T. Rowe Price reviewed the performance of 18 of the firm’s institutional diversified U.S. equity strategies over the 20 years ending in 2017, or since inception in cases where the strategies had less than a full 20-year track record. We found that the overwhelming majority of the strategies generated positive average excess returns, net of fees, over their benchmarks across multiple time periods. The likelihood that our institutional diversified U.S. equity strategies would outperform the relevant benchmarks tended to increase as rolling time periods were extended. We attribute our success to our ability to go beyond the numbers. Over 350 of our investment professionals (as of December 31, 2017) go out into the field to visit the companies they cover to gain a deeper understanding of where a company stands today and where they think it could go in the future.
Past performance data throughout this material are not reliable indicators offuture performance. For more information, please visit troweprice.com/approach.
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1The study spanned the 20 years up to the end of December 2017 for older strategies, or since inception for newer ones. It covered 18 of the 29 institutional diversified active U.S. equity strategies currently advised by T. Rowe Price.
In instances where a portfolio manager managed multiple strategies in a particular sub-asset class style (e.g., U.S.small-cap growth), we included only the strategy with the most assets under management to avoid double counting. Benchmarks included the S&P 500, Russell 1000 Growth, Russell 2000 Growth, Russell 1000 Value, Russell 2000 Value, Russell 2500, Russell 2000, Russell Midcap Growth, and Russell Midcap Value Indexes.
2Investment staff as of 12/31/2017. Includes 104 portfolio managers, 24 associate portfolio managers, 148 investment analysts, 47 associate analysts, 10 multi-asset specialists, 3 specialty analysts, 2 strategists, and 17 senior managers.
3As of 12/31/2017.
The T. Rowe Price group of companies includes T. Rowe Price Associates, Inc., T. Rowe Price International Ltd, T. Rowe Price Hong Kong Limited, T. Rowe Price Singapore Private Ltd., and T. Rowe Price (Canada), Inc.
"T. Rowe Price portfolio" reflects an equal-weighted portfolio, rebalanced monthly, of the T. Rowe Price U.S. large-cap strategy composites included in our study. From 12/31/1997 through 5/31/1999, this comprised: US Growth Stock, US Large-Cap Equity Income, US Capital Appreciation, US Dividend Growth Equity, US Large-Cap Core Growth Equity, US Value Equity, and US Large-Cap Value Equity Composite Strategies (one-seventh each). From 5/31/1999 through 4/30/2000, US Structured Research Equity was added to the previous strategies (weighted one-eighth each). From 4/30/2000 through 11/30/2001, US Multi-Cap Growth Equity was added to the previous strategies (weighted one-ninth each). From 11/30/2001 through 12/31/2017, US Large-Cap Growth Equity was added to the previous strategies (weighted one-tenth each). Benchmark data were also rebalanced monthly, with the weights used reflecting the components of the T. Rowe Price portfolio. From 12/31/1997 through 5/31/1999, the benchmarks were: Russell 1000 Growth (two-sevenths), S&P 500 (two-sevenths), and Russell 1000 Value (three-sevenths); from 5/31/1999 through 4/30/2000, Russell 1000 Growth (one-quarter), S&P 500 (three-eighths), and Russell 1000 Value (three-eighths); from 4/30/2000 through 11/30/2001, Russell 1000 Growth (one-third), S&P 500 (one-third), and Russell 1000 Value (one-third); and from 11/30/2001 through 12/31/2017, Russell 1000 Growth (two-fifths), S&P 500 (three-tenths), and Russell 1000 Value (three-tenths). No rebalancing costs were assumed.
Frank Russell Company (“Russell”) is the source and owner of the Russell Index data contained or reflected in these materials and all trademarks and copyrights related thereto. Russell® is a registered trademark of Russell. Russell is not responsible for the formatting or configuration of this materials or for any inaccuracy in T. Rowe Price Associates' presentation thereof.
Copyright © 2018, S&P Global Market Intelligence (and its affiliates, as applicable). Reproduction of S&P 500 Index in any form is prohibited except with the prior written permission of S&P Global Market Intelligence ("S&P"). None of S&P, its affiliates or their suppliers guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or forthe results obtained from the use of such information. In no event shall S&P, its affiliates or any of their suppliers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of S&P information.
The following risks are materially relevant to the strategies highlighted in this material: Transactions in securities of foreign currencies may be subject to fluctuations of exchange rates which may affect the value of an investment. Strategies are subject to the volatility inherent in equity investing, and their value may fluctuate more than strategies investing in income-oriented securities. The value approach carries the risk that the market will not recognize a security's true worth for a long time, or that a security judged to be undervalued may actually be appropriately priced. There is an increased risk where a strategy has the ability to employ both growth and value approaches. Certain strategies are subject to sector concentration risk and are more susceptible to developments affecting those sectors than strategies with a broader mandate. Investment in small companies involves greater risk than is customarily associated with larger companies, since small companies often have limited product lines, markets, or financial resources.
This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies, including T. Rowe Price Associates, Inc. and/or its affiliates, receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of futureperformance. 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.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
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