As of 30 Sep 20 Total U.S. Large-Cap Value Assets : $49.9 billion Total Strategy Assets 2 : $7. billion Investment Approach Focus on relative value relationships. Employ fundamental research to identify companies with improving financial outlook. Integrate qualitative inputs to assess potential for improved investor perception. Verify relative valuation anomalies through quantitative analysis. Balance valuation analysis and qualitative assessment. Portfolio Construction 70-80 stock portfolio Individual positions typically range to 5.00% Sector weights will typically vary from 0.5X to 2.0X of primary Reserves will range from 0% to 2% Portfolio Management Team John D. Linehan, CFA 22 years of investment experience; 3 years with T. Rowe Price. BA, Amherst College MBA, Stanford University Brian C. Rogers, CFA, CIC 32 years of investment experience; 29 years with T. Rowe Price. AB, Harvard College MBA, Harvard Business School Mark S. Finn, CFA, CPA 3 years of investment experience; 20 years with T. Rowe Price. BS, University of Delaware Benchmarks Russell 000 Value Index S&P 500 Index Includes U.S.-registered mutual funds, a subfund of the T. Rowe Price Funds SICAV, separate accounts, subadvised portfolios, a variable annuity portfolio, a common trust fund, a common trust fund portfolio, and a college savings portfolio. 2 Includes a U.S.-registered mutual fund, a subfund of the T. Rowe Price Funds SICAV, separate accounts, a common trust fund, and subadvised portfolios. 9082 (5/200)
Top 0 Holdings Sector Diversification As of 30 Sep 20 Company % of Portfolio Chevron 3.7% ExxonMobil 3. Pfizer 2.7 Microsoft 2.7 JPMorgan Chase 2.7 AT&T 2.6 IBM 2.6 Merck 2.5 Johnson & Johnson 2.3 Time Warner 2. Total 27.% Portfolio Characteristics Percent 40 30 20 0 0-0 Consmr. Disc. U.S. Large-Cap Value Representative Portfolio Russell 000 Value Index S&P 500 Index Consmr. Staples Energy Financials Health Indust. & Care Bus. Servs. Info. Tech. Materials Telecom Services U.S. Large-Cap Value Representative Portfolio Russell 000 Value Index S&P 500 Index Projected Earnings Growth Rate 2 9.9% 9.2%.0% Price to Earnings (2 Months Forward) 2 0.4X 0.4X.6X Return on Equity (Last 2 Months) 8.4% 4.4% 9.9% Price to Book.6X.5X 2.4X Unweighted Median Market Capitalization (Millions) $24,379 $4,3 $9,789 Investment Weighted Median Market Capitalization (Millions) $39,862 $33,3 $45,73 Investment Weighted Average Market Capitalization (Millions) $78,900 $66,456 $87,067 Number of Holdings 83 653 500 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 the composite and of the other accounts in the composite. Information regarding the representative portfolio and the other accounts in the composite is available upon request. 2 Source: IBES. The specific securities identified and described above do not represent all of the securities purchased, sold, or recommended for clients in the composite, and no assumptions should be made that the securities identified and discussed were or will be profitable. The information shown does not reflect any ETFs that may be held in the portfolio. Numbers may not total due to rounding. Supplemental information. Statistics are Investment Weighted Median unless otherwise noted. T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P make changes to the GICS structure. The last change occurred on July 200. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Utilities
Performance Annualized Periods Ended 30 Sep 20 Three Year-to- One Three Five Seven Ten Months Date Year Years Years Years Years (Gross of Fees) -7.36% -2.37% -2.96% -0.70% -.86% 2.56% 4.39% (Net of Fees) -7.47-2.7-3.45 -.9-2.35 2.05 3.87 Russell 000 Value Index -6.20 -.24 -.89 -.52-3.53.60 3.36 S&P 500 Index -3.87-8.68.4.23 -.8 2.29 2.82 Net of fees performance reflects the deduction of the highest applicable management fee ( Model Net Fee ) that would be charged based on the fee schedule appropriate to you for this mandate, without the benefit of breakpoints. Please be advised that the composite may include other investment products that are subject to management fees that are inapplicable to you but are in excess of the Model Net Fee. Therefore, the actual performance of all the portfolios in the composite on a net fee basis will be different and may be lower than the Model Net Fee performance. However, such Model Net Fee performance is intended to provide the most appropriate example of the impact management fees would have by applying management fees relevant to you to the gross performance of the composite. Past performance cannot guarantee future results. Supplemental information. See GIPS Disclosure for additional performance information. Risk/Return Characteristics Alpha Information Ratio Sharpe Ratio Beta R-Squared -0.8-0.26 0.68 0.00 0.98.78% Historical Tracking Error 2.50% -2 0 2 4 Russell 000 Value Index Alpha Information Ratio Sharpe Ratio Beta R-Squared -0.34% -0.3-0.8-0.5 0.00.06 0.98 3.07% Historical Tracking Error -2 0 2 4 S&P 500 Index Five Years Ended 30 September 20. Statistics based on monthly gross returns. Returns would have been lower as the result of the deduction of applicable fees. Past performance cannot guarantee future results. Supplemental information.
