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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

Global Value Equity Fund

Targeting attractively valued global companies with prospects for improving earnings growth.

ISIN LU0859255472 Bloomberg TRPGVEI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

10.62%
$508.1m

1YR Return
(View Total Returns)

Manager Tenure

35.96%
8yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.65
4.45%

Inception Date 28-Nov-2012

Performance figures calculated in USD

30-Sep-2021 - Sebastien Mallet, Portfolio Manager,
As the global economic recovery continues to strengthen, this could provide a more sustained positive backdrop for value investing. A more constructive stance in the market’s longer-term prognosis for inflation and interest rates should similarly be very supportive. Our strategy continues to invest across the value spectrum in the best ideas from our global research platform.
Sebastien Mallet
Sebastien Mallet, Portfolio Manager

Sebastien Mallet is a portfolio manager in the Equity Division at T. Rowe Price, managing the Institutional Global Value Strategy. Mr. Mallet is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

 

Strategy

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 widely diversified portfolio of undervalued stocks of companies anywhere in the world, including emerging markets.

Investment Approach

  • Diversified portfolio investing in companies located throughout the globe.
  • Emphasize attractively valued companies with prospects for improving earnings growth.
  • Employ rigorous and comprehensive research to identify and assess investment opportunities.
  • Allocate country and sector positions through consideration of:~~Attractiveness of individual investments^^~~Macroeconomic environment^^
  • 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 80-100 stock portfolio
  • Individual positions typically range from 0.30% to 3.00% — average position size of 1.00%
  • Country and sector weights generally range +/- 15% deviation from the benchmark
  • Maximum of 10% in emerging markets
  • Reserves range from 0% to 10%

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 35.96% 10.62% 10.84% 11.01% 11.01%
Indicative Benchmark % 28.82% 13.14% 13.74% 12.00% 12.00%
Excess Return % 7.14% -2.52% -2.90% -0.99% -0.99%

Inception Date 28-Nov-2012

Manager Inception Date 28-Nov-2012

Indicative Benchmark: MSCI World Index Net

Data as of 30-Sep-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 35.96% 10.62% 10.84% 11.01%
Indicative Benchmark % 28.82% 13.14% 13.74% 12.00%
Excess Return % 7.14% -2.52% -2.90% -0.99%

Inception Date 28-Nov-2012

Indicative Benchmark: MSCI World Index Net

Data as of 30-Sep-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 21-Oct-2021 Quarter to DateData as of 21-Oct-2021 Year to DateData as of 21-Oct-2021 1 MonthData as of 30-Sep-2021 3 MonthsData as of 30-Sep-2021
Fund % 3.06% 3.06% 16.89% -2.67% -0.24%
Indicative Benchmark % 4.90% 4.90% 18.57% -4.15% -0.01%
Excess Return % -1.84% -1.84% -1.68% 1.48% -0.23%

Inception Date 28-Nov-2012

Indicative Benchmark: MSCI World Index Net

Indicative Benchmark: MSCI World Index Net

Performance figures calculated in USD

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.

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 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. 

30-Sep-2021 - Sebastien Mallet, Portfolio Manager,
Global stocks fell in September as investors focused on the prospect of inflation supply chain-caused inflation. The U.S. Federal Reserve signalled a more hawkish stance in September regarding the persistence of higher inflation and the need to start the tapering its bond buying programme in the coming months. Sentiment was kept in check in China by ongoing uncertainty regarding possible tighter regulatory measures by the authorities as well as the debt crisis at property giant Evergrande. At the portfolio level, stock selection in the U.S. was a significant contributor to relative performance and our holding in a low-cost nitrogen producer was beneficial. The company delivered solid quarterly earnings, and the market reacted to several cyclical strengths, including grain prices, the steepening nitrogen cost curve, and seasonality of demand. The Nordic region was another source of strength. Here, our position in a Sweden-listed independent oil and gas exploration and production company primarily focused on oil activities in Norway rose on the higher oil price. Conversely, our stock selection in China dragged; the market sold off on concerns that there would be a contagion effect from Evergrande’s woes to other Chinese companies.

Holdings

Total
Holdings
96
Largest Holding Microsoft 4.30% Was (30-Jun-2021) 3.55%
Other View Full Holdings Quarterly data as of  30-Sep-2021
Top 10 Holdings 24.51% View Top 10 Holdings Monthly data as of  30-Sep-2021

Largest Top Contributor^

Microsoft
% of fund 4.27%

Largest Top Detractor^

T-Mobile US
% of fund 1.33%

^Absolute, percentages based on the difference between the total net assets of the two largest holdings of the fund.

