A diversified strategy focusing on companies that offer both attractive yield and the ability to grow dividends over time

Yoichiro Kai

Portfolio Manager

Why T. Rowe Price Global Equity Dividend Strategy?

A truly global strategy investing across sectors and markets – developed and emerging – that are often overlooked by other dividend-focused portfolios.

In our view, dividends do not compensate for weak fundamentals, so we focus on identifying those rare companies that have the strong fundamentals with potential to grow both free cash flow and dividends over time. We incorporate macroeconomic and local market factors into our stock selection decisions leverage our strong sector and regional research expertise to identify the most attractive opportunities globally, pairing cyclical and defensive dividend stocks to pursue both yield and performance.

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We are unwavering in our focus on total return and will not invest in lower-conviction or lower-quality stocks for the sake of a solid dividend.

Yoichiro Kai,
Portfolio Manager

3 reasons to consider this strategy

Our Global Equity Dividend strategy seeks to uncover high yielding investment opportunities underpinned by the strong fundamentals needed to support long-term growth.

1

Focus on both yield and return

We seek to build a portfolio that can benefit from the powerful compounding effect of dividends over time. We maintain a high dividend yield objective but by placing importance on both income and capital appreciation, we believe we can achieve a similar, if not higher, dividend yield than our benchmark while also driving a higher total return.

2

Emphasis on fundamentals

Looking beyond dividend yield is paramount to stock selection. We search for companies with the ability to generate strong free cash flow and high return on capitalto help gauge a company’s, which underpin their ability to maintain and grow dividends over time. We believe this approach can drive durable and superior risk/reward through different market conditions.

3

Access diverse alpha sources

The significant sector and regional expertise of our global research platform provides coverage of high dividend sectors and markets across a wide universe of countries and market capitalisations in both developed and emerging markets. This enables us to construct a diversified portfolio to capitalise on what we believe are the most attractive opportunities at any point in time.

Key Risks

The following risks are materially relevant to the portfolio:

Currency risk – changes in currency exchange rates could reduce investment gains or increase investment losses.

Emerging markets risk – emerging markets are less established than developed markets and therefore involve higher risks.

Small and mid-cap risk – stocks of small and mid-size companies can be more volatile than stocks of larger companies.

Style risk – different investment styles typically go in and out of favour depending on market conditions and investor sentiment.

General Portfolio Risks

Capital risk – the value of your investment will vary and is not guaranteed. It will be affected by changes in the exchange rate between the base currency of the portfolio and the currency in which you subscribed, if different.

Equity risk – in general, equities involve higher risks than bonds or money market instruments.

ESG and Sustainability risk – may result in a material negative impact on the value of an investment and performance of the portfolio.

Geographic concentration risk – to the extent that a portfolio invests a large portion of its assets in a particular geographic area, its performance will be more strongly affected by events within that area.

Hedging risk – a portfolio’s attempts to reduce or eliminate certain risks through hedging may not work as intended.

Investment portfolio risk – investing in portfolios involves certain risks an investor would not face if investing in markets directly.

Management risk – the investment manager or its designees may at times find their obligations to a portfolio to be in conflict with their obligations to other investment portfolios they manage (although in such cases, all portfolios will be dealt with equitably).

Operational risk – operational failures could lead to disruptions of portfolio operations or financial losses.

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Yoichiro Kai

Portfolio Manager

Yoichiro Kai is a portfolio manager for the T. Rowe Price Global Equity Dividend Strategy.

Yoichiro’s investment experience began in 1999 , and he has been with T. Rowe Price since 2009, beginning as a research analyst covering financials and property sector stocks within Asia and Japan. Prior to this, he held analyst and sector portfolio manager roles at Fidelity Investments, and before that, he was an analyst and portfolio manager at Citadel Investments.

Yochiro earned a B.A. in policy management from Keio University in Tokyo. He also has earned the Chartered Member of the Securities Analysts Association of Japan designation.

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