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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

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T. Rowe Price

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SICAV

US Large Cap Growth Equity Fund

Seeking to identify investments with the potential to deliver double-digit earnings growth.

ISIN LU0174119775 WKN A0BMAA

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

22.76%
$3.3b

1YR Return
(View Total Returns)

Manager Tenure

38.92%
4yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.05
6.33%

Inception Date 31-Jul-2003

Performance figures calculated in USD

Other Literature

31-Dec-2020 - Taymour Tamaddon, Portfolio Manager,
Rapid progress on vaccines against COVID-19 is clearly the most positive sign for the year ahead. As the pandemic hopefully recedes and economies reopen, a broader economic recovery is likely to benefit many of the sectors that were most damaged by the virus. Looking ahead, it will be critical to seek out companies that appear well positioned to emerge from the pandemic with lasting competitive advantages, while avoiding firms that face longer-term secular challenges.
Taymour Tamaddon, CFA
Taymour Tamaddon, CFA, Lead Portfolio Manager

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 Multi-Cap Growth Equity, US Growth Stock Equity, US Large-Cap Core Growth Equity, and US Capital Appreciation Strategies. He also is a vice president of the T. Rowe Price Institutional International Funds, Inc., and the T. Rowe Price International Funds, Inc. Taymour is a vice president of T. Rowe Price Group, Inc.

 

Strategy

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 from large capitalization companies in the United States that have the potential for above-average and sustainable rates of earnings growth.

Investment Approach

  • Scrutinize both company and industry- level fundamentals to identify companies with characteristics that support sustainable double-digit earnings growth.
  • Focus on high-quality earnings, strong free cash flow growth, shareholder-oriented management, and rational competitive environments.
  • Exploit differences between secular and cyclical trends.
  • Limit portfolio holdings to the most attractive growth opportunities across industries.

Portfolio Construction

  • Typically 60-75 stock portfolio
  • Individual position sizes typically range +/- 1.00% to 4.00% relative to Russell 1000 Growth Index
  • Sector weights will vary from 0.5X to 3.0X for primary sectors relative to Russell 1000 Growth Index

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 38.92% 22.76% 20.83% 17.85% 25.91%
Indicative Benchmark % 38.08% 22.56% 20.53% 16.70% 24.30%
Excess Return % 0.84% 0.20% 0.30% 1.15% 1.61%

Inception Date 31-Jul-2003

Manager Inception Date 31-Dec-2016

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of 31-Dec-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 38.92% 22.76% 20.83% 17.85%
Indicative Benchmark % 38.08% 22.56% 20.53% 16.70%
Excess Return % 0.84% 0.20% 0.30% 1.15%

Inception Date 31-Jul-2003

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of 31-Dec-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 14-Jan-2021 Quarter to DateData as of 14-Jan-2021 Year to DateData as of 14-Jan-2021 1 MonthData as of 31-Dec-2020 3 MonthsData as of 31-Dec-2020
Fund % 0.77% 0.77% 0.77% 3.61% 11.94%
Indicative Benchmark % -0.65% -0.65% -0.65% 4.58% 11.32%
Excess Return % 1.42% 1.42% 1.42% -0.97% 0.62%

Inception Date 31-Jul-2003

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Performance figures calculated in USD

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.

31-Dec-2020 - Taymour Tamaddon, Portfolio Manager,
U.S. stocks rose in December, with most indices hitting all-time highs at various stages of the month. Within the portfolio, adverse stock selection in consumer discretionary held back relative returns. For example, shares of Alibaba Group Holding fell after China’s antitrust regulator commenced an investigation against the company and its digital finance subsidiary, Ant Group, over allegations of monopolistic practices. Despite this, over the long term, we believe that Alibaba has an asset-light business model, which we think is scalable, self-enhancing, and highly cash flow generative. Our stock choices in the information technology (IT) sector also weighed. Shares of Splunk fell after the company announced underwhelming quarterly earnings that were below estimates. On the positive side, our underweight position in industrials and business services boosted relative results. Within the sector, a lack of exposure to the aerospace and defense industry added the most value. Our more cautious stance towards consumer staples was also beneficial as the defensive haven fell out of favour due in part to the early rollout of the COVID-19 vaccine, which is expected to reduce stay-at-home behaviour.

Holdings

Total
Holdings
63
Largest Holding Amazon.com 9.48% Was (30-Sep-2020) 9.55%
Other View Full Holdings Quarterly data as of  31-Dec-2020
Top 10 Holdings 49.75% View Top 10 Holdings Monthly data as of  31-Dec-2020

Largest Top Contributor^

Microsoft
By 0.24%
% of fund 8.03%

Largest Top Detractor^

Salesforce.com
By -0.05%
% of fund 1.99%

^Absolute

Quarterly Data as of 31-Dec-2020

Top Purchase

Amazon.com
9.31%
Was (30-Sep-2020) 9.55%

Top Sale

Facebook
5.80%
Was (30-Sep-2020) 6.53%

Quarterly Data as of 31-Dec-2020

30-Sep-2020 - Taymour Tamaddon, Portfolio Manager,

One of the notable impacts of the coronavirus pandemic has been the forced acceleration of some of the secular trends already evident in the U.S. economy. The shift toward technology and digital solutions, for example, has sped up as people are having to stay at home and so need to work, communicate, and even consume via technology. Companies in the software space have also been resilient performers, as people utilize remote communication tools, while gaming, TV streaming, and content delivery firms have also performed well. E-commerce businesses have also benefited, given the surge in online purchasing and the need for home delivery.

Given the current environment, we continue to emphasize secular growth companies with strong competitive positions in large addressable markets that support multiyear growth horizons. Prominent sectors in the portfolio, including information technology, consumer discretionary, communication services, and health care, are areas that we continue to believe offer fertile ground for innovative companies to achieve above-average growth prospects.

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 in the segment. 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 added shares of Wix.com during the quarter. The company has benefited from increased user engagement as social distancing measures accelerated the need for businesses to have an online presence in order to reach consumers. With its disruptive website development technology driving share gains, innovative new tools that are ready to be monetized, and a subscription business model providing a high degree of recurring revenue, we believe Wix.com's runway for growth is underappreciated by the market.
  • We sold CrowdStrike Holdings after shares rose on the back of strong quarterly results that were highlighted by strength in new deals and expansions. After the runup in share price, we sold shares in order to pursue new investment opportunities that we feel could offer higher upside potential.

Consumer Discretionary

We have a sizable position in consumer discretionary names as we are optimistic about stock-specific opportunities within the sector. We favor businesses benefiting from the secular shift of consumer spending to online products and services. We think industries such as physical retail and traditional media are secularly challenged and will continue to emphasize companies within the sector that we think are on the right side of change and disruption.

  • We bought shares of Nike. We have a constructive view on the athletic sportswear company's growth potential as it continues to aggressively build a moat around its brand through category offense, consumer-focused innovation, and more emphasis on its digital presence as it shifts away from weak wholesale partners and takes a direct-to-consumer approach.
  • We moderated the portfolio's position in Carvana on strength during the quarter. Carvana operates the leading online retail platform for direct-to-consumer sales of used cars. In our view, the company's digital focus and distribution network improve the car-buying experience for consumers while creating the potential for superior profitability at scale. We also believe Carvana should be able to grow its revenue at a rapid pace as the company takes share in this fragmented market.

Communication Services

Within the communication services 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 purchased shares of Snap Inc. during the quarter as we think its popular app, Snapchat, offers a unique, highly monetizable product that benefits from client interaction with a small, closed network of close contacts, a markedly different approach that contrasts with the broad communities of Facebook and Instagram.
  • We trimmed the portfolio's position in Spotify on relative strength. We continue to like the company as it is quickly becoming synonymous with music streaming. In addition to high-margin advertising, we believe Spotify's scale will translate to added negotiating power with music labels, fueling margin growth.

Health Care

We remain focused on finding opportunities in the health care sector that can 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 added shares of UnitedHealth Group, a broadly diversified health care services company, because we think the company should benefit from accelerating earnings for several years as a result of improving Medicare performance, continued growth in the Medicaid businesses, an exit of the exchanges business, and disruption at peers due to deal-related distraction.
  • Alexion Pharmaceuticals develops and commercializes therapies for severe and rare diseases. We sold shares on strength during the quarter as shares jumped higher after management released earnings results that exceeded expectations.

