Why We Upgraded T. Rowe Price Value

Manager Ryan Hedrick has proven a lot in his short tenure at T. Rowe Price Value TRVLX, earning People and Process Pillar upgrades to Above Average from Average and boosting the fund’s Morningstar Medalist Rating to Silver from Neutral.

When Hedrick assumed control of the fund at 2023’s start, he said he would follow a similar approach, with a few changes, as predecessor Mark Finn. Hedrick is still willing to pay premiums for companies in good financial shape and with sound business models, but he remains mindful of valuations. Like Finn, he’s also willing to make tactical shifts rather than simply buy and hold. But he’s reduced portfolio turnover from above 100% to about 60% and moderated single stock and sector bets to give the fund a more consistent holding and performance profile.

Hedrick also still has access to T. Rowe’s 90-person analyst team, quantitative researchers, and T. Rowe’s other value managers. This, along with increased confidence in Hedrick’s ability to invest in quality companies at value prices, his well-thought-out philosophy, and his strong grasp of risk management contributed to the fund’s pillar upgrades.

Key Morningstar Metrics for T. Rowe Price Value

Morningstar Medalist Rating: Silver

Process Pillar: Above Average

People Pillar: Above Average

Parent Pillar: High

Slower Decision-Making Drives a Process Downgrade

MFS Global Equity’s MWEIX process remains strong, but its timing hasn’t been great in recent years. The managers have often waited for an “ideal” point to buy, particularly in the technology sectors, which has been a drag on performance over the past few years. The fund’s performance landed in the global large-stock Morningstar Category’s bottom quartile in both 2023 and 2024.

Morningstar downgraded the strategy’s Process Pillar to Above Average from High, dropping the I shares’ Medalist Rating to Silver from Gold. Its mix of value and growth investing, disciplined focus on profitable firms with solid competitive advantages in their industries, and strong risk management still has long-term appeal. Idea generation remains strong from MFS’ large pool of analysts.

Key Morningstar Metrics for MFS Global Equity

Morningstar Medalist Rating: Neutral

Process Pillar: Above Average

People Pillar: High

Parent Pillar: High

Upcoming Liquidation Shifts Priorities

MassMutual Investments will liquidate the MassMutual Select TRP Retirement series in 2025’s third quarter, which resulted in a Process Pillar downgrade from High to Low. This Pillar downgrade led to the MassMutual Select TRP Retirement 2030 I shares’ MMTRX Medalist Rating dropping from Bronze to Neutral. As the focus of managers will naturally shift toward the liquidation phase of the fund, rather than executing its process, it’s no longer a viable long-term investment.

Key Morningstar Metrics for MassMutual Select TRP Retirement 2030

Morningstar Medalist Rating: Neutral

Process Pillar: Low

People Pillar: High

Parent Pillar: Average