Quarterly Data as of 30-Sep-2021

Top Purchase

Alphabet Class A (N)
2.87%
Was (30-Jun-2021) 0%

Top Sale

Bank of America (E)
0.00%
Was (30-Jun-2021) 2.16%

Quarterly Data as of 30-Sep-2021

30-Jun-2021 - Sebastien Mallet, Portfolio Manager,

Following exceptionally strong share price performance over the previous 15 months, which have left valuations less attractive, we have become slightly less bullishly positioned. Over the quarter, we shifted the portfolio to a moderately more defensive stance. These moves reflect the changes in relative valuations between sectors that have taken place in recent months. While our portfolio maintains a balance across the value style spectrum, we have booked profits in holdings that have had a strong recovery, reducing our exposure to deeper value companies and moving towards those that offer good free cash flow.� �On a sector basis, we raised the weighting to traditionally defensive areas such as health care and, to a lesser extent, consumer staples while lowering the more cyclical areas of financials and consumer discretionary.

At the end of June, our major overweight sector positions were in financials, industrials and business services, materials, and health care. The largest underweight sector positions included IT, consumer discretionary, and consumer staples. On a geographic basis, we remain cautious about valuations in the U.S. and have become even more so following recent market movements. Although the country represents the largest position in the portfolio on an absolute basis, we retain a significant relative underweight. Many coronavirus-exposed consumer-related stocks are now trading considerably above their normal valuation levels. Our largest relative overweight positions are in China and Japan. We also see value in emerging markets and the UK.

Health Care

Following the recent relative underperformance of the health care sector, particularly in the U.S., valuation spreads had reached attractive levels in our view. The sector has lagged the broader equity market in the year to date amid uncertainty over health care reforms in the U.S, despite the fact that this space is home to many companies with good growth prospects.� As a result, we incrementally added to our sector weighting over the quarter. Our focus is on managed care names. At the same time, we have also eliminated companies where the original investment case had played out.

  • We initiated a holding in U.S.-based Anthem, which provides life, hospital and medical insurance plans. It offers a broad spectrum of network-based managed care health benefit plans to the large and small employer, individual, Medicaid, and Medicare markets. The company benefits from strong local share and brand recognition.
  • We sold out of U.S.-listed diversified company Johnson & Johnson, which is engaged in the development, manufacturing and sale of pharmaceuticals, medical devices and consumer healthcare products. The company reported solid quarterly results, with scope for increased earnings per share guidance this year, contingent on a continued recovery in the devices segment and low margin COVID vaccine revenues. While we view this as a decent stock holding, we have concerns about the sustainability of growth and find more compelling opportunities elsewhere in this sector.
  • HCA Healthcare represents the largest publicly listed hospital company in the U.S. The company reported strong quarterly results, with earnings coming in above consensus and expenses being kept in check. While the stock has been a strong outperformer, we sold the stock as its valuation is now looking slightly expensive and we chose to gain exposure to the health care sector through higher conviction ideas.

Financials

The portfolio has a significant overweight position in financials; however, we modestly trimmed this over the course of the second quarter. Our exposure continues to be tilted towards U.S. banks as we believe they stand to benefit from a favorable interest rate environment, are generally better-managed than their peers in other regions, and operate under the jurisdiction of a more benign, hands-off regulator. However, following exceptional share price performance from this group in recent months, stocks were beginning to price in an economic recovery and valuations looked less attractive. Beyond banks, we continue to believe that the global property and casualty insurance industry looks set to have more pricing power, following a large number of catastrophes forcing up industry costs and driving a number of smaller players out of the industry.

  • We eliminated our holding in Capital One, which operates through credit card, consumer banking and commercial banking segments. The stock has strongly outperformed as the economic recovery begins to be priced into the U.S. equity market. In our view, the upside potential has been reduced, and the risk/reward profile no longer looks as compelling from here.
  • We topped up our holding in multinational investment bank Bank of America, one of the largest U.S. money center banks. The company operates in retail financial services (consumer banking, wealth management, mortgages), trading and wholesale banking. We believe that the bank will benefit from the economic recovery and this holding is one of our highest conviction positions in the U.S. banking space. The portfolio remains overweight the U.S. financials sector overall.

