Service Agreement and Disclosure Statement*

Transcription

1 XXXXXXX T. ROWE PRICE Advisory Planning Services Service Agreement and Disclosure Statement* T. Rowe Price Advisory Services, Inc. 100 East Pratt Street Baltimore, MD Painters Mill Road Owings Mills, MD *Information regarding T. Rowe Price Advisory Services, Inc., as contained in the Form ADV, Part II, filed by T. Rowe Price Advisory Services, Inc., with the Securities and Exchange Commission.

2 T. Rowe Price Advisory Planning Services (the Service ) T. Rowe Price Advisory Services, Inc. ( TRP Advisory Services ), provides nondiscretionary advice and services regarding investments in the T. Rowe Price family of mutual funds ( Price Funds ). The Service is not intended for individuals with a majority of their assets in estate and corporate accounts, 529 plans, and employer-sponsored retirement plans who intend to leave those assets in such plan indefinitely. (Many employer-sponsored retirement plans limit fund options available for investment. It may be difficult or even impossible to implement any solution with the Price Funds presented in the Service recommendation.) Additionally, the Service is available only to households with $100,000 or more in investable assets. This Agreement will take effect only when TRP Advisory Services receives a fully executed copy of the Client Profile and accepts it. All fees payable as described in the Client Profile must be submitted by check or by charge in order for us to begin providing the Service. No analysis will begin until such conditions have been met. T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 2

3 SERVICE TRP Advisory Services will begin the advisory planning process by reviewing your completed Client Profile to help us identify your investment and retirement goals and various aspects of your current financial situation. For your convenience, you have the option of completing and submitting your Client Profile either by mail or online by visiting troweprice.com/clientprofile. This information will form the basis of your Recommendation. TRP Advisory Services will assign an Advisory Associate to work with you, usually by appointment, throughout the planning process. The Advisory Associate will discuss the information provided in the Client Profile and provide an Analysis and Recommendation to help you meet your financial goals. Additionally, the Advisory Associate will discuss the Analysis and Recommendation with you and assist with any implementation needs. Portfolio Evaluation: Each Analysis and Recommendation provides an inventory report of the client s current investments, which are classified by asset and sub-asset categories. Generally, Price Funds are categorized according to the average weighted market capitalizations of their current portfolio holdings. Non-Price Funds and individual securities generally are categorized according to the classifications of Morningstar TM, an independent provider of investment information. However, in some cases, when Morningstar categorizes the investment objectives of certain mutual fund investments as being of a balanced or hybrid nature, TRP Advisory Services may further refine the allocation of the fund to more than one asset class. Assets that are not listed in Morningstar will be categorized using best efforts. Additionally, each Analysis and Recommendation will include a recommended asset allocation strategy. The asset allocation advice is in the form of a recommended model portfolio which may be held across multiple account registrations and includes target allocations to various asset classes and sub-asset classes or a T. Rowe Price Retirement Fund, which is already allocated to underlying T. Rowe Price Funds. The selection of a model portfolio or Price Retirement Fund is determined through the use of computer-aided analysis and discussion with the client. Such allocation recommendations are made in light of the client s investment holdings, including classification of all non-price Funds and individual securities identified by the client. In addition, the Analysis and Recommendation indicates which Price Funds are representative of a particular asset class in the model portfolio. Only Price Funds will be recommended, and such recommendations are made without regard to the choice of investments available at any other financial institutions or in any retirement plans in which the client participates. T. Rowe Price will not provide recommendations for non-price Fund assets. There are approximately 10 model portfolios that are recommended to clients. The model portfolios represent a series of strategies for long-term investors based on the behavior of different asset classes over time and have been developed by a group of TRP Advisory Services and T. Rowe Price Associates, Inc. ( Price Associates ), and T. Rowe Price International, Inc. ( Price International ) personnel including portfolio managers, research analysts, and CERTIFIED FINANCIAL PLANNER TM certificants** with input from other investment professionals. Performance, volatility, and the correlation of returns are considered to provide target asset allocations for each model. Price Funds included in the model portfolios are selected to provide a diversified portfolio with risk-adjusted performance and not to maximize return or predict the highest-performing fund or group of funds within each asset class. These portfolios are reviewed from time to time based upon views with respect to economic, market, and political conditions and trends to ensure they are still appropriate. Although the overall composition of the model portfolios will not generally change, the target allocations for each model portfolio may be adjusted from time to time, consistent with a longterm asset allocation approach, by a committee of investment and CFP professionals. Such changes will be made on a prospective basis and will not be applied to recommendations already T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 3

