T. Rowe Price Global Equity (Hedged) aims to provide long-term capital appreciation by investing primarily in a portfolio of securities of companies which are traded, listed or due to be listed, on recognised exchanges and/or markets throughout the world.
The fund performed mostly in line with the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended September 30, 2023. Apple was the largest relative contributor for the month. Although shares of Apple fell over the month, our position was a relative contributor due to our underweight position versus the benchmark. Shares of Apple were pressured by several factors, including macroeconomic concerns, fears that China would restrict iPhone purchases, and issues involving the new iPhone 15 Pro overheating. We still believe that Apple is well positioned for growth given consistent iPhone demand, market share gains in China, and the firm’s massive research and development program. However, our underweight versus the benchmark is a reflection of the stock’s relatively expensive valuation and uncertainty surrounding the firm’s near-term outlook. At the sector level, stock selection in industrials and business services helped relative returns, with our holdings in SM Investments, Roper Technologies, and Container Corporation of India performing the best. On the other hand, holdings in energy hurt relative returns, especially our positions in EQT and Schlumberger.
What is T. Rowe Price Global Equity (Hedged) T. Rowe Price Global Equity (Hedged) is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Currency Hedged Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The T. Rowe Price Global Equity (Hedged) has Assets Under Management of 560.99 M with a management fee of 0.96%, a performance fee of 0 and a buy/sell spread fee of 0.45%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the T. Rowe Price Global Equity (Hedged) has returned 1.67% in the last month. The previous three years have returned -0.75% annualised and 15.09% each year since inception, which is when the T. Rowe Price Global Equity (Hedged) first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since T. Rowe Price Global Equity (Hedged) first started, the Sharpe ratio is NA with an annualised volatility of 15.09%. The maximum drawdown of the investment product in the last 12 months is -3% and -34.56% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The T. Rowe Price Global Equity (Hedged) has a 12-month excess return when compared to the Foreign Equity - Currency Hedged Index of 1.71% and 0.86% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. T. Rowe Price Global Equity (Hedged) has produced Alpha over the Foreign Equity - Currency Hedged Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Foreign Equity - Currency Hedged Index category, you can click here for the Peer Investment Report.
What level of diversification will T. Rowe Price Global Equity (Hedged) provide? T. Rowe Price Global Equity (Hedged) has a correlation coefficient of 0.92 and a beta of 0.99 when compared to the Foreign Equity - Currency Hedged Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on T. Rowe Price Global Equity (Hedged) and its peer investments, you can click here for the Peer Investment Report.
How do I compare the T. Rowe Price Global Equity (Hedged) with the Developed -World Index? For a full quantitative report on T. Rowe Price Global Equity (Hedged) compared to the Developed -World Index, you can click here.
Can I sort and compare the T. Rowe Price Global Equity (Hedged) to do my own analysis? To sort and compare the T. Rowe Price Global Equity (Hedged) financial metrics, please refer to the table above.
Has the T. Rowe Price Global Equity (Hedged) been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
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Performance Commentary - August 31, 2023 The fund performed mostly in line with the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended August 31, 2023. Adyen was the largest relative detractor for the month. Adyen is a full-stack payments platform that consists of providing gateway, acquiring, risk management, processing, settlement, and issuing services.
Shares sold off sharply following the release of very poor earnings results that underperformed already low consensus expectations. Results were mainly driven by a slowdown in the U.S. segment due to merchant costcutting, increasing competition, higher capital expenditures, and challenges with offline services. We still believe Adyen has a long runway for above-market growth driven by secular trends and a technological advantage over incumbents that is very difficult to replicate, but given these disappointing earnings results, we chose to moderate our position size. At the sector level, stock selection in financials hurt relative returns, with our holdings in Adyen and NU Holdings performing the worst. On the other hand, holdings in information technology helped relative returns, especially our positions in FPT and NVIDIA.
Performance Commentary - July 31, 2023 The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended July 31, 2023. Evotec was the largest relative contributor for the month. Although the European contract research organization lowered its 2023 full-year guidance due to the impact from a cyberattack earlier in the year, shares rose on the back of several positive developments, including a contract with the U.S. Department of Defense and news that Bristol-Myers Squibb would be entering into an exclusive licensing agreement. Management also indicated that despite one-off issues affecting 2023 growth, it fully expects reaccelerating in 2024 and beyond. Evotec continues to be one of the portfolio’s highest-conviction ideas, and we believe the company should benefit from secular tailwinds and deeper customer penetration as end market businesses choose to outsource research services more often. At the sector level, stock selection in consumer discretionary helped relative returns, with our holdings in Rivian Automotive, Li Auto, and DoorDash performing the best. On the other hand, holdings in financials hurt relative returns, especially our positions in Fiserv, Axis Bank, and HDFC Bank.
