US Large Cap Value Equity Fund*

A large cap fund seeking companies undervalued relative to their long‑term economic value.

At a glance:

Strategy inception date
31 March 1990

Indicative benchmark

Russell 1000 Value Index Net 30% withholding tax

Please note that this is the indicative benchmark of the Fund. It is not a formal benchmark but is shown for comparison purposes.

Ratings 

Heather McPherson
Heather McPherson

Co-Portfolio Manager

Why T. Rowe Price US Large Cap Value Equity Fund?

We seek to invest in higher quality large cap companies which we believe offer hidden value and upside potential that are overlooked by the market. Our investment approach is designed to spot opportunities in neglected high quality companies as they arise, understand the catalysts for recovery, and likely timing and make high-conviction investments in the right companies at the right time.

1 Finding unloved opportunities
We invest in higher quality companies facing short-term controversy. These companies have strong market positions, valuable assets, strong brands and effective management teams built to overcome challenges. We believe our fundamental research, disciplined approach and access to management give us an edge in finding these companies.
2 Focus on value and quality
In contrast to other value-oriented investment strategies that may rely more on deep value or absolute valuation, 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.
3 High-conviction portfolio invested for the long term
We maintain a well-diversified portfolio of typically between 70-80 holdings. Our high conviction bottom-up approach seeks to deliver returns in a variety of market environments. Our emphasis on companies with better business models ensures investments have adequate financial staying power until the predicted catalyst for improving sentiment emerges.

Investment Objective

To increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a diversified portfolio of stocks from large capitalisation companies in the United States that are selling at discounted valuations relative to their historical average and/or the average of their industries.
We invest in high-quality companies when they are facing controversy. Our shareholders are rewarded as the near-term challenges are addressed, the controversy is resolved, and earnings growth gets back on track.

Heather McPherson / Co-Portfolio Manager

Diversified exposure to US value companies
Focus on relative value
  • Value metrics on earnings, revenues and dividend streams
  • Relative to history, peers and the market
Long-term focus
  • Investment decisions focus on companies’ long-term opportunity rather than short-term results
  • Disciplined investors with historically moderate level of portfolio turnover
High conviction portfolio
  • 70-80 stocks
  • Individual holdings up to 3% (highest conviction ideas up to 5%)
  • Sector weights 0.5x-2x benchmark
  • Generally US$9bn+ market cap
High quality bias
  • Companies with a strong financial outlook and potential for improved investor sentiment

Key Risks – The following risks are materially relevant to the fund (refer to prospectus for further details):

Small and mid-cap risk – Stocks of small and mid-size companies can be more volatile than stocks of larger companies.

Volatility risk – The performance of the funds has a risk of high volatility.

Sign up for US Equity insights from T. Rowe Price

*T. Rowe Price Funds SICAV – US Large Cap Value Equity Fund

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, 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 the link titled “See all SICAV fund data” available in the resources section above.

Past performance is not a reliable indicator of future performance.

The Morningstar Rating is shown for the USD I share class as at 30 June 2020. The Morningstar Rating is updated on a monthly basis. For the latest ratings information please visit the Morningstar website.

©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2)may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For further information on ratings methodology please visit www.morningstar.com

Other US Equity funds

Want to know more about T. Rowe Price and our products?

All figures are as at 30 June 2020 unless stated otherwise.

1 Total US Equity Assets: US$ 806 billion. As of 30 June 2020. US Equity AUM includes assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.

2 T. Rowe Price Funds SICAV – US Large Cap Growth Equity Fund.
3 T. Rowe Price Funds SICAV – US Blue Chip Equity Fund.
4 T. Rowe Price Funds SICAV – US Equity Fund.
5 T. Rowe Price Funds SICAV – US Large Cap Value Equity Fund.
6 T. Rowe Price Funds SICAV – US Smaller Companies Equity Fund