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SICAV

US Large Cap Growth Equity Fund

Seeking to identify investments with the potential to deliver double-digit earnings growth.

ISIN LU0174119775 Bloomberg TRPLGEI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

19.68%
$2.2b

1YR Return
(View Total Returns)

Manager Tenure

3.34%
2yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.29
6.27%

Inception Date 31-Jul-2003

Performance figures calculated in USD

Other Literature

31-Aug-2019 - Taymour Tamaddon, Portfolio Manager,
We remain cautiously positive about the global economy and financial markets, although the recent escalation in trade tensions could trigger renewed volatility and further impede growth. Consensus opinion is expecting a reacceleration in company earnings later in the year, which we think will depend on improving global growth, particularly outside the U.S. Meanwhile, the global economic outlook remains subdued, and earnings momentum has turned negative in both Europe and Japan.
Taymour Tamaddon
Taymour Tamaddon, Lead Portfolio Manager

Taymour Tamaddon is the portfolio manager of the US Large-Cap Growth Equity Strategy in the U.S. Equity Division of T. Rowe Price. Mr. Tamaddon also is a vice president and a member of the Investment Advisory Committees for the Health Sciences, New America Growth, Growth Stock, Blue Chip Growth, and Capital Appreciation Strategies. He is a vice president of the T. Rowe Price Institutional International Funds, Inc., and the T. Rowe Price International Funds, Inc. Mr. Tamaddon also is a vice president of T. Rowe Price Group, Inc.

Click for Manager Outlook
 

Strategy

Manager's Outlook

Heightened uncertainty may contribute to stock market volatility in the back half of 2019 as the market seeks clarity on key issues like the U.S.-China trade situation and global monetary policy. Furthermore, as the U.S. presidential election campaigns gain momentum and controversial policy issues are debated, political headline risk may become more of a concern.

Overall, we are cautious but optimistic that there are still sufficient market drivers in place and think more volatile market conditions could produce potentially attractive buying opportunities for long-term investors. We will continue to rely on our expertise to navigate the market, focusing on investing in high-quality companies. Leveraging the rigorous research and unique insights from our talented analyst platform gives us an important edge as we sift through the noise to identify attractive idiosyncratic growth stories.

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 from large capitalization companies in the United States that have the potential for above-average and sustainable rates of earnings growth.

Investment Approach

  • Scrutinize both company and industry- level fundamentals to identify companies with characteristics that support sustainable double-digit earnings growth.
  • Focus on high-quality earnings, strong free cash flow growth, shareholder-oriented management, and rational competitive environments.
  • Exploit differences between secular and cyclical trends.
  • Limit portfolio holdings to the most attractive growth opportunities across industries.

Portfolio Construction

  • Typically 60-75 stock portfolio
  • Individual position sizes typically range +/- 1.00% to 4.00% relative to Russell 1000 Growth Index
  • Sector weights will vary from 0.5X to 3.0X for primary sectors relative to Russell 1000 Growth Index

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 3.34% 19.68% 14.39% 16.32% 21.01%
Indicative Benchmark % 3.88% 16.56% 12.57% 14.89% 18.27%
Excess Return % -0.54% 3.12% 1.82% 1.43% 2.74%

Inception Date 31-Jul-2003

Manager Inception Date 31-Dec-2016

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of  31-Aug-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 8.74% 22.34% 14.66% 17.18%
Indicative Benchmark % 11.13% 17.58% 12.90% 15.75%
Excess Return % -2.39% 4.76% 1.76% 1.43%

Inception Date 31-Jul-2003

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Data as of  30-Jun-2019

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 16-Sep-2019 Quarter to DateData as of 16-Sep-2019 Year to DateData as of 16-Sep-2019 1 MonthData as of 31-Aug-2019 3 MonthsData as of 31-Aug-2019
Fund % 0.90% 1.32% 19.20% -2.92% 5.80%
Indicative Benchmark % 0.73% 2.16% 23.87% -0.81% 8.34%
Excess Return % 0.17% -0.84% -4.67% -2.11% -2.54%

Inception Date 31-Jul-2003

Indicative Benchmark: Russell 1000 Growth Net 30% Index

Indicative Benchmark: Russell 1000 Growth Net 30% Index

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.

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-Aug-2019 - Taymour Tamaddon, Portfolio Manager,
Major U.S. stock indexes declined in August as the deepening trade conflict with China and global growth concerns weighed on sentiment. Within the portfolio, the communication services sector detracted the most from relative results due to unfavourable stock selection, particularly within the interactive media and services industry. Adverse stock selection in the health care sector also cramped relative returns. On the positive side, effective stock selection in the industrial and business services sector contributed to relative performance. Within the sector, shares of Boeing rallied after the global aerospace giant signaled that its grounded fleet of 737 MAX aircraft could soon resume operations. Overall, we remain favourable toward Boeing’s duopoly position in global commercial aerospace, superior product offering, and expectations for robust cash generation. We expect Boeing to benefit from increases in production as global air traffic continues to grow and from strong increases in free cash flow through 2020. Elsewhere, an overweight stance in the utilities sector also boosted relative performance.

