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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

Asian Opportunities Equity Fund

A concentrated portfolio of high-quality Asian companies.

ISIN LU1044871900 Bloomberg TRAOAEI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

18.86%
$364.9m

1YR Return
(View Total Returns)

Manager Tenure

13.88%
7yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.74
4.49%

Inception Date 21-May-2014

Performance figures calculated in USD

31-Oct-2021 - Eric C. Moffett, Portfolio Manager ,
We believe that domestic demand in Asia ex-Japan is holding up relatively well despite the uneven recovery. Amid regulatory risks in China, we focus on the long-term fundamentals of individual companies and aim to identify names that are well positioned to withstand increased government scrutiny or that may benefit from opportunities created by policy changes.
Eric C. Moffett
Eric C. Moffett, Portfolio Manager

Eric Moffett is a portfolio manager in the International Equity Division. He manages the Asia Opportunities Equity Strategy and is chairman of the strategy's Investment Advisory Committee. Eric also is a co-portfolio manager of the Emerging Markets Equity Strategy. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Singapore Private Limited.

Click for Manager Outlook
 

Strategy

Manager's Outlook

We remain constructive on the medium- to long-term outlook for Asia ex-Japan equities.� Most Asian economies are on a steady path to more normalized economic activity and north Asia has broadly picked up the pace compared with the rest of the region. In addition, demand for goods from these north Asian economies is driven by the West where economic activity is gaining traction.

We believe that domestic demand in Asia ex-Japan is holding up relatively well despite the uneven recovery of its economies. While the focus near-term has been on the regulatory clampdown in China, we believe we are nearing the end of this regulatory cycle. In our view, the government has no intention of derailing the future growth of various sectors but is seeking to bring more balance to the ecosystem and sustain social stability. The liquidity crisis at Evergrande is unlikely to have a material impact on the financial system and we do not expect any meaningful contagion. We believe that this turmoil may prompt further consolidation in the real estate sector, benefitting better run and financially stronger companies.�

We recognize that China undergoes cycles of policy changes and that the difficulty lies in predicting the timing and the mechanism by which the authorities will enforce policy shifts. However, these regulations fall within the broad policy framework that China has communicated over the years. Chinese President Xi Jinping's avowed social goals focus on three pillars, namely anticorruption, environmental protection, and social equality.

In terms of valuation, while there are pockets of excessive optimism in some sectors, we believe that the valuations of high-quality growth and cyclical growth businesses in Asia ex-Japan remain in line with historic levels. The recent regulatory actions in China have also substantially dragged down certain sectors, we believe this situation may yield opportunities for investors.

Apart from the regulatory policy shifts in China, other key risks for the region include the possibility of a new coronavirus variant, and the recurrence of geopolitical tensions, particularly between the U.S. and China.

We continue to build our portfolio from the bottom up and while we take the macroeconomic environment into account, our philosophy and process remain squarely centered on fundamental stock selection. We are confident that we can continue to identify the best quality businesses in the region, supported by our Asia-based equity analysts and a global fundamental research platform along with our disciplined investment approach.

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 of companies in Asia.

Investment Approach

  • Seeking long term capital appreciation to come from owning high quality businesses that will reliably compound earnings/ cash flow generation over time.
  • In Asia, this type of company tends to exhibit three key characteristics:
    • Established companies with leading market positions.
    • Good management teams who care about shareholder returns.
    • Returns-focused capital allocation and prudent balance sheet management.
  • Fundamental research is critical in helping us to identify these characteristics and exploit market inefficiencies:
    • Focus on the long term. Be patient.
    • Gain a better understanding of the durability of a company’s prospects than the market.
    • More accurately assess a company’s intrinsic value than other market participants.
  • 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 40-70 stock portfolio
  • Individual positions typically range from 0.50% to 6.00%.
  • Country and sector weightings a residual of stock selection.
  • Cash position typically 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 % -1.01% -1.24% -5.36% 3.54% 0.09%
Indicative Benchmark % 0.90% -1.68% -5.15% 1.36% -0.65%
Excess Return % -1.91% 0.44% -0.21% 2.18% 0.74%

Inception Date 21-May-2014

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Indicative Benchmark: MSCI All Country Asia ex Japan Index Net

Performance figures calculated in USD

Sectors

Total
Sectors
10
Largest Sector Consumer Discretionary 23.59% Was (30-Sep-2021) 24.78%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI All Country Asia ex Japan Index

Top Contributor^

Information Technology
Net Contribution 0.76%
Sector
-0.12%
Selection 0.88%

Top Detractor^

Consumer Staples
Net Contribution -0.81%
Sector
0.07%
Selection
-0.88%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Consumer Discretionary
By6.69%
Fund 23.59%
Indicative Benchmark 16.89%

Largest Underweight

Information Technology
By-4.70%
Fund 18.65%
Indicative Benchmark 23.35%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Eric C. Moffett, Portfolio Manager ,
Consumer discretionary remains our biggest sector position in absolute and relative terms. Our preference in this sector is for cash-generative fast-food restaurants, e-commerce companies that include dominant market players as well as their rivals with new business models, and an appliance maker that we think is likely to benefit from resumption of earnings growth after the pandemic. We also own auto dealers we see as well placed to gain market share due to increasing aftermarket growth that, in our view, are less affected by the Chinese government’s “common prosperity” campaign.

Countries

Total
Countries
10
Largest Country China 38.08% Was (30-Sep-2021) 38.42%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: MSCI All Country Asia ex Japan Index

Top Contributor^

Netherlands
Net Contribution 0.71%
Country
0.71%
Selection 0.00%

Top Detractor^

India
Net Contribution -0.98%
Country
-0.56%
Selection
-0.42%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Philippines
By4.55%
Fund 5.30%
Indicative Benchmark 0.75%

Largest Underweight

South Korea
By-5.50%
Fund 8.45%
Indicative Benchmark 13.94%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Eric C. Moffett, Portfolio Manager ,
We increased our allocation to India, where we have a sizeable absolute position, taking advantage of the market’s weakness to add to financial stocks with quality franchises that we own here. In October, we invested in one of the country’s largest banks which has grown steadily with stable asset quality through past cycles. As a result, we turned less underweight in India. We also have existing positions in select Indian information technology services and consumer-related names that we believe are well positioned for post-pandemic growth.

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 UK Tax Reporting Status
Class A $1,000 $100 $100 5.00% 160 basis points 1.77% No
Class I $2,500,000 $100,000 $0 0.00% 75 basis points 0.85% No
Class Q $1,000 $100 $100 0.00% 75 basis points 0.92% No

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

T. Rowe Price Funds SICAV and its sub-funds are domiciled in Luxembourg and therefore considered offshore funds for UK tax purposes. Selected share classes of T. Rowe Price Funds SICAV have been designated “Reporting Funds” by HM Revenue & Customs (HMRC) under the guidelines of the UK Offshore Funds Regulation. These share classes report all relevant tax information to HMRC on an annual basis. Details on the information reported are outlined in the SICAV Shareholder Tax Reporting document that is available in the Fund Range Docs drop-down. Investors in “Reporting Fund” share classes who are considered United Kingdom residents for tax purposes will have any accrued gains treated as a capital gain rather than income upon sale or other disposal of their shares.