QUARTERLY SUMMARY As of March 31, 18 US Value Equity SMA INVESTMENT APPROACH Focus on relative value relationships. Employ fundamental research to identify large and medium sized 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. Annualized Three Months Year-to- Date One Year Since Inception /3/16 US Value Equity SMA Composite ( Pure Gross) 1-1.33% -1.33% 1.8% 16.17% US Value Equity SMA Composite (Net - Wrap Fee) 1 -.7 -.7 1.93 1.77 Russell 1 Value Index -.83 -.83 6.95 1.8 Value Added ( Pure Gross) 1.5 1.5 7.33 3.89 Value Added (Net - Wrap Fee).76.76 3.98.9 PERFORMANCE PORTFOLIO MANAGER: Mark S. Finn JOINED FIRM: 199 PORTFOLIO CONSTRUCTION The portfolio maintains positions in 5-55 stocks Core positions usually are.5% to.%, with high conviction ideas ranging from 3.% to 6.5%. Individual industry weights generally less than 5% of portfolio assets Reserves will range from.5% to 1.5% STRATEGY HIGHLIGHTS The composite generated negative absolute returns but outperformed the Russell 1 Value Index during the three-month period ended March 31, 18. Relative performance drivers: The industrials and business services sector was the leading contributor to relative performance due to stock selection. Stock choices in the financials sector also aided relative results. The information technology sector was the greatest detractor from relative performance due to stock selection, although a beneficial overweight position tempered the negative impact at the sector level. Additional highlights: U.S. stocks advanced in January but ended the first quarter lower amid spikes in volatility unseen in recent periods. Investors worried that rising interest rates, the potential for higher inflation, and heightened global trade tensions could undermine the continued strength in global economies. From a positioning standpoint, the portfolio is overweight information technology relative to the benchmark. Our overweight is driven by software giant Microsoft, which is our largest portfolio holding. The portfolio is underweight energy. Although oil prices have rebounded from their lows, we believe they are likely to be somewhat subdued over time because of increased global supply. We are favoring a more balanced approach in light of the uncertain environment. The global macroeconomic backdrop remains supportive; however, we remain mindful that the U.S. economy and equity market are in the later stages of their respective cycles. 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
US Value Equity SMA Composite As of March 31, 18 CALENDAR YEAR PERFORMANCE 16 17 YTD 18 US Value Equity SMA Composite ( Pure Gross) 1 1.91% 1.81% -1.33% US Value Equity SMA Composite (Net - Wrap Fee) 1 8.7 18.6 -.7 Russell 1 Value Index 13.7 13.66 -.83 Value Added ( Pure Gross) -.16 8.15 1.5 Value Added (Net - Wrap Fee) -.33.6.76 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. April 3, 16 through December 31, 16 Supplemental information. TOP HOLDINGS Issuer Industry %of Rep. Portfolio Microsoft Software 6.% J.P. Morgan Chase & Co. Banks 5.7 Tyson Foods Food Products 5. Wells Fargo Banks.8 Merck Pharmaceuticals.6 Chubb Insurance.5 Philip Morris International Tobacco.3 Morgan Stanley Capital Markets. Cisco Systems Communications Equipment. Total Oil, Gas & Consumable Fuels.1 RISK RETURN CHARACTERISTICS This exhibit will be available after three years of performance history. SECTOR DIVERSIFICATION Representative Portfolio Russell 1 Value Index Over/Underweight 3 1-1 PORTFOLIO CHARACTERISTICS Representative Portfolio Russell 1 Value Index Number of Holdings 61 699 Investment Weighted Average Market Cap (mm)(usd) $15,15 $1,78 Investment Weighted Median Market Cap (mm)(usd) $68,385 $65,85 Price to Earnings (1 Months Forward) 1, 15.1X 15.X Price to Book 1.7X.X Projected Earnings Growth Rate (IBES) 1, 1.% 9.% Return on Equity (Last 1 Months excl. charges) 1 13.6% 11.8% Average Company Yield (Inv Wtd Avg).3%.5% Top Holdings as Percent of Total 51.% 3.7% Percent of Portfolio in Cash 1.% Portfolio Turnover 9.3% Total Assets $,661,133 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.
