Australian Equity Fund | T. Rowe Price

Strategy

Manager's Outlook

The clouds are parting and a clearer picture of 2021 is emerging. The prospect of the rollout of an effective COVID-19 vaccine, coupled with strong ongoing fiscal and monetary support, bodes well for economic growth and earnings recovery. The risks to markets are morphing to the more familiar ones of potentially higher inflation and rising bond yields. However, given the extreme and unusual nature of the pandemic, the policy response, and consumer behaviour, it is wise to expect the unexpected! The key near-term issue is the time frame for the rollout of the vaccines and the real-world effectiveness of these treatments.

�

Despite the recent small COVID-19 outbreak in Sydney, and reaction from states in closing their borders to New South Wales or to residents of Greater Sydney, this is expected to be a short-term hiccup in the successful suppression of COVID-19 in Australia. This bodes well for the economic recovery, job creation, and earnings growth. With high levels of government support expected to continue, we believe the risks look to be to the upside going into 2021.

�

Despite our positive view on economic growth, we expect interest rates to remain low to support the recovery. The recent announcement of quantitative easing by the RBA signals this intent. As a result, we expect growth stocks to continue to do well.��

�

Investment Objective

The Fund's investment objective is long-term capital appreciation through investment primarily in a portfolio of securities of Australian companies listed on the S&P/ASX200 Accumulation Index (ASX200). The portfolio will include the securities of a broad range of companies across the market capitalisation. Additionally the portfolio may contain investments in the Securities of companies outside of the ASX200 including certain New Zealand and ASX dual listed companies.

Investment Approach

Our investment approach focuses on bottom-up company fundamentals but recognizes that sector and industry analysis are also critical to understanding growth drivers. The portfolio manager ultimately seeks to construct a growth-oriented portfolio of stocks, ranging across all market capitalization segments and maintaining sector diversification.
One of the core tenets of our investment philosophy is that quality growth stocks are frequently mispriced. Our long-term investment approach provides us with the opportunity to take advantage of near-term trends that can often be overemphasized by the market and our competitors.
We implement fundamental analysis to identify companies with positive structural industry dynamics, strong competitive positions and those that we believe can grow sustainably at attractive rates of return. In seeking out these higher-quality businesses, we focus on industry attractiveness, competitive advantage, management quality, free cash flow, return on capital and financing/balance sheet structure.
Our global research platform enables us to access and use information from local and global perspectives, generating unique insights. The fund comprises some of the highest-conviction ideas from our research platform, as well as the insights of our global sector and regional equity portfolios. We expect these businesses to compound value faster than the overall market and outperform over time, focusing on opportunities where our fundamental views differ from market expectations.
We assess valuations relative to other local market opportunities, seeking high-growth companies with attractive valuations relative to their long-term intrinsic value.
Systematic and integrated risk management are hallmarks of our investment process.

Portfolio Construction

The portfolio may contain investments in the securities of companies outside of the ASX200 including certain New Zealand and ASX dual listed companies.
Typically 30-50 holdings, ranging across all market capitalization segments
Individual positions range from +/- 5% relative to benchmark
Expected Tracking Error: typically 3.0 to 6.0% over rolling three-year period
Cash target range: Cash Reserves are typically less than 5% but will not exceed 10% of the Fund's total market value
Turnover range: 30 – 50% per annum

Performance - Net of Fees

Annualised Performance

Calculated:

	1 YR	3 YR Annualised	5 YR Annualised	Since Inception Annualised	Since Manager Inception Annualised
Fund %	-5.00%	5.64%	9.94%	9.49%	9.49%
Benchmark %	-3.11%	7.00%	10.03%	9.30%	9.30%
Excess Return %	-1.89%	-1.36%	-0.09%	0.19%	0.19%

	1 YR	3 YR Annualised	5 YR Annualised	Since Inception Annualised
Fund %	-0.82%	5.35%	8.47%	9.50%
Benchmark %	1.40%	6.73%	8.73%	9.36%
Excess Return %	-2.22%	-1.38%	-0.26%	0.14%

Recent Performance

	Month to DateData as of 04-Mar-2021	Quarter to DateData as of 04-Mar-2021	Year to DateData as of 04-Mar-2021	1 MonthData as of 31-Jan-2021	3 MonthsData as of 31-Jan-2021
Fund %	0.67%	3.47%	3.47%	0.73%	10.64%
Benchmark %	1.89%	3.69%	3.69%	0.31%	11.89%
Excess Return %	-1.22%	-0.22%	-0.22%	0.42%	-1.25%

Past performance is not a reliable indicator of future performance.