4 made; however, any applicable changes will be reflected through the ongoing Advisory Checkup Service (described more fully below). The committee will not, under ordinary circumstances, add new asset classes or make substantive adjustments to the allocations by eliminating asset classes from the models. The allocation in a Price Retirement Fund may change over time according to a predetermined glide path managed by the Price Retirement Funds Investment Advisory Committee. Goal-Planning Strategy: If a Retirement Savings goal, Transitioning to Retirement goal, or Retirement Income goal is selected in the Client Profile, the client will receive a retirement savings or income strategy in addition to an overall asset allocation recommendation. The goal-planning analysis incorporates information from the Client Profile, account balances, current savings rates, desired income in retirement, current overall asset allocation, desired years to retirement, and expected years in retirement. Additionally, answers to client preferences questions are considered. A proprietary projection engine using Monte Carlo analysis is used to simulate future market scenarios. Monte Carlo analysis presents a variety of retirement savings or income strategies that are tested against a thousand simulated scenarios. By comparing how various retirement savings or income strategies are affected by future hypothetical market conditions, a variety of information is forecast for each retirement savings or income strategy, including the likelihood that the client will continue to have assets in his or her account throughout retirement (i.e., he or she will not run out of assets). This is called a simulation success rate. For example, if a strategy has a simulation success rate of 70%, 70% of the economic projections of that strategy included at least $1 remaining in the portfolio at the end of the retirement period. In the other 30% of the projections, the money had run out prematurely. The projection methodology tailors the recommended retirement savings or income strategy to data provided by the client. Retirement savings or income strategies are presented, provided, and calculated pretax. The Service does not address the creation of a budget in retirement. Instead, retirement income projections assume that the client will adjust his or her lifestyle so that withdrawals do not deplete assets before the end of retirement. The Service is not appropriate for individuals who seek advice on how to develop and live in accordance with a budget. The Service does not provide advice related to insurance coverage, tax planning, or estate planning. In particular, the projection engine is not designed to be a tax calculation tool. Accordingly, the Service should not be considered a substitute for a comprehensive financial plan. It addresses limited retirement planning needs and provides a retirement planning strategy for the client that is focused on helping the client better understand what it will require to attain his or her projected income needs in retirement. Finally, the projections of the various income strategies do not include allocations to tax-sensitive investments, and, therefore, the Service may not be appropriate for investors whose tax bracket may suggest exposure to tax-free securities. TRP Advisory Services does not guarantee positive investment results. The projections and simulations that form the basis of the Analysis and Recommendation are not intended to be an indication of past or future investment results. Although TRP Advisory Services believes that the projected or simulated results are reasonable, there can be no assurance that the projected amounts and asset levels can be achieved for any one year or sustained for any period of time. The actual investment returns and income will fluctuate and will result from a number of factors, including the actual asset allocation, the investments chosen, the fees and expenses associated with those investments, and future economic and market conditions. Any statements prepared will not follow generally T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 4

