TGBLX
TRPrice Global Impact Equity-I
Global Growth with a Purpose
TRPrice Global Impact Equity-I (TGBLX) is designed for investors seeking long-term capital growth through a diversified portfolio of global equities. The fund invests at least 80% of its net assets in equity securities, with a significant portion allocated to international markets. This strategy allows investors to benefit from growth opportunities across various regions, including emerging markets, while maintaining a core focus on impactful investments. The fund’s commitment to investing in at least five countries, including the U.S., ensures a broad exposure to global economic trends and opportunities.
At A Glance
Executive Summary
TGBLX offers global equity exposure with a 0.79% expense ratio, focusing on growth and impact investing. Strong 1-year return of 24.67%.
Global diversification with at least 25% in foreign securities. Strong recent performance with 24.67% 1-year return. Managed by T. Rowe Price, a reputable firm.
Higher expense ratio compared to some peers. Limited yield at 0.33%. Potential volatility with a beta of 0.89.
Impressive Recent Performance
TGBLX has demonstrated strong performance over the past year, with a 1-year return of 24.67%, significantly outperforming its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25% over the same period. This impressive performance can be attributed to the fund’s strategic allocation in high-growth sectors such as technology and healthcare, which together comprise nearly 50% of the portfolio. The fund’s ability to capitalize on market trends and its focus on impactful investments have contributed to its superior returns, making it an attractive option for growth-oriented investors.
Strategic Sector Allocation
The fund’s sector allocation is heavily weighted towards technology (24.86%) and healthcare (25.15%), reflecting its focus on industries with strong growth potential. This strategic allocation positions TGBLX to benefit from technological advancements and innovations in healthcare, which are expected to drive future economic growth. Additionally, the fund’s exposure to industrials (20.95%) and financials (14.87%) provides a balanced approach, offering stability and diversification. This sector mix not only enhances the fund’s growth prospects but also mitigates risks associated with over-concentration in any single industry.
Risk Metrics and Volatility
TGBLX exhibits a relatively low beta of 0.89, indicating that it is less volatile than the overall market. This lower volatility is complemented by a strong alpha of 7.40%, suggesting that the fund has consistently outperformed its benchmark on a risk-adjusted basis. The fund’s Sharpe ratio of 0.57 further highlights its ability to deliver superior returns relative to its risk. Despite a maximum drawdown of -7.3%, the fund has shown resilience with a quick recovery period, making it a suitable choice for investors seeking growth with manageable risk.
Competitive Expense Ratio
With an expense ratio of 0.79%, TGBLX is competitively priced within the World Large Growth category. While some similar funds offer slightly lower expense ratios, TGBLX’s strong performance and strategic global allocation justify its cost. The fund’s expense ratio is a critical consideration for investors, as it directly impacts net returns. TGBLX’s ability to deliver high returns despite its expense ratio underscores the value it provides to investors seeking global growth opportunities.
Top Holdings and Market Cap Distribution
TGBLX’s top holdings include leading companies such as Eli Lilly and Co, Thermo Fisher Scientific Inc, and Linde PLC, which together represent a significant portion of the fund’s assets. These companies are leaders in their respective industries, contributing to the fund’s strong performance. The fund’s market cap distribution is well-balanced, with a focus on large (33.60%) and extra-large (30.48%) companies, providing stability and growth potential. This diversified approach ensures that the fund is well-positioned to capitalize on opportunities across different market segments.
Global Diversification and Asset Allocation
The fund’s asset allocation strategy emphasizes global diversification, with 41.83% of its assets invested in non-U.S. equities. This international exposure allows TGBLX to tap into growth opportunities outside the U.S., particularly in emerging markets. The fund’s allocation to U.S. equities (56.98%) ensures a strong domestic foundation, while its minimal cash position (1.19%) indicates a commitment to maintaining full market exposure. This balanced approach to asset allocation enhances the fund’s potential for long-term growth while managing risks associated with currency fluctuations and geopolitical events.
Conclusion: A Strong Choice for Growth Investors
TRPrice Global Impact Equity-I (TGBLX) stands out as a compelling option for investors seeking global growth with an emphasis on impactful investments. Its strong recent performance, strategic sector allocation, and competitive expense ratio make it an attractive choice for growth-oriented investors. While the fund’s yield is relatively low, its focus on capital appreciation and global diversification offers significant upside potential. TGBLX is particularly well-suited for investors looking to diversify their portfolios with international exposure and capitalize on growth opportunities in high-potential sectors.
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Futher Reading
https://finance.yahoo.com/quote/TGBLX/”>Yahoo: TRPrice Global Impact Equity-I
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