New mutual fund adds to the T. Rowe Price
Capital Appreciation suite and is led by award-winning portfolio
manager David Giroux and Farris
Shuggi
BALTIMORE, Nov. 29,
2023 /PRNewswire/ -- T. Rowe Price (NASDAQ-GS: TROW), a global
investment management firm, announced today the launch of the
Capital Appreciation and Income Fund. The fund is an addition to
the Capital Appreciation suite and seeks to generate strong
risk-adjusted total returns through a combination of capital
appreciation primarily from stocks, income from stock dividends,
and interest income from the fund's fixed income holdings.
The Capital Appreciation and Income Fund is one of three
vehicles within the Capital Appreciation suite, which also includes
the Capital Appreciation Fund (Ticker: PRWCX) and the Capital
Appreciation Equity ETF (Ticker: TCAF). It shares a common
investment approach with other strategies in the suite by pursuing
strong risk-adjusted returns, identifying undervalued investment
opportunities, and exploiting market inefficiencies. The fund
normally invests 50-70 percent of its net assets in fixed income
and other debt instruments, and 30-50 percent of its net assets in
common and preferred stocks. Compared to the Capital Appreciation
Fund, the new fund will have more fixed income securities and fewer
equities over time and is expected to be less volatile and generate
more current income.
The Capital Appreciation and Income Fund is co-managed by
award-winning portfolio manager David
Giroux, CFA®, and Farris Shuggi, CFA®,
head of Quantitative Equity, both at T. Rowe Price Investment
Management (TRPIM). Giroux has more than 25 years of investing
experience and manages the U.S. Capital Appreciation Strategy,
including the Capital Appreciation Fund, which has outperformed its
Morningstar peers for 15 consecutive calendar years1. He
is a six-time nominee and two-time winner of Morningstar's Fund
Manager of the Year award2 and he has also won 18 Best
Fund awards from Lipper3. In addition to his portfolio
management duties, he also serves as head of Investment Strategy
and chief investment officer for TRPIM. Shuggi is a member of the
Capital Appreciation Fund and the Small-Cap Value Fund Investment
Advisory Committees, and he is a member of the TRPIM Environmental,
Social and Governance (ESG) Committee. He has 15 years of investing
experience and has previously served as a quantitative portfolio
manager focusing on U.S. value.
The net expense ratio for Capital Appreciation and Income's
Investor Class shares (Ticker: PRCFX) is 0.65% and the net expense
ratio for its I Class shares (Ticker: PRCHX) is 0.5%. The fund's
minimum initial investment amounts are $2,500 for the Investor Class shares and
$500,000 for I Class shares.
QUOTE
David Giroux, Co-Portfolio
Manager, Capital Appreciation and Income Fund
Head of Investment Strategy and Chief Investment Officer for
TRPIM
"With the addition of the new Capital Appreciation and Income
Fund, we're expanding the reach of our investment capabilities to a
broader set of clients, especially those who prioritize current
income and enhanced capital preservation. The new fund will operate
with the same rigorous investment process that has long defined the
entire U.S. Capital Appreciation Strategy, informed by deep
analysis from our global research organization, robust market
experience, and multiple perspectives and insights. Investors can
expect to see the hallmark traits of our investing philosophy,
including bottom-up portfolio construction, a contrarian approach,
and a strong quality bias in security selection. And
with Farris Shuggi as co-manager, we're integrating
quantitative research to bolster our best thinking. I have worked
closely with Farris and his quantitative research group over the
past 13 years, and having seen their profoundly positive impact on
returns for Capital Appreciation Fund shareholders, I am extremely
excited to partner with Farris and his team on this new fund."
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price
(NASDAQ: TROW) helps people around the world achieve their
long-term investment goals. As a large global asset management
company known for investment excellence, retirement leadership, and
independent proprietary research, the firm is built on a culture of
integrity that puts client interests first. Investors rely on the
award-winning firm for its retirement expertise and active
management approach of equity, fixed income, alternatives, and
multi-asset investment capabilities. T. Rowe Price manages USD $1.31 trillion in assets under management as of
October 31, 2023, and serves millions
of clients globally. News and other updates can be found on
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Instagram, LinkedIn, X, YouTube,
and troweprice.com/newsroom.
Consider the investment objectives, risks, and charges and
expenses carefully before investing. For a prospectus or, if
available, a summary prospectus containing this and other
information visit troweprice.com. Read it carefully.
All investing is subject to risk, including the possible loss of
principal.
Past performance cannot guarantee future results.
1 Based on a T. Rowe
Price analysis of calendar year returns for funds domiciled
in the U.S. with greater than or equal to 15 consecutive years of
beating their peer group average while under the management of the
same portfolio manager.
2 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. The Fund Manager of the Year award winners are
chosen based on research and in-depth qualitative evaluation by
Morningstar's Manager Research Group. 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. David Giroux won the award for Allocation Funds
in 2012 and Allocation/Alternative Funds in 2017.
Morningstar's Manager Research Group consists of various wholly
owned subsidiaries of Morningstar, Inc., including, but not limited
to, Morningstar Research Services LLC. Morningstar's Manager
Research Group produces various ratings including the Morningstar
Analyst Rating for funds and the Morningstar Quantitative Rating
for funds. The Analyst Rating is derived from a qualitative
assessment process performed by a manager research analyst, whereas
the Morningstar Quantitative Rating uses a machine-learning model
based on the decision-making processes of Morningstar's analysts,
their past ratings decisions, and the data used to support those
decisions. In both cases, the ratings are forward-looking
assessments and include assumptions of future events, which may or
may not occur or may differ significantly from what was assumed.
The Analyst Ratings and Quantitative Ratings are statements of
opinions, subject to change, are not to be considered as
guarantees, and should not be used as the sole basis for investment
decisions. This press release is for informational purposes only;
references to securities should not be considered an offer or
solicitation to buy or sell the securities.
©2020 Morningstar, Inc. All Rights Reserved.
3 The Capital Appreciation Fund received the 2023 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2022, the 2022 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2021, the 2021 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2020, the 2020 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2019, the 2019 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2018, the 2018 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2017, the 2017 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2016, the 2016 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 3-year, 5-year, and 10-year periods ended 12/31/2015,
the 2015 Lipper Fund Classification Award for Best Mixed-Asset
Target Allocation Growth Fund over the 10-year period ended
12/31/14 , the 2014 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2013, the 2013 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2012, the 2012 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2011, the 2011 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 10-year period ended 12/31/2010, the 2010 Lipper Fund
Classification Award for Best Mixed-Asset Target Allocation Growth
Fund over the 5-year and 10-year periods ended 12/31/2009, and the
2009 Lipper Fund Classification Award for Best Mixed-Asset Target
Allocation Growth Fund over the 10-year period ended
12/31/2008.
Rankings for other periods differ. For Lipper Best Individual
Funds, the calculation periods extend over 36, 60, and 120 months.
The highest Lipper Leader for Consistent Return (Effective Return)
value within each eligible classification determines the fund
classification winner over 3, 5, or 10 years as of the period-end
and no other time periods. Only one share class (the one with the
best Lipper Leader score) is used for each portfolio in determining
asset class and overall awards. A high Lipper rating does not
necessarily imply that a fund had the best total performance or
that the fund achieved positive results for that period. Lipper
ratings and Lipper Fund Awards are not intended to predict future
results. For a detailed explanation, please review the Lipper
Leaders Methodology document
on lipperalpha.financial.thomsonreuters.com/lipper.
From Thomson Reuters Lipper Awards, © 2018 Thomson Reuters. All
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SOURCE T. Rowe Price Associates, Inc.