Holdings

Total
Holdings
68
Largest Holding Amazon.com 8.62% Was (31-Mar-2019) 8.40%
Other View Full Holdings Quarterly data as of 30-Jun-2019
Top 10 Holdings 49.66% View Top 10 Holdings Monthly data as of 31-Aug-2019

Largest Top Contributor^

Amazon.com
By 1.53%
% of fund 8.54%

Largest Top Detractor^

Alphabet
By -1.92%
% of fund 7.18%

^Absolute

Quarterly Data as of 30-Jun-2019

Top Purchase

Facebook
6.13%
Was (31-Mar-2019) 5.12%

Top Sale

UnitedHealth Group
0.73%
Was (31-Mar-2019) 2.61%

Quarterly Data as of 30-Jun-2019

30-Jun-2019 - Taymour Tamaddon, Portfolio Manager,

Overall, we remain constructive on the U.S. economy and think company fundamentals look relatively healthy. However, the choppy market environment may continue due to several factors, including slowing earnings growth and uncertainty surrounding U.S.-China trade policy. More volatile market conditions could produce potentially attractive buying opportunities for long-term investors.

Information Technology

Disruptive business models and technologies within the sector continue to present compelling investment opportunities. Secular demand for public cloud computing services continues to be a growth driver in the segment. We also continue to favor companies driven by the convergence of communications and computing, including internet software companies, and those that will benefit from broad global tailwinds in digital payments.�

  • We bought shares of Marvell Technology Group, a digital semiconductor company focused on data storage and connectivity. We feel the company stands to benefit as fundamentals improve and the market better appreciates its improved business mix and operational execution. We also think recent acquisitions will prove accretive to earnings as management aims to strengthen the company's computing and networking capabilities in communications and enterprise data center markets.
  • Shares of open-source software provider Red Hat rallied after its longtime partner, IBM, announced its intention to buy the company. After the runup in stock price, we sold shares and redeployed the proceeds to fund more compelling opportunities.

Consumer Discretionary

We have a sizable position in the consumer discretionary sector and are constructive on stock-specific opportunities within the sector. We are focused on businesses benefiting from the secular shift of consumer spending to online retail, as well as companies positioned to take advantage of the long-term growth in online travel services.

  • We added shares of Alibaba Group Holding during the quarter. While trade tensions are a near-term overhang on the stock, we remain constructive on the long-term fundamentals and expect the Chinese internet giant's investments in its cloud business and offline retail to pay off by expanding the company's total addressable market. Moreover, the company's rich data on user behavior across its different services also create ample opportunity for monetization, while its leadership in online retail offers exposure to rising household incomes in China and other emerging markets.
  • Booking Holdings, formerly known as Priceline, is a worldwide provider of online travel services. We continued to trim our exposure to the stock as we expect growth to moderate as the business matures. We are modestly overweight in Booking Holdings as we still think the company's expansions internationally and into non-hotel properties present attractive opportunities for growth.

Health Care

We remain focused on finding opportunities in the health care sector that can take advantage of lasting trends such as managed care industry consolidation, innovations in medical equipment, and robotic technology. In therapeutics, our emphasis is on select companies that have strong fundamentals and the potential to bring additional new drugs to market in areas with large, unmet clinical needs.

  • HCA Healthcare is the largest private hospital owner and operator in the United States. We bought shares during the quarter as we think HCA is uniquely positioned as an industry consolidator and should continue to benefit from both its leading industry position and aging demographics.
  • Despite reporting better-than-expected topline growth and margin improvement, shares of UnitedHealth Group sold off after presidential candidate Bernie Sanders revealed his vision for a "Medicare for all" plan. We sold shares during the quarter to moderate our position size; however, we continue to like UnitedHealth Group as we think it is well diversified and should see accelerated earnings growth as a result of improving Medicare performance and continued growth in its Medicaid business. Furthermore, we feel a single-payer health care system is extremely unlikely, but we also recognize the meaningful shift in sentiment around stocks in the managed care industry, as well as the reality that political rhetoric is only likely to intensify as the 2020 U.S. presidential election approaches.

Sectors

Total
Sectors
9
Largest Sector Information Technology 30.12% Was (31-Jul-2019) 29.43%
Other View complete Sector Diversification

Monthly Data as of 31-Aug-2019

Indicative Benchmark: Russell 1000 Growth Index

Top Contributor^

Information Technology
Net Contribution 0.39%
Sector
-0.09%
Selection 0.49%

Top Detractor^

Health Care
Net Contribution -0.73%
Sector
-0.43%
Selection
-0.30%

^Relative

Quarterly Data as of 30-Jun-2019

Largest Overweight

Communication Services
By8.17%
Fund 19.65%
Indicative Benchmark 11.49%

Largest Underweight

Information Technology
By-7.25%
Fund 30.12%
Indicative Benchmark 37.37%

Monthly Data as of 31-Aug-2019

31-Aug-2019 - Taymour Tamaddon, Portfolio Manager,
We continue to favour many of our high-conviction holdings in the IT and health care sectors, where valuations look relatively compelling given the trajectories of their underlying businesses. Overall, we remain confident that we are well positioned for an uncertain environment as a range of economic and policy risks, including the threat of trade protectionism and the impact of an appreciation of the U.S. dollar, could potentially lead to more volatility in the remainder of 2019.

