SICAV
US Blue Chip Equity Fund
Seeking superior returns from high quality US companies.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 04-May-2015
Performance figures calculated in USD
Strategy
As economies continue to gradually reopen, we believe a sustained recovery will largely depend on controlling the spread of the coronavirus. The key question for markets may now be how long it will take for companies to regain enough earnings power to justify current valuation levels while compensating investors for the risk that an economic recovery might not progress as rapidly or as evenly as expected. Amid uncertainty, asset returns are likely to remain uneven across sectors, industries, and companies, creating the potential to add value with our strategic investing approach but requiring careful analysis to identify opportunities and manage risk.
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We recognize that it is difficult to forecast the pandemic, elections, and many economic factors with any degree of conviction. With this in mind, we think it is prudent to avoid companies that we feel require a robust economic backdrop or a meaningful increase in interest rates in order to justify ownership, as well as those we believe are prohibitively expensive with relative valuations that are difficult to justify. Instead, we will continue to emphasize high-quality growth companies that we believe can continue to generate durable earnings and free cash flow growth in most economic and regulatory environments. As always, we maintain a disciplined adherence to our rigorous investment process, which is rooted in bottom-up, fundamental research.
Investment Objective
To increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a diversified portfolio of stocks of large and medium sized “blue chip” companies in the United States.Investment Approach
- Identify high-quality companies with leading market positions in fertile growth fields. Integrate fundamental research — emphasize sustainable growth, not momentum growth.
- Focus on high-quality earnings, strong free cash flow growth, shareholder-oriented management, and rational competitive environments.
- Avoid overpaying for growth, while broadly diversifying portfolios, to manage portfolio risk.
Portfolio Construction
- Typically 100-140 stock portfolio
- Active position sizes typically range +/- 3.00% relative to S&P 500 Index
- Sector weights vary from 0.5X to 2.0X for primary sectors relative to S&P 500 Index
Performance (Class I)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 36.01% | 21.48% | 19.84% | 17.01% |
| Indicative Benchmark % | 14.49% | 11.62% | 13.46% | 10.53% |
| Excess Return % | 21.52% | 9.86% | 6.38% | 6.48% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 36.01% | 21.48% | 19.84% | 17.01% |
| Indicative Benchmark % | 14.49% | 11.62% | 13.46% | 10.53% |
| Excess Return % | 21.52% | 9.86% | 6.38% | 6.48% |
Recent Performance
| Month to DateData as of 28-Oct-2020 | Quarter to DateData as of 28-Oct-2020 | Year to DateData as of 28-Oct-2020 | 1 MonthData as of 30-Sep-2020 | 3 MonthsData as of 30-Sep-2020 | |
|---|---|---|---|---|---|
| Fund % | -0.38% | -0.38% | 23.69% | -4.49% | 13.61% |
| Indicative Benchmark % | -2.67% | -2.67% | 2.32% | -3.84% | 8.79% |
| Excess Return % | 2.29% | 2.29% | 21.37% | -0.65% | 4.82% |
Past performance is not a reliable indicator of future performance. Source for fund 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 (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures.
Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.
Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Effective 1 June 2019, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly.
Holdings
Total
Holdings
117
Largest Top Contributor^
Amazon.com
By 2.78%Largest Top Detractor^
Vertex Pharmaceuticals
By -0.42%Top Purchase
Alibaba Group Holding
4.97%Top Sale
Becton, Dickinson & Company
0.03%
Sectors
Total
Sectors
9
Top Contributor^
Information Technology
Net Contribution 1.10%Top Detractor^
Industrials & Business Services
Net Contribution -0.21%Largest Overweight
Information Technology
Largest Underweight
Consumer Staples
Team (As of 01-Oct-2020)
Larry J. Puglia is a portfolio manager in the U.S. Equity Division. Larry has been managing the US Large-Cap Core Growth Equity Strategy since 1993 and has had lead responsibility for all institutional accounts and other investment products within the strategy since 1997. He also is president of the Investment Advisory Committee of the US Large-Cap Core Growth Equity Strategy. Larry is a vice president of T. Rowe Price Group, Inc.
Larry’s investment experience began in 1989, and he has been with T. Rowe Price since 1990, beginning as an investment analyst, specializing in financial services stocks, in the U.S. Equity Division. His coverage included banking, consumer finance, brokerage, investment management, and diversified financial companies. Prior to T. Rowe Price, Larry was employed by Peat Marwick Main & Co. as a senior manager.
Larry earned a B.B.A., summa cum laude, in accounting from the University of Notre Dame and an M.B.A. in finance from the University of Virginia, Darden School of Business, where he was a Shermet Scholar. He also has earned the Chartered Financial Analyst® designation and is a certified public accountant.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Fund manager2015
since - Years at30
T. Rowe Price - Years investment31
experience
Craig Watson is a portfolio specialist in the U.S. Equity Division. He is a member of the U.S. Large-Cap Growth team, working closely with institutional clients, consultants, and prospects. Craig also is a vice president of T. Rowe Price Group, Inc., and a trustee on the T. Rowe Price Foundation, Inc.
Craig’s investment experience began in 1995, and he has been with T. Rowe Price since 2007, beginning in the U.S. Equity Division. Prior to this, Craig was employed by HSBC Securities as a senior vice president of global equity sales and by UBS as the director of institutional equity sales.
Craig earned a B.S., magna cum laude, in accounting from Hampton University and an M.B.A. from the University of Pennsylvania, The Wharton School. He is a certified public accountant.
FA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Years at13
T. Rowe Price - Years investment13
experience
Fee Schedule
| Share Class | Minimum Initial Investment and Holding Amount (USD) | Minimum Subsequent Investment (USD) | Minimum Redemption Amount (USD) | Sales Charge (up to) | Investment Management Fee (up to) | Ongoing Charges |
|---|---|---|---|---|---|---|
| Class A | $1,000 | $100 | $100 | 5.00% | 150 basis points | 1.59% |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 65 basis points | 0.69% |
| Class J | $10,000,000 | $0 | $0 | 0.00% | 0 basis points | 0.03% |
| Class Q | $1,000 | $100 | $100 | 0.00% | 65 basis points | 0.75% |
Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.
Larry J. Puglia is a portfolio manager in the U.S. Equity Division. Larry has been managing the US Large-Cap Core Growth Equity Strategy since 1993 and has had lead responsibility for all institutional accounts and other investment products within the strategy since 1997. He also is president of the Investment Advisory Committee of the US Large-Cap Core Growth Equity Strategy. Larry is a vice president of T. Rowe Price Group, Inc.