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Strategy

Frontier Markets Equity

The Frontier Markets Equity Composite seeks long-term capital appreciation through investing in companies located, or with primary operations, in Frontier markets (defined as those markets which are not in the MSCI AC World Index) which are experiencing sustainable, strong earnings growth and trading at reasonable valuations relative to market/sector averages.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

7.35%
4.88%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

-0.75%
0.77

Inception Date 30-Jun-2014

Performance figures calculated in USD

Other Literature

Oliver Bell
Oliver Bell, Portfolio Manager

Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.

 

Strategy

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.

Portfolio Construction

  • Number of holdings: 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
  • Sector Ranges: Unconstrained. Maximum 50% in Financials.
  • Reserves are typically less than 5%
  • Expected Turnover range: 20-40%

Holdings

Total
Holdings
74
Largest Holding National Bank of Kuwait 9.81% Was (31-Mar-2019) 9.23%
Other View Full Holdings Quarterly data as of 30-Jun-2019
Top 10 Holdings 41.27% View Top 10 Holdings Monthly data as of 30-Jun-2019

Top Purchase

Kuwait Finance House KSCP (N)
8.91%
Was (31-Mar-2019) 0.00%

Top Sale

Grupo Financiero Galicia
1.79%
Was (31-Mar-2019) 4.77%

Quarterly Data as of 30-Jun-2019

Sectors

Total
Sectors
11
Largest Sector Financials 54.46% Was (31-Mar-2019) 49.50%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Frontier Markets Index

Top Contributor^

Real Estate
Net Contribution 0.81%
Sector
0.12%
Selection 0.68%

Top Detractor^

Financials
Net Contribution -1.07%
Sector
0.08%
Selection
-1.15%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

Consumer Discretionary
By7.66%
Portfolio 7.82%
Benchmark 0.16%

Largest Underweight

Communication Services
By-9.58%
Portfolio 3.51%
Benchmark 13.09%

Monthly Data as of 30-Jun-2019

Regions

Total
Regions
5
Largest Region Middle East & Africa 54.75% Was (31-Mar-2019) 46.43%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Frontier Markets Index

Top Contributor^

Latin America
Net Contribution 0.90%
Region
1.34%
Selection -0.44%

Top Detractor^

EM EMEA
Net Contribution -0.74%
Region
-0.28%
Selection
-0.46%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

Pacific Ex Japan
By7.63%
Portfolio 28.77%
Benchmark 21.14%

Largest Underweight

Middle East & Africa
By-13.41%
Portfolio 54.75%
Benchmark 68.16%

Monthly Data as of 30-Jun-2019

Countries

Total
Countries
24
Largest Country Kuwait 31.80% Was (31-Mar-2019) 19.61%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2019

Benchmark: MSCI Frontier Markets Index

Top Contributor^

Argentina
Net Contribution 0.90%
Country
1.34%
Selection -0.44%

Top Detractor^

Kuwait
Net Contribution -0.71%
Country
-0.36%
Selection
-0.34%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

Argentina
By6.34%
Portfolio 6.34%
Benchmark 0.00%

Largest Underweight

Kenya
By-5.93%
Portfolio 0.00%
Benchmark 5.93%

Monthly Data as of 30-Jun-2019

Team (As of 07-Feb-2019)

Oliver Bell

Oliver Bell is a vice president of T. Rowe Price Group, Inc., associate head of Equity EMEA and the lead portfolio manager and chairman of the Investment Advisory Committee for the T. Rowe Price Middle East & Africa Equity Strategy and the Frontier Markets Equity Strategy. He is a member of the International Equity Steering Committee and a Board member of T. Rowe Price (Luxembourg) Management S.a.r.l.

Mr. Bell has 21 years of investment experience, seven of which have been with T. Rowe Price. Prior to joining the firm in 2011, Mr. Bell was head of emerging markets equities research at Pictet Asset Management (the institutional asset management arm of Pictet & Cie, the largest private bank in Switzerland), where his responsibilities included managing several funds, as well as a team of analysts. During his time at Pictet, Mr. Bell was directly responsible for managing investments in the emerging Europe, Middle East and Africa region as part of the global emerging markets and the standalone Middle East and Africa portfolios. Mr. Bell also managed the Global Emerging Markets High Dividend Yield Equity Strategy.

Mr. Bell has earned a bachelor of science degree in chemistry from Exeter University and also has earned the Investment Management Certificate.

  • Portfolio manager
    since
    2014
  • Years at
    T. Rowe Price
    7
  • Years investment
    experience
    21
Leigh Innes

S. Leigh Innes is a portfolio specialist in the Equity Division at T. Rowe Price, representing the firm's emerging market strategies to institutional clients, consultants and prospects. Ms. Innes is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Ms. Innes has 20 years of investment experience, 15 of which have been at T. Rowe Price. She started at T. Rowe Price in 2002 as a research analyst for emerging market portfolios, and in 2007, she assumed portfolio management responsibility for the Emerging Europe Equity Strategy from Chris Alderson. In 2015, she assumed the role of portfolio specialist. Ms. Innes began her investment career at Merrill Lynch where she was a fund manager/analyst covering Latin America.

Ms. Innes earned an M.A. (with honours) in mathematics from Oxford University. She also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    17
  • Years investment
    experience
    22
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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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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