How the Cards Fell for 11 Large-Cap Mutual Funds in 2015
T. Rowe Price Blue Chip Growth Fund
The T. Rowe Price Blue Chip Growth Fund (TRBCX) “invests in the common stocks of large and medium-sized blue chip companies that have the potential for above-average earnings growth and are well established in their respective industries.”
The fund manager looks for companies that enjoy strong market positions, seasoned management teams, solid financial conditions, and above-average earnings growth and profitability. Prospects of dividend growth are important to the fund, so it may “at times invest significantly in stocks of technology companies.”
The fund’s assets were invested across 129 holdings (stocks, bonds, and cash) as of December 2015, and the fund was managing assets worth $31.3 billion as of the end of December. As of September, when the company declared it latest complete portfolio breakdown, its equity holdings included The Priceline Group (PCLN), McKesson (MCK), American Tower (AMT), Lowe’s Companies (LOW), and CVS Health (CVS). Its top ten holdings formed 37.2% of its net assets at the end of December.
Historical portfolios
For this analysis, we will be considering holdings as of September 2015. The holdings after September reflect the valuation-driven changes to the portfolio, not the actual holding.
TRBCX’s portfolio is quite evenly distributed between the information technology, consumer discretionary, and healthcare sectors, which are the top three invested sectors in that order. Exposure to these sectors ranges from 25% to 28%. Combined, they form nearly 80% of the portfolio. The fund is not invested in the utilities sector and has an almost negligible exposure to the telecom services sector.
All of the fund’s top three sectors have seen their respective shares increase through the course of 2015. On the other hand, exposure to energy has been reduced sharply and industrials and materials have also seen their share reduce over the period.
Let’s see how the fund has fared across various periods and examine what has contributed to the fund’s performance in 2015 in the next article.
Browse this series on Market Realist: