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
Equity markets were volatile during the quarter as concerns around the new delta variant of COVID-19 contended with optimism surrounding accelerated global vaccine distribution. As global economies begin to heal and emerge from the coronavirus pandemic, it is important to appreciate the long, winding road "back to the future"?a new normal defined by fundamental and behavioral differences. Within equity markets, much debate centers on the future path of interest rates, inflation, and economic growth. Asset prices may be high, but they are high for a reason: Interest rates remain low, government stimulus has been unprecedented, and there is no credit cycle to act as a disruptor. Still, we do see pockets of exuberance within the market and are using prudence and our active approach to avoid significantly mispriced risk.
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We are also witnessing "absurd" inflation in many areas of the economy, as well as general inflation in the labor market, distortions we believe are driven by the pandemic. We expect some of the recent extreme inflation to wane as the economy emerges from the pandemic but acknowledge that economic growth on a year-on-year basis is not likely to fully normalize until the latter part of next year. While the U.S. Federal Reserve contemplates its next moves, which likely means a less accommodative policy going forward, we expect interest rates to remain historically low. In our view, an environment with moderate inflation and moderately higher interest rates could be a positive catalyst for equities. We are comfortable with our positioning and continue to search for solid growth assets that are out of favor currently but where we see potentially higher growth in 2022 and beyond?like some travel-related names and select financials. We also believe it is worth exploring China's regulatory changes and the opportunities that it may create?albeit with prudence.�
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As we move through this extraordinary period, we continue to focus our time on the hard and difficult choices required during these complex times. Our aim is to own stocks where we have an insight about improving economic returns while avoiding stocks that imply unnecessary risks and should be avoided. This is our role as fundamental bottom-up stock pickers. Ultimately, we favor companies with idiosyncratic drivers that are on the right side of change. It remains critical as we move "back to the future" to distinguish between the "chasm crossers"?those companies that will succeed and thrive?and the "imposters"?those companies that experienced temporary benefits that will likely not prove durable. This approach often requires imagination and a carefully contrarian mindset, but experience has shown that making difficult decisions by adhering to our investment framework with the support of our global research platform ultimately can add value for our clients.
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.
- 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
- 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
Recent Performance
| Month to DateData as of 07-Dec-2021 | Quarter to DateData as of 07-Dec-2021 | Year to DateData as of 07-Dec-2021 | 1 MonthData as of 30-Nov-2021 | 3 MonthsData as of 30-Nov-2021 | |
|---|---|---|---|---|---|
| Fund % | 0.49% | 1.95% | 12.72% | 0.40% | 0.64% |
| Indicative Benchmark % | 2.55% | 7.21% | 20.77% | 1.11% | 2.29% |
| Excess Return % | -2.06% | -5.26% | -8.05% | -0.71% | -1.65% |
Sectors
Total
Sectors
9
Top Contributor^
Industrials & Business Services
Net Contribution 0.86%Top Detractor^
Information Technology
Net Contribution -0.47%Largest Overweight
Communication Services
Largest Underweight
Information Technology
Countries
Total
Countries
16
Largest Overweight
United Kingdom
Largest Underweight
United States
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% | Yes |
| Class I | $2,500,000 | $100,000 | $0 | N/A | 75 basis points | 0.85% | Yes |
| Class Q | $1,000 | $100 | $100 | N/A | 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.