​ US Blue Chip Equity Fund*

A large/mid cap core growth fund seeking companies with strong earnings growth and durable free cash flow.

At a glance:

Strategy inception date

30 June 1993

Comparator benchmark

S&P 500 Index
Net 30% Withholding Tax

Ratings
US Blue Chip Fund ratings
PUGLIA_Larry
Larry Puglia
Lead Portfolio Manager
Paul Green T.Rowe Price
Paul Greene
Associate Portfolio Manager
Why T. Rowe Price US Blue Chip Equity Fund?
Our investment universe comprises companies that operate in growth sectors of the economy with a market cap typically greater than US$8 billion. We believe that investing in high-quality, large-cap US companies with sustainable competitive advantages can generate attractive long-term returns for moderate risk.
Specifically, we are seeking to identify businesses with the following characteristics:
Attractive business models in growth industries

Favour companies operating in fertile growth fields that can generate durable sales and earnings growth.

Above-average, durable revenue & earnings growth + Significant free cash flow generation

Durable and sustainable earnings and free cash flow growth drive investment returns over time. We focus on identifying sustainable growth, not momentum growth.

Seasoned, shareholder-oriented management

Strong management teams who skilfully reinvest cash flow can significantly enhance company performance.

We believe these characteristics can lead to sustainable high earnings and free cash flow growth, which drives shareholder value. We aim to avoid overpaying for growth, however, and seek to take advantage of cyclical opportunities to build long-term positions in high quality companies trading at attractive valuations relative to their long-term potential.

Fundamental research is key to identifying these successful long-term investments and we believe our bottom-up investment approach provides the ability to deliver consistent returns in a variety of market environments.

1 An “all-seasons” growth strategy

We invest in a portfolio of 100-140 companies, built from the bottom-up but broadly diversified across growth-oriented sectors and industries to help manage risk. We believe investing in leading business franchises with the sustainable competitive strengths to weather economic cycles can deliver more consistent returns for investors.

2 A consistently applied approach

Lead manager Larry Puglia has managed this strategy, utilising the same trusted approach, for over 25 years. Based on the ground in the US, he is supported by an experienced US equities management team and one of the largest buy-side analyst platforms in the industry.

3 Long term conviction holdings

We build high conviction positions that can allow for the compounding of earnings growth by focusing on companies’ long-term potential rather than short-term results. Around one-third of assets in the strategy is invested in companies we have owned for 10 years or more.

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.

We seek to buy all-season growth companies that can generate strong earnings and free cash flow growth in most economic and regulatory environments.

Larry J. Puglia / Portfolio Manager

Diversified exposure to leading US companies in growth-oriented sectors
Diversified portfolio
  • Typically 100-140 stock portfolio
  • Active position sizes typically +/- 3% relative to S&P 500 Index*

Consistent approach

  • Experienced, highly resourced investment team
  • Lead manager at the helm for over 25 years
Long-term, low turnover
  • Focused on companies’ long-term opportunities rather than short-term results.
  • Historically low turnover of portfolio holdings.
*Not a formal benchmark; shown only for comparison purposes.

Key Risks – The following risks are materially relevant to the fund (refer to prospectus for further details): 

Style risk: Different investment styles typically go in and out of favour depending on market conditions and investor sentiment

Volatility risk – the performance of the fund has a risk of high volatility.

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* T. Rowe Price Funds SICAV – US Blue Chip Equity Fund

Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors and via the links titled “See all SICAV fund data” above.

Past performance is not a reliable indicator of future performance.

Morningstar Analyst Rating™ calculated annually. Silver rating as at 31 December 2019. Morningstar star rating as at 31 December 2019. FE Crown Fund Rating as at 31 December 2019. RSM Rating as at 31 December 2019.

All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2)
may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For further information on ratings methodology please visit www.morningstar.com

This rating relates to the SICAV Fund which is managed in the same way as the OEIC Fund but has a longer track record. © 2020 FE. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FE, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by FE, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete, or accurate. FE shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. FE does not guarantee that a fund will perform in line with its FE Crown Fund Rating as it is a reflection of past performance and Rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for
making any investment decision. www.trustnet.com

Other US Equity funds

Want to know more about T. Rowe Price and our products?

1 Total U.S. Equity Assets: 521.4 Billion GBP. As of 31 March 2020. US Equity AUM includes assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.

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

Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors and via the links titled “See all SICAV fund data” above.