Strategy

Emerging Markets Equity

The Emerging Markets Equity Composite seeks long-term capital appreciation primarily through investment in established companies, in developing markets, with faster earnings growth and reasonable valuation levels relative to market/sector averages.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

1.56%
3.45%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

-14.37%
1.07

Inception Date 31-Dec-1995

Performance figures calculated in USD

Other Literature

Gonzalo Pángaro
Gonzalo Pángaro, Portfolio Manager

Gonzalo Pángaro is the lead portfolio manager for the Emerging Markets Equity Strategy in the Equity Division. He is chairman of the Investment Advisory Committee for the Emerging Markets Equity Strategy  and a member of the International Equity Steering Committee. Gonzalo is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

 

Strategy

Investment Approach

  • Employ fundamental analysis to identify companies with sustainable above-market earnings growth rates.
  • Focus on franchise strength, management team quality, free cash flow, and financing/balance sheet structure.
  • Verify relative valuation appeal versus both local market and broad sector opportunity set.
  • Apply negative screening for macroeconomic and political factors to temper bottom-up enthusiasm for specific securities.

Portfolio Construction

  • Typically 80-100 stocks
  • Expected 3-7 tracking error
  • Individual positions typically range from 0.30% to 6.00% — average position size from 0.50% to 1.00%
  • Country ranges +/- 10% absolute deviation from the benchmark
  • Sector ranges +/- 15% absolute deviation from the benchmark
  • Reserves are typically less than 5%
  • Expected Turnover range: 20-40%

Holdings

Total
Holdings
87
Largest Holding Tencent Holdings 8.08% Was (31-Dec-2019) 5.99%
Other View Full Holdings Quarterly data as of 31-Mar-2020
Top 10 Holdings 46.65% View Top 10 Holdings Monthly data as of 31-Mar-2020

Top Purchase

Tencent Holdings
7.99%
Was (31-Dec-2019) 5.99%

Top Sale

Bank Central Asia
1.27%
Was (31-Dec-2019) 1.66%

Quarterly Data as of 31-Mar-2020

Sectors

Total
Sectors
10
Largest Sector Financials 25.99% Was (31-Dec-2019) 29.27%
Other View complete Sector Diversification

Monthly Data as of 31-Mar-2020

Benchmark: MSCI Emerging Markets Index

Top Contributor^

Energy
Net Contribution 1.30%
Sector
1.38%
Selection -0.07%

Top Detractor^

Financials
Net Contribution -2.48%
Sector
-0.45%
Selection
-2.03%

^Relative

Quarterly Data as of 31-Mar-2020

Largest Overweight

Consumer Staples
By10.90%
Portfolio 17.52%
Benchmark 6.62%

Largest Underweight

Energy
By-5.42%
Portfolio 0.49%
Benchmark 5.90%

Monthly Data as of 31-Mar-2020

Regions

Total
Regions
4
Largest Region Pacific Ex Japan 69.86% Was (31-Dec-2019) 61.65%
Other View complete Region Diversification

Monthly Data as of 31-Mar-2020

Benchmark: MSCI Emerging Markets Index

Largest Overweight

Latin America
By5.57%
Portfolio 13.66%
Benchmark 8.09%

Largest Underweight

Pacific Ex Japan
By-9.14%
Portfolio 69.86%
Benchmark 79.00%

Monthly Data as of 31-Mar-2020

Countries

Total
Countries
24
Largest Country China 32.47% Was (31-Dec-2019) 26.38%
Other View complete Country Diversification

Monthly Data as of 31-Mar-2020

Benchmark: MSCI Emerging Markets Index

Top Contributor^

South Korea
Net Contribution 0.82%
Country
0.03%
Selection 0.79%

Top Detractor^

China
Net Contribution -0.74%
Country
-1.09%
Selection
0.35%

^Relative

Quarterly Data as of 31-Mar-2020

Largest Overweight

Hong Kong
By2.97%
Portfolio 2.97%
Benchmark 0.00%

Largest Underweight

China
By-8.18%
Portfolio 32.47%
Benchmark 40.65%

Monthly Data as of 31-Mar-2020

Team (As of 08-Jul-2020)

Gonzalo Pángaro

Gonzalo Pángaro is the lead portfolio manager for the Emerging Markets Equity Strategy in the Equity Division. He is chairman of the Investment Advisory Committee for the Emerging Markets Equity Strategy  and a member of the International Equity Steering Committee. Gonzalo is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Gonzalo’s investment experience began in 1991, and he has been with T. Rowe Price since 1995, beginning in the Buenos Aires office as an analyst, covering Latin American equities from Buenos Aires. After that, he served as head of International Research from 2000 to 2004. He also has been instrumental in the development of the firm's non-U.S. research capabilities. Prior to T. Rowe Price, Gonzalo was employed by Robert Fleming as head of Argentine research, covering Latin American utilities. He also was an investment analyst with Banco Mildesa, specializing in the Argentine market. 

Gonzalo earned a bachelor's degree in business administration from Argentine Catholic University and a master's degree in finance from CEMA University (Centro de Estudios Macroeconomicos de la Argentina). Gonzalo also has earned the Chartered Financial Analyst® designation. In addition to English, Gonzalo is fluent in Spanish and Portuguese.

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

  • Portfolio manager
    since
    2004
  • Years at
    T. Rowe Price
    22
  • Years investment
    experience
    28
Charles Knudsen, CFA

Chuck Knudsen is a portfolio specialist in the Equity Division. He also is a member of the Emerging Markets Equity team. Chuck is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc. 

Chuck’s investment experience began in 1987, and he has been with T. Rowe Price since 2005, beginning in the Global Investment Services department, the organization responsible for the firm's institutional business worldwide. After that, he was the associate head of Institutional Client Service, North America, for Global Investment Services. Prior to T. Rowe Price, Chuck was a senior vice president with Legg Mason Capital Management for three years, servicing many of the firm's large, global institutional clients. He also spent 15 years with Allied Investment Advisors, where he oversaw the Client Service team, was an equity analyst, and served as the portfolio manager for the Ark Funds Balanced Portfolio.

Chuck earned a B.A. from Duke University and an M.B.A. in finance and investments from George Washington University. He also has earned the Chartered Financial Analyst® designation and is a Series 7 and 63 registered representative.

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

  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    33

Download

Latest Date Range
Audience for the document: Share Class: Language of the document:
Download Cancel

Download

Share Class: Language of the document:
Download Cancel
Sign in to manage subscriptions for products, insights and email updates.
Continue with sign in?
To complete sign in and be redirected to your registered country, please select continue. Select cancel to remain on the current site.
Continue Cancel
Once registered, you'll be able to start subscribing.

By clicking the Continue button, I acknowledge that I have read and accepted the Privacy Notice

Continue Back

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

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

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest