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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 Value Equity Fund

Targeting attractively valued global companies with prospects for improving earnings growth.

ISIN LU0859255472 Bloomberg TRPGVEI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

14.35%
$531.9m

1YR Return
(View Total Returns)

Manager Tenure

42.85%
9yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.80
4.55%

Inception Date 28-Nov-2012

Performance figures calculated in USD

31-Oct-2021 - Sebastien Mallet, Portfolio Manager, Global Value Equity Fund,
The global economic recovery continues to strengthen, potentially providing a more sustained positive backdrop for value investing. A more constructive stance in the market’s longer-term prognosis for inflation and interest rates should similarly be supportive. We continue to invest across the value spectrum in the best ideas from our global research platform.
Sebastien Mallet
Sebastien Mallet, Portfolio Manager

Sebastien Mallet is a portfolio manager in the Equity Division at T. Rowe Price, managing the Institutional Global Value Strategy. Mr. Mallet is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Click for Manager Outlook
 

Strategy

Manager's Outlook

As the global economic recovery continues to strengthen over the next 12-18 months, this could provide a more sustained positive backdrop for value investing. A more positive stance in the market's longer-term prognosis for inflation and interest rates should similarly be very supportive.

In the U.S., a record-setting stimulus was passed in order to boost the economic recovery. The vaccine rollout had a strong early start, allowing a relatively rapid return to normal. We find opportunities in well-run, quality companies. Within the financials space, U.S. banks look set to benefit from potentially higher rates, accelerating loan growth and higher rerating and non-life insurance companies with strong pricing ability provide compelling opportunities. In our view, the health care sector also provides ample strong ideas for the long-term.

In Europe, the vaccine rollout had initially progressed slightly more slowly, and economies had been more cautious in fully reopening. Fiscal stimulus measures have been rolled out and monetary policy remains accommodative. Plans are progressing for the Next Generation European Union (EU) Fund, which aims to support EU member countries in their recovery from the impacts of the pandemic. We continue to find opportunities in companies with more cyclical characteristics that stand to emerge on the other side of the pandemic in positions of strength.

We are positive on the near-term outlook for Japan given the recent acceleration in vaccine distribution, coupled with a significant fiscal stimulus response to aid the economic recovery. Crucially for investors in the market, corporate governance in Japan has been improving in recent years, with companies becoming more shareholder friendly. We continue to identify stocks with compelling valuations befitting of our value perspective.

Elsewhere in Asia, we continue to uncover ample compelling opportunities in China, despite market jitters over regulatory developments. The country saw an early but disrupted return to some normalization, although strict restrictions on international travel have remained in place. Our well-resourced research team is finding plenty of opportunities in good companies with compelling valuations.

We concentrate on the bottom-up view and our strategy continues to invest across the value spectrum in the best ideas from our global research platform. We aim to balance our exposure to economically sensitive and "deep value" names; also holding companies with strong free cash flow generation not yet fully appreciated by the market and with the scope to increase shareholder returns; as well as looking for pockets of controversy where fundamentally sound, well-run businesses face unwarranted investor scepticism. Given our robust research platform and collective experience, we are confident in our ability to find these unique opportunities before their potential for substantial prosperity becomes obvious to other investors.

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 widely diversified portfolio of undervalued stocks of companies anywhere in the world, including emerging markets.

Investment Approach

  • Diversified portfolio investing in companies located throughout the globe.
  • Emphasize attractively valued companies with prospects for improving earnings growth.
  • Employ rigorous and comprehensive research to identify and assess investment opportunities.
  • Allocate country and sector positions through consideration of:~~Attractiveness of individual investments^^~~Macroeconomic environment^^
  • 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 stock portfolio
  • Individual positions typically range from 0.30% to 3.00% — average position size of 1.00%
  • Country and sector weights generally range +/- 15% deviation from the benchmark
  • Maximum of 10% in emerging markets
  • Reserves range from 0% to 10%

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 % -1.04% -2.07% 11.08% 3.14% 3.01%
Indicative Benchmark % -0.48% 2.85% 16.27% 5.66% 3.80%
Excess Return % -0.56% -4.92% -5.19% -2.52% -0.79%

Inception Date 28-Nov-2012

Indicative Benchmark: MSCI World Index Net

Indicative Benchmark: MSCI World Index Net

Performance figures calculated in USD

Sectors

Total
Sectors
11
Largest Sector Financials 21.91% Was (30-Sep-2021) 20.83%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI World Index

Top Contributor^

Financials
Net Contribution 0.91%
Sector
0.16%
Selection 0.76%

Top Detractor^

Information Technology
Net Contribution -0.77%
Sector
-0.11%
Selection
-0.66%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Financials
By8.15%
Fund 21.91%
Indicative Benchmark 13.76%

Largest Underweight

Information Technology
By-10.99%
Fund 11.96%
Indicative Benchmark 22.96%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Sebastien Mallet, Portfolio Manager, Global Value Equity Fund,
Within the communication services sector, we initiated a position in a U.S.-based provider of high-speed internet access. The company has withstood many existential threats in recent years, including wireless substitution, video obsolescence, fibre competition, and regulatory risk. We believe the company’s best-in-class management team will continue to generate compounding equity returns through consistent earnings growth, prudent financial leverage, and share repurchases. In our view, the market is underestimating the durability of the company’s free cash flow growth.

Regions

Total
Regions
6
Largest Region North America 62.20% Was (30-Sep-2021) 61.96%
Other View complete Region Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI World Index

Top Contributor^

Developed Europe
Net Contribution 0.14%
Region
-0.04%
Selection 0.18%

Top Detractor^

United States
Net Contribution -0.45%
Region
-0.04%
Selection
-0.41%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Pacific Ex Japan
By3.69%
Fund 6.90%
Indicative Benchmark 3.22%

Largest Underweight

North America
By-9.37%
Fund 62.20%
Indicative Benchmark 71.57%

Monthly Data as of 31-Oct-2021

Countries

Total
Countries
19
Largest Country United States 59.24% Was (30-Sep-2021) 60.13%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI World Index

Largest Overweight

China
By3.52%
Fund 3.53%
Indicative Benchmark 0.00%

Largest Underweight

United States
By-9.05%
Fund 59.24%
Indicative Benchmark 68.28%

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 0.00% 75 basis points 0.85%

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