Sectors

Total
Sectors
7
Largest Sector Information Technology 35.45% Was (30-Nov-2020) 35.07%
Other View complete Sector Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: Russell 1000 Growth Index

Top Contributor^

Communication Services
Net Contribution 1.55%
Sector
0.24%
Selection 1.31%

Top Detractor^

Consumer Discretionary
Net Contribution -1.34%
Sector
0.11%
Selection
-1.46%

^Relative

Quarterly Data as of 31-Dec-2020

Largest Overweight

Communication Services
By12.81%
Fund 23.86%
Indicative Benchmark 11.06%

Largest Underweight

Information Technology
By-9.67%
Fund 35.45%
Indicative Benchmark 45.12%

Monthly Data as of 31-Dec-2020

31-Dec-2020 - Taymour Tamaddon, Portfolio Manager,
In an increasingly digitised world, we believe scale is crucial. Companies with the most capital to deploy can invest in the latest technology, which in turn is attracting more customers. As such, we continue to focus on secular growth companies with strong competitive positions in large addressable markets that support multi-year growth horizons. Prominent sectors in the portfolio, including IT, consumer discretionary, communication services, and health care, are areas that we continue to believe offer fertile ground for innovative companies to achieve above-average growth.

Team (As of 08-Jan-2021)

Taymour Tamaddon, CFA

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 Multi-Cap Growth Equity, US Growth Stock Equity, US Large-Cap Core Growth Equity, and US Capital Appreciation Strategies. He also is a vice president of the T. Rowe Price Institutional International Funds, Inc., and the T. Rowe Price International Funds, Inc. Taymour is a vice president of T. Rowe Price Group, Inc. 

Taymour’s investment experience began in 2003, and he has been with T. Rowe Price since 2004, beginning in the U.S. Equity Division, after serving as a summer intern in 2003. Prior to this, Taymour was employed by Amazon.com in the areas of finance and merchandising. Before that, he was employed by Booz Allen Hamilton as a consultant, specializing in the energy industry.

Taymour earned a B.S., cum laude, in applied physics from Cornell University and an M.B.A. from Dartmouth College, Tuck School of Business, where he was an Edward Tuck Scholar with high distinction. Taymour also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
    since
    2017
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    17
Larry J. Puglia, CFA, CPA

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.

  • Years at
    T. Rowe Price
    30
  • Years investment
    experience
    31
Joseph Fath

Joe Fath is the portfolio manager for the U.S. Growth Stock Equity Strategy, including the Growth Stock Fund, in which he is chairman of the investment advisory committee.  He is a vice president and member of the investment advisory committee of the U.S. Quantitative US, U.S. Mid-Cap Growth Equity, U.S. Communications and Technology and U.S. Large-Cap Growth Equity Strategies.   He is vice president of T. Rowe Price Group. 

Joe’s investment experience began in 2000 and he has been with T. Rowe Price since 2002, beginning in the U.S. Equity Division after serving as a summer intern in 2001.   Prior to this, Joe was the chief financial officer and co-founder of Broadform, Inc., a start-up educational software company.  In addition, he worked as director of operations and analysis for Players International, a multi-jurisdictional gaming operator in the United States.  Joe was also employed by Coopers & Lybrand as a senior associate in the Business Assurance and Financial Advisory Services Group.  

Joe earned a B.S., with honors, in accounting from the University of Illinois at Urbana-Champaign.  He also earned an M.B. A., with honors, in finance and entrepreneurial management from The Wharton School, University of Pennsylvania.  He is a Certified Public Accountant.

  • Years at
    T. Rowe Price
    18
  • Years investment
    experience
    20
Ronald Taylor

Ron Taylor is a portfolio specialist in the U.S. Equity Division. He is a member of the US Large-Cap Growth Equity Strategy team, working closely with institutional clients, consultants, and prospects. Ron also is Chair of the Black Leadership Council and a vice president of T. Rowe Price Group, Inc.

Ron’s investment experience began in 1986, and he has been with T. Rowe Price since 2003, beginning in the U.S. Equity Division. Prior to this, Ron was employed by Zurich Scudder Investments as an equity product specialist and later as the director of Institutional Client Service; by Chancellor Capital Management as an equity product specialist; by Putnam Investments as an equity analyst and later in new business development and client service; and by Columbia Savings & Loan as a high yield bond analyst.

Ron earned a B.A. in economics from the University of California, Los Angeles, and an M.B.A. from Harvard Business School.

  • Years at
    T. Rowe Price
    17
  • Years investment
    experience
    32

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 1.58%
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.69%
Class Q $1,000 $100 $100 0.00% 65 basis points 0.73%

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