China 32.79% Was (30-Sep-2021) 31.67%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI Emerging Markets Index

Top Contributor^

Argentina
Net Contribution 0.32%
Country
0.49%
Selection -0.16%

Top Detractor^

India
Net Contribution -0.86%
Country
-0.62%
Selection
-0.25%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Hong Kong
By4.58%
Fund 4.58%
Indicative Benchmark 0.00%

Largest Underweight

India
By-3.09%
Fund 8.88%
Indicative Benchmark 11.97%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Gonzalo Pángaro, Portfolio Manager ,
We are overweight to the relatively small Argentine market for stock-specific reasons. Our main holding here is in an e-commerce and digital payments platform. We expect the company to become a leading digital provider of financial services in an under-banked region and also think it is well positioned to take advantage of e-commerce growth in Latin America. We also hold an IT services company that we believe is well placed to compound earnings at a relatively high rate for several years.

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.