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Is T. Rowe Price Institutional Large Cap Core (TPLGX) a Strong Mutual Fund Pick Right Now?
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Large Cap Blend fund seekers should consider taking a look at T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) . TPLGX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that TPLGX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
TPLGX finds itself in the T. Rowe Price family, based out of Baltimore, MD. Since T. Rowe Price Institutional Large Cap Core made its debut in October of 2003, TPLGX has garnered more than $3.75 billion in assets. The fund's current manager, Larry J. Puglia, has been in charge of the fund since October of 2003.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 13.63%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 21.59%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. TPLGX's standard deviation over the past three years is 13.71% compared to the category average of 13.01%. Looking at the past 5 years, the fund's standard deviation is 13.89% compared to the category average of 12.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In TPLGX's case, the fund lost 51.61% in the most recent bear market and underperformed its peer group by 2.77%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.1, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. TPLGX has generated a positive alpha over the past five years of 1.98, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Right now, 86.18% of this mutual fund's holdings are stocks, with an average market capitalization of $262.94 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Retail Trade
Turnover is 25%, which means this fund makes fewer trades than the average comparable fund.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, TPLGX is a no load fund. It has an expense ratio of 0.56% compared to the category average of 1.05%. Looking at the fund from a cost perspective, TPLGX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment has no minimum amount.
Bottom Line
Overall, T. Rowe Price Institutional Large Cap Core ( TPLGX ) has a high Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is T. Rowe Price Institutional Large Cap Core (TPLGX) a Strong Mutual Fund Pick Right Now?
Large Cap Blend fund seekers should consider taking a look at T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) . TPLGX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that TPLGX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
TPLGX finds itself in the T. Rowe Price family, based out of Baltimore, MD. Since T. Rowe Price Institutional Large Cap Core made its debut in October of 2003, TPLGX has garnered more than $3.75 billion in assets. The fund's current manager, Larry J. Puglia, has been in charge of the fund since October of 2003.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 13.63%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 21.59%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. TPLGX's standard deviation over the past three years is 13.71% compared to the category average of 13.01%. Looking at the past 5 years, the fund's standard deviation is 13.89% compared to the category average of 12.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In TPLGX's case, the fund lost 51.61% in the most recent bear market and underperformed its peer group by 2.77%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.1, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. TPLGX has generated a positive alpha over the past five years of 1.98, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Right now, 86.18% of this mutual fund's holdings are stocks, with an average market capitalization of $262.94 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Retail Trade
Turnover is 25%, which means this fund makes fewer trades than the average comparable fund.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, TPLGX is a no load fund. It has an expense ratio of 0.56% compared to the category average of 1.05%. Looking at the fund from a cost perspective, TPLGX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment has no minimum amount.
Bottom Line
Overall, T. Rowe Price Institutional Large Cap Core ( TPLGX ) has a high Zacks Mutual Fund rank, strong performance, average downside risk, and lower fees compared to its peers.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.