T. Rowe Price, the US$1.35*trn global asset manager, has launched a core US equity fund that harnesses the stock-selection skill of the group’s renowned research platform.
Launched as a Luxembourg domiciled SICAV, the T. Rowe Price Funds SICAV – US Structured Research Equity Fund is based on an existing US$65bn US-domiciled strategy – which has a two-decade track record of outperformance over the S&P 500, delivered with low tracking error.
T. Rowe Price is one of the largest managers of active US equities, with US$595bn of assets under management. With a history dating back to 1937, T. Rowe Price’s long-term relationships with companies enable unparalleled access to key corporate decision-makers and industry authorities.
The actively managed T. Rowe Price US Structured Research Equity Fund typically holds 200-275 positions, with stock selection based purely on the fundamental insights of about 30 analysts from the group’s US equity research team. The portfolio’s sector, industry, and style exposures are designed to be similar to those of the S&P 500 Index, with stock selection expected to be the primary source of excess returns.
Participating analysts deploy capital to investments within their specific area of expertise with the most attractive risk adjusted return outlook. A disciplined approach to portfolio construction and risk management ensures the strategy exhibits similar volatility and characteristics to the S&P 500, while the rules-based approach limits active risk and isolates the stock-picking strengths of T. Rowe Price’s analysts.
Nat Terry, head of UK and Ireland, T. Rowe Price, comments: “With a track record of investing in the US stock market spanning more than 85 years, T. Rowe Price has an unparalleled understanding of American industries and companies. We pride ourselves on our bottom-up fundamental research, so it is extremely pleasing to offer UK investors access to a portfolio that harnesses the best of what we do. A core US equity allocation, this strategy has consistently outperformed the S&P 500 index for more than two decades, irrespective of market direction. This launch is being supported with attractive terms for founding shareholders.”
