Skip to main content

Download

Audience for the document: Share Class: Language of the document:

Download

Share Class: Language of the document:

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

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

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest

Please enter valid search characters

January 2021 / MARKET OUTLOOK

Global Asset Allocation: January Insights

Discover the latest global market themes

MARKET INSIGHTS

As of 31 December 2020

Chasing Unicorns

Unprecedented monetary and fiscal stimulus and late‑year positive news on vaccines fuelled a relentless rally in risk assets in 2020, with the S&P 500 Index returning over 16%, and pushing valuations to levels not seen since the tech bubble. Market momentum has been further fuelled by an astounding number of companies going public, with initial public offering (IPO) activity at its highest level in two decades. Many of these unicorn companies—those going public with multi-billion-dollar valuations—such as Airbnb and DoorDash, both of which are still losing money, saw their prices soar more than 80% in the week they launched. Investors similarly have been hot to jump into special purpose acquisition companies (SPACs), or ‘blank cheque’ companies, that pool together investors’ money through an IPO before deciding what to invest in. Cryptocurrencies have also garnered significant interest this year, further fuelling the speculative enthusiasm. Going into 2021, investors don’t seem fazed that these signs of excess could be foreshadowing a replay of 2000, and companies seeking to go public don’t appear to be slowing down anytime soon.

Inflation, for real?

After more than a decade of Fed policy geared towards stimulating growth and higher inflation, could the recovery from the coronavirus finally be the catalyst for higher prices? The market seems to be betting that it could, with break‑even rates—the yield difference between nominal and inflation-linked Treasuries—nearing the 2% level. With high expectations for unleashed pent-up demand on the way, supply will have to play catch-up in the second half of 2021, likely pushing inflation higher. One key component of the consumer price index—shelter prices—has already received a boost as the coronavirus has unexpectedly fuelled a housing boom. Back in August, the Fed unveiled a new approach, allowing inflation to ‘average’ 2% over time, with an emphasis on sustained growth. Given the new policy, inflation expectations may be allowed to move higher into 2021 with markets less fearful of the Fed. With the Fed remaining anchored and with higher inflation, real yields could be pushed even lower.

Suga High

Investors have newfound interest in Japan as evident in strong flows, the Nikkei 225 Index reaching a 30-year high and optimism surrounding the election of new Prime Minister Yoshihide Suga last September. Suga, while dealing with the impacts of the coronavirus, has promised to remain focused on his predecessor’s structural reform policies—known as ‘Abenomics’—that have driven shareholder‑friendly initiatives, including an acceleration in share buybacks. He additionally created a new digital agency focused on the need to improve productivity, a problem that still plagues the government and many companies, even though Japan is known as a powerhouse of technical innovation in areas such as semiconductors and robotics. While cheering these structural reforms, investors also see the opportunity for Japan’s heavily export-oriented sectors to benefit as global economies reemerge from lockdowns this year. With these cyclical and secular forces helping to drive growth, there may be more to cheer about in Japan this summer than just the Olympic games.

 

Nikkei, Bloomberg Finance L.P. and T. Rowe Price analysis using data from FactSet Research Systems Inc

Past performance is not a reliable indicator of future performance.

Sources: Nikkei, Bloomberg Finance L.P. and T. Rowe Price analysis using data from FactSet Research Systems Inc. All rights reserved. See Additional Disclosures.

For a region-by-region overview, download the PDF.

 

IMPORTANT INFORMATION

This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources’ accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. It is not intended for distribution to retail investors in any jurisdiction.

Previous Article

January 2021 / INVESTMENT INSIGHTS

End of the Fed’s Credit Support Facilities Is Positive
Next Article

January 2021 / MARKET OUTLOOK

Gains Still to Be Found in Global Equities
202101‑1487018

December 2020 / ASSET ALLOCATION VIEWPOINT

Global Asset Allocation: The View From The...

Global Asset Allocation: The View From The UK

Global Asset Allocation: The View From The...

Discover the latest global market themes

By Yoram Lustig

Yoram Lustig Head of Multi-Asset Solutions, EMEA

November 2020 / INVESTMENT INSIGHTS

Global Asset Allocation: November Insights

Global Asset Allocation: November Insights

Global Asset Allocation: November Insights

Discover the latest global market themes

By Yoram Lustig

Yoram Lustig Head of Multi-Asset Solutions, EMEA

You are now leaving the T. Rowe Price website

T. Rowe Price is not responsible for the content of third party websites, including any performance data contained within them. Past performance cannot guarantee future results.