(PUB) Investing 2015

6

Data through April 30, 2015 T. Rowe Price Diversified Sm Cap Growