SICAV
Continental European Equity Fund
Style-agnostic, quality-driven European equity investment.
3YR Return Annualised
(View Total Returns)
Total Assets
(EUR)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 24-May-2013
Performance figures calculated in GBP
Strategy
As of July 1, Tobias Mueller, the portfolio manager for the European Select Equity Strategy, will become co-portfolio manager of the European equity strategies, taking over from Dean Tenerelli, the current portfolio manager, in October.
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Both managers believe that the market systematically underappreciates the potential for higher-quality companies to outperform over the medium to longer term. This can be especially pronounced when company and industry dynamics are likely to result in more durable performance in terms of future growth and returns than the market expects.
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Mr. Mueller also believes that companies should be clear beneficiaries of changes that occur across industries. He collaborates closely with the analyst team to establish where we have differentiated insights into this. This is especially critical at the current time with the coronavirus pandemic serving as a catalyst for change, accelerating trends that were emerging before the crisis.
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The outlook for markets and the economy remains highly uncertain, and it will be important to look for dislocations and opportunities. Market setbacks should present us with opportunities to buy companies at attractive valuations that are emerging stronger as a result of change triggered by the coronavirus crisis and to sell those that are likely to be fundamentally weakened by it.
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So, we will be looking for quality companies that will benefit from change, either as a result of being on the right side of change or from idiosyncratic change, where we have an insight on key long-term drivers for the stock.
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 Europe (excluding the UK).Investment Approach
- Fundamental research is critical to successfully identify and assess long-term investment opportunities. We look for companies with high returns on capital and capable of providing sustainable earnings across the market cycle.
- Style agnostic, focus on quality. By avoiding style constraints, we can invest in quality companies and maintain a balanced portfolio through market cycles.
- Disciplined approach to valuation. We aim to buy businesses at a clear discount to their intrinsic value.
- Risk management is essential and is assisted by diversification, quantitative analysis, and automatic stabilizers built in to our investment process.
Portfolio Construction
- Typically 40-70 stocks
- Individual position size up to 4.0% relative to the indicative benchmark
- Sector ranges: typically +/- 10% relative to the indicative benchmark
- Country ranges: typically +/- 10% relative to the indicative benchmark
- Expected Tracking Error: typically 3.0% to 6.0%
- Information Ratio objective: >0.5
- Cash target range: fully invested, typically less than 5.0%
- Turnover range: 40%-100%
Performance (Class Q | GBP)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 5.61% | 5.40% | 10.51% | 9.53% |
| Indicative Benchmark % | 0.33% | 1.80% | 8.49% | 7.04% |
| Excess Return % | 5.28% | 3.60% | 2.02% | 2.49% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 3.47% | 5.56% | 9.70% | 9.31% |
| Indicative Benchmark % | 0.04% | 3.02% | 8.02% | 7.09% |
| Excess Return % | 3.43% | 2.54% | 1.68% | 2.22% |
Recent Performance
| Month to DateData as of 18-Sep-2020 | Quarter to DateData as of 18-Sep-2020 | Year to DateData as of 18-Sep-2020 | 1 MonthData as of 31-Aug-2020 | 3 MonthsData as of 31-Aug-2020 | |
|---|---|---|---|---|---|
| Fund % | 3.51% | 6.65% | 7.50% | 2.87% | 7.01% |
| Indicative Benchmark % | 3.84% | 4.68% | 2.31% | 2.26% | 5.70% |
| Excess Return % | -0.33% | 1.97% | 5.19% | 0.61% | 1.31% |
Past performance is not a reliable indicator of future performance. Source for fund performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. 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. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures.
Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.
Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Effective 1 June 2019, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly.
Holdings
Total
Holdings
59
Largest Top Contributor^
Zalando
By 0.15%Largest Top Detractor^
Getinge
By -0.39%Top Purchase
Flughafen Zurich (N)
1.55%Top Sale
Getinge
1.97%
Sectors
Total
Sectors
11
Top Contributor^
Consumer Discretionary
Net Contribution 2.53%Top Detractor^
Health Care
Net Contribution -1.35%Largest Overweight
Consumer Discretionary
Largest Underweight
Consumer Staples
Countries
Total
Countries
13
Top Contributor^
Germany
Net Contribution 1.18%Top Detractor^
Netherlands
Net Contribution -0.50%Largest Overweight
Italy
Largest Underweight
France
Team (As of 05-Aug-2020)
Dean Tenerelli is portfolio manager in the Equity Division at T. Rowe Price. He manages the Europe Equity Strategy, a position he has held since October 2005, and is chairman of its Investment Advisory Committee. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.
Mr. Tenerelli has 28 years of investment experience, 19 of which have been at T. Rowe Price. He joined the firm in 2000 as an equity research analyst and was appointed co-manager of the firm's Global Equity Strategy in 2004. Prior to joining T. Rowe Price, Mr. Tenerelli served as a director for Credit Suisse Asset Management, where he was a senior telecommunications analyst. Prior to Credit Suisse Asset Management, Mr. Tenerelli worked as assistant portfolio manager at Artisan Partners (1995-2000). He began his investment career in 1993 at Banesto Bolsa in Madrid as an equity analyst following Spanish equities. Mr. Tenerelli later became an international equity analyst, focused on Europe, for Waddell and Reed in Kansas City, MO. In 1995, he moved to Artisan Partners as an assistant portfolio manager.
A graduate of Rutgers University with a B.A. in economics, Mr. Tenerelli earned an M.B.A. from Escuela Superior de Administración y Direccion de Empresa and an M.A. in international management from American Graduate School of International Management (Thunderbird).
- Fund manager2013
since - Years at20
T. Rowe Price - Years investment29
experience
Tobias Mueller is the portfolio manager for the European Select Strategy, effective October 2018. Previously, he covered the technology, medical technology and exchange sectors as a research analyst in the Equity Division. Mr. Mueller is a vice president of T. Rowe Price International Ltd.
Mr. Mueller has 13 years of investment experience, eight of which have been with T. Rowe Price. He completed an internship at the firm in 2010, and prior to joining T. Rowe Price in 2011, he worked at Lehman Brothers in the Principal Finance Group, London, where he focused on distressed fixed income assets.
Mr. Mueller has earned an M.B.A. from the University of Chicago Booth School of Business and is a graduate of business administration from the University of Applied Sciences in Munich, Germany. He also has earned the Chartered Financial Analyst designation.
- Fund manager2020
since - Years at9
T. Rowe Price - Years investment14
experience
Andrew Clifton is a portfolio specialist in the Equity Division at T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Mr. Clifton has over 30 years of investment experience, nine of which have been at T. Rowe Price. Prior to joining the firm in 2010, he was an executive director at UBS Global Asset Management. Prior to that, he was a vice president at Merrill Lynch.
Mr. Clifton earned a B.Sc. in economics from the London School of Economics and an M.Sc. in econometrics from the University of Southampton.
- Years at10
T. Rowe Price - Years investment31
experience
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 | UK Tax Reporting Status |
|---|---|---|---|---|---|---|---|
| Class I | €2,500,000 | €100,000 | €0 | 0.00% | 65 basis points | 0.75% | Yes |
| Class Q | €1,000 | €100 | €100 | 0.00% | 65 basis points | 0.82% | Yes |
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.
Dean Tenerelli is portfolio manager in the Equity Division at T. Rowe Price. He manages the Europe Equity Strategy, a position he has held since October 2005, and is chairman of its Investment Advisory Committee. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.