Global Stock Fund Global Stock Fund Advisor Class Global Stock Fund I Class

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1 ANNual REPORT October 31, 2017 PRGSX PAGSX TRGLX T. Rowe Price Global Stock Fund Global Stock Fund Advisor Class Global Stock Fund I Class The fund invests in companies in developed and, to a lesser extent, emerging markets anywhere in the world.

2 HIGHLIGHTS The Global Stock Fund returned 29.04% in the 12-month period ended October, 31, 2017, solidly outperforming its MSCI All Country World Index benchmark and the Lipper Global Multi-Cap Growth Funds Average. We generated strong results in the period in emerging markets, Japan, and the United States. Stock selection and sector weight in information technology were key drivers of the fund s outperformance during the period. We made some incremental adjustments to the portfolio during the period based on sharp market adjustments that transpired following the U.S. elections and stronger global economic growth trends. We increased the portfolio s exposure to financials and reduced our consumer discretionary holdings. We are confident in our ability to buy stocks with improving and durable growth characteristics that will allow them to deliver superior long-term returns before their potential becomes obvious to other investors. The views and opinions in this report were current as of October 31, They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the fund s future investment intent. The report is certified under the Sarbanes-Oxley Act, which requires mutual funds and other public companies to affirm that, to the best of their knowledge, the information in their financial reports is fairly and accurately stated in all material respects. REPORTS ON THE WEB Sign up for our Program, and you can begin to receive updated fund reports and prospectuses online rather than through the mail. Log in to your account at troweprice.com for more information.

3 Manager s Letter Fellow Shareholders Global stock indexes generated robust returns in the 12-month period. Investors responded positively to strong economic data in both developed markets and emerging markets. Better-than-expected corporate earnings also fueled sentiment. Investors also seemed unfazed by potentially seismic geopolitical events. Fears of slowing global growth faded during the period, aiding our portfolio s growth-focused approach. Your fund returned 29.04% for the 12-month reporting period ended October 31, (Results for the Advisor and I Class shares were slightly lower, reflecting their different expense ratios.) The fund Performance Comparison Total Return Periods Ended 10/31/17 6 Months 12 Months Global Stock Fund 12.00% 29.04% Global Stock Fund Advisor Class Global Stock Fund I Class * MSCI All Country World Index Lipper Global Multi-Cap Growth Funds Average *Since inception 3/6/17. outperformed both the MSCI All Country World Index benchmark and the Lipper Global Multi-Cap Growth Funds Average. The fund s longer-term relative performance was strong. Based on cumulative total return, Lipper ranked the Global Stock Fund 38 of 225, 8 of 189, 6 of 166, 37 of 84, and 1 of 15 in the global multi-cap growth funds universe for the 1-, 3-, 5-, and 10-year and since month-end after inception periods ended October 31, 2017, respectively. (The Lipper since-inception ranking was calculated from 12/31/1995 through 10/31/2017. Results will vary for other periods. Past performance cannot guarantee future results.) Our stock selection and overweight to information technology as well as stock selection in health care and financials helped drive relative outperformance. Regionally, stock selection and an overweight in 1

4 both the United States and Japan contributed to relative returns. Stock selection in emerging markets, particularly in China and Brazil, were strongly supportive. MARKET REVIEW Fears of slowing global growth largely faded during the latter half of the period, as growth stocks became more attractive to investors. Emerging markets outperformed developed markets, but both were Market Performance Periods Ended 10/31/17 Total Return (In U.S. Dollar Terms) 6 Months 12 Months China 28.61% 41.30% South Korea France Sweden United States India United Kingdom Japan Source: RIMES Online, using MSCI indexes. strong over the past 12 months. Emerging markets initially struggled amid concerns that the Trump administration would impose import taxes and spark a trade war. But those concerns receded amid an increase in manufacturing, consumer demand, exports, oil prices, and corporate earnings. China s economic outlook stabilized, further easing fears among global investors. Most European developed markets rose as valuations looked more attractive than in the U.S. Stronger emerging market currencies enhanced returns for U.S.-based investors. PORTFOLIO REVIEW AND STRATEGY Our strategy is to buy quality companies where we have an insight about improving economic returns in the future and a respect for valuation. The goal of the portfolio is to outperform over the full market cycle while managing downside volatility. We prefer to maintain a focused, high-conviction portfolio of 60 to 80 stocks. Holdings primarily include mid- and large-cap stocks as well as some small-cap companies with good long-term potential. We travel around the world to get local perspectives on companies and select those that, in our belief, are on the right side of change and thereby offer a compelling investment opportunity. 2

