QUARTERLY SUMMARY As of June 3, 8 US Growth Stock SMA PORTFOLIO MANAGER: Joseph B. Fath JOINED FIRM: INVESTMENT APPROACH Focus on companies with double-digit earnings and cash flow growth - emphasize sustainable growth, not momentum growth. Integrate fundamental research - seek high-quality earnings, strong free cash flow growth, and seasoned management teams with a demonstrated history of thoughtful capital allocation. Capitalize on differences between cyclical and secular growth - essential to successful growth investing. Avoid overpaying for growth, while broadly diversifying portfolios, to help manage portfolio risk. Integrate non-u.s. stocks in a measured fashion to add value versus the benchmarks. PORTFOLIO CONSTRUCTION The portfolio maintains positions in 45 to 6 stocks. Active position sizes typically range from.75% to 8.% relative to the Russell Growth Index. For primary sectors in the Russell Growth Index (i.e., those weighted approximately % or higher), the portfolio's sector weights vary from.5x to.5x the index weight. STRATEGY HIGHLIGHTS The portfolio generated positive returns and outperformed the Russell Growth Index during the three-month period ended June 3, 8. Relative performance drivers: Stock picks in the health care sector contributed to relative performance. Stock selection in the consumer discretionary sector also boosted relative results. Conversely, stock choices in the financials sector weighed on relative returns. Additional highlights: Domestic stocks recorded decent gains in the second quarter of 8, supported by favorable earnings and economic data. From a positioning standpoint, the largest overweight sector relative to the benchmark is consumer discretionary, where we are focused on businesses benefiting from the secular shift of consumer spending to online retail, as well as companies positioned to take advantage of the long-term growth in online travel services. Amazon.com and Tesla are among our largest holdings in the sector. Net trading activity within the sector was positive during the quarter as we added to select holdings. The largest underweight sector relative to the index is consumer staples due to the sector s moderate growth trajectory. We believe that disciplined fundamental analysis will enable us to identify highquality companies with durable growth prospects that are poised to stand out from the broader market. We continue to favor companies that have more control of their destiny, are positioned to benefit from powerful secular trends, and are using innovation to disrupt less efficient business models and create new ones. Annualized PERFORMANCE Three Months Year-to- Date One Year Since Inception 4/3/6 US Growth Stock SMA Composite ( Pure Gross) 6.34%.98% 6.5% 6.7% US Growth Stock SMA Composite (Net - Wrap Fee) 5.56 9.35.83.6 Russell Growth Index 5.76 7.5.5.5 Value Added ( Pure Gross).58 3.73 4. 5.76 Value Added (Net - Wrap Fee) -...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. Supplemental information.
CALENDAR YEAR PERFORMANCE 6 7 YTD 8 US Growth Stock SMA Composite ( Pure Gross) 8.6% 38.9%.98% US Growth Stock SMA Composite (Net - Wrap Fee) 6.4 34. 9.35 Russell Growth Index 7.7 3. 7.5 Value Added ( Pure Gross).89 7.88 3.73 Value Added (Net - Wrap Fee) -.3 3.9. 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, 6 through December 3, 6 Supplemental information. TOP HOLDINGS %of Rep.. Issuer Industry Portfolio Amazon.com Internet & Direct Marketing Retail 9.5% Alphabet Internet Software & Services 5.7 Facebook Internet Software & Services 5.7 Microsoft Software 5.6 Booking Holdings Internet & Direct Marketing Retail 4.8 Boeing Aerospace & Defense 3.7 Visa IT Services 3.5 Alibaba Group Holding Internet Software & Services 3. Tesla Automobiles.9 UnitedHealth Group Health Care Providers & Services.8 RISK RETURN CHARACTERISTICS This exhibit will be available after three years of performance history. SECTOR DIVERSIFICATION Representative Portfolio Russell Growth Index Over/Underweight 6 5 4 3 - PORTFOLIO CHARACTERISTICS Representative Portfolio Russell Growth Index Number of Holdings 49 54 Investment Weighted Average Market Cap (mm)(usd) $35,6 $78,48 Investment Weighted Median Market Cap (mm)(usd) $54,36 $7,96 Price to Earnings ( Months Forward), 4.7X.6X Price to Book 9.X 7.9X Projected Earnings Growth Rate (IBES), 6.8% 5.