Nimbus 9. New Horizons Fund 8.25% 15.01% 28.35% 16.49% 17.56% 16.07% 14.13% Russell 2000 Growth Index

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1 Nimbus 9 QUARTERLY REVIEW New Horizons Fund As of June 30, 2018 PORTFOLIO HIGHLIGHTS The ortfolio outerformed the Russell 2000 Growth Index benchmark for the eriod. Relative erformance drivers: Stock selection in information technology drove relative outerformance The consumer discretionary and industrials and business services sectors also added value Stock icks in consumer stales and financials weighed on returns Additional Highlights: Many believe the adverse imact from tariffs are limited to larger comanies, but we also need to recognize that most small-ca comanies have these larger comanies as clients and there could be secondary effects from continued saber rattling regarding trade talks. While we kee a close eye on macroeconomic conditions and market develoments, our focus remains on rigorous bottom-u research and to leverage the insights of our global research latform on industries and comanies to find attractive investments for the ortfolio. FUND INFORMATION Symbol PRNHX 1 CUSIP Incetion Date of Fund June 03, Benchmark Exense Information (as of the most recent Prosectus)* Russell 2000 Growth Index % 5 Fiscal Year End December B-1 Fee 7 Redemtion Fee 8 Total Assets (all share classes) Percent of Portfolio in Cash 6.5% $24,964,662,305 9 *Figure is equivalent to the annual Oerating Exense ratio. 1 0 PERFORMANCE (NAV, total return) Three Months Year-to- Date One Year Three Years Annualized New Horizons Fund 8.25% 15.01% 28.35% 16.49% 17.56% 16.07% 14.13% Russell 2000 Growth Index CALENDAR YEAR PERFORMANCE (NAV, total return) Incetion Date New Horizons Fund Jun % 43.87% 34.67% 6.63% % % 31.49% Russell 2000 Growth Index Current erformance may be lower or higher than the quoted ast erformance, which cannot guarantee future results. Share rice, rincial 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 erformance or to request a rosectus or summary rosectus, which includes investment objectives, risks, fees, exenses, and other information that you should read and consider carefully before investing, lease call or visit our website at trowerice.com. Total return figures include changes in rincial value, reinvested dividends, and caital gain distributions. Investing in small comanies involves greater risk than is customarily associated with larger comanies, since small comanies often have limited roduct lines, markets, or financial resources. Five Years Ten Years Fifteen Years Not for use with Individual Investors. 1

2 PERFORMANCE REVIEW U.S. Equities Rose in the Second Domestic stocks recorded decent gains in the second quarter of 2018, suorted by favorable earnings and economic data. To start, Aril and May brought evidence that cororate earnings had accelerated even more than exected following the December 2017 tax cut and further stimulus rovided by federal sending increases in March. According to data and analytics firm FactSet, earnings for the S&P 500 as a whole rose by 24.6% in the first quarter relative to a year earlier, marking the best increase since rofits rebounded following the "Great Recession" nearly a decade ago. Stee cuts in the cororate tax rate deserved art of the credit, but toline revenue growth also surrised on the uside. Indeed, more than three-quarters of firms reorted higher-than-exected increases in both earnings and revenues. Trade tensions aeared to deserve much of the blame for domestic stock rices being unable to follow rofits higher. The growing trade conflict between the U.S. and China garnered the most attention. Over the quarter, the Trum administration announced a steady escalation in ossible tariffs on Chinese goods, eventually reaching USD $200 billion on a range of goods by late June. The U.S. also extended tariffs on certain metals to Canada, Mexico, and the Euroean Union, while the Commerce Deartment announced that it was considering raising tariffs on auto imorts on national security grounds. Whether the mounting threats were merely negotiating tactics on all sides remained unclear, but markets aeared to waver late in the quarter as evidence emerged that the rosect of tariffs was already imacting cororate strategy and rofit outlooks. Stock Selection in Information Technology Led Relative Results Shares of Coua Software, a cloud latform for business send, rose on strong quarterly results highlighting accelerating subscrition growth and increased free cash flow. We believe the comany can sustain growth as higher customer success rates drive broader market awareness and create cross-selling oortunities in a relatively benign cometitive landscae. Shares of Shoify, an e-commerce turned omnichannel commerce latform that offers online retailing services to small- and mid-ca comanies, rose on several quarters of strong results reflecting acceleration in subscrition revenue. We believe the comany is ositioned in the most valuable intersection within the Web resence sace, has solid unit economics with a very large addressable market, and has a visionary management that makes it better ositioned to navigate the uncertainty in the industry. Consumer discretionary Contributed Due to Stock Choices and a Favorable Overweight Position Vail Resorts oerates some of the most visited ski resorts in North America, rimarily located within the western U.S. The comany osted strong quarterly results reflecting accelerating season ass sales. The continued integration of Whistler, the most trafficked ski area in North America, also aided erformance. The comany also acquired several new resorts during the quarter, exanding its osition in the desirable Northeast ski market. Shares of luxury furniture brand RH were boosted by strong quarterly results that significantly exceeded consensus, most notably within same-store sales. We believe that RH is a differentiated brand in the furniture industry and that management is taking the right stes to rotect the brand's long-term integrity and rofitability. Stock Picks in Industrials and Business Services Added Value TransUnion, the third-largest credit bureau in the United States, is seeing acceleration in the rate of new roduct growth and new roduct revenue and should continue to rea benefits from innovation and technology investments, including its Prama latform, an analytics environment caable of housing, maniulating, and ackaging massive data assets for clients. The comany also gained shares from cometitor Equifax following its massive data breach, and stands to benefit from recently assed tax reform legislation. Consumer Stales Detracted Due to Stock Selection, Notably within Food and Stales Retailing Weak sales weighed on Raia Drogasil, the largest drugstore retailer in Brazil, as cometitive ressures increased. We maintain a favorable view of the stock, however, as we believe that Raia Drogasil, with its scale and leadershi osition, offers the most comelling value roosition in drug retailing in Brazil, a sector that we view as having attractive secular growth otential over the long term. Stock Choices in Financials Weighed on Performance Desite solid first-quarter results, shares of CBOE Global Markets declined on seculation regarding the otential maniulation of its VIX stock market volatility benchmark. These allegations have not been substantiated. We believe the business is a scarce asset as the only ublicly traded otions exchange and the only trading venue for two of the more valuable and faster-growing roduct sets. The firm should also benefit from synergies resulting from its recent acquisition of the BATS exchange and has already started to migrate and synchronize technology latforms. PORTFOLIO POSITIONING AND ACTIVITY Information technology, health care, industrials and business services, and consumer discretionary reresent the four largest sector ositions within the ortfolio. Information Technology We focus on comanies with growing market share and strong management teams that can take advantage of oortunities regardless of the economic and IT sending environment. There are several long-term drivers of technology sending that lead us to believe that some technology stocks are ositioned to outerform. These drivers include mobile comuting, online advertising and commerce, software and comuting resources delivered over the Internet, and data analytics. Over time, we believe artificial intelligence and machine learning will exand their imortance and footrint within the sace. Thus, the sector remains an imortant area of investment for the ortfolio. That said, we were net sellers in information technology during the quarter. Not for use with Individual Investors. 2

