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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 Large-Cap Value Equity Fund

Invest in large US companies with hidden value and potential overlooked by the market majority.

ISIN LU0133100338 Bloomberg TRPULVI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

10.13%
$993.1m

1YR Return
(View Total Returns)

Manager Tenure

43.57%
19yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.12
4.63%

Inception Date 27-Mar-2002

Performance figures calculated in USD

30-Sep-2021 - Heather McPherson, Portfolio Manager ,
The outlook for U.S. stocks remains uncertain. While we are cautiously optimistic about economic growth, the key risk remains the amount of recovery already priced in at current valuation levels. We continue to focus on companies trading at attractive valuations due to controversy or stress that we believe is addressable in the intermediate to long term.
John D.  Linehan, CFA
John D. Linehan, CFA, Co-Portfolio Manager

John D. Linehan is the portfolio manager for the U.S. Large Cap Equity Income Strategy, U.S. Select Value Strategy and co-portfolio manager for the US Large-Cap Value Equity Strategy in the U.S. Equity Division. In addition, he is the chief investment officer of Equity and a member of the firm's U.S. Equity Steering and Equity Brokerage and Trading Control Committees. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

 

Strategy

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 are selling at discounted valuations relative to their historical average and/or the average of their industries.

Investment Approach

  • Focus on relative value relationships to opportunistically identify attractively valued companies.
  • Fundamental research is key to uncovering companies with potential for stock price mean reversion.
  • Integrate qualitative inputs to assess potential for improved investor perception.
  • Verify relative valuation anomalies through quantitative analysis.
  • Balance valuation analysis and qualitative overlay.
  • 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 70-80 stock portfolio
  • Individual positions typically are below 3%, but higher conviction ideas can range to 5%
  • Sector weights will typically vary from 0.5X to 2.0X of primary value sectors of the Russell 1000 Value Index
  • Reserves will range from 0% to 2%

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 43.57% 10.13% 10.71% 13.09%
Indicative Benchmark % 34.18% 9.27% 10.13% 12.69%
Excess Return % 9.39% 0.86% 0.58% 0.40%

Inception Date 27-Mar-2002

Indicative Benchmark: Russell 1000 Value Net 30% Index

Data as of 30-Sep-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 43.57% 10.13% 10.71% 13.09%
Indicative Benchmark % 34.18% 9.27% 10.13% 12.69%
Excess Return % 9.39% 0.86% 0.58% 0.40%

Inception Date 27-Mar-2002

Indicative Benchmark: Russell 1000 Value Net 30% Index

Data as of 30-Sep-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 19-Oct-2021 Quarter to DateData as of 19-Oct-2021 Year to DateData as of 19-Oct-2021 1 MonthData as of 30-Sep-2021 3 MonthsData as of 30-Sep-2021
Fund % 1.84% 1.84% 22.58% -0.95% 1.72%
Indicative Benchmark % 4.40% 4.40% 20.71% -3.53% -0.93%
Excess Return % -2.56% -2.56% 1.87% 2.58% 2.65%

Inception Date 27-Mar-2002

Indicative Benchmark: Russell 1000 Value Net 30% Index

Indicative Benchmark: Russell 1000 Value 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.

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.

30-Sep-2021 - Heather McPherson, Portfolio Manager ,
U.S. equities declined in September, as investor concerns grew about the passing of the bipartisan infrastructure spending legislation as well as legislation to raise or eliminate the debt ceiling. The market also struggled to advance as intermediate- and long-term U.S. Treasury rates climbed. Within the portfolio, financials contributed the most to relative returns due to stock selection, as certain companies rallied late in the month on the expectation of higher interest rates and as the U.S. Federal Reserve signalled its intent to taper bond buying by the end of the year. Our holdings in health care, notably within the pharmaceuticals industry, also helped relative results, as did our stock selection in materials. Within the latter, our holdings in the chemicals industry were beneficial. Conversely, consumer discretionary detracted the most from relative performance due to stock selection, primarily in the hotels, restaurants, and leisure industry. Stock choices in information technology also hindered relative results, particularly our equipment names.

Holdings

Total
Holdings
82
Largest Holding Wells Fargo 3.63% Was (30-Jun-2021) 3.55%
Other View Full Holdings Quarterly data as of  30-Sep-2021
Top 10 Holdings 26.35% View Top 10 Holdings Monthly data as of  30-Sep-2021

Largest Top Contributor^

American International Group
% of fund 2.81%

Largest Top Detractor^

GE
% of fund 3.37%

^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

Wells Fargo
3.53%
Was (30-Jun-2021) 3.55%

Top Sale

JPMorgan Chase
0.27%
Was (30-Jun-2021) 1.09%

Quarterly Data as of 30-Sep-2021

30-Jun-2021 - Heather McPherson, Portfolio Manager ,

Over the second quarter, we used valuation disparities between names and attractive valuations within the certain sectors to continue fine-tuning the portfolio's exposure over the period. As cyclical areas outperformed early in the period, we trimmed names in the other sectors, resulting in a decreased beta quarter over quarter. We are confident in how our portfolio is positioned as we advance through 2021.

