US All-Cap Opportunities 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

Deliver long-term returns from attractive U.S. companies with high-quality earnings streams, strong free cash flow growth and shareholder-oriented management.

31-Mar-2022 - Taymour Tamaddon, Portfolio Manager,

We purchased shares of enterprise software company Atlassian. We like the company's strong management team, impressive product portfolio, and large opportunity set. We also appreciate the long growth runway Atlassian has as it benefits from emerging software development trends, cloud migration, and a low-cost flywheel sales model. In our view, the stock carries significant upside potential given the recent pullback in growth-oriented names.
We bought shares of Fiserv on relative weakness. The stock continued to suffer from negative sentiment regarding the potential disruption of the fintech space by new competitors. We are optimistic about Fiserv's growth potential as mobile banking penetration continues to increase and as the company's point-of-sale platform, Clover, expands as a share of revenue.
We sold shares of software-as-a-service leader Splunk. While we still see Splunk as a category-defining company in the machine data collection and analysis space, we recognize the potential for a protracted executive search and transition timeline following the CEO's unexpected departure. The company is also in the midst of a challenging transition from on-premise to cloud-based services.
We sold shares of Meta Platforms in light of emerging long-term risks to the business, including rising competitive threats and shifting consumer social media behavior. The company also continues to face privacy headwinds from app tracking transparency initiatives that have hurt industrywide advertising revenues. While we have confidence in the company's mitigation efforts, Meta's advanced, hyper-optimized advertising solutions mean that the company faces a deeper reset than others as it designs workarounds to restore the signal loss. Meta is one of two leading platforms that we expect to benefit from a multi-decade transition from offline to online advertising, and it offers investors a rare combination of scale, growth, and profitability at an attractive valuation with multiple catalysts that include a collection of under-monetized surfaces and social commerce initiatives.
We sold shares of hospital operator HCA Healthcare in order to fund purchases of attractively valued names elsewhere in the portfolio. In our view, the stock's risk/reward profile is less favorable coming off of an exceptional 2021 as coronavirus tailwinds begin to fade. Over the long term, we continue to have a favorable view of HCA due to its excellent management team, strategic long-term capital deployment strategy, and attractive geographic mix.

31-Mar-2022 - Taymour Tamaddon, Portfolio Manager,

Shares of Intuit sold off as management guided revenue lower to reflect a slow start to tax season. The stock also fell victim to the broad sell-off among growth names with demanding valuations early in the year as investors digested the rising interest rate environment on the horizon. We believe Intuit's dominant market position with three leading franchises and the ongoing transition to software-as-a-service with recurring revenue will support above-average earnings growth over the long term.
An underweight in Apple weighed on relative results. Shares held up well during the broad sell-off in growth names as investors continue to treat the stock as a tech staple, particularly amid flights to safety. Despite a chip shortage, iPhone sales surprised on the upside, while Services segment revenue continued to demonstrate strong growth on the back of App Store strength. We maintain an underweight position relative to the benchmark due to concerns over saturation and elongation of replacement cycles for smartphones and Apple's ability to grow Services enough to sustain high levels of growth.
Shares of Ingersoll-Rand slid as the company continued to deal with supply chain challenges and inflation, which have weighed on segment-level margins. However, the company continues to benefit from solid demand, with strong order growth and a robust backlog. Moreover, revenue is recovering cyclically, which, combined with organic growth initiatives and sizable spending on mergers and acquisitions, should drive topline growth over the near term.
Shares of Becton, Dickinson and Company traded higher as management raised earnings guidance to reflect strong organic revenue growth within the core business, better-than-expected results from margin expansion initiatives, and continued demand for COVID-19 testing. We believe that Becton, Dickinson and Company is a high-quality business that is demonstrating steady core business growth as the company continues to reduce leverage and improve its capital structure.

Past performance is not a reliable indicator of future performance.

The Funds are sub-funds of the T. Rowe Price Funds OEIC, an investment company with variable capital incorporated in England and Wales which is registered with the UK Financial Conduct Authority 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 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 and via www.troweprice.com.

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.

IA Sector: Many UK funds are grouped into sectors by the Investment Association (the “IA”) (the trade body that represents UK investment managers), to help investors to compare funds with broadly similar characteristics. Investors may compare the fund against the performance of the Europe Excluding UK sector. This sector represents the average performance of certain funds that invest at least 80% of their assets in European shares and exclude UK securities. It can therefore serve as a method of comparing the fund’s performance with other funds that have broadly similar characteristics. The fund is not constrained to or managed in line with this sector. Source for IA Sector Data: © Morningstar. All Rights Reserved.

Disclosures on Vendor Indices can be found here.

Risks

Typical Investor

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