5 accepted accounting principles and will not be audited. Accordingly, they should not be relied upon by third parties to evaluate a client s creditworthiness and should not be used for any purpose other than to assist the client in developing his or her investment strategy. ONGOING SERVICING Upon completion and implementation of the Analysis and Recommendation review, the client will be enrolled in the Advisory Checkup service. This complimentary service will allow the client to monitor progress toward a retirement savings or spending goal as well as compare a current asset allocation with a recommended model portfolio. The service primarily will be accessed via the T. Rowe Price Web site and requires the client to be a registered user at troweprice.com. Advisory Associates will be available to assist clients with their review, and alternative delivery methods will be made available for clients without access to the T. Rowe Price Web site. At any time, if a client s circumstances have changed since the receipt of the initial Analysis and Recommendation or throughout the Advisory Review, the client may contact an Advisory Associate regarding the advisability of a new Analysis and Recommendation at no additional cost. IMPLEMENTATION An Advisory Associate can assist with questions regarding how to implement strategies with the Price Funds. However, it is the sole responsibility and decision of the client whether to implement a recommendation and, if implemented, his or her responsibility to monitor the portfolio as needed. It is the decision of each client whether to implement an asset allocation recommendation by purchasing shares of the Price Funds. TRP Advisory Services and its affiliates have no discretion with respect to the implementation of any client recommendation or alternate strategy under the Service, including a particular withdrawal strategy. Clients retain full ownership of their Price Fund shares with the authority to vote their shares and transact as the shareholder of record. In addition, clients should periodically review their strategy to ensure it continues to meet their objectives and needs. Changing market and economic conditions may require changes to a client s recommended model portfolio and retirement savings or income strategy. FEES A one-time fee of $250 is charged for the Service, which includes the delivery of the Analysis and Recommendation, assistance with implementation of the chosen strategy utilizing Price Funds, and ongoing checkups. The fee is waived for clients with $500,000 or more in assets at T. Rowe Price at the time the client enters into an Agreement for the Service or is reimbursed for investors bringing at least $100,000 in new assets to the firm. The fee may be credited or waived for clients who implement the advice with Price Funds in retirement accounts at T. Rowe Price in compliance with applicable guidance issued by the U.S. Department of Labor under the Employee Retirement Income Security Act of Additionally, fees may be reduced or waived in special circumstances at the sole discretion of TRP Advisory Services. The fee is payable at the time the client enters into an Agreement for the Service and is refundable should the Agreement be terminated prior to the client s receipt of the Analysis and Recommendation. It is not necessary for an investor to subscribe to the Service and pay a fee in order to invest directly in Price Funds and redeem or exchange shares. All investors in Price Funds indirectly pay asset management fees and other administrative and advisory fees to Price Associates and certain affiliates through investment in the Price Funds, regardless of whether they are implementing advice provided by TRP Advisory Services. Such fees and expenses are disclosed in each Price Fund prospectus and vary by Price Fund. Assets held in estate, corporate, and 401(k) accounts and 529 plans are excluded from the fee waiver criteria. T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 5

6 ADVISORY ASSOCIATES An Advisory Associate is assigned to each client. The Advisory Associate, under the supervision of a CFP professional, chooses an appropriate recommended strategy based on the responses in the Client Profile and further discussions with the client. In addition to recommending retirement savings or income strategies, Advisory Associates are available to answer questions about the recommended model portfolio and the Price Funds and to assist with the implementation process. A client will have access to a properly licensed Advisory Associate for ongoing servicing needs (however, not all such service representatives are CFP professionals). TERMINATION Clients may terminate the Agreement before the receipt of the Analysis and Recommendation and receive a full refund of any fees paid for any reason and without penalty upon written notice to TRP Advisory Services at the following address: T. Rowe Price Advisory Services, Inc. P.O. Box Baltimore, MD TRP Advisory Services reserves the right to terminate the Service for any client for whom the Service is deemed not in the client s best interests, as determined by TRP Advisory Services upon review of the client s completed Client Profile and/or a discussion with the client. Any fees paid may be refunded to the client. CONFIDENTIALITY TRP Advisory Services will treat all personal information as confidential and will not disclose it to unaffiliated third parties, except as part of a regulatory examination or as required by law. T. ROWE PRICE PRIVACY POLICY You may provide information when communicating or transacting with us in writing, electronically, or by phone. For instance, information may come from applications, requests for forms or literature, and your transactions and account positions with us. On occasion, such information may come from consumer reporting agencies and those providing services to us. We do not sell information about current or former customers to any third parties, and we do not disclose it to third parties unless necessary to process a transaction, service an account, or as otherwise permitted by law. We may share information within the T. Rowe Price family of companies in the course of providing or offering products and services to best meet your investing needs. We may also share that information with companies that perform administrative or marketing services for T. Rowe Price; with a research firm we have hired or with a business partner, such as a bank or insurance company, with whom we are developing or offering investment products. When we enter into such a relationship, our contracts restrict the companies use of our customer information, prohibiting them from sharing or using it for any purposes other than those for which they were hired. We maintain physical, electronic, and procedural safeguards to protect your personal information. Within T. Rowe Price, access to such information is limited to those who need it to perform their jobs, such as servicing your accounts, resolving problems, or informing you of new products or services. Finally, our Code of Ethics and Conduct, which applies to all employees, restricts the use of customer information and requires that it be held in strict confidence. This Privacy Policy applies to the following T. Rowe Price family of companies: T. Rowe Price Associates, Inc., T. Rowe Price Advisory Services, Inc., T. Rowe Price Investment Services, Inc., T. Rowe Price International, Inc., and the T. Rowe Price Funds. T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 6

