In a statement, T. Rowe Price has announced its Australia Equity Strategy fund would “provide an investment choice suited for the current environment where investors seek strong risk adjusted returns from genuine active management at attractive fees”.
The strategy is a “high conviction portfolio” that aims to identify companies with “positive structural industry dynamics” and “strong competitive positions”.
Commenting on the announcement, T. Rowe Price head of Australian equities Randal Jenneke said active management was “critical” to generating high returns in an environment of high volatility.
“Our quality growth framework and valuation discipline helps to identify companies that have the potential to grow faster than the market with an attractive rate of return, but also importantly offers downside capital management, due to lower drawdowns in periods where the equity market sells off,” he said.
Advisers and investors should reassess their Australian equity managers’ ability to deliver short- and long-term objectives, added T. Rowe Price head of relationship management, Australia and New Zealand Murray Brewer.
“Investors should determine if what they invested into 10 to 15 years ago is considerably different to what they originally bought as a consequence of significant asset gathering,” Mr Brewer said.
“A strong discipline to capacity management, as is the approach taken by our strategy, helps to mitigate these issues.”
The equity strategy has over $1.2 billion assets under management, according to the statement.
