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 29-Nov-2016
Performance figures calculated in USD
Strategy
Rapid progress with a first wave of new vaccines is clearly the most positive sign for the year ahead. As the pandemic hopefully recedes and economies reopen, a broader economic recovery is likely to benefit many of the sectors that were most damaged by the virus. While a rapid economic recovery could also bring an accelerated earnings recovery, this might not translate into strong equity returns, with much of the recovery already priced into the markets. We are also mindful that aggressive monetary and fiscal stimulus measures that have helped fuel the sustained recovery in equities, and the potential for additional stimulus in 2021, could lead to higher inflation over time.
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After initial expectations for a divided government, Democrats ultimately won control of the White House as well as both chambers of Congress after a Senate runoff election was held during the first few days of 2021. Markets may begin to factor in the likelihood of more progressive policies on taxes and tighter regulation, which could result in a negative market shock. We are monitoring these risks, although the narrow margins in the House and Senate could make sweeping regulatory or tax policy changes unlikely.
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Going forward, it will be critical to seek out companies that appear well positioned to emerge from the pandemic with lasting competitive advantages, while avoiding firms that face longer-term secular challenges. 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
- Roughly 50-60 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 Q)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 11.97% | 10.18% | N/A | 13.75% |
| Indicative Benchmark % | 16.62% | 11.06% | N/A | 14.86% |
| Excess Return % | -4.65% | -0.88% | N/A | -1.11% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 14.41% | 12.05% | N/A | 14.11% |
| Indicative Benchmark % | 17.75% | 13.52% | N/A | 15.49% |
| Excess Return % | -3.34% | -1.47% | N/A | -1.38% |
Recent Performance
| Month to DateData as of 05-Mar-2021 | Quarter to DateData as of 05-Mar-2021 | Year to DateData as of 05-Mar-2021 | 1 MonthData as of 31-Jan-2021 | 3 MonthsData as of 31-Jan-2021 | |
|---|---|---|---|---|---|
| Fund % | -0.69% | 1.40% | 1.40% | -0.17% | 14.44% |
| Indicative Benchmark % | 0.83% | 2.49% | 2.49% | -1.04% | 13.91% |
| Excess Return % | -1.52% | -1.09% | -1.09% | 0.87% | 0.53% |
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.
Holdings
Total
Holdings
65
Largest Top Contributor^
Alphabet
By 1.69%Largest Top Detractor^
Waste Connections
By -0.06%Top Purchase
Broadridge Financial Solutions (N)
1.04%Top Sale
PNC Financial Services Group (E)
0.00%
Sectors
Total
Sectors
11
Top Contributor^
Industrials & Business Services
Net Contribution 0.32%Top Detractor^
Communication Services
Net Contribution -0.36%Largest Overweight
Industrials & Business Services
Largest Underweight
Communication Services
Team (As of 25-Feb-2021)
Jeff Rottinghaus is a portfolio manager in the U.S. Equity Division. He is president of the US Large-Cap Core Equity Strategy and chairman of its Investment Advisory Committee. In addition, he is a vice president and an Investment Advisory Committee member of the US Quantitative U.S. and US Dividend Growth Strategies. Jeff also is a vice president of T. Rowe Price Group, Inc.
Jeff’s investment experience began in 2001 when he joined T. Rowe Price, beginning in the U.S. Equity Division. Prior to this, Jeff was employed by Ernst & Young as a financial consultant. Jeff also was part owner of software consulting firm Kelly Levey & Associates.
Jeff earned a B.S. in business administration from Bowling Green State University and an M.B.A. in finance from the University of Pennsylvania, The Wharton School. He is a certified public accountant.
- Fund manager2016
since - Years at19
T. Rowe Price - Years investment20
experience
Eric Papesh is a portfolio specialist based in London in the U.S. Equity Division. Eric supports the US Smaller Companies Equity and US Large-Cap Equity Income Strategies offered in the Europe, Middle East, and Africa and Asia-Pacific regions. Eric is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Eric’s investment experience began in 1994, and he has been with T. Rowe Price since 2014, beginning in the ISG division as a portfolio specialist. Prior to this, Eric was employed by Russell Investments where he focused on U.S. equity investment strategies.
Eric earned a B.A. in business administration, with concentrations in finance and information systems, and an M.B.A. in business administration from the University of Washington. Eric has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Years at6
T. Rowe Price - Years investment26
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 | UK Tax Reporting Status |
|---|---|---|---|---|---|---|---|
| Class A | $1,000 | $100 | $100 | 5.00% | 150 basis points | 1.62% | Yes |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 65 basis points | 0.70% | Yes |
| Class Q | $1,000 | $100 | $100 | 0.00% | 65 basis points | 0.77% | 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.
Jeff Rottinghaus is a portfolio manager in the U.S. Equity Division. He is president of the US Large-Cap Core Equity Strategy and chairman of its Investment Advisory Committee. In addition, he is a vice president and an Investment Advisory Committee member of the US Quantitative U.S. and US Dividend Growth Strategies. Jeff also is a vice president of T. Rowe Price Group, Inc.