With the KBW Bank Index trending higher, many investor eyes are now on the financial services industry – especially the big bank stocks.
This week, we are featuring the T. Rowe Price Financial Services (PRISX) fund as our fund of the week. Many analysts believe some of the major bank stocks have reached their “breakaway gaps” regarding share prices and have enhanced already bullish estimates for many of the stocks, including JP Morgan (JPM), Citigroup, Morgan Stanley (MS) and Goldman Sachs (GS).
Inside the Fund
T. Rowe Price Financial Services fund was launched in 1996 and is managed by Gabriel Solomon. The fund currently has $510 million in assets under management (AUM).
The fund is heavily invested, with less than 1% of its assets in cash. Nearly 97% of its holdings are in the financial services sector – with around 7% of these holdings in foreign securities.
Historical Performance
| 2010 | 2011 | 2012 | 2013 | YTD |
|---|---|---|---|---|
| 12.90% | -15.28% | 27.48% | 38.93% | 9% |
T. Rowe Price Financial Services Fund’s Largest Holdings
Around 20% of the fund’s portfolio is composed of its top five holdings. Each of these holdings has a positive 3-month performance, compared to PRISX’s 3-month performance of +5.75%.
| Symbol | Stock | Portfolio Weight | 3 Month Performance |
|---|---|---|---|
| C | Citigroup | 5.39% | +7.4% |
| JPM | JP Morgan | 4.80% | +5.0% |
| BAC | Bank of America | 4.13% | +7.4% |
| V | Visa | 3.64% | +22% |
| WFC | Wells Fargo | 3.29% | +6% |
The Bottom Line
This fund is a great way for investors to gain exposure to a potential upside in the financial services industry. By purchasing a mutual fund like this one, investors are able to gain exposure to the industry while remaining diversified.