T. Rowe Price US Large Cap Value Equity Fund

Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

The listed funds are not an exhaustive list of funds available. Visit www.funds.troweprice.com to see the full range of funds offered by T. Rowe Price, including those that consider environmental and social characteristics as part of their investment process. For up to date information regarding any T. Rowe Price fund's investment strategy, please see the relevant fund KID and prospectus.

Overview

Strategy

Fund Summary

We focus on relative value, searching for companies with solid businesses, strong balance sheets, and durable earnings profiles that are inexpensive relative to their history, sector or the market. We balance our valuation analysis with qualitative factors to identify the most compelling valuation opportunities. The promotion of environmental and/or social characteristics is achieved through the fund's commitment to maintain at least 10% of the value of its portfolio invested in Sustainable Investments, as defined by the SFDR. Additionally, we apply a proprietary responsible screen (exclusion list). The manager is not constrained by the fund’s benchmark, which is used for performance comparison purposes only.

Investment Association Sector:

North America

30-Sep-2021 - Heather McPherson, Portfolio Manager,

Over the third quarter, we used valuation disparities between names and attractive valuations within the health care sector to continue fine-tuning the portfolio's exposure over the period. We continued trimming our cyclical exposure following strength in recent quarters, while keeping the portfolio slightly tilted toward economic normalization. We are confident in how our portfolio is positioned as we advance through the remainder of 2021.

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Health Care

We identified pockets of opportunity in the sector over the period as relative valuations appeared attractive, particularly within managed care names, which offered solid valuation cases for value investors.

We purchased shares of Cigna, taking advantage of the company's sell-off during the quarter. We believe Cigna is exposed to several idiosyncrasies that are poised to improve and add value over time.
We added to our position in Becton, Dickinson & Company. In our view, the company has very consumable products but is undervalued relative to its peers. As the scope of hospital procedures normalizes over time, we expect to see increased performance from the medical technology company.

Industrials and Business Services

We like several names in this sector, where we invest in companies that reach many different end markets and have solid business models and/or an ability to generate strong cash flows.

We initiated a position in Siemens during the period. We appreciate that the company has streamlined its business around growth areas, as well as its attractive valuation and position in industrial automation and software.

Financials

The financials sector represents a significant absolute weighting in the portfolio. We tend to prefer defensively positioned names with solid balance sheets and diversified revenue streams that are trading at attractive relative valuations.

We trimmed our positions in JPMorgan Chase and Morgan Stanley and eliminated our stake in State Street on recent strong performance. We continue to value the names but chose to shift our exposure into companies with more attractive valuations and risk/reward ratios.

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Energy

The energy sector has experienced considerable volatility since the outbreak of the coronavirus in early 2020. After a strong run, we focused on our bets in names we like for the long term. Our view was that there would be a recovery in oil prices, and some companies in the space would act with capital discipline, which could create a favorable return environment for select names.

We trimmed our position in Pioneer Natural Resources on recent strength relative to the broader sector. While we appreciate the company's high-quality inventory and improving balance sheet, at current oil prices, we believe that its risk/reward characteristics are less attractive than other energy names.

30-Apr-2020 - Taymour Tamaddon, Portfolio Manager,

Periods of stress and crisis often can often lead to meaningful changes. Many of the innovative technology companies that we prefer are operating in huge addressable markets but face ongoing inertia when it comes to persuading customers that pursuing new ways of doing things is worth the effort. Moments like the current crisis can push companies and consumers to embrace changes much faster than they would have done under normal circumstances. Broadly speaking, this should be supportive of the powerful secular trends that we tend to invest behind.

30-Jun-2022 - Gabe Solomon, Portfolio Manager,

We added shares of real estate investment trust AvalonBay Communities throughout the period. Given the recent sell-off, we find the company's risk/reward attractive and continue to like the name due to its strong pricing power and well-located multifamily assets.
We purchased shares of biopharmaceutical company Bristol-Myers Squibb. We find value in the company's improved exclusivity on select drugs within its pipeline, pending product approvals, and shareholder-friendly capital allocation plans.
We added to our positions in medical device companies Zimmer Biomet Holdings and Medtronic, as they should both benefit from the resumption of elective procedures in a more normalized, post-pandemic environment.
We trimmed our exposure to property and casualty insurers that have been strong contributors in recent periods to lean into other names we felt carried more attractive valuations. We reduced our position in American International Group, and we eliminated MetLife from the portfolio.
We sold shares of multinational financial services company Charles Schwab to manage our position size. In our view, the stock's valuation suggests that many of the Federal Reserve's potential interest rate hikes have been priced in, but we continue to value Charles Schwab's scale advantage and asset growth.
We sold shares of chicken, beef, and pork producer and processor Tyson Foods. We continue to appreciate the name but are concerned that increased feed costs will impact margins, particularly in chicken and beef.
We purchased shares of global retailer Wal-Mart on weakness. In our view, the company has an attractive relative valuation, and we appreciate the defensive nature of the stock and its multiple e-commerce revenue streams, which provide opportunity for value creation.
We added to consumer packaged goods company Conagra Brands. Despite recent low consumer confidence levels, demand for consumer staples goods remained strong. We appreciate the defensive nature of Conagra Brands and value its growth potential within the frozen foods space.

SICAV III labelling represents the Select Investment Series III SICAV, a Luxembourg UCITS.

Please note that the Fund typically has a risk of high volatility.

Benchmark Data Source: Russell. Frank Russell Company (“Russell”) is the source and owner of the Russell Index data contained or reflected in these materials and all trademarks and copyrights related thereto. Russell® is a registered trademark of Russell. Russell is not responsible for the formatting or configuration of this materials or for any inaccuracy in T. Rowe Price Associates’ presentation thereof.

Past performance is not a reliable indicator of future performance.

Source for performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. 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. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures.

The Funds are sub-funds of the Select Investment Series III SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents (KIID) and/or the key information document (KID) in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors. They can also be found along with a summary of investor rights in English at www.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.

Daily performance data is based on the latest available NAV.

The specific securities identified and described in this website do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.

Citywire Data Source: Citywire – where the fund manager is rated by Citywire, the rating is based on the manager’s 3-year risk adjusted performance. For further information on ratings methodology, please visit www.aboutcitywire.com.

Health Care

Industrials and Business Services

Financials

Energy

Risks

Typical Investor

Commentary for