6
Morningstar Analyst Rating
05-22-13
ˇ
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
¶
Neutral
Neutral
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
40.00
35.92
31.81
32.99
28.03
18.77
31.87
31.38
31.88
33.14
29.83
22.06
Total Return %
11.36
13.56
-0.41
19.34
49.33
-38.31
13.74
7.24
4.35
11.10
35.22
-28.54
+/-S&P 500
-4.01
-2.44
-2.52
4.28
22.87
-1.31
8.25
-8.55
-0.56
0.22
6.54
-6.44
+/-Russ 1000Gr
-2.59
-1.70
-3.05
2.63
12.12
0.13
1.93
-1.83
-0.91
4.80
5.47
-0.66
Income Return %
0.00
0.60
0.21
0.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Return %
11.36
12.96
-0.62
19.14
49.33
-38.31
13.74
7.24
4.35
11.10
35.22
-28.54
Total Rtn % Rank Cat
77
67
32
18
8
33
44
49
68
21
13
56
Income $
0.00
0.19
0.07
0.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Gains $
0.00
0.01
0.94
0.40
0.00
0.85
3.76
2.83
2.75
0.00
0.00
0.00
Expense Ratio %
.
0.81
0.81
0.83
0.89
0.91
0.85
0.89
0.91
0.92
0.98
0.99
Income Ratio %
.
0.57
0.28
0.28
-0.07
-0.20
-0.02
-0.02
-0.16
-0.07
-0.34
-0.42
Turnover Rate %
.
34
32
60
68
88
60
61
53
51
62
61
Net Assets $mil
3,365
3,118
2,215
1,258
857
499
848
805
866
952
915
761
Performance
05-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
3.41 18.70 14.67 6.09 49.33
5.89 -13.01 13.52 14.13 19.34
6.30 -0.40 -14.46 9.95 -0.41
12.61 -4.83
5.10 0.82 13.56
8.32
. . . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500 1000Gr
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
6.64 -1.58
-1.28
64 10,664
12.33 -4.10
-1.59
67 11,233
21.82 -5.46
-0.73
53 12,182
15.11 -1.76
-2.09
46 15,252
6.47 1.04
0.19
17 13,682
8.71 1.13
0.96
17 23,051
4.04 -0.57
0.42
58 18,114
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
14.57
44
0.46
82
5.97
18
0.47
87
7.89
23
0.76
92
Potential Capital Gain Exposure: 23% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
21.82
3 Yr
15.11
Avg
Avg
5 Yr
6.47
+Avg
+Avg
10 Yr
8.71
+Avg
Avg
Incept
10.07
Other Measures
Standard Index
Best Fit Index
S&P 500
Russ MG
Alpha
-2.4
-0.1
Beta
1.06
0.88
R-Squared
95
97
Standard Deviation
15.23
Mean
15.11
Sharpe Ratio
1.00
Morningstar’s Take
by Laura Lallos 05-22-13
It’s a new era at T. Rowe Price New America Growth.
Longtime manager Joe Milano left T. Rowe Price on
May 10, and his departure is a loss. The fund earned
an Analyst Rating of Gold under Milano’s direction.
Last year was a rare off year for the fund, but Milano
maintained a good risk/reward profile during more than
a decade here. The fund’s annualized 10-year return
through April 2013 was 9.2%, handily beating both the
S&P 500 Index (7.9%) and the average large-growth
peer (7.6%).
New manager Dan Martino has a nice, if shorter,
record himself at T. Rowe Price Media &
Telecommunications PRMTX, which he has run for
more than three years (and will comanage through
September). From October 2009 through April 30, 2013,
that fund returned an annualized 19.5%, trouncing the
average communications fund (12.4%), the typical
technology fund (10.9%), and the S&P 500 (14.6%).
Morningstar performance attribution indicates that
Martino’s stock selection has more to do with the
fund’s outperformance relative to the S&P than that
fund’s sector biases.
Now Martino has to demonstrate that he can
replicate this success with a diversified portfolio.
Fortunately, he has access to T. Rowe’s strong global
team of more than 100 analysts. He has long worked
closely with the media and telecommunications
analysts, as well as some of the technology analysts.
