Japanese Equity Fund

Seeking to uncover the best investment opportunities across the Japanese equity spectrum.

ISIN LU0230817925 Bloomberg TRPJAEI:LX

3YR Return Annualised
(View Total Returns)

Total Assets


1YR Return
(View Total Returns)

Manager Tenure


Information Ratio
(5 Years)

Tracking Error
(5 Years)


Inception Date 16-Dec-2005

Performance figures calculated in EUR

Other Literature

30-Jun-2020 - Archibald Ciganer, Portfolio Manager,
Japan is more exposed to the global economic cycle than many other markets. Therefore, we believe that the country is well positioned to benefit from the unprecedented fiscal and monetary easing measures implemented globally to support economies, and an improvement in earnings from depressed levels as the world economy enters the recovery stage. Japanese corporates are also cash rich; that should help them weather the near-term crisis, but also make progress in ongoing corporate governance reform.
Archibald Ciganer
Archibald Ciganer, Portfolio Manager

Archibald Ciganer is the portfolio manager of the Japan Equity Strategy in the International Equity Division. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Japan, Inc.



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 stocks of companies in Japan.

Investment Approach

  • Macroeconomic factors have a role, but our approach is primarily bottom-up and research driven.
  • Growth opportunities are found across the capitalization spectrum and across market sectors.
  • Risk is managed at stock, sector, and cap-range levels.
  • Portfolio rebalancing is an effective risk management tool.

Portfolio Construction

  • Typically 80-110 stock portfolio
  • Minimum individual position size is 0.40%
  • Individual position sizes can range +/- 2.00% relative to the benchmark
  • Sector weightings vary from +/- 10% of the benchmark
  • Tracking error expected to range between 300 and 600 bps
  • Target reserves less than 5%

Performance (Class I)

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % 16.16% 9.23% 9.86% 11.05% 12.41%
Indicative Benchmark % 3.99% 2.77% 3.43% 7.22% 7.77%
Excess Return % 12.17% 6.46% 6.43% 3.83% 4.64%

Inception Date 16-Dec-2005

Manager Inception Date 26-Dec-2013

Indicative Benchmark: TOPIX Index Net

Data as of  30-Jun-2020

Performance figures calculated in EUR

  1 YR 3 YR
5 YR
10 YR
Fund % 16.16% 9.23% 9.86% 11.05%
Indicative Benchmark % 3.99% 2.77% 3.43% 7.22%
Excess Return % 12.17% 6.46% 6.43% 3.83%

Inception Date 16-Dec-2005

Indicative Benchmark: TOPIX Index Net

Data as of  30-Jun-2020

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 07-Aug-2020 Quarter to DateData as of 07-Aug-2020 Year to DateData as of 07-Aug-2020 1 MonthData as of 30-Jun-2020 3 MonthsData as of 30-Jun-2020
Fund % 3.32% -1.69% 0.54% -1.55% 17.84%
Indicative Benchmark % 3.55% -3.68% -11.14% -1.31% 8.73%
Excess Return % -0.23% 1.99% 11.68% -0.24% 9.11%

Inception Date 16-Dec-2005

Indicative Benchmark: TOPIX Index Net

Indicative Benchmark: TOPIX Index Net

Performance figures calculated in EUR

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.

30-Jun-2020 - Archibald Ciganer, Portfolio Manager,
Japanese equities fell slightly in June, lagging their developed market peers, as weak domestic economic data weighed on sentiment. Within the portfolio, stock selection in information technology (IT) and services was weak, although losses were to a degree offset by our overweight sector position. Stock selection and an overweight position in machinery was the greatest area of strength. In IT and services, our overweight holding in Solasto held back relative returns. The provider of services in medical outsourcing and elderly and childcare has seen a strong run of performance and shares were subject to profit taking over the month. Elsewhere in the sector, Sansan, a provider of business card management services, also dragged as investors locked in profits. On the other hand, machinery sector holdings Hoshizaki, Daikin Industries, and Kubota all contributed positively, benefitting from an improving global growth outlook and an uptick in sentiment. The top-contributing stock in the portfolio was SoftBank Group, as the telecommunications and internet conglomerate continued to sell assets and buy back shares.


Largest Holding SOFTBANK GROUP CORP 5.59% Was (31-Mar-2020) 3.97%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 40.47% View Top 10 Holdings Monthly data as of 30-Jun-2020

Largest Top Contributor^

By 0.77%
% of fund 5.56%

Largest Top Detractor^

Nippon Telegraph & Telephone
By -0.79%
% of fund 3.58%


Quarterly Data as of 30-Jun-2020

Top Purchase

Suzuki Motor
Was (31-Mar-2020) 1.55%

Top Sale

Was (31-Mar-2020) 3.80%

Quarterly Data as of 30-Jun-2020

31-Mar-2020 - Archibald Ciganer, Portfolio Manager,

We made no major changes in terms of portfolio positioning or the stocks we hold over the quarter.

