US Large Cap Growth Equity Fund

Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

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Overview

Strategy

Fund Summary

Deliver long-term returns from attractive U.S. companies with high-quality earnings streams, strong free cash flow growth and shareholder-oriented management.

31-Mar-2022 - Taymour Tamaddon, Investment Analyst,

We took advantage of indiscriminate selling in the growth space to add exposure to names that we believe offer aggressive growth potential or that have a proven history as high-quality compounders. We moved to reduce our bets in stocks with emerging headwinds that could suppress multiples in the near term.

Information Technology

Disruptive business models and technologies within the sector continue to present compelling investment opportunities. Secular demand for public cloud computing services continues to be a growth driver. We also continue to favor companies driven by the convergence of communications and computing, including internet software companies, and those that will benefit from broad global tailwinds in digital payments.

We purchased shares of enterprise software company Atlassian. We like the company's strong management team, impressive product portfolio, and large opportunity set. We also appreciate the long growth runway Atlassian has as it benefits from emerging software development trends, cloud migration, and a low-cost flywheel sales model. In our view, the stock carries significant upside potential given the recent pullback in growth-oriented names.
We bought shares of Fiserv on relative weakness. The stock continued to suffer from negative sentiment regarding the potential disruption of the fintech space by new competitors. We are optimistic about Fiserv's growth potential as mobile banking penetration continues to increase and as the company's point-of-sale platform, Clover, expands as a share of revenue.
We sold shares of software-as-a-service leader Splunk. While we still see Splunk as a category-defining company in the machine data collection and analysis space, we recognize the potential for a protracted executive search and transition timeline following the CEO's unexpected departure. The company is also in the midst of a challenging transition from on-premise to cloud-based services.

Communication Services

Within the sector, we are focused on companies that are benefiting from the shift of advertising spending to digital and social media channels. We also favor wireless communication services firms with strong company-specific growth prospects and competitive advantages or differentiated business models.

We sold shares of Meta Platforms in light of emerging long-term risks to the business, including rising competitive threats and shifting consumer social media behavior. The company also continues to face privacy headwinds from app tracking transparency initiatives that have hurt industrywide advertising revenues. While we have confidence in the company's mitigation efforts, Meta's advanced, hyper-optimized advertising solutions mean that the company faces a deeper reset than others as it designs workarounds to restore the signal loss. Meta is one of two leading platforms that we expect to benefit from a multi-decade transition from offline to online advertising, and it offers investors a rare combination of scale, growth, and profitability at an attractive valuation with multiple catalysts that include a collection of under-monetized surfaces and social commerce initiatives.

Health Care

We remain focused on finding opportunities to take advantage of lasting trends such as managed care industry consolidation, innovations in medical equipment, and robotic technology. In therapeutics, our emphasis is on select companies that have strong fundamentals and the potential to bring additional new drugs to market in areas with large, unmet clinical needs.

We sold shares of hospital operator HCA Healthcare in order to fund purchases of attractively valued names elsewhere in the portfolio. In our view, the stock's risk/reward profile is less favorable coming off of an exceptional 2021 as coronavirus tailwinds begin to fade. Over the long term, we continue to have a favorable view of HCA due to its excellent management team, strategic long-term capital deployment strategy, and attractive geographic mix.

Team

Taymour Tamaddon,
Investment Analyst

Taymour Tamaddon is the portfolio manager of the US Large-Cap Growth Equity Strategy in the U.S. Equity Division. He is a vice president and a member of the Investment Advisory Committees for the Health Sciences Equity, Global Growth Equity, US Growth Stock Equity, and Global Focused Growth Equity Strategies. In addition, he is a member of the firm’s Equity Steering Committee.

Investment Analyst since

2018

Years at T. Rowe Price

Years investment experience

Julian Cook,
Portfolio Specialist

Julian Cook is a portfolio specialist in the Equity Division covering the US Large-Cap Growth and Blue Chip Growth Equity Strategies.

Portfolio Specialist since

2018

Years at T. Rowe Price

Years investment experience

Indicative Benchmark Data Source: Russell. Frank Russell Company (“Russell”) is the source and owner of the Russell Index data contained or reflected in these materials and all trademarks and copyrights related thereto. Russell® is a registered trademark of Russell. Russell is not responsible for the formatting or configuration of this materials or for any inaccuracy in T. Rowe Price Associates’ presentation thereof.

Source for performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges, taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures.

Past performance is not a reliable indicator of future performance.

Benchmark: Investors may use the benchmark to compare the fund’s performance. The benchmark has been selected because it is similar to the investment universe used by the investment manager and therefore acts as an appropriate comparator. The investment manager is not constrained by any country, sector and/or individual security weightings relative to the benchmark and has complete freedom to invest in securities that do not form part of the benchmark.

IA Sector: Many UK funds are grouped into sectors by the Investment Association (the “IA”) (the trade body that represents UK investment managers), to help investors to compare funds with broadly similar characteristics. Investors may compare the fund against the performance of the North America sector. This sector represents the average performance of certain funds that invest at least 80% of their assets in North American shares. It can therefore serve as a method of comparing the fund’s performance with other funds that have broadly similar characteristics. The fund is not constrained to or managed in line with this sector. Source for IA Sector Data: © Morningstar. All Rights Reserved.

Daily performance data is based on the latest available NAV.

The Funds are sub-funds of the T. Rowe Price Funds OEIC, an investment company with variable capital incorporated in England and Wales which is registered with the UK Financial Conduct Authority and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the articles of incorporation and the annual and semi-annual reports (together "Fund Documents"). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors and via www.troweprice.com.

Please note that the Fund typically has a risk of high volatility.

The specific securities identified and described in this report do not represent all of the securities purchased, sold, or recommended for the OEIC sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

Attribution Data: Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.

Sources: Copyright © 2021 FactSet Research Systems Inc. All rights reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P make changes to the GICS structure. The last change occurred on September 28, 2018. T. Rowe Price will adhere to all future updates to GICS for prospective reporting.

The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc, ("MSCI") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and is licensed for use by [Licensee]. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or impIied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any or such standard or classification, Without limiting any or the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.

¹ Please note that the Ongoing Charges figure is inclusive of the Management Charge and is charged per annum.

Information Technology

Communication Services

Health Care

Risks

Typical Investor

Commentary for