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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.

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European Equity Fund

Style agnostic, focus on quality to maintain a balanced portfolio.

ISIN LU0285831334 Bloomberg TRPEEQI:LX

3YR Return Annualised
(View Total Returns)

Total Assets


1YR Return
(View Total Returns)

Manager Tenure


Information Ratio
(5 Years)

Tracking Error
(5 Years)


Inception Date 26-Feb-2007

Performance figures calculated in EUR

31-Oct-2021 - Tobias Mueller, Portfolio Manager ,
Investor appetite for European assets has been rekindled this year by hopes of an economic recovery based on the speedy rollout of coronavirus vaccines. However, the notable progress we have seen so far may be less pronounced next year. The strong market move upward has pushed stock valuations to levels that are less attractive.
Tobias Mueller, CFA
Tobias Mueller, CFA, Portfolio Manager

Tobias Mueller is a regional portfolio manager for the European Select Strategy, effective October 2018, and for the Europe Equity and Europe ex-UK Equity Strategies, effective October 2020. He is a vice president of T. Rowe Price International Ltd.

Click for Manager Outlook


Manager's Outlook

Investor appetite for European assets has been rekindled this year by growing hopes of an economic recovery based on the speedy rollout of effective coronavirus vaccines. However, the notable progress we have seen so far may be less pronounced next year. The strong market move upward has pushed overall stock valuations to levels that are less attractive, especially when concerns about the fundamental economic outlook remain.

After a sharp rise in consumption fueled by pent-up demand as economies reopened there are signs that spending has begun to normalize. Companies have also largely rebuilt inventories depleted during lockdowns. There is evidence that the impact of a massive fiscal and monetary support for economies, while still necessary, has begun to wane as well. Fiscal support is being scaled back, and some G10 central banks have started to reduce quantitative easing.

Although there are signs that Europe is turning a corner after a decade of underperformance against the U.S., it is our view that the evolution of the COVID-19 disease and the efficacy and distribution of vaccines are still likely to have a significant influence on the recovery for at least another year. Also, the level of continuing policy support, the state of corporate and consumer confidence, and the degree of disruption caused by newly agreed post-Brexit trading arrangements are likely to determine the longer-term trajectory of activity.

The pandemic has served as a catalyst for change, accelerating trends that were emerging before the crisis, particularly the shift from the offline to the online world and the further heightening of awareness around sustainability.

In these uncertain times, it is important to be prepared for market dislocations triggered by events. Opportunities may emerge to buy companies at attractive valuations that have become stronger due to the coronavirus crisis and to sell those that are likely to be fundamentally weakened. Among these opportunities, in our view, are high-quality companies, which have lagged markedly since the market rotation sparked by the introduction of vaccines last year.

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 European companies.

Investment Approach

  • Fundamental research is critical to successfully identify and assess long-term investment opportunities. We look for companies with high returns on capital and capable of providing sustainable earnings across the market cycle.
  • Style agnostic, focus on quality. By avoiding style constraints, we can invest in quality companies and maintain a balanced portfolio through market cycles.
  • Disciplined approach to valuation. We aim to buy businesses at a clear discount to their intrinsic value.
  • Risk management is essential and is assisted by diversification, quantitative analysis, and automatic stabilizers built into our investment process.
  • 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 50-80 stocks
  • Individual position size up to 4.0% relative to the indicative benchmark
  • Sector ranges: typically +/- 10% relative to the indicative benchmark
  • Country ranges: typically +/- 10% relative to the indicative benchmark
  • Expected Tracking Error: typically 3.0% to 6.0%
  • Information Ratio objective: >0.5
  • Cash target range: fully invested, typically less than 5.0%
  • Turnover range: 40%-100%

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % 37.73% 14.91% 11.26% 11.38% 27.28%
Indicative Benchmark % 41.86% 11.55% 9.35% 9.42% 31.50%
Excess Return % -4.13% 3.36% 1.91% 1.96% -4.22%

Inception Date 26-Feb-2007

Manager Inception Date 01-Oct-2020

Indicative Benchmark: MSCI Europe Index Net

Data as of 31-Oct-2021

Performance figures calculated in EUR

  1 YR 3 YR
5 YR
10 YR
Fund % 24.06% 11.04% 9.67% 11.91%
Indicative Benchmark % 28.76% 7.89% 8.18% 9.75%
Excess Return % -4.70% 3.15% 1.49% 2.16%

Inception Date 26-Feb-2007

Indicative Benchmark: MSCI Europe Index Net

Data as of 30-Sep-2021

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 26-Nov-2021 Quarter to DateData as of 26-Nov-2021 Year to DateData as of 26-Nov-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % -0.73% 4.31% 20.87% 5.08% 2.62%
Indicative Benchmark % -2.25% 2.30% 18.88% 4.66% 3.51%
Excess Return % 1.52% 2.01% 1.99% 0.42% -0.89%

Inception Date 26-Feb-2007

Indicative Benchmark: MSCI Europe Index Net

Indicative Benchmark: MSCI Europe Index Net

Performance figures calculated in EUR

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.

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-Oct-2021 - Tobias Mueller, Portfolio Manager ,
The MSCI Europe Index climbed in October as solid company earnings reports helped to counter worries that elevated inflation, supply chain disruptions, the energy crisis, and tightening monetary policy may hobble an economic recovery. Large-cap stocks gained significantly more than mid- and small-cap names; growth comfortably beat value. In style terms, a rotation back to growth from value and defensive stocks benefited the portfolio. The main contributor to relative performance was stock picking in the industrials and business services, materials, and consumer discretionary sectors. A services provider to the global mining and infrastructure markets was our top performer in the industrials and business services sector. The shares climbed after the company posted corporate results that showed a third consecutive quarter of record orders, particularly of mining equipment. On the negative side, our choice of securities in health care was a modest drag. Not owning a Nordic pharmaceutical company that outperformed within the benchmark weighed most on returns. Our overweight holding in a maker of surgical devices also worked against us because the stock modestly underperformed as the coronavirus pandemic continued to curb its business.


Largest Holding ASML Holding 4.34% Was (30-Jun-2021) 3.94%
Other View Full Holdings Quarterly data as of  30-Sep-2021
Top 10 Holdings 24.94% View Top 10 Holdings Monthly data as of  31-Oct-2021

Largest Top Contributor^

ASML Holding
% of fund 4.29%

Largest Top Detractor^

% of fund 1.91%

^Absolute, percentages based on the difference between the total net assets of the two largest holdings of the fund.

Quarterly Data as of 30-Sep-2021

Top Purchase

Edenred (N)
Was (30-Jun-2021) 0%

Top Sale

Burberry (E)
Was (30-Jun-2021) 1.63%

Quarterly Data as of 30-Sep-2021

31-Dec-2018 - Dean Tenerelli, Portfolio Manager ,

Attractively Valued Stocks Emerged as Market Retrenched

Attractive opportunities have emerged in the equity market retrenchment at the end of 2018. These conditions suit our investment approach as they allow us to buy strong high-quality businesses and to diversify the portfolio. We increased our positions most in defensive sectors, such as utilities and real estate, and reduced them in the more cyclical sectors. However, the decline in cyclicals did not deter us from assessing high-quality opportunities with durable earnings that emerged there. On balance, we are tending to find more attractive opportunities in companies that have a more defensive profile or where we believe the market misunderstands the fundamental outlook and unfairly penalizes the company. At the same time, we continue to seek a relatively balanced portfolio in terms of exposures to possible economic scenarios, so that our relative performance is not dependent on a particular "macro" environment.

We altered our positioning by:

  • Raising our exposure to utilities, now our largest overweight, initiating in Iberdrola
  • Moving to an overweight in real estate, adding Great Portland Estates
  • Reducing our underweight in materials, investing in Koningklijke DSM
  • Slimming our overweight in industrials and business services

Raised Exposure to Utilities, Now Biggest Overweight

We increased our exposure to utilities, which is now our biggest overweight. We are overweight in the gas and multi-utilities industries, where we hold Italian names Italgas, a natural gas distribution company, and Hera, a public utility company. We also hold Red Electrica, a partly state-owned and public limited Spanish corporation that operates Spain's national electricity grid.

  • We initiated an investment in Iberdrola, a Spain-based integrated utility company, taking advantage of weakness in the share price, which is driven by regulatory uncertainty. The company is attractively valued, provides a steady income stream, and should benefit over the longer term from its position in the decarbonized renewables and electricity transmission markets. It also has a potential pipeline of new assets extending beyond 2025.

Moved to Overweight in Real Estate

As we seek to maintain a balanced portfolio to counter the impact of market volatility, we raised our exposure to the real estate sector by adding UK office developer Great Portland Estates (GPOR). Our other investment is in Aedas Homes, a Spanish house builder with a large land bank.

  • We believe GPOR, which operates in central London, is undervalued by the market. The management team has an excellent track record, the balance sheet is strong, and the values of its office assets are being underestimated. We believe there is a high probability that GPOR will return capital to shareholders after a successful disposals program.

Reduced Underweight in Materials

We increased our allocation to materials, a sector that we have not favored largely because we did not like the business models of many companies within it. However, when opportunities to own high-quality companies arise, such as in the current market retrenchment, we are happy to invest in them. To this end, we opened a position in Koningklijke DSM, a leading vitamin maker and performance materials business.

