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SICAV

US Blue Chip Equity Fund

Seeking superior returns from high quality US companies.

ISIN LU1136108674 Bloomberg TRUSBQE:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

14.10%
$948.4m

1YR Return
(View Total Returns)

Manager Tenure

9.58%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.43
7.54%

Inception Date 02-Dec-2014

Performance figures calculated in EUR

Other Literature

29-Feb-2020 - Larry J. Puglia, Portfolio Manager,
While the coronavirus is likely to take a toll on economic activity in the first half of this year, we think abundant global liquidity and the strong likelihood of a forceful global policy response mean that there is a chance that an economic acceleration is only delayed rather than cancelled. We are also mindful that past periods of market upheaval have presented opportunities for those willing to focus on the long-term potential of well-positioned companies.
Larry Puglia
Larry Puglia, Lead Portfolio Manager

Larry J. Puglia is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is president of the Investment Advisory Committee of the US Large-Cap Core Growth Equity Strategy. He 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. Mr. Puglia is a vice president of T. Rowe Price Group, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

Overall, we think that the long duration of the current bull market is not a particular concern. On balance, current signals suggest slightly positive returns for the market in 2020, with a highly accommodative Federal Reserve likely to offset significant volatility caused by the regulatory and political environment. Nevertheless, the possibility of extreme outcomes in either a negative or positive direction appears higher than in recent years.

Our investment approach recognizes that it is very difficult to forecast how these varying factors will develop and how much they will affect stock prices. Therefore, we continue to emphasize companies that we believe can continue to generate strong earnings and free cash flow growth in most scenarios. Essentially, we are trying to buy "all season" growth companies that we think can do reasonably well in most economic and regulatory environments. Over reasonable time horizons, we believe the quality and growth prospects of our holdings could provide relatively favorable prospects.

As always, we maintain a disciplined adherence to our rigorous process, which is rooted in bottom-up, fundamental research. In addition to uncovering underappreciated idiosyncratic stories, this approach also helps prepare us to take advantage of the market's tendency to overshoot on both the downside and the upside. Potential market overreactions often provide opportunities to trim positions into strength and add to our highest-conviction ideas on weakness.

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 of large and medium sized “blue chip” companies in the United States.

Investment Approach

  • Identify high-quality companies with leading market positions in fertile growth fields. Integrate fundamental research — emphasize sustainable growth, not momentum growth.
  • Focus on high-quality earnings, strong free cash flow growth, shareholder-oriented management, and rational competitive environments.
  • Avoid overpaying for growth, while broadly diversifying portfolios, to manage portfolio risk.

Portfolio Construction

  • Typically 100-140 stock portfolio
  • Active position sizes typically range +/- 3.00% relative to S&P 500 Index
  • Sector weights vary from 0.5X to 2.0X for primary sectors relative to S&P 500 Index

Performance (Class Q | EUR)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 9.58% 14.10% 12.30% 15.49%
Indicative Benchmark % 11.50% 8.02% 9.02% 11.15%
Excess Return % -1.92% 6.08% 3.28% 4.34%

Inception Date 02-Dec-2014

Indicative Benchmark: S&P 500 Net 30% Withholding Tax

Data as of  29-Feb-2020

Performance figures calculated in EUR

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 32.19% 18.82% 16.60% 17.06%
Indicative Benchmark % 33.10% 12.23% 12.69% 12.97%
Excess Return % -0.91% 6.59% 3.91% 4.09%

Inception Date 02-Dec-2014

Indicative Benchmark: S&P 500 Net 30% Withholding Tax

Data as of  31-Dec-2019

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 03-Apr-2020 Quarter to DateData as of 03-Apr-2020 Year to DateData as of 03-Apr-2020 1 MonthData as of 29-Feb-2020 3 MonthsData as of 29-Feb-2020
Fund % -2.42% -2.42% -13.12% -9.37% -4.62%
Indicative Benchmark % -2.14% -2.14% -19.63% -7.47% -5.28%
Excess Return % -0.28% -0.28% 6.51% -1.90% 0.66%

Inception Date 02-Dec-2014

Indicative Benchmark: S&P 500 Net 30% Withholding Tax

Indicative Benchmark: S&P 500 Net 30% Withholding Tax

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.

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.

29-Feb-2020 - Larry J. Puglia, Portfolio Manager,
U.S. stocks fell sharply in February, as fears over the coronavirus outbreak caused steep declines over the last six trading days of the month. Within the portfolio, effective stock selection in the communication services sector contributed to relative results. For example, Netflix outperformed the broader market. With worldwide travel restrictions and a growing number of people encouraged to work from home, investors have come to believe that companies like Netflix, which cater to the needs of home-bound customers, would be positively affected. We appreciate Netflix's opportunity to grow its international subscriber base, its robust user data that inform internal content creation, and the potential for significant cash flow generation as the company builds scale and its capital expenditures moderate. Favourable stock selection in the consumer discretionary and information technology (IT) sectors also boosted relative performance. Conversely, adverse stock selection in the health care sector weighed on relative returns. Within the sector, companies in the biotechnology industry had the most negative impact during the month.