% Return on Equity (Last Months excl. charges) 6.% 3.4% Average Company Yield (Inv Wtd Avg).%.3% Top Holdings as Percent of Total 66.9% 44.4% Percent of Portfolio in Cash 3.3% -- Portfolio Turnover 36.7% -- 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 GROWTH STOCK SMA REPRESENTATIVE PORTOLIO VS. RUSSELL GROWTH INDEX (Three months ended June 3, 8) Over/Underweight Total Value Added Group Weight Stock Selection Percent of Value Added 3 - Percent of Over/Underweight 8 4-4 - Industr. & -8 Health Cons. Bus. Telecom Real Info. Cons. Total Care Discret. Srvcs. Materials Services Energy Utilities Estate Tech. Staples Financials Over/Underweight -.3 4.77 -.78 -.5 -.5 -... -.39-3.3. Portfolio Performance 6.4.56. -.4 4.8.. 4.4 -.6 8. -7.84-5.6 Benchmark Performance 5.76 5. 9.63 -.69.93 3.68 9.6.7 5.6 8.6.6 -.8 Value Add - Stock Selection.5.7.49.3.... -.4 -.4 -.45 -.37 Value Add - Group Weight.5 -...6.9. -.4 -.5 -..9. -.6 Total Contribution.66.69.6.39.. -.4 -.4 -.4 -.5 -.4 -.5 Numbers may not add to % 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 3, 6. 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
MONTH SECTOR ATTRIBUTION: US GROWTH STOCK SMA REPRESENTATIVE PORTOLIO VS. RUSSELL GROWTH INDEX ( months ended June 3, 8) Over/Underweight Total Value Added Percent of Value Added Percent of Over/Underweight Group Weight Stock Selection 5 5-5 Total Cons. Discret. Health Care Materials Info. Tech. Industr. & Bus. Srvcs. Utilities Energy Telecom Services Cons. Staples Real Estate Financials Over/Underweight - 4.77.3 -.5 -.39 -.78. -. -.5-3.3.. Portfolio Performance 6.59 4.56. -6.4 33.5 4.86.7..48-6.9.5 9.39 Benchmark Performance.5 7.5.95 6.73 33.47 5.5 8.95 6.4 4...58 9.55 Value Add - Stock Selection..4.34 -.3 -. -.7 -.83. -.9 -.99.8 -.69 Value Add - Group Weight.97.3 -..6.56.4.89.5.3.93 -.9 -.8 Total Contribution 4.8.45.3.57.55.7.6.5.4 -.5 -. -.77-5 Numbers may not add to % 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 3, 6. 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. 4
US Growth Stock SMA Composite Period Ended June 3, 8 Figures Shown in U.S. dollar 6 7 YTD 8 Net Annual Returns (%) 6.4 34. 9.35 "Pure" Gross Annual Returns (%) 8.6 38.9.98 Russell Growth Index (%) 7.7 3. 7.5 Composite 3 Yr St. Dev. 3 N/A N/A N/A Russell Growth Index 3 Yr St. Dev..5.54.9 Composite Dispersion N/A N/A N/A Comp. Assets (Millions) 4. 4.3 47.7 # of Accts. in Comp. 5 9 Total Firm Assets (Billions) 87.,. N/A SMA Portfolio (%) % 3% 93% GIPS Disclosure 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 upon request. April 3, 6 through December 3, 6. 3 Three year annualized ex post standard deviation is not presented because 36 monthly returns are not available. 4 7% 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, 7 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 () 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 fewer portfolios. Some portfolios may trade futures, options, and other potentially high risk derivatives which generally represent less than % of a portfolio. Benchmarks are taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from the composite. The firm's list of composite descriptions and/or a presentation that adheres to the GIPS standards are available upon request. US Growth Stock SMA Composite. The US Growth Stock SMA Composite seeks long term capital appreciation primarily through investment in large cap growth companies. This composite is comprised of a subset of the US Growth Stock Composite holdings. (Created May 6) Fee Schedule 3% on total assets 5
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 3 August 6. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Diversification exhibits may not add to % 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. It is not intended for distribution to retail investors in any jurisdiction. USA - Issued in the USA by T. Rowe Price Associates, Inc., East Pratt Street, Baltimore, MD,, 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. 8 T. Rowe Price. All rights reserved. 87-5558 6