We currently own France-based Air Liquide, a large international industrial gas company; Corbion, a Dutch biobased ingredients company operating in the food and biochemical sectors; and Johnson Matthey, a specialty chemicals company that is also the world's biggest auto catalyst maker.

  • We took advantage of share price weakness to invest in DSM. We believe the business is becoming more stable and focused on growth, thanks to the acquisition-driven transformation program. In our view, improving organic growth, an effective cost and capital efficiency program, and the end of the headwind of falling vitamin E prices should drive a share price recovery and outperformance.

Reduced Overweight in Industrials and Business Services

We reduced our overweight industrials and business services amid signs that the European economy is losing momentum, a less favorable environment for this cyclical sector.

We continued to adjust the composition of our holdings, taking advantage of the market decline to sell companies that have underperformed and invest in high-quality businesses with strong industry positions and durable earnings that are now more realistically valued.

We sold out of CNH Industrial, one of the world's largest capital good companies; Trelleborg, a Sweden-based engineering company that develops polymer sealing solutions and wheel systems; and Wolters Kluwer, a Dutch print and digital publisher, after a strong run.

In terms of industry, our largest weight is still professional services companies. We own Bureau Veritas, a France-based international certification agency, and Experian, the leading global provider of credit information with operations in 17 countries, and we swapped Wolters Kluwer for RELX, the world's leading publisher of science journals and a provider of risk assessments on transactions with retail customers. Electrical equipment and aerospace and defense are also overweights. In the former, our biggest position is Schneider Electric, a global specialist in energy management and automation. In the latter, we also hold Dassault Aviation, another French company.

  • We started investing in RELX because we believe the market underestimates the quality and sustainability of growth at the risk business, which provides one of the leading online identity verification tools. It should benefit from the recent acquisition of the ThreatMetrix, one of the leading electronic devices databases. We also believe the risks around the science publishing business are overdone.
  • We sold our position in CNH Industrial because slowing economic momentum and increasing uncertainty in the agricultural sector about the possible impact of tariffs and trade disruptions could further curb sales growth in the main divisions. We exited Trelleborg as signs of weakening demand and emerging risks in the automotive agricultural and industrials segments could, in our view, weigh further on the share price after a period of underperformance.

Maintained Health Care Overweight; Exited Fresenius

We have retained our overweight allocation to the health care sector amid the market uncertainty, which favors defensive sectors. We sold Fresenius, a provider of health care-related products and services, and sister company Fresenius Medical Care after both companies issued a second surprise profit warning in the space of two months. Neither company now expects net income growth in 2019.

We hold sizable positions in pharmaceuticals, with overweights in two Swiss companies, Roche Holding and Novartis, a manufacturer of health care and nutritional products. We also hold Getinge, an off-benchmark Swedish medical technology company with product areas such as surgery, intensive care, infection control, and patient handling.


Largest Sector Industrials & Business Services 22.20% Was (30-Sep-2021) 20.78%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI Europe Index

Top Contributor^

Net Contribution 0.70%
Selection 0.65%

Top Detractor^

Consumer Discretionary
Net Contribution -0.62%


Quarterly Data as of 30-Sep-2021

Largest Overweight

Industrials & Business Services
Fund 22.20%
Indicative Benchmark 14.74%

Largest Underweight

Consumer Staples
Fund 4.08%
Indicative Benchmark 12.61%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Tobias Mueller, Portfolio Manager ,
We made few positioning adjustments this month for stock specific reasons. We are still finding attractive opportunities among high-quality names despite extended valuations. We adjusted our holdings in consumer discretionary, raising our allocation to the sector. We added a leading luxury goods company to the portfolio that we believe is on the brink of stronger sales growth, while we exited a maker and retailer of high-quality affordable jewellery after a strong run.


Largest Country United Kingdom 20.11% Was (30-Sep-2021) 21.81%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI Europe Index

Top Contributor^

Net Contribution 0.82%
Selection 0.76%

Top Detractor^

Net Contribution -0.61%


Quarterly Data as of 30-Sep-2021

Largest Overweight

Fund 7.46%
Indicative Benchmark 3.81%

Largest Underweight

Fund 11.80%
Indicative Benchmark 17.62%

Monthly Data as of 31-Oct-2021

30-Sep-2018 - Dean Tenerelli, Portfolio Manager ,
The new position in the aforesaid Belgian bank reduced our underweight allocation to the country. Otherwise, our country weights were little changed. Our country positioning is a function of our bottom-up stock picking.

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (EUR) Minimum Subsequent Investment (EUR) Minimum Redemption Amount (EUR) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A €1,000 €100 €100 5.00% 150 basis points 1.62%
Class I €2,500,000 €100,000 €0 0.00% 65 basis points 0.75%
Class Q €1,000 €100 €100 0.00% 65 basis points 0.82%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.