Holdings

Total
Holdings
122
Largest Holding Amazon.com 8.83% Was (30-Sep-2019) 8.94%
Other View Full Holdings Quarterly data as of 31-Dec-2019
Top 10 Holdings 46.86% View Top 10 Holdings Monthly data as of 29-Feb-2020

Largest Top Contributor^

Amazon.com
By 2.29%
% of fund 8.81%

Largest Top Detractor^

Boeing
By -0.48%
% of fund 2.22%

^Absolute

Quarterly Data as of 31-Dec-2019

Top Purchase

Apple
2.58%
Was (30-Sep-2019) 0.16%

Top Sale

Boeing
2.22%
Was (30-Sep-2019) 4.00%

Quarterly Data as of 31-Dec-2019

29-Feb-2020 - Larry J. Puglia, Portfolio Manager,
The fund continues to emphasise secular growth companies with strong competitive positions in large addressable markets that support multiyear growth horizons. Prominent sectors in the portfolio—including IT, consumer discretionary, communication services, and health care—are areas that we continue to believe offer fertile ground for innovative companies to achieve above-average growth prospects. As always, we maintain a disciplined adherence to our rigorous investment process, which is rooted in bottom-up, fundamental research.

Sectors

Total
Sectors
11
Largest Sector Information Technology 35.12% Was (31-Jan-2020) 35.45%
Other View complete Sector Diversification

Monthly Data as of 29-Feb-2020

Indicative Benchmark: S&P 500 Index

Top Contributor^

Communication Services
Net Contribution 0.61%
Sector
-0.04%
Selection 0.65%

Top Detractor^

Information Technology
Net Contribution -0.74%
Sector
0.49%
Selection
-1.23%

^Relative

Quarterly Data as of 31-Dec-2019

Largest Overweight

Information Technology
By10.70%
Fund 35.12%
Indicative Benchmark 24.42%

Largest Underweight

Financials
By-7.73%
Fund 4.47%
Indicative Benchmark 12.20%

Monthly Data as of 29-Feb-2020

31-Jan-2020 - Larry J. Puglia, Portfolio Manager,
The fund continues to emphasise secular growth companies with strong competitive positions in large addressable markets that support multiyear growth horizons. Prominent sectors in the portfolio—including IT, consumer discretionary, communication services, and health care—are areas that we continue to believe offer fertile ground for innovative companies to achieve above-average growth prospects. As always, we maintain a disciplined adherence to our rigorous investment process, which is rooted in bottom-up, fundamental research.

Team (As of 31-Mar-2020)

Larry Puglia

Larry J. Puglia is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is president of the Investment Advisory Committee of the US Large-Cap Core Growth Equity Strategy. He 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. Mr. Puglia is a vice president of T. Rowe Price Group, Inc.

Mr. Puglia has 30 years of investment experience, 29 of which have been with T. Rowe Price. He joined the firm in 1990 as an investment analyst specializing in financial services stocks. His coverage included banking, consumer finance, brokerage, investment management, and diversified financial companies. Mr. Puglia also served as an investment analyst covering the pharmaceutical industry. He began his career at Peat Marwick Main & Co. in 1982, ultimately serving as a senior manager.

Mr. Puglia 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 named a Shermet Scholar. He has earned the Chartered Financial Analyst designation and is a certified public accountant.

  • Fund manager
    since
    2014
  • Years at
    T. Rowe Price
    29
  • Years investment
    experience
    30
Craig Watson

Craig Watson is a portfolio specialist in the Equity Division of T. Rowe Price. He is a member of the U.S. Large-Cap Growth team working closely with institutional clients, consultants, and prospects. Mr. Watson is a vice president of T. Rowe Price Group, Inc.

Mr. Watson has 24 years of investment experience. Prior to joining the firm in 2007, he was senior vice president of global equity sales for HSBC Securities. Mr. Watson also was employed by UBS as director of institutional equity sales.

Mr. Watson earned a B.S., magna cum laude, in accounting from Hampton University and an M.B.A. from The Wharton School, University of Pennsylvania. He also has earned the certified public accountant accreditation.

  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    24

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 $15,000 $100 $100 5.00% 150 basis points 1.61%
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.72%
Class J $10,000,000 $0 $0 0.00% 0 basis points 0.03%
Class Q $15,000 $100 $100 0.00% 65 basis points 0.76%

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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