At the margin, we took advantage of some of the price discrepancies we have seen during the volatility; we eliminated some stocks that have rallied because of the coronavirus pandemic and added to several names that we have wanted to own for some time but were previously too expensive.

IT and Services

IT and services remains, by far, the portfolio's largest overweight, with significant positions in communications names including SoftBank, Nippon Telegraph & Telecommunications, and NTT DoCoMo. We are bullish on the industry, specifically the scope for improving earnings, while valuations also look attractive.

In the sector, we established a new position in Oriental Land Company, the operator of Tokyo Disney Resort. The stock plunged on the coronavirus pandemic and its impact on tourism. If we value the company's real estate and earnings potential, we find the stock trades at highly attractive valuations-the near-term volatility provided an attractive entry point, given our long-term investment horizon.

We also added a holding in Net One Systems, which specializes in network products and services in Japan with a top share in Cisco products. It is a strong durable growth company with network infrastructure and cloud computing. The company sells hardware but also provides higher-margin network design and monitoring. Shares in the company sold off on allegations of spurious accounts; however, our research leads us to believe there is no wrongdoing by the company. The sell-off provides an attractive opportunity to buy a company with strong tailwinds that have been further accelerated by the coronavirus and the emphasis on remote working.

Raw Materials and Chemicals

In the raw materials and chemicals sector, we added a holding in Fancl, a cosmetics and nutritional supplements manufacturer. The brand is mainly marketed through direct sales and mail order, but also through retail stores. Overseas sales are small but increasing, while inbound tourism provides scope for growth. The coronavirus pandemic resulted in a large sell-off in the name and provided an opportunity to buy the stock, which we believe has previously been too expensive. The company's long-term growth outlook and margin expansion potential underpin our investment thesis.

Conversely, we exited our position in Fujifilm. The company generates strong and stable cash from its businesses in imaging (camera, photo film) and also medical equipment and pharmaceuticals. The stock rallied strongly on news that China was having some success treating COVID-19, the disease caused by the coronavirus, with Fujifilm's drug, but the company's drug is off-patent and generics exist. The outperformance was marked, and we sold the company into this strength.


We moved further underweight the foods sector. We sold our holding in Coca-Cola Bottlers, Japan's largest bottler by revenue. Our investment thesis was predicated on the company's new management being able to turn around the business. While management has been keen to make progress on this, the group's restrictive structure has been an impediment.

We also exited our position in Calbee, Japan's top manufacturer of salty snacks and the fifth largest globally. Our thesis was around the U.S. business improving and domestic margins expanding, but execution remains poor.


Largest Sector It & Services & Others 34.41% Was (31-May-2020) 38.84%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Indicative Benchmark: TOPIX Index

Top Contributor^

Industrials & Business Services
Net Contribution 3.18%
Selection 3.21%

Top Detractor^

Net Contribution -0.06%


Quarterly Data as of 30-Jun-2020

Largest Overweight

It & Services & Others
Fund 34.41%
Indicative Benchmark 17.75%

Largest Underweight

Fund 0.00%
Indicative Benchmark 4.95%

Monthly Data as of 30-Jun-2020

30-Jun-2020 - Archibald Ciganer, Portfolio Manager,
The disparity in performance between quality defensive companies and cyclicals has been extreme. In light of these differences, we have worked hard to identify quality cyclical companies that stand to outperform as earnings expectations improve from depressed levels. We have increased the portfolio’s turnover as we look to take advantage of these performance disparities. We have added cyclical exposure, particularly in the factory automation space; sentiment is depressed in this area at the moment, but we believe the demand for factory automation will be expedited by the coronavirus pandemic.

Team (As of 05-Aug-2020)

Archibald Ciganer

Archibald Ciganer is the portfolio manager of the Japan Equity Strategy in the International Equity Division. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Japan, Inc.

Archibald’s investment experience began in 1999, and he has been with T. Rowe Price since 2007, beginning in the International Equity groupDivision. Archibald began his career as a credit analyst with BNP Paribas in Japan. Subsequently, he served as an associate in the firm'sBNP’s Investment Banking Department and, most recently, as a vice president in Mergers and Acquisitions, where he handled a number of cross-border transactions for blue chip Japanese and foreign corporates.

Archibald earned a B.A. in finance and accounting from Institut d'Etudes Politiques de Paris (sSciences pPo.). Archibald He also has also earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
  • Years at
    T. Rowe Price
  • Years investment
Laurence Taylor

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 at
    T. Rowe Price
  • Years investment

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 A €1,000 €100 €100 5.00% 160 basis points 1.71% No
Class I €2,500,000 €100,000 €0 0.00% 75 basis points 0.81% No
Class Q €1,000 €100 €100 0.00% 75 basis points 0.86% 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. 


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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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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