SICAV
US Equity Fund
Formerly US Large-Cap Equity Fund
Style agnostic investing in larger US companies.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(3 Years)
Tracking Error
(3 Years)
Inception Date 30-Jun-2016
Performance figures calculated in EUR
Strategy
U.S. stocks advanced in the fourth quarter, with major indexes reaching all-time highs by the end of a strong year for equities in 2019. Investors responded positively to the Federal Reserve's accommodative monetary policy moves, while news of "phase one" U.S.-China trade talks also boosted equities. Although many details of a publicized agreement remain unclear, markets welcomed the development as a step toward a resolution.
�
While U.S. economic data remain largely positive as consumers continue to benefit from record low unemployment and rising wages, we remain relatively cautious as we are mindful of unresolved global trade issues and the upcoming U.S. presidential election, both of which could cause headlines that impact market movement. However, an accommodative Federal Reserve, along with easing monetary policy around the globe, should be supportive to markets as we begin 2020. Should volatile market conditions arise, we believe it could create compelling buying opportunities for high-quality companies.
�
Within the portfolio, we expect stock selection will be the primary driver of longer-term outperformance. 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
- 50 or fewer 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 A | EUR)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 26.66% | 11.61% | N/A | 12.96% |
| Indicative Benchmark % | 25.24% | 12.90% | N/A | 14.38% |
| Excess Return % | 1.42% | -1.29% | N/A | -1.42% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 30.37% | 10.28% | N/A | 12.23% |
| Indicative Benchmark % | 33.10% | 12.23% | N/A | 14.37% |
| Excess Return % | -2.73% | -1.95% | N/A | -2.14% |
Recent Performance
| Month to DateData as of 24-Feb-2020 | Quarter to DateData as of 24-Feb-2020 | Year to DateData as of 24-Feb-2020 | 1 MonthData as of 31-Jan-2020 | 3 MonthsData as of 31-Jan-2020 | |
|---|---|---|---|---|---|
| Fund % | 1.10% | 4.54% | 4.54% | 3.40% | 9.08% |
| Indicative Benchmark % | 2.20% | 3.44% | 3.44% | 1.21% | 7.27% |
| Excess Return % | -1.10% | 1.10% | 1.10% | 2.19% | 1.81% |
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.
Holdings
Total
Holdings
65
Largest Top Contributor^
Microsoft
By 0.86%Largest Top Detractor^
Boeing
By -0.08%Top Purchase
Verizon Communications (N)
1.74%Top Sale
Exelon (E)
0.00%
Sectors
Total
Sectors
11
Top Contributor^
Energy
Net Contribution 0.42%Top Detractor^
Health Care
Net Contribution -0.31%Largest Overweight
Utilities
Largest Underweight
Information Technology
Team (As of 06-Feb-2020)
Jeff Rottinghaus is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is president of the US Large-Cap Core Equity and Growth & Income Strategies and chairman of the strategies' Investment Advisory Committees. In addition, he is a vice president and an Investment Advisory Committee member of the Dividend Growth and Capital Appreciation Strategies. Mr. Rottinghaus is a vice president of T. Rowe Price Group, Inc.
Mr. Rottinghaus has 18 years of investment experience, all of which have been with T. Rowe Price. Prior to joining the firm in 2001, he was a financial consultant with Ernst & Young. Mr. Rottinghaus is a former part owner of software consulting firm Kelly-Levey & Associates.
Mr. Rottinghaus earned a B.S. in business administration from Bowling Green State University and an M.B.A. in finance from The Wharton School, University of Pennsylvania. He also is a certified public accountant.
- Fund manager2016
since - Years at18
T. Rowe Price - Years investment19
experience
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 at5
T. Rowe Price - Years investment25
experience
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 | 1.67% |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 65 basis points | 0.72% |
| Class Q | $15,000 | $100 | $100 | 0.00% | 65 basis points | 0.82% |
Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.
Jeff Rottinghaus is a portfolio manager in the U.S. Equity Division of T. Rowe Price. He is president of the US Large-Cap Core Equity and Growth & Income Strategies and chairman of the strategies' Investment Advisory Committees. In addition, he is a vice president and an Investment Advisory Committee member of the Dividend Growth and Capital Appreciation Strategies. Mr. Rottinghaus is a vice president of T. Rowe Price Group, Inc.