International Mutual Funds: T. Rowe Price European Stock (PRESX)
Have you noticed something missing in the media? There is virtually no coverage of European sovereign debt issues that once dominated the airwaves. It is clear that problems are still present — but the worst might be over and opportunities certainly do exist in Europe.
So how is the average investor able to capitalize on this play?
T. Rowe Price European Stock (PRESX) is a well-managed fund that has a disciplined, focused approach. Manager Dean Tenerelli has been on this assignment since 2005 and runs a large-cap offering that currently owns 74 stocks. His growth-at a-reasonable-price approach has served investors well during the past year, with the fund up 26.6% for the past 52 weeks. During the past five years, the fund is up an annualized 19.1%, which lands it in the top 14% of mutual funds in its Morningstar category.
Financial stocks currently account for 25% of the portfolio, followed by consumer discretionary names at 20%. In terms of country diversification, stocks from the United Kingdom comprise 19% of PRESX, with 15% in Spanish companies and 14% in stocks domiciled in Switzerland. Recent top holdings included the following names: Amadeus (AMADF), Anheuser-Busch InBev (ABV), Bankia SA (BNKXF), Cie Financiere Richemont (CFRHF) and Gas Natural (GASNY).
Annual turnover is just 18% on this $1.5 billion fund that mixes “growth” and “value” stocks with great ease. Meanwhile, PRESX features a below-category-average expense ratio of 1%, or $100 annually for every $10,000 invested.