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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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SICAV

US Large Cap Growth Equity Fund

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

ISIN LU0174119429 Bloomberg TRPLGEA:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

22.22%
$3.1b

1YR Return
(View Total Returns)

Manager Tenure

42.31%
4yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.27
5.55%

Inception Date 13-Nov-2003

Performance figures calculated in USD

30-Jun-2021 - Taymour Tamaddon, Portfolio Manager,
Despite the strength and speed of the global economic recovery, potential risks to growth persist as vaccine progress remains slow in parts of the world and new variants remain. While the Biden administration is seeking to raise the U.S. corporate tax rate, we think any increase is likely to be moderate and neutral for U.S. equity markets. However, proposed increases in capital gains and dividend taxes could be negative for after-tax returns on most asset classes.
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 Growth Stock Equity, and Global Focused Growth Equity Strategies. Taymour is an executive vice president of T. Rowe Price Equity Funds and a vice president of the T. Rowe Price International Funds, Inc., and T. Rowe Price Global Funds. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.

 

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.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

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 A)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 42.31% 22.22% 24.73% 17.86% 25.17%
Indicative Benchmark % 42.16% 24.74% 23.21% 17.37% 24.67%
Excess Return % 0.15% -2.52% 1.52% 0.49% 0.50%

Inception Date 13-Nov-2003

Manager Inception Date 31-Dec-2016

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of 30-Jun-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 42.31% 22.22% 24.73% 17.86%
Indicative Benchmark % 42.16% 24.74% 23.21% 17.37%
Excess Return % 0.15% -2.52% 1.52% 0.49%

Inception Date 13-Nov-2003

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of 30-Jun-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 03-Aug-2021 Quarter to DateData as of 03-Aug-2021 Year to DateData as of 03-Aug-2021 1 MonthData as of 30-Jun-2021 3 MonthsData as of 30-Jun-2021
Fund % -1.14% 1.29% 14.56% 5.26% 11.11%
Indicative Benchmark % 0.60% 3.90% 17.26% 6.25% 11.87%
Excess Return % -1.74% -2.61% -2.70% -0.99% -0.76%

Inception Date 13-Nov-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.

30-Jun-2021 - Taymour Tamaddon, Portfolio Manager,
U.S. equities were mixed in June. Within the portfolio, stock selection in the health care sector held back relative returns. For example, shares of Cigna, one of the leading health care providers in the U.S., fell after the company expanded its medical policy coverage to reimburse Hologic's Acessa Laparoscopic Radiofrequency Ablation (Lap-RFA) procedure as medically necessary. Despite this recent change, we continue to think Cigna is attractively valued. Our stock choices in information technology also weighed on relative results. Within the sector, shares of Global Payments declined due to a broader slowdown in global payment activities. Despite recent weakness, we continue to see potential in Global Payments for intermediate-term earnings growth, driven by stronger revenues from technology products and synergies from recent acquisitions. On the positive side, our underweight exposures to consumer staples and industrials and business services helped relative performance. The portfolio has minimal exposure to stocks in either sector as they generally lack compelling growth opportunities that meet our investment criteria.

Holdings

Total
Holdings
67
Largest Holding Amazon.com 8.95% Was (31-Mar-2021) 9.03%
Other View Full Holdings Quarterly data as of  30-Jun-2021
Top 10 Holdings 52.46% View Top 10 Holdings Monthly data as of  30-Jun-2021

Largest Top Contributor^

Alphabet
By 0.55%
% of fund 9.44%

Largest Top Detractor^

Global Payments
By -0.89%
% of fund 2.98%

^Absolute

Quarterly Data as of 30-Jun-2021

Top Purchase

Microsoft
8.71%
Was (31-Mar-2021) 8.33%

Top Sale

Goldman Sachs (E)
0.00%
Was (31-Mar-2021) 0.51%

Quarterly Data as of 30-Jun-2021

31-Mar-2021 - Taymour Tamaddon, Portfolio Manager,

In the first quarter of 2021, we added exposure to select software names with superior technology that we feel are well positioned for accelerating digital transformation trends as we exit the pandemic. We also beefed up digital advertising exposure due to our expectation for significant acceleration in advertising spending in order to keep pace with the tremendous pull forward in e-commerce penetration that took place during the pandemic. Selling activity was led by semiconductor names after we trimmed select stocks into strength as some companies within the space are approaching the later innings of their earnings cycles, in our view. We also reduced exposure in areas like specialty retail and IT services, harvesting profits where our investment theses played out.

