I | T. Rowe Price

Strategy

Manager's Outlook

European markets are likely to be more volatile in 2019 than last year, given the removal of economic stimulus, slowing growth, and geopolitical risks. Economic fundamentals generally may be deteriorating, and the outlook has become cloudier.

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Apart from the slowing economy, investor concerns also embrace specific countries, such as China and Mexico; worsening trade relations between the world's three largest blocs, which are affecting the automotive, technology, mining, and banking industries in particular; Italy's strained relationship with the European Union; and the tortuous Brexit process.

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Doubts On Earnings Growth

The first-quarter corporate results season cemented expectations of modest earnings growth over the next 12 months, although whether this can be sustained given the gloomier outlook is now open to question. We are still finding a wider range of investments, even though valuations are near their historical averages after the market rally at the start of the year.

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We welcome the more volatile market and greater dispersion of returns because this gives us more relative opportunities to exploit. For example, certain industries-such as semiconductors and automotives-have been especially penalized by investors, and selective investments are emerging there. However, we would caution against expecting a rapid recovery in their fortunes in general.

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We continue, however, to seek a broad spread of exposures, so that even if a more positive economic scenario unfolds, then the portfolio should display a good degree of resilience.

Investment Objective

To increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a diversified portfolio of stocks of European companies.

Investment Approach

Fundamental research is critical to successfully identify and assess long-term investment opportunities. We look for companies with high returns on capital and capable of providing sustainable earnings across the market cycle.
Style agnostic, focus on quality. By avoiding style constraints, we can invest in quality companies and maintain a balanced portfolio through market cycles.
Disciplined approach to valuation. We aim to buy businesses at a clear discount to their intrinsic value.
Risk management is essential and is assisted by diversification, quantitative analysis, and automatic stabilizers built into our investment process.

Portfolio Construction

Typically 50-80 stocks
Individual position size up to 4.0% relative to the indicative benchmark
Sector ranges: typically +/- 10% relative to the indicative benchmark
Country ranges: typically +/- 10% relative to the indicative benchmark
Expected Tracking Error: typically 3.0% to 6.0%
Information Ratio objective: >0.5
Cash target range: fully invested, typically less than 5.0%
Turnover range: 40%-100%

Performance (Class I)

Annualised Performance

Calculated:

	1 YR	3 YR Annualised	5 YR Annualised	10 YR Annualised	Since Manager Inception Annualised
Fund %	8.20%	7.83%	6.22%	9.40%	10.63%
Indicative Benchmark %	5.74%	7.65%	5.44%	7.73%	9.11%
Excess Return %	2.46%	0.18%	0.78%	1.67%	1.52%

	1 YR	3 YR Annualised	5 YR Annualised	10 YR Annualised
Fund %	8.20%	7.83%	6.22%	9.40%
Indicative Benchmark %	5.74%	7.65%	5.44%	7.73%
Excess Return %	2.46%	0.18%	0.78%	1.67%

Recent Performance

	Month to DateData as of 07-Oct-2019	Quarter to DateData as of 07-Oct-2019	Year to DateData as of 07-Oct-2019	1 MonthData as of 30-Sep-2019	3 MonthsData as of 30-Sep-2019
Fund %	-2.30%	-2.30%	18.97%	2.93%	2.93%
Indicative Benchmark %	-2.59%	-2.59%	16.15%	3.76%	2.57%
Excess Return %	0.29%	0.29%	2.82%	-0.83%	0.36%

Past performance is not a reliable indicator of future performance. Source for fund 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.

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

Returns shown with reinvestment of dividends after the deduction of withholding taxes.

Effective 1 July 2018, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly.

31-Aug-2019 - Dean Tenerelli, Portfolio Manager,

European equities weakened in August in volatile trade as fears the global economy was heading for recession intensified due to an escalation in trade tensions between the U.S. and China. Political instability in Italy and a hardening in the UK government’s Brexit stance added to the uncertainty. In the fund, consumer discretionary, industrials and business services, and communication services performed best in relative terms due to positive stock picking. However, our underweight in consumer staples, which exceeded positive stock selection here, was the main curb on returns. Health care, the next worst performer, was undermined by our choice of securities. EssilorLuxottica, the world’s leading eyewear company, outperformed in the consumer discretionary sector after decent first-half results, which showed an acceleration of sales growth and stronger-than-expected cash flow generation, and confirmation of 2019 guidance. Investors also expect hefty synergies from the integration of Grandvision, a rival whose purchase was confirmed at the end of July. Within health care, our off-benchmark holding in Getinge, a Swedish medical technology company with product areas including surgery, intensive care, infection control and patient handling, underperformed modestly amid profit-taking after the strong run in the shares this year. We believe management is turning the company around successfully and that Getinge is on the brink of demonstrating its true potential.

Holdings

Total
Holdings

Largest Holding Nestle 4.53% Was (31-Mar-2019) 4.35%

Other View Full Holdings Quarterly data as of 30-Sep-2019

Top 10 Holdings 29.53% View Top 10 Holdings Monthly data as of 31-Aug-2019

Largest Top Contributor^

Nestle

By 1.64%

% of fund 4.52%

Largest Top Detractor^

Eni

By -0.56%

% of fund 2.28%

Top Purchase

EssilorLuxottica (N)

2.09%

Was (31-Mar-2019) 0.00%

Top Sale

Greene King (E)

0.00%

Was (31-Mar-2019) 1.91%

31-Dec-2018 - Dean Tenerelli, Portfolio Manager,

Attractively Valued Stocks Emerged as Market Retrenched

Attractive opportunities have emerged in the equity market retrenchment at the end of 2018. These conditions suit our investment approach as they allow us to buy strong high-quality businesses and to diversify the portfolio. We increased our positions most in defensive sectors, such as utilities and real estate, and reduced them in the more cyclical sectors. However, the decline in cyclicals did not deter us from assessing high-quality opportunities with durable earnings that emerged there. On balance, we are tending to find more attractive opportunities in companies that have a more defensive profile or where we believe the market misunderstands the fundamental outlook and unfairly penalizes the company. At the same time, we continue to seek a relatively balanced portfolio in terms of exposures to possible economic scenarios, so that our relative performance is not dependent on a particular "macro" environment.

We altered our positioning by:

Raising our exposure to utilities, now our largest overweight, initiating in Iberdrola
Moving to an overweight in real estate, adding Great Portland Estates
Reducing our underweight in materials, investing in Koningklijke DSM
Slimming our overweight in industrials and business services

Raised Exposure to Utilities, Now Biggest Overweight

We increased our exposure to utilities, which is now our biggest overweight. We are overweight in the gas and multi-utilities industries, where we hold Italian names Italgas, a natural gas distribution company, and Hera, a public utility company. We also hold Red Electrica, a partly state-owned and public limited Spanish corporation that operates Spain's national electricity grid.

We initiated an investment in Iberdrola, a Spain-based integrated utility company, taking advantage of weakness in the share price, which is driven by regulatory uncertainty. The company is attractively valued, provides a steady income stream, and should benefit over the longer term from its position in the decarbonized renewables and electricity transmission markets. It also has a potential pipeline of new assets extending beyond 2025.

Moved to Overweight in Real Estate

As we seek to maintain a balanced portfolio to counter the impact of market volatility, we raised our exposure to the real estate sector by adding UK office developer Great Portland Estates (GPOR). Our other investment is in Aedas Homes, a Spanish house builder with a large land bank.

We believe GPOR, which operates in central London, is undervalued by the market. The management team has an excellent track record, the balance sheet is strong, and the values of its office assets are being underestimated. We believe there is a high probability that GPOR will return capital to shareholders after a successful disposals program.

Reduced Underweight in Materials

We increased our allocation to materials, a sector that we have not favored largely because we did not like the business models of many companies within it. However, when opportunities to own high-quality companies arise, such as in the current market retrenchment, we are happy to invest in them. To this end, we opened a position in Koningklijke DSM, a leading vitamin maker and performance materials business.

We currently own France-based Air Liquide, a large international industrial gas company; Corbion, a Dutch biobased ingredients company operating in the food and biochemical sectors; and Johnson Matthey, a specialty chemicals company that is also the world's biggest auto catalyst maker.

We took advantage of share price weakness to invest in DSM. We believe the business is becoming more stable and focused on growth, thanks to the acquisition-driven transformation program. In our view, improving organic growth, an effective cost and capital efficiency program, and the end of the headwind of falling vitamin E prices should drive a share price recovery and outperformance.

Reduced Overweight in Industrials and Business Services

We reduced our overweight industrials and business services amid signs that the European economy is losing momentum, a less favorable environment for this cyclical sector.

We continued to adjust the composition of our holdings, taking advantage of the market decline to sell companies that have underperformed and invest in high-quality businesses with strong industry positions and durable earnings that are now more realistically valued.

We sold out of CNH Industrial, one of the world's largest capital good companies; Trelleborg, a Sweden-based engineering company that develops polymer sealing solutions and wheel systems; and Wolters Kluwer, a Dutch print and digital publisher, after a strong run.

In terms of industry, our largest weight is still professional services companies. We own Bureau Veritas, a France-based international certification agency, and Experian, the leading global provider of credit information with operations in 17 countries, and we swapped Wolters Kluwer for RELX, the world's leading publisher of science journals and a provider of risk assessments on transactions with retail customers. Electrical equipment and aerospace and defense are also overweights. In the former, our biggest position is Schneider Electric, a global specialist in energy management and automation. In the latter, we also hold Dassault Aviation, another French company.

We started investing in RELX because we believe the market underestimates the quality and sustainability of growth at the risk business, which provides one of the leading online identity verification tools. It should benefit from the recent acquisition of the ThreatMetrix, one of the leading electronic devices databases. We also believe the risks around the science publishing business are overdone.

We sold our position in CNH Industrial because slowing economic momentum and increasing uncertainty in the agricultural sector about the possible impact of tariffs and trade disruptions could further curb sales growth in the main divisions. We exited Trelleborg as signs of weakening demand and emerging risks in the automotive agricultural and industrials segments could, in our view, weigh further on the share price after a period of underperformance.

Maintained Health Care Overweight; Exited Fresenius

We have retained our overweight allocation to the health care sector amid the market uncertainty, which favors defensive sectors. We sold Fresenius, a provider of health care-related products and services, and sister company Fresenius Medical Care after both companies issued a second surprise profit warning in the space of two months. Neither company now expects net income growth in 2019.

We hold sizable positions in pharmaceuticals, with overweights in two Swiss companies, Roche Holding and Novartis, a manufacturer of health care and nutritional products. We also hold Getinge, an off-benchmark Swedish medical technology company with product areas such as surgery, intensive care, infection control, and patient handling.

Sectors

Total
Sectors

Largest Sector Industrials & Business Services 16.08% Was (31-Aug-2019) 15.78%

Other View complete Sector Diversification

Top Contributor^

Information Technology

Net Contribution 0.30%

Sector

0.06%

Selection 0.23%

Top Detractor^

Health Care

Net Contribution -0.15%

Sector

0.08%

Selection

-0.23%

Largest Overweight

Utilities

By3.79%

Fund 8.25%

Indicative Benchmark 4.47%

Largest Underweight

Consumer Staples

By-9.69%

Fund 5.24%

Indicative Benchmark 14.92%

31-Aug-2019 - Dean Tenerelli, Portfolio Manager,

We raised our allocation to industrial and business services, maintaining a balanced portfolio with the aim of benefitting from any move higher in the index. For example, we added a German engineering conglomerate that is a leader in food processing equipment whose long-term potential, in our view, is not reflected in the share price. We also invested a Swedish engineering company that we believe will perform resiliently in this late stage of the economic cycle. We moved from a broadly neutral position in consumer discretionary to an underweight by exiting Playtech, the online gambling software provider, on disappointing performance.

Countries

Total
Countries

Largest Country United Kingdom 18.30% Was (31-Aug-2019) 17.68%

Other View complete Country Diversification

Top Contributor^

Switzerland

Net Contribution 0.40%

Country

0.07%

Selection 0.33%

Top Detractor^

France

Net Contribution -0.35%

Country

-0.00%

Selection

-0.35%

Largest Overweight

Spain

By5.18%

Fund 9.81%

Indicative Benchmark 4.63%

Largest Underweight

United Kingdom

By-7.58%

Fund 18.30%

Indicative Benchmark 25.88%

30-Sep-2018 - Dean Tenerelli, Portfolio Manager,

The new position in the aforesaid Belgian bank reduced our underweight allocation to the country. Otherwise, our country weights were little changed. Our country positioning is a function of our bottom-up stock picking.

Team (As of 31-Aug-2019)

Dean Tenerelli
Portfolio Manager

Dean Tenerelli is portfolio manager in the Equity Division at T. Rowe Price. He manages the Europe Equity Strategy, a position he has held since October 2005, and is chairman of its Investment Advisory Committee. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Tenerelli has 28 years of investment experience, 19 of which have been at T. Rowe Price. He joined the firm in 2000 as an equity research analyst and was appointed co-manager of the firm's Global Equity Strategy in 2004. Prior to joining T. Rowe Price, Mr. Tenerelli served as a director for Credit Suisse Asset Management, where he was a senior telecommunications analyst. Prior to Credit Suisse Asset Management, Mr. Tenerelli worked as assistant portfolio manager at Artisan Partners (1995-2000). He began his investment career in 1993 at Banesto Bolsa in Madrid as an equity analyst following Spanish equities. Mr. Tenerelli later became an international equity analyst, focused on Europe, for Waddell and Reed in Kansas City, MO. In 1995, he moved to Artisan Partners as an assistant portfolio manager.

A graduate of Rutgers University with a B.A. in economics, Mr. Tenerelli earned an M.B.A. from Escuela Superior de Administracion y Direccion de Empresa and an M.A. in international management from American Graduate School of International Management (Thunderbird).

Fund manager
since
2009
Years at
T. Rowe Price
19
Years investment
experience
28

Andrew Clifton
Portfolio Specialist

Andrew Clifton is a portfolio specialist in the Equity Division at T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Mr. Clifton has over 30 years of investment experience, nine of which have been at T. Rowe Price. Prior to joining the firm in 2010, he was an executive director at UBS Global Asset Management. Prior to that, he was a vice president at Merrill Lynch.

Mr. Clifton earned a B.Sc. in economics from the London School of Economics and an M.Sc. in econometrics from the University of Southampton.

Years at
T. Rowe Price
9
Years investment
experience
30

Fee Schedule

Share Class	Minimum Initial Investment and Holding Amount	Minimum Subsequent Investment	Minimum Redemption Amount	Sales Charge (up to)	Investment Management Fee (up to)	Ongoing Charges
Class A	€15,000	€100	€100	5.00%	150 basis points	1.61%
Class I	€2,500,000	€100,000	€0	0.00%	65 basis points	0.73%
Class Q	€15,000	€100	€100	0.00%	65 basis points	0.78%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.

Portfolio Characteristics

as of 30-Sep-2019

Characteristic	Fund	Indicative Benchmark
Projected Earnings Growth Rate (IBES)	8.1%	8.1%
Price to Earnings (Current Fiscal Year)	16.6x	15.7x
Return on Equity (Current Fiscal Year)	13.0%	14.2%
Price to Book	2.5x	2.4x
Investment Weighted Median Market Cap (EUR mm)	26,731	43,370
Investment Weighted Average Market Cap (EUR mm)	61,779	74,537
Number of Holdings	61	431
Top 20 Holdings as % of Total	48.3%	30.6%
Portfolio Holdings Turnover (12 Months)	53.5%	N/A
Percent of Portfolio in Cash	5.6%	0.0%
Active Share Percentage	N/A	N/A

Statistics are Investment Weighted Median unless otherwise noted.

Risks

The following risks are materially relevant to the fund (refer to prospectus for further details):

Capital risk
Country risk (Russia and Ukraine)
Currency risk
Equity risk
Geographic concentration risk
Hedging risk
Investment fund risk
Management risk
Market risk
Operational risk
Small and mid-cap risk
Style risk

Risk/Return Characteristics

as of 30-Sep-2019

Risk/Return (5 Years)	Fund	Indicative Benchmark
Alpha	0.83%	0.00%
Beta	0.96	1.00
R-Squared	0.91	1.00
Annualized Std. Deviation	12.29%	12.36%
Information Ratio	0.20	0.00
Sharpe Ratio	0.18	0.12
Tracking Error	3.92%	0.00%

Returns shown with reinvestment of dividends after the deduction of withholding taxes.

Calendar Year Performance (Class I)

2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
37.33%	15.59%	-6.81%	20.32%	31.57%	7.55%	12.64%	-7.55%	11.01%	-8.57%	Fund
31.60%	11.10%	-8.08%	17.29%	19.82%	6.84%	8.22%	2.58%	10.24%	-10.57%	Indicative Benchmark
5.73%	4.49%	1.27%	3.03%	11.75%	0.71%	4.42%	-10.13%	0.77%	2.00%	Value added

Fund
Indicative Benchmark
Annual Report

Returns shown with reinvestment of dividends after the deduction of withholding taxes.

Purchases - 10 Largest (30-Jun-2019)

Quarterly as of:

Major Purchases	% of Fund	Previous Quarter Change	Industry	Country
EssilorLuxottica (N)	2.09%	2.09%	Textiles, Apparel & Luxury Goods	France
E.ON (N)	1.17%	1.17%	Multi-Utilities	Germany
Capgemini (N)	1.06%	1.06%	IT Services	France
Grifols (N)	1.07%	1.07%	Biotechnology	Spain
Husqvarna (N)	0.80%	0.80%	Household Durables	Sweden
Wirecard (N)	0.78%	0.78%	IT Services	Germany
Prysmian	1.67%	0.67%	Electrical Equipment	Italy
Getinge	2.10%	0.65%	Health Care Equipment & Supplies	Sweden
Novartis	3.04%	-0.29%	Pharmaceuticals	Switzerland
Zurich Insurance Group	3.03%	0.02%	Insurance	Switzerland

(N) New Position.

31-Dec-2018 - Dean Tenerelli, Portfolio Manager,

Raising our exposure to utilities, now our largest overweight, initiating in Iberdrola
Moving to an overweight in real estate, adding Great Portland Estates
Reducing our underweight in materials, investing in Koningklijke DSM
Slimming our overweight in industrials and business services
We initiated an investment in Iberdrola, a Spain-based integrated utility company, taking advantage of weakness in the share price, which is driven by regulatory uncertainty. The company is attractively valued, provides a steady income stream, and should benefit over the longer term from its position in the decarbonized renewables and electricity transmission markets. It also has a potential pipeline of new assets extending beyond 2025.
We believe GPOR, which operates in central London, is undervalued by the market. The management team has an excellent track record, the balance sheet is strong, and the values of its office assets are being underestimated. We believe there is a high probability that GPOR will return capital to shareholders after a successful disposals program.
We took advantage of share price weakness to invest in DSM. We believe the business is becoming more stable and focused on growth, thanks to the acquisition-driven transformation program. In our view, improving organic growth, an effective cost and capital efficiency program, and the end of the headwind of falling vitamin E prices should drive a share price recovery and outperformance.
We started investing in RELX because we believe the market underestimates the quality and sustainability of growth at the risk business, which provides one of the leading online identity verification tools. It should benefit from the recent acquisition of the ThreatMetrix, one of the leading electronic devices databases. We also believe the risks around the science publishing business are overdone.

We sold our position in CNH Industrial because slowing economic momentum and increasing uncertainty in the agricultural sector about the possible impact of tariffs and trade disruptions could further curb sales growth in the main divisions. We exited Trelleborg as signs of weakening demand and emerging risks in the automotive agricultural and industrials segments could, in our view, weigh further on the share price after a period of underperformance.

