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SICAV

US Large-Cap Value Equity Fund

Invest in large US companies with hidden value and potential overlooked by the market majority.

ISIN LU0284527214 WKN A0M42E

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

9.78%
$774.3m

1YR Return
(View Total Returns)

Manager Tenure

9.72%
12yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.18
3.72%

Inception Date 20-Feb-2007

Performance figures calculated in USD

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John D.  Linehan
John D. Linehan, Co-Portfolio Manager

John D. Linehan is the portfolio manager for the Equity Income Strategy and co-portfolio manager of the US Large-Cap Value Strategy. 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 is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, 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 are selling at discounted valuations relative to their historical average and/or the average of their industries.

Investment Approach

  • Focus on relative value relationships to opportunistically identify attractively valued companies.
  • Fundamental research is key to uncovering companies with potential for stock price mean reversion.
  • Integrate qualitative inputs to assess potential for improved investor perception.
  • Verify relative valuation anomalies through quantitative analysis.
  • Balance valuation analysis and qualitative overlay.

Portfolio Construction

  • Typically 70-80 stock portfolio
  • Individual positions typically are below 3%, but higher conviction ideas can range to 5%
  • Sector weights will typically vary from 0.5X to 2.0X of primary value sectors of the Russell 1000 Value Index
  • Reserves will range from 0% to 2%

Performance (Class J)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 9.72% 9.78% 7.47% 11.41%
Indicative Benchmark % 10.35% 9.69% 6.82% 11.15%
Excess Return % -0.63% 0.09% 0.65% 0.26%

Inception Date 20-Feb-2007

Indicative Benchmark: Russell 1000 Value Net 30% Index

Data as of  31-Oct-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 4.13% 9.54% 7.72% 11.48%
Indicative Benchmark % 3.19% 8.62% 7.00% 10.65%
Excess Return % 0.94% 0.92% 0.72% 0.83%

Inception Date 20-Feb-2007

Indicative Benchmark: Russell 1000 Value Net 30% Index

Data as of  30-Sep-2019

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 04-Dec-2019 Quarter to DateData as of 04-Dec-2019 Year to DateData as of 04-Dec-2019 1 MonthData as of 31-Oct-2019 3 MonthsData as of 31-Oct-2019
Fund % -0.97% 3.13% 22.54% 0.09% 0.44%
Indicative Benchmark % -0.66% 3.71% 21.48% 1.35% 1.73%
Excess Return % -0.31% -0.58% 1.06% -1.26% -1.29%

Inception Date 20-Feb-2007

Indicative Benchmark: Russell 1000 Value Net 30% Index

Indicative Benchmark: Russell 1000 Value 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. 

Please note that no management fees are charged to the S and J share classes. No administration agent fees are charged to the J class. Fee arrangements for the S and J classes are made directly with the investment manager. Please see the prospectus for further information.

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

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
84
Largest Holding Wells Fargo 3.70% Was (30-Jun-2019) 3.35%
Other View Full Holdings Quarterly data as of 30-Sep-2019
Top 10 Holdings 27.11% View Top 10 Holdings Monthly data as of 31-Oct-2019

Largest Top Contributor^

Wells Fargo
By 0.27%
% of fund 3.73%

Largest Top Detractor^

Total
By -0.56%
% of fund 2.53%

^Absolute

Quarterly Data as of 30-Sep-2019

Top Purchase

Edison International (N)
0.86%
Was (30-Jun-2019) 0.00%

Top Sale

Merck
0.58%
Was (30-Jun-2019) 1.47%

Quarterly Data as of 30-Sep-2019

Sectors

Total
Sectors
11
Largest Sector Financials 23.29% Was (30-Sep-2019) 22.78%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2019

Indicative Benchmark: Russell 1000 Value Index

Top Contributor^

Health Care
Net Contribution 0.63%
Sector
-0.06%
Selection 0.70%

Top Detractor^

Real Estate
Net Contribution -0.26%
Sector
-0.21%
Selection
-0.04%

^Relative

Quarterly Data as of 30-Sep-2019

Largest Overweight

Information Technology
By3.77%
Fund 9.89%
Indicative Benchmark 6.12%

Largest Underweight

Consumer Discretionary
By-3.44%
Fund 2.56%
Indicative Benchmark 6.00%

Monthly Data as of 31-Oct-2019

Team (As of 31-Aug-2019)

John D.  Linehan

John D. Linehan is the portfolio manager for the Equity Income Strategy and co-portfolio manager of the US Large-Cap Value Strategy. 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 is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Linehan has 30 years of investment experience, 21 of which have been at T. Rowe Price. From February 2009 to June 2014, Mr. Linehan was head of U.S. Equity and chairman of the U.S. Equity Steering Committee. From April 2003 to December 2009, he was the portfolio manager of the US Value Strategy. He started at the firm in 1998 as an equity analyst, covering the paper and forest products and airline industries. Prior to joining T. Rowe Price, between 1990 and 1996, he was an executive in the oil trading and consulting industry, first as vice president and managing director for Delaney Petroleum, then as vice president and managing director for E.T. Petroleum. Mr. Linehan began his investment career in 1987 at Bankers Trust NY Corporation, where he was an associate in mortgage-backed securities trading.

