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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.

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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SICAV

US Blue Chip Equity Fund

Seeking superior returns from high quality US companies.

ISIN LU0860350494 Bloomberg TRPBCEQ:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

25.01%
$1.3b

1YR Return
(View Total Returns)

Manager Tenure

32.69%
<1yr

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.70
7.77%

Inception Date 13-May-2013

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

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 % -4.89% -0.19% 14.65% 3.84% 2.46%
Indicative Benchmark % -0.61% 5.55% 21.96% 6.98% 5.03%
Excess Return % -4.28% -5.74% -7.31% -3.14% -2.57%

Inception Date 13-May-2013

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

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

Performance figures calculated in USD

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 UK Tax Reporting Status
Class A $1,000 $100 $100 5.00% 150 basis points 1.59% Yes
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.69% Yes
Class Q $2,500,000 $100,000 $100 0.00% 65 basis points 0.75% Yes

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

T. Rowe Price Funds SICAV and its sub-funds are domiciled in Luxembourg and therefore considered offshore funds for UK tax purposes. Selected share classes of T. Rowe Price Funds SICAV have been designated “Reporting Funds” by HM Revenue & Customs (HMRC) under the guidelines of the UK Offshore Funds Regulation. These share classes report all relevant tax information to HMRC on an annual basis. Details on the information reported are outlined in the SICAV Shareholder Tax Reporting document that is available in the Fund Range Docs drop-down. Investors in “Reporting Fund” share classes who are considered United Kingdom residents for tax purposes will have any accrued gains treated as a capital gain rather than income upon sale or other disposal of their shares.