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#9 in Mid-Cap Growth
U.S. News evaluated 221 Mid-Cap Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 26.58 percent over the past year, 15.10 percent over the past three years, 21.23 percent over the past five years, and 11.30 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||6.3%|
|3 Years (Annualized)||15.1%|
|5 Years (Annualized)||21.2%|
|10 Years (Annualized)||11.3%|
The T. Rowe Price Mid-Cap Growth fund benefits from a steady management team that aims to select fast-growing companies with strong business models. As of May 28, 2010 the fund is closed to new investors.
As of July 03, 2014, the fund has assets totaling $23.59 billion. Its portfolio consists of stocks of mid-cap companies whose earnings T. Rowe Price expects to grow at a faster rate than those of other companies.
The fund’s overweighting in the financial sector paid off in 2009. Its performance was also boosted by strong returns from Whole Foods Market, Inc., as well as CarMax, Inc., and gold miner Agnico-Eagle. As of the end of March, management is overweighting healthcare, consumer services, and industrial services companies. The fund has returned 26.58 percent over the past year and 15.10 percent over the past three years.
The fund has a strong long-term record. Its three-, five-, and 10-year returns land in the top quartile of the mid-cap growth category, according to Morningstar. The fund closed to new investors in 2003, reopened in 2008, and closed when assets swelled once again. The fund has returned 21.23 percent over the past five years and 11.30 percent over the past decade.
The fund invests at least 80 percent of its assets in a diversified portfolio of mid-cap stocks. Management selects companies that have one or more of the following: a record of proven products or services, above-average earnings growth, potential to sustain earnings growth, connection to an industry that experiences increasing demand, and stock prices that undervalue their growth prospectus. The most distinct component of T. Rowe Price’s analytical process is its ability to assess company management teams to predict how they will react to macro and micro circumstances in their industries, according to the fund.
Role in Portfolio
Morningstar calls the fund a "supporting player."
T. Rowe Price has established an Investment Advisory Committee that consists of Chairman Brian Berghuis and committee members Kennard Allen, P. Robert Bartolo, Donald Easley, Henry Ellenbogen, Kris Jenner, Daniel Martino, Joseph Milano, Clark Shields, Taymour Tamaddon, and John Wakeman. Berghuis takes charge of the fund's day-to-day management and works with the committee to ensure the fund's investment program is executed. He has been chairman of the committee since the fund's June 1992 inception. He was also named Morningstar's best domestic-stock manager in 2004.
T. Rowe Price Mid Cap Growth Fund has an expense ratio of 0.78 percent.
Stocks of mid-cap companies carry more risk and volatility than shares of large companies. Also, the fund’s large asset base of over $14 billion could stifle its maneuverability, according to Morningstar.