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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

Global Focused Growth Equity Fund

Concentrating high conviction positions in leading global investment prospects.

ISIN LU0143563046 Bloomberg TRPGEQI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

29.08%
$5.6b

1YR Return
(View Total Returns)

Manager Tenure

35.46%
9yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

1.35
6.76%

Inception Date 12-Jan-2006

Performance figures calculated in USD

31-Oct-2021 - David J. Eiswert, Portfolio Manager,
As global economies emerge from the coronavirus pandemic, it is important to appreciate the long, winding road “back to the future”—a new normal defined by fundamental and behavioural differences. As we move through this extraordinary period, we continue to focus on the difficult choices required during these complex times.
David J. Eiswert, CFA
David J. Eiswert, CFA, Lead Portfolio Manager

David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

Equity markets were volatile during the quarter as concerns around the new delta variant of COVID-19 contended with optimism surrounding accelerated global vaccine distribution. As global economies begin to heal and emerge from the coronavirus pandemic, it is important to appreciate the long, winding road "back to the future"?a new normal defined by fundamental and behavioral differences. Within equity markets, much debate centers on the future path of interest rates, inflation, and economic growth. Asset prices may be high, but they are high for a reason: Interest rates remain low, government stimulus has been unprecedented, and there is no credit cycle to act as a disruptor. Still, we do see pockets of exuberance within the market and are using prudence and our active approach to avoid significantly mispriced risk.

We are also witnessing "absurd" inflation in many areas of the economy, as well as general inflation in the labor market, distortions we believe are driven by the pandemic. We expect some of the recent extreme inflation to wane as the economy emerges from the pandemic but acknowledge that economic growth on a year-on-year basis is not likely to fully normalize until the latter part of next year. While the U.S. Federal Reserve contemplates its next moves, which likely means a less accommodative policy going forward, we expect interest rates to remain historically low. In our view, an environment with moderate inflation and moderately higher interest rates could be a positive catalyst for equities. We are comfortable with our positioning and continue to search for solid growth assets that are out of favor currently but where we see potentially higher growth in 2022 and beyond?like some travel-related names and select financials. We also believe it is worth exploring China's regulatory changes and the opportunities that it may create?albeit with prudence.�

As we move through this extraordinary period, we continue to focus our time on the hard and difficult choices required during these complex times. Our aim is to own stocks where we have an insight about improving economic returns while avoiding stocks that imply unnecessary risks and should be avoided. This is our role as fundamental bottom-up stock pickers. Ultimately, we favor companies with idiosyncratic drivers that are on the right side of change. It remains critical as we move "back to the future" to distinguish between the "chasm crossers"?those companies that will succeed and thrive?and the "imposters"?those companies that experienced temporary benefits that will likely not prove durable. This approach often requires imagination and a carefully contrarian mindset, but experience has shown that making difficult decisions by adhering to our investment framework with the support of our global research platform ultimately can add value for our clients.

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 that have the potential for above average and sustainable rates of earnings growth. The companies may be anywhere in the world, including emerging markets.

Investment Approach

  • Single decision maker provides clear accountability.
  • Identify “best ideas” by assessing companies in a global sector context, using bottom-up approach to create focused, high- conviction portfolio.
  • Global research platform uses fundamental analysis to identify companies with superior and sustainable growth prospects, and improving fundamentals.
  • Macroeconomic and local market factors are integrated in stock selection decisions.
  • Valuation appeal is measured against local market and broad sector opportunity set.
  • Broad range of stocks across all capitalizations, incorporating developed and emerging markets.
  • 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 positions: Typically 0.5%-5.0%
  • Emerging markets exposure: +/-15% of benchmark
  • Broad sector ranges: +/-15% of benchmark
  • Country ranges: +/-10% of benchmark (U.S.A. is +/-20%)
  • Currency hedging: Currency views incorporated in stock selection
  • Cash target range: Typically less than 5%, Maximum 10%
  • Expected tracking error: 400 to 800 basis points

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 % -3.39% -2.86% 6.05% 3.12% 2.32%
Indicative Benchmark % -0.30% 2.27% 13.64% 5.10% 3.28%
Excess Return % -3.09% -5.13% -7.59% -1.98% -0.96%

Inception Date 12-Jan-2006

Indicative Benchmark: MSCI All Country World Index Net

Indicative Benchmark: MSCI All Country World Index Net

Performance figures calculated in USD

Sectors

Total
Sectors
9
Largest Sector Consumer Discretionary 17.60% Was (30-Sep-2021) 17.16%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI All Country World Index

Top Contributor^

Industrials & Business Services
Net Contribution 0.86%
Sector
-0.05%
Selection 0.90%

Top Detractor^

Information Technology
Net Contribution -0.47%
Sector
-0.06%
Selection
-0.41%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Communication Services
By6.28%
Fund 15.21%
Indicative Benchmark 8.93%

Largest Underweight

Information Technology
By-6.45%
Fund 16.23%
Indicative Benchmark 22.69%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - David J. Eiswert, Portfolio Manager,
We are overweight the communication services sector, reflecting our belief that the lasting behavioural effects from the coronavirus pandemic could accelerate the long-term trend of streaming video services taking share from traditional television and exacerbate the ongoing shift toward digital advertising. We remain focused on highly innovative, secular growers within the entertainment and internet services spaces that we believe are on the right side of change and benefitting from the accelerating popularity of digital media.

Countries

Total
Countries
16
Largest Country United States 56.51% Was (30-Sep-2021) 56.01%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI All Country World Index

Largest Overweight

United Kingdom
By6.30%
Fund 9.95%
Indicative Benchmark 3.64%

Largest Underweight

United States
By-3.92%
Fund 56.51%
Indicative Benchmark 60.43%

Monthly Data as of 31-Oct-2021

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% 160 basis points 1.77%
Class I $2,500,000 $100,000 $0 N/A 75 basis points 0.85%
Class Q $1,000 $100 $100 N/A 75 basis points 0.92%

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