5 At the core of the fund s approach is our belief that innovation is disrupting the global competitive landscape across multiple dimensions, including technology and consumer preferences. One of our key objectives is to position the fund on the right side of these changes. Examples of creative destruction include: 1. Internet-based stocks in retail, media delivery, and advertising companies that benefit from market disruption and rapid changes in consumer behavior and the accelerating trend toward e-commerce. 2. Health care companies with promising drugs and distribution pipelines. Our portfolio construction is driven from fundamental analysis, and, as a consequence, we trimmed and eliminated some of our winners that no longer merited ownership. Our geographic diversification remained largely unchanged during the period. We made incremental adjustments to the portfolio during the period based on sharp market adjustments that transpired following the U.S. elections and stronger global economic growth. Our sector weightings remained largely the same, though, notably, we increased the portfolio s exposure to financials and reduced our consumer discretionary holdings. We added to information technology and health care. During the Geographic Diversification Middle East and Africa 1% Latin America 1% North America 58% Japan 9% Pacific ex Japan 13% Based on net assets as of 10/31/17. Other and Reserves 2% Europe 16% period, some of the bestperforming stocks came from less obvious areas for traditional growth investors, including financials and industrials and business services. The fund is underweight energy and utilities. Internet-based retail, media delivery, and advertising companies were strong outperformers. We believe companies that are focused on cloud software applications, mobile connectivity, and consumer and enterprise technology products are best positioned for long-term growth. Within the information 3

6 technology sector, China-based online and mobile commerce company Alibaba Group Holding contributed the strongest return. While we sold some of the stock on strength, it remained one of the top 10 holdings as a percentage of the fund s assets. PayPal Holdings benefited from massive global growth of digital online payments and expansion of its share of the digital payments market. Platform companies Amazon.com, Apple, Baidu, Ctrip.com International, and Tencent Holdings are among those in which we have a high level of conviction. Earlier in Sector Diversification Percent of Net Assets 4/30/17 10/31/17 Information Technology 29.8% 32.6% Consumer Discretionary Financials Health Care Industrials and Business Services Consumer Staples Materials Energy Utilities Real Estate the year, we initiated a position in entertainment product company Nintendo, and the stock was another strong contributor. Nintendo s growth accelerated as it ramped up production of its popular Switch gaming console in March. (Please refer to the portfolio of investments for a complete list of holdings and the amount each represents in the portfolio.) Telecommunication Services We increased the fund s Other and Reserves exposure to Apple and Total 100.0% 100.0% Ctrip.com International during the final months Historical weightings reflect current industry/sector of the period. Apple has classifications. since become the largest position in the portfolio. We believe its latest offering, the iphone X, will sell well and increase the company s market share and profits. China s largest online travel agency, Ctrip.com International, effectively controls about 85% of the industry, and we believe that it will continue to benefit from gaining bargaining power over travel suppliers and achieve margin improvement as the number of competitors dwindles. 4

7 Consumer discretionary was one of our weakest contributors, mainly because of stock picks in companies that we believe have strong long-term brands but are facing intense near-term industry headwinds. We continue to favor the sector and maintain an overweight because we believe specific areas within consumer discretionary are poised for solid growth. Market disruption, driven by rapid changes in consumer behavior and e-commerce, has led to more dramatic demarcation between winners and losers. Amazon.com is a consistent outperfomer in the portfolio, and we think its e-commerce and cloud computing businesses are likely to gain market share. The stock is one of the fund s largest holdings, and we increased our exposure toward the end of the period. Global streaming video service Netflix also is one of our biggest holdings, as we like its expanding international profile and growth in subscribers. In the first half of the year, we eliminated global spirits firm Diageo, Dick s Sporting Goods, and Home Depot. Clothing retailer Hennes & Mauritz and restaurant Chipotle Mexican Grill (both since eliminated), luxury apparel maker Tapestry (formerly Coach), and specialty retailer L Brands were all relative underperformers. We believe that the most successful retailers are likely to be companies with strong brands, and we think that Tapestry and L Brands, which owns intimate clothier Victoria s Secret, have room to prosper in the current retail environment. Our health care holdings performed well. Bluebird Bio was one of the strongest contributors. The company focuses on developing curative gene therapies for blood-based diseases and cancers. Shares surged following an announcement of a phase III study for one of its important drugs as well as positive updates for another important pending drug. Additionally, Bluebird Bio has a strong pipeline of promising drugs in clinical trials. Vertex Pharmaceuticals shares moved higher following the release of positive clinical data of two phase III trials for a cystic fibrosis therapy that has the potential to expand to a wider patient population. Within financials, Morgan Stanley and JPMorgan Chase turned in strong performances, fueled by rising interest rates, improved growth, and expectations of fewer regulations. 5

8 We have comparatively little exposure to utilities and no exposure to real estate or telecommunication services due to limited opportunities for strong growth. While our energy holdings outperformed the benchmark, we believe energy prices will remain under pressure, and our focus is on holding a small number of names that we think are the lowest-cost producers. Our belief is that utilities offer few opportunities for strong growth. Additionally, we are underweight in consumer staples, as we think these companies will not fare well as customers shift their e-commerce and social networking preferences. INVESTMENT OUTLOOK Many of the companies we have successfully identified as being on the right side of change in the past few years, particularly the large technology platform companies, have become more widely recognized by the market and owned by investors. Those trades have become more crowded, and while the companies continue to have promising futures, it is only prudent to temper return expectations for the next 12 months relative to this past year. Despite higher market valuations and the duration of this bull market, we continue to see innovation unlocking capacity and disrupting virtually every industry around the world, which presents interesting investment opportunities. We are paying particular attention to how the world s economies grow, watching whether inflation accelerates and interest rates rise strongly enough to spark a shift into more defensive cyclical stocks. Political risk is also on the radar. Within the U.S., it was uncertain, as we wrote this letter, whether the Trump administration would succeed in delivering planned tax reform and deregulation. Europe appears to be recovering from concerns about a breakup of the European Union and benefiting from renewed political optimism. Equity valuations in developed markets outside the Unites States are generally more compelling, in our view, as many economies are in the earlier stages of their economic cycle. 6

