U.S. Risk Managed Dynamic Allocation SMA

Investment Approach

A focused large-cap core equity approach using stock selection as the primary source of excess returns blended with a dynamic asset allocation strategy for risk management.
Core equity style targeting attractive opportunities across the investable universe with a dynamic allocation element to adapt to changing market volatility.

Investment Approach

A focused large-cap core equity approach using stock selection as the primary source of excess returns blended with a dynamic asset allocation strategy for risk management.
Core equity style targeting attractive opportunities across the investable universe with a dynamic allocation element to adapt to changing market volatility.

Strategy Summary

Leverages our extensive experience in designing multi-asset portfolios to combine a dynamic approach to asset allocation with a concentrated, actively managed U.S. large-cap equity strategy. The strategy seeks attractive long-term returns and a stable risk profile over time.
Approximately half of the strategy’s assets are invested in holdings to replicate the T. Rowe Price U.S. Large-Cap Core Equity Separately Managed Account (SMA), and the other half is invested in broad market index-based exchange traded funds (ETFs) with a focus on U.S. equities and fixed income.
Using ETFs, the portfolio manager will adjust the underlying asset class exposures in response to risk forecasts using a systematic, rules-based framework. Extreme market dislocations or events not reflected in risk forecasts may also impact positioning.
Outperformance over a full market cycle is sought primarily through effective security selection, while the dynamic asset allocation seeks to stabilize the portfolio’s volatility (a common measurement of the portfolio’s overall level of risk) to help preserve long-term returns.

Features

Extensive Multi‑Asset Experience

The strategy leverages our 25+ years of experience in designing and managing multi-asset portfolios that capture T. Rowe Price’s best global investment ideas into solutions that are designed to align with client objectives. We strive to deliver consistent outcomes for clients and seek to add value through multiple sources at each level of the investment process by leveraging our collaborative investment culture.

Global Research Resources

T. Rowe Price has one of the industry’s strongest commitments to in-house research. With our diligent resources and forward-looking capabilities, we aim to bring our clients better insights, which can lead to stronger long-term investment results. In our view, the quality and breadth of our research efforts can provide a critical information edge that supports well-informed investment choices.

Risk Management Through Asset Allocation

The strategy’s core objective is to seek attractive long-term returns by investing in U.S. large-cap equities, while dynamically adjusting the asset allocation to stabilize the portfolio’s risk profile over time. Depending on forecast risk, the allocation to U.S. equities may range between 50% and 100%, and the allocation to de-risking and/or diversifying assets— such as fixed income ETFs—may range from 0% to 50%.

Risks

All investments are subject to risks, including the possible loss of principal. The strategy is not diversified, and poor performance by a single issuer could adversely affect performance. The strategy’s focused approach to equity investing could cause it to underperform other stock portfolios that employ a different investment style.

T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting.

Holdings are shown at the issuer/company leveI as of the date indicated and are subject to change.

The total of the values in the second column in the table may not add up to the Top 10% of Total Net Assets quoted in the table due to rounding.

Prior to May 31, 2024, the information shown does not reflect any ETFs that the portfolio may have held.

T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting.

Numbers may not total due to rounding; all numbers are percentages.

Please note that holdings are released 15 days after the period end. From time to time, certain securities held may not be listed. This is done to prevent potential harm to the portfolio while the manager completes a buying or selling program in those securities.

The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients, and no assumptions should be made that investments in the securities identified and discussed were or will be profitable.

Prior to May 31, 2024, the information shown does not reflect any ETFs that the portfolio may have held.

The representative portfolio is an account in the composite we believe most closely reflects the current portfolio management style for this strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of other accounts in the strategy. Please see the GIPS® Disclosure for additional information on the composite.

Risk Considerations: All investments are subject to risks, including the possible loss of principal. International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as specific country, regional, and economic developments. A growth or value approach to investing could cause underperformance as compared to other stock portfolios that employ different investment styles. Growth stocks tend to be more volatile than value stocks and their prices usually fluctuate more dramatically than the overall stock market. The intrinsic value of a stock with value characteristics may not be fully recognized by the market for a long time or a stock judged to be undervalued may actually be appropriately priced at a low level. Fixed income securities are subject to credit risk, liquidity risk, call risk, and interest rate risk. As interest rates rise, bond prices generally fall. The municipal bond portfolios will be highly impacted by events tied to the overall municipal securities markets, which can be very volatile and significantly affected by unfavorable legislative or political developments and adverse changes in the financial conditions of municipal securities issuers and the economy.

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Investment Approach

Investment Approach

Strategy Summary

Features

Risks

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Investment Approach

Investment Approach

Strategy Summary

Features

Risks

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