SICAV
Global Focused Growth Equity Fund
Concentrating high conviction positions in leading global investment prospects.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 31-Jan-2014
Performance figures calculated in GBP
Strategy
As we have previously stated, the world continues to pass through an ongoing cycle of Crisis, Response, Improvement, and Complacency (CRIC). Considering the significance of the challenges at hand, especially surrounding trade, we have been somewhat surprised by the lack of a meaningful response from world leaders, which has led to more uncertainty and volatility in equity markets. On the macro front, we have overhangs with trade, fading U.S. stimulus, and a slowdown in China that is also pulling down Europe. We are heading toward a macroeconomic crossroads and are looking to see how the world is going to respond.
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Even though trade rhetoric has somewhat abated on both sides, a near-term substantive deal appears remote. It also seems likely that growth and inflation will continue to trend downward until policymakers respond. While the U.S. Federal Reserve cut rates for the first time in more than a decade in July and followed up with another cut in September, mixed messages have weakened its credibility. Similarly, we are surprised that the Chinese government has not yet reacted in any significant manner to stimulate its economy given the onslaught of weak economic data coming out of the country. The lack of response to these overhangs has pushed us toward this low-growth world that is characterized by an oscillation between euphoria and despair.
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From our perspective, the most powerful responses would be a U.S.-China trade deal and meaningful Chinese stimulus, which we think are realistically possible over the next six to nine months. We have been positioning the portfolio to participate in such a scenario and have faded some of our more defensive names while adding to stocks that are gaining market share in their respective end markets and are cyclically depressed which we view as offensive in the current market environment. We have added to several tech industrial names that participate in automation and robotics and that are trading at increasingly attractive valuations. Our exposure in semiconductors reflects many secular growth companies, albeit with degrees of cyclical characteristics and earnings drivers that the market is discounting. We have been defending our Chinese internet names in prudent weights and they should perform well if some of the clouds around China lift, even if only partly. While our underweight to the U.S. is largely a result of our stock picking, we think the U.S. is likely to lag during the next upcycle. We are also going to start lapping the initial disruptions that trade caused a year ago and, if economic activity does not materially deteriorate, we should see some level of stabilization in global economic data.
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Overall, we remain constructive on global equities and continue seeking to take advantage of market volatility to move around to better ideas. With a longer-term investment horizon and willingness to be contrarian, we believe it is critical to look beyond today's near-term challenges in order to identify tomorrow's opportunities in an environment that could look very different than the one that has prevailed in recent years.
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 that have the potential for above average and sustainable rates of earnings growth. The companies may be anywhere in the world, including emerging markets.Investment Approach
- Single decision maker provides clear accountability.
- Identify “best ideas” by assessing companies in a global sector context, using bottom-up approach to create focused, high- conviction portfolio.
- Global research platform uses fundamental analysis to identify companies with superior and sustainable growth prospects, and improving fundamentals.
- Macroeconomic and local market factors are integrated in stock selection decisions.
- Valuation appeal is measured against local market and broad sector opportunity set.
- Broad range of stocks across all capitalizations, incorporating developed and emerging markets.
Portfolio Construction
- Number of holdings: typically 60-80 stocks
- Individual positions: Typically 0.5%-5.0%
- Emerging markets exposure: +/-15% of benchmark
- Broad sector ranges: +/-15% of benchmark
- Country ranges: +/-10% of benchmark (U.S.A. is +/-20%)
- Currency hedging: Currency views incorporated in stock selection
- Cash target range: Typically less than 5%, Maximum 10%
- Expected tracking error: 400 to 800 basis points
Performance (Class Q | GBP)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 14.90% | 13.91% | 16.84% | 16.89% |
| Indicative Benchmark % | 11.18% | 9.20% | 11.72% | 12.27% |
| Excess Return % | 3.72% | 4.71% | 5.12% | 4.62% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 8.54% | 16.23% | 17.96% | 17.49% |
| Indicative Benchmark % | 7.28% | 11.65% | 12.67% | 12.90% |
| Excess Return % | 1.26% | 4.58% | 5.29% | 4.59% |
Recent Performance
| Month to DateData as of 04-Dec-2019 | Quarter to DateData as of 04-Dec-2019 | Year to DateData as of 04-Dec-2019 | 1 MonthData as of 31-Oct-2019 | 3 MonthsData as of 31-Oct-2019 | |
|---|---|---|---|---|---|
| Fund % | -2.18% | 0.92% | 25.62% | -1.61% | -4.96% |
| Indicative Benchmark % | -1.99% | -1.73% | 18.01% | -2.16% | -3.09% |
| Excess Return % | -0.19% | 2.65% | 7.61% | 0.55% | -1.87% |
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.
Returns shown with reinvestment of dividends after the deduction of withholding taxes.