He says his immediate task is to partner with other
analysts to get up to speed on the roughly 60% of the
portfolio that is outside of the TMT space.
This will be a different fund under Martino. Milano
preferred to do much of his company-specific research
himself, and his idiosyncratic portfolio had a
somewhat defensive bent. Martino will be reducing
cash and expressing a preference for long-term
secular growth plays.
That’s not to say the fund will be worse. Because
the fund is in a transition period and Martino has not
managed a broadly diversified portfolio before, the
fund has a Neutral rating for now. However, Martino’s
record is reason for optimism.
Address:
100 East Pratt Street
Baltimore, MD 21202
800-638-5660
Web Address:
Inception:
09-30-85
Advisor:
T. Rowe Price Associates, Inc.
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$2500
Add: $100 IRA: $1000
Min Auto Inv Plan:
$2500
Add: $100
Sales Fees:
No-load
Management Fee:
0.35%, 0.15%A
Actual Fees:
Mgt:0.65% Dist:
.
Expense Projections:
3Yr:$259
5Yr:$450 10Yr:$1002
Income Distribution:
Annually
Data through May 31, 2013
T. Rowe Price New America Growth
Ticker
Status Yield Total Assets
Mstar Category
PRWAX Open
0.5% $3,971 mil
Large Growth
100% 99% 99% 97% 96% 95% 91% 93% 92%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13
Historical Profile
Return
Risk
Rating
Above Avg
Average
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
6.0
12.5
15.0
17.5
Portfolio Analysis
03-31-13
Share change since 12-12 Total Stocks:110 Sector
PE Tot Ret% % Assets
T. Rowe Price Reserve In
. . .
6.40
Apple Inc
Technology 10.7 -14.42 4.20
Google, Inc. Class A
Technology 25.2 23.16 2.58
Fiserv, Inc.
Industrl
20.4 10.29 2.03
Fastenal Company
Industrl
36.1 12.50 1.95
Laboratory Corporation o
Hlth care 16.8 14.86 1.83
Iron Mountain Inc
Industrl
47.0 16.30 1.81
Equifax, Inc.
Industrl
26.4 13.34 1.80
Thermo Fisher Scientific
Hlth care 24.4 38.68 1.77
Henry Schein, Inc.
Hlth care 21.6 19.73 1.73
eBay Inc
Cnsmr Cyc 26.2 6.08 1.66
CH Robinson Worldwide, I
Industrl
15.5 -9.76 1.63
Monsanto Company
Basic Mat 21.6 7.12 1.58
IntercontinentalExchange
Finan Svs 23.3 38.28 1.57
Salesforce.com, Inc.
Technology
.
0.73 1.56
Adobe Systems Inc
Technology 30.4 13.88 1.49
Stericycle, Inc.
Industrl
34.5 17.67 1.47
UnitedHealth Group Inc
Hlth care 12.2 15.86 1.46
Global Payments, Inc.
Industrl
21.0 5.96 1.45
Nuance Communications, I
Technology 40.5 -14.87 1.42
Current Investment Style
Market Cap %
Giant
24.0
Large
26.0
Mid
46.9
Small
2.8
Micro
0.4
Avg $mil:
17,929
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
18.55
2.81
1.46
11.56
1.04
1.06
0.99
0.82
1.17
0.77
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
14.07
11.79
12.45
8.75
13.65
1.05
1.11
1.48
0.67
0.97
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
17.45
8.32
11.65
0.83
0.84
0.81
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 21.77 0.76
BasicMat 6.37 2.08 9 6
CnsmrCyc 9.75 1.14 11 9
FinanSvs 5.13 0.33 10 5
Real Est 0.52 0.36 1 1
Sensitive 55.10 1.26
CommSrvs 1.65 0.41 2 1
Energy 2.67 0.25 6 2
Industrl 23.21 2.04 24 19
Technlgy 27.57 1.57 30 24
Defensive23.13 0.84
CnsmrDef 2.54 0.21 6 3
Hlthcare 20.59 1.74 21 16
Utilities 0.00 0.00
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
6.4
Stocks 92.0
Bonds 0.0
Other
1.6
Foreign 4.7
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2013Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, correct, complete or
timely. Past performance is no guarantee of future results.Access updated reportsat
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