Not all Australian equity
funds are created equal
Our Team Takes A Truly
Active Approach
The T. Rowe Price Australian Equity Fund is an
actively managed all cap Australian equity fund
that uses a quality growth investment approach
that focuses on generating consistent risk-adjusted
returns for investors. It is designed for investors
who want a solid foundation for their Australian
equity portfolio that is more active than your typical
Australian equity fund.
www.troweprice.com.au/australianequities
Are your clients getting the active
Management they’re paying for?
Many actively managed all cap Australian
equity funds act more like closet index funds.
This can make the job of finding a suitable
active core fund quite challenging. If your
clients are paying active fees, they deserve a
manager who works hard to find promising
investments others may overlook.
As a major global investment manager with
more than 75 years of experience in active
management, T. Rowe Price has perfected the
mix of research and collaboration that’s needed
to create real value from active management.
WHAT GIVES US AN EDGE IN ACTIVE MANAGEMENT?
Global Edge:
We believe proprietary, fundamental research is
the key driver of value-added active management.
Very few fund managers can rival the depth and
breadth of our research resources. Our experienced local team is supported by insights and
information from our equity team of 118 research
analysts, 71 portfolio managers, 5 quantitative
analysts and 22 equity traders.*
Effective collaboration lets us access knowledge
and insights from our globally integrat­ed research
platform in an unparalleled way.
To us, collaboration is so essential that we don’t
leave it to chance. We actively cultivate it by creat­ing
multiple communication channels and linking the
compensation of our investment professionals with
their collaboration across the firm.
Robust and enviable
investment process:
As quality growth investors, we seek out strong
companies that the market may have undervalued.
We use a rigorous assessment process that takes
into account factors such as business fundamentals and earnings growth for each company.
Our disciplined, research-based investment
process lets us generate unique insights with
conviction. This results in a relatively concentrated
portfolio of 30–50 stocks (typically 35) that represent our best ideas.
Highly experienced team:
Randal Jenneke leads a seasoned team that has
invested through many different business cycles and
market events. The team’s diverse backgrounds and
market knowledge help them search for opportunities across all sectors.
Actively Investing In Quality Growth
Companies Is What We Do Best
The combination of our quality growth approach, team and
real-time access to global research allows us to get better
outcomes for our investors.
We look for opportunities
in quality growth companies
The fund invests in quality growth companies
as investing in these companies has shown to
provide higher returns with lower volatility.
To us, quality growth companies are those
that are attractively priced, have strong competitive positions, operate in growing industries and
generate superior returns and compound value
at faster rates.
We look to identify high quality stocks using
our proprietary Business Quality Assessment
Framework. This framework enables us to rank
the quality of companies in the Australian market
from highest to lowest.
Our business quality assessment
The T. Rowe Price proprietary Business Quality
Assessment Framework groups companies into
six categories based on return on capital and
future growth prospects.
Category
A
B
C
D
E
F
Quality Assessment
Highest quality—
generate superior
returns with above
market earnings
growth
Considered
for investment
Generate superior
returns with market
earnings growth
Generate superior
returns with submarket earnings
growth
Generate returns
in line with cost of
capital returns with
positive earnings
growth
Generate inferior
returns with market or
lower earnings growth
Lowest quality—
generate inferior rates
of returns with above
market earnings
growth
www.troweprice.com.au/australianequities
Not
considered
for investment
We access globally integrated
research in real time
We have the right mix of
people, skills and experience
Our globally integrated research platform gives us
access to the knowledge and insights of a global
team of 216 equity professionals, including 60
portfolios managers, based in Baltimore, London,
Hong Kong, Singapore and Sydney.*
The fund is managed by a dedicated and locally
based investment team of investment professionals
with an average of 14 years’ investment experience.
Lead portfolio manager, Randall Jenneke, has
22 years’ experience, most recently at Schroder
Investment Management where he worked as a
senior portfolio manager of Australian equities
before joining T. Rowe Price in 2010.
Global research has become increasingly
important for Australian equity funds, given
that a large percentage of profits generated by
Australian companies is sourced from overseas. It
allows us to gain unique insights when analyzing
the offshore operations of Australian businesses,
as well as identifying global trends that could
impact local Australian companies.
Each team member has been carefully selected
based on their cultural fit and ability to bring diverse
perspectives to the team. Team members come
from a range of diverse backgrounds, such as
geology, engineering and accounting. This ensures
that the team thinks differently but works together
well, identifying investment opportunities that others
may miss.
FUND AT A GLANCE
APIR:
ETL0328AU
Cash range
0%–10%
Investment style
Quality growth
Turnover range
20%–40% p.a.