9 Traditional U.S. companies, especially those that have brand relationships with their customers and can drive traffic to their stores, offer one of the more intriguing opportunities over the next 12 months. We view China in somewhat less favorable light over the next 12 months, as we expect that less stimulus from China s government could result in slower growth compared with the previous 12 months. Our view is that emerging markets and Japan are fertile grounds for companies with strong growth opportunities. Respectfully submitted, David J. Eiswert Chairman of the fund s Investment Advisory Committee November 15, 2017 The committee chairman has day-to-day responsibility for managing the portfolio and works with committee members in developing and executing the fund s investment program. 7

10 Risks of International Investing Funds that invest overseas generally carry more risk than funds that invest strictly in U.S. assets. Funds investing in a single country or in a limited geographic region tend to be riskier than more diversified funds. Risks can result from varying stages of economic and political development; differing regulatory environments, trading days, and accounting standards; and higher transaction costs of non-u.s. markets. Non-U.S. investments are also subject to currency risk, or a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency. Glossary Lipper averages: The average of available mutual fund performance returns in categories defined by Lipper Inc. MSCI All Country World Index: A capitalization-weighted index of stocks from developed and emerging markets worldwide. Note: 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. 8

11 Portfolio Highlights TWENTY-FIVE LARGEST HOLDINGS Percent of Net Assets 10/31/17 Apple, United States 5.3% Amazon.com, United States 3.5 JPMorgan Chase, United States 2.8 Salesforce.com, United States 2.5 Chugai Pharmaceutical, Japan 2.2 Samsung Electronics, South Korea 2.1 Microsoft, United States 2.1 Grifols, Spain 2.1 Tapestry, United States 2.1 Becton, Dickinson & Company, United States 2.0 Charles Schwab, United States 2.0 Alibaba Group Holding, China 2.0 PayPal Holdings, United States 2.0 Ross Stores, United States 2.0 Vertex Pharmaceuticals, United States 1.9 L Brands, United States 1.9 Alphabet, United States 1.8 Illumina, United States 1.8 James Hardie Industries, Australia 1.8 Assa Abloy, Sweden 1.7 Netflix, United States 1.7 Reckitt Benckiser, United Kingdom 1.7 Axis Bank, India 1.6 Workday, United States 1.5 NextEra Energy, United States 1.5 Total 53.6% Note: The information shown does not reflect any exchange-traded funds (ETFs), cash reserves, or collateral for securities lending that may be held in the portfolio. 9

12 Performance and Expenses Growth of $10,000 This chart shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with benchmarks, which may include a broad-based market index and a peer group average or index. Market indexes do not include expenses, which are deducted from fund returns as well as mutual fund averages and indexes. GLOBAL STOCK FUND $30,000 25,000 20,000 15,000 10,000 5,000 As of 10/31/17 Global Stock Fund $15,394 MSCI All Country World Index $15,179 Lipper Global Multi-Cap Growth Funds Average $14,915 10/07 10/08 10/09 10/10 10/11 10/12 10/13 10/14 10/15 10/16 10/17 Note: Performance for the Advisor and I Class will vary due to their differing fee structures. See returns table below. Average Annual Compound Total Return Since Inception Periods Ended 10/31/17 1 Year 5 Years 10 Years Inception Date Global Stock Fund 29.04% 16.92% 4.41% Global Stock Fund Advisor Class Global Stock Fund I Class 18.40% 3/6/17 This table shows how the fund would have performed each year if its actual (or cumulative) returns for the periods shown had been earned at a constant rate. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. Past performance cannot guarantee future results. 10

13 Fund Expense Example As a mutual fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees or sales loads, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the most recent six-month period and held for the entire period. Please note that the fund has three share classes: The original share class (Investor Class) charges no distribution and service (12b-1) fee, the Advisor Class shares are offered only through unaffiliated brokers and other financial intermediaries and charge a 0.25% 12b-1 fee, and I Class shares are available to institutionally oriented clients and impose no 12b-1 or administrative fee payment. Each share class is presented separately in the table. Actual Expenses The first line of the following table (Actual) provides information about actual account values and expenses based on the fund s actual returns. You may use the information on this line, together with your account balance, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number on the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes The information on the second line of the table (Hypothetical) is based on hypothetical account values and expenses derived from the fund s actual expense ratio and an assumed 5% per year rate of return before expenses (not the fund s actual return). You may compare the ongoing costs of investing in the fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Note: T. Rowe Price charges an annual account service fee of $20, generally for accounts with less than $10,000. The fee is waived for any investor whose T. Rowe Price mutual fund accounts total $50,000 or more; accounts electing to receive electronic delivery of account statements, transaction confirmations, prospectuses, and shareholder reports; or accounts of an investor who is a T. Rowe Price Personal Services or Enhanced Personal Services client (enrollment in these programs generally requires T. Rowe Price assets of at least $250,000). This fee is not included in the accompanying table. If you are subject to the fee, keep it in mind when you are estimating the ongoing expenses of investing in the fund and when comparing the expenses of this fund with other funds. You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs, such as redemption fees or sales loads. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. To the extent a fund charges transaction costs, however, the total cost of owning that fund is higher. 11

