Past performance is not a reliable indicator of future performance.
Strategy
US Large-Cap Equity Income
The US Large-Cap Equity Income Composite seeks substantial dividend income, primarily through investment in dividend-paying common stocks of established companies. The strategy emphasizes companies that appear to be temporarily undervalued by various measures. Capital appreciation is a secondary objective for this strategy.
3YR Return Annualised (Net)
(View Total Returns)
Tracking Error
(5 Years)
9.78%
3.28%
1YR Return (Net)
(View Total Returns)
Information Ratio
(5 Years)
42.00%
-0.19
Inception Date 31-Dec-1989
Performance figures calculated in USD
Strategy
Investment Approach
- Focus on relative value relationships.
- Employ fundamental research to identify companies with improving financial outlook.
- Integrate qualitative inputs to assess potential for improved investor perception.
- Verify relative valuation anomalies through quantitative analysis.
- Balance valuation analysis and qualitative assessment.
Portfolio Construction
- Bottom-up fundamental approach
- Typically 100-125 stock portfolio
- Individual positions will typically range from 0.50% to 3.00%-average position size of 0.75% to 1.50%
- Sector weights typically range from 0.5X to 2.0X, the primary value sectors of the S&P 500 Index
- Reserves will typically range from 1% to 5%
- Dividend yield is typically above average relative to the S&P 500 Index
John D. Linehan is the portfolio manager for the U.S. Large Cap Equity Income Strategy, U.S. Select Value Strategy and co-portfolio manager for the US Large-Cap Value Equity Strategy in the U.S. Equity Division. In addition, he is the chief investment officer of Equity and a member of the firm's U.S. Equity Steering and Equity Brokerage and Trading Control Committees. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.