T. Rowe Price Global Value Equity: July 2026 fund update

• Sebastien Mallet has over 20 years’ investment experience and launched this fund in 2012

• He uses a clear, disciplined investment approach

• Over the long term the fund has performed well, particularly when the value style of investing has been in favour

• This fund features on our Wealth Shortlist of funds chosen by our analysts for their long-term performance potential

How it fits in a portfolio

The T. Rowe Price Global Value Equity fund aims to deliver long-term growth by investing in companies across the globe. It uses a value style, which means investing in companies where the manager believes that the share price doesn’t reflect a company’s long-term potential, perhaps because of some short-term uncertainty.

In addition to ‘deep value’ companies, which can be lower quality and more volatile, the managers invest in higher-quality businesses that are temporarily undervalued. This broader and flexible approach creates a more balanced fund.

This style of investing can reward patient investors, and this fund could work well alongside a more growth-focused fund or add diversification to a global investment portfolio.

Manager

Sebastien Mallet is a Vice President at T. Rowe Price Group and has over 25 years of investment experience. He began his career in 1997 as a financial analyst at France Telecom, before moving to Credit Suisse First Boston as a telecom banker.

Mallet joined T. Rowe Price in 2005 as an analyst on the firm’s international mid-cap strategy. He began managing the Global Value Equity fund in 2012. There are few global fund managers with such a long and consistent track record in value investing.

Marta Yago is Associate Portfolio Manager on the fund. She joined T. Rowe Price in 2007 within the European Equity team and was promoted to her current role in October 2023. Prior to that, she worked at Citigroup in Investment Banking. Although Yago has valuable experience, our conviction in the fund is mainly due to Mallet’s involvement given his length of experience in global value investing.

Mallet and Yago have the support of T. Rowe Price’s extensive global research team, which includes other value-focused managers and over 150 research professionals based across 11 offices worldwide.

Process

Mallet has used a consistent investment process for many years. He believes that stock markets often overreact to uncertainty, which can cause share prices to move away from a company’s true value. If his assessment is correct and the company improves over time, its share price could rise as the market re-evaluates it.

The research team plays a key role in narrowing down the investment universe of around 4,000 companies and determining if a company’s share price is mispriced and undervalued.

Using the team’s research and ideas, Mallet builds a fund of 80 to 100 companies. He works closely with the analysts to understand the risks and rewards of each investment and assesses whether a company is higher quality and defensive or deeper value and potentially riskier. By blending both types, Mallet believes that the fund is better positioned to be less volatile and perform well across a range of market conditions.

Mallet usually invests in the higher-quality companies for up to three years for their true value to be reflected in the share price. Deeper-value companies are typically held for less time. Once a company reaches what Mallet believes is its true value, he’ll either sell or reassess if there’s further potential.

52.0% of the fund currently invests in the US, although this is less than the amount in its global benchmark. Other developed markets like Japan and France feature in the fund, and Mallet can invest up to 10% of the fund in higher-risk emerging markets. The fund also has the flexibility to invest in smaller companies, which can increase return potential but add risk.

From a sector perspective, the fund invests the most in technology companies, which make up 23.3% of the fund. Investments in financials and health care companies are the next largest parts of the fund.

Mallet is active in finding new investments for the fund and selling those where he believes the company has reached its true valuation, so tends to make plenty of changes. Recent additions include US food services business Aramark, semiconductor company Qualcomm, and Italian energy firm Enel. Investments sold from the fund include Canadian mining company Pan American Silver and Chinese technology giant Tencent. Mallet also sold an investment in sports company Nike.

The managers can use derivatives to help manage the fund, which increases risk. However, we don’t expect them to be used often.

Culture

T. Rowe Price is a well-established asset management firm with offices all over the world. The company’s history dates to 1937, when it primarily focused on investing in US equities. Now, it also covers other parts of the market including fixed income, multi-asset, and alternatives.

We view Mallet as the key manager behind this fund, and currently most of our conviction lies with him. But we take assurances from the fact that he has a good team around him as well as a robust, structured investment process.

ESG Integration

T. Rowe Price believes that Environmental, Social, and Governance (ESG) issues have the potential to impact investment risk and return. That’s why analysts integrate material ESG factors into their investment analysis, alongside other factors like valuation, financials, industry trends, and macroeconomics. Fund managers use this analysis to help them balance risk within their funds.

Managers and analysts are supported by specialist ESG teams which produce ESG research and build proprietary ESG tools, including the Responsible Investing Indicator Model (RIIM). The RIIM provides a uniform ESG due diligence process which is applied across the firm, allowing analysts to discuss how an investment is performing against ESG metrics as well as other businesses.

Companies supporting countries carrying out genocide or other crimes against humanity are excluded across all T. Rowe Price funds.

The firm produces an annual ESG report, which explains its approach and provides voting and engagement case studies. Votes are exercised in alignment with a robust set of voting guidelines, and full proxy voting histories are publicly available on the company’s website, complete with rationales for votes against management.

This fund isn’t focused on sustainability, but the managers integrate ESG analysis into their process and work closely with the responsible investing team to understand long-term risks to companies.

Cost

This fund is available at an annual ongoing fund charge of 0.64%. The HL platform fee of up to 0.35% per year also applies, apart from in the Junior ISA, where there is no platform fee.

Performance

The fund has returned 454.66%*^ since launch in November 2012, which is ahead of the 319.97% returns of the average fund in the IA Global sector. As always, past performance isn’t a guide to the future.

Like many global value funds, this one hasn’t performed as well as its benchmark, the MSCI World Index, which returned 501.28% over this time. The value investment style has been out of favour for most of this period. Funds with a growth focus, which typically have more invested in US and technology companies, have done better. That said, our analysis shows that this fund has performed better than many other global value funds as well as the MSCI World Value Index.

The fund performed strongly over the 12 months to the end of June 2026. Returns of 43.48% were ahead of both the MSCI World benchmark and average peer, which returned 25.77% and 21.27%, respectively.

Investments in technology companies were the largest contributor to performance. Share prices of hardware manufacturers SanDisk, Micron, and Intel all rose sharply as spending on artificial intelligence (AI) infrastructure increased demand for their products. Korean company Samsung also benefited from this trend.

Not all of the fund’s investments worked well, though. Detractors to performance included waste management business GFL Environmental and communication services T-Mobile US. Software company Docusign also detracted from performance; that investment has since been sold.