Winners rationale

Leading the stock market recovery, US equities have been significantly outperforming global peers in 2019 despite market swings and broader geopolitical tensions. Yet, in this highly efficient market, generating consistent alpha is unprecedentedly difficult for an active manager and few can exhibit the persistence in outperformance as T. Rowe Price.

With a consistency in investment style and performance, the US large cap growth strategy of the firm made itself stand out from peers, achieving strong medium and long term excess returns in terms of three-, five-, and 10-year performance.

Such persistent performance could not be achieved without a robust investment philosophy and process. With a strong belief in a fundamental and bottom up approach, the team endeavoured to invest in companies with superior growth in cash flow and sustainable earnings momentum even during an economic downturn.

Despite the fact that large cap growth stocks in the US were dominated by FAANG stocks — Facebook, Apple, Amazon, Netflix, and Alphabet (Google) — the firm proactively looked beyond FAANG and believed in high Active Share, with over 70% of the outperformance of the strategy driven by non-FAANG names.

Equities in 2019 overall have not been a favoured asset class, but T. Rowe Price’s US large cap growth equity fund has garnered support from investors with its AUM trending up to US$2.2 billion as of end of August 2019, with a part of asset growth sourced from the region’s private banking clients.

A long and sound track record of US equity investing, backed by top notch dedicated supporting team makes T. Rowe Price Asian Private Banker’s Best Fund Provider – US Equity.