US Equity Fund

Formerly US Large-Cap Equity Fund

Style agnostic investing in larger US companies.

ISIN LU1319833791 Bloomberg TRUSLIE:LX

3YR Return Annualised
(View Total Returns)

Total Assets


1YR Return
(View Total Returns)

Manager Tenure


Information Ratio
(3 Years)

Tracking Error
(3 Years)


Inception Date 08-Jul-2016

Performance figures calculated in EUR

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31-Jan-2020 - Jeff Rottinghaus, Portfolio Manager ,
U.S. economic data remain largely positive as consumers continue to benefit from record low unemployment and rising wages. However, we remain relatively cautious as we are mindful that unresolved global trade issues and the upcoming U.S. presidential election could cause headlines that adversely affect markets. That said, an accommodative U.S. Federal Reserve, along with easing monetary policy around the globe, should be supportive to the asset class as we begin 2020.
Jeff Rottinghaus
Jeff Rottinghaus, Portfolio Manager

Jeff Rottinghaus is a portfolio manager in the U.S. Equity Division. He is president of the US Large-Cap Core Equity Strategy and chairman of its Investment Advisory Committee. In addition, he is a vice president and an Investment Advisory Committee member of the US Quantitative U.S. and US Dividend Growth Strategies. Jeff also is a vice president of T. Rowe Price Group, Inc.

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Manager's Outlook

As economies gradually-and sometimes haltingly-reopen, we believe a sustained recovery will largely depend on controlling the virus in the second half of 2020 and beyond. A key question for markets may now be how long it will take for companies to regain enough earnings power to justify current valuation levels while compensating investors for the risk that an economic recovery might not progress as rapidly or as evenly as expected. We are also mindful that the recent market rally has been driven by massive doses of fiscal and monetary stimulus, with additional stimulus measures possible early in the third quarter. Amid uncertainty, asset returns are likely to remain uneven across sectors, industries, and companies, creating the potential to add value with a strategic investing approach but requiring careful analysis to identify opportunities and manage risk.

Going forward, we believe careful fundamental research will be necessary to find opportunities, and we will continue to search for investment opportunities in select areas of the market, utilizing our bottom-up stock-selection approach. As always, we rely on our global research team of industry specialists to uncover fundamentally sound companies and remain committed to providing quality, risk-adjusted returns over the long term.

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.

Investment Approach

  • Carefully constructed portfolio of the portfolio manager’s highest conviction investment ideas supported by our deep pool of U.S. equity analysts.
  • Core style targeting attractive opportunities across the investable universe irrespective of growth or value style.
  • Investment process that:
    • leverages the stock selection capabilities of our global research team;
    • emphasizes fundamental bottom-up stock selection;
    • is combined with an in-depth valuation assessment;
    • has rigorous portfolio construction.
  • Active risk management process integrated throughout our analysis.
  • Focused Large-Cap approach with stock selection the primary source of value added.
  • High conviction portfolio takes meaningful bets based on rigorous proprietary research.

Portfolio Construction

  • Roughly 50-60 securities.
  • Invest in high conviction ideas over a two-year time horizon.
  • Typical position size range: +/- 4% relative to the benchmark.
  • Sector weights: Generally limited to +/- 10% relative to the benchmark.
  • Expected tracking error: targeting 400 basis points.
  • Expected active share: targeting 70% or greater.

Performance (Class In | EUR)

Annualised Performance

  1 YR 3 YR
5 YR
Since Inception
Fund % 13.65% 9.59% N/A 10.09%
Indicative Benchmark % 18.22% 10.69% N/A 11.46%
Excess Return % -4.57% -1.10% N/A -1.37%

Inception Date 08-Jul-2016

Indicative Benchmark: S&P 500 Index Net Hedged to EUR

Data as of  31-Aug-2020

Performance figures calculated in EUR

  1 YR 3 YR
5 YR
Since Inception
Fund % -0.23% 5.04% N/A 6.90%
Indicative Benchmark % 4.27% 7.07% N/A 8.71%
Excess Return % -4.50% -2.03% N/A -1.81%

Inception Date 08-Jul-2016

Indicative Benchmark: S&P 500 Index Net Hedged to EUR

Data as of  30-Jun-2020

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 28-Sep-2020 Quarter to DateData as of 28-Sep-2020 Year to DateData as of 28-Sep-2020 1 MonthData as of 31-Aug-2020 3 MonthsData as of 31-Aug-2020
Fund % -4.23% 9.43% 1.13% 6.66% 14.88%
Indicative Benchmark % -4.34% 7.63% 2.95% 6.98% 14.61%
Excess Return % 0.11% 1.80% -1.82% -0.32% 0.27%