Fee Schedule A As of 30 Sep 20 The seeks long-term capital appreciation primarily through investment in large companies that appear to be undervalued. Income is a secondary objective for this strategy. (Created June 2006) First $50 million Next $50 million 50 basis points 45 basis points Above $00 million 40 basis points on all assets Above $200 million 35 basis points on all assets Minimum separate account size $50 million A transitional credit is applied to the fee schedule as assets approach or fall below the break point.
GIPS Disclosure Period Ended September 30, 20 Figures Shown in U.S. dollar 200 2002 2003 2004 2005 2006 2007 2008 2009 200 YTD 20 Gross Annual Returns (%) -0.09-3.86 30.68 6.9 5.94 2.87 2.39-35.96 28.54 3.97-2.37 Net Annual Returns (%)¹ -0.59-4.30 30.04 6.33 5.4 2.27.88-36.29 27.9 3.4-2.7 Russell 000 Value Index (%)² -5.59-5.52 30.03 6.49 7.05 22.25-0.7-36.85 9.69 5.5 -.24 S&P 500 Index (%)² -.89-22.0 28.68 0.88 4.9 5.79 5.49-37.00 26.46 5.06-8.68 Composite 3-Yr St. Dev. 4.2 7.23 6.64 5.74 0.22 6.52 7.8 5.57 2.5 23.29 22.99 Russell 000 Value Index 3-Yr St. Dev. 4.67 6.98 5.99 4.76 9.46 6.68 8.06 5.36 2.0 23.8 22.69 S&P 500 Index 3-Yr St. Dev. 6.7 8.55 8.07 4.86 9.04 6.82 7.68 5.08 9.63 2.85 20.95 Composite Dispersion.90 0.6 0.9 N/A 0.0 0.25 0.48 0.56 0.50 0.38 N/A Comp. Assets (Millions) 299.6 259.4 349.5 900. 926.8 2,34.9,684.6,407.6 3,56.0 4,567.3 5,834.4 # of Accts. in Comp. 6 6 7 3 2 7 8 2 25 25 Total Firm Assets (Billions) 53.9 38.6 88.0 234.7 268.9 333.8 397.5 275.7 395.2 485.0 457.2 ¹Reflects deduction of highest applicable fee schedule without benefit of breakpoints. Investment return and principal value will vary. Past performance cannot guarantee future results. See below for further information related to net of fee calculations. ²Primary benchmark is Russell 000 Value Index and secondary benchmark is S&P 500 Index. Effective January, 20, the GIPS firms known as T. Rowe Price Associates, Inc. ( TRPA ) and T. Rowe Price International, Inc. ( TRPI ) were merged into a single GIPS firm and redefined to now be known as T. Rowe Price ( TRP ). TRP has prepared and presented this report in compliance with Global Investment Performance Standards (GIPS ). TRP has been independently verified for the 0-year period ended June 30, 20 by KPMG LLP. The verification report is available upon request. Verification assesses whether () the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) 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 Services 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 minimum asset level for equity portfolios to be included in composites is $5 million and prior to January 2002 the minimum was $ million. The minimum asset level for fixed income and asset allocation portfolios to be included in composites is $0 million; prior to October 2004 the minimum was $5 million; and prior to January 2002 the minimum was $ million. Valuations are computed and performance reported in U.S. dollars. Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule appropriate to you for this mandate, without the benefit of breakpoints. Gross and net performance returns are net of nonreclaimable withholding taxes on dividends, interest income, and capital gains. 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 fewer portfolios. Some portfolios may trade futures, options, and other potentially high-risk derivatives which generally represent less than 0% of a portfolio. Benchmarks are taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from the composite. Composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow greater than or equal to 0% of portfolio assets. The temporary removal of such an account occurs at the beginning of the measurement period in which the significant cash flow occurs and the account re-enters the composite on the last day of the current month after the cash flow. Additional information regarding the treatment of significant cash flows is available upon request. The firm's list of composite descriptions and/or a presentation that adheres to the GIPS standards are available upon request. A portfolio management change occurred effective February 24, 200. There were no changes to the investment program or strategy related to this composite.
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