T. Rowe unveils the UK version of its $7.6 billion US strategy
T. Rowe Price is launching a $7.6 billion US All-Cap Opportunities Equity Fund for its UK-domiciled OEICs, mirroring a $7.6 billion strategy it already has in place for US investors.
Justin White, who currently manages the firm's existing US All-Cap Opportunities strategy, which was launched in 1985 for US-domiciled investors, will be in charge of the new fund.
The original fund has produced trailing returns of 12.35 percent over the past 15 years, according to Morningstar data, while the Morningstar Large Mid Cap index has returned 10.46 percent.
White, who has been in charge of the portfolio for six years, has primarily allocated 20-30 percent of the portfolio to small and mid-cap stocks, with the stock selection focusing on four primary pillars.
White claims that the framework provides a consistent and pragmatic approach to pursuing high-conviction ideas, as well as balancing stock-specific and factor-level risks.
"As has been evident on multiple occasions in recent years, near-term enthusiasm, or despair, is often over-emphasised by markets," White said of the new Fund.
"Our actively managed approach seeks to capitalise on these overreactions, no matter where they are located within the US equity universe."
With the new strategy, White can allocate to value-style stocks as well.
"While 2022 has been characterised by increased fear and pessimism, we believe the US economy remains more resilient than many market participants currently perceive," he continued.
"Nevertheless, economic activity is going to slow as the Federal Reserve attempts to curb inflation, so it is more important than ever to have a disciplined process able to unearth idiosyncratic investment ideas."
By fLEXI tEAM