T. Rowe Price reviewed the performance of 18 of the firm’s diversified U.S. equity funds over the 20 years ending in 2017, or since inception in cases where the fund had less than a full 20-year track record. We found that the majority of funds generated positive average excess returns, net of fees, over their benchmarks across multiple time periods. The likelihood that our U.S. diversified equity funds would outperform the relevant benchmarks tended to increase as rolling time periods were extended. We attribute our success to our ability to go beyond the numbers. Over 350 of our investment professionals go out into the field to visit the companies they cover to gain a deeper understanding of where a company stands today and where they think it could go in the future.
Past performance cannot guarantee future results. For more information on the T. Rowe Price funds used in this study, including fund performance, please visit troweprice.com/approachstudy.
Sources: T. Rowe Price, Russell, and Standard & Poor's; data analysis by T. Rowe Price.
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1 The study spanned the 20 years up to the end of December 2017 for older funds or since inception for newer funds. It covered 18 diversified active U.S. equity funds currently advised by T. Rowe Price, including two institutional portfolios that are not directly available to individual investors. In instances where a portfolio manager managed multiple funds in a particular sub-asset class style (e.g., U.S. small-cap growth), we used only the strategy with the largest assets under management to avoid double counting. Benchmarks included the S&P 500, Russell 1000 Growth, Russell 2000 Growth, Russell 1000 Value, Russell 2000 Value, Russell 2000, Russell Midcap Growth, and Russell Midcap Value Indexes. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.
2 According Investment staff as of 12/31/2017. Includes 104 portfolio managers, 24 associate portfolio managers, 148 investment analysts, 47 associate analysts, 10 multi-asset specialists, 3 specialty analysts, 2 strategists, and 17 senior managers.
3 As of 12/31/2017.
4 According to Lipper Inc. Detailed information on our funds’ fees and expenses can be found in their prospectuses.
This material, including any statements, information, data, and content contained within it and any materials, information, images, links, graphics, or recording provided in conjunction with this material are being furnished by T. Rowe Price for general informational purposes only. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price. The material does not constitute a distribution, an offer, an invitation, a recommendation, or a solicitation to sell or buy any securities in any jurisdiction. The material has not been reviewed by any regulatory authority in any jurisdiction. The material does not constitute advice of any nature, and prospective investors are recommended to seek independent legal, financial, and tax advice before making any investment decision.
Past performance is no guarantee of future results. All funds are subject to market risk, including possible loss of principal. There is no guarantee T. Rowe Price funds will outperform their benchmarks.
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