US Value Equity SMA Composite As of March 31, 18 QUARTERLY SECTOR ATTRIBUTION: US VALUE EQUITY SMA REPRESENTATIVE PORTOLIO VS. RUSSELL 1 VALUE INDEX (Three months ended March 31, 18) Over/Underweight Total Value Added Group Weight Stock Selection Percent of Value Added 8 6 Percent of Over/Underweight 8 - - Indust. & Health Cons Real Telecomm Total Bus Svcs Energy Care Stpls Estate InfoTech Svcs Cons Dis Financials Utilities Materials Over/Underweight --.9% -3.6% 1.8%.7% -.7%.11% -.87% -.8% -.6%.11% -.6% Portfolio Performance 1.9% 33.68 11.78 1.5 8.75 1.3.6 1.5 11. 16.13 6.71 -.7 Benchmark Performance 6.95.68 -.1 6.97-3.99-3.7 3.86-7.9 7.66 16.8.39 11.7 Value Add - Stock Selection 6.5 3.9.88 1. 1.36.1.13..17 -.3.7 -.5 Value Add - Group Weight 1. -..36.17 -.19..3.36 -..7 -.31. Total Contribution 7.5.89 1.5 1.19 1.17.53.5..17. -. -.8-8 Numbers may not add to 1% due to rounding; all numbers are percentages. Note: Analysis represents the equity-only performance of the portfolio 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 performance because Wilshire uses different pricing and exchange rate sources and does not capture intraday trading or fair-value pricing. 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 independent third party. Source: Wilshire Atlas, MSCI/S&P Global Industry Classification Standard (GICS) ; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P (GICS) for sector and industry reporting. Each year, MSCI and S&P review the GICS structure. The last change occurred on August 31, 16. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Figures are shown before management and all other fees, where applicable, but after trading expenses. Returns would be lower as a result of the deduction of such fees. Supplemental Information. 3
US Value Equity SMA Composite As of March 31, 18 1 MONTH SECTOR ATTRIBUTION: US VALUE EQUITY SMA REPRESENTATIVE PORTOLIO VS. RUSSELL 1 VALUE INDEX (1 months ended March 31, 18) Over/Underweight Total Value Added Group Weight Stock Selection Percent of Value Added 1-1 Percent of Over/Underweight 8 6 - - Total Indust. & Bus Svcs Financials Energy Cons Disc Health Care Real Estate Utilities Telecomm Svcs Materials Cons Stpls Info Tech Over/Underweight --.9% -.6% -3.6% -.8% 1.8% -.7%.11% -.87% -.6%.7%.11% Portfolio Performance -1.9% 1.95 -.6 -.6 3.8 -.73 5.93 -.78-8.6-1.7-9.18. Benchmark Performance -.83 -.51-1.6-5.78 -.78-1.65-6.7-3.6-7.11-5.33-8.38 6.11 Value Add - Stock Selection 1.37.73.3.5.31.16.11.1 -. -.1 -.6 -. Value Add - Group Weight.17 -.7.1.7 -.3.1.1 -.1.5.1 -.1.1 Total Contribution 1.5.67.35.31.8.5... -.13 -. -.6 - Numbers may not add to 1% due to rounding; all numbers are percentages. Note: Analysis represents the equity-only performance of the portfolio 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 performance because Wilshire uses different pricing and exchange rate sources and does not capture intraday trading or fair-value pricing. 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 independent third party. Source: Wilshire Atlas, MSCI/S&P Global Industry Classification Standard (GICS) ; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P (GICS) for sector and industry reporting. Each year, MSCI and S&P review the GICS structure. The last change occurred on August 31, 16. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Figures are shown before management and all other fees, where applicable, but after trading expenses. Returns would be lower as a result of the deduction of such fees. Supplemental Information.
US Value Equity SMA Composite As of March 31, 18 US Value Equity SMA Composite Period Ended March 31, 18 Figures Shown in U.S. dollar 16 17 YTD 18 Net Annual Returns (%) 1 8.7 18.6.7 "Pure" Gross Annual Returns (%) 1 1.91 1.81 1.33 Russell 1 Value Index (%) 13.7 13.66.83 Composite 3 Yr St. Dev. 3 N/A N/A N/A Russell 1 Value Index 3 Yr St. Dev. 1.77 1. 1. Composite Dispersion N/A N/A N/A Comp. Assets (Millions)..7.7 # of Accts. in Comp. 1 1 1 Total Firm Assets (Billions) 817. 1,. N/A SMA Portfolio (%) % % % GIPS Disclosure 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. Monthly composite performance is available uponrequest. April 3, 16 through December 31, 16. 3 Three year annualized ex post standard deviation is not presented because 36 monthly returns are notavailable. 1% 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 1 year period ended June 3, 17 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 Value Equity SMA Composite. The US Value Equity SMA Composite seeks long term capital appreciation by investing primarily in common stocks believed to be undervalued. Income is a secondary objective. This composite is comprised of a subset of the US Value Equity Composite holdings. (Created May16) FeeSchedule 3% on totalassets 5
US Value Equity SMA Composite As of March 31, 18 ADDITIONAL DISCLOSURES 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. Source for Sector Diversification: T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P review the GICS structure. The last change occurred on 31 August 16. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. 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. All data is accurate as of the report production 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 value approach to investing could cause it to underperform other stock strategies that employ a different investment style. The intrinsic value of a stock with value characteristics may not be fully recognized by the market for a long time or a stock judged to be undervalued may actually be appropriately priced at a low level. 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. It is not intended for distribution to retail investors in any jurisdiction. 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. T. ROWE PRICE, INVEST WITH CONFIDENCE and the bighorn sheep design are collectively and/or apart, trademarks of T. Rowe Price Group, Inc. 18 T. Rowe Price. All rights reserved. 18-7758 6