Utilities

Over the quarter we reduced the extent of our overweight position in the utilities sector. This was largely the result of divesting of a holding on relative valuation grounds.

  • We sold out of our position in U.S. diversified energy company Public Service Enterprise. The company is in the process of improving the quality of its earnings mix and the business' focus is on selling its fossil fuel generation portfolio and entering the offshore wind business. The company is also working to de-risk its nuclear generation business. The stock has been a strong performer; however, we found higher conviction ideas elsewhere.

IT

IT is a very large and diversified sector and over the past year we have generally seen the most opportunities in cyclical areas (particularly memory semiconductor-related names) and in recovery plays. We retain a significant relative underweight position in this sector, largely due to valuation reasons; however, over the past few months valuation spreads have narrowed vis a vis other sectors and we are beginning to slowly and selectively build our exposure.�

  • We added to our holding in Microsoft, the software industry's dominant player, which has leading positions in PC and server operating systems and productivity suites. The company is evolving to the cloud computing era, particularly with its Office 365 productivity and Azure public cloud offerings. The company's valuation remains reasonable and we expect that it will be able to grow free cashflow at a double-digit compound annual growth rate.

Communication Services

Having begun the quarter underweight the communication services sector, we raised our exposure over the period to almost benchmark neutral.

  • We added to our existing position in Facebook, the world's largest social media platform, which has over two billion daily active users across its four major properties (Facebook, Instagram, WhatsApp and Messenger). In our view, the company is among the best-placed to benefit from the transition from offline to online advertising with mobile marketing now driving the vast majority of industry-wide growth. The company offers scale, growth and profitability at an attractive valuation with multiple potential catalysts for outperformance.

Sectors

Total
Sectors
11
Largest Sector Financials 20.83% Was (31-Aug-2021) 18.03%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: MSCI World Index

Top Contributor^

Financials
Net Contribution 0.91%
Sector
0.16%
Selection 0.76%

Top Detractor^

Information Technology
Net Contribution -0.77%
Sector
-0.11%
Selection
-0.66%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Financials
By7.14%
Fund 20.83%
Indicative Benchmark 13.69%

Largest Underweight

Information Technology
By-8.97%
Fund 13.56%
Indicative Benchmark 22.53%

Monthly Data as of 30-Sep-2021

30-Sep-2021 - Sebastien Mallet, Portfolio Manager,
In September we made a number of adjustments to our holdings within the financials sector. For example, we initiated a position in a U.S.-based custody bank, which operates in over 100 markets globally. While the stock has been an underperformer in recent years, efforts to control expenses and offset fee compression mean that the company’s servicing business is now generating modest levels of profitability before including the contribution from net interest income. We find the valuation reasonable and the risk/reward outlook compelling. Rising rates could provide a further tailwind for the stock.

Regions

Total
Regions
6
Largest Region North America 61.96% Was (31-Aug-2021) 58.66%
Other View complete Region Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: MSCI World Index

Top Contributor^

Developed Europe
Net Contribution 0.14%
Region
-0.04%
Selection 0.18%

Top Detractor^

United States
Net Contribution -0.45%
Region
-0.04%
Selection
-0.41%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Pacific Ex Japan
By3.50%
Fund 6.79%
Indicative Benchmark 3.28%

Largest Underweight

North America
By-8.67%
Fund 61.96%
Indicative Benchmark 70.63%

Monthly Data as of 30-Sep-2021

Countries

Total
Countries
20
Largest Country United States 60.13% Was (31-Aug-2021) 56.72%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: MSCI World Index

Largest Overweight

China
By3.55%
Fund 3.56%
Indicative Benchmark 0.01%

Largest Underweight

United States
By-7.27%
Fund 60.13%
Indicative Benchmark 67.40%

Monthly Data as of 30-Sep-2021

Team (As of 01-Oct-2021)

Sebastien Mallet

Sebastien Mallet is a portfolio manager in the Equity Division at T. Rowe Price, managing the Institutional Global Value Strategy. Mr. Mallet is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Mallet has 19 years of investment experience, 14 of which have been at T. Rowe Price. Prior to joining the firm in 2005, he was a telecom banker at Credit Suisse First Boston in the Tokyo and London offices. Mr. Mallet started his career as a financial analyst with France Telecom, based in Guangzhou, China, and Madrid, Spain.

Mr. Mallet earned an M.A., with honours, in finance from the University of Paris and an M.B.A. from the London Business School.

  • Fund manager
    since
    2012
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    20

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

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.