3 CSRA rovides information technology solutions and services to the U.S. government. We eliminated the ortfolio's osition as it was acquired by global aerosace and defense comany General Dynamics during the eriod. Shares of Okta, a software comany focused on roviding identity management solutions as a service, have steadily risen on solid financial results and received an additional boost from the recent announcement of new artnershis including Facebook and VMware. We trimmed the ortfolio's osition into strength. We added to the ortfolio's osition in RealPage, a rovider of software and data analytics to the real estate and roerty management industries. We believe the comany has an attractive growth rofile. We believe a combination of strong customer usage, an on-demand model, scale, and the successful integration of acquisitions such as OnSite, should drive significant revenue and margin synergies. Health Care The health care sector is an area rie for innovation given advances in technology and new theraeutics. First, in health care the oortunity for small-ca comanies to become large-ca comanies remains, articularly in the case of theraeutics where small-ca comanies can bring to market new drugs for unmet medical needs. Second, there are some attractive service and distribution business models that benefit from the advantages of scale, technology, and their ability to make end markets more efficient. We added to our osition in Molina Healthcare, a Medicaid managed care comany. We believe that oerational turnaround efforts can unlock value and lead to a higher stock multile. Recent contract wins and the decision to divest Molina Medicaid Solutions, a Medicaid management information systems business, in order to focus on its core health lan business, illustrate rogress in the ongoing transformation. We eliminated our osition in Henry Schein, a leading dental equiment rovider, due to concerns over long-term cometitive threats from Amazon.com and ractice consolidation within the dental industry, which has increased ricing ressures. The comany also faces a Federal Trade Commission comlaint that alleges Henry Schein consired with other comanies to refuse discounts to dentists. Industrials And Business Services Within this sector, we favor well-run comanies with durable growth rofiles. We ared the ortfolio's osition in Acuity Brands, a leading maker and distributor of a range of indoor and outdoor lighting and related roducts, as a slowdown in the LED cycle and slower-than-exected adotion of smart lighting figures weigh on the stock. We added to the ortfolio's osition in BWX Technologies, the sole manufacturer of naval nuclear reactors for U.S. submarines and aircraft carriers. We believe the comany has durable cometitive advantages and an attractive balance sheet. BWX is at the beginning of a multiyear u cycle due to lanned naval force rogram exansions. Shares of Toro, a leading manufacturer of equiment for turf maintenance, snow removal, and irrigation systems, ulled back on oor weather conditions and temoral cost headwinds. We took the oortunity to add to the ortfolio's osition. We believe this to be a solid comany in a good industry with strong barriers to entry. Consumer Discretionary In this sector, we are focused on small comanies that can be the leading comanies of tomorrow. We refer comanies with strong ositions within their resective industries. We increased the ortfolio's osition in Bright Horizons Family Solutions, a worksite child care services comany in the U.S. and Euroe. We believe the comany can rea synergies from its recent acquisition of Asquith, a leading rovider of child care in the UK. Bright Horizons also stands to benefit from the tax reform bill. We bought shares of Dunkin Brands, which oerates an efficient business model in the attractive coffee market. With new management in lace, the comany has been editing its menu and believes it can more than double its unit footrint in the U.S. MANAGER'S OUTLOOK U.S. stocks rose in the second quarter, in contrast to the negative erformance for equities in many regions around the world. This divergence in erformance is being driven by contrasting economic conditions. U.S. economic data continue to show signs of strength and cororate earnings have been robust. However, concerns around inflation, tightening monetary olicy, and trade tensions loom large on investor minds and warrant close attention. Many eole believe the adverse imact from tariffs are limited to larger comanies, but we also need to recognize that most small-ca comanies have these larger comanies as clients and there could be secondary effects from continued saber rattling regarding trade talks. Small-ca securities significantly outaced large-cas during the