7 STANDARD OF CARE TRP Advisory Services will perform its services in good faith and in accordance with applicable law. However, except for gross negligence, willful malfeasance, or bad faith, neither TRP Advisory Services nor any of its affiliates, officers, directors, or employees will be liable for any action performed or omitted by them or for any errors of judgment made by them in connection with the Service. However, nothing in this document shall constitute a waiver or limitation of rights that the client may have under applicable federal or state securities laws, which laws may impose liability in certain instances for actions undertaken in good faith. ARBITRATION All controversy between the client and TRP Advisory Services and/or any of its officers, directors, employees, or agents concerning this Agreement or any matter arising from the relationship with TRP Advisory Services regarding the Service will be resolved by arbitration and conducted according to the arbitration rules of the State of Maryland. PERSONNEL AND RELATED PARTIES Biographical information on the directors of TRP Advisory Services and others who are responsible for the model portfolios or supervision of the Advisory Associates is provided on the following pages. The professional investment staff of TRP Advisory Services is composed of individuals who have attained a high degree of expertise in their fields. Generally, a bachelor s degree is required of all professional employees, and an M.B.A. or other advanced degree or certification in an appropriate field (e.g., economics, mathematics, financial planning) is preferred. The firm generally seeks graduates with prior business experience. All Advisory Associates are salaried employees and do not receive commissions or fees of any kind. The Advisory Associates generally are required to have an undergraduate college education or equivalent experience and certain Advisory Associates may have completed or may be pursuing a program of related graduate education or a professional designation, such as the CFP certification. Registration as a general securities broker-dealer representative, a state securities broker-dealer representative, an investment adviser representative, or other appropriate licensing will be required of Advisory Associates where applicable. TRP Advisory Services is not registered as a broker-dealer under federal or state securities laws that govern the operations of broker-dealers; however, TRP Advisory Services is registered as an investment adviser under the Investment Advisers Act of 1940 and in multiple states as required. T. Rowe Price Investment Services, Inc. ( Investment Services ), a Maryland corporation, is a wholly owned subsidiary of Price Associates. It was organized in 1980 for the specific purpose of acting as principal underwriter and distributor for the Price Funds which Price Associates or Price international, sponsor and serve as investment adviser. Investment Services also serves as distributor for any proprietary variable annuity products and for certain Section 529 College Savings Plans. It does not charge commissions for the purchase, sale, or exchange of Price Fund shares. Investment Services, which expanded its activities in 1984 to include a brokerage service, is registered as a broker-dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority ( FINRA ). Investment Services generally does not effect securities transactions for TRP Advisory Services clients in connection with the services provided, except with respect to the purchase and sale, and exchange of shares of the Price Funds. However, certain clients may elect to implement recommendations through self-directed IRAs or other brokerage accounts established with Investment Services for direct investment in securities pursuant to the Service s asset allocation recommendations. Clients are under no obligation to use Investment Services for their securities transactions. T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 7

