T. Rowe Price New Asia Fund
The T. Rowe Price New Asia Fund (PRASX) aims to grow capital via “investments in large and small companies located, or with primary operations, in Asia (excluding Japan).” The fund literature states that the primary emphasis will be on China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand, while other countries will include Pakistan, Sri Lanka, and Vietnam. The fund is managed by Anh Lu.
Though the fund manager takes into account the outlook for countries and sectors, bottom-up stock selection remains the core method of picking securities for the fund. Stock selection drives country selection.
As stated in the fund’s literature, financials were the single-largest sectoral holding of the fund and formed 29.5% of the portfolio as of January 2016. The information technology and consumer discretionary sectors, in that order, were a very close second and a distant third. The fund is not invested in the energy sector.
Stocks from China formed 26.8% of the fund’s January assets. China was the fund’s largest invested geography. Stocks from Hong Kong followed, making up a little over one-fifth of the fund’s assets. India, South Korea, and Taiwan rounded off the top five invested geographies.
Autohome (ATHM), Dr. Reddy’s Laboratories (RDY), KT (KT), POSCO (PKX), and Vipshop Holdings (VIPS) were among the fund’s 80 holdings as of February’s end 2016. As of January, the fund was managing assets worth $2.4 billion.
Fee and minimums
PRASX has existed since September 1990 and has an expense ratio of 0.94%. You require a minimum of $2,500 to invest in this fund, and the minimum limit for additional investment is $100. The fund charges a redemption fee of 2% of the amount redeemed on shares sold within 90 days.
In the next article, we’ll look at some of the key metrics of the fund’s performance in the one-year period ended February 2016.