Nimbus 9. Three Months. Year-to- Date

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1 Nimbus 9 QUARTERLY REVIEW High Yield Fund Multi-Class As of June 30, 2018 PORTFOLIO HIGHLIGHTS The portfolio underperformed the Credit Suisse High Yield Index for the three-month period ended June 30, Relative performance drivers: p The portfolio's allocation to emerging markets weighed on relative performance, as our benchmark does not have exposure to developing countries. p Services sector positioning was a notable relative performance contributor. p Credit selection in the information technology sector detracted. Additional highlights: p Global geopolitics and central bank policy bring a notable level of uncertainty, but thus far, high yield bonds have remained resilient amid these types of developments. p Corporate fundamentals are largely stable, and we believe default activity will remain below the historical average in 2018 and into next year. FUND INFORMATION Symbol PRHYX 1 CUSIP Inception Date of Fund December 31, enchmark Expense Information (as of the most recent Prospectus)* Credit Suisse High Yield Index % 5 Fiscal Year End May Fee 7 Redemption Fee** Assets (all share classes) Percent of Portfolio in Cash 2.7% $6,991,644,980 9 *Figure is equivalent to the annual Operating Expense ratio. **The redemption fee applies on shares held for 90 days or less. Please refer to the detailed Fund Information section, at the end of the report, for additional expense information and available share classes. 1 0 PERFORMANCE (NAV, total return) Inception Date Three Months For Investment Professionals only. Not for further distribution. 1 Year-to- Date One Year Three Annualized Five Ten Fifteen 30-Day SEC Yield High Yield Fund Dec % -1.09% % 7.34% 7.12% 5.66% High Yield Fund - Advisor Class Mar High Yield Fund - I Class Aug Credit Suisse High Yield Index J.P. Morgan Global High Yield Index CALENDAR YEAR PERFORMANCE (NAV, total return) Inception Date High Yield Fund Dec % 49.14% 14.37% % 9.07% % 14.49% 7.37% High Yield Fund - Advisor Class Mar High Yield Fund - I Class Aug Credit Suisse High Yield Index J.P. Morgan Global High Yield 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. 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. The T. Rowe Price Fund shares the portfolio of an existing fund (the original share class of the fund referred to as the "investor class"). The total return figures for the I Class shares have been calculated using the performance data of the investor class up to the inception date of the I Class (8/28/15) and the actual performance results of the I Class since that date. ecause the I Classes are expected to have lower expenses than the Investor Classes, the I Class performance, had it existed over the periods shown, would have been higher. *See Additional Disclosures. The bonds in which the fund invests are at a much higher risk of default and tend to be more volatile than higher-rated bonds. Investors should note that if interest rates rise significantly from current levels, total returns will decline and may even turn negative in the short term. High yield bonds carry a greater default risk than higher-rated bonds.