14 Fund Expense Example (continued) Global Stock Fund Beginning Ending Expenses Paid Account Value Account Value During Period* 5/1/17 10/31/17 5/1/17 to 10/31/17 Investor Class Actual $1, $1, $4.44 Hypothetical (assumes 5% return before expenses) 1, , Advisor Class Actual 1, , Hypothetical (assumes 5% return before expenses) 1, , I Class Actual 1, , Hypothetical (assumes 5% return before expenses) 1, , * Expenses are equal to the fund s annualized expense ratio for the 6-month period, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (184), and divided by the days in the year (365) to reflect the half-year period. The annualized expense ratio of the Investor Class was 0.83%, the Advisor Class was 1.15%, and the I Class was 0.69%. 12

15 Quarter-End Returns Since Inception Periods Ended 9/30/17 1 Year 5 Years 10 Years Inception Date Global Stock Fund 21.46% 15.51% 4.65% Global Stock Fund Advisor Class Global Stock Fund I Class 14.28% 3/6/17 Current performance may be higher or lower 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. For the most recent month-end performance, please visit our website (troweprice.com) or contact a T. Rowe Price representative at or, for Advisor and I Class shares, The performance information shown does not reflect the deduction of a 2% redemption fee on shares held for 90 days or less. If it did, the performance would be lower. This table provides returns through the most recent calendar quarter-end rather than through the end of the fund s fiscal period. It shows how the fund would have performed each year if its actual (or cumulative) returns for the periods shown had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. When assessing performance, investors should consider both short- and long-term returns. Expense Ratio Global Stock Fund 0.89% Global Stock Fund Advisor Class 1.16 Global Stock Fund I Class 0.73 The expense ratio shown is as of the fund s fiscal year ended 10/31/16. The expense ratio for the Global Stock Fund I Class is estimated as of the class s inception date of 3/6/17. This number may vary from the expense ratio shown elsewhere in this report because it is based on a different time period and, if applicable, includes acquired fund fees and expenses but does not include fee or expense waivers. 13

16 Financial Highlights For a share outstanding throughout each period Investor Class Year Ended 10/31/17 10/31/16 10/31/15 10/31/14 10/31/13 NET ASSET VALUE Beginning of period $ $ $ $ $ Investment activities Net investment income (1) 0.16 (2) Net realized and unrealized gain / loss Total from investment activities Distributions Net investment income (0.18) (0.09) (0.07) (0.05) (0.14) Net realized gain (0.11) (0.02) (0.03) Total distributions (0.18) (0.09) (0.18) (0.07) (0.17) NET ASSET VALUE End of period $ $ $ $ $ Ratios/Supplemental Data Total return (3) 29.04% (2) 5.55% 6.27% 13.52% 32.96% Ratio of total expenses to average net assets 0.84% (2) 0.89% 0.89% 0.89% 0.91% Ratio of net investment income to average net assets 0.48% (2) 0.56% 0.33% 0.32% 0.38% Portfolio turnover rate 96.4% 134.6% 136.5% 137.5% 156.4% Net assets, end of period (in thousands) $ 834,130 $ 545,479 $ 517,763 $ 486,426 $ 505,621 (1) Per share amounts calculated using average shares outstanding method. (2) Excludes expenses waived related to the waiver of fund-level expenses ratably across all classes in accordance with SEC rules. (3) Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions and payment of no redemption or account fees. The accompanying notes are an integral part of these financial statements. 14

17 Financial Highlights For a share outstanding throughout each period Advisor Class Year Ended 10/31/17 10/31/16 10/31/15 10/31/14 10/31/13 NET ASSET VALUE Beginning of period $ $ $ $ $ Investment activities Net investment income (1) 0.07 (2) 0.10 (3) 0.01 (3) 0.02 (3) 0.03 (3) Net realized and unrealized gain / loss Total from investment activities Distributions Net investment income (0.09) (0.08) (0.07) (0.12) Net realized gain (0.11) (0.03) Total distributions (0.09) (0.08) (0.18) (0.15) NET ASSET VALUE End of period $ $ $ $ $ Ratios/Supplemental Data Total return (4) 28.62% (2) 5.25% (3) 6.02% (3) 13.22% (3) 32.64% (3) Ratio of total expenses to average net assets 1.15% (2) 1.15% (3) 1.15% (3) 1.15% (3) 1.15% (3) 15

