T. Rowe Price US Large Cap Growth 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 look to identify stocks with the potential to deliver sustainable, double-digit earnings growth, capitalising on both secular and cyclical growth. We are patient investors, aiming to invest in companies trading at attractive valuations relative to their long-term potential and taking advantage of cyclical opportunities to build positions in high conviction names. 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.

30-Jun-2022 - Taymour Tamaddon, Portfolio Manager,

Shares of Snap Inc. sold off due to a combination of Apple iOS privacy changes and a significant drop in advertising demand with macro headwinds putting downward pressure on advertiser budgets. Snap's control of the impressionable and highly engaged youth demographic, relatively low ad load, and culture of innovation combine to form a tightly coiled monetization spring. We believe that network effects and innovations in technology will continue to drive user growth and engagement, paving the way for ad inventory expansion that should drive earnings growth over time.
Shares of Carvana traded lower amid a challenging backdrop that included affordability concerns for consumers and negative sentiment around a capital raise and cost-cutting measures. Despite the near-term challenges, Carvana continues to grow and take market share, while at the same time making accretive infrastructure acquisitions that enhance inventory selection, propel faster delivery times, and lower unit costs. We believe that Carvana will leverage its online retail platform and vertically integrated supply chain to disrupt and gain share of a highly fragmented used car market as it provides customers with a superior value proposition based on price and convenience.
Peloton Interactive is a developer and manufacturer of smart exercise equipment that exemplifies connected fitness, the application of technology, and sports and fitness. The stock traded lower in the wake of a tepid quarterly earnings report highlighted by below-expected fourth-quarter guidance on net subscriber additions. In addition, recent equipment price cuts point to weak underlying demand trends. The announcement in mid-June that company CFO Jill Woodworth would be stepping down also pressured shares. While we remain cautious of near-term uncertainty surrounding the company's transitioning management team and cost-cutting plan as well as the deteriorating macroeconomic environment, we believe that the stock carries attractive risk/reward potential. We also like the company's solid engagement trends and low customer churn levels.
Despite reaffirming production guidance and implementing cost-cutting measures that will extend the company's liquidity runway, shares of Rivian Automotive remained under pressure as some large private shareholders reduced their positions following the lockup expiration in May. We believe that Rivian is well positioned to benefit from the automotive industry's most powerful trend of electrification as it targets the largest, most profitable segments of this growing market (mid-size luxury and large luxury). Led by a very capable management team, we expect Rivian to benefit from strategic partnerships and business-to-business trends that should provide stability, as well as scale efficiencies for its business-to-consumer segment.
Shares of Cigna outperformed, driven by better-than-expected cost trends as utilization began to normalize. Shares also received support due to the defensive characteristics of the managed care space as equity markets continued to slide. We believe that Cigna represents an underappreciated source of steady growth at an attractive valuation and that the acquisition of Express Scripts should enhance the company's overall earnings growth profile. Cigna also has significant exposure to commercial markets in which we think that the company will be able to exercise pricing power in the near term.
Shares of Fiserv fell but outperformed in relative terms as investors appeared encouraged by the company's solid growth in merchant acceptance and continued execution by its point-of-sale program, Clover, during the recently reported quarter. We are optimistic amid signs that industry disintermediation concerns are fading. We also appreciate Fiserv's growth potential as mobile banking penetration continues to increase and as Clover expands as a share of revenue.

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