Mr. Linehan earned a B.A. in economics from Amherst College and an M.B.A. from Stanford Graduate School of Business, where he was a Henry Ford II Scholar, an Arjay Miller Scholar, and the winner of the Alexander A. Robichek Award in finance. Mr. Linehan also has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2007
  • Years at
    T. Rowe Price
    21
  • Years investment
    experience
    30
Mark S.  Finn

Mark Finn is the portfolio manager of the US Value Equity Strategy and is also co-portfolio manager of the US Large-Cap Value Equity Strategy. Mr. Finn is a vice president of T. Rowe Price Group, Inc.

Mr. Finn has 21 years of investment experience, all of which have been with T. Rowe Price. From 2005 to 2009, Mr. Finn was an equity research analyst specializing in electric power generation, utilities, and coal. Prior to this, he was an analyst in T. Rowe Price's Fixed Income Division, where he also covered utilities and power generation. From 1998 to 2001, Mr. Finn worked with the T. Rowe Price Recovery Strategy team, where he evaluated financially distressed companies. Mr. Finn began his career with T. Rowe Price in 1990 in the Finance Division, where he served as controller of T. Rowe Price Investment Services, Inc., and as the principal accounting officer for the T. Rowe Price realty income strategies. Prior to joining the firm, he had five years of auditing experience with Price Waterhouse LLP, where he worked on engagements for both public and private companies.

Mr. Finn earned a B.S. from the University of Delaware and has earned the Chartered Financial Analyst designation. He is also a certified public accountant.

  • Fund manager
    since
    2010
  • Years at
    T. Rowe Price
    28
  • Years investment
    experience
    21
Heather K. McPherson

Heather McPherson is the co-portfolio manager for the US Large-Cap Value Equity Strategy and an associate portfolio manager of the Equity Income Strategy in the U.S. Equity Division of T. Rowe Price. Ms. McPherson is also a vice president and Investment Advisory Committee member of the Equity Income, Growth & Income, Global Technology, Large-Cap Core, New Era, Mid-Cap Value, and Value Strategies. Ms. McPherson is a member of the firm's U.S. Equity Steering Committee. She is a vice president of T. Rowe Price Group, Inc.

Ms. McPherson has 19 years of investment experience, 17 of which have been with T. Rowe Price. Prior to joining the firm in 2002, she worked as a summer intern in 2001 at Salomon Smith Barney, covering the storage area networking industry. Prior to this, she was a vice president of finance and administration for Putnam Lovell Securities, Inc.

Ms. McPherson earned a B.S. in managerial economics from the University of California-Davis and an M.B.A. from Duke University, The Fuqua School of Business.

  • Fund manager
    since
    2015
  • Years at
    T. Rowe Price
    17
  • Years investment
    experience
    19
William D. Nolan

William D. Nolan is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects. Mr. Nolan supports T. Rowe Price's large-cap value strategies, focusing on the US Large-Cap Equity Income and US Value Equity Strategies. He is a vice president of T. Rowe Price Associates, Inc.

Mr. Nolan has 26 years of investment experience. Before joining the firm, he was most recently a managing director of institutional equity sales for Wachovia Corporation where he also served as director of institutional research marketing. Prior to this, Mr. Nolan was director of equity institutional sales for Alex Brown and was the Washington, D.C., branch manager in the National Accounts Division of IBM.

Mr. Nolan earned a B.S. in social and behavioral sciences from Johns Hopkins University.

  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    28
Eric Papesh

Eric Papesh is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He is based in London and serves as a proxy for equity portfolio managers with institutional clients, consultants and prospects. Mr. Papesh supports T. Rowe Price's US Smaller Companies Equity and US Large-Cap Equity Strategies offered in the Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Papesh has 22 years of financial services experience, two of which have been with T. Rowe Price. Before joining the firm in 2014, he was a senior research analyst with Russell Investments, where he focused on US equity investment strategies.

Mr. Papesh earned a B.A. in business administration and an M.B.A. from the University of Washington. He has also earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    5
  • Years investment
    experience
    25

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount Minimum Subsequent Investment Minimum Redemption Amount Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $15,000 $100 $100 5.00% 150 basis points 1.61%
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.70%
Class J $10,000,000 $0 $0 0.00% 0 basis points 0.03%
Class Q $15,000 $100 $100 0.00% 65 basis points 0.77%

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

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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