Team (As of 31-Aug-2019)

Taymour Tamaddon

Taymour Tamaddon is the portfolio manager of the US Large-Cap Growth Equity Strategy in the U.S. Equity Division of T. Rowe Price. Mr. Tamaddon also is a vice president and a member of the Investment Advisory Committees for the Health Sciences, New America Growth, Growth Stock, Blue Chip Growth, and Capital Appreciation Strategies. He is a vice president of the T. Rowe Price Institutional International Funds, Inc., and the T. Rowe Price International Funds, Inc. Mr. Tamaddon also is a vice president of T. Rowe Price Group, Inc.

Mr. Tamaddon has 16 years of investment experience, 15 of which have been with T. Rowe Price. He joined the firm in 2004 after serving as a summer intern with T. Rowe Price in 2003, covering the eye care industry. Prior to this, Mr. Tamaddon was employed by Amazon.com in the areas of finance and merchandising. He also was a consultant with Booz Allen Hamilton, specializing in the energy industry.

Mr. Tamaddon earned a B.S., cum laude, in applied physics from Cornell University. He also earned an M.B.A., with high distinction, from the Tuck School of Business at Dartmouth, where he was an Edward Tuck Scholar. Mr. Tamaddon also has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2017
  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    16
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 28 years of investment experience, 27 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.

  • Years at
    T. Rowe Price
    29
  • Years investment
    experience
    30
Joseph Fath

Joe Fath is the portfolio manager for the US Growth Stock Strategy and is a member of the portfolio management team for the US Large-Cap Growth Equity Strategy in the U.S. Equity Division. He is a member of the U.S. Equity Steering Committee. Mr. Fath is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Fath has 18 years of investment experience, 17 of which have been with T. Rowe Price. He joined the firm in 2002 as an analyst covering gaming, lodging, cruise lines, airlines, and air freight and logistics companies after serving as a summer intern for the firm in 2001. Mr. Fath was also the chief financial officer and cofounder of Broadform, Inc., a start-up educational/software company. In addition, he worked as director of operations analysis for Players International, a multi-jurisdictional gaming operator in the United States. Mr. Fath was also employed by Coopers & Lybrand as a senior associate in the Business Assurance and Financial Advisory Services Group.

Mr. Fath earned a B.S., with honors, in accounting from the University of Illinois at Urbana-Champaign. He also earned an M.B.A., with honors, in finance and entrepreneurial management from The Wharton School, University of Pennsylvania. Mr. Fath is also a certified public accountant.

  • Years at
    T. Rowe Price
    17
  • Years investment
    experience
    19
David L. Rowlett, CFA

David Rowlett is an associate portfolio manager for the US Large-Cap Growth Equity Strategy in the U.S. Equity Division of T. Rowe Price. He is a vice president and member of the Investment Advisory Committees of the New America Growth, Blue Chip Growth, Growth Stock, and Institutional Large-Cap Core Growth Strategies. Mr. Rowlett is a vice president of T. Rowe Price Group, Inc.

Mr. Rowlett has 15 years of investment experience, 10 of which have been with T. Rowe Price. Prior to joining the firm in 2008, he was an analyst and portfolio manager for Neuberger Berman in New York.

Mr. Rowlett earned a B.B.A., cum laude, in finance from the University of Georgia and an M.B.A. from the University of North Carolina at Chapel Hill. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    11
  • Years investment
    experience
    16
Ronald Taylor

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

Mr. Taylor has 30 years of investment experience, 15 of which have been at T. Rowe Price. Prior to joining the firm in 2003, he was employed by Zurich Scudder Investments as an equity product specialist and later as the director of Institutional Client Service. Mr. Taylor also previously worked for Chancellor Capital Management as an equity product specialist and at Putnam Investments as an equity analyst and later in new business development and client service. He began his career as a high yield bond analyst at Columbia Savings & Loan.

Mr. Taylor earned a B.A. in economics from the University of California at Los Angeles and an M.B.A. from Harvard Business School.

  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    30

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount Minimum Subsequent Investment Minimum Redemption Amount Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges UK Tax Reporting Status
Class A $15,000 $100 $100 5.00% 150 basis points 1.60% Yes
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.71% Yes
Class J $10,000,000 $0 $0 0.00% 0 basis points 0.03% No
Class Q $15,000 $100 $100 0.00% 65 basis points 0.76% 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. 

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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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