(PUB) Investing 2016

9 / 708

7 Morningstar FundInvestor January 2016
Data through December 31, 2015 FINRA members: For internal or institutional use only.
T. Rowe Price Blue Chip Growth Ticker
TRBCX
Yield
0.0%
Total Assets
$31,007 mil
Mstar Category
Large Growth
Benchmark 1: Russell 1000 Growth TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 12-11-15
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
25.0
Historical Profile
Return
Risk
Rating
High
Above Avg
QQQQQ
Highest
7 7 7 7 7 7 7 7 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
( & * ( & * & & & ( & Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 12-15 History
32.68 35.73 40.23 23.01 32.77 38.13 38.65 45.63 64.60 67.27 72.38 NAV
5.95 9.73 13.02 -42.62 42.57 16.42 1.50 18.41 41.57 9.28 11.15 Total Return %
0.68 0.65 1.21 -4.19 5.36 -0.29 -1.14 3.16 8.09 -3.77 5.48 +/- Bmark 1
1.03 -6.07 7.53 -5.63 16.10 1.35 -0.61 2.41 9.19 -4.41 9.76 +/- Bmark 2
0.26 0.40 0.42 0.17 0.15 0.06 0.13 0.35 0.00 0.00 0.00 Income Return %
5.69 9.33 12.60 -42.80 42.42 16.36 1.37 18.07 41.57 9.27 11.15 Capital Return %
53 25 48 69 20 39 17 18 7 60 3 Total Rtn % Rank Cat
0.08 0.13 0.15 0.07 0.04 0.02 0.05 0.14 0.00 0.00 0.00 Income $
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.26 2.36 Capital Gains $
0.85 0.81 0.77 0.80 0.81 0.77 0.77 0.76 0.74 0.72 0.70 Expense Ratio %
0.28 0.36 0.42 0.22 0.15 0.08 0.12 0.32 0.03 -0.02 0.03 Income Ratio %
44 39 32 54 60 47 44 25 35 33 . Turnover Rate %
7,998 8,811 11,296 6,727 9,461 10,970 10,597 13,692 20,230 23,276 . Net Assets $mil
Performance 12-31-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 5.74 0.72 -13.52 10.20 1.50
2012 18.76 -5.45 6.34 -0.83 18.41
2013 8.15 3.69 11.94 12.78 41.57
2014 -1.10 4.16 1.73 4.27 9.28
2015 5.96 0.49 -4.98 9.86 11.15
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 9.86 2.54 2.82 3 10,986
6 Mo 4.38 2.74 4.23 5 10,438
1 Yr 11.15 5.48 9.76 3 11,115
3 Yr Avg 19.80 2.97 4.68 3 17,195
5 Yr Avg 15.63 2.10 3.06 1 20,666
10 Yr Avg 9.33 0.80 2.03 8 24,408
15 Yr Avg 5.94 1.61 4.33 14 23,770
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 19.05 1 0.63 14
5 Yr (estimated) 15.15 1 0.41 13
10 Yr (estimated) 9.06 4 0.25 9
Potential Capital Gain Exposure: 41% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr 11.15
3 Yr 19.80 High +Avg QQQQQ
5 Yr 15.63 High +Avg QQQQQ
10 Yr 9.33 High +Avg QQQQQ
Incept 10.41
Other Measures Standard Index Best Fit Index
Alpha 3.8 1.6
Beta 1.02 1.02
R-Squared 79 92
Standard Deviation 12.29
Mean 19.80
Sharpe Ratio 1.54
Portfolio Analysis 09-30-15
Total Stocks: 125
Share change since 06-30-15 Sector YTD Ret % % Assets
TAmazon.com Inc Cnsmr Cyc 117.78 6.30
TAlphabet Inc Class C Capi Technology — 3.77
TPriceline Group Inc Cnsmr Cyc 11.82 3.49
TFacebook Inc Class A Technology 34.15 3.29
TDanaher Corp Industrl 9.00 3.14
TVisa Inc Class A Finan Svcs 19.07 2.91
TMasterCard Inc Class A Finan Svcs 13.74 2.71
YAlphabet Inc Class A Technology 46.60 2.44
TAllergan PLC Hlth Care — 2.33
YMcKesson Corp Hlth Care -4.49 2.31
TAlexion Pharmaceuticals I Hlth Care 3.09 2.20
TCelgene Corp Hlth Care 7.06 2.05
TMicrosoft Corp Technology 22.22 2.01
YGilead Sciences Inc Hlth Care 8.72 1.92
YApple Inc Technology -2.80 1.78
TValeant Pharmaceuticals I Hlth Care — 1.77
YStarbucks Corp Cnsmr Cyc 47.98 1.74
TSalesforce.com Inc Technology 32.19 1.58
YAmerican Tower Corp Comm Svcs -0.09 1.55
TUnitedHealth Group Inc Hlth Care 18.23 1.54
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 46.1
Large 46.5
