Download

Audience for the document: Share Class: Language of the document:

Download

Share Class: Language of the document:

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

GIPS® Information

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.

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

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest

Please enter valid search characters

SICAV

US Large Cap Growth Equity Fund

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

ISIN LU0860350577 Bloomberg TRPLGEQ:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

25.67%
$2.9b

1YR Return
(View Total Returns)

Manager Tenure

35.50%
4yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.01
5.87%

Inception Date 14-Jan-2013

Performance figures calculated in USD

31-Jan-2020 - Taymour Tamaddon, Portfolio Manager,
Overall, we are cautious but optimistic that sufficient positive factors are still in place to support the market, while more volatile conditions could produce attractive buying opportunities for long-term investors. However, trade and interest rates remain the two key market factors to watch. Furthermore, as the U.S. presidential election campaigns gain momentum and controversial policy issues are debated, the risk from political headlines on investor sentiment may become more of a concern.
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.

Click for Manager Outlook
 

Strategy

Manager's Outlook

Despite the strength and speed of the global economic recovery, potential risks to economic growth persist. Vaccine progress remains slow in parts of the world, and the rapid spread of the delta variant of the coronavirus has emerged as a threat. While the Biden administration is seeking to raise the U.S. corporate tax rate, any increase is likely already baked into U.S. equity markets. However, proposed increases in capital gains and dividend taxes could be negative for after-tax returns on most asset classes. Meanwhile, price-to-earnings multiples in some sectors and stocks imply demanding earnings expectations. The U.S. debt ceiling impasse in Congress has injected uncertainty into financial markets. Markets must also contend with the regulatory crackdown in China, the driver of much of the global economy's growth in recent years.

Nevertheless, growth appears likely to continue in most of the world's major economies over the coming months. We remain focused on the area where we believe we have an edge and can potentially add the most value over a full economic cycle: identifying opportunities where we think that the market does not fully appreciate the possible strength and length of a company's growth story. As such, we continue to lean heavily on our analyst platform for unique insights as we look to identify the companies that we think are best positioned to manage through the current environment. Overall, we will continue to favor companies that have more control of their destiny, are positioned to benefit from powerful secular trends, and are using innovation to disrupt less efficient business models and create new ones.

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

Recent Performance

  Month to DateData as of 03-Dec-2021 Quarter to DateData as of 03-Dec-2021 Year to DateData as of 03-Dec-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % -3.99% -0.57% 13.30% 3.85% 1.60%
Indicative Benchmark % -2.39% 6.68% 21.72% 8.65% 6.36%
Excess Return % -1.60% -7.25% -8.42% -4.80% -4.76%

Inception Date 14-Jan-2013

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Performance figures calculated in USD

Sectors

Total
Sectors
6
Largest Sector Information Technology 39.39% Was (30-Sep-2021) 38.04%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: Russell 1000 Growth Index

Top Contributor^

Industrials & Business Services
Net Contribution 0.47%
Sector
0.33%
Selection 0.14%

Top Detractor^

Consumer Discretionary
Net Contribution -1.28%
Sector
-0.05%
Selection
-1.23%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Communication Services
By12.91%
Fund 25.14%
Indicative Benchmark 12.24%

Largest Underweight

Information Technology
By-5.48%
Fund 39.39%
Indicative Benchmark 44.87%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Taymour Tamaddon, Portfolio Manager,
In our view, the trajectory of equity markets heading into 2022 depends on several competing crosscurrents, which creates a wide range of potential outcomes. With elevated multiples across much of the market, we are staying mindful of valuations given the risk for rate hikes and multiple contraction. The pandemic is continuing to accelerate many secular growth trends and is causing material changes to consumer trends; therefore, we continue to focus on how to best position the portfolio for those changes in behaviour that we believe will be permanent and avoid those that are likely to be transitory.

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.