T. Rowe Price US Large Cap Value Equity Fund

Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

The listed funds are not an exhaustive list of funds available. Visit www.funds.troweprice.com to see the full range of funds offered by T. Rowe Price, including those that consider environmental and social characteristics as part of their investment process. For up to date information regarding any T. Rowe Price fund's investment strategy, please see the relevant fund KID and prospectus.

Overview

Strategy

Fund Summary

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. The promotion of environmental and/or social characteristics is achieved through the fund's commitment to maintain at least 10% of the value of its portfolio invested in Sustainable Investments, as defined by the SFDR. Additionally, we apply a proprietary responsible screen (exclusion list). The manager is not constrained by the fund’s benchmark, which is used for performance comparison purposes only.

Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

30-Apr-2020 - Taymour Tamaddon, Portfolio Manager,

U.S. equities bounced off bear-market lows in April and marked their best monthly returns since 1987, as investors anticipated a partial reopening of the global economy. Within the portfolio, stock selection and an overweight position in communication services contributed to relative results. Facebook shares advanced following better-than-expected quarterly results due to a surge in usage of its platforms, particularly WhatsApp and Instagram. A lack of exposure to consumer staples, where attractive growth opportunities are difficult to find, boosted relative returns further. A favourable overweight in the consumer discretionary sector also added. Here, we favour businesses benefitting from the secular shift of consumer spending to online products and services. We believe industries such as physical retail and traditional media are secularly challenged; therefore, we plan to continue emphasising companies within the sector that we think are on the right side of change and disruption. Conversely, an overweight in utilities hurt relative results. We continue to maintain a small allocation to utilities stocks as we feel the deregulation of the sector has improved the opportunity for companies to achieve sustainable, long-term growth.

31-Mar-2020 - Taymour Tamaddon, Portfolio Manager,

Periods of stress and crisis often can often lead to meaningful changes. Many of the innovative technology companies that we prefer are operating in huge addressable markets but face ongoing inertia when it comes to persuading customers that pursuing new ways of doing things is worth the effort. Moments like the current crisis can push companies and consumers to embrace changes much faster than they would have done under normal circumstances. Broadly speaking, this should be supportive of the powerful secular trends that we tend to invest behind.

31-Dec-2021 - Heather McPherson, Associate Portfolio Manager,

We purchased shares of Fiserv. The company has an attractive valuation with significant growth prospects. Its Clover asset, a cloud-based point-of-sale platform, has also experienced robust growth, which is encouraging.
We sold shares of Applied Materials on relative strength. The company recovered from its pandemic bottom, and we appreciate the company's strong end markets and believe there will be very strong long-term foundry and logic demand.
Texas Instruments, semiconductor designer and manufacturer, has also performed well over recent periods. We sold shares on strength.
We sold shares of JPMorgan Chase and Morgan Stanley on recent strong performance. We continue to value the names but chose to shift our exposure into companies with more attractive valuations and risk/reward ratios.
We initiated a position in Citigroup. In our view, Citigroup is trading at an attractive valuation and has a compelling dividend yield. We also appreciate the company's plan to repurchase shares.
We purchased shares of Cummins. The valuation relative to its industrial peers is extremely attractive, and we believe there is a good amount of untapped value in the stock.
Caterpillar is an early-cycle stock, and as we've moved further into the cycle, we took the opportunity to rotate out of the company and redeploy the funds into names where we have higher conviction. We eliminated our position during the period.
We sold shares of Nielsen Holdings. We believe there are idiosyncratic secular concerns that this company faces and elected to move into investments with more compelling risk/reward characteristics.
Rockwell Automation is structurally and secularly well positioned around automation. However, we sold shares of the fully valued company and invested some of the assets in Siemens, which also has an automation platform and a more attractive sum-of-its-parts valuation.

30-Jun-2022 - Gabe Solomon, Co-Portfolio Manager,

Chubb shares fell but outpaced the sector for the quarter. While the stock was pressured throughout the period by macroeconomic concerns, the company delivered robust first-quarter results at the end of April, driven by strength in underwriting and growth in premiums. Later on, Chubb management announced a new share buyback program and a dividend increase. We continue to believe that Chubb has best-in-class operating results and is attractively valued. In our view, in addition to being positioned to continue benefiting from strength in property and casualty pricing, Chubb is uniquely positioned to grow market share, which should contribute to returns over time.
TotalEnergies shares benefited from a solid earnings report, helped along by a boost from trading liquefied natural gas (LNG) and high refining margins. The company also was selected to participate in a USD 29 billion LNG project, which will help TotalEnergies fill the production gap that could potentially result from abandoning its Russian assets. We believe TotalEnergies is an attractive long-term investment from these levels, as the company will benefit from higher natural gas prices, pays an attractive and sustainable dividend, and is among the best-positioned energy companies for the energy transition.
International Paper shares ended the quarter lower but outpaced the sector overall. The company continued to benefit from strong demand for its corrugated and containerboard packaging products, as well as from its ability to increase containerboard prices in recent periods. We continue to believe that International Paper stands to benefit from favorable long-term fundamentals and an elevated capital incentive curve.
International Flavors & Fragrances outpaced the sector but ended lower due to broad market weakness. Shares continued to benefit from the company's ability to push through costs and navigate the current inflationary environment. We continue to like the name, and in the long term, we expect synergies from the Nutrition & Biosciences business merger to help drive growth and durable demand in an uncertain economic environment.
Shares of News Corp fell. Despite the company reporting financial results that reflected strong growth, shares faced headwinds from News Corp's exposure to real estate, advertising, and streaming, all of which were impacted by rising rates, uncertainty around the economy, and high-profile misses from competitors, respectively. While we remain cognizant of the headwinds that News Corp faces, we appreciate the company's collection of high-quality assets with durable growth profiles. Further, we view News Corp's risk/reward ratio as attractive at current levels and believe that shares are trading at a discount to a sum-of-the-parts valuation.
Shares of Walt Disney fell and underperformed the sector. The company was impacted when a leading streaming competitor reported a loss in subscribers, causing investors to question the sustainability of growth within streaming video providers, including Disney+. Later, Walt Disney presented uneventful financial earnings, featuring a small Disney+ beat and strength in the parks segment, which were not enough to banish the overhang of negative streaming-related sentiment. We continue to appreciate the company's efforts to transition to global streaming and believe the market undervalues the durability of Disney+'s subscriber growth.
Shares of GE fell as the company delivered a mixed earnings report, with beats in its aviation and power segments but losses in its renewables segment. The aviation segment continued to be pressured by supply chain challenges, which were also reflected in management's forward guidance, and this negatively impacted sentiment. Despite this, we continue to favor GE for management's focus on streamlining the business and believe that there is substantial value in GE that will be unlocked as the company begins to split next year.

Past performance is not a reliable indicator of future performance.

The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents and/or key information document (KID) in English and in an official language of the jurisdictions in which the Funds are registered for public sale, 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. They can also be found along with a summary of investor rights in English at www.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.

Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class. The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.

Before deciding to invest in the fund, you should read the offering document/prospectus (including its investment objectives, policies and any risk warnings) which are available and may be obtained from any appointed distributors.

The specific securities identified and described in this website do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.

Benchmark: Investors may use the benchmark to compare the fund’s performance. The benchmark has been selected because it is similar to the investment universe used by the investment manager and therefore acts as an appropriate comparator. The investment manager is not constrained by any country, sector and/or individual security weightings relative to the benchmark and has complete freedom to invest in securities that do not form part of the benchmark.

Disclosure on Vendor Indices can be found here.

Risks

Typical Investor