Sales - 10 Largest (30-Jun-2019)

Major Sales	% of Fund	Previous Quarter Change	Industry	Country
Greene King (E)	0.00%	-1.91%	Hotels Restaurants & Leisure	United Kingdom
Nestle	4.53%	0.18%	Food Products	Switzerland
British American Tobacco (E)	0.00%	-1.66%	Tobacco	United Kingdom
Schneider Electric	2.17%	-0.41%	Electrical Equipment	France
Roche Holding	3.62%	-0.06%	Pharmaceuticals	Switzerland
Cellnex Telecom	2.88%	0.08%	Diversified Telecommunication Services	Spain
Essity	0.98%	-0.95%	Household Products	Sweden
BNP Paribas	0.87%	-0.92%	Banks	France
Zurich Insurance Group	3.03%	0.02%	Insurance	Switzerland
Plastic Omnium (E)	0.00%	-1.02%	Auto Components	France

(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 (30-Jun-2019)

Quarterly as of:

Contributors	% of Fund	Industry	Country
Cellnex Telecom	2.88%	Diversified Telecommunication Services	Spain
Getinge	2.09%	Health Care Equipment & Supplies	Sweden
Schneider Electric	2.16%	Electrical Equipment	France
Prudential	2.62%	Insurance	United Kingdom
Nestle	4.52%	Food Products	Switzerland
EssilorLuxottica	2.08%	Textiles, Apparel & Luxury Goods	France
Air Liquide	2.48%	Chemicals	France
Allianz	2.06%	Insurance	Germany
Zalando	1.62%	Internet & Direct Marketing Retail	Germany
RELX	1.88%	Professional Services	United Kingdom

31-Dec-2018 - Dean Tenerelli, Portfolio Manager,

Hera, an Italian utility that operates in the waste, water, gas, and electricity segments, and Italgas, the country's largest natural gas distributor, rose at the end of the period after the Italian energy authority released its final regulation for an interim review, which increased the real return for gas distribution. A further review is expected in 2019.
Market consolidation has helped underpin Air Liquide's share price in the second half, as have solid earnings results. Gas sales growth in the third quarter exceeded market expectations, and the company reiterated guidance for a rise in net profit in 2018.
Ahlsell made the strongest positive contribution to relative performance following a cash bid for the company by CVC, the main shareholder.
Off-benchmark Plastic Omnium, a France-based manufacturer of automotive components, fuel tanks and systems, and waste-container solutions for local communities and companies, was our worst performer in the sector. Automotive industry stocks were the victims of swings in sentiment around the trade dispute between the U.S. and China. Steep declines in German and Chinese auto production in the third quarter also hit organic growth, the first negative number since 2009.
JCDecaux fell at the end of the period in the market tumble. Analysts also lowered their ratings on the stock on expectations that contractual changes will take longer to benefit margins. Earnings are now expected to be broadly in line with 2018 due to delays in the awarding of the Paris City Information Panel contract, which JCDecaux is expected to regain, and extension of the loss-making Spanish airports contract rather than a retendering.

Detractors (30-Jun-2019)

Detractors	% of Fund	Industry	Country
Great Portland Estates	1.56%	Equity Real Estate Investment Trusts (REITs)	United Kingdom
Greene King	0.00%	Hotels Restaurants & Leisure	United Kingdom
Eni	2.28%	Oil, Gas & Consumable Fuels	Italy
British American Tobacco	0.00%	Tobacco	United Kingdom
National Grid	1.67%	Multi-Utilities	United Kingdom
Novo Nordisk	1.71%	Pharmaceuticals	Denmark
Aedas Homes SAU	1.01%	Real Estate Management & Development	Spain
Travis Perkins	1.56%	Trading Companies & Distributors	United Kingdom
Reckitt Benckiser	0.92%	Household Products	United Kingdom
Red Electrica	1.21%	Electric Utilities	Spain

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

N/A indicates Not Available.

Holdings (30-Jun-2019)

Quarterly as of:

