QUARTERLY SUMMARY As of December 31, 18 STRATEGY HIGHLIGHTS US Blue Chip Growth Equity SMA INVESTMENT APPROACH PORTFOLIO MANAGER: Larry J. Puglia JOINED FIRM: 199 Identify high-quality companies with leading market positions in fertile growth fields. Integrate fundamental research emphasize sustainable growth, not momentum growth. Focus on high-quality earnings, strong free cash flow growth, shareholder-oriented management, and rational competitive environments. Avoid overpaying for growth, while broadly diversifying portfolios, to help manage portfolio risk. PORTFOLIO CONSTRUCTION The portfolio maintains positions in 45-6 stocks Individual position sizes are typical +/-4% versus the Russell 1 Growth Index weightings. Sector weights range from.5x to 3.X for primary Russell 1 Growth Index sectors. The portfolio generated negative returns but outperformed the Russell 1 Growth Index during the three-month period ended December 31, 18. Relative performance drivers: Stock choices in the information technology sector contributed the most to relative results. Stock picks in the financials, health care, and communication services sectors also boosted relative performance. Conversely, a lack of exposure to the consumer staples sector and stock selection in the consumer discretionary sector weighed on relative returns. Additional highlights: Major U.S. stock indexes suffered their worst quarterly declines in roughly a decade, returning most domestic benchmarks to levels last seen in the summer of 17. From a positioning standpoint, the largest overweight sector relative to the benchmark is consumer discretionary where we favor businesses benefiting from the secular shift of consumer spending to online products and services. The largest underweight sector relative to the index is consumer staples as we feel attractive growth opportunities are difficult to find in the sector. We continue to believe that our strategy of investing in "all season" growth companies those with seasoned management teams and leading market positions whose growth is not heavily reliant on the overall direction of the economy should position us to deliver attractive risk-adjusted returns over full market cycles. PERFORMANCE Three Months Year-to-Date One Year Since Inception 3/31/17 US Blue Chip Growth Equity SMA Composite ( Pure Gross) 1-13.46% 4.81% 4.81% 16.68% US Blue Chip Growth Equity SMA Composite (Net - Wrap Fee) 1-14.14 1.7 1.7 13.8 Russell 1 Growth Index -15.89-1.51-1.51 9.76 Value Added ( Pure Gross).43 6.3 6.3 6.9 Value Added (Net - Wrap Fee) 1.75 3.3 3.3 3.5 ¹ Net annual returns reflect the deduction of a 3.% annual wrap fee which is the maximum anticipated wrap fee deducted from the pure gross composite returns. Actual fees may vary. Pure gross returns are presented before the deduction of expenses and all other fees, but may include transaction costs. Returns include reinvestment of dividends and capital gains. Supplemental information. 1
CALENDAR YEAR PERFORMANCE 17 18 US Blue Chip Growth Equity SMA Composite ( Pure Gross) 1 5.6% 4.81% US Blue Chip Growth Equity SMA Composite (Net - Wrap Fee) 1.34 1.7 Russell 1 Growth Index 19.56-1.51 Value Added ( Pure Gross) 5.5 6.3 Value Added (Net - Wrap Fee).78 3.3 ¹ Net annual returns reflect the deduction of a 3.% annual wrap fee which is the maximum anticipated wrap fee deducted from the pure gross composite returns. Actual fees may vary. Pure gross returns are presented before the deduction of expenses and all other fees, but may include transaction costs. Returns include reinvestment of dividends and capital gains. March 31, 17 through March 31, 18 Supplemental information. RISK RETURN CHARACTERISTICS This exhibit will be available after three years of performance history. SECTOR DIVERSIFICATION 6 5 4 3 1-1 Representative Portfolio Russell 1 Growth Index Over/Underweight TOP HOLDINGS Issuer Industry %of Rep. Portfolio Amazon.com Internet & Direct Marketing Retail 11.6% Alphabet Interactive Media & Services 7. Microsoft Software 6.4 Boeing Aerospace & Defense 4.7 Visa IT Services 4.4 Facebook Interactive Media & Services 4.1 UnitedHealth Group Health Care Providers & Services 3.6 Booking Holdings Internet & Direct Marketing Retail 3.4 MasterCard IT Services 3. Alibaba Group Holding Internet & Direct Marketing Retail 3.1 PORTFOLIO CHARACTERISTICS Representative Portfolio Russell 1 Growth Index Number of Holdings 48 546 Investment Weighted Average Market Cap (mm) (USD) $99,7 $51,743 Investment Weighted Median Market Cap (mm) (USD) $183,143 $99,58 Price to Earnings (1 Months Forward) 1,.6X 18.7X Price to Book 1 8.1X 7.8X Projected Earnings Growth Rate (IBES) 1, 15.8% 14.6% Return on Equity (Last 1 Months excl. charges) 1.9% 6.8% Average Company Yield (Inv Wtd Avg).8% 1.6% Top Holdings as Percent of Total 7.49% 44.6% Percent of Portfolio in Cash 1.1% -- 1 Investment Weighted Median. Based on the Representative Portfolio s underlying holdings and is not a projection of future portfolio performance. Actual results may vary.
QUARTERLY SECTOR ATTRIBUTION: US BLUE CHIP GROWTH EQUITY SMA REPRESENTATIVE PORTFOLIO VS. RUSSELL 1 GROWTH INDEX (Three months ended December 31, 18) Total Value Added Group Weight Stock Selection 6 4 - -4 Percent of Value Added Over/Underweight Percent of Over/Underweight Total Info. Tech Financials Health Care Comm. Srvcs. Energy Industr. & Bus. Srvcs. Materials Real Estate Cons. Discret. Cons. Staples Utilities Over/Underweight.% -5.61%.48% 4.8%.96% -.76% -4.4% -1.84% -1.34% 8.97% -6.3%.% Portfolio Performance -13.55-1.98-8.9-11.58-16.7. -15.55. 9.45-18.14.. Benchmark Performance -15.89-18.8-11.94-1.14-17.3-8.84-16.63-1.1-1.83-17.15-6.8. Value Add - Stock Selection.57.7.8.13.17..7..8 -.3.. Value Add - Group Weight -.4.1.13.15 -.5.11.3 -.8 -.19 -.17 -.54. Total Contribution.34.8.41.8.13.11.1 -.8 -.11 -.4 -.54. Numbers may not add to 1% due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested. Sources: Financial data and analytics provider FactSet. Copyright 19 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting. Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees. Performance returns are in USD. Supplemental Information. 6 4 - -4-6 -8 3
QUARTERLY SECTOR ATTRIBUTION: US BLUE CHIP GROWTH EQUITY SMA REPRESENTATIVE PORTFOLIO VS. RUSSELL 1 GROWTH INDEX (Since Inception ended December 31, 18) Over/Underweight Total Value Added Group Weight Percent of Value Added 15 1 5 Percent of Over/Underweight 1 5 Stock Selection -5-5 Industr. & Cons. Health Bus. Cons. Real Comm. Total Info. Tech Discret. Care Srvcs. Materials Energy Staples Utilities Estate Srvcs. Financials Over/Underweight.% -5.61% 8.97% 4.8% -4.4% -1.84% -.76% -6.3%.% -1.34%.96%.48% Portfolio Performance 4.6.1 9.1 7.51-5.96.. -1.54. 13.3-1.94-9.75 Benchmark Performance -1.51 4.48 5.5 4.5-1.13-14.61-9.91-5.13 9.15 -.5-11.11-5.9 Value Add - Stock Selection 5.4 3.7.97.6.33.. -.11..1. -.56 Value Add - Group Weight 1.9 -.51.75.5.53.49.31.19 -. -.13 -.4 -.31 Total Contribution 6.14 3.19 1.7.87.86.49.31.8 -. -.3 -.4 -.87 Numbers may not add to 1% due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested. Sources: Financial data and analytics provider FactSet. Copyright 19 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting. Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees. Performance returns are in USD. Supplemental Information. -1 4
US Blue Chip Growth Equity SMA Composite Period Ended December 31, 18 Figures Shown in U.S. dollar GIPS Disclosure 17 18 Net Annual Returns (%) 1.34 1.7 "Pure" Gross Annual Returns (%) 1 5.6 4.81 Russell 1 Growth Index (%) 19.56 1.51 Composite 3 Yr St. Dev. 3 N/A N/A Russell 1 Growth Index 3 Yr St. Dev. 1.54 1.13 Composite Dispersion N/A N/A Comp. Assets (Millions) 4.5 4.9 # of Accts. in Comp. 1 64 Total Firm Assets (Billions) 1,. N/A SMA Portfolio (%) % 94% 1 Net annual returns reflect the deduction of the highest applicable wrap fee from the pure gross returns. Pure gross returns are presented before the deduction of expenses and all other fees, but may include transaction costs. Supplemental information. Past performance cannot guarantee future results. Monthly composite performance is available uponrequest. March 31, 17 through December 31, 17. 3 Three year annualized ex post standard deviation is not presented because 36 monthly returns are notavailable. 