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Why We’ve Downgraded This Popular Fund

The following is our latest Fund Analyst Report for T. Rowe Price Blue Chip Growth (TRBCX)Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

Despite T. Rowe Price Blue Chip Growth’s promising future, the eventual retirement of experienced lead manager Larry Puglia drops its Morningstar Analyst Rating to Silver from Gold for all share classes except the more expensive R shares, which get a Bronze rating.

A new era looms for this strategy, which Puglia has successfully led since its 1993 inception. Puglia, 60 years old in 2020, has not set a date, but is likely to retire within the next two years. T. Rowe Price solidified succession plans by naming Paul Greene associate manager in January 2020, allowing him a long time to delve beyond his areas of expertise.

Greene brings valuable skills to the job. He delivered knockout returns at T. Rowe Price Communications & Technology (PRMTX) from May 2013 to April 2020, covering picks that have also boosted results here, including (AMZN) and Facebook (FB). He’s familiar with holdings consuming 40% of the portfolio’s assets. Plus, he’ll rely on the same central analyst team from which Puglia draws, which is historically strong in growth-leaning sectors. These factors help set Greene up for…

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