US Large Cap Value Equity Fund*

A large cap fund seeking companies undervalued relative to their long‑term economic value.

At a glance:

Strategy inception date
31 March 1990
Comparator benchmark
Russell 1000 Value Index Net 15%

Ratings 

US_Large_Cap_Value_Equity@2x
Heather McPherson
Heather McPherson

Co-Portfolio Manager

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Why T. Rowe Price US Large Cap Value Equity Fund?

We seek to invest in higher quality large cap companies which we believe offer hidden value and upside potential that are overlooked by the market. Our investment approach is designed to spot opportunities in neglected high quality companies as they arise, understand the catalysts for recovery, and likely timing and make high-conviction investments in the right companies at the right time.

1 Finding unloved opportunities
We invest in higher quality companies facing short-term controversy. These companies have strong market positions, valuable assets, strong brands and effective management teams built to overcome challenges. We believe our fundamental research, disciplined approach and access to management give us an edge in finding these companies.
2 Focus on value and quality
In contrast to other value-oriented investment strategies that may rely more on deep value or absolute valuation, we focus on relative value, searching for companies with solid businesses, strong balance sheets, and durable earnings profiles that are inexpensive relative to their history, sector or the market. We balance our valuation analysis with qualitative factors to identify the most compelling valuation opportunities.
3 High-conviction portfolio invested for the long term
We maintain a well-diversified portfolio of typically between 70-80 holdings. Our high conviction bottom-up approach seeks to deliver returns in a variety of market environments. Our emphasis on companies with better business models ensures investments have adequate financial staying power until the predicted catalyst for improving sentiment emerges.

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 capitalisation companies in the United States that are selling at discounted valuations relative to their historical average and/or the average of their industries.
We invest in high-quality companies when they are facing controversy. Our shareholders are rewarded as the near-term challenges are addressed, the controversy is resolved, and earnings growth gets back on track.

Heather McPherson / Co-Portfolio Manager

Diversified exposure to US value companies
Focus on relative value
  • Value metrics on earnings, revenues and dividend streams
  • Relative to history, peers and the market
Long-term focus
  • Investment decisions focus on companies’ long-term opportunity rather than short-term results
  • Disciplined investors with historically moderate level of portfolio turnover
High conviction portfolio
  • 70-80 stocks
  • Individual holdings up to 3% (highest conviction ideas up to 5%)
  • Sector weights 0.5x-2x benchmark
  • Generally US$9bn+ market cap
High quality bias
  • Companies with a strong financial outlook and potential for improved investor sentiment

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

Small and mid-cap risk – Stocks of small and mid-size companies can be more volatile than stocks of larger companies.

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Resources

*T. Rowe Price Funds SICAV – US Large Cap Value Equity Fund and T. Rowe Price Funds OEIC – US Large Cap Value 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” and “See all OEIC fund data” available in the resources section above.

Past performance is not a reliable indicator of future performance.

Morningstar star rating as at 30 September 2019. FE Crown Fund Rating as at 30 June 2019. RSM Rating as at 1 October 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. © 2019 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

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1 Total U.S. Equity Assets: 593.3 Billion GBP. As of 30 September 2019. 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” and “See all OEIC fund data” available in the resources section above.