Company	% of Fund	Previous Qtr Change	Value (EUR)	Shares	Sector	Industry	Country
Nestle	4.53%	0.18	€5,950,988.61	65,499	Consumer Staples	Food Products	Switzerland
Roche Holding	3.61%	-0.07	€4,742,992.91	19,288	Health Care	Pharmaceuticals	Switzerland
Novartis	2.99%	-0.34	€3,919,820.13	48,760	Health Care	Pharmaceuticals	Switzerland
Zurich Insurance Group	2.96%	-0.04	€3,891,663.71	12,764	Financials	Insurance	Switzerland
Cellnex Telecom	2.85%	0.05	€3,744,426.62	114,229	Communication Services	Diversified Telecommunication Services	Spain
Prudential	2.57%	0.05	€3,374,065.30	176,312	Financials	Insurance	United Kingdom
Total	2.52%	-0.14	€3,304,895.15	67,241	Energy	Oil, Gas & Consumable Fuels	France
Air Liquide	2.43%	0.08	€3,187,060.25	25,985	Materials	Chemicals	France
Eni	2.23%	-0.29	€2,930,988.62	201,166	Energy	Oil, Gas & Consumable Fuels	Italy
Schneider Electric	2.13%	-0.45	€2,791,173.70	35,021	Industrials & Business Services	Electrical Equipment	France
EssilorLuxottica	2.05%	N/A	€2,685,254.00	23,452	Consumer Discretionary	Textiles, Apparel & Luxury Goods	France
Getinge	2.04%	0.59	€2,680,131.72	195,331	Health Care	Health Care Equipment & Supplies	Sweden
Allianz	2.01%	0.02	€2,644,734.75	12,579	Financials	Insurance	Germany
RELX	1.85%	0.11	€2,423,417.14	113,846	Industrials & Business Services	Professional Services	United Kingdom
Corbion	1.79%	0.04	€2,352,541.36	81,913	Materials	Chemicals	Netherlands
AstraZeneca	1.75%	-0.07	€2,294,555.96	31,982	Health Care	Pharmaceuticals	United Kingdom
Hera	1.74%	-0.02	€2,283,929.16	680,551	Utilities	Multi-Utilities	Italy
Dassault Aviation	1.72%	-0.18	€2,256,104.00	1,802	Industrials & Business Services	Aerospace & Defense	France
Johnson Matthey	1.71%	-0.05	€2,241,462.19	60,506	Materials	Chemicals	United Kingdom
Novo Nordisk	1.69%	-0.15	€2,212,865.33	49,406	Health Care	Pharmaceuticals	Denmark
National Grid	1.67%	-0.17	€2,187,000.31	234,405	Utilities	Multi-Utilities	United Kingdom
Prysmian	1.65%	0.65	€2,166,003.50	120,100	Industrials & Business Services	Electrical Equipment	Italy
Experian	1.64%	0.08	€2,148,323.21	81,018	Industrials & Business Services	Professional Services	United Kingdom
SEB	1.63%	0.03	€2,146,299.40	13,567	Consumer Discretionary	Household Durables	France
Zalando	1.59%	0.10	€2,087,386.09	53,509	Consumer Discretionary	Internet & Direct Marketing Retail	Germany
Italgas	1.56%	0.04	€2,052,535.84	345,080	Utilities	Gas Utilities	Italy
Travis Perkins	1.55%	-0.24	€2,040,996.35	143,727	Industrials & Business Services	Trading Companies & Distributors	United Kingdom
Great Portland Estates	1.53%	-0.30	€2,012,193.89	263,792	Real Estate	Equity Real Estate Investment Trusts (REITs)	United Kingdom
UBS	1.51%	-0.13	€1,977,197.04	189,403	Financials	Capital Markets	Switzerland
Royal Dutch Shell	1.50%	-0.01	€1,974,804.73	68,549	Energy	Oil, Gas & Consumable Fuels	United Kingdom
Scout24 Holding	1.50%	-0.06	€1,967,219.00	42,215	Communication Services	Interactive Media & Services	Germany
Koninklijke DSM	1.49%	0.09	€1,950,426.40	17,968	Materials	Chemicals	Netherlands
Thales	1.40%	-0.06	€1,841,970.15	17,079	Industrials & Business Services	Aerospace & Defense	France
JCDecaux	1.39%	-0.10	€1,826,159.36	68,756	Communication Services	Media	France
Daimler	1.35%	-0.13	€1,775,601.26	36,389	Consumer Discretionary	Automobiles	Germany
Acerinox	1.30%	-0.04	€1,711,635.40	193,975	Materials	Metals & Mining	Spain
Erste Group Bank	1.24%	-0.03	€1,628,853.66	50,134	Financials	Banks	Austria
Red Electrica	1.22%	-0.08	€1,605,633.59	87,429	Utilities	Electric Utilities	Spain
GlaxoSmithKline	1.21%	-0.10	€1,586,509.07	90,159	Health Care	Pharmaceuticals	United Kingdom
E.ON	1.18%	N/A	€1,545,197.94	162,396	Utilities	Multi-Utilities	Germany
Koninklijke Vopak	1.13%	-0.08	€1,487,133.92	36,656	Energy	Oil, Gas & Consumable Fuels	Netherlands
ASML Holding	1.09%	0.08	€1,436,965.68	7,836	Information Technology	Semiconductors & Semiconductor Equipment	Netherlands
Capgemini	1.06%	N/A	€1,386,989.15	12,569	Information Technology	IT Services	France
Grifols	1.04%	N/A	€1,371,083.52	53,184	Health Care	Biotechnology	Spain
Epiroc	1.03%	-0.01	€1,355,486.68	148,133	Industrials & Business Services	Machinery	Sweden
Aedas Homes SAU	1.01%	-0.13	€1,332,294.15	63,899	Real Estate	Real Estate Management & Development	Spain
Playtech	0.97%	-0.07	€1,277,577.20	267,774	Consumer Discretionary	Hotels Restaurants & Leisure	United Kingdom
Essity	0.96%	-0.97	€1,258,931.13	46,681	Consumer Staples	Household Products	Sweden
Konecranes	0.96%	-0.46	€1,258,374.00	37,960	Industrials & Business Services	Machinery	Finland
Autoliv	0.96%	-0.08	€1,257,243.57	20,082	Consumer Discretionary	Auto Components	Sweden
KBC	0.95%	-0.10	€1,248,720.72	21,732	Financials	Banks	Belgium
Iberdrola	0.91%	0.07	€1,194,121.32	136,815	Utilities	Electric Utilities	Spain
Reckitt Benckiser	0.90%	-0.53	€1,177,938.75	17,122	Consumer Staples	Household Products	United Kingdom
BNP Paribas	0.87%	-0.92	€1,145,083.45	27,493	Financials	Banks	France
Lloyds Banking Group	0.85%	-0.14	€1,119,700.66	1,769,136	Financials	Banks	United Kingdom
Husqvarna	0.78%	N/A	€1,020,658.85	124,810	Consumer Discretionary	Household Durables	Sweden
Wirecard	0.77%	N/A	€1,010,679.30	6,822	Information Technology	IT Services	Germany
Iliad	0.64%	0.03	€837,744.20	8,531	Communication Services	Diversified Telecommunication Services	France
Bawag	0.57%	-0.07	€754,756.32	20,532	Financials	Banks	Austria
Alcon	0.42%	N/A	€553,353.91	10,267	Health Care	Health Care Equipment & Supplies	Switzerland