Source for performance: T Rowe Price. Net of fees performance is based on end of month redemption prices after the deduction of fees and expenses and the reinvestment of all distributions. Figures include changes in principal value. Investment return and principal value will vary, and an account may be worth more or less at termination than at inception.

Daily performance (MTD, QTD, and YTD) data is based on the latest available NAV minus one business day.

Returns for time periods greater than one year are annualised.

31-Jan-2021 - Randal Jenneke, Head of Australian Equities,

The Australian equity market was broadly flat in January, slightly outperforming its developed market peers while underperforming emerging markets. Domestically, coronavirus-related border restrictions imposed on New South Wales by other Australian states were gradually reduced through January, with the outbreak on Sydney’s Northern Beaches contained and zero locally acquired COVID-19 cases in the latter half of January. Globally, the vaccine rollout proceeded, with Israel, the United Arab Emirates and UK making the most progress. Joe Biden was sworn in as the 46th President of the U.S. and a number of high-profile coordinated “short squeezes” by retail investors created some volatility in equity markets in late January. At the portfolio level, performance benefitted from our holdings in names such as Zip Co, IDP Education, and Domain Holdings while notable underperformers included Adbri, Altium, and Star Entertainment. Zip Co released a positive quarterly trading update which continued to highlight the strong tailwinds behind the buy now pay later (BNPL) sector. On the negative side, Altium provided a disappointing trading update, highlighting COVID-19’s impact on its sales performance.

Holdings

Total
Holdings

Largest Holding Bhp 9.47% Was (30-Sep-2020) 8.76%

Other View Full Holdings Quarterly data as of 31-Dec-2020

Top 10 Holdings 49.32% View Top 10 Holdings Monthly data as of 31-Jan-2021

Largest Top Contributor^

Bhp

By 3.03%

% of fund 9.48%

Largest Top Detractor^

CSL

By -1.92%

% of fund 5.94%

Top Purchase

Eagers Automotive (N)

2.30%

Was (30-Sep-2020) 0%

Top Sale

CSL

5.94%

Was (30-Sep-2020) 10.19%

31-Dec-2020 - Randal Jenneke, Head of Australian Equities,

As a result of these shifts, as of the end of December 2020, by far our largest relative sector overweight position was in consumer discretionary.� The portfolio had more modest overweight exposures to communication services and materials.� Our key underweights were in financials, real estate, and energy.

Materials

The portfolio retains a small overweight position in materials.� Over the course of the quarter, we made a number of changes to our holdings, identifying a new opportunity and switching some of our existing positions.� �

We initiated a position in Oz Minerals, a copper and gold producer with assets in Australia and Brazil. The outlook for commodities has improved and remains supportive for earnings upgrades and the share price. The company is increasing production at lower costs, while capital expenditure is stabilizing, both of which are driving higher returns. We also believe that low-risk jurisdictions are providing potential growth opportunities.

�

We also made a number of adjustments within the portfolio's mining holdings.� For example, we continued to reduce our position in Rio Tinto, switching our mining exposure to BHP.� We believe BHP provides exposure to some of the highest quality mining assets in the industry and is our preferred diversified large-cap mining holding. In our view, iron ore prices have likely peaked and so will Rio Tinto's near-term earnings. By contrast, we believe that BHP's earnings profile will be buffered from a cyclical improvement in non-iron ore exposure such as coal, copper, and oil.

Consumer Discretionary

Consumer discretionary is by far the most significant overweight sector position in the portfolio and over the course of the fourth quarter we further raised our exposure, in part to reflect the more positive outlook for the Australian domestic economy. We initiated a position in Eagers Automotive and raised the size of our positions in online retailer Kogan and Star Entertainment.

Car dealer group Eagers Automotive, in our view, has a range of factors that should drive strong earnings growth over the next few years. These include material synergy benefits from its merger with Automotive Holdings Group. We expect the industry to improve materially from the dual effects of supply disruptions and greater demand, which should produce margin expansion. We also expect Eagers Automotive to fare better than smaller competitors that do not enjoy the same scale, which should allow the company to gain market share through the downturn and emerge stronger when new vehicle sales eventually pick up again.
In the case of Star Entertainment, this large casino operator should, in our view, benefit as the economy continues to reopen.�There is also the possibility of further consolidation within the industry, which could lead to significant synergies and create shareholder value.

Utilities

The portfolio moved from the small overweight at the start of the fourth quarter to a modest underweight. This reflects our strategy of reducing the extent of our exposure to defensive growth stocks.