18 Financial Highlights For a share outstanding throughout each period Ratios/Supplemental Data (continued) Year Ended 10/31/17 10/31/16 10/31/15 10/31/14 10/31/13 Ratio of net investment income to average net assets 0.21% (2) 0.35% (3) 0.04% (3) 0.07% (3) 0.18% (3) Portfolio turnover rate 96.4% 134.6% 136.5% 137.5% 156.4% Net assets, end of period (in thousands) $ 5,079 $ 4,826 $ 2,771 $ 1,492 $ 1,104 (1) Per share amounts calculated using average shares outstanding method. (2) Excludes expenses waived related to the waiver of fund-level expenses ratably across all classes in accordance with SEC rules. (3) See Note 6. Excludes expenses in excess of a 1.15% contractual expense limitation in effect through 2/28/18. (4) Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions and payment of no redemption or account fees. The accompanying notes are an integral part of these financial statements. 16

19 Financial Highlights For a share outstanding throughout the period I Class NET ASSET VALUE 3/6/17 (1) Through 10/31/17 Beginning of period $ Investment activities Net investment income (2) 0.16 (3) Net realized and unrealized gain / loss 5.56 Total from investment activities 5.72 NET ASSET VALUE End of period $ Ratios/Supplemental Data Total return (4) 18.40% (3) Ratio of total expenses to average net assets 0.69% (3)(5) Ratio of net investment income to average net assets 0.75% (3)(5) Portfolio turnover rate 96.4% Net assets, end of period (in thousands) $ 13,138 (1) Inception date (2) Per share amounts calculated using average shares outstanding method. (3) See Note 6. Excludes expenses in excess of a 0.05% contractual operating expense limitation in effect through 2/28/19. (4) Total return reflects the rate that an investor would have earned on an investment in the fund during the period, assuming reinvestment of all distributions and payment of no redemption or account fees. Total return is not annualized for periods less than one year. (5) Annualized The accompanying notes are an integral part of these financial statements. 17

20 First Page Footer T. Rowe Price Global Stock Fund October 31, 2017 Portfolio of Investments Shares $ Value (Cost and value in $000s) AUSTRALIA 1.8% Common Stocks 1.8% James Hardie Industries, GDR 985,029 15,040 Total Australia (Cost $14,687) 15,040 BRAZIL 0.9% Common Stocks 0.9% Lojas Renner 451,740 4,762 Raia Drogasil 127,500 3,068 Total Brazil (Cost $6,492) 7,830 CHINA 3.7% Common Stocks 3.6% Alibaba Group Holding, ADR (USD) (1) 92,287 17,063 Ctrip.com International, ADR (USD) (1) 130,700 6,259 Tencent Holdings (HKD) 149,400 6,715 Tencent Holdings, Rights, 11/19/17 (1) 117 Convertible Preferred Stocks 0.1% 30,037 Xiaoju Kuaizhi, Series A-17, Acquisition Date: 10/19/15 Cost $552 (USD) (1)(2)(3) 20,122 1,025 1,025 Total China (Cost $23,609) 31,062 FRANCE 2.6% Common Stocks 2.6% BNP Paribas 131,336 10,251 Total 215,892 12,033 Total France (Cost $18,879) 22,284 18

21 (Cost and value in $000s) GERMANY 0.7% Shares $ Value Preferred Stocks 0.7% Sartorius (4) 64,262 6,000 Total Germany (Cost $6,072) 6,000 INDIA 3.0% Common Stocks 3.0% Axis Bank 1,714,747 13,917 HDFC Bank 423,292 11,848 Total India (Cost $19,297) 25,765 INDONESIA 1.0% Common Stocks 1.0% Bank Central Asia 5,424,500 8,356 Total Indonesia (Cost $6,293) 8,356 ITALY 1.2% Common Stocks 1.2% Intesa Sanpaolo 3,083,053 10,365 Total Italy (Cost $8,561) 10,365 JAPAN 9.1% Common Stocks 9.1% Asics 396,800 6,066 Calbee (5) 245,600 8,289 Chugai Pharmaceutical 397,100 18,933 Keyence 12,700 7,051 Nintendo 27,900 10,824 Persol Holdings 437,900 10,858 Recruit Holdings 437,400 10,724 Sumitomo Metal Mining 117,800 4,647 19

22 (Cost and value in $000s) Shares $ Value Total Japan (Cost $63,847) 77,392 NETHERLANDS 1.2% Common Stocks 1.2% ASML Holding 55,262 9,971 Total Netherlands (Cost $6,545) 9,971 SINGAPORE 0.1% Common Stocks 0.0% Flipkart Private Limited, Acquisition Date: 3/19/15 Cost $111 (USD) (1)(2)(3) Preferred Stocks 0.1% Flipkart Private Limited, Series A, Acquisition Date: 3/19/15 Cost $38 (USD) (1)(2)(3) Flipkart Private Limited, Series C, Acquisition Date: 3/19/15 Cost $67 (USD) (1)(2)(3) Flipkart Private Limited, Series E, Acquisition Date: 3/19/15 Cost $125 (USD) (1)(2)(3) 1, Flipkart Private Limited, Series G, Acquisition Date: 12/17/14 Cost $749 (USD) (1)(2)(3) 6, Total Singapore (Cost $1,091) 1,013 SOUTH KOREA 2.1% Common Stocks 2.1% Samsung Electronics 7,350 18,118 Total South Korea (Cost $11,445) 18,118 SPAIN 2.1% Common Stocks 2.1% Grifols, ADR (USD) 749,890 17,