4 6% of composite assets are composed of non fee paying portfolios. T. Rowe Price (TRP) has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS ). TRP has been independently verified for the year period ended June 3, 18 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm wide basis and () the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S., international, and global strategies but excluding the services of the Private Asset Management group. The composite does not have a minimum size for composite inclusion. Valuations are computed and performance reported in U.S. dollars. "Pure" gross returns are presented before the deduction of expenses and all other fees, but may include transactions costs. "Pure" gross returns are presented as supplemental information. Net of fees performance reflects the deduction of the highest applicable wrap fee appropriate to you for this mandate from the "pure" gross composite return. Gross and net performance returns are net of nonreclaimable withholding taxes on dividends, interest income, and capital gains. Portfolio valuation and assets under management are calculated based on the closing price of the security in its respective market. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Dispersion is measured by the standard deviation across asset weighted portfolio returns represented within a composite for the full year. Dispersion is not calculated for the composites in which there are five or fewerportfolios. Some portfolios may trade futures, options, and other potentially high risk derivatives which generally represent less than 1% of aportfolio. Benchmarks are taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from thecomposite. The firm's list of composite descriptions and/or a presentation that adheres to the GIPS standards are available uponrequest. US Blue Chip Growth Equity SMA Composite. The US Blue Chip Growth Equity SMA Composite seeks long term capital appreciation primarily through investment in common stocks of well established large and medium cap blue chip companies with potential for above average earnings growth. Current income is a secondary objective for this strategy. This composite is comprised of a subset of the US Large Cap Core Growth Equity Composite holdings. (Created April 17) FeeSchedule 3% on totalassets 5
ADDITIONAL DISCLOSURES 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. Portfolio Construction: There is no guarantee that the investment will remain within the anticipated ranges of exposure. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients, and no assumptions should be made that investments in the securities identified and discussed were or will be profitable. 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. Diversification exhibits may not add to 1% due to exclusion or inclusion of cash. The representative portfolio is an account in the composite we believe most closely reflects current portfolio management style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of other accounts in the strategy. Please see the GIPS disclosure page for additional information on the composite. 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. IMPORTANT INFORMATION Risks: All investments are subject to risks, including possible loss of principal. The strategy's growth approach to investing could cause it to underperform other stock portfolios that employ a different investment style. Growth stocks tend to be more volatile than value stocks and their prices usually fluctuate more dramatically than the overall stock market. This material being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction. Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price. The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. USA - Issued in the USA by T. Rowe Price Associates, Inc., 1 East Pratt Street, Baltimore, MD, 1, which is regulated by the U.S. Securities and Exchange Commission. 19 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE and the bighorn sheep design are collectively and/or apart, trademarks of T. Rowe Price Group, Inc. 191-7649 6