8 Clients electing to use Investment Services to invest directly in securities through a brokerage account will place orders for the execution of their portfolio transactions directly with the Brokerage division of Investment Services. All such transactions initiated through Investment Services are executed and cleared by Pershing, LLC, a subsidiary of the Bank of New York Mellon Corporation, member NYSE/FINRA/SIPC ( Pershing ). Investment Services and Pershing have entered into a clearing agreement, pursuant to which securities of all brokerage customers of Investment Services, including clients of Investment Advisory Services, are held by Pershing. Please note that TRP Advisory Services does not provide any advice or guidance regarding individual accounts. All clients who open accounts with Investment Services are made aware of the relationship between TRP Advisory Services and Investment Services and of the fact that the brokerage commissions paid to the Brokerage division of Investment Services (i.e., not to TRP Advisory Services or its staff) in connection with the brokerage transactions are in addition to the fees paid to TRP Advisory Services and fees paid to Price Associates or Price International indirectly through investment in Price Funds for which these entities serve as investment adviser. The Price Funds are included in portfolios recommended to clients by TRP Advisory Services. Price Associates (or, with respect to the international funds, Price International) receives a fee from each Price Fund based upon the value of the Price Fund s assets. This fee is included in the expense ratio of each of the Price Funds and is the same for clients of TRP Advisory Services and other T. Rowe Price clients who invest in the Price Funds. Certain clients of TRP Advisory Services are also charged a flat fee for the services as more fully described in previous sections. TRP Advisory Services is wholly owned by T. Rowe Price Group, Inc. ( Price Group ). Price Group was organized in Maryland in 2000 as a publicly traded financial services holding company. Price Associates, a Maryland corporation, is a subsidiary of Price Group and is an investment adviser organized in 1947 and registered under the Investment Advisers Act of Price Associates provides investment advisory services for individuals and institutions, including a family of no-load mutual funds that it sponsors, which are registered investment companies, or series thereof, under the Investment Company Act of Price Associates serves as investment adviser to the domestic mutual funds and will receive advisory fees with regard to assets invested in the Price Funds. Price International, a Maryland corporation, is an investment adviser organized in 1979 and registered under the Investment Advisers Act of 1940 to provide investment advisory service with respect to foreign securities for institutional investors and to sponsor investment companies investing in foreign securities. Price International is an indirect, wholly owned subsidiary of Price Group. Price International serves as investment adviser to the international mutual funds in the Price Fund family and will receive advisory fees with regard to assets invested in the Price Funds. T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 8