Health Care

We identified pockets of opportunity in the sector over the period, as relative valuations appeared attractive particularly within the health care providers and services industry following coronavirus-driven uncertainty for demand.

  • We purchased additional shares of managed care company Anthem. Overall, we believe there is a significant disconnect between fundamentals and multiples and that Anthem continues to trade at an attractive relative valuation.
  • We initiated a position in managed health care and insurance company Cigna late in the quarter following relative weakness in the name. We believe Cigna is a well-managed company that will be able to drive higher margins versus peers, particularly in its specialty and retail networks. We also believe its Pharmacy Benefit Management contract with Prime Therapeutics will continue to increase in profitability over time.

Materials

The cyclical industries within the materials sector have faced challenges due to large swings in raw materials costs; supply challenges; uncertainty amid the coronavirus pandemic; and, more recently, surging demand.

  • We eliminated our position in specialty chemical conglomerate DuPont de Nemours. While we continue to appreciate the attractive end markets DuPont de Nemours serves, we used relative strength in the stock as a source of funds to invest in names with more attractive risk/reward characteristics.

Information Technology

We generally view the information technology sector as cyclical, with many companies operating at different stages within their industry's specific cycle. Within the sector, our largest exposure is to the semiconductors and semiconductor equipment industry.

  • We trimmed our position in global networking products vendor Cisco Systems throughout the period. We appreciate the company's recent outperformance and efforts to defend share in data centers but believe that there are underappreciated fundamental headwinds that could potentially stifle revenue and earnings per share growth down the line.

Financials

We like several names in this sector, and we tend to prefer defensively positioned names with solid balance sheets and diversified revenue streams that are trading at attractive relative valuations.

  • We established a position in regional bank Huntington Bancshares. While the bank continues to aggressively invest to grow market share, creating a temporary headwind to expenses for the business by taking advantage of peers who have moderated spending, we believe this will set Huntington Bancshares up as a leader among regional banks this cycle. We also believe the potential for surprising economic strength and corresponding loan growth are underappreciated by the market.
  • We sold shares of custody bank State Street, particularly toward the end of the quarter. We appreciate the consistent growth of the company over the past several years but reduced our position size to invest in opportunities with more room to expand margins and more attractive risk/reward profiles.

Sectors

Total
Sectors
11
Largest Sector Financials 23.42% Was (31-Aug-2021) 23.59%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: Russell 1000 Value Index

Top Contributor^

Financials
Net Contribution 0.95%
Sector
0.07%
Selection 0.88%

Top Detractor^

Industrials & Business Services
Net Contribution -0.44%
Sector
0.00%
Selection
-0.44%

^Relative

Quarterly Data as of 30-Sep-2021

Largest Overweight

Financials
By1.99%
Fund 23.42%
Indicative Benchmark 21.43%

Largest Underweight

Communication Services
By-3.46%
Fund 4.82%
Indicative Benchmark 8.29%

Monthly Data as of 30-Sep-2021

30-Sep-2021 - Heather McPherson, Portfolio Manager ,
We like several names in the industrials and business services sector, where we invest in companies that reach many different end markets and have solid business models and/or an ability to generate strong cash flows. In September, we added to certain companies that have attractive valuations and have streamlined their businesses around growth. Conversely, we also sold shares of certain companies whose risk/reward characteristics have become less attractive.

Team (As of 01-Oct-2021)

John D.  Linehan, CFA

John D. Linehan is the portfolio manager for the U.S. Large Cap Equity Income Strategy, U.S. Select Value Strategy and co-portfolio manager for the US Large-Cap Value Equity Strategy in the U.S. Equity Division. In addition, he is the chief investment officer of Equity and a member of the firm's U.S. Equity Steering and Equity Brokerage and Trading Control Committees. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

John's investment experience began in 1987, and he has been with T. Rowe Price since 1998, beginning as an investment analyst, covering paper and forest products and the airline industry, in the U.S. Equity Division. From 2003 to 2009, he was the portfolio manager of the US Value Strategy, and from 2009 to 2014, he was head of U.S. Equity and chairman of the U.S. Equity Steering Committee. Prior to T. Rowe Price, John was an executive in the oil trading and consulting industry, first as vice president and managing director for Delaney Petroleum, then as vice president and managing director for E.T. Petroleum. He also was an associate in mortgage-backed securities trading at Banker Trust NY.