23 (Cost and value in $000s) Shares $ Value Total Spain (Cost $12,231) 17,735 SWEDEN 3.1% Common Stocks 3.1% Assa Abloy, Class B 704,865 14,860 Hexagon, B Shares 220,315 11,297 Total Sweden (Cost $22,676) 26,157 SWITZERLAND 1.2% Common Stocks 1.2% Ams 110,160 10,051 Total Switzerland (Cost $8,117) 10,051 TAIWAN 2.0% Common Stocks 2.0% Largan Precision 58,000 10,994 Taiwan Semiconductor Manufacturing 794,000 6,419 Total Taiwan (Cost $16,394) 17,413 UNITED ARAB EMIRATES 0.8% Common Stocks 0.8% DP World (USD) 281,577 6,685 Total United Arab Emirates (Cost $5,125) 6,685 UNITED KINGDOM 3.8% Common Stocks 3.8% Liberty Global, Series C (USD) (1) 198,105 5,921 London Stock Exchange 199,655 9,971 Petra Diamonds (1) 2,044,706 2,090 Reckitt Benckiser 161,110 14,414 21

24 (Cost and value in $000s) Shares $ Value Total United Kingdom (Cost $36,028) 32,396 UNITED STATES 57.8% Common Stocks 57.8% Alphabet, Class A (1) 15,090 15,589 Amazon.com (1) 26,982 29,823 Apple 267,474 45,214 Becton, Dickinson & Company 82,089 17,130 Bluebird Bio (1) 48,209 6,706 Charles Schwab 381,582 17,110 Charter Communications, Class A (1) 14,850 4,962 Coherent (1) 24,543 6,448 EOG Resources 82,400 8,229 Finisar (1) 170,300 4,009 First Republic Bank 91,988 8,960 Illumina (1) 74,270 15,240 JPMorgan Chase 233,700 23,513 L Brands 372,962 16,052 Lumentum Holdings (1)(5) 126,280 7,975 MarketAxess Holdings 27,220 4,736 Microsoft 216,300 17,992 Middleby (1) 61,587 7,138 Netflix (1) 74,700 14,673 NextEra Energy 83,800 12,995 PayPal Holdings (1) 234,065 16,984 Philip Morris International 111,233 11,639 Priceline (1) 4,369 8,353 Prothena (1) 37,400 2,171 Ross Stores 266,000 16,888 SAGE Therapeutics (1) 75,000 4,746 Salesforce.com (1) 209,166 21,406 Southwest Airlines 227,800 12,269 Splunk (1) 179,490 12,080 Tapestry 431,580 17,673 22

25 (Cost and value in $000s) Shares $ Value TD Ameritrade Holding 259,107 12,953 Tesla (1)(5) 29,702 9,847 Ultimate Software Group (1) 42,712 8,653 Vertex Pharmaceuticals (1) 111,927 16,367 Vulcan Materials 97,030 11,813 Workday (1) 117,366 13,026 Zoetis 182,000 11,615 Total United States (Cost $433,185) 492,977 SHORT-TERM INVESTMENTS 2.0% Money Market Funds 2.0% T. Rowe Price Government Reserve Fund, 1.09% (6)(7) 17,252,990 17,253 Total Short-Term Investments (Cost $17,253) 17,253 23

26 (Cost and value in $000s) SECURITIES LENDING COLLATERAL 2.1% Investments in a Pooled Account through Securities Lending Program with JPMorgan Chase Bank 2.1% Short-Term Funds 2.1% Shares $ Value T. Rowe Price Short-Term Fund, 1.16% (6)(7) 1,787,811 17,878 Total Investments through Securities Lending Program with JPMorgan Chase Bank 17,878 Total Securities Lending Collateral (Cost $17,878) 17,878 Total Investments in Securities 102.3% of Net Assets (Cost $755,705) $ 871,741 Country classifications are generally based on MSCI categories or another unaffiliated third party data provider; Shares are denominated in the currency of the country presented unless otherwise noted. (1) Non-income producing (2) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at period-end amounts to $2,038 and represents 0.2% of net assets. (3) Level 3 in fair value hierarchy. See Note 2. (4) Preferred stocks are shares that carry certain preferential rights. The dividend rate may not be consistent each pay period and could be zero for a particular year. (5) All or a portion of this security is on loan at October 31, total value of such securities at period-end amounts to $17,456. See Note 3. (6) Seven-day yield (7) Affiliated Company ADR American Depositary Receipts GDR Global Depositary Receipts HKD Hong Kong Dollar USD U.S. Dollar 24

27 Affiliated Companies ($000s) The fund may invest in certain securities that are considered affiliated companies. As defined by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the outstanding voting securities, or a company that is under common ownership or control. The following securities were considered affiliated companies for all or some portion of the year ended October 31, Net realized gain (loss), investment income, change in net unrealized gain/loss, and purchase and sales cost reflect all activity for the period then ended. Affiliate Net Realized Gain (Loss) Change in Net Unrealized Gain/Loss Investment Income T. Rowe Price Government Reserve Fund $ $ $ 72 T. Rowe Price Short-Term Fund ++ Totals $ # $ $ 72+ Supplementary Investment Schedule Affiliate Value 10/31/16 Purchase Cost Sales Cost Value 10/31/17 T. Rowe Price Government Reserve Fund $ 8,142 $ 17,253 T. Rowe Price Short-Term Fund 7,771 17,878 $ 35,131^ # Capital gain/loss distributions from mutual funds represented $0 of the net realized gain(loss). ++ Excludes earnings on securities lending collateral, which are subject to rebates and fees as described in Note 3. + Investment income comprised $72 of dividend income and $0 of interest income. Purchase and sale information not shown for cash management funds. ^ The cost basis of investments in affiliated companies was $35,131. The accompanying notes are an integral part of these financial statements. 25

