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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.

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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 LU1446472380 Bloomberg TRUSLQE:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

22.18%
$3.0b

1YR Return
(View Total Returns)

Manager Tenure

27.78%
4yrs

Information Ratio
(3 Years)

Tracking Error
(3 Years)

-0.29
4.91%

Inception Date 30-Nov-2016

Performance figures calculated in EUR

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 growth persist. Vaccine progress remains slow in parts of the world and new variants remain a potential threat. While the Biden administration is seeking to raise the U.S. corporate tax rate, 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. Meanwhile, price-to-earnings multiples in some sectors and stocks imply demanding earnings expectations.

Given these factors, 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 crisis. 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

Performance (Class Q | EUR)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 27.78% 22.18% N/A 22.85% 23.31%
Indicative Benchmark % 29.91% 23.61% N/A 22.52% 22.50%
Excess Return % -2.13% -1.43% N/A 0.33% 0.81%

Inception Date 30-Nov-2016

Manager Inception Date 31-Dec-2016

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of 31-Aug-2021

Performance figures calculated in EUR

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 35.44% 22.42% N/A 22.46%
Indicative Benchmark % 34.63% 24.09% N/A 21.48%
Excess Return % 0.81% -1.67% N/A 0.98%

Inception Date 30-Nov-2016

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of 30-Jun-2021

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 16-Sep-2021 Quarter to DateData as of 16-Sep-2021 Year to DateData as of 16-Sep-2021 1 MonthData as of 31-Aug-2021 3 MonthsData as of 31-Aug-2021
Fund % 0.23% 5.34% 23.61% 2.55% 13.78%
Indicative Benchmark % -0.07% 7.54% 25.23% 4.18% 17.89%
Excess Return % 0.30% -2.20% -1.62% -1.63% -4.11%

Inception Date 30-Nov-2016

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Indicative Benchmark: Russell 1000 Growth Net 30% Index

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-2021 - Taymour Tamaddon, Portfolio Manager,
U.S. equities produced gains in August, despite some volatility. Within the portfolio, adverse stock selection in the consumer discretionary sector detracted from relative returns. For example, shares of Aptiv, an automotive supplier in the electrical/electronic architecture and electronics and safety industries, pulled back as broader industry headwinds related to supply chain, logistics, and pandemic-related overhead weighed on second-quarter earnings. We continue to feel that the company possesses superior technology and is benefitting from the adoption of autonomous driving and electric vehicles. Our stock choices in health care also weighed on relative results. Within the sector, shares of Cigna plummeted following news that the full-year earnings impact of the coronavirus pandemic will likely be significantly worse than expected. Additionally, the return to historical levels of utilisation and the direct costs of COVID-19 testing and treatment led to a miss on the company’s second-quarter medical loss ratio. On the positive side, our underweight position in industrials and business services and our lack of exposure to consumer staples helped relative performance. We have minimal exposure to stocks in these sectors 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 53.17% View Top 10 Holdings Monthly data as of  31-Aug-2021

Largest Top Contributor^

Alphabet
% of fund 9.44%

Largest Top Detractor^

Global Payments
% of fund 2.98%

^Absolute, percentages based on the difference between the total net assets of the two largest holdings of the fund.

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

30-Jun-2021 - Taymour Tamaddon, Portfolio Manager,

We think the trajectory of equity markets in the second half of 2021 will likely hinge on the Federal Reserve's policy decisions around the timing of tapering asset purchases and interest rate hikes. With elevated multiples across much of the market, we are staying mindful of valuations given the risk for rate hikes and subsequent multiple contraction. Additionally, the pandemic is continuing to serve as an accelerant to many secular growth trends and causing material changes to consumer behavior; therefore, we continue to focus on how to best position ourselves for those changes in behavior that we believe will remain permanent and avoiding those that are likely to be transitory.

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.

  • We bought shares of software company Microsoft. We believe that we are in a golden age of technology and that Microsoft is structurally advantaged to deliver the greatest broad-based value and thus garner disproportionate rewards. Microsoft has built a favorable position around its Office 365 and Azure cloud platforms such that customers increase technology purchases year after year. Overall, we appreciate Microsoft's smart capital allocation, the durable growth prospects of its cloud business, and the potential of its push into analytics and artificial intelligence.
  • We trimmed PayPal Holdings on relative strength as the company has experienced strong growth in revenue and earnings over the past year, driven by a considerable rise in total payment volumes and total active accounts. After the run up in share price, we elected to sell shares due to expectations for decelerating volumes and pricing, as well as increasing competition as we exit the pandemic.

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 added shares of discount retailer Ross Stores, which provides a compelling mix of name brand and designer apparel and home fashion at price points that are attractive to value-conscious consumers. In our view, Ross Stores is more insulated from changes occurring in the retail space as it offers customers a treasure-hunt shopping experience that cannot be replicated online. We also expect the company to benefit from coronavirus-related supply chain disruptions that cause inventories to pile up, allowing them to source better products at lower prices. Further, we believe that Ross Stores stands to gain from the deployment of excess stimulus cash saved by consumers and the eventual normalization of shopper behavior.
  • Although we expect Alibaba Group Holding to continue to be a solid growth company, the stock's performance has struggled in recent months and there are a number of near-term risks that could dampen returns. As a result, we modestly pared the portfolio's position to mitigate the short-term risk of increased regulatory scrutiny.

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 we feel could enable significant margin potential. Additionally, the company is seeing a surge in users that are making purchases directly on the Pinterest platform, which is attracting more advertisers and bodes well for future growth.

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.

  • We trimmed shares of Cigna on strength as the managed care company generated solid returns over the past 12 months. As a result, we chose to reduce the portfolio's position and reallocate funds to names that we feel may offer better risk/reward potential.

Sectors

Total
Sectors
6
Largest Sector Information Technology 37.30% Was (31-Jul-2021) 36.71%
Other View complete Sector Diversification

Monthly Data as of 31-Aug-2021

Indicative Benchmark: Russell 1000 Growth Index

Top Contributor^

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

Top Detractor^

Information Technology
Net Contribution -0.47%
Sector
-0.16%
Selection
-0.31%

^Relative

Quarterly Data as of 30-Jun-2021

Largest Overweight

Communication Services
By13.42%
Fund 26.45%
Indicative Benchmark 13.02%

Largest Underweight

Information Technology
By-7.28%
Fund 37.30%
Indicative Benchmark 44.58%

Monthly Data as of 31-Aug-2021

31-Aug-2021 - Taymour Tamaddon, Portfolio Manager,
The trajectory of equity markets in the second half of this year 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 behaviour, we continue to focus on how to best position ourselves for those changes that we believe will remain permanent and avoiding those that are likely to be transitory.

Team (As of 10-Sep-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
    19
  • Years investment
    experience
    21
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.