Active Management

Ready for what lies ahead

As a leading, global active manager, we believe our clients’ portfolios are too important to be on autopilot.

That’s why our team of over 600 investment professionals globally conduct rigorous research to uncover opportunities for clients, going beyond the numbers, into the field and extracting forward-looking insights.

Our approach to active management, backed by the deep experience of our investment teams and the prudent risk management frameworks we apply, is called Strategic Investing. Our Strategic Investing approach has guided us since 1937 and is aimed at delivering long-term success for your clients’ portfolios.

Bighorn

Why Strategic Investing?

We seek returns that go beyond the limitations of simply following an index. Our time-tested approach guides our investment decisions and helps us anticipate and plan for the future.

Our 661 investment professionals don’t just sit behind their screens, they go out into the field to get the answers needed for your clients’ investments. They’re constantly on the lookout, analysing the markets and the companies within them.

Our field research gives us an edge for your clients by:

Seeing firsthand

Seeing company operations firsthand, where it all happens

Interviewing top managers, employees, competitors, and consumers

Asking direct questions to get the full story behind the numbers

Analysing the details to make skilled, independent judgements

Our funds are managed by skilled portfolio managers who are driven by a passion for exploration and understanding. They leverage our firm’s size, resources, and rigorous proprietary research to go deeper. So you can feel more confident about your clients’ investments.

Our portfolio managers average:

23 years in the industry and

18 years with T. Rowe Price

(Data as of 31/12/19)

Why experience matters:

It means we’ve seen it all, good markets and bad, over many market cycles.

So as conditions change, we’re able to remain focused on achieving superior long-term results for you and your clients.

Our people think independently but act collaboratively. They assess when to move with the crowd and when to move against it; when to quickly take advantage of market fluctuations, and when to hold tight.
Think
Think independently
Act
Act collaboratively
Act
Informed decisions

A view from our analysts

Going beyond the numbers reveals the full story

Our team of 94 US equity analysts go beyond the numbers to identify growth opportunities and mitigate risks, in an array of sectors and specialisms.

By getting out into the field, we gain insights and a deeper understanding of where a company or industry stands and where it could go in the future.

1

Our investment professionals in the field finding the full story for you:

US equity research report

How T. Rowe Price’s Strategic Investing approach has benefitted results for clients.

Research has shown that active manager performance can be cyclical and that some specific manager characteristics may contribute to long‑term success.

2

Our results:

We reviewed the performance of 18 T. Rowe Price institutional diversified active US equity strategies to quantify the value added by our strategic investing approach.

We found that the vast majority of our strategies generated positive average excess returns, net of fees, over their benchmarks across multiple time periods.

94%

outperformed their benchmarks over a majority of 3-year and 5-year rolling periods, while…

100%

outperformed over a majority of 10-year rolling periods1
Past performance is not a reliable indicator of future performance.

We credit our success to our efforts to go beyond the numbers and get ahead of change, which we believe leads to better decisions and prudent risk management.

Our own study shows that a skilled active management approach can help navigate challenging market conditions

Us Equity Specialists

A heritage of success

All figures are as at 31 December 2019 unless stated otherwise.

1 The study spanned the 20 years up to the end of December 2018 for older strategies, or since inception for newer ones, and measured the returns of the relevant composites net of fees and trading costs. It covered 18 of the 24 institutional diversified active U.S. equity strategies currently offered by T. Rowe Price. In instances where a portfolio manager managed multiple strategies in a particular sub asset class style (e.g., U.S. small cap growth), we included only the strategy with the most assets under management to avoid double counting. Benchmarks included the S&P 500, Russell 1000 Growth, Russell 2000 Growth, Russell 1000 Value, Russell 2000 Value, Russell 2500, Russell 2000, Russell Midcap Growth, and Russell Midcap Value Indexes. Strategy performance was measured against the designated benchmarks over rolling 1 , 3 , 5 , and 10 year periods.

2 T. Rowe Price Funds OEIC – US Large Cap Growth Equity Fund, T. Rowe Price Funds SICAV – US Large Cap Growth Equity Fund.
3 T. Rowe Price Funds SICAV – US Blue Chip Equity Fund.
4 T. Rowe Price Funds OEIC – US Equity Fund, T. Rowe Price Funds SICAV – US Equity Fund.
5 T. Rowe Price Funds OEIC – US Large Cap Value Equity Fund, T. Rowe Price Funds SICAV – US Large Cap Value Equity Fund.
6 T. Rowe Price Funds OEIC – US Smaller Companies Equity Fund, T. Rowe Price Funds SICAV – US Smaller Companies Equity Fund