9 T. Rowe Price Advisory Services, Inc. BOARD OF DIRECTORS EDWARD C. BERNARD, President and Director Vice Chairman and Director, T. Rowe Price Group, Inc.; Vice President and Director, T. Rowe Price Associates, Inc.; President and Director, T. Rowe Price (Canada), Inc. and T. Rowe Price Advisory Services, Inc.; Director, T. Rowe Price International, Inc.; Chairman of the Board and Director, T. Rowe Price Global Investment Services Limited; Chairman of the Board, President, and Director, T. Rowe Price Investment Services, Inc.; Chairman of the Board and Director, T. Rowe Price Funds, T. Rowe Price Services, Inc., and T. Rowe Price Savings Bank; President and Director, T. Rowe Price Insurance Agency, Inc.; Education: B.A., Brown University; M.B.A. in finance, New York University; Year of birth: WAYNE D. O MELIA, Director Vice President, T. Rowe Price Group, Inc. and T. Rowe Price Associates, Inc.; President and Director, T. Rowe Price Services, Inc.; Vice President and Director, T. Rowe Price Investment Services, Inc.; Director, T. Rowe Price Advisory Services, Inc.; Head of T. Rowe Price Operations; Joined T. Rowe Price: 1984; Education: B.S. in finance, University of Delaware; M.B.A. in operations management, Widener University; Year of birth: PROFESSIONAL STAFF TODD CLEARY Vice President, T. Rowe Price Group, Inc., T. Rowe Price Advisory Services, Inc., T. Rowe Price Services, Inc., and T. Rowe Price Investment Services, Inc.; Joined T. Rowe Price: 1998; Education: B.S. in accounting, University of Connecticut; M.B.A., Pace University; Year of birth: SUSAN D ANGELO Assistant Vice President, T. Rowe Price Advisory Services, Inc. and T. Rowe Price Investment Services, Inc.; Joined T. Rowe Price: 1999; Education: B.M.E. (summa cum laude) in education, Florida State University; Certifications: CERTIFIED FINANCIAL PLANNER TM (CFP );** Year of birth: DANIEL S. DIER Joined T. Rowe Price: 1996; Education: B.A. in literature (summa cum laude), St. Edwards University; B.Ed., University of Victoria; Certification: CERTIFIED FINANCIAL PLANNER TM (CFP );** Year of birth: CHRISTINE S. FAHLUND, Ph.D. Vice President, T. Rowe Price Group, Inc. and T. Rowe Price Investment Services, Inc.; Joined T. Rowe Price: 1995; Education: B.A. in biochemistry, Mount Holyoke College; Ph.D. in biochemistry, University of Massachusetts, Five College Ph.D. Program; Certifications: CERTIFIED FINANCIAL PLANNER TM (CFP );** Year of birth: KEITH P. McGURRIN Joined T. Rowe Price: 2009; Prior Experience: financial planner, Ameriprise Financial ( ); financial planner, Morgan Stanley ( ); Education: B.S. in physics, University of Scranton; M.B.A., Loyola College in Maryland; Certification: CERTIFIED FINANCIAL PLANNER TM (CFP );** Year of birth: T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 9

10 EDMUND M. NOTZON III, Ph.D. Vice President, T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price Global Investment Services Limited, and T. Rowe Price Investment Services, Inc.; President, Portfolio Manager, and Chairman of the Advisory Committee, T. Rowe Price Balanced Fund, Inc., T. Rowe Price Spectrum Fund, Inc.; President and Chairman of the Advisory Committee, T. Rowe Price Personal Strategy Funds, Inc.; President and Co-Chairman of the Advisory Committee, T. Rowe Price Retirement Funds, Inc.; President, T. Rowe Price U.S. Bond Index Fund, Inc.; Portfolio Manager, T. Rowe Price Personal Strategy Balanced Fund, T. Rowe Price Personal Strategy Growth Fund, T. Rowe Price Personal Strategy Income Fund, and T. Rowe Price Personal Strategy Balanced Portfolio; Joined T. Rowe Price: 1989; Education: S.B. in mathematics, Massachusetts Institute of Technology; M.S. in statistics and Ph.D. in operations research, Stanford University; Certification: Chartered Financial Analyst (CFA); Year of birth: JUDITH B. WARD Vice President, T. Rowe Price Investment Services, Inc.; Joined T. Rowe Price: 1983; Education: B.A. in economics and a Certificate in Finance, University of Maryland, Baltimore County; Certification: CERTIFIED FINANCIAL PLANNER TM (CFP );** Year of birth: ADDITIONAL EXECUTIVE OFFICERS TIMOTHY S. DIGNAN, Treasurer Vice President, T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price International, Inc., T. Rowe Price Advisory Services, Inc., T. Rowe Price Investment Services, Inc., T. Rowe Price Retirement Plan Services, Inc., and T. Rowe Price Services, Inc.; Controller and Assistant Treasurer, T. Rowe Price Group, Inc.; Treasurer, T. Rowe Price Associates, Inc., T. Rowe Price International, Inc., T. Rowe Price Global Investment Services Limited, T. Rowe Price Advisory Services, Inc., T. Rowe Price Investment Services, Inc., T. Rowe Price Retirement Plan Services, Inc., and T. Rowe Price Services, Inc.; Joined T. Rowe Price: 1991; Education: B.S. in Information Systems and Certificate in Accounting, University of Maryland, Baltimore County; M.B.A., Loyola College; Certification: Certified Public Accountant (CPA); Year of birth: BARBARA A. VAN HORN Corporate Secretary, T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price (Canada), Inc., T. Rowe Price Advisory Services, Inc., T. Rowe Price Global Investment Services Limited, T. Rowe Price Insurance Agency, Inc., T. Rowe Price International, Inc., T. Rowe Price Investment Services, Inc., T. Rowe Price Recovery Fund II Associates, LLC, T. Rowe Price Savings Bank, T. Rowe Price Services, Inc., TRP Suburban, Inc., TRP Suburban Second, Inc., TRP Colorado Springs, LLC, and TRPH Corporation; Joined T. Rowe Price: 1988; Education: B.A., (summa cum laude) College of Notre Dame of Maryland; Advanced Paralegal Certification, University of Maryland University College; Year of birth: **Certified Financial Planner Board of Standards, Inc., owns the certification marks CFP and CERTIFIED FINANCIAL PLANNER TM in the U.S., which it awards to individuals who successfully complete the CFP Board s initial and ongoing certification requirements. T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 10

