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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

Japanese Equity Fund

Seeking to uncover the best investment opportunities across the Japanese equity spectrum.

ISIN LU0230817925 Bloomberg TRPJAEI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(EUR)

12.90%
€2.1b

1YR Return
(View Total Returns)

Manager Tenure

10.09%
7yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.61
6.13%

Inception Date 16-Dec-2005

Performance figures calculated in EUR

31-Oct-2021 - Archibald Ciganer, Portfolio Manager,
Our positive outlook for Japanese equities is predicated on a normalization in social and economic conditions following the coronavirus pandemic and expectations of policy continuity under new political leadership. The high degree to which corporate profits are levered to the global economic recovery adds to our optimism.
Archibald Ciganer
Archibald Ciganer, Portfolio Manager

Archibald Ciganer is the portfolio manager of the Japan Equity Strategy in the International Equity Division. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Japan, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

Japan's accelerating COVID-19 vaccination program is likely to continue lending support to the stock market, while added stimulus measures under new political leadership could provide a further tailwind. Improved governance is also contributing to our positive long-term outlook.

We believe the anticipated global economic recovery will continue to build and broaden through 2021 and beyond and that we will slowly return to some semblance of normality. Given Japan is one of the most cyclical and open markets, highly levered to the health of the world economy, we believe it will be a major beneficiary of the prospective global recovery. Certainly, the rapid economic recovery evident in China, Japan's major trading partner, represents a significant tailwind, in our view.

As we enter the next stage of the equity cycle, amid a broadening domestic and global economic recovery, we continue to believe that Japan is a compelling active management case, particularly as the market is under-owned, continues to undergo governance reform and improvement, and displays positive change dynamics.

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 stocks of companies in Japan.

Investment Approach

  • Macroeconomic factors have a role, but our approach is primarily bottom-up and research driven.
  • Growth opportunities are found across the capitalization spectrum and across market sectors.
  • Risk is managed at stock, sector, and cap-range levels.
  • Portfolio rebalancing is an effective risk management tool.
  • 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 80-110 stock portfolio
  • Minimum individual position size is 0.40%
  • Individual position sizes can range +/- 2.00% relative to the benchmark
  • Sector weightings vary from +/- 10% of the benchmark
  • Tracking error expected to range between 300 and 600 bps
  • Target reserves less than 5%

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 % 0.50% -4.89% -2.08% -3.48% 4.00%
Indicative Benchmark % 1.60% -2.32% 9.11% -3.39% 4.55%
Excess Return % -1.10% -2.57% -11.19% -0.09% -0.55%

Inception Date 16-Dec-2005

Indicative Benchmark: TOPIX Index Net

Indicative Benchmark: TOPIX Index Net

Performance figures calculated in EUR

Sectors

Total
Sectors
12
Largest Sector It & Services & Others 39.18% Was (30-Sep-2021) 38.12%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: TOPIX Index

Top Contributor^

Industrials & Business Services
Net Contribution 0.98%
Sector
0.07%
Selection 0.90%

Top Detractor^

Communication Services
Net Contribution -0.66%
Sector
-0.30%
Selection
-0.37%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

It & Services & Others
By22.00%
Fund 39.18%
Indicative Benchmark 17.19%

Largest Underweight

Electric Appliances And Precision Instruments
By-5.88%
Fund 15.70%
Indicative Benchmark 21.59%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Archibald Ciganer, Portfolio Manager,
Within IT and services, we added to our holding in a leading player in a relatively new growth industry in Japan—services for children and adults with disabilities. Reimbursement schedules are full of incentives that reward high-quality operators achieving measurable results, and this is leading to consolidation towards the few larger private companies in the sector. The company has a vision of becoming a comprehensive platform for disability services generally, and it is rapidly growing software-as-a-service and matching solutions for welfare facilities, public schools, and companies looking to hire the disabled.

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% 160 basis points 1.71%
Class I €2,500,000 €100,000 €0 0.00% 75 basis points 0.81%
Class Q €1,000 €100 €100 0.00% 75 basis points 0.86%

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