Nimbus 9 STRATEGY HIGHLIGHTS Ticker: TILCX CUSIP: 45775L200 As of December 31, 2018 Total Large-Cap Value Assets: $98.3 billion 2 Total Strategy Assets: 1 $20.7 billion 2 Total Fund Assets: $3.6 billion 2 INVESTMENT APPROACH p Focus on relative value relationships to opportunistically identify attractively valued companies p Fundamental research is key to uncovering companies with potential for stock price mean reversion. p Integrate qualitative inputs to assess potential for improved investor perception. p Verify relative valuation anomalies through quantitative analysis. p Balance valuation analysis and qualitative overlay. p The value approach carries the risk that the market will not recognize a security s intrinsic value for a long time, if at all, or that a stock judged to be undervalued may actually be appropriately priced. PORTFOLIO CONSTRUCTION p Typically 70-80 stock portfolio p Individual position sizes typically are below 3%, but higher conviction ideas can range to 5% p Sector weights will typically vary from 0.5X to 2.0X of primary value sectors of the p Reserves will range from 0% to 2% BENCHMARK p PORTFOLIO MANAGEMENT Heather McPherson p 18 years of investment experience; 16 years with T. Rowe Price. p M.B.A., Duke University, The Fuqua School of Business p B.S., University of California, Davis John Linehan, CFA p 29 years of investment experience; 20 years with T. Rowe Price. p M.B.A., Stanford Graduate School of Business p B.A., Amherst College Mark Finn, CFA, CPA p 20 years of investment experience; 28 years with T. Rowe Price. p B.S., University of Delaware PORTFOLIO SPECIALISTS Caleb Fritz, CFA p 18 years of investment experience; 11 years with T. Rowe Price. p M.A., University of South Florida p B.A., University of South Florida For a complete list of the members of the Fund s Investment Advisory Committee, please refer to the Fund s prospectus. 1 Includes a U.S.-registered mutual fund, a sub-fund of a Luxembourg domiciled SICAV, a sub-fund of a UK domiciled OEIC, separate accounts, and subadvised portfolios. 2 Assets reported are as of September 30, 2018. FOR INVESTMENT PROFESSIONALS ONLY. NOT FOR FURTHER DISTRIBUTION. p T. ROWE PRICE 1
As of December 31, 2018 TOP 10 ISSUERS % of Fund JPMorgan Chase 3.6% Microsoft 3.4 Wells Fargo 3.3 Pfizer 2.8 Total 2.6 Merck 2.4 Cisco Systems 2.3 Twenty-First Century Fox 2.3 Medtronic 2.3 Verizon Communications 2.2 Total 27.1% SECTOR DIVERSIFICATION Over/Underweight 25% 20% 15% 10% 5% 0% -5% -10% Financials Health Care Indust & Bus Svcs Info Tech Energy Cons Stpls Utilities Comm Svcs Materials Cons Disc Real Estate PORTFOLIO CHARACTERISTICS Fund Projected Earnings Growth Rate (IBES) 9.4% 9.5% Price to Earnings (12 Months Forward) 13.0X 14.0X Return on Equity (Last 12 Months excl. charges) 13.0% 14.3% Price to Book 2.2X 2.2X Investment Weighted Median Market Cap (mm) $80,916 $67,302 Investment Weighted Average Market Cap (mm) $134,703 $120,888 Number of Holdings 80 714 Top 20 Holdings as % of Total 45.6% 35.4% Portfolio Turnover 27.5% Active Share 65.9% Investment Weighted Median. Based on the fund s underlying holdings and is not a projection of future portfolio performance. Portfolio Turnover represents 1 year period ending 12/31/18. FOR INVESTMENT PROFESSIONALS ONLY. NOT FOR FURTHER DISTRIBUTION. p T. ROWE PRICE 2
As of December 31, 2018 PERFORMANCE Annualized -12.17% -9.35% 7.16% 6.12% 11.79% 7.39% -11.72-8.27 6.95 5.95 11.18 7.04 Current performance may be lower or higher than the quoted past performance, which is not a reliable indicator of future performance. 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, if available, a summary prospectus containing this and other information, call 1-800-638-7780 or visit troweprice.com. Read it carefully. Consider the investment objectives, risks, and charges and expenses carefully before investing. Total return figures include changes in principal value, reinvested dividends, and capital gain distributions. The Fund s expense ratio was 0.57% as of its most recent prospectus. Three Months The fund(s) may have other share classes available that offer different investment minimums and fees. See the prospectus for details. One Year Three Five Ten Fifteen FOR INVESTMENT PROFESSIONALS ONLY. NOT FOR FURTHER DISTRIBUTION. p T. ROWE PRICE 3
As of December 31, 2018 RISK/RETURN CHARACTERISTICS Five ended December 31, 2018 8 Information Ratio Sharpe Ratio Tracking Error R-Squared Beta Alpha 0.10 0.00 0.49 0.49 0.00% 1.85% 0.97 1.00 1.03 1.00 0.05% 0.00% -4-3 -2-1 0 1 2 3 4 Average Annual Return (%) 7 6 5 4 LCV. 9 10 11 12 13 Average Annual Standard Deviation (%) Past performance is not a reliable indicator of future performance. Figures are calculated using monthly data and are net of fees. FOR INVESTMENT PROFESSIONALS ONLY. NOT FOR FURTHER DISTRIBUTION. p T. ROWE PRICE 4
As of December 31, 2018 ADDITIONAL DISCLOSURES Portfolio Construction: There is no guarantee that the investment will remain within the anticipated ranges of exposure. Active Share is a holdings based measure of active management representing the percentage of a portfolio s holdings that differ from those in its benchmark. Compared to tracking error, which measures the standard deviation of the difference in a manager s returns versus the Benchmark returns, Active Share allows investors to get a clearer understanding of what a manager is doing to drive performance, rather than drawing conclusions from observed returns. The greater the difference between the asset composition of a product and its benchmark, the greater the active share is. Unless indicated otherwise the source of all data is T. Rowe Price. Source for Lipper data: Lipper Inc. Lipper Data (excluding Performance and Risk Return exhibits) is estimated by T. Rowe Price based on information provided by Lipper, Inc., and LionShares. T. Rowe Price identifies the funds that compose the Lipper index and builds an aggregate portfolio for the index based on each fund s holdings as provided by LionShares. Please note that the portfolio holdings for each fund within the index are based on the most recent public information that is available, and since the funds have different reporting periods, some of this information may not be current. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Russell Investment Group. The information shown does not reflect any ETFs that may be held in the portfolio. Source for Sector Diversification: T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Diversification exhibits may not add to 100% due to exclusion or inclusion of cash. Certain numbers in this report may not equal stated totals due to rounding. Unless otherwise stated, data is as of the report date. 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. 2019 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. T. Rowe Price Investment Services, Inc., Distributor. 2016-US-27783 FOR INVESTMENT PROFESSIONALS ONLY. NOT FOR FURTHER DISTRIBUTION. p T. ROWE PRICE 5