We eliminated our position in APA, an energy infrastructure business developing, owning and operating a portfolio that includes gas transmission pipelines and distribution networks. A prolonged impact of COVID-19 may depress oil and East Coast gas prices for longer, which will delay new energy project investment decisions and adversely impact the growth capital expenditure profile of APA.�

Energy

As the fourth quarter began, we had a modest underweight position in industrials and business services. Over the course of the period, we eliminated our holding in an energy stock where our investment thesis had played out. As a result, the portfolio moved further underweight over the review period.

Earlier this year, Woodside Petroleum's share price suffered amid sharp declines in global oil prices and disruptions to its operations in Western Australia caused by tropical cyclone Damien. We believed that the market would rebalance production and adjust back towards the incentive curve; price weakness provided us with an opportunity to buy the stock anticipating a recovery in the coming months and when these themes played out, we sold out of our position.

Switch From Defensive to Domestic Growth

Beyond the individual sectors above, we made a number of other adjustments to the portfolio, which reflect our strategy of gradually shifting away from defensive names toward companies that stand to benefit from an improvement in the Australian economy.�

For example, we reduced our exposure to the traditionally defensive health care sector, selling plasma specialist CSL and respiratory product specialist Fisher and Paykel. The proceeds of these sales were redeployed into raising the size of existing positions in Domain Holdings and SEEK.� Domain is a real estate technology and services company, with a focus on the Australian property market. SEEK, meanwhile, is a job search website and stands to be an early beneficiary of an improvement in the Australian economy.

Sectors

Total
Sectors

Largest Sector Consumer Discretionary 23.49% Was (31-Dec-2020) 20.59%

Other View complete Sector Diversification

Top Contributor^

Communication Services

Net Contribution 0.71%

Sector

0.01%

Selection 0.70%

Top Detractor^

Financials

Net Contribution -1.48%

Sector

-0.82%

Selection

-0.66%

Largest Overweight

Consumer Discretionary

By15.71%

Fund 23.49%

Benchmark 7.78%

Largest Underweight

Financials

By-8.49%

Fund 19.80%

Benchmark 28.29%

31-Jan-2021 - Randal Jenneke, Head of Australian Equities,

The portfolio is well positioned in cyclical growth, recovery growth, and high-quality stocks that we believe will benefit as economic conditions continue to improve. We have tilted our positioning towards more domestic exposures to reflect the stronger economic performance of the Australian economy. To fund these portfolio changes we have taken profit in defensive growth names and somewhat reduced exposure to companies with offshore earnings. As a result, our main sector overweight exposure is to consumer discretionary and, to a lesser extent, communication services. In contrast, the portfolio’s most significant underweights are in financials, energy, and real estate.

Countries

Total
Countries

Largest Country Australia 93.97% Was (31-Dec-2020) 91.51%

Other View complete Country Diversification

Largest Overweight

New Zealand

By0.90%

Fund 2.03%

Benchmark 1.13%

Largest Underweight

Australia

By-3.39%

Fund 93.97%

Benchmark 97.36%

Team (As of 25-Feb-2021)

Randal S. Jenneke
Portfolio Manager

Randal Jenneke is a portfolio manager and head of Australian equities in the International Equity Division. He is a director of T. Rowe Price Australia, Ltd. He is also a vice president of T. Rowe Price Group, Inc.

Randal’s investment experience began in 1991, and he has been with T. Rowe Price since 2010, beginning in the International Equities Group. Prior to this, Randal was employed by Schroders in the area of investment management.

Randal earned a B.Ec. in accounting and finance from Macquarie University. He also earned a graduate diploma in applied finance and investment from the Securities Institute of Australia.

Fund manager
since
2012
Years at
T. Rowe Price
10
Years investment
experience
29

Fees

APIR	Minimum Initial Investment (AUD)	Minimum Subsequent Investment (AUD)	Buy/Sell Spread	Management Fees
ETL0328AU	$500,000	$100,000	Buy +0.10%/ Sell -0.05%	0.60% pa

Portfolio Characteristics

as of 31-Jan-2021

Characteristic	Fund	Benchmark
Projected Earnings Growth Rate (IBES)	7.2%	6.2%
Price to Earnings (Current Fiscal Year)	27.4x	20.4x
Return on Equity (Current Fiscal Year)	10.4%	10.4%
Price to Book	4.1x	2.8x
Investment Weighted Median Market Cap (AUD mm)	19,833	38,524
Investment Weighted Average Market Cap (AUD mm)	53,824	62,106
Number of Issuers	36	200
Top 20 Holdings as % of Total	77.9%	59.5%
Portfolio Holdings Turnover (12 Months)	101.3%	N/A
Percent of Portfolio in Cash	1.0%	0.0%
Active Share Percentage	56.55%	N/A

Statistics are Investment Weighted Median unless otherwise noted. Based on the fund's underlying holdings and is not a projection of future fund performance. Actual results may vary.

