Investments in emerging markets are subject to abrupt and severe price declines. The economic and political structures of developing nations, in most cases, do not compare favorably with the U.S. or other developed countries in terms of wealth and stability, and their financial markets often lack liquidity. Because of this concentration in rapidly developing economies, the fund involves a high degree of risk. Share prices are subject to market risk, as well as risks associated with unfavorable currency exchange rates and political or economic uncertainty abroad. In addition, because the fund has nondiversified status, it can invest more of its assets in a smaller number of companies than diversified funds. As a result, poor performance by a single large holding of the fund would adversely affect its performance more than if the fund were invested in a larger number of companies.
Nestlé Foods Nigeria represented 1.87% Nigerian Breweries (Heineken) 1.99%, and Unilever Ghana 0.25% of the Africa & Middle East Fund as of 9/30/12. The following companies were not held by the T. Rowe Price Africa & Middle East Fund as of 9/30/12: Colgate and Diageo. The fund's holdings are historical and subject to change. This material should not be deemed a recommendation to buy or sell any of the securities mentioned.
Oliver Bell is a vice president of T. Rowe Price Group, Inc., and lead portfolio manager and chairman of the Investment Advisory Committee for the Africa & Middle East Fund. Based in London, Bell holds the Investment Management Certificate (IMC) and a bachelor of science degree from Exeter University.