11 CODE OF ETHICS Price Group maintains a Code of Ethics and Conduct ( Code ) applicable to all T. Rowe Price affiliates. The Code outlines appropriate standards of conduct for employees and certain other individuals associated with Price Group and its affiliated entities. The Code is available to all employees via the firm s intranet site. Employees are required to sign an annual verification that certifies their understanding of, and adherence to, the Code. T. Rowe Price has a policy that all employees participate annually in continuing education training relating to the Code. Notice of all material amendments to the Code is provided to employees. The Code addresses many areas of conduct, such as T. Rowe Price s policy with regard to personal securities transactions, the acceptance and provision of gifts and entertainment, material nonpublic information, confidentiality, and the reporting of Code violations. With regard to personal securities transactions, the Code contains a detailed description of the firm s requirements and its monitoring of such activities, including preclearance and reporting requirements applicable to certain securities transactions based on a person s classification as investment personnel, access persons, or non-access persons and filing by access persons (including investment personnel) of an annual personal securities report, certifying their personal securities holdings and their securities accounts. A copy of the Code is available to any client or prospective client upon request. ADDITIONAL COMPENSATION TRP Advisory Services has entered into a written agreement to provide referrals of potential clients to the Personal Finance Center of Hewitt Financial Services, LLC ( HFS ), a dually registered investment adviser and broker-dealer that, in turn, provides adviser referrals from a pool of investment advisers participating in the Hewitt Adviser Connection ( HAC ). If a person referred by TRP Advisory Services ultimately engages an adviser participating in the HAC, TRP Advisory Services (in addition to HFS) will receive compensation from the adviser selected. The nature of this relationship will be fully disclosed to such referrals. From time to time, TRP Advisory Services advisory affiliates may enter into written referral agreements pursuant to which they may pay a fee for introductions to certain prospective clients that lead to formal investment management mandates. The terms of the arrangement, including the fee structure, will be fully disclosed to all such clients. TRP Advisory Services and/or its advisory affiliates may have other business relationships with entities with whom they may have referral fee arrangements. Investment Services has entered into a written agreement whereby HFS has agreed to provide information regarding T. Rowe Price Rollover IRAs, and two Section 529 college savings plans sponsored by the Education Trust of Alaska and managed by Price Associates, to participants of retirement plans for which HFS acts as recordkeeper. HFS received certain one-time, designated setup fees. Additionally, Investment Services has agreed to pay HFS one-time, up-front fees based on assets rolled over by such participants to T. Rowe Price mutual fund IRAs. Investment Services also has agreed to pay one-time, up-front fees for Section 529 college savings plan accounts opened by such participants. The nature of this referral relationship is disclosed to the client both orally and in writing. T. ROWE PRICE advisory planning services Service Agreement and Disclosure Statement 11

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