T. Rowe Price launches analyst-driven core US equity fund

Asset manager T. Rowe Price has launched a core US equity fund that harnesses the stock-selection skill of its research platform.

Launched as a Luxembourg-domiciled SICAV, the T. Rowe Price Funds SICAV – US Structured Research Equity Fund is based on an existing $65 billion US-domiciled strategy.

The actively managed T. Rowe Price US Structured Research Equity Fund typically holds 200-275 positions, with stock selection based purely on the fundamental insights of about 30 analysts from the group’s US equity research team. 

The portfolio’s sector, industry, and style exposures are designed to be similar to those of the S&P 500 Index, with stock selection expected to be the primary source of excess returns. 

Analysts deploy capital to investments within their expertise for optimal risk-adjusted returns, following a disciplined portfolio construction and risk management approach. According to the asset manager, this strategy aims to mirror the volatility and characteristics of the S&P 500, with a rules-based approach minimising active risk and highlighting the analysts’ stock-picking strengths.

Highlighting the firm’s expertise in “bottom-up fundamental research”, Nat Terry, head of UK and Ireland, T. Rowe Price, commented: “A core US equity allocation, this strategy has consistently outperformed the S&P 500 index for more than two decades, irrespective of market direction. This launch is being supported with attractive terms for founding shareholders.”

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