N/A indicates Not Available.

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

Sector Diversification (30-Sep-2019)

Monthly as of:

Sector Diversification	% of Fund	% of Indicative Benchmark
Utilities	8.25%	4.47%
Industrials & Business Services	16.08%	13.44%
Real Estate	3.44%	1.39%
Health Care	15.10%	13.51%
Communication Services	6.03%	4.70%
Materials	7.78%	7.14%
Energy	7.34%	7.19%
Consumer Discretionary	8.51%	9.81%
Information Technology	3.13%	5.78%
Financials	13.54%	17.65%
Consumer Staples	5.24%	14.92%

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 (30-Sep-2019)

Data as of:

Sector	Total Value Added %	Value from Sector Weight %	Value from Stock Selection %
Information Technology	0.30%	0.06%	0.23%
Energy	0.26%	0.02%	0.24%
Communication Services	0.23%	0.04%	0.19%
Industrials & Business Services	0.12%	-0.01%	0.13%
Consumer Discretionary	0.04%	-0.03%	0.07%
Materials	-0.02%	-0.07%	0.05%
Financials	-0.12%	-0.03%	-0.08%
Utilities	-0.14%	0.22%	-0.36%
Consumer Staples	-0.14%	-0.23%	0.09%
Health Care	-0.15%	0.08%	-0.23%
Total	0.24%	-0.00%	0.24%

Past performance is not a reliable indicator of future performance.

Numbers may not add to 100% due to rounding; all numbers are percentages.

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 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.

31-Dec-2018 - Dean Tenerelli, Portfolio Manager,

Attractively Valued Stocks Emerged as Market Retrenched

We altered our positioning by:

Raising our exposure to utilities, now our largest overweight, initiating in Iberdrola
Moving to an overweight in real estate, adding Great Portland Estates
Reducing our underweight in materials, investing in Koningklijke DSM
Slimming our overweight in industrials and business services

Raised Exposure to Utilities, Now Biggest Overweight

We initiated an investment in Iberdrola, a Spain-based integrated utility company, taking advantage of weakness in the share price, which is driven by regulatory uncertainty. The company is attractively valued, provides a steady income stream, and should benefit over the longer term from its position in the decarbonized renewables and electricity transmission markets. It also has a potential pipeline of new assets extending beyond 2025.

Moved to Overweight in Real Estate

We believe GPOR, which operates in central London, is undervalued by the market. The management team has an excellent track record, the balance sheet is strong, and the values of its office assets are being underestimated. We believe there is a high probability that GPOR will return capital to shareholders after a successful disposals program.

Reduced Underweight in Materials

We took advantage of share price weakness to invest in DSM. We believe the business is becoming more stable and focused on growth, thanks to the acquisition-driven transformation program. In our view, improving organic growth, an effective cost and capital efficiency program, and the end of the headwind of falling vitamin E prices should drive a share price recovery and outperformance.

Reduced Overweight in Industrials and Business Services

We reduced our overweight industrials and business services amid signs that the European economy is losing momentum, a less favorable environment for this cyclical sector.

We started investing in RELX because we believe the market underestimates the quality and sustainability of growth at the risk business, which provides one of the leading online identity verification tools. It should benefit from the recent acquisition of the ThreatMetrix, one of the leading electronic devices databases. We also believe the risks around the science publishing business are overdone.

