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 Blue Chip Equity Fund

Seeking superior returns from high quality US companies.

ISIN LU0133088293 Bloomberg TRPUBCI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

25.07%
$1.3b

1YR Return
(View Total Returns)

Manager Tenure

32.73%
<1yr

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.71
7.75%

Inception Date 04-May-2015

Performance figures calculated in USD

31-Oct-2021 - Paul Greene, Portfolio Manager ,
We are monitoring several key factors closely: (1) inflationary pressures, (2) Fed monetary policy around the timing of tapering asset purchases and interest rate hikes, and (3) progression of Democratic infrastructure spending and corporate tax reform initiatives. That said, we believe that secular forces driving innovation and disruption will outweigh most political and economic crosscurrents.
Paul Greene, II
Paul Greene, II, Lead Portfolio Manager

Paul Greene is the portfolio manager of the US Large-Cap Core Growth Equity Strategy in the U.S. Equity Division. He is a vice president and an Investment Advisory Committee member of the US Large-Cap Core Growth Equity, Communications and Technology Equity, and US Growth Stock Equity Strategies. He is an Investment Advisory Committee member of the Global Growth Equity and Global Focused Growth Equity Strategies. Paul is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.

Click for Manager Outlook
 

Strategy

Manager's Outlook

Looking ahead, there are several key factors that we are monitoring closely: (1) the pace and longevity of inflationary pressures as the economy gains steam, (2) Fed monetary policy decisions around the timing of tapering asset purchases and interest rate hikes, and (3) progression of Democratic initiatives around infrastructure spending and corporate tax reform. That said, as long-term-oriented investors rooted in bottom-up fundamental research, we try not to overreact to incremental changes in economic policy, with the belief that secular forces driving innovation and disruption will outweigh most political and economic crosscurrents. With elevated multiples across much of the market, we are staying mindful of valuations given the risk for interest rate hikes and subsequent multiple contraction.

In terms of relative performance, a market environment that benefits stocks with the most exposure to accelerating economic growth can present near-term challenges for the secular growers that we favor. However, as long as the high-quality companies we invest in can execute their long-term strategies and grow their cash flows rapidly, we remain confident in their potential to compound in value over a full economic cycle.

Amid uncertainty, asset returns are likely to remain uneven across many industries and companies, creating the potential to add value with our strategic investing approach but requiring careful analysis to identify opportunities and manage risk. With this in mind, we will continue to emphasize high-quality growth companies that we believe can continue to generate durable earnings and free cash flow growth in most economic and regulatory environments. As always, we maintain a disciplined adherence to our rigorous investment process, which is rooted in bottom-up, fundamental research.

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.
  • 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 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

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Fund % 32.73% 25.07% 23.78% 18.52% 3.82%
Indicative Benchmark % 42.29% 20.82% 18.26% 14.28% 6.98%
Excess Return % -9.56% 4.25% 5.52% 4.24% -3.16%

Inception Date 04-May-2015

Manager Inception Date 30-Sep-2021

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

Data as of 31-Oct-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 24.12% 19.82% 22.78% 18.09%
Indicative Benchmark % 29.43% 15.37% 16.24% 13.29%
Excess Return % -5.31% 4.45% 6.54% 4.80%

Inception Date 04-May-2015

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

Data as of 30-Sep-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 26-Nov-2021 Quarter to DateData as of 26-Nov-2021 Year to DateData as of 26-Nov-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % 0.63% 4.48% 20.08% 3.82% 2.45%
Indicative Benchmark % -0.15% 6.82% 23.43% 6.98% 5.03%
Excess Return % 0.78% -2.34% -3.35% -3.16% -2.58%

Inception Date 04-May-2015

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

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

Performance figures calculated in USD

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.

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-Oct-2021 - Paul Greene, Portfolio Manager ,
U.S. stocks advanced in October, rebounding strongly from September’s losses. As measured by various Russell indices, large-cap shares outperformed small- and mid-caps. Russell indices also indicated that growth stocks outperformed value across all market capitalizations. Within the S&P 500 Index, all sectors advanced. Consumer discretionary, energy, and information technology stocks posted the largest gains, while communication services and consumer staples lagged. Within the portfolio, consumer discretionary detracted the most from relative returns due to stock selection. An unfavourable overweight allocation and stock selection in the communication services sector hurt relative returns. The portfolio’s lack of exposure to the energy sector also lowered returns; we have minimal exposure to stocks in this sector as it generally lacks compelling growth opportunities that meet our investment criteria. On the positive side, stock selection and a favourable overweight allocation in the information technology sector boosted results. Stock choices in health care also bolstered relative returns.

