PAGLX
TRPrice Global Growth Stock-Adv
Global Growth Focus with Large-Cap Emphasis
The TRPrice Global Growth Stock-Adv (PAGLX) is designed to provide investors with long-term capital appreciation by investing primarily in large-cap companies across the globe, including the United States. This fund is categorized under World Large Growth, which indicates its focus on companies with significant market capitalizations that are expected to grow at an above-average rate compared to other sectors. With a mandate to invest at least 80% of its net assets in large-cap stocks, PAGLX offers a diversified portfolio that spans multiple industries and geographies, making it an attractive option for investors seeking global exposure and growth potential.
At A Glance
Executive Summary
PAGLX offers global large-cap growth with a strong 1-year return of 29.06%, outperforming its benchmark. High tech allocation and low downside risk.
Global diversification with large-cap focus; Strong recent performance; High technology sector allocation.
Higher expense ratio than peers; Low yield; Recent negative three-year return.
Impressive Recent Performance Metrics
PAGLX has demonstrated impressive performance, particularly over the past year, with a 1-year return of 29.06%, significantly outperforming its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25% over the same period. This strong performance can be attributed to the fund’s strategic allocation in high-growth sectors and its focus on large-cap stocks, which have benefited from recent market trends. Despite a negative three-year return of -2.07%, the fund’s long-term performance remains robust, with an inception return of 13.09% and a five-year return of 11.16%, showcasing its potential for sustained growth.
Sector Allocation: A Heavy Bet on Technology
The fund’s sector allocation reveals a significant emphasis on technology, which constitutes 28.32% of its portfolio. This heavy investment in technology aligns with the fund’s growth objective, as tech companies have been at the forefront of innovation and market expansion. Other notable sectors include financials at 19.53% and healthcare at 10.63%, providing a balanced exposure to industries that are essential to global economic growth. The fund’s strategic sector allocation is designed to capitalize on emerging trends and technological advancements, positioning it well for future growth opportunities.
Risk Metrics: Balancing Growth with Stability
PAGLX exhibits a favorable risk profile with a beta of 0.78, indicating lower volatility compared to the broader market. The fund’s alpha of 11.79% suggests it has outperformed its benchmark on a risk-adjusted basis, while a Sharpe ratio of 1.00 reflects a balanced risk-reward trade-off. The fund’s downside risk is relatively low, with a maximum drawdown of -8.5%, which it recovered from swiftly. These metrics highlight PAGLX’s ability to manage risk effectively while pursuing growth, making it a suitable choice for investors seeking a blend of stability and capital appreciation.
Competitive Expense Ratio and Yield Analysis
While PAGLX’s expense ratio of 1.10% is higher than some of its peers, such as Thrivent Global Stock-A (AALGX) with an expense ratio of 0.99%, it is justified by the fund’s strong performance and global diversification strategy. However, the fund’s yield is relatively low at 0.07%, which may not appeal to income-focused investors. Despite this, the fund’s focus on capital growth rather than income generation aligns with its objective and investor expectations. For those prioritizing growth over yield, PAGLX remains a compelling option.
Top Holdings: A Concentration in Market Leaders
PAGLX’s top holdings include some of the world’s most influential companies, such as Microsoft Corp (4.14%), Apple Inc (4.09%), and NVIDIA Corp (2.89%). These companies are leaders in their respective industries and have consistently delivered strong financial performance, contributing to the fund’s overall success. The inclusion of other major players like Amazon.com Inc and Meta Platforms Inc further strengthens the fund’s portfolio, providing a solid foundation for growth. This concentration in market leaders underscores PAGLX’s strategy of investing in companies with proven track records and significant growth potential.
Market Cap Allocation: Focus on Large and Extra-Large Caps
The fund’s market cap allocation is heavily weighted towards large-cap (35.08%) and extra-large-cap (43.59%) companies, reflecting its strategy of investing in established firms with substantial market influence. This focus on larger companies provides a level of stability and predictability, as these firms are typically more resilient to market fluctuations. Additionally, the fund’s exposure to medium-cap companies (14.98%) offers potential for higher growth, balancing the portfolio’s risk and return profile. This strategic allocation supports PAGLX’s objective of achieving long-term capital appreciation through investments in globally recognized companies.
Conclusion: A Strong Contender for Growth-Oriented Investors
In conclusion, TRPrice Global Growth Stock-Adv (PAGLX) stands out as a strong contender for investors seeking global exposure and growth potential. Its impressive recent performance, strategic sector allocation, and focus on large-cap market leaders make it an attractive option for those looking to capitalize on global economic trends. While the fund’s higher expense ratio and low yield may deter some investors, its ability to deliver strong returns and manage risk effectively positions it well for long-term growth. PAGLX is particularly suitable for growth-oriented investors who prioritize capital appreciation over income generation.
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Futher Reading
https://finance.yahoo.com/quote/PAGLX/”>Yahoo: TRPrice Global Growth Stock-Adv
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