Inception Date 08-Jul-2016

Indicative Benchmark: S&P 500 Index Net Hedged to EUR

Indicative Benchmark: S&P 500 Index Net Hedged to EUR

Performance figures calculated in EUR

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-Aug-2020 - Jeff Rottinghaus, Portfolio Manager ,
U.S. equities produced strong gains in August, continuing their recovery from March lows. Within the portfolio, health care had the most negative impact on relative performance due to stock selection and an overweight position. Shares of medical device maker Becton, Dickinson & Company underperformed. While the company reported earnings from its most recent quarter that beat expectations, its sales and own forecasts for its fiscal year lagged. We believe Becton, Dickinson & Company is poised to benefit from relatively steady revenue increases and balance sheet improvements, driven in part from the acquisition of medical technology company C.R. Bard. Security selection in financials also weighed. Despite reporting solid earnings driven by cost control from its most recent quarter, shares of global insurance broker Marsh & McLennan declined during the month. However, we continue to like the company for its solid management team and defensive earnings growth profile. Conversely, energy added the most relative value due to our underweight allocation as the sector underperformed most others within the index. An underweight position in the real estate sector was also beneficial.


Largest Holding Apple 6.02% Was (31-Mar-2020) 4.68%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 32.50% View Top 10 Holdings Monthly data as of 31-Aug-2020

Largest Top Contributor^

By 0.00%
% of fund 5.89%

Largest Top Detractor^

Becton, Dickinson & Company
By -0.06%
% of fund 1.42%


Quarterly Data as of 30-Jun-2020

Top Purchase

Becton, Dickinson & Company (N)
Was (31-Mar-2020) 0.00%

Top Sale

JPMorgan Chase
Was (31-Mar-2020) 1.77%

Quarterly Data as of 30-Jun-2020

30-Jun-2020 - Jeff Rottinghaus, Portfolio Manager ,

Within the portfolio, our positioning is mainly driven by fundamental, stock-specific views. During the quarter, we selectively added to high-quality names with attractive valuations and strong balance sheets. Conversely, we trimmed names where we did not have complete confidence in their balance sheets or where we found better risk/reward ideas. We will continue to look for high-quality companies that have opportunities to increase their market share or have barriers to entry around their business that will allow them to grow organically in a variety of market environments.

Information Technology

Information technology represents our largest absolute sector weight. Within the sector, we favor companies with durable business models that address large and growing markets, such as increasing demand for business technology solutions. Our largest exposure is to the software industry, where we hold Microsoft and Within the sector, we also hold sizable positions in Apple, Visa, and Fiserv.

  • We initiated a position in Applied Materials, a leading provider of semiconductor capital equipment. Over a longer time frame, we believe the company will benefit from rising capital intensity and more rational capital expenditure cycles in the semiconductor industry. Growing demand for semiconductors related to the so-called Internet of Things, hyper-scale data centers, and artificial intelligence should act as another secular tailwind. We believe that Applied Materials' undemanding valuation and signs of a bottom in the memory market create a compelling risk/reward setup for the stock.
  • We added to tech giant Apple. While there are many uncertainties related to future sales and earnings forecasts, the company sports a rock-solid balance sheet. We believe that Apple can post solid results from its services and wearables segments and can continue to generate strong cash flow it can use to pay dividends or for acquisitions.
  • We eliminated chipmaker Xilinx in favor of more compelling risk/reward opportunities within the sector.

Industrials and Business Services

Within the industrials and business services sector, where many names are cyclically tied to either infrastructure or capital spending, we seek to invest in companies with exposure to diverse end markets that feature solid business models and strong cash flow generation. Our largest sector holdings are Honeywell International, Union Pacific, and Waste Connections.

  • We initiated a position in Honeywell International, a top-tier, multi-industrial company with a technologically differentiated portfolio and a best-in-class operating framework. While the company faces some significant near-term pressures in several of its end markets, including commercial aerospace, oil and gas, and nonresidential construction, we believe the company's earnings growth will increase coming out of the recession, partly due to its strong balance sheet, which provides some downside protection and offers optionality when economic activity stabilizes/improves.
  • We initiated a position in global parcel delivery firm UPS. We like management's continued efforts to revamp the company's pricing structure, which we expect to manifest in improved margins going forward. We believe UPS will likely perform better than many peers in a recession given the quality of its balance sheet and safe 3% dividend yield.
  • We eliminated aerospace and defense company Boeing as we believe delays in the 737 MAX recertification process and pressure on air travel from coronavirus fears are likely to have a meaningful impact on the company's bottom line.

Communication Services

The communication services sector comprises a wide range of media and entertainment and telecommunication services companies. The sector is our largest underweight position relative to the S&P 500 Index, as we are most underweight the entertainment and media industries. Our largest sector holdings are in Alphabet and Facebook.

  • We added to our position in Verizon Communications. We like the company's high-quality wireless network and progress on building out a potentially transformative 5G wireless system. We also like its recurring revenue business model, predictable free cash flow, and attractive dividend yield.
  • We eliminated our stake in media conglomerate Walt Disney. While we believe the company has a best-in-class intellectual property (IP) portfolio and IP monetization engine, we have concerns over the ongoing pandemic's impact on the company's business segments, including its theme parks and content production.

Health Care

The health care sector continues to play a significant role in the portfolio, as we believe certain industries offer compelling, relatively stable growth potential that can perform well over the long term in multiple economic scenarios. It also has a strong secular tailwind from an aging population. We favor companies that offer relatively stable growth potential and/or that are well positioned to take advantage of long-term trends such as highly innovative product offerings. Our largest industry weight is in health care equipment and supplies, including Danaher and Becton, Dickinson & Company. We also maintain a sizable position in pharmaceuticals, including Johnson & Johnson and Pfizer.

  • We initiated a position in Becton, Dickinson & Company, the largest manufacturer of single-use medical needles, syringes, and blood collection devices. We believe the company is poised to benefit from relatively steady revenue increases and balance sheet improvements, driven in part by the acquisition of medical technology company C.R. Bard.
  • We initiated a position in pharmaceutical company Eli Lilly. We believe the company has several late-stage assets with high probabilities of success that will benefit its visibility and revenue over the next 12-18 months. We also expect Eli Lilly's base business will remain stable against competition and drug-pricing pressures, and we are encouraged by management's goal of increasing the company's operating margin percentage over the next five years.
  • We eliminated Elanco Animal Health, which provides products and services designed to enhance the health of animals and pets. We have concerns that the company took on too much debt during its recent acquisition of Bayer's animal health business.


Largest Sector Information Technology 25.66% Was (31-Jul-2020) 24.80%
Other View complete Sector Diversification

Monthly Data as of 31-Aug-2020

Indicative Benchmark: S&P 500 Index

Top Contributor^

Net Contribution 0.20%
Selection 0.16%

Top Detractor^

Information Technology
Net Contribution -0.44%


Quarterly Data as of 30-Jun-2020

Largest Overweight

Industrials & Business Services
Fund 9.55%
Indicative Benchmark 7.99%

Largest Underweight

Information Technology
Fund 25.66%
Indicative Benchmark 28.71%

Monthly Data as of 31-Aug-2020

31-Aug-2020 - Jeff Rottinghaus, Portfolio Manager ,
We like the utilities sector because many of the companies offer durable earnings growth potential, strong dividend yields, and exposure to longer-term trends such as the proliferation of renewable energy. We prefer to invest in above-average utilities with quality assets that operate in attractive markets and have strong management teams. Our largest sector holdings are in NextEra Energy and Sempra Energy.

Team (As of 05-Aug-2020)

Jeff Rottinghaus

Jeff Rottinghaus is a portfolio manager in the U.S. Equity Division. He is president of the US Large-Cap Core Equity Strategy and chairman of its Investment Advisory Committee. In addition, he is a vice president and an Investment Advisory Committee member of the US Quantitative U.S. and US Dividend Growth Strategies. Jeff also is a vice president of T. Rowe Price Group, Inc.

Jeff’s investment experience began in 2001 when he joined T. Rowe Price, beginning in the U.S. Equity Division. Prior to this, Jeff was employed by Ernst & Young as a financial consultant. Jeff also was part owner of software consulting firm Kelly Levey & Associates.

Jeff earned a B.S. in business administration from Bowling Green State University and an M.B.A. in finance from the University of Pennsylvania, The Wharton School. He is a certified public accountant.

  • Fund manager
  • Years at
    T. Rowe Price
  • Years investment
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
  • Years investment

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 1.62%
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.70%
Class Q $1,000 $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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