- We believe that T. Rowe Price’s strategic investing approach, underpinned by the rigor of our independent research and the decision-making of our experienced portfolio managers, has created value for our clients over the longer term.
- Research has shown that specific market environments are often associated with periods of relative underperformance and outperformance. Research also indicates that some specific manager characteristics may contribute to long-term success.
- We reviewed the performance of 18 T. Rowe Price institutional diversified active U.S. equity strategies over the 20 years ending in 2017, or since inception in cases where the strategy had less than a full 20-year track record. We found that the vast majority of our strategies generated positive average excess returns, net of fees, over their benchmarks across multiple time periods.1
- The likelihood that T. Rowe Price’s diversified U.S. equity strategies would outperform the relevant benchmarks typically increased as rolling time periods were extended.
- We attribute our success to our efforts to go beyond the numbers and get ahead of change, which we believe leads to better decision-making and prudent risk management on behalf of our clients.
To learn more, download the full study here.
1 Given that the U.S. equity market is generally considered the world’s most efficient, transparent market, we believe it provides a strong test for management skill. Download the full report for additional information on the performance study methodology (see appendix, page 10).