T. Rowe Price New America Growth Fund (PRWAX)
Ticker Symbol:
PRWAX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Management
Fund Manager
  • Daniel Martino
  • Managed Fund Since: 05/13/2013
  • Joined Firm On 06/05/2006*
  • B.S. University of Virginia; M.B.A. University of Pennsylvania, The Wharton School; CFA

*Firm refers to T. Rowe Price Associates and Affiliates
Quarterly Commentaries
as of 06/30/2015

The portfolio invests in companies that we believe can generate above-average earnings and cash flow growth. Our bottom-up stock selection strategy focuses on companies that can grow organically and don't depend on economic expansion to perform well. The information technology, health care, and consumer discretionary sectors are the portfolio's largest allocations, representing more than two-thirds of the portfolio. Stock selection and overweight allocations to the health care and consumer discretionary sectors produced strong absolute and relative performance. However, stock selection in the tech sector crimped absolute and relative returns. Compared with our benchmark, we have significant underweight allocations to financials, energy, and consumer staples stocks. The portfolio has minimal exposure to telecommunication services and no utilities holdings, because we are not finding companies that we believe will generate above-average growth in these areas.

The New America Growth Fund returned 0.47% in the quarter compared with 0.28% for the S&P 500 Index and 0.81% for the Lipper Multi-Cap Growth Funds Index. For the 12 months ended June 30, 2015, the fund returned 13.27% versus 7.42% for the S&P 500 Index and 11.41% for the Lipper Multi-Cap Growth Funds Index. The fund's average annual total returns were 13.27%, 18.61%, and 9.95% for the 1-, 5-, and 10-year periods, respectively, as of June 30, 2015. The fund's expense ratio was 0.79% as of its fiscal year ended December 31, 2014.

For up-to-date standardized total returns, including the most recent month-end performance, please click on the Performance tab, above.
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 loss when you sell your shares.

Benchmark Definitions

The portfolio invests in companies that we believe can generate above-average earnings and cash flow growth. Our bottom-up stock selection strategy focuses on companies that can grow organically and don't depend on economic expansion to perform well. The information technology, health care, and consumer discretionary sectors are the portfolio's largest allocations, representing more than two-thirds of the portfolio. Stock selection and overweight allocations to the health care and consumer discretionary sectors produced strong absolute and relative performance. However, stock selection in the tech sector crimped absolute and relative returns. Compared with our benchmark, we have significant underweight allocations to financials, energy, and consumer staples stocks. The portfolio has minimal exposure to telecommunication services and no utilities holdings, because we are not finding companies that we believe will generate above-average growth in these areas.

Although market volatility is likely to stay elevated, we remain optimistic about the outlook for growth stocks. We believe that the valuations for many high-quality companies remain reasonable, and the longer-term earnings outlook for most sectors (excluding energy) appears favorable. Our key concerns are the events unfolding in Greece and China. While Greece captured most of the headlines toward the end of the quarter, the situation in China is potentially more worrisome given that it is the world's second-largest economy. Moving forward, we intend to focus on identifying "all seasons" growth companies with the ability to increase earnings even in a volatile macroeconomic environment.

See Glossary for additional details on all data elements.