QUARTERLY REVIEW International Stock Fund As of September 30, 2018 FUND INFORMATION PORTFOLIO HIGHLIGHTS. PERFORMANCE (NAV, total return) Three Months

Transcription

1 Nimbus 9 QUARTERLY REVIEW FUND INFORMATION PORTFOLIO HIGHLIGHTS The portfolio underperformed the MSCI ACWI Index ex USA during the three-month period ended September 30, Symbol PRITX 1 CUSIP 77956H203 2 May 09, Inception Date of Fund Relative performance drivers: p Returns in consumer discretionary and communication services detracted. p Stock selection in industrials and business services added value. p Regionally, stock selection in developed Europe and the Pacific ex- weighed on relative performance. Benchmark MSCI ACWI ex USA 4 Expense Information (as of the most recent Prospectus)* Fiscal Year End 2% 5 October $14,612,875, % B-1 Fee Additional highlights: p International equity markets look reasonable, but finding names that meet our select growth criteria remains challenging. We leaned into existing holdings in developed markets that we believe can generate attractive earnings growth over many years and sifted through EM to find certain higher-growth and quality cyclical growth stocks that look appealing. p We continue to be focused at the micro level on stocks of companies with solid durable growth stories that we believe offer the best current risk/reward potential rather than on trying to time the markets. Redemption Fee** Total Assets (all share classes) Percent of Portfolio in Cash *Figure is equivalent to the annual Operating Expense ratio. **The redemption fee applies on shares held for 90 days or less. PERFORMANCE (NAV, total return) Three Months Year-toDate One Year Three Years 19% Annualized Five Ten Years Years Fifteen Years 6% -1.98% 1.48% 5.72% 6.85% 7.11% MSCI All Country World Index ex USA MSCI EAFE Index CALENDAR YEAR PERFORMANCE (NAV, total return) Inception Date 2008 May % % % % 14.27% -2% -0.77% 2.29% 28.18% 2017 MSCI All Country World Index ex USA MSCI EAFE Index Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. To obtain the most recent month-end performance or to request a prospectus or summary prospectus, which includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing, please call or visit our website at troweprice.com. Total return figures include changes in principal value, reinvested dividends, and capital gain distributions. The performance information shown does not reflect the deduction of any redemption fee; if it did, the performance would be lower. Effective July 1, 2018, the net version of the benchmark replaced the gross version of the benchmark. The net version of the benchmark assumes the reinvestment of dividends after the deduction of withholding taxes. Share prices are subject to market risk, including loss of the money you invest. In addition, there are risks associated with unfavorable currency exchange rates and political or economic uncertainty abroad. 1

2 PERFORMANCE REVIEW disappointing sales growth numbers due to a decline in average order size, but more significantly in September, Zalando moderated its fiscal year forecast citing slowing demand due to the persistence of unusually hot summer weather. Despite the temporary revenue shortfall, we believe our fundamental thesis remains intact. We think that Zalando has already established a significant lead over peers in terms of scale, distribution network, brand relationships, consumer traffic, technology, and operational efficiency and that Zalando is well placed to replace department stores as a go-to channel for fashion brands to distribute their products. Information About Sector Reclassifications The telecommunication services sector was expanded and renamed communication services at the end of the period. Some securities previously assigned to information technology or consumer discretionary were reclassified as communication services. Additionally, some securities previously assigned to information technology were reclassified as consumer discretionary. Drivers of relative performance and comments on portfolio positioning for the period represent the sector where the security was classified prior to the recent change. Stock Selection in Telecommunication Services Was Also Detrimental Adverse stock selection in wireless telecommunication services providers hurt relative performance. p Sarana Menara Nusantara is an Indonesian cell phone tower operator. The stock has struggled with illiquidity that has made the price more volatile over time. Despite reporting steady earnings this quarter, investors have continued to derate the shares in part due to the ongoing liquidity challenges. Our thesis on the stock is centered on the structural growth in capex in Indonesia, as the larger operators start to roll out 4G and smaller telcos proceed with deepening 3G coverage. We also foresee upside linked to greater smartphone adoption in Indonesia and the follow-on increase in per user data consumption. International Stocks Post Gains Despite Volatility International equities gained ground over the quarter despite continued volatility in response to global trade negotiations, fears of slowing growth, and geopolitical conflicts. Developed European markets were modestly positive boosted by solid corporate earnings, the weaker euro, and mergers and acquisition activity. Switzerland, Sweden, and oil producer Norway produced the strongest returns. In contrast, Italian shares fell as bond yields climbed due to expectations for increased government spending and a larger-than-expected budget deficit. UK shares also sagged, due in part to continued uncertainty about the terms of its withdrawal from the European Union, which is scheduled to take place at the end of March Contribution From the Industrials Sector Bolstered Relative Performance Favorable stock selection in industrials and business services led relative contribution. p Investors rewarded French aerospace company Thales after management reconfirmed fiscal year guidance and released solid first-half performance results driven by strong organic sales growth and healthy margin gains. Management also reassured investors that its acquisition of Belgian chipmaker Gemalto is still on track to close in We believe Thales, which specializes in electronic equipment and systems, is a high quality business that should continue to benefit from positive trends in the majority of its markets, especially commercial aerospace and defense, as well as global digital security when its acquisition of Gemalto goes through. Developed Asian markets rose, buoyed by. Economic data showed that 's GDP expanded in the second quarter thanks in part to a pickup in household and business spending. This reversed the course from a first-quarter contraction. Emerging equity markets declined and underperformed developed markets in the quarter, as trade disputes, a stronger dollar, and rising interest rates in the U.S. dampened risk appetite. In Asia, Chinese equities stumbled as U.S.-China trade tensions intensified. Indian stocks also fell as several defaults by a nonbank financial lender in September hurt investor sentiment. On the plus side, shares in Thailand soared, supported by strong economic growth. In emerging Europe, Russian shares advanced amid rising oil prices, whereas stocks in Turkey plunged due to lira weakness, surging bond yields, news of an economic deceleration in the second quarter, and deteriorating U.S.-Turkey relations. In Latin America, Mexican shares rose and the peso strengthened, as political uncertainty dissipated following the July 1 presidential election and as the country reached a new trade agreement with the U.S. Underweight in Real Estate Also Added Value The portfolio's underexposure to real estate, the worst-performing sector in the index during the period, helped relative returns. Regional Attribution Highlights Stock Selection Detracted, While Region Weighting Proved Beneficial Unfavorable stock choices in developed Europe, especially in Germany, hindered relative results. p Bad news on the litigation front pummeled the stock price of Bayer. The German pharmaceutical and agricultural conglomerate recently completed its acquisition of Monsanto, the maker of the herbicide Roundup at the center of the lawsuits. Although the company is appealing the unfavorable verdict and large punitive award that was handed down in August, the sheer number of outstanding potential cases poses a significant liability overhang at the moment, dampening investors' enthusiasm for the company. Bayer is aggressively defending its science supporting the safety of the weed killer. Sector performance in the MSCI ACWI Index ex USA was mixed, with the weakest returns coming in the real estate, consumer discretionary, and information technology sectors. On the positive side, the health care, energy, and telecommunication services sectors advanced during the quarter. Sector Attribution Highlights Returns in Consumer Discretionary Detracted from Relative Performance Holdings in the Internet and direct marketing retail industry weighed on relative sector results the most. p Shares of Germany-based Zalando, Europe's top online fashion platform, pulled back substantially this quarter. Several events rattled investors. In mid-august the firm released slightly 2

3 Danish hearing aid maker GN Store Nord has been a strong performer over the last several quarters. Good earnings in August drove shares higher yet again. While we continue to think the company should post good organic growth in excess of expectations, and mid-single-digit revenue growth beyond 2019, expectations for the coming year feel more fair to us, and we exited the holding on strength during the quarter. p Grifols stock has been a strong performer over the past several quarters, and as the valuation became less attractive and near-term catalysts seemed to play out, we moderated the position in the plasma maker. The portfolio maintains a stake in the company, however, as we still think Grifols will prove to the market over time that it can sustain its healthy growth within the bioscience division and that margins should expand as the positive effects of the HOLX NAT acquisition flow through. p Roche Holding's shares have outperformed the broader health care sector this quarter thanks to a series of positive drug trial results and updates. These results helped the market become more optimistic on Roche's ability to weather the effects from U.S. biosimilars coming to market over the next few years. We think there remains a good possibility for margin expansion into 2020, which may drive earnings upgrades and boost the stock. In the near term, however, with valuation higher, we trimmed the position. p Stock selection in the Pacific ex-, particularly in China, hampered relative performance. p Shares of Tencent Holdings came under pressure as mobile gaming revenue missed estimates due to regulatory delays in obtaining a monetization license for PUBG, a popular title in the tactical tournament game genre. Investor sentiment surrounding the Chinese economy and trade tensions with the U.S. further depressed shares. Despite market concern over macro uncertainty, we believe Tencent is one of the best-positioned companies in Chinese mobile Internet and should be able to monetize its large, rapidly growing user base. In addition to mobile Internet, Tencent possesses broad capabilities, including online payments, online finance, and cloud computing services. On the positive side, overweighting select companies that are domiciled or trade in the U.S., but which derive the majority of their business from international revenues, contributed to relative performance. p LivaNova is a global medical technology company with strong leadership positions in neuromodulation and cardiac surgery. Second-quarter results released in August beat expectations for both revenue and earnings sending shares higher. Notably, global sales of the company's SenTiva implantable generator for treatment of patients with drug-resistant epilepsy continue to accelerate. Along with attractive base business trends, we believe that LivaNova's pipeline opportunity to address the large market in treatment-resistant depression is also compelling. Consumer Discretionary Trading was active in consumer discretionary with net buying prevailing, reducing the sector's underweight exposure. p We initiated a position in South African pay TV provider Naspers. The stock struggled this quarter alongside most South African equities on broader worries regarding contagion from Turkey's troubles. The decline made Naspers's NAV discount even more compelling considering the value of its underlying holdings. Naspers' stake in Chinese Internet giant Tencent Holdings alone is now worth well over 10 of its market cap. This effectively considers the positions Naspers owns in other Internet businesses, including in Mail.ru and flipkart, not to mention its domestic and African pay TV segments, free options or even at negative implied value, which we think is unrealistic. As Naspers executes on its e-commerce segments and losses there turn into profits, we think the discount should narrow. p We moderated the portfolio's position in Booking Holdings (nee Priceline) following mixed earnings and guidance in early August. While EBITDA growth was a positive surprise, bookings disappointed. Moreover, guidance for the third quarter contained disappointing topline metrics, despite Booking Holdings putting the marketing optimization efforts that had weighed on sales in 2017 behind them. PORTFOLIO POSITIONING AND ACTIVITY Since our investment process is built upon rigorous fundamental research that seeks to identify companies with above-average long-term growth prospects, the portfolio's sector allocations are driven primarily by individual stock considerations but are also influenced, to a lesser degree, by an assessment of macroeconomic prospects. Health Care Trading in the health care sector was brisk, ending with the portfolio's overweight decreasing, though it remains one of the biggest exposures in the portfolio. p We added to medical equipment name Smith & Nephew on weakness and a more attractive valuation. Investors continued to worry about lackluster, below-market growth for Smith & Nephew, uncertainty that was compounded by the recent arrival of a new CEO. However, we think given his prior experience within the medical equipment industry, he will look to focus the company's portfolio of products to concentrate on areas where Smith & Nephew excels. We believe this should lead to revenue growth and gradual margin expansion that we think are not in consensus expectations. p Lonza Group is a Swiss maker of drugs and biologics. We started a position as we think the market does not fully appreciate the firm's strong sales growth and resulting margin expansion potential that should drive earnings growth. The company enjoys a sizable competitive advantage in biologic manufacturing, secular tailwinds within consumer health, and an enticing valuation given its strong growth and management team. Consumer Staples buying activity in consumer staples added to the portfolio's overweight position in the sector. p Jeronimo Martins is an operator of grocery store chains in Portugal, Poland, and Colombia. Its Polish segment is the key driver of the stock. We added a new stake this quarter, as the stock had underperformed on worries surrounding a weak second quarterly earnings report in late July. We bought additional shares throughout the quarter, as we think Jeronimo Martins is well managed and well positioned in Poland via the Biedronka discount store brand. We think like-for-like sales should also start to accelerate, which will help the shares rerate over time. 3

4 MANAGER'S OUTLOOK In our view, international equity markets remain reasonable, as stocks outside the U.S. have continued to underperform their American counterparts, particularly in emerging markets. Corporate expectations have continued to rise in many parts of the market, despite the moderation in economic fundamentals and growth, particularly in Europe and. That has made finding attractive developed market opportunities that meet our threshold for earnings growth more challenging. In Europe, fading growth, low interest rates, and the persistent specter of populist politics have made new ideas tough, but not impossible, to identify. We maintained the portfolio's underweight in, despite the strong recent performance there. In our view, the ese market remains very much driven by momentum, with stocks with relatively mediocre growth retaining high multiples, the opposite of what we look for in an investment. By contrast, the pullback in emerging markets as an asset class during this quarter created numerous opportunities to own good-quality businesses with compelling growth prospects trading at attractive valuations. We are not concerned at this point about contagion from the ongoing troubles in Turkey or elsewhere, given the stronger position many EM countries find themselves in today versus a few years ago. We do remain somewhat cautious on China, as we think the economy there will continue to slow as it weathers the battering from U.S. tariffs and structural problems related to large local government debt loads. But we do not foresee a crisis at this point, and we have been buying companies with strong domestic positions that are more removed from the trade conflict. While long-term challenges remain, China is a market we think could rally in the short term. As a result, we have leaned into our "grinders" in developed markets, names we believe can generate solid earnings growth over many years. In addition, we invested in some higher growth and quality cyclical growth stocks in EM, names where the valuation discount fails to reflect our estimate of the company's significant growth prospects. While we trimmed the portfolio's exposure in and are happy to have the portfolio be underweight at this point given valuations, we reduced the EM underweight, and look to become more neutral versus the market over time. The underweight to the energy sector remains, although we think opportunities within the sector, outside of Canada, could be promising looking forward. Finally, our long-standing positive views on technology, health care, and financials have not changed. As always, we are focused on finding the best stocks of companies we think will continue to post durable growth over the coming years. We utilize a top-down overlay to complement that stock selection process but believe our best insights will come at the company level, not by trying to time the markets. 4