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.

  • Fortinet is the second-largest global network security provider to enterprise and telecom service providers. Fortinet's core offering is its next generation firewall appliance, the FortiGate, which is available as both an on-premise firewall and a virtual private firewall for cloud-based workloads. We added shares of the company as we think it possesses durable competitive advantages that have the potential to drive accelerating product growth and meaningful margin expansion over the near and long term.
  • We sold Marvell Technology Group, a digital semiconductor company that specializes in storage controllers, Ethernet switches, and enterprise connectivity. We took advantage of the stock's exceptional performance to capture profits, rotating the proceeds into investment ideas that we feel offer higher risk/reward 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 Coupang, a leading South Korean e-commerce firm, as we feel the company can leverage its wide moat in logistics technology to offer consumers better merchandise selection, faster delivery, and lower prices than many of its competitors and, in doing so, continue to grow its market share. We also value Coupang's differentiated business strategy that enables it to manage its operating costs better than its competitors.
  • CarMax is the nation's largest retailer of used cars. We sold shares on strength following its strong performance over the past 12 months. We redeployed the assets into names that we think offer more attractive multiyear risk/reward potential.

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.

  • Pinterest operates a consumer application used for visual inspiration and product discovery. Heavy uses include fashion, home decor, and beauty trends and ideas. We bought shares during the quarter because we think Pinterest is vastly under-monetized relative to its peers. Its platform is entirely composed of user-generated content and therefore carries no cost for the company, which could enable significant margin potential.
  • We pared the portfolio's position in Snap Inc. on relative strength as the social media company performed exceptionally well over the past 12 months. Overall, we continue to like the company and believe it is well positioned to ramp monetization efforts and drive earnings growth over time.

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.

  • Shares of hospital operator HCA Healthcare spiked higher after management reported favorable earnings results that skewed toward profitable, high-acuity admissions. Despite significant fixed costs in its operating model, HCA also demonstrated an ability to reduce operating expenses in a challenging environment, aiding the bottom line. We trimmed the portfolio's position after the runup in share price; however, we continue to have a favorable view of HCA over the long term due to its excellent management team, strategic long-term capital deployment strategy, and attractive geographic mix.

Sectors

Total
Sectors
7
Largest Sector Information Technology 35.45% Was (31-May-2021) 34.45%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: Russell 1000 Growth Index

Top Contributor^

Consumer Staples
Net Contribution 0.34%
Sector
0.34%
Selection 0.00%

Top Detractor^

Health Care
Net Contribution -0.49%
Sector
-0.02%
Selection
-0.47%

^Relative

Quarterly Data as of 30-Jun-2021

Largest Overweight

Communication Services
By14.51%
Fund 27.14%
Indicative Benchmark 12.63%

Largest Underweight

Information Technology
By-8.65%
Fund 35.45%
Indicative Benchmark 44.10%

Monthly Data as of 30-Jun-2021

30-Jun-2021 - Taymour Tamaddon, Portfolio Manager,
The trajectory of equity markets in the second half of 2021 will likely hinge on the movement of interest rates and progress on additional vaccine development and distribution. With the pandemic accelerating many secular growth trends and causing material changes to consumer trends, we continue to focus on how to best position ourselves for those changes in behaviour that we believe will remain permanent and avoiding those that are likely to be transitory.

Team (As of 27-Jul-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 Growth Stock Equity, and Global Focused Growth Equity Strategies. Taymour is an executive vice president of T. Rowe Price Equity Funds and a vice president of the T. Rowe Price International Funds, Inc., and T. Rowe Price Global Funds. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.   

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
    17
  • Years investment
    experience
    18
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
    31
  • Years investment
    experience
    32
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.