Mid 7.4
Small 0.0
Micro 0.0
Avg $mil:
64,145
Value Measures Rel Category
Price/Earnings 22.88 1.02
Price/Book 4.09 1.06
Price/Sales 1.91 0.82
Price/Cash Flow 14.94 1.09
Dividend Yield % 0.80 0.64
Growth Measures % Rel Category
Long-Term Erngs 15.26 1.17
Book Value 13.14 1.39
Sales 9.73 1.12
Cash Flow 11.50 0.98
Historical Erngs 16.05 1.29
Profitability %
Return on Equity 19.85
Return on Assets 8.72
Net Margin 13.95
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 38.06 1.29
r BasicMat 1.47 0.48
t CnsmrCyc 26.02 1.36
y FinanSvcs 10.57 2.02
u Real Est 0.00 0.00
j Sensitive 33.62 0.80
i CommSrvs 3.17 0.62
o Energy 0.54 1.02
p Industrl 10.66 0.86
a Technlgy 19.25 0.81
k Defensive 28.32 0.99
s CnsmrDef 1.96 0.18
d Hlthcare 26.36 1.48
f Utilities 0.00 0.00
Composition - Net
Cash 0.3
Stocks 99.7
Bonds 0.0
Other 0.0
Foreign 7.9
(% of Stock)
Morningstar's Take by Katie Rushkewicz Reichart, CFA 12-11-15
T. Rowe Price Blue Chip Growth has excelled during
manager Larry Puglia's 22-year tenure, supporting its
Morningstar Analyst Rating of Silver.
Beyondbenefiting fromanexperiencedmanager, the
fund draws on T. Rowe's analyst team for stock ideas,
which has proved quite capable at finding successful
large-growth names. The fund has consistently produced
strong returns relative to its large-growth Morningstar
Category peers and the Russell 1000 Growth Index, even
in recent years when it's been difficult for many active-
equity managers to beat passive index funds.
Puglia looks forcompanieswithsustainableearnings,
free cash flow growth, and management teams that will
drive further growth. While the fund's active share (its
differentiation from the benchmark) isn't exceptionally
high, the fund makes enough bets to meaningfully
distinguish itself fromaperformancestandpoint. In recent
years, that's included a significant stake in healthcare
stocks, which has boosted results.
Despite owning a top-20 position in Valeant
Pharmaceuticals VRX as of September 2015, which
subsequently stumbled upon concerns about aggressive
pricing of its drugs, the fund has had a stellar year in 2015
as other stocks in its diversified portfolio produced big
gains. In particular, longtime holding and top position
Amazon.com AMZN had a banner year, and the position
grew to over 6% of assets by September. It also got a
boost from Netflix NFLX, Alphabet GOOGL, and Facebook
FB.
The fund occasionally stumbles in market pullbacks,
and it's lostabitmore than theRussell1000Growth Index
in down markets during the past decade. Certain
positioning, such as its above-average biotech stake
relative to the benchmark, could weigh on results if
there's an industrywide sell-off. Longer term, there's also
the question of capacity across T. Rowe's large-growth
funds (this strategy alone is $50 billion in assets).
However, on the whole the fund has done a good job
of producing strong risk-adjusted results during Puglia's
tenure.Reasonablecostsalsohelp thecase for this fund's
Silver rating.
Address: T. Rowe Price Blue Chip Growth Fund, Inc Minimum Purchase: $2500 Add: $100 IRA: $1000
Baltimore MD 21202 Min Auto Inv Plan: $2500 Add: $100
800-638-5660 Sales Fees: No-load
Web Address: Management Fee: 0.30% mx./0.26% mn., 0.15%A
Inception: 06-30-93 Actual Fees: Mgt:0.57% Dist:0.00%
Advisor: T. Rowe Price Associates, Inc. Expense Projections: 3Yr:$230 5Yr:$401 10Yr:$894
Subadvisor: None Income Distribution: Annually
©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, call 312-696-6100. ß® Mutual Funds A