5 QUARTERLY ATTRIBUTION REGION ATTRIBUTION DATA VS. MSCI ALL COUNTRY WORLD INDEX EX USA (3 months ended September 30, 2018) Total Value Added from Region Weight from Stock Selection 5% 1% -1% United States Total Fund Performance Index Performance Value Add - Region Weight Value Add - Stock Selection Total Contribution % Latin America EM EMEA -8% % Canada -1.55% % Pacific Ex Developed Europe 1% % % SECTOR ATTRIBUTION DATA VS. MSCI ALL COUNTRY WORLD INDEX EX USA (3 months ended September 30, 2018) Total Value Added from Group Weight from Stock Selection 6% 1% -1% Total Fund Performance Index Performance Value Add - Group Weight Value Add - Stock Selection Total Contribution Industrials & Bus Real Es- FinanSvcs tate cials 6% % % Consumer MateriStaples Utilities als 3.44% % % Health Care 5.26% Info Tech 3.71% Communication ConServsumer Energy ices Disc -4.38% % % TOP 5 RELATIVE CONTRIBUTORS VS. MSCI ACWI EX USA TOP 5 RELATIVE DETRACTORS VS. MSCI ACWI EX USA (3 months ended September 30, 2018) (3 months ended September 30, 2018) Contribution Contribution Security % of Equities (Basis Points) Security % of Equities (Basis Points) Amadeus It Group Sa 1.4% 21 Bayer Ag 2.2% -38 Wirecard Ag 20 Nxp Semiconductors N V Thales 17 Housing Development Fin Chugai Pharmaceutical C 16 Tencent Holdings Limite -15 Mastercard Inc Julius Baer Gruppe Ag -14 contribution is calculated versus a specific benchmark. It is the difference between the security s absolute contribution to the portfolio and the security s absolute contribution to the benchmark. This reflects the amount the security has impacted relative return. Past performance cannot guarantee future results. All numbers are percentages. Analysis represents the equity-only performance of the portfolio as calculated by the Wilshire Atlas attribution model, and is exclusive of cash, trusts, mutual funds, de-listed securities and other non-equity holdings. Returns will not match official TRP performance because Wilshire uses different pricing and exchange rate sources and does not capture intra-day trading or fair-value pricing. Performance for each security is obtained in the local currency, and if necessary, is converted using an exchange rate determined by an independent third party. Source: Wilshire Atlas, MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P review the GICS structure. The last change occurred on September 28, The Telecommunications Services sector was expanded and renamed Communication Services. Some securities previously assigned to Information Technology or Consumer Discretionary were reclassified as Communication Services. These changes are reflected in the weightings shown. Value added represents the contribution to the sector where the security was previously classified prior to the recent change. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Figures are shown gross of fees. Returns shown with gross dividends reinvested. Performance returns are in USD. 5

6 12-MONTH ATTRIBUTION REGION ATTRIBUTION DATA VS. MSCI ALL COUNTRY WORLD INDEX EX USA (12 months ended September 30, 2018) Total Value Added 6% 3% 2% 4% from Region Weight 1% 2% from Stock Selection -1% -2% -2% Total Fund Performance Index Performance Value Add - Region Weight Value Add - Stock Selection Total Contribution United States 4.62% EM EMEA Canada -8% % Latin Ameri- Pacific Exca -4% % Developed Europe -4% -8% % SECTOR ATTRIBUTION DATA VS. MSCI ALL COUNTRY WORLD INDEX EX USA (12 months ended September 30, 2018) 8% Total Value Added 4% 3% 6% from Group Weight 2% 4% 1% 2% from Stock Selection -1% -2% -2% -4% -3% Total Fund Performance Index Performance Value Add - Group Weight Value Add - Stock Selection Total Contribution Info Tech 3.71% IndustriCommuals & Con- nication ConFinanBus Real Es- Health Materi- sumer Servsumer cials Svcs tate Care Utilities als Staples ices Disc -2.81% % % % % % % 2.88% % Energy % TOP 5 RELATIVE CONTRIBUTORS VS. MSCI ACWI EX USA TOP 5 RELATIVE DETRACTORS VS. MSCI ACWI EX USA (12 months ended September 30, 2018) (12 months ended September 30, 2018) Contribution Contribution Security % of Equities (Basis Points) Security % of Equities (Basis Points) Mastercard Inc 1.1% 53 Bayer Ag 2.2% -68 Wirecard Ag 53 British American Tobacc Thales 47 Sarana Menara Nusa Amadeus It Group Sa Capita Plc -27 Livanova Plc 39 Royal Dutch Shell -24 contribution is calculated versus a specific benchmark. It is the difference between the security s absolute contribution to the portfolio and the security s absolute contribution to the benchmark. This reflects the amount the security has impacted relative return. Past performance cannot guarantee future results. All numbers are percentages. Analysis represents the equity-only performance of the portfolio as calculated by the Wilshire Atlas attribution model, and is exclusive of cash, trusts, mutual funds, de-listed securities and other non-equity holdings. Returns will not match official TRP performance because Wilshire uses different pricing and exchange rate sources and does not capture intra-day trading or fair-value pricing. Performance for each security is obtained in the local currency, and if necessary, is converted using an exchange rate determined by an independent third party. Source: Wilshire Atlas, MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P review the GICS structure. The last change occurred on September 28, The Telecommunications Services sector was expanded and renamed Communication Services. Some securities previously assigned to Information Technology or Consumer Discretionary were reclassified as Communication Services. These changes are reflected in the weightings shown. Value added represents the contribution to the sector where the security was previously classified prior to the recent change. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Figures are shown gross of fees. Returns shown with gross dividends reinvested. Performance returns are in USD. 6

7 PORTFOLIO POSITIONING GEOGRAPHIC DIVERSIFICATION - CHANGES OVER TIME Fund - Prior Year (9/30/17) Fund - Prior (6/30/18) Fund - Current (9/30/18) MSCI ACWI ex USA Current (9/30/18) Europe Pacific Ex North America Middle East & Africa Latin America Reserves SECTOR DIVERSIFICATION CHANGES OVER TIME Fund - Prior Year (9/30/17) Fund - Prior (6/30/18) Fund - Current (9/30/18) MSCI ACWI ex USA Current (9/30/18) 25% 2 15% 1 5% -5% Info Tech Financials Health Care Cons Stpls Indust & Bus Svcs LARGEST PURCHASES Cons Disc Materials Energy Telecomm Svcs Utilities Real Estate LARGEST SALES Current 9/30/18 Prior 6/30/18 Current 9/30/18 Prior 6/30/18 Bayer 2.1% 2.3% Booking Holdings 1.1% 1.5% Alibaba Group Holding MasterCard 1.2 NXP Semiconductors 1.3 Grifols 1.2 Naspers (N) 1.1 Roche Holding 0.6 Smith & Nephew 0.7 Sumitomo Corporation 0.5 Magna International ANHEUSER-BUSCH INBEV SA/NV 0.5 Jeronimo Martins (N) 0.7 Alimentation Couche-Tard Credicorp 0.6 DP World Lonza Group (N) GN Store Nord (E) 0.6 Zalando 0.2 Liberty Global (E) Issuer Sector Issuer (N) New Position (E) Eliminated 7 Sector

8 HOLDINGS TOP 10 ISSUERS % of MSCI ACWI ex USA Issuer Country Industry AIA Group Hong Kong Insurance 2.2% 0.5% Bayer Germany Pharmaceuticals British American Tobacco United Kingdom Tobacco Taiwan Semiconductor Manufacturing Taiwan Semicons & Semicon Equip Alibaba Group Holding China Internet Software & Services Essity Sweden Household Products Tencent Holdings China Internet Software & Services 1.1 UBS Switzerland Capital Markets Thales France Aerospace & Defense CK Hutchison Holdings Hong Kong Industrial Conglomerates TOP 5 OVER/UNDERWEIGHT POSITIONS VS. MSCI ACWI EX USA NET Issuer Country Industry % of MSCI ACWI ex USA Bayer Germany Pharmaceuticals 2.1% 0.4% % Essity Sweden Household Products Thales France Aerospace & Defense 1.6 AIA Group Hong Kong Insurance CK Hutchison Holdings Hong Kong Industrial Conglomerates 1.6 Royal Dutch Shell United Kingdom Oil, Gas & Consumable Fuels Novartis Switzerland Pharmaceuticals - HSBC Holdings United Kingdom Banks - BP United Kingdom Oil, Gas & Consumable Fuels Toyota Motor Automobiles PORTFOLIO MANAGEMENT Portfolio Manager: Richard N. Clattenburg Managed Fund Since: 2015 Joined Firm:

9 Additional Disclosures T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P review the GICS structure. The last change occurred on September 28, Unless indicated otherwise, the information utilizes the GICS structure in place prior to the recent change on September 28, 2018, and will be updated upon the next reporting cycle. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Source for MSCI data: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. Unless otherwise noted MSCI Index Returns are shown with reinvestment of dividends after the deduction of withholding taxes. The manager s views and portfolio holdings are historical and subject to change. This material should not be deemed a recommendation to buy or sell any of the securities mentioned. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the Fund and no assumptions should be made that the securities identified and discussed were or will be profitable. The information shown does not reflect any ETFs that may be held in the portfolio. Diversification exhibits may not add to 10 due to exclusion or inclusion of cash. Certain numbers in this report may not equal stated totals due to rounding. Unless otherwise stated, data is as of the report date. Unless indicated otherwise the source of all data is T. Rowe Price. This material has been prepared for informational purposes only. The views and opinions stated in this commentary are those of the portfolio managers listed as of the date indicated. These views and opinions are subject to change based on market or other conditions and may differ from those of other T. Rowe Price associates. Actual market and investment results may differ materially from expectations T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. T. Rowe Price Investment Services, Inc., Distributor