Asset manager T. Rowe Price has launched a core US equity fund, powered by the expertise of its research team.
The T. Rowe Price Funds US Structured Research Equity Fund, part of the UK Open-ended Investment Company (OEIC), builds on a successful US-based strategy that has outperformed the S&P 500 over two decades with low tracking error.
The new OEIC fund complements an existing Société d’investissement à Capital Variable ( Sicav) version of the strategy launched in December 2023.
The fund typically holds between 200-275 stocks, with selections driven by fundamental insights from around 30 analysts within T. Rowe Price’s US equity research team. While sector and industry exposures mirror those of the S&P 500, stock selection is the primary driver of excess returns.
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Analysts allocate capital within their areas of expertise, focusing on investments with the most favourable risk-adjusted returns. A disciplined portfolio construction process, coupled with a rules-based approach, ensures the fund maintains similar volatility to the S&P 500 while isolating the stock-picking capabilities of T. Rowe Price’s research team.
This launch further strengthens T. Rowe Price’s active management offerings, providing UK investors with a robust, research-driven equity option.
Nat Terry, head of UK and Ireland, T. Rowe Price, said: “With 85 years of experience investing in the US stock market, T. Rowe Price brings unmatched insight into American companies and industries. Our strength lies in our bottom-up fundamental research, and we are pleased to launch an OEIC version of a portfolio that reflects the best of our expertise. A core US equity strategy, this strategy has consistently outperformed the S&P 500 for more than 20 years, through a variety of market conditions.”