Objective
To outperform
the S&P/ASX200
accumulation index
by 3% p.a. over rolling
3–5 year periods
Sector bias
None
Buy/sell spread
Buy +0.10% /
Sell -0.10%
Size bias
None
Sector limits
None
Stock limits
+/- 5% relative to
benchmark
Benchmark
S&P/ASX 200
Accumulation Index
Investment universe
Australian and
New Zealand
listed stocks
Recommended minimum
investment time frame
5 years
Estimated
management cost
0.90% p.a.
Risk level
Moderate
Minimum initial direct
investment
$500,000*
Number of stocks
30–50 (typically 35)
Minimum additional
direct investment
$100,000*
*If investing directly with T. Rowe Price. There is no minimum investment
amount for those investing via an investor directed platform service (IDPS).
Australian equity research
and portfolio management team
Investment Experience
Qualifications
Sector
Experience
Current Sector
Coverage
Investment Experience
Qualifications
Sector
Experience
Current Sector
Coverage
Randal jenneke
Portfolio Manager
and Head of
Australian Equities
Viral patel
Head of Australian
Research
PAUL O’SULLIVAN
Research Analyst
22 years
14 years
20 years
B.Ec.,
Macquaire University
M.B.A., Columbia
Business School
B.Bus., University of
Technology, Sydney
Consumer Discretionary,
Materials, Financials, Industrials and Business Services,
Consumer Staples, Health
Care, Financials, Information
Technology
Materials, Industrials
and Business Services,
Property Trusts
Financials, Property
Trusts, Utilities, Telcommunications, Information
Technology, Industrials and
Business Services
Industrials and Business
Services, Consumer
Discretionary
Consumer Staples,
Industrials and Business
Services, Property Trusts
Financials, Health Care,
Consumer Discretionary,
Information Technology
TOM SHELMERDINE
Research Analyst
Ryan MArtyn
Research Analyst
Richard Nelson
Equity Trader
12 years
8 years
28 Years
B.Com./B.Sc.,
University of Melbourne
B.Com./B.Eng.,
University of Sydney
M.AF., Macquarie
University
Energy, Materials, Utilities,
Industrials and Business
Services, Consumer
Discretionary, Consumer
Technology
Energy, Materials
N/A
Materials
Energy, Materials,
Utilities, Industrials
and Business Services,
Telcommunications
N/A
www.troweprice.com.au/australianequities
How to invest
Investors can either invest via platforms or directly by completing the application form attached
to the Product Disclosure Statement (PDS). A copy of the PDS can be downloaded at
www.troweprice.com.au/australianequities.
Contact us
To find out more about the T. Rowe Price Australian Equity Fund, contact us directly:
Darren Hall
Jared Watson
National Manager, Australia and New Zealand
Tel
02 8667 5704
E-mail [email protected]
Business Development Associate
Tel
02 8667 5703
E-mail [email protected]
Heath Branigan
Relationship Manager, Australia
Tel
02 8667 5705
E-mail [email protected]
Important Information
*Information correct as of June 30, 2014.
This document, including any statements, information, data and content contained therein and any materials, information, images,
links, sounds, graphics or video provided in conjunction with this document (collectively “Materials”) are being furnished by T. Rowe
Price for your general informational purposes only. The Materials are not intended for use by persons in jurisdictions which prohibit
or restrict the distribution of the Materials and in certain countries these Materials are only provided upon specific request. It is not
intended for distribution to retail investors in any jurisdiction. Under no circumstances should the Materials, in whole or in part, be
copied, redistributed or shown to any person without consent from T. Rowe Price. The Materials do not constitute a distribution,
an offer, an invitation, recommendation or solicitation to sell or buy any securities in any jurisdiction. The Materials have not been
reviewed by any regulatory authority in any jurisdiction. The Materials do not constitute investment advice and should not be relied
upon. Investors should seek independent legal and financial advice, including advice as to tax consequences, before making any
investment decision.
Equity Trustees Limited (“EQT”) (ABN 46 004 031 298/AFSL 240975) and T. Rowe Price International Ltd (“TRPIL”) (ABN 84 104 852
191) are, respectively, the responsible entity and investment manager of the T. Rowe Price Australian Unit Trusts. TRPIL is exempt from
the requirement to hold an Australian financial services license in respect of the financial services it provides in Australia and is regulated by the Financial Conduct Authority under UK laws, which differ from Australian laws. For Wholesale Clients only. A person should
consider the PDS in deciding whether to acquire or continue to hold the Fund.
T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered
trademarks of T. Rowe Price Group, Inc. in the United States, European Union, and other countries. This material is intended for use only
in select countries.
August 2014
www.troweprice.com.au/australianequities
05698-2568
2014-GL-609