Holdings

Total
Holdings
91
Largest Holding Amazon.com 9.54% Was (30-Jun-2021) 9.47%
Other View Full Holdings Quarterly data as of  30-Sep-2021
Top 10 Holdings 52.44% View Top 10 Holdings Monthly data as of  31-Oct-2021

Largest Top Contributor^

Alphabet
% of fund 9.32%

Largest Top Detractor^

Amazon.com
% of fund 9.54%

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

Quarterly Data as of 30-Sep-2021

Top Purchase

Amazon.com
9.52%
Was (30-Jun-2021) 9.47%

Top Sale

Salesforce.com
0.28%
Was (30-Jun-2021) 1.84%

Quarterly Data as of 30-Sep-2021

30-Sep-2021 - Paul Greene, Portfolio Manager ,

Given the current environment, we continue to emphasize secular growth companies with strong competitive positions in large addressable markets that support multiyear growth horizons. Prominent sectors in the portfolio, including information technology, 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.

Information Technology

Within the information technology sector, we focus on innovative business models that can take advantage of transformational change. We favor companies with durable business models that address large and growing markets, including electronic payment processing and public cloud computing services.

We trimmed our position in Salesforce.com to achieve a more neutral level of exposure following a significant lower weighting as a result of the Russell 1000 Growth Index rebalance. We appreciate the company's recurring revenue business model and its exposure to secular growth tailwinds, but would prefer to put capital to work elsewhere in higher conviction ideas.

Shares of Intuit have continued their sustained rally since early-2020 lows, and we trimmed our position on strength. Intuit is a leading provider of financial software for consumers, small to mid-size businesses, and professional accountants. We believe the market underappreciates Intuit's dominant position and the long-term durability of its business.

We increased our position in Square, a mobile payment service provider focusing on small and mid-size merchants. We see value in the synergies that Square is building across its small and mid-size and Cash App segments. We think Square is positioned to be a long-term winner on the right side of secular change within the digital payments space.

Consumer Discretionary

We are optimistic about stock-specific opportunities within the consumer discretionary sector. We favor businesses benefiting from the secular shift of consumer spending to online products and services. We believe industries such as physical retail and traditional media are secularly challenged, and we will continue to emphasize companies within the sector that we think are on the right side of change and disruption.

We added shares of Carvana, a leading online platform for direct-to-consumer sales of used cars. In our view, the company's digital focus and in-house distribution network improve the car-buying experience for consumers while creating the potential for superior profitability at scale. We also believe Carvana should continue to take share in this fragmented market.

Health Care

Our allocation to health care is composed of select therapeutics and medical device companies that we believe have limited exposure to potential regulatory pressures. Therapeutics companies that are pioneering unique treatments and innovative medical device and equipment manufacturers that are focused on meaningfully improving patient outcomes represent some of the more attractive opportunities in the sector. Within the sector we also emphasize managed care companies positioned to benefit from industry consolidation as well as the increasing focus on providing cost-effective solutions.

We increased our position in biopharmaceutical company Eli Lilly. We believe the shares offer an attractive risk/reward trade-off at current prices due to several underappreciated, late-stage development programs with high probabilities of success that should gain increased visibility and revenue-generating potential over the near term to midterm.

We eliminated our position in Cigna as part of a larger effort to consolidate our managed care exposure within our highest conviction names in the space.

Sectors

Total
Sectors
8
Largest Sector Information Technology 40.82% Was (30-Sep-2021) 40.48%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: S&P 500 Index

Top Contributor^

Information Technology
Net Contribution 0.47%
Sector
0.11%
Selection 0.36%

Top Detractor^

Consumer Discretionary
Net Contribution -0.61%
Sector
-0.01%
Selection
-0.60%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Communication Services
By14.77%
Fund 25.60%
Indicative Benchmark 10.83%

Largest Underweight

Financials
By-8.39%
Fund 3.02%
Indicative Benchmark 11.41%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Paul Greene, Portfolio Manager ,
In terms of relative performance, a market environment that benefits stocks with the most exposure to accelerating economic growth can present near‑term challenges for the secular growers that we favour. However, as long as the high‑quality companies we invest in can execute their long‑term strategies and grow their cash flows rapidly, we remain confident in their potential to compound in value over a full economic cycle. With this in mind, we will continue to focus on high-quality growth companies that we believe can continue to generate durable earnings and free cash flow growth in most economic and regulatory environments.

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 1.59%
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.69%
Class Q $2,500,000 $100,000 $100 0.00% 65 basis points 0.75%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.