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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

Frontier Markets Equity Fund

Seeking to identify long-term market leaders in countries on the cusp of rapid development.

ISIN LU1079768849 Bloomberg TRPFMQG:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

13.74%
$105.6m

1YR Return
(View Total Returns)

Manager Tenure

39.55%
1yr

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.07
6.02%

Inception Date 24-Jun-2014

Performance figures calculated in GBP

31-Dec-2021 - Johannes Loefstrand, Portfolio Manager ,
The countries within the frontier universe have had wide-ranging experiences of the pandemic – in terms of both the health impact and the associated restrictions on movement, as well as government stimulus measures. We continue to focus on the long-term fundamentals of individual companies, their positioning, and the strength of their balance sheets to withstand these difficult times.
Johannes Loefstrand
Johannes Loefstrand, Portfolio Manager

Johannes Loefstrand is the Co-Portfolio Manager on the Frontier Markets Fund in the Equity Division of T. Rowe Price. He 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 frontier markets companies.

Investment Approach

  • Invest across the entire frontier investment universe, including countries outside the MSCI Frontier Markets Index.
  • Rigorous, risk-aware approach to identify quality growing companies trading at attractive valuations.
  • Employ fundamental analysis with a focus on returns, balance sheet structure, management team and corporate governance.
  • Disciplined approach to valuation. Verify relative valuation appeal versus peers and history.
  • Consider macroeconomic and political factors to temper bottom-up enthusiasm.
  • 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 60-80 stocks
  • Individual position sizes typically range from 0.5%-10%
  • Country Ranges:
    • Index countries: Unconstrained
    • Non-index countries: Constrained – 15% limit in any one country.
  • Reserves are typically less than 5%
  • Expected Turnover range: 20-40%

Regions

Total
Regions
5
Largest Region Pacific Ex Japan 48.59% Was (30-Nov-2021) 48.97%
Other View complete Region Diversification

Monthly Data as of 31-Dec-2021

Indicative Benchmark: MSCI Frontier Market 10/40 Index Net

Top Contributor^

EM EMEA
Net Contribution 1.79%
Region
0.38%
Selection 1.41%

Top Detractor

N/A

^Relative

Quarterly Data as of 31-Dec-2021

Largest Overweight

Pacific Ex Japan
By11.72%
Fund 48.59%
Indicative Benchmark 36.86%

Largest Underweight

Middle East & Africa
By-17.74%
Fund 16.87%
Indicative Benchmark 34.61%

Monthly Data as of 31-Dec-2021

Countries

Total
Countries
19
Largest Country Vietnam 30.88% Was (30-Nov-2021) 31.80%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2021

Indicative Benchmark: MSCI Frontier Market 10/40 Index Net

Top Contributor^

Egypt
Net Contribution 1.48%
Country
1.48%
Selection 0.00%

Top Detractor^

Romania
Net Contribution -0.22%
Country
0.07%
Selection
-0.29%

^Relative

Quarterly Data as of 31-Dec-2021

Largest Overweight

United Kingdom
By5.32%
Fund 5.32%
Indicative Benchmark 0.00%

Largest Underweight

Bahrain
By-6.82%
Fund 0.00%
Indicative Benchmark 6.82%

Monthly Data as of 31-Dec-2021

31-Dec-2021 - Johannes Loefstrand, Portfolio Manager ,
As of end of 2021, the portfolio’s main country relative overweight positions included Egypt, Pakistan, Bangladesh, and Kazakhstan, while the main underweights were in Bahrain, Nigeria and Morocco. We are positive on the long-term economic outlook for Bangladesh and recently initiated a position in a large generic pharmaceutical producer in this market. In our view, the company offers an attractive valuation, particularly versus its historic mean. Its recent salesforce restructuring should help to stem market share losses and support earnings growth. We believe the business’ strong net cash position also indicates that the payout ratio could increase substantially in coming years.