- David Giroux, portfolio manager of the T. Rowe Price Capital Appreciation Fund (PRWCX), has been named by Morningstar as the 2017 U.S. Allocation/Alternatives Fund Manager of the Year.
- Mr. Giroux was one of four nominees for the award.
- Mr. Giroux has managed the T. Rowe Price Capital Appreciation Fund and related portfolios since July 1, 2006. The fund is closed to new investors, though current investors may continue to add to their accounts.
- This is Mr. Giroux’s second win as Morningstar Fund Manager of the Year. He also won the award in 2012 (then for the Allocation category) and he was nominated in 2013, 2014, and 2015.
T. ROWE PRICE CAPITAL APPRECIATION FUND DETAILS AND MORNINGSTAR RATINGS
- The fund’s investment objective is to seek long-term capital appreciation by investing primarily in the common stocks of established U.S. companies believed to have above-average potential for capital growth.
- Common stocks typically make up at least half of the fund’s total assets. The remaining assets are generally invested in convertible securities, corporate and government bonds, foreign securities, and futures and options.
- The fund has a five-star Morningstar Overall Rating™ and for the 3-, 5-, and 10-year periods ended November 30, 2017.i It carries a Morningstar Analyst RatingTM of Gold.
- The fund had a one-year annual total return in 2017 of 15.38%.
- Under Mr. Giroux’s management, the fund has outperformed its Morningstar benchmark (Morningstar Allocation – 50-70% Equity) in the 1-, 3-, 5-, and 10-year periods through December 31, 2017. The fund’s average annual total returns were 15.38%, 9.59%, 12.59%, and 9.00% respectively, compared to 13.22%, 6.02%, 7.92% and 4.96% for the Morningstar benchmark.
- Since Mr. Giroux’s tenure on the fund began on July 1, 2006, through December 31, 2017, the fund’s average annual total return has been 9.19%. This compares with 5.60% for the Morningstar Allocation Fund – 50-70% Equity.
- The fund’s expense ratio is 0.70% and its assets totaled $29.3 billion as of December 31, 2017. Including institutional assets, Mr. Giroux manages a total of $45.2 billion as of September 30, 2017.
- Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or less when you sell your shares. For the most recent month-end performance, call 1-800-537-1936 or visit troweprice.com.
Laura Pavlenko Lutton, Morningstar’s director of manager research, North America, from Morningstar’s press release:
- “Strong healthcare picks such as Abbott Laboratories and UnitedHealth Group and a bias toward corporate bonds in the fixed-income sleeve contributed to the fund’s success in 2017. As valuations have trended higher, Giroux has maintained his disciplined, risk-aware approach. He has demonstrated keen asset-allocation skills, shifting the portfolio opportunistically.”
Eric Veiel, Head of U.S. Equity, T. Rowe Price:
- “To win Morningstar’s Fund Manager of the Year is a rare and distinguishing event in the career of any portfolio manager. With his 2017 win added to his 2012 win, David steps into a unique and differentiated realm, an honor he richly deserves. T. Rowe Price is a firm built on delivering investment excellence to our clients to help them reach their financial goals. A global team of over 500 investors work every day in pursuit of that objective. David epitomizes our culture of collaboration-driven investment excellence and dedication to our clients, as do fellow 2017 T. Rowe Price nominees Larry Puglia and Henry Ellenbogen. We are grateful to Morningstar for this recognition, and for David’s win.”
ABOUT THE MORNINGSTAR FUND MANAGER OF THE YEAR AWARDS
Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. To qualify for the award, managers’ funds must have not only posted impressive returns for the year, but the managers also must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders’. Managers’ funds must currently have a Morningstar Analyst Rating™ of Gold or Silver. The Fund Manager of the Year award winners are chosen based on research and in-depth qualitative evaluation by Morningstar’s Manager Research Group. For more information about Morningstar Awards, visit https://go.morningstar.com/Morningstar-Awards.
ABOUT T. ROWE PRICE
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. is a global investment management organization with $991 billion in assets under management as of December 31, 2017. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. For more information, visit troweprice.com or our Twitter, YouTube, LinkedIn, and Facebook sites.
The strategies, products, and services mentioned are offered via subsidiaries of T. Rowe Price Group, Inc. This does not constitute a distribution, an offer, an invitation, a recommendation, or a solicitation to sell or buy any securities in any jurisdiction.
T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. in the United States, European Union, and other countries.
The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five-pillar evaluation to determine how they believe funds are likely to perform over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, or Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated quarterly.
For more detailed information about the Morningstar Analyst Rating for funds, including its methodology, please click here.
The Morningstar Analyst Rating should not be used as the sole basis in evaluating a fund. Morningstar Analyst Ratings involve unknown risks and uncertainties, which may cause Morningstar’s expectations not to occur or to differ significantly from what was expected.
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Morningstar’s Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc., including, but not limited to, Morningstar Research Services LLC. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar’s Manager Research Group’s current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.
All funds are subject to market risk, including the possible loss of principal. Because of the fund’s fixed income or cash position, it may not keep pace in a rapidly rising market. The value orientation carries the possibility that the market will not recognize a security’s intrinsic worth for an unexpectedly long time or that a stock judged to be undervalued may be appropriately priced. Past performance is not a guarantee of future results.
T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds.
i Morningstar rated the Capital Appreciation Fund among 719, 719, 668 and 458 Allocation–50% to 70% Equity funds for the overall rating and the 3-, 5-, and 10-year periods (as applicable) ending 11/30/2017, respectively. The Morningstar Rating™ for funds, or “star rating”, is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Source for Morningstar data: ©2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
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