28 October 31, 2017 Statement of Assets and Liabilities ($000s, except shares and per share amounts) Assets Investments in securities, at value (cost $755,705) $ 871,741 Foreign currency (cost $2,171) 2,170 Receivable for shares sold 1,133 Receivable for investment securities sold 334 Dividends receivable 307 Cash 50 Other assets 1,023 Total assets 876,758 Liabilities Obligation to return securities lending collateral 17,878 Payable for investment securities purchased 4,436 Payable for shares redeemed 602 Investment management fees payable 448 Due to affiliates 64 Payable to directors 1 Other liabilities 981 Total liabilities 24,410 NET ASSETS $ 852,348 Net Assets Consist of: Undistributed net investment income $ 2,124 Accumulated undistributed net realized loss (2,821) Net unrealized gain 116,028 Paid-in capital applicable to 23,177,032 shares of $0.01 par value capital stock outstanding; 18,000,000,000 shares of the Corporation authorized 737,017 NET ASSETS $ 852,348 26

29 October 31, 2017 Statement of Assets and Liabilities NET ASSET VALUE PER SHARE Investor Class ($834,130,226 / 22,680,903 shares outstanding) $ Advisor Class ($5,079,325 / 139,179 shares outstanding) $ I Class ($13,138,202 / 356,950 shares outstanding) $ The accompanying notes are an integral part of these financial statements. 27

30 Statement of Operations ($000s) Investment Income (Loss) Year Ended 10/31/17 Income Dividend (net of foreign taxes of $585) $ 8,767 Securities lending 127 Total income 8,894 Expenses Investment management 4,304 Shareholder servicing Investor Class $ 946 Advisor Class Rule 12b-1 fees Advisor Class 13 Prospectus and shareholder reports Investor Class 40 Custody and accounting 200 Registration 75 Legal and audit 50 Directors 2 Miscellaneous 39 Waived / paid by Price Associates (13) Total expenses 5,667 Net investment income 3,227 Realized and Unrealized Gain / Loss Net realized gain (loss) Securities 75,090 Foreign currency transactions (44) Net realized gain 75,046 Change in net unrealized gain / loss Securities 93,480 Other assets and liabilities denominated in foreign currencies (2) Change in net unrealized gain / loss 93,478 Net realized and unrealized gain / loss 168,524 INCREASE IN NET ASSETS FROM OPERATIONS $ 171,751 The accompanying notes are an integral part of these financial statements. 28

31 Statement of Changes in Net Assets ($000s) Increase (Decrease) in Net Assets Year Ended 10/31/17 10/31/16 Operations Net investment income $ 3,227 $ 2,927 Net realized gain 75,046 25,812 Change in net unrealized gain / loss 93,478 (568) Increase in net assets from operations 171,751 28,171 Distributions to shareholders Net investment income Investor Class (3,456) (1,715) Advisor Class (15) (10) Decrease in net assets from distributions (3,471) (1,725) Capital share transactions* Shares sold Investor Class 209,596 64,785 Advisor Class 3,168 4,270 I Class 12,069 Distributions reinvested Investor Class 3,286 1,638 Advisor Class Shares redeemed Investor Class (89,284) (64,680) Advisor Class (4,249) (2,727) I Class (910) Redemption fees received Increase in net assets from capital share transactions 133,763 3,325 Net Assets Increase during period 302,043 29,771 Beginning of period 550, ,534 End of period $ 852,348 $ 550,305 Undistributed net investment income 2,124 2,240 29

32 Statement of Changes in Net Assets (000s) Year Ended 10/31/17 10/31/16 *Share information Shares sold Investor Class 6,323 2,403 Advisor Class I Class 384 Distributions reinvested Investor Class Advisor Class 1 Shares redeemed Investor Class (2,774) (2,437) Advisor Class (128) (96) I Class (27) Increase in shares outstanding 3, The accompanying notes are an integral part of these financial statements. 30

