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Are there any concerns that Mr. Giroux might be spread too thin?
Sure I have a concern, plus he's been there a long time and could be considering promotion or retirement at some point. So I watch my PRWCX and would have no problem reducing to a toehold if necessary.
That said, I don't like how they're trying to capitalize on the 'Capital Appreciation' moniker. I get why TRowe would do it, but at times it does make me a bit uncomfortable seeing ithem expand the 'brand' like this.
In my honest opinion, it may has passed that point already. TRP analyst support cannot be under-estimated as PRWCX continues to lead in the allocation fund category. Giroux is well aware the overvaluation issue, yet he maintains the tech exposure and balances that with health care and utility. Wish he discuss more on the bond exposure.
TCAL is an interesting vehicle as @WACBC noted, but does TRP has the experience in writing options for individual securities. I will wait and see.
Edit:. We broadened our allocation funds to FPACX and FPAG from Giroux’s team. Their investment universe does not overlap much and the approaches are sufficient different. Despite the good performance of FPAG, the low daily trading volume poses challenging in trading.
given giroux help structure the trp org split, and heads half, i doubt he is leaving. but that is the primary reason he has less time for individual stocks, not the 'cap app' expansion.
Per their just-sent June 30 \semi-annual report' they are 14% in US Treasuries as their top position ... so clearly Giroux sees rough waters (and opportunity) ahead. MSFT, AMZN, NVDA are the next 3 positions at 8, 4, and 3 percent respectively.
What a fund's "top positions" are depends on how one defines them. For your purpose (flight to safety), the number is actually higher than 14%.
The fund's second largest holding according to the fund's webpage is TRP Government Reserve Fund, at 8.66%. This is an internal MMF (click on "internal funds" here).
I'd be inclined to add the full 8.66% to 14.0% (a hefty nearly 23%) in counting "dry powder". If you prefer to prorate based on Treasury holdings, as of May 31 (Gov Reserve's annual shareholder report), holdings break down as: Treasuries 31.6% (10.1% Bills, 21.5% Notes), Treasury repurchase agreements 37.7%, government agency repurchase agreements 26.2%, government agency debt 5.5%.
It's this sort of dynamic allocation of assets that leads me to wonder how closely investors can mimic PRWCX with combinations of other funds.
Just got the email statement from TRP via Schwab. Ya, I noticed the same stuff. $68B AUM, whoa. Difficult to be nimble, unless a big slug is being held back, as you describe. Current domestic and int'l politics are making for a cloudy picture full of landmines. Former allies are turning neutral, at best. Buying at a discount and low P/E means looking beyond the US, for the most part. Gotta be selective. Other pressing priorities have me stashing away dry powder for the next year or so. Still, I'll just continue to reinvest dividends: "free money from the sky." At least it feels that way.
Just got the email statement from TRP via Schwab. Ya, I noticed the same stuff. $68B AUM, whoa. Difficult to be nimble, unless a big slug is being held back, as you describe. Current domestic and int'l politics are making for a cloudy picture full of landmines. Former allies are turning neutral, at best. Buying at a discount and low P/E means looking beyond the US, for the most part. Gotta be selective. Other pressing priorities have me stashing away dry powder for the next year or so. Still, I'll just continue to reinvest dividends: "free money from the sky." At least it feels that way.
I really hate they only report holdings quarterly. It would be nice to see if Giroux is putting any major money to work since that report date, or if he is still raising cash awaiting the storm....
Top ten holdings are reported monthly on the website. The most recent ones reported are as of July 31. Though TRP massages its data in producing that list. So it might not be what you're expecting.
This "Top Ten" (for June 30th) excludes MMFs and bonds shown in the "All Holdings" section on the same webpage): #1 TRP Government Reserve, #3 T-Notes due 2/28/30, #5 T-Notes due 5/31/20, #7 T-Notes due 4/30/30, #10 T-Notes due 3/31/30.
One might infer that a fair amount of cash was put to use in July. As of June 30th, 8.66% of PRWCX was in a MMF. I'm assuming that TRP counts this as cash. The fund page reports only 3.19% in cash as of July 31st.
As to getting more frequent and more timely holdings reports:
NPORT-P: ... Effective November 17, 2025, the filing frequency will change for large entities from quarterly to monthly. Form N-PORT will be due no later than 30 days after the end of each month.
Not exactly a user friendly form, but the data will be available more frequently and more quickly (30 day instead of 60 day lag) starting this fall. With luck, either the fund companies, M*, or both, will provide analysis of the raw data (e.g. top ten holdings, asset allocation).
Comments
That said, I don't like how they're trying to capitalize on the 'Capital Appreciation' moniker. I get why TRowe would do it, but at times it does make me a bit uncomfortable seeing ithem expand the 'brand' like this.
TCAL is an interesting vehicle as @WACBC noted, but does TRP has the experience in writing options for individual securities. I will wait and see.
Edit:. We broadened our allocation funds to FPACX and FPAG from Giroux’s team. Their investment universe does not overlap much and the approaches are sufficient different. Despite the good performance of FPAG, the low daily trading volume poses challenging in trading.
DODBX is another consideration.
but that is the primary reason he has less time for individual stocks, not the 'cap app' expansion.
The fund's second largest holding according to the fund's webpage is TRP Government Reserve Fund, at 8.66%. This is an internal MMF (click on "internal funds" here).
I'd be inclined to add the full 8.66% to 14.0% (a hefty nearly 23%) in counting "dry powder". If you prefer to prorate based on Treasury holdings, as of May 31 (Gov Reserve's annual shareholder report), holdings break down as: Treasuries 31.6% (10.1% Bills, 21.5% Notes), Treasury repurchase agreements 37.7%, government agency repurchase agreements 26.2%, government agency debt 5.5%.
It's this sort of dynamic allocation of assets that leads me to wonder how closely investors can mimic PRWCX with combinations of other funds.
This "Top Ten" (for June 30th) excludes MMFs and bonds shown in the "All Holdings" section on the same webpage): #1 TRP Government Reserve, #3 T-Notes due 2/28/30, #5 T-Notes due 5/31/20, #7 T-Notes due 4/30/30, #10 T-Notes due 3/31/30.
One might infer that a fair amount of cash was put to use in July. As of June 30th, 8.66% of PRWCX was in a MMF. I'm assuming that TRP counts this as cash. The fund page reports only 3.19% in cash as of July 31st.
As to getting more frequent and more timely holdings reports: https://www.dfinsolutions.com/sites/default/files/documents/2024-11/2025_investment_companies_regulatory_calendar.pdf
Not exactly a user friendly form, but the data will be available more frequently and more quickly (30 day instead of 60 day lag) starting this fall. With luck, either the fund companies, M*, or both, will provide analysis of the raw data (e.g. top ten holdings, asset allocation).