We sold our position in CNH Industrial because slowing economic momentum and increasing uncertainty in the agricultural sector about the possible impact of tariffs and trade disruptions could further curb sales growth in the main divisions. We exited Trelleborg as signs of weakening demand and emerging risks in the automotive agricultural and industrials segments could, in our view, weigh further on the share price after a period of underperformance.

Maintained Health Care Overweight; Exited Fresenius

Country Diversification (30-Sep-2019)

Monthly as of:

Country Diversification	% of Fund	% of Indicative Benchmark
Spain	9.81%	4.63%
Italy	8.03%	3.67%
Sweden	5.47%	4.08%
Finland	2.16%	1.58%
Austria	0.57%	0.35%
Belgium	1.70%	1.62%
Mexico	0.00%	0.02%
Chile	0.00%	0.05%
Argentina	0.00%	0.06%
Luxembourg	0.00%	0.08%
Portugal	0.00%	0.25%
Switzerland	14.71%	14.99%
France	17.27%	18.02%
Ireland	0.00%	0.95%
Denmark	1.79%	2.80%
Norway	0.00%	1.04%
Netherlands	5.05%	6.33%
Germany	9.57%	13.60%
United Kingdom	18.30%	25.88%

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

Country Attribution - Top and Bottom Five by Total Value Added (30-Sep-2019)

Data as of:

Country	Total Value Added %	Value from Country Weight %	Value from Stock Selection %
Switzerland	0.40	0.07	0.33
United Kingdom	0.31	0.05	0.26
Germany	0.28	0.12	0.16
Spain	0.25	-0.10	0.35
United States	0.14	0.14	0.00
Belgium	-0.09	-0.03	-0.07
Austria	-0.13	-0.01	-0.12
Sweden	-0.20	-0.01	-0.19
Finland	-0.22	-0.05	-0.17
France	-0.35	-0.00	-0.35
Total	0.24	0.09	0.15

Past performance is not a reliable indicator of future performance.

Numbers may not add to 100% due to rounding; all numbers are percentages.

Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.

Indicative Benchmark Data Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

Daily performance data is based on the latest available NAV. Performance returns for share classes less than 1 year old (and associated benchmarks) are cumulative rather than annualised.

Please note that no management fees are charged to the S and J share classes. No administration agent fees are charged to the J class. Fee arrangements for the S and J classes are made directly with the investment manager. Please see the prospectus for further information.

The Funds are sub-funds of the T. Rowe Price Funds 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 in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with 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 and via www.troweprice.com.

Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class. The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.

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, 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.

3YR Return Annualised (View Total Returns)

Total Assets (EUR)

1YR Return (View Total Returns)

Manager Tenure

Information Ratio (5 Years)

Tracking Error (5 Years)

Other Literature

Strategy

Investment Objective

Investment Approach

Portfolio Construction

Performance (Class I)

Annualised Performance

Recent Performance

Holdings

TotalHoldings

Largest Top Contributor^

Nestle

Largest Top Detractor^

Eni

Top Purchase

EssilorLuxottica (N)

Top Sale

Greene King (E)

Attractively Valued Stocks Emerged as Market Retrenched

Raised Exposure to Utilities, Now Biggest Overweight

Moved to Overweight in Real Estate

Reduced Underweight in Materials

Reduced Overweight in Industrials and Business Services

Maintained Health Care Overweight; Exited Fresenius

Sectors

TotalSectors

Top Contributor^

Information Technology

Top Detractor^

Health Care

Largest Overweight

Utilities

Largest Underweight

Consumer Staples

Countries

TotalCountries

Top Contributor^

Switzerland

Top Detractor^

France

Largest Overweight

Spain

Largest Underweight

United Kingdom

Team (As of 31-Aug-2019)

Dean TenerelliPortfolio Manager

Andrew CliftonPortfolio Specialist

Fee Schedule

Portfolio Characteristics

Risks

Risk/Return Characteristics

Calendar Year Performance (Class I)

Monthly Performance (Class I)

Purchases - 10 Largest (30-Jun-2019)

Sales - 10 Largest (30-Jun-2019)

Contributors (30-Jun-2019)

Detractors (30-Jun-2019)

Holdings (30-Jun-2019)

Sector Diversification (30-Sep-2019)

Sector Attribution - Top and Bottom Five by Total Value Added (30-Sep-2019)

Attractively Valued Stocks Emerged as Market Retrenched

Raised Exposure to Utilities, Now Biggest Overweight

Moved to Overweight in Real Estate

Reduced Underweight in Materials

Reduced Overweight in Industrials and Business Services

Maintained Health Care Overweight; Exited Fresenius

Country Diversification (30-Sep-2019)

Country Attribution - Top and Bottom Five by Total Value Added (30-Sep-2019)

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3YR Return Annualised
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Total Assets
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1YR Return
(View Total Returns)

Information Ratio
(5 Years)

Tracking Error
(5 Years)

Total
Holdings

Total
Sectors

Total
Countries

Dean Tenerelli
Portfolio Manager

Andrew Clifton
Portfolio Specialist

GIPS^® Information