Risks

The following risks are materially relevant. See “Risks of managed investment schemes” section in the Product Disclosure Statement (PDS) for more information:

Active management
Concentration
Currency
Derivatives
Fund risk
General risks
Individual investment
Interest rate
Legal and regulatory
Liquidity
Market
Repatriation
Underlying strength of the cash flows

This Fund has been assigned a "moderate risk" designation based on its exposure to a diversified portfolio of Australian equities.

Risk/Return Characteristics

as of 31-Jan-2021

Risk/Return (5 Years)	Fund	Benchmark
Alpha	0.17%	0.00%
Beta	0.98	1.00
R-Squared	0.98	1.00
Annualized Std. Deviation	14.85%	14.61%
Information Ratio	-0.03	0.00
Sharpe Ratio	0.70	0.71
Tracking Error	3.12%	0.00%

Past performance is not a reliable indicator of future performance.

Statistics based on monthly net returns.

Calendar Year Performance

2012^	2013	2014	2015	2016	2017	2018	2019	2020
11.83%	25.28%	-1.10%	5.67%	12.38%	14.29%	-6.28%	25.78%	-0.82%	Fund
9.92%	20.20%	5.61%	2.56%	11.80%	11.80%	-2.84%	23.40%	1.40%	Benchmark
1.91%	5.08%	-6.71%	3.11%	0.58%	2.49%	-3.44%	2.38%	-2.22%	Value added

Fund
Benchmark

Past performance is not a reliable indicator of future performance.

Source for performance: T. Rowe Price. Net of fees performance is based on end of month redemption prices after the deduction of fees and expenses and the reinvestment of all distributions. Figures include changes in principal value. Investment return and principal value will vary, and an account may be worth more or less at termination than at inception.

Purchases - 10 Largest (31-Dec-2020)

Quarterly as of:

Major Purchases	% of Fund	Previous Quarter Change	Industry	Country
Eagers Automotive (N)	2.30%	2.30%	Specialty Retail	Australia
OZ Minerals (N)	2.61%	2.61%	Metals & Mining	Australia
Domain Holdings Australia	2.81%	1.99%	Interactive Media & Services	Australia
SEEK	2.98%	1.97%	Interactive Media & Services	Australia
Macquarie Group	5.36%	1.00%	Capital Markets	Australia
Transurban	4.02%	0.45%	Transportation Infrastructure	Australia
Bhp	9.48%	0.72%	Metals & Mining	Australia
Fisher & Paykel Healthcare	0.86%	-0.44%	Health Care Equipment & Supplies	New Zealand
Aristocrat Leisure	3.29%	-1.09%	Hotels Restaurants & Leisure	Australia
CSL	5.94%	-4.25%	Biotechnology	Australia

(N) New Position.

31-Dec-2020 - Randal Jenneke, Head of Australian Equities,

We initiated a position in Oz Minerals, a copper and gold producer with assets in Australia and Brazil. The outlook for commodities has improved and remains supportive for earnings upgrades and the share price. The company is increasing production at lower costs, while capital expenditure is stabilizing, both of which are driving higher returns. We also believe that low-risk jurisdictions are providing potential growth opportunities.
Car dealer group Eagers Automotive, in our view, has a range of factors that should drive strong earnings growth over the next few years. These include material synergy benefits from its merger with Automotive Holdings Group. We expect the industry to improve materially from the dual effects of supply disruptions and greater demand, which should produce margin expansion. We also expect Eagers Automotive to fare better than smaller competitors that do not enjoy the same scale, which should allow the company to gain market share through the downturn and emerge stronger when new vehicle sales eventually pick up again.
In the case of Star Entertainment, this large casino operator should, in our view, benefit as the economy continues to reopen.�There is also the possibility of further consolidation within the industry, which could lead to significant synergies and create shareholder value.
We eliminated our position in APA, an energy infrastructure business developing, owning and operating a portfolio that includes gas transmission pipelines and distribution networks. A prolonged impact of COVID-19 may depress oil and East Coast gas prices for longer, which will delay new energy project investment decisions and adversely impact the growth capital expenditure profile of APA.�
Earlier this year, Woodside Petroleum's share price suffered amid sharp declines in global oil prices and disruptions to its operations in Western Australia caused by tropical cyclone Damien. We believed that the market would rebalance production and adjust back towards the incentive curve; price weakness provided us with an opportunity to buy the stock anticipating a recovery in the coming months and when these themes played out, we sold out of our position.
For example, we reduced our exposure to the traditionally defensive health care sector, selling plasma specialist CSL and respiratory product specialist Fisher and Paykel. The proceeds of these sales were redeployed into raising the size of existing positions in Domain Holdings and SEEK.� Domain is a real estate technology and services company, with a focus on the Australian property market. SEEK, meanwhile, is a job search website and stands to be an early beneficiary of an improvement in the Australian economy.