John earned a B.A. in economics from Amherst College and an M.B.A. from Stanford Graduate School of Business, where he was the Henry Ford II Scholar, an Arjay Miller Scholar, and the winner of the Alexander A. Robichek Award in finance. John also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
    since
    2002
  • Years at
    T. Rowe Price
    23
  • Years investment
    experience
    32
Mark S.  Finn, CFA, CPA

Mark Finn is the portfolio manager of the US Large-Cap Value Equity Strategy, which includes the Value Fund, and co-portfolio manager of the Large-Cap Value Fund in the U.S. Equity Division. He is chairman of the Investment Advisory Committee of the U.S. Large Cap Value Equity Strategy. Mark is also a vice president and an Investment Advisory Committee member of the US Large-Cap Equity Income, Global Natural Resources Equity, US Quantitative U.S., US Quantitative Large, US Mid-Cap Value Equity, and Retirement Strategies.

Mark's investment experience began in 1998, and he has been with T. Rowe Price since 1990, beginning as controller of Investment Services in the Finance department. After that, he was principal accounting officer for the firm’s realty income strategies and an equity research analyst. Prior to T. Rowe Price, Mark was employed by Price Waterhouse LLP as an auditor, working on engagements for both public and private companies.  

Mark earned a B.S. in accounting from the University of Delaware. He also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
    since
    2010
  • Years at
    T. Rowe Price
    30
  • Years investment
    experience
    23
Heather K. McPherson

Heather McPherson is a co-portfolio manager for the US Large-Cap Value Equity Strategy and an associate portfolio manager for the US Large-Cap Equity Income Strategy in the U.S. Equity Division. Heather is a member of the firm's U.S. Equity Steering Committee and is a vice president and an Investment Advisory Committee member of the US Large-Cap Equity Income, US Large-Cap Core Equity, US Quantitative Large, Global Natural Resources Equity, US Mid-Cap Value Equity, and US Large-Cap Value Equity Strategies. She is a trustee of the T. Rowe Price Foundation. Heather also is a vice president of T. Rowe Price Group, Inc. 

Heather's investment experience began in 2001, and she has been with T. Rowe Price since 2002, beginning in the U.S. Equity Division. Prior to this, Heather was employed by Salomon Smith Barney as a summer intern, covering the storage area networking industry. Heather also was employed by Putnam Lovell Securities, Inc., as a vice president of finance and administration.

Heather earned a B.S. in managerial economics from the University of California, Davis, and an M.B.A. from Duke University, The Fuqua School of Business.

  • Fund manager
    since
    2015
  • Years at
    T. Rowe Price
    19
  • Years investment
    experience
    21
Gabriel Solomon

Gabe Solomon is the portfolio manager of the Financial Services 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 Dividend Growth Equity, US Growth Stock, US Large-Cap Core Equity, US Large-Cap Value Equity, and Mid-Cap Value Equity Strategies. He also is an Investment Advisory Committee member of the Global Focused Growth Equity, Global Growth Equity, and Global Value Equity Strategies. Gabe is a vice president of T. Rowe Price Group, Inc.  

Gabe's investment experience began in 2002, and he has been with T. Rowe Price since 2004, beginning in the U.S. Equity Division as a research analyst. Prior to this, Gabe was employed by Wellington Management Company, LLP, as an equity analyst intern covering Indian information technology services companies. Before that, he was a management consultant at Sibson Consulting Group.

Gabe earned a B.A., summa cum laude, in economics from the University of California, Los Angeles (UCLA), where he was a UCLA Regents Scholar and a member of Phi Beta Kappa. He also earned an M.B.A. in finance and accounting from the University of Pennsylvania, The Wharton School. While at Wharton, he served as head fellow for the Wharton Investment Management Fund, a student-run small-cap value portfolio.

  • Fund manager
    since
    2021
  • Years at
    T. Rowe Price
    17
  • Years investment
    experience
    19
Caleb N. Fritz, CFA

Caleb Fritz is a portfolio specialist in the U.S. Equity Division. He acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects and supports the large-cap value strategies. Caleb also is a vice president of T. Rowe Price Group, Inc.

Caleb's investment experience began in 2000. He was with T. Rowe Price from 2000 to 2003, beginning in the Participant Service Center, and returned in 2010 until the present. Prior to his current position, he was a lead portfolio analyst providing analytical support to investment, client service, and marketing staff for the firm’s large-cap value and health sciences portfolios. Prior to returning to the firm, Caleb was employed by Legg Mason Capital Management as an associate analyst covering the health care sector.  

Caleb earned a B.A. and an M.A. from the University of South Florida. He also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    21
Eric Papesh, CFA, BA, MBA

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 at
    T. Rowe Price
    6
  • Years investment
    experience
    26

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 1.61% 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.