Performance Commentary - June 30, 2023 The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended June 30, 2023. Tesla was the largest relative detractor for the month. While shares of Tesla rose over the period, our position was a relative detractor due to our underweight versus the benchmark. Investors have been encouraged by recent developments for the company, including news that all versions of the firm’s cheapest Model 3 would be eligible for the full USD 7,500 electric vehicle tax credit, as well as the announcements that Ford, General Motors, and Rivian would each adopt Tesla’s North American charging plug standard. While we continue to believe Tesla is a highquality company that is massively disrupting the automotive industry, our underweight position reflects our understanding that there are some risks to the company’s growth outlook, especially in the short term. At the sector level, stock selection and sector allocation in consumer discretionary hurt relative returns, with our holdings in Tesla, MercadoLibre, and Prada performing the worst. On the other hand, holdings in financials helped relative returns, especially our positions in Fiserv, One 97 Communications, and NU Holdings..
Performance Commentary - May 31, 2023 The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended May 31, 2023. Advanced Micro Devices (AMD) was the largest relative contributor for the month. AMD rose as investor exuberance from semiconductor names following a blowout quarterly report from NVIDIA lifted the broader industry. During the period, Advanced Micro Devices released earnings results that disappointed investors, mainly due to weaker-than-expected PC and data center numbers, which also drove soft guidance for the second quarter. Although the earnings report initially pressured shares, the broader strength in semiconductors and an unconfirmed report that Microsoft would be teaming with AMD to create artificial intelligence (AI) chips to rival NVIDIA helped lift the stock. We continue to believe that Advanced Micro Devices is well positioned to garner significant share in its end markets as personal computing and data center businesses reaccelerate and the company benefits from AI demand. The firm’s acquisition of Xilinx, which formally closed in February 2023, provides longer-term growth optionality, in our view. At the sector level, stock selection in health care helped relative returns, with our holdings in Evotec, McKesson, and Eli Lilly performing the best. On the other hand, holdings in materials hurt relative returns, especially our positions in Nutrien, CF Industries, and Dsm-Firmenich.
Performance Commentary - April 30, 2023 The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended April 30, 2023. Our position in European contract research organization, Evotec, was the biggest relative detractor in the portfolio. In a reversal from March, shares of Evotec pulled back in April. Investors appeared to take profits after recent strength and were also cautious following news of a cyberattack that affected Evotec’s systems.
Evotec continues to be one of the portfolio’s highest-conviction ideas, and we believe the company should benefit from secular tailwinds and deeper customer penetration as endmarket businesses choose to outsource research services more often. At the sector level, stock selection in communication services hurt relative returns, with our holdings in Sea, ROBLOX, and Liberty Media Corporation performing the worst. On the other hand, holdings in financials helped relative returns, especially our positions in BDO Unibank, Fiserv, and Kotak Mahindra Bank.
Performance Commentary - March 31, 2023 The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended March 31, 2023. Our position in Charles Schwab was the biggest relative detractor in the portfolio. Shares of Charles Schwab sold off with the broader financials sector following the shuttering of several U.S. regional banks due to a combination of unrealized losses from investing in longer-duration
Treasuries and cryptocurrency and then a sudden run on those banks as depositors cashed out their accounts. While Charles Schwab has a more diversified structure than the affected banks, investors punished the company more than some other peers due to concerns about reduced fees and higher costs as clients switch to higher interest rate generating accounts in an event known as cash sorting. There was also continued overhang from the company’s disappointing earnings report in February. We still believe Charles Schwab is a premier franchise with an attractive and diversified business model; however, we recognize that the stock could be volatile in the coming months and reduced our position. At the sector level, stock selection and sector allocation in financials hurt relative returns, with our holdings in Charles Schwab, Huntington Bancshares, and Fifth Third Bancorp performing the worst. On the other hand, holdings in communication services helped relative returns, especially our positions in Sea and ROBLOX.
Performance Commentary - February 28, 2023 The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended February 28, 2023. Our position in Masan was the biggest relative detractor in the portfolio.
Masan is a Vietnamese consumer-oriented conglomerate. Shares plunged with the broader Vietnamese market, as sentiment worsened across the broader Southeast Asian region amid rising U.S.-China political tensions and a property market downturn in China that has tempered optimism about China’s growth outlook. We believe Masan will be a key beneficiary of Vietnam’s strong economic growth and favorable demographics given its dominant position in several consumer-focused categories and growing e-commerce capabilities. At the sector level, stock selection in consumer staples hurt relative returns, with our holdings in Masan and Estee Lauder performing the worst. On the other hand, holdings in financials helped relative returns, especially our positions in NU Holdings, Charles Schwab, and Bank Central Asia.
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