T. Rowe Price European StockPRESX

Morningstar Rating

Fund Research and Analysis

by Nadia Papagiannis, CFA

Although not perfect, T. Rowe Price European Stock remains a favorite.

As has the U.S. market, Europe's stock markets have rebounded sharply since early March 2009. Indeed, this fund has gained a healthy 76.8% between March 9 and Sept.14. That puts it behind its benchmark, the MSCI Europe Index by more than 100 basis points--in fact, the index has beaten almost all diversified Europe funds in this rally. Read more

Kudos

Manager's new approach differentiates the fund from its index and most Europe portfolios, particularly within more-diversified foreign-stock portfolios.

Relatively low expenses.

T. Rowe Price has recently hired more international analysts. Read more

Risks

Management is allowed to make relatively large bets versus the index. Read more

Strategy

Most funds that invest in Europe focus on large companies in developed markets, but manager Dean Tenerelli has taken a more all-cap approach here. He has also departed from the fund's previous practice of holding many stocks and prefers a more concentrated portfolio instead. Read more

Management

Dean Tenerelli has managed the fund since the October 2005 departure of James Seddon, who had been in the management team since 1990. Tenerelli did a brief prior stint here as comanager during late 2002 and early 2003 before moving on to other management assignments within T. Read more

Inside Scoop

Stable blue-chip stocks had long been this fund's staple, but a manager change in late 2005 brought significant changes. This is now an all-cap portfolio, with a sharper emphasis on fast-growing companies. Read more

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