Effective 1 July 2018, 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
78
Largest Top Contributor^
JPMorgan Chase
By 0.23%Largest Top Detractor^
Netflix
By -0.10%Top Purchase
Alcon
2.01%Top Sale
Essity (E)
0.00%
Sectors
Total
Sectors
11
Top Contributor^
Materials
Net Contribution 0.61%Top Detractor^
Communication Services
Net Contribution -0.77%Largest Overweight
Information Technology
Largest Underweight
Consumer Staples
Countries
Total
Countries
19
Largest Overweight
China
Largest Underweight
United States
Currency
Total
Currencies
14
Largest Overweight
U.S. dollar
Largest Underweight
Canadian dollar
Team (As of 31-Aug-2019)
David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.
Mr. Eiswert has 19 years of investment experience, 16 of which have been with T. Rowe Price. Prior to joining the firm in 2003, he was an analyst at Mellon Growth Advisors and Fidelity Management and Research. He also worked as a consultant in the communications industry.
Mr. Eiswert earned a B.A., summa cum laude, in economics and political science from St. Mary's College of Maryland and an M.A. in economics from the University of Maryland, College Park. He also has earned the Chartered Financial Analyst designation.
- Fund manager2012
since - Years at16
T. Rowe Price - Years investment19
experience
Josh Nelson is a director of research in the U.S. Equity Department of T. Rowe Price. Previously, he was an associate portfolio manager for the Global Focused Growth Equity Strategy. He is on the Investment Advisory Committee of the Global Stock Strategy. He also serves on the Equity Steering Committee. Mr. Nelson is a vice president of T. Rowe Price Group, Inc.
Mr. Nelson has 17 years of investment experience, two of which have been with T. Rowe Price. He served as a summer intern with T. Rowe Price in 2006, covering agricultural commodities and ethanol companies. Prior to joining the firm in 2007, he was an investment banker for Citigroup Global Markets, Inc.
Mr. Nelson earned a B.S., with honors, in industrial systems and engineering from the University of Florida. He also earned an M.B.A., with honors, in finance from The Wharton School, University of Pennsylvania.
- Fund manager2009
since - Years at12
T. Rowe Price - Years investment17
experience
Kurt Umbarger is the regional head of the Equity Investment Specialist Group of T. Rowe Price. Previously, he was a global equity portfolio specialist in the International Equity Division. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Mr. Umbarger has 26 years of investment experience, all of which have been at T. Rowe Price. He joined the firm in 1992 and has been a portfolio specialist since 2001. Prior to joining the global equity team in 2005, Mr. Umbarger worked with the international and emerging market equity teams. As a portfolio specialist, he has traveled the world, working closely with institutional clients, consultants, and prospects.
Mr. Umbarger earned a B.S. in finance from Towson University and an M.S.F. in finance from Loyola University Maryland. He also has earned the Chartered Financial Analyst designation and is a Series 6, 7, 63, and 65 registered representative.
- Years at26
T. Rowe Price - Years investment26
experience
Laurence Taylor is a portfolio specialist in the Equity Division at T. Rowe Price, representing the firm's global equity strategies to institutional clients, consultants and prospects. Mr. Taylor is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.
Mr. Taylor has 19 years of investment experience, 10 of which have been with T. Rowe Price. Prior to joining the firm in 2008, Mr. Taylor was a quantitative portfolio manager at AXA Rosenberg, with responsibility for European institutional clients, and began his career at Hewitt Associates in the UK investment practice. At Hewitt, Mr. Taylor provided investment advice to European institutions as a client-facing consultant before specializing in the research and selection of global and regional equity managers in the manager research team.
Mr. Taylor obtained his B.A., with honours, from Greenwich University and has earned the Chartered Financial Analyst designation.
- Years at11
T. Rowe Price - Years investment20
experience
Fee Schedule
| Share Class | Minimum Initial Investment and Holding Amount | Minimum Subsequent Investment | Minimum Redemption Amount | Sales Charge (up to) | Investment Management Fee (up to) | Ongoing Charges | UK Tax Reporting Status |
|---|---|---|---|---|---|---|---|
| Class A | $15,000 | $100 | $100 | 5.00% | 160 basis points | 1.77% | Yes |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 75 basis points | 0.81% | Yes |
| Class Q | $15,000 | $100 | $100 | 0.00% | 75 basis points | 0.92% | 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.
David Eiswert is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is the portfolio manager for the Global Focused Growth Equity Strategy, a role he has held since October 1, 2012. Prior to his current role, Mr. Eiswert was the portfolio manager for the Global Technology Strategy from October 2008 until May 2012. He was a technology analyst from 2003 until 2012. Mr. Eiswert is a vice president of T. Rowe Price Group, Inc.