New T. Rowe Price fund raises US$1bn in 6 months 

The launch of the T. Rowe Price Funds SICAV - US Structured Research Equity Fund for European investors on December 15th, 2023, has exceeded all internal expectations regarding speed and scale of flows. The fund is actively managed, with an analyst-driven core US equity portfolio of 200-275 stocks benchmarked versus the S&P 500 Index. The fund has been set-up aiming to blend the best of active and passive investing to our valued European clients.  Reaching this milestone in such a short period of time underscores our unwavering commitment to providing our clients with the investment solutions they need.

Our Fastest Scaling Fund in EMEA

The success of the US Structured Research Equity Fund in attracting over US$1 billion of investments in its first six months makes it our fastest scaling strategy in the region to date. This exceptional achievement reflects the trust and confidence that European investors have placed in our expertise and ability to generate alpha consistently in what many consider to be the most efficient equity market in the world. We currently manage over US$75 billion in client assets across multiple US Structured Research Equity Strategy vehicles¹. The track record of the strategy can be found on Bloomberg (PRCOX).

What does it take to beat the S&P 500?

The Strategy has consistently delivered strong performance and demonstrated its ability to navigate challenging market cycles successfully. The portfolio utilises an analyst-driven approach with c. 30 of the firm’s US analysts responsible for buy and sell decisions within their coverage, with rules-based portfolio construction designed to limit active risk with benchmark-like volatility and characteristics. Over the past 25 years, the Strategy has delivered an average 12-month excess return of more than 1% vs the S&P 500, with a tracking error of 1.1% and information ratio of 1. Remarkably, the Strategy has outperformed the S&P 500 in both down and up markets as well as market environments led by growth and value, with average annual excess returns of 0.8-1.2%*. Crucially, the Strategy is designed to be less influenced by style or sector leadership changes, meaning that stock selection has been the primary source of returns with broad contribution across different sectors. By bringing this proven success to European investors, we aim to provide them with access to an investment approach that has stood the test of time. Combining our expertise in fundamental research with a disciplined approach to portfolio construction, we believe the fund offers a unique and compelling investment solution that sets us apart in the market.

Conclusion:

By bringing this compelling investment proposition with a solid 25-year track record of success in the US to European investors, we aim to provide them with access to an investment approach that has stood the test of time. Combining our expertise in fundamental research with a disciplined approach to portfolio construction, we believe the fund offers a unique and attractive investment solution that sets us apart in the market. As we continue to meet the evolving needs of our European clients, we look forward to further strengthening our partnership and helping them achieve their investment goals.

_{¹ As of March 2024; firm-wide AUM includes assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.}

_{* Net of fee excess returns of US Structured Research Equity Composite over rolling twelve-month periods from June 1999 – February 2024.}

¹ The fee rate used to calculate net returns is 1.35%. This represents the maximum fee rate applicable to all composite members. Past performance is not a reliable indicator of future performance.

² Preliminary - subject to adjustment.

T. Rowe Price (TRP) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. TRP has been independently verified for the 27-year period ended June 30, 2023 by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed incompliance with the GIPS standards and have been implemented on a firm wide basis. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S., international, and global strategies but excluding the services of the Private Asset Management group. As of October 1, 2022, there is no minimum asset level for portfolio inclusion into the composite. Prior to October 2022, the minimum asset level for equity portfolios to be included in composites was $5 million. The minimum asset level for fixed income and asset allocation portfolios to be included in composites was $10 million. Valuations are computed and performance reported in U.S. dollars.

Gross performance returns are presented before management fees and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the maximum fee rate applicable to all composite members as shown above. Gross performance returns are presented gross of withholding taxes on dividends, interest income, and capital gains. Please be advised if a client is subject to withholding taxes the actual performance of all other portfolios in the composite subject to withholding may be lower than the composite returns presented gross of withholding taxes. Gross performance returns are used to calculate presented risk measures. Effective June 30, 2013, portfolio valuation and assets under management are calculated based on the closing price of the security in its respective market. Previously portfolios holding international securities may have been adjusted for after-market events. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within a composite for the full year. Dispersion is not calculated for composites in which there are five or fewer portfolios.

Some portfolios may trade futures, options, and other potentially high-risk derivatives that may create leverage and generally represent in aggregate less than 10% of a portfolio.

Benchmarks are taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from the composite.

Composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow greater than or equal to 10% of portfolio assets. The temporary removal of such an account occurs at the beginning of the measurement period in which the significant cash flow occurs and the account re-enters the composite on the last day of the current month after the cash flow. Additional information regarding the treatment of significant cash flows is available upon request.

The firm's list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds are available upon request. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Risks – the following risks are materially relevant to the portfolio:

• Small/ mid cap risk – Small and mid-size company stock prices can be more volatile than stock prices of larger companies.

General Portfolio Risks:

• ​Equities can lose value rapidly for a variety of reasons and can remain at low prices indefinitely.
  
• ESG and Sustainability risk may result in a material negative impact on the value of an investment and performance of the portfolio.
• Geographic concentration risk may result in performance being more strongly affected by any social, political, economic, environmental or market conditions affecting those countries  or regions in which the portfolio's assets are concentrated.
• Investment portfolio risk - Investing in portfolios involves certain risks an investor would not face if investing in markets directly.
• Market risk may subject the portfolio to experience losses caused by unexpected changes in a wide variety of factors.
• Management risk may result in potential conflicts of interest relating to the obligations of the investment manager.
• Operational risk may cause losses as a result of incidents caused by people, systems, and/or processes.

Important Information

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, risks and sustainability information are located in the prospectus which is available with the key investor information documents (KIID) and/or key information document (KID) in English and in a local 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 ocuments 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.Funds.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.

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