2 PERFORMANCE REVIEW The high yield bond market modestly advanced in the second quarter of Solid economic data seemed to bolster the Federal Reserve's confidence in its path toward normalizing monetary policy. The unemployment rate fell to an 18-year low of 3.8%, and various inflation measures were at or slightly above the Fed's 2% target. Although first-quarter gross domestic product was revised down to a 2. annualized rate, preliminary data have pointed to a strong pickup in the second quarter. The Treasury yield curve flattened in the second quarter as yields of shorter-maturity Treasuries increased more than longer maturities. The two-year Treasury note's yield, which is more closely correlated with the Fed's monetary policy decisions, increased to its highest level since 2008 as the central bank signaled a slightly faster pace of rate increases. The Fed raised the target range for the federal funds rate to 1.75% to 2. at its June meeting, the second increase this year. Trade tensions periodically weighed on market sentiment, as the U.S. imposed tariffs on various imports from China and other major trading partners, including Canada, Mexico, and the European Union. Many of these parties retaliated or threatened to do so, sparking fears that continued trade disputes could hamper global commerce and, thus, the worldwide economic expansion. Oil prices rallied to multiyear highs by quarter-end due to OPEC's announcement of a much softer-than-anticipated production increase, reports of falling inventories, and the potential for supply disruptions. Technical conditions over the quarter were mixed. According to J.P. Morgan, the second quarter saw industry outflows. High yield bond mutual funds have registered outflows in eight of the last nine months, totaling more than USD $33 billion of redemptions over that span. New issue activity also declined month over month for a total gross volume of USD $53.5 billion in the quarter, down from over USD $70 billion the previous three-month period. Even so, considering calls, tenders, and maturities, net supply registered as negative, allowing the asset class to absorb outflows. Spreads of the J.P. Morgan Global High Yield Index widened by 17 basis points over the three months, but the path was not straight. April saw spread tightening; however, the quarter ended at 423 basis points with a yield to worst of 6.9. This compares with the long-term averages of approximately 580 basis points and 8.7%, respectively. activity decreased from the prior quarter but remains higher than at the end of 2017, largely due to the highly expected bankruptcy of iheartmedia, the largest U.S. radio broadcasting company, having occurred in the first quarter. There were no defaults in June and limited default activity in the previous two months. The J.P. Morgan par-weighted default rate ended the quarter at 1.98% compared with 2.21% in March. This compares with the historical average of 3.75%. Notable contribution from services sector positioning The combination of our underweight allocation and security selection in the services sector was a top relative performance contributor. The services sector is an eclectic group of businesses ranging from car rental providers to credit card processors. Avoiding names that traded down and selective exposure, including bank loan positions such as Weight Watchers and Kronos that outperformed, drove our credit selection contribution to relative performance. Kronos is a U.S.-based multinational workforce management software and services company that improves workforce efficiency, boasting a market-leading product and a diversified customer base. We own first and second liens in this name, and visits with management over the past year reinforced our conviction. Information technology holdings detracted Credit selection in information technology detracted from returns due to Veritas, the top provider of backup recovery software. In February, after a weak earnings report reflecting a decline in EITDA, partly due to a tough year-over-year comparison, our Veritas senior notes weakened materially. After holding in near par for two months, the Veritas secured loans followed in sympathy. Much of this technical dynamic is due to limited investor awareness of the software company, as it was an original leveraged buyout in the first quarter of 2016, a period of disarray in the below investment-grade markets, that was never fully syndicated. Investments in satellites industry benefited Within the satellites industry, we hold multiple bonds within the Intelsat complex that produced the largest contribution by issuer to relative performance for the quarter. Intelsat is a leveraged leading satellite operator that has been addressing its maturities while benefiting from the industry's high barriers to entry, its customers' long-term contracts, and diversification by fleet, customer type, and geography. PORTFOLIO POSITIONING AND ACTIVITY The portfolio's allocation to emerging markets weighed on relative performance, as our benchmark does not have exposure to developing countries. Monetary policy tightening by the Fed and a stronger U.S. dollar put pressure on emerging markets that rely on external funding, including Argentina and Turkey. While we remain focused on the underlying fundamentals of the select corporates we do own, macroeconomics and geopolitics cannot help but impact overall market sentiment. Research identifies credits that could improve Our allocation in European high yield weighed on performance, largely through our investments in Additional Tier 1 (AT1) securities issued by European banks. Financials has been a top performer in recent years. However, several of these positions traded lower over the second quarter, particularly Italian banks such as Unicredit and Intesa Sanpaolo, which remain well capitalized but were hampered by election results in Italy. We remain invested and rely on our extensive credit research capabilities to identify banks with stable and improving credit characteristics and focus on bonds with high coupons that offer short, stable income and are likely to be refinanced at their coupon reset date. Allocation to lower qualities weighed on performance During each month of the reporting period, CCC rated bonds posted positive returns, outperforming higher qualities and repeating the trend from the previous quarter. This was largely a function of interest rates moving higher, as CCC securities typically exhibit a shorter duration profile, but a lower default environment was also supportive. However, our security selection within the CCC rating tier was a notable detractor. Within the lower-quality tier, we favor companies that are improving and For Investment Professionals only. Not for further distribution. 2

3 migrating to quality or are mis-rated by the credit rating agencies. These issuers are not the companies that drove outsized gains in that CCC index segment. Exposure to bank loans was supportive Floating rate bank loans represent our largest off-index allocation. Senior secured status and a low duration profile have historically produced less volatile returns compared with high yield bonds. Particularly in this rising rate environment, the floating rate feature of bank loans resets coupons higher as rates increase. This relatively unique feature within fixed income sectors translated in gains each month this year compared with a couple months of high yield market declines. We will use bank loans to offset our underweight to rated bonds given their longer duration characteristics. ORGANIZATIONAL UPDATE The following investment team changes occurred during the quarter: Additions: Marianna Korpusova, Credit Analyst Jordan Gaglione, Associate Analyst In the wireless communications industry, our exposure to Asurion, a loan-only issuer and global provider of product protection and support services to the wireless, insurance, retail, and home repair service industries, was a significant contributor to relative performance. As a handset insurance provider, this company benefits from smartphone sales without depending on the execution of one specific wireless carrier. It has a near-monopoly market share in mobile protection services in most developed markets. Asurion's scale acts as a significant barrier to entry, allowing the issuer to provide more valuable service to their carrier customers at lower cost versus competitors. Its fourth-quarter results revealed significantly higher growth in the U.S., driven by continued subscriber gains and a new product offering. While growth is expected to taper some in 2018, automatic contract renewals by major carriers provide visibility into the future business. Our investment team recently had its annual management meeting and came away with renewed conviction. MANAGER'S OUTLOOK Steady economic growth is supportive to below investment-grade issuers, as they are typically more sensitive to macroeconomic factors. However, global geopolitics and central bank policy bring a notable level of uncertainty, but thus far, high yield bonds have remained somewhat removed from these types of developments. This includes tariff wars, populist sentiment within the European Union, and ongoing rhetoric out of Washington D.C. to name a few. Corporate fundamentals are largely stable, and we believe default activity will remain below the historical average this year into next. In addition, we continue to like bank loans for their floating rate feature as Fed officials have signaled the likelihood of two more short-term rate increases in Absolute yields have risen to more attractive levels but remain well inside the long-term average. Higher-quality companies are paying 6% to 7% on their new issuance versus less than 5% six months ago. We have also been able to buy bonds trading below par, but we do not expect capital appreciation to be a significant factor in our returns over the intermediate term. We remain cognizant of volatility, largely external to our market, that could still impact this below investment-grade asset class. As always, we aim to deliver high current income while seeking to contain volatility inherent in this market. Our team maintains a commitment to credit research and risk-conscious investing that has led to favorable returns for our high yield clients over various market cycles. For Investment Professionals only. Not for further distribution. 3

4 QUARTERLY ATTRIUTION INDUSTRY ATTRIUTION VS. CREDIT SUISSE HIGH YIELD INDEX (TOP AND OTTOM 5 Y TOTAL VALUE ADDED) (3 months ended June 30, 2018) Fund Weight (%) enchmark Weight (%) Fund Performance (%) enchmark Performance (%) Sector (bps) Credit (bps) Contribution (bps) Industry classification was determined by T. Rowe Price s high yield industry structure. All numbers are percentages. T. Rowe Price s proprietary attribution model compares the fund s performance and market weights by industry ratings with the benchmark s performance and market weights. Figures are shown gross of fees. Any difference in the total value added and the sum of credit selection and sector selection is referred to as residual. Residual can occur due to position shifts within the portfolio and benchmark both from an issuer and sector perspective and reflects any difference in performance calculation methodology between T. Rowe Price s proprietary attribution model and internal performance tool. CREDIT QUALITY ATTRIUTION VS. CREDIT SUISSE HIGH YIELD INDEX (3 months ended June 30, 2018) Top Five Transportation Health Service Housing Health Care ank Debt* / & Above / /CCC Gaming/ Leisure Food/To bacco ottom Five Info Tech Energy Financial Media/T elecom Fund Weight (%) enchmark Weight (%) Fund Performance (%) enchmark Performance (%) Sector (bps) Credit (bps) Contribution (bps) *Includes Institutional Floating Rate Fund Past performance cannot guarantee future results. Source of credit quality rating: Moody s Investor Services and Standard and Poor s. Analysis represents the combined performance of the underlying securities held within the given time period relative to its respective broad weighted benchmark as calculated by T. Rowe s proprietary attribution model. Performance for each security is in the currency in which it is issued and, if necessary, is converted using an exchange rate determined by an independent third party. Figures are shown gross of fees. CCC & elow Equities Preferr ed/cvt Pfd/C onvertible TRP ICO/T RP CRO Short Term Credit Swap For Investment Professionals only. Not for further distribution. 4

5 12-MONTH ATTRIUTION INDUSTRY ATTRIUTION VS. CREDIT SUISSE HIGH YIELD INDEX (TOP AND OTTOM 5 Y TOTAL VALUE ADDED) (12 months ended June 30, 2018) Fund Weight (%) enchmark Weight (%) Fund Performance (%) enchmark Performance (%) Sector (bps) Credit (bps) Contribution (bps) Industry classification was determined by T. Rowe Price s high yield industry structure. All numbers are percentages. T. Rowe Price s proprietary attribution model compares the fund s performance and market weights by industry ratings with the benchmark s performance and market weights. Figures are shown gross of fees. Any difference in the total value added and the sum of credit selection and sector selection is referred to as residual. Residual can occur due to position shifts within the portfolio and benchmark both from an issuer and sector perspective and reflects any difference in performance calculation methodology between T. Rowe Price s proprietary attribution model and internal performance tool. CREDIT QUALITY ATTRIUTION VS. CREDIT SUISSE HIGH YIELD INDEX (12 months ended June 30, 2018) Top Five Transportation Housing Service Retail ank Debt* / & Above / /CCC ottom Five Fund Weight (%) enchmark Weight (%) Fund Performance (%) enchmark Performance (%) Sector (bps) Credit (bps) Contribution (bps) *Includes Institutional Floating Rate Fund Past performance cannot guarantee future results. Source of credit quality rating: Moody s Investor Services and Standard and Poor s. Analysis represents the combined performance of the underlying securities held within the given time period relative to its respective broad weighted benchmark as calculated by T. Rowe s proprietary attribution model. Performance for each security is in the currency in which it is issued and, if necessary, is converted using an exchange rate determined by an independent third party. Figures are shown gross of fees. Health Care Food and Drug Financial Energy CCC & elow Equities Preferr ed/cvt Pfd/C onvertible TRP ICO/T RP CRO Short Term Short Term Media/T elecom Credit Swap For Investment Professionals only. Not for further distribution. 5

6 PORTFOLIO POSITIONING SIGNIFICANT OVER/UNDERWEIGHT INDUSTRIES Fund as of Credit Suisse High Yield Index as of Over/Underweight 2 15% 1 5% -5% Financial Wireless Communications Cable Operators Satellites Metals & Mining Utilities Food/Tobacco Retail Chemicals uilding Products Other Telecommunications Energy Health Care Services CREDIT QUALITY DIVERSIFICATION CHANGES OVER TIME Fund - Prior Year (6/30/17) Fund - Prior Quarter (3/31/18) Fund - Current Quarter Credit Suisse High Yield Index - Current Quarter 4 35% 3 25% 2 15% 1 5% -5% / & Abv / /CCC CCC & elow CDS Equities Not Short- Term HOLDINGS TOP 10 ISSUERS Issuer Industry % of Fund Asurion Wireless Communications 2.6% INTELSAT Satellites 1.6 Charter Communications Cable Operators 1.6 NRG Energy Utilities 1.5 VERITAS Info Tech 1.4 IHEARTMEDIA roadcasting 1.4 CSC HOLDINGS Cable Operators 1.2 ARD HOLDINGS Container 1.1 UER TECHNOLOGIES Info Tech 1.1 Valeant Pharmaceuticals Health Care 1.1 For Investment Professionals only. Not for further distribution. 6

7 FUND INFORMATION High Yield Fund High Yield Fund - Advisor Class High Yield Fund - I Class Symbol PRHYX PAHIX PRHIX Expense Information 0.74% 0.88% 0.61% Fiscal Year End Date 5/31/18 5/31/18 5/31/ Fee 0.25% Redemption Fee* The expense ratios shown are as of the fund s fiscal year ended 05/31. The stated expense ratio for the Advisor Class includes the applicable 12b-1 fee. PORTFOLIO MANAGEMENT Portfolio Manager: Mark J. Vaselkiv Managed Fund Since: 1996 Joined Firm: 1988 Additional Disclosures Source for J.P. Morgan data: J.P. Morgan. Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The index is used with permission. The Index may not be copied, used, or distributed without J.P. Morgan s prior written approval. Copyright 2018, J.P. Morgan Chase & Co. All rights reserved. Effective April 1, 2016, Credit Suisse changed its methodology for calculating the performance of the Credit Suisse High Yield Index. The data in the table reflects the performance of the index using the new methodology. 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. Industry classification was determined by T. Rowe Price s high yield industry structure. Diversification exhibits may not add to 10 due to exclusion or inclusion of cash. Sources for credit quality: Moody s Investors Service and Standard & Poor s (S&P); split ratings (e.g., / and /CCC) are assigned when the Moody s and S&P ratings differ. T. Rowe Price does not evaluate these ratings, but simply assigns them to the appropriate credit quality category as determined by the rating agency. T. Rowe Price uses the rating of the underlying investment vehicle for credit default swaps. Short-term holdings are not rated. 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. Closed to new investors. Open to subsequent investments. 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, INVEST WITH CONFIDENCE and the ighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. All rights reserved. T. Rowe Price Investment Services, Inc., Distributor US For Investment Professionals only. Not for further distribution. 7