[private] We change the rating of the T. Rowe Price Frontier Markets Equity Fund to “On Hold” from “Approved” in our Global Master List. The decision applies to all share classes of the fund and it means that we suggest not to add money in the fund but rather maintain existing assets. This is not a recommendation to sell the fund.
Rationale: Analyst (Financial) turnover
Malik Asif, an analyst covering Frontier Financials for the T. Rowe Price Frontier Markets Equity Fund, has been appointed as an associate Portfolio Manager (PM) for the T. Rowe Global Emerging Markets Equity Strategy (GEM). In this role, Malik Asif will support Gonzalo Pangaro, PM and head of the Emerging Markets Franchise, on all aspects of the investment process. He also will become a member of the Emerging Markets Stock Investment Advisory Committee.
Malik Asif joined T.Rowe Price in 2012 as an analyst in the Emerging Markets team and has been responsible for covering EMEA and Frontier Financials with very strong investment results .He has been instrumental within the Frontier Markets team for idea generation and alpha generation particularly for banks.
We see this departure as a headwind for the Frontier Markets strategy given the importance of the Financial sector within the investment universe and current portfolio holdings. However, the Frontier franchise and interaction with the wider GEM capabilities both on equity and fixed income teams should smoothen the impact on the T. Rowe Price Frontier Markets Equity Fund. Moreover, as is typical in these transitions, Malik Asif will assume his new responsibilities over a period of months. In the meantime, T.Rowe Price is working on a robust and thoughtful transition plan for Malik’s existing research responsibilities.
We will reassess the rating of the fund once we have more details and clarity on this transition plan, information of which will be communicated in due course.[/private]