quarter, due in large art to robust small-ca ETF inflows which moderated to close the eriod. In eriods of very strong ETF inflows, it disroortionately benefits smaller small-cas and micro-ca stocks and can rove to be a more difficult environment for active managers. Within the growth sace, we observed that smaller small-cas and more exensive names outerformed during the quarter. Faster growth and lower quality (by ROE) securities were also outerformers during the eriod. That said, our mission to find high-quality growth names with the ability to scale over time yielded ositive absolute and relative results for the quarter. While we kee a close eye on macroeconomic conditions and market develoments, our focus remains on rigorous bottom-u research and to leverage the insights of our global research latform on industries and comanies to find attractive investments for the ortfolio. Not for use with Individual Investors. 3

4 QUARTERLY ATTRIBUTION SECTOR ATTRIBUTION DATA VS. RUSSELL 2000 GROWTH INDEX (3 months ended June 30, 2018) Total Value Added Value Added from Grou Weight Value Added from Stock Selection 2% 1% -1% Total Info Tech Consumer Disc Industrials & Bus Svcs Materials Health Utilities Health Care Telecomm Services Energy Over/Underweight 12% Real Estate Financials Consumer Stales Over/Underweight % 4.92% 3.26% -3.67% -0.41% -5.29% -0.43% -1.51% -0.58% -1.35% -1.0 Fund Performance Index Performance Value Add - Grou Weight Value Add - Stock Selection Total Contribution TOP 5 RELATIVE CONTRIBUTORS VS. RUSSELL 2000 GROWTH INDEX (3 months ended June 30, 2018) Security % of Equities TOP 5 RELATIVE DETRACTORS VS. RUSSELL 2000 GROWTH INDEX (3 months ended June 30, 2018) Net Contribution (Basis Points) Security % of Equities 6% -6% Net Contribution (Basis Points) Vail Resorts Inc 3.6% 81 Gci Liberty Inc 1.6% -25 Nektar Theraeutics Cboe Hldgs Inc Transunion Avexis Inc Rh Exact Sciences Cor Shoify Inc World Wrestling Entr Net contribution is calculated versus a secific benchmark. It is the difference between the security s absolute contribution to the ortfolio and the security s absolute contribution to the benchmark. This reflects the amount the security has imacted relative return. Past erformance cannot guarantee future results. All other numbers are ercentages. Note: Analysis reresents the equity-only erformance of the ortfolio as calculated by the Wilshire Atlas attribution model and is exclusive of cash, trusts, mutual funds, delisted securities, and other non-equity holdings. Returns will not match official T. Rowe Price erformance because Wilshire uses different ricing and exchange rate sources and does not cature intraday trading or fair-value ricing. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an indeendent third arty. Source: Wilshire Atlas, MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reorting. Each year, MSCI and S&P review the GICS structure. The last change occurred on August 31, T. Rowe Price will adhere to all future udates to GICS for rosective reorting. Figures are shown gross of fees. Not for use with Individual Investors. 4

5 12-MONTH ATTRIBUTION SECTOR ATTRIBUTION DATA VS. RUSSELL 2000 GROWTH INDEX (12 months ended June 30, 2018) Total Value Added Value Added from Grou Weight Value Added from Stock Selection 9% 6% 3% -3% Total Info Tech Industrials & Bus Svcs Consumer Disc Utilities Real Estate Materials Financials Telecomm Services Consumer Stales Energy Over/Underweight 18% Over/Underweight % 3.26% 4.92% -0.58% -3.67% -0.41% -1.35% -0.43% % -5.29% Fund Performance Index Performance Value Add - Grou Weight Value Add - Stock Selection Total Contribution TOP 5 RELATIVE CONTRIBUTORS VS. RUSSELL 2000 GROWTH INDEX (12 months ended June 30, 2018) Security % of Equities Vail Resorts Inc 3.6% 132 Nektar Theraeutics Burlington Stores Inc Tesaro Inc Transunion Trivago N V Shoify Inc Acuity Brands Inc Costar Grou Inc Incyte Pharmaceutica Net contribution is calculated versus a secific benchmark. It is the difference between the security s absolute contribution to the ortfolio and the security s absolute contribution to the benchmark. This reflects the amount the security has imacted relative return. Past erformance cannot guarantee future results. All other numbers are ercentages. Note: Analysis reresents the equity-only erformance of the ortfolio as calculated by the Wilshire Atlas attribution model and is exclusive of cash, trusts, mutual funds, delisted securities, and other non-equity holdings. Returns will not match official T. Rowe Price erformance because Wilshire uses different ricing and exchange rate sources and does not cature intraday trading or fair-value ricing. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an indeendent third arty. Source: Wilshire Atlas, MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reorting. Each year, MSCI and S&P review the GICS structure. The last change occurred on August 31, T. Rowe Price will adhere to all future udates to GICS for rosective reorting. Figures are shown gross of fees. Health Care TOP 5 RELATIVE DETRACTORS VS. RUSSELL 2000 GROWTH INDEX (12 months ended June 30, 2018) Net Contribution (Basis Points) Security % of Equities 12% 6% -6% Net Contribution (Basis Points) Not for use with Individual Investors. 5

6 PORTFOLIO POSITIONING SECTOR DIVERSIFICATION CHANGES OVER TIME Fund - Prior Year (6/30/17) Fund - Prior (3/31/18) Fund - Current (6/30/18) 3 25% 2 15% 1 5% Russell 2000 Growth Index - Current -5% (6/30/18) Info Tech Indust & Bus Svcs Health Care Cons Disc Financials Cons Stls Real Estate Telecomm Svcs Energy Materials Utilities LARGEST PURCHASES LARGEST SALES Issuer Sector % of Fund Current 6/30/18 % of Fund Prior 3/31/18 Issuer Sector % of Fund Current 6/30/18 % of Fund Prior 3/31/18 Cboe Global Markets 1.6% 1.9% Vail Resorts 3.2% 3.1% Gartner Shoify RealPage SS&C Technologies Holdings Zillow Wix.com Rentokil Initial (N) Watsco SS&C Technologies Holdings Lennox International Toro Align Technology Sareta Theraeutics Okta FirstService Alnylam Pharmaceuticals GW Pharmaceuticals Booking Holdings (N) New Position Not for use with Individual Investors. 6

7 HOLDINGS TOP 10 ISSUERS Issuer Industry % of Fund % of Russell 2000 Growth Index Vail Resorts Hotels Restaurants & Leisure 3.2% 0. TransUnion Professional Services Burlington Stores Secialty Retail Black Knight IT Services Bright Horizons Family Solutions Diversified Consumer Services CoStar Grou Professional Services Waste Connections Commercial Services & Sulies Cboe Global Markets Caital Markets Shoify Internet Software & Services Gartner IT Services TOP 5 OVER/UNDERWEIGHT POSITIONS VS. RUSSELL 2000 GROWTH INDEX Issuer Industry % of Fund % of Russell 2000 Growth Index Over/Underweight Vail Resorts Hotels Restaurants & Leisure 3.2% % TransUnion Professional Services Burlington Stores Secialty Retail Black Knight IT Services Bright Horizons Family Solutions Diversified Consumer Services Five Below Secialty Retail Blackbaud Software Haemonetics Health Care Equi & Sulies Entegris Semicons & Semicon Equi Medidata Solutions Health Care Technology PORTFOLIO MANAGEMENT Portfolio Manager: Henry M. Ellenbogen Managed Fund Since: 2010 Joined Firm: 2001 Not for use with Individual Investors. 7

8 Additional Disclosures Russell Investment Grou is the source and owner of the trademarks, service marks and coyrights related to the Russell Indexes. Russell is a trademark of Russell Investment Grou. The manager s views and ortfolio 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 secific securities identified and described do not reresent all of the securities urchased, sold, or recommended for the Fund and no assumtions should be made that the securities identified and discussed were or will be rofitable. The information shown does not reflect any ETFs that may be held in the ortfolio. Source for Sector Diversification: T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reorting. Each year, MSCI and S&P review the GICS structure. The last change occurred on August 31, T. Rowe Price will adhere to all future udates to GICS for rosective reorting. Diversification exhibits may not add to 10 due to exclusion or inclusion of cash. Certain numbers in this reort may not equal stated totals due to rounding. Unless otherwise stated, data is as of the reort date. Unless indicated otherwise the source of all data is T. Rowe Price. Closed to new investors. Oen to subsequent investments. This material has been reared for informational uroses only. The views and oinions stated in this commentary are those of the ortfolio managers listed as of the date indicated. These views and oinions 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 exectations. T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Shee design are, collectively and/or aart, trademarks or registered trademarks of T. Rowe Price Grou, Inc. All rights reserved. T. Rowe Price Investment Services, Inc., Distributor Not for use with Individual Investors. 8