T. Rowe Price Japanese Equity Ih EUR

Analyst Report
Morningstar's Take
|13/12/2018

by Ronald van Genderen
*  This rating and report were issued for a different share class of this fund. The performance and fee structure of this class may vary from that referenced.


T. Rowe Price Japanese Equity merits a Morningstar Analyst Rating of Bronze, thanks to its personnel, a decent process, and a solid track record so far.Lead portfolio manager Archibald Ciganer took over management of this fund in December 2013. Although this is his first stint as portfolio manager, he has solid experience in Japanese equities. His six years as an analyst covering Japanese stocks within T. Rowe Price’s global equity research team is particularly beneficial to his current role. His most important support comes from the global equity research team, which includes seven analysts who cover Japanese equities. Most of these analysts bring a lot of experience to the table, but turnover on the team has been higher than normal.Ciganer applies a research-driven, bottom-up approach that looks for companies that can deliver growth in shareholder value but where this growth is mispriced by the market. The largest part of the portfolio will consist of companies that can achieve and sustain above-average, long-term earnings growth and cash flow through the economic cycle, while the remaining part will contain companies undergoing structural change. His primary source of his investment ideas is the Japanese equity team. This is a decent investment process without any major flaws, yet without a proven edge.Ciganer has made a number of changes to the portfolio since he took over at the end of 2013, bringing it in line with his investment approach. His increased focus on quality and growth has seen the fund move from the blend column of the Morningstar Style Box towards growth. He has also increased the fund’s active share, including a shift further down the market-cap scale, and reduced the number of holdings, which we value as it better expresses his convictions.The fund has performed well under Ciganer’s management. It has outperformed both the Japan-stock Morningstar Category average and its Topix index benchmark, to the end of November 2018. Outperformance is primarily explained by strong stock selection, mainly in the fund’s largest sectors: consumer cyclical and industrial.Finally, this fund is reasonably priced.

Morningstar Analyst Rating™
To find out how Morningstar rates a fund click here.
Portfolio RoleThis fund can be part of a well-diversified portfolio and offers diversified exposure to the Japanese equity market.
Morningstar Pillars
PeoplePositive
Solid experience in Japan.
ParentPositive
A top asset manager.
ProcessNeutral
No major flaws, yet no proven edge.
PerformancePositive
Good risk-adjusted returns driven by strong stock selection.
PriceNeutral
Reasonably priced.
Morningstar Analyst RatingMorningstar evaluates funds based on five key pillars, which it's analysts believe lead to funds that are most likely to outperform over the long term on a risk-adjusted basis.
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A fim de prover consistência para todos os relatórios fornecidos por diferentes Asset Managers, os data points calculados apresentados são gerados usando uma metodologia de cálculo proprietária da Morningstar, que pode ser conferida com mais detalhes em(https://www.morningstar.com/research/signature)