33 October 31, 2017 Notes to Financial Statements Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The T. Rowe Price Global Stock Fund (the fund) is a diversified, open-end management investment company established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of established companies throughout the world, including the U.S. The fund has three classes of shares: the Global Stock Fund (Investor Class), the Global Stock Fund Advisor Class (Advisor Class), and the Global Stock Fund I Class (I Class). Advisor Class shares are sold only through unaffiliated brokers and other unaffiliated financial intermediaries. I Class shares generally are available only to investors meeting a $1,000,000 minimum investment or certain other criteria. The Advisor Class operates under a Board-approved Rule 12b-1 plan pursuant to which the class compensates financial intermediaries for distribution, shareholder servicing, and/or certain administrative services; the Investor and I Classes do not pay Rule 12b-1 fees. Each class has exclusive voting rights on matters related solely to that class; separate voting rights on matters that relate to all classes; and, in all other respects, the same rights and obligations as the other classes. Note 1 - Significant Accounting Policies Basis of Preparation The fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 (ASC 946). The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), including, but not limited to, ASC 946. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity. Investment Transactions, Investment Income, and Distributions Investment transactions are accounted for on the trade date basis. Income and expenses are recorded on the accrual basis. Realized gains and losses are reported on the identified cost basis. Dividends received from mutual fund investments are reflected as dividend income; capital gain distributions are reflected as 31

34 realized gain/loss. Dividend income and capital gain distributions are recorded on the ex-dividend date. Income tax-related interest and penalties, if incurred, are recorded as income tax expense. Income distributions are declared and paid by each class annually. Distributions to shareholders are recorded on the ex-dividend date. A capital gain distribution may also be declared and paid by the fund annually. Currency Translation Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate, using the mean of the bid and asked prices of such currencies against U.S. dollars as quoted by a major bank. Purchases and sales of securities, income, and expenses are translated into U.S. dollars at the prevailing exchange rate on the respective date of such transaction. The portion of the results of operations attributable to changes in foreign exchange rates on investments is not bifurcated from the portion attributable to changes in market prices. The effect of changes in foreign currency exchange rates on realized and unrealized security gains and losses is reflected as a component of security gains and losses. Class Accounting Shareholder servicing, prospectus, and shareholder report expenses incurred by each class are charged directly to the class to which they relate. Expenses common to all classes, investment income, and realized and unrealized gains and losses are allocated to the classes based upon the relative daily net assets of each class. To the extent any expenses are waived or reimbursed in accordance with an expense limitation (see Note 6), the waiver or reimbursement is charged to the applicable class or allocated across the classes in the same manner as the related expense. The Advisor Class pays Rule 12b-1 fees, in an amount not exceeding 0.25% of the class s average daily net assets. Redemption Fees A 2% fee is assessed on redemptions of fund shares held for 90 days or less to deter short-term trading and to protect the interests of long-term shareholders. Redemption fees are withheld from proceeds that shareholders receive from the sale or exchange of fund shares. The fees are paid to the fund and are recorded as an increase to paid-in capital. The fees may cause the redemption price per share to differ from the net asset value per share. 32

35 New Accounting Guidance In March 2017, the FASB issued amended guidance to shorten the amortization period for certain callable debt securities, held at a premium. The guidance is effective for fiscal years and interim periods beginning after December 15, Adoption will have no effect on the fund s net assets or results of operations. On August 1, 2017, the fund implemented amendments to Regulation S-X, issued by the Securities and Exchange Commission, which require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Adoption had no effect on the fund s net assets or results of operations. Indemnification In the normal course of business, the fund may provide indemnification in connection with its officers and directors, service providers, and/or private company investments. The fund s maximum exposure under these arrangements is unknown; however, the risk of material loss is currently considered to be remote. Note 2 - VALUATION The fund s financial instruments are valued and each class s net asset value (NAV) per share is computed at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day the NYSE is open for business. However, the NAV per share may be calculated at a time other than the normal close of the NYSE if trading on the NYSE is restricted, if the NYSE closes earlier, or as may be permitted by the SEC. Fair Value The fund s financial instruments are reported at fair value, which GAAP defines as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The T. Rowe Price Valuation Committee (the Valuation Committee) is an internal committee that has been delegated certain responsibilities by the fund s Board of Directors (the Board) to ensure that financial instruments are appropriately priced at fair value in accordance with GAAP and the 1940 Act. Subject to oversight by the Board, the Valuation Committee develops and oversees pricing-related policies and procedures and approves all fair value determinations. Specifically, the Valuation Committee establishes procedures to value securities; determines pricing techniques, sources, and persons eligible to effect fair value pricing actions; oversees the selection, services, and performance of pricing vendors; oversees 33

36 valuation-related business continuity practices; and provides guidance on internal controls and valuation-related matters. The Valuation Committee reports to the Board and has representation from legal, portfolio management and trading, operations, risk management, and the fund s treasurer. Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP establishes the following fair value hierarchy that categorizes the inputs used to measure fair value: Level 1 quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at the reporting date Level 2 inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and credit spreads) Level 3 unobservable inputs Observable inputs are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use to price the financial instrument. Unobservable inputs are those for which market data are not available and are developed using the best information available about the assumptions that market participants would use to price the financial instrument. GAAP requires valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs. When multiple inputs are used to derive fair value, the financial instrument is assigned to the level within the fair value hierarchy based on the lowest-level input that is significant to the fair value of the financial instrument. Input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the degree of judgment used in determining those values. Valuation Techniques Equity securities listed or regularly traded on a securities exchange or in the over-the-counter (OTC) market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made. OTC Bulletin Board securities are valued at the mean of the closing bid and asked prices. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Listed securities not traded on a particular day are valued at the mean of the closing bid and asked prices for domestic securities and the last quoted sale or closing price for international securities. 34