Sales - 10 Largest (31-Dec-2020)

Major Sales	% of Fund	Previous Quarter Change	Industry	Country
CSL	5.94%	-4.25%	Biotechnology	Australia
Rio Tinto	1.82%	-2.22%	Metals & Mining	Australia
APA (E)	0.00%	-2.35%	Gas Utilities	Australia
Amcor	1.71%	-2.18%	Containers & Packaging	United Kingdom
Woodside Petroleum (E)	0.00%	-1.97%	Oil, Gas & Consumable Fuels	Australia
Fisher & Paykel Healthcare	0.86%	-0.44%	Health Care Equipment & Supplies	New Zealand
Aristocrat Leisure	3.29%	-1.09%	Hotels Restaurants & Leisure	Australia
Treasury Wine Estates	0.82%	-0.98%	Beverages	Australia
Woolworths	3.86%	-0.66%	Food & Staples Retailing	Australia
IDP Education	2.64%	-0.56%	Diversified Consumer Services	Australia

(E) Eliminated.

Major Purchases/Sales represent the highest to lowest total cost (purchases) and proceeds (sales) for the time period indicated.

The information shown does not reflect any ETFs that may be held in the portfolio.

Contributors (31-Dec-2020)

Quarterly as of:

Contributors	% of Fund	Industry	Country
Bhp	9.48%	Metals & Mining	Australia
National Australia Bank	6.44%	Banks	Australia
SEEK	2.98%	Interactive Media & Services	Australia
Macquarie Group	5.36%	Capital Markets	Australia
Rio Tinto	1.82%	Metals & Mining	Australia

31-Dec-2020 - Randal Jenneke, Head of Australian Equities,

Australian bank shares performed strongly in the fourth quarter on a combination of global and domestic factors. On the former, the Pfizer vaccine announcement supported a rotation to value and expectations of a steeper yield curve, which would be beneficial for the banks. On the latter, the Australian banking regulator proposed relaxing responsible lending rules in order to increase the flow of credit to households and businesses. As a result, the portfolio's underweight positions in Commonwealth Bank of Australia, Australia and New Zealand Bank, and Westpac all detracted from relative performance. Despite this, we remain underweight banks as we believe they face a number of sector-wide as well as bank-specific headwinds.
In the case of Westpac, for example, our lack of exposure reflected our concerns about management uncertainty, cost inflation and what we believe to be an inferior customer proposition. However, we also acknowledge many of these concerns have been priced in and given its underperformance versus peers it may present an opportunity in the sector.
The position in QBE Insurance also hindered returns. The property and casualty insurer's quarterly results, released in December, disappointed the market with weaker-than-expected earnings guidance for fiscal 2020 despite a rise in premium income, and a write-down of intangible assets.� We retain our view that QBE provides the portfolio with good exposure to both inflation in insurance premiums and an upturn in the insurance cycle.
Kogan's underperformance was due to a combination of market style rotation (from growth stocks toward value names) as well as growth deceleration. The online retailer's latest results showed that while topline growth is still very strong, it is moderating on a year-on-year basis. �Nevertheless, we remain positive on the company and see years of structural growth to come, driven by higher e-commerce penetration, as Kogan will likely be a significant beneficiary of the ongoing secular shift to online retail.
In the case of IDP Education, the stock underperformed in part due to concerns over increasing coronavirus-related restrictions and lockdowns in the UK, which may disrupt international students studying in this market for the upcoming university semester. This is likely to largely be a short-term issue that we believe will dissipate over the course of 2021 as vaccines are rolled out. We expect international student flows to return to previous levels over the next few years and to benefit from longer-term structural growth in the future.
Altium provides design software for printed circuit boards and recently reiterated its guidance for FY21. However, investors were concerned by management's warning that the macroeconomic environment remains "challenging" and by signs that adoption of the company's cloud-based collaboration tool appears to have decelerated.
Megaport helps enterprises located in data centres that do not have the cloud to connect to other data centres with the cloud. Its shares fell after the company posted a slightly disappointing profit result. Megaport has been a very strong performer over the past year, and market expectations had correspondingly increased over time. We believe the business remains well positioned to continue its strong growth.�
Online website operator SEEK performed well on evidence that the jobs market continues to recovery, with job ads at the end of October 2020 up to 90% of their pre-pandemic levels.�
oOh!Media is also a COVID-19 recovery beneficiary. The latest update from the out-of-home advertising and media company showed that revenues are continuing to recover from their second-quarter lows, driven by improving advertising spending and consumer confidence.
In the case of Oz Minerals, investors were also encouraged by the release of a pre-feasibility study of the miner's nickel-copper project in Western Australia that showed a larger ore reserve than previously declared as well as a higher throughput rate.
Our lack of exposure to Newcrest Mining was also beneficial as its shares fell sharply on the back of a more negative outlook for the gold price, which tends to decline as investor risk appetite increases.

Detractors (31-Dec-2020)

Detractors	% of Fund	Industry	Country
a2 Milk	1.20%	Food Products	New Zealand
Ramsay Health Care	2.30%	Health Care Providers & Services	Australia
Transurban	4.02%	Transportation Infrastructure	Australia
Kogan.com	2.74%	Internet & Direct Marketing Retail	Australia
Megaport	0.87%	IT Services	Australia

The information shown does not reflect any ETFs that may be held in the portfolio.

N/A indicates Not Available.

Holdings (31-Dec-2020)

Quarterly as of:

Company	% of Fund	Previous Qtr Change	Value (AUD)	Shares	Sector	Industry	Country
Bhp	9.47%	0.72	$9,339,946.18	220,126	Materials	Metals & Mining	Australia
National Australia Bank	6.44%	0.36	$6,352,136.80	281,068	Financials	Banks	Australia
CSL	5.94%	-4.25	$5,855,879.22	20,679	Health Care	Biotechnology	Australia
Macquarie Group	5.36%	1.00	$5,283,565.92	38,154	Financials	Capital Markets	Australia
James Hardie Industries	4.31%	0.17	$4,249,949.34	111,197	Materials	Construction Materials	Australia
Wesfarmers	4.19%	0.11	$4,128,516.00	81,915	Consumer Discretionary	Multiline Retail	Australia
Transurban	4.02%	0.45	$3,961,618.56	290,016	Industrials & Business Services	Transportation Infrastructure	Australia
Woolworths	3.86%	-0.66	$3,806,269.37	96,827	Consumer Staples	Food & Staples Retailing	Australia
Aristocrat Leisure	3.29%	-1.08	$3,245,979.00	104,709	Consumer Discretionary	Hotels Restaurants & Leisure	Australia
Scentre	2.99%	1.10	$2,949,415.98	1,060,941	Real Estate	Equity Real Estate Investment Trusts (REITs)	Australia
SEEK	2.98%	1.98	$2,939,759.73	103,041	Communication Services	Interactive Media & Services	Australia
QBE Insurance	2.91%	-0.32	$2,863,887.79	335,743	Financials	Insurance	Australia
Dominos Pizza Enterprises	2.84%	-0.01	$2,797,943.72	32,279	Consumer Discretionary	Hotels Restaurants & Leisure	Australia
Domain Holdings Australia	2.81%	1.98	$2,766,338.39	616,111	Communication Services	Interactive Media & Services	Australia
Kogan.com	2.74%	0.53	$2,705,657.00	142,403	Consumer Discretionary	Internet & Direct Marketing Retail	Australia
IDP Education	2.64%	-0.56	$2,603,942.85	131,181	Consumer Discretionary	Diversified Consumer Services	Australia
OZ Minerals	2.61%	N/A	$2,573,513.92	136,309	Materials	Metals & Mining	Australia
Star Entertainment	2.58%	0.93	$2,545,735.68	691,776	Consumer Discretionary	Hotels Restaurants & Leisure	Australia
Eagers Automotive	2.30%	N/A	$2,270,277.54	170,826	Consumer Discretionary	Specialty Retail	Australia
Ramsay Health Care	2.30%	-0.39	$2,267,331.52	36,464	Health Care	Health Care Providers & Services	Australia
ALS Queensland	2.20%	0.28	$2,172,686.46	226,086	Industrials & Business Services	Professional Services	Australia
Rio Tinto	1.82%	-2.21	$1,798,400.17	15,799	Materials	Metals & Mining	Australia
Amcor	1.71%	-2.18	$1,680,957.20	109,580	Materials	Containers & Packaging	United Kingdom
Commonwealth Bank of Australia	1.69%	0.25	$1,661,577.96	20,236	Financials	Banks	Australia
Xero	1.60%	-0.07	$1,579,930.02	10,761	Information Technology	Software	Australia
Adbri	1.47%	0.32	$1,451,166.40	433,184	Materials	Construction Materials	Australia
ResMed	1.36%	0.06	$1,345,434.30	49,410	Health Care	Health Care Equipment & Supplies	United States
Altium	1.22%	-0.66	$1,200,050.94	35,306	Information Technology	Software	Australia
a2 Milk	1.20%	-0.28	$1,178,892.00	102,960	Consumer Staples	Food Products	New Zealand
Steadfast	0.93%	0.08	$914,328.45	229,155	Financials	Insurance	Australia
Megaport	0.87%	-0.24	$858,149.25	60,221	Information Technology	IT Services	Australia
Fisher & Paykel Healthcare	0.86%	-0.43	$852,363.00	27,540	Health Care	Health Care Equipment & Supplies	New Zealand
Treasury Wine Estates	0.82%	-0.99	$806,745.60	85,824	Consumer Staples	Beverages	Australia
zipMoney	0.81%	N/A	$793,716.89	150,041	Financials	Consumer Finance	Australia
oOh media	0.78%	0.13	$772,090.90	465,115	Communication Services	Media	Australia
Nuix	0.70%	N/A	$689,419.50	83,566	Information Technology	Software	Australia

N/A indicates Not Available.

Numbers may not add due to rounding and/or the exclusion of reserves and other assets.

Sector Diversification (31-Jan-2021)

Monthly as of:

Sector Diversification	% of Fund	% of Benchmark
Consumer Discretionary	23.49%	7.78%
Communication Services	7.24%	4.08%
Materials	20.56%	20.03%
Information Technology	4.25%	4.46%
Industrials & Business Services	6.80%	7.04%
Consumer Staples	5.11%	6.04%
Utilities	0.00%	1.39%
Health Care	8.78%	10.44%
Real Estate	2.93%	6.67%
Energy	0.00%	3.78%
Financials	19.80%	28.29%

Numbers may not add due to rounding and/or the exclusion of reserves and other assets.

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 updates to GICS for prospective reporting.

Sector Attribution - Top and Bottom Five by Total Value Added (31-Dec-2020)

Data as of:

Sector	Total Value Added %	Value from SectorWeight %	Value from Stock Selection %
Communication Services	0.71%	0.01%	0.70%
Materials	0.44%	0.00%	0.44%
Utilities	0.30%	0.23%	0.07%
Real Estate	0.22%	0.00%	0.22%
Industrials & Business Services	-0.17%	0.13%	-0.30%
Energy	-0.40%	-0.39%	-0.01%
Consumer Staples	-0.44%	-0.05%	-0.39%
Health Care	-0.46%	-0.46%	0.00%
Consumer Discretionary	-0.90%	-0.27%	-0.63%
Financials	-1.48%	-0.82%	-0.66%
Total	-2.87%	-1.93%	-0.94%

Numbers may not add due to rounding and/or the exclusion of reserves and other assets.

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 to Australian dollars 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 2019 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.

Benchmark returns are shown with gross dividends reinvested.

31-Dec-2020 - Randal Jenneke, Head of Australian Equities,

Materials

We initiated a position in Oz Minerals, a copper and gold producer with assets in Australia and Brazil. The outlook for commodities has improved and remains supportive for earnings upgrades and the share price. The company is increasing production at lower costs, while capital expenditure is stabilizing, both of which are driving higher returns. We also believe that low-risk jurisdictions are providing potential growth opportunities.

�

Consumer Discretionary

Car dealer group Eagers Automotive, in our view, has a range of factors that should drive strong earnings growth over the next few years. These include material synergy benefits from its merger with Automotive Holdings Group. We expect the industry to improve materially from the dual effects of supply disruptions and greater demand, which should produce margin expansion. We also expect Eagers Automotive to fare better than smaller competitors that do not enjoy the same scale, which should allow the company to gain market share through the downturn and emerge stronger when new vehicle sales eventually pick up again.
In the case of Star Entertainment, this large casino operator should, in our view, benefit as the economy continues to reopen.�There is also the possibility of further consolidation within the industry, which could lead to significant synergies and create shareholder value.

Utilities

The portfolio moved from the small overweight at the start of the fourth quarter to a modest underweight. This reflects our strategy of reducing the extent of our exposure to defensive growth stocks.

We eliminated our position in APA, an energy infrastructure business developing, owning and operating a portfolio that includes gas transmission pipelines and distribution networks. A prolonged impact of COVID-19 may depress oil and East Coast gas prices for longer, which will delay new energy project investment decisions and adversely impact the growth capital expenditure profile of APA.�

Energy

Earlier this year, Woodside Petroleum's share price suffered amid sharp declines in global oil prices and disruptions to its operations in Western Australia caused by tropical cyclone Damien. We believed that the market would rebalance production and adjust back towards the incentive curve; price weakness provided us with an opportunity to buy the stock anticipating a recovery in the coming months and when these themes played out, we sold out of our position.

Switch From Defensive to Domestic Growth

For example, we reduced our exposure to the traditionally defensive health care sector, selling plasma specialist CSL and respiratory product specialist Fisher and Paykel. The proceeds of these sales were redeployed into raising the size of existing positions in Domain Holdings and SEEK.� Domain is a real estate technology and services company, with a focus on the Australian property market. SEEK, meanwhile, is a job search website and stands to be an early beneficiary of an improvement in the Australian economy.

Country Diversification (31-Jan-2021)

Monthly as of:

Country Diversification	% of Fund	% of Benchmark
New Zealand	2.03%	1.13%
United States	1.37%	0.57%
United Kingdom	1.60%	0.88%
France	0.00%	0.06%
Australia	93.97%	97.36%

Numbers may not add due to rounding and/or the exclusion of reserves and other assets.

Benchmark Data Source: Standard & Poor's. Benchmark returns are shown with gross dividends reinvested.

Daily performance (MTD, QTD, and YTD) data is based on the latest available NAV minus one business day.

If investing directly with T. Rowe Price. There is no minimum investment amount for those investing via an investor director platform service (IDPS).

Net Asset figure applies to all share classes.

Number of years managing the fund. In the case of co-portfolio management, the longer tenure is displayed.

The specific securities identified and described in this report do not represent all of the securities purchased or sold for this fund. This information is not intended to be a recommendation to take any particular investment action and is subject to change. No assumption should be made that the securities identified were or will be profitable.

The Management Fee for the T. Rowe Price Australian Equity Fund is 0.60% p.a. and the Indirect Cost is 0.00% p.a. Indirect costs are calculated and incorporate estimated amounts with reference to the relevant costs incurred during the previous financial year ended 30 June. Please refer to the Product Disclosure Statement for the Fund which is available on this page for further details.

Unless otherwise specified, all fund ratings, awards and data are as of the last previous quarter and sourced from T. Rowe Price.

Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298 AFSL 240975) is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Stock Exchange (ASX:EQT). Equity Trustees and T. Rowe Price Australia Limited ("TRPAU") (ABN: 13 620 668 895 and AFSL: 503741) are, respectively, the responsible entity and investment manager of the T. Rowe Price Australian Unit Trusts.

For Wholesale Clients only.

Past performance is not a reliable indicator of future performance. The price of any fund may go up or down. Investment involves risk including a possible loss to the principal amount invested. For general information purposes only, does not take into account the investment objectives, financial situation or needs of any particular investor. For further details, please refer to each fund's product disclosure statement and reference guide which are available from Equity Trustees www.eqt.com.au/insto or TRPAU www.troweprice.com.au.

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.

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3YR Return Annualised (Net) (View Total Returns)

Total Assets (AUD)

1YR Return (Net) (View Total Returns)

Manager Tenure

Information Ratio (5 Years)

Tracking Error (5 Years)

Other Literature

Strategy

Investment Objective

Investment Approach

Portfolio Construction

Performance - Net of Fees

Annualised Performance

Recent Performance

Holdings

TotalHoldings

Largest Top Contributor^

Bhp

Largest Top Detractor^

CSL

Top Purchase

Eagers Automotive (N)

Top Sale

CSL

Materials

Consumer Discretionary

Utilities

Energy

Switch From Defensive to Domestic Growth

Sectors

TotalSectors

Top Contributor^

Communication Services

Top Detractor^

Financials

Largest Overweight

Consumer Discretionary

Largest Underweight

Financials

Countries

TotalCountries

Largest Overweight

New Zealand

Largest Underweight

Australia

Team (As of 25-Feb-2021)

Randal S. JennekePortfolio Manager

Fees

Portfolio Characteristics

Risks

Risk/Return Characteristics

Calendar Year Performance

Monthly Performance

Purchases - 10 Largest (31-Dec-2020)

Sales - 10 Largest (31-Dec-2020)

Contributors (31-Dec-2020)

Detractors (31-Dec-2020)

Holdings (31-Dec-2020)

Sector Diversification (31-Jan-2021)

Sector Attribution - Top and Bottom Five by Total Value Added (31-Dec-2020)

Materials

Consumer Discretionary

Utilities

Energy

Switch From Defensive to Domestic Growth

Country Diversification (31-Jan-2021)

GIPS^® Information

3YR Return Annualised (Net)
(View Total Returns)

Total Assets
(AUD)

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

Tracking Error
(5 Years)

Total
Holdings

Total
Sectors

Total
Countries

Randal S. Jenneke
Portfolio Manager