College P l A nnI ng | eSTATe P l A nnI ng | I n V e STIng | PORTFOliO SPOTlighT | R e A l eSTATe | R e TIRe M enT | TAX P l A nnI ng
T . Rowe Price All-Cap Opportunities Fund
TiCkeR ASSeTS
PRWAX $ 8.4 billion
PeRFORMAnCe YTD 1 yr . 3 yr . 5 yr . 10 yr . 15 yrs . -7.22 % 4.78 % 22.78 % 21.68 % 17.53 % 13.60 %
TOP Five hOldingS Microsoft Corp .; Apple Inc .; Alphabet Inc .; Visa Inc .; Charles Schwab Corp .
COnTACT inFO
877.561.7670 • troweprice . com
equiTy SeCTOR AllOCATiOn ( As a % of portfolio ) |
Information Technology |
26.63 % |
Consumer Discretionary |
17.49 % |
Healthcare |
17.01 % |
Communication Services |
10.93 % |
financials |
8.48 % |
Industrials & Business Services |
7.72 % |
Energy |
4.22 % |
Materials |
3.20 % |
Utilities |
2.96 % |
Consumer Staples |
0.36 % |
Other Holdings |
1.00 % |
Performance and asset numbers as of 4 / 7 / 22 . Holdings and sector weightings as of 3 / 31 / 22 . Sources : T . Rowe Price and Morningstar .
All-Caps Solutions For A Shifting Market
The T . Rowe Price All-Cap Opportunities Fund ’ s flexible mandate produces winning results . By Jeff Schlegel
WhAT ’ S IN A NAMe ? IN The COMPeTITIve world of mutual funds , a fund typically has a nameplate that reflects its strategy and instantly tells investors what it ’ s all about . But not always , as was the case with the T . Rowe Price New America Growth Fund . And over time that became an issue for its portfolio manager , Justin White .
“ The New America Growth name didn ’ t make sense ,” says White , who took the reins of the fund in April 2016 . “ The fund was incepted in the mid-1980s , and apparently there was a period in the ’ 80s when ‘ New America ’ meant something , but that stand-alone meaning has disappeared .”
On the same day in March 2021 , the fund was rechristened the All-Cap Opportunities Fund and switched its benchmark from the Russell 1000 Growth Index to the Russell 3000 . As White explains , this fund has always been an all-cap product , but using the market capitalization-weighted Russell 1000 Growth Index as its bogey ( which measures the performance of the large-cap growth component of U . S . equities ) gave the fund a heavier tilt toward large- and mega-cap growth companies than he wanted .
“ I ’ m benchmark-aware in that I tend to think about sizing my bets relative to the benchmark weights ,” he says , noting that making too big a bet against , say , one of the FANG stocks making up a big piece of the Russell 1000 Growth Index could blow up the risk profile of the fund vis-à-vis its bogey .
The Russell 3000 is also market-cap-weighted , but it measures a broader swath comprising roughly 97 % of U . S . equities . That not only reduces the gravitational pull of the largest of the large-cap companies , but it also gives White more flexibility with market-cap size and investment style boxes . In a sense , hitching the fund ’ s wagon to a new benchmark lets White return to the approach he used when he was an analyst on the T . Rowe Price media telecom team for nearly eight years , before he took over what eventually became the All- Cap Opportunities Fund .
“ My coverage area spanned value to growth , small caps to large caps ,” he says . “ I had success as an analyst investing across dif-
MAY 2022 | fInAnCIAl ADVISoR MAgAzIne | 53