Investment Approach

• A structured portfolio management process that employs proprietary, quantitative models developed by T. Rowe Price that use fundamental metrics to rank and screen securities.
• Investment approach favors stocks featuring a combination of relatively inexpensive valuations, strong profitability, evidence of prudent capital allocation, and price trends that indicate positive market recognition.
• Quantitative models are monitored and security selection results are reviewed for qualitative factors, portfolio risk characteristics, sector weightings and macroeconomic factors in the process of portfolio construction.
• Broad range of stocks across all capitalizations, incorporating developed and emerging markets, with a quality and a lower absolute risk profile than the MSCI AC World Index at most times.
• Employs risk models provided by T. Rowe Price’s enterprise risk group and uses analytics developed by the quantitative equity team to monitor portfolio risk.
• Relying on quantitative models entails the risk that the models themselves may be limited or incorrect, that the data that the models rely on may be incorrect or incomplete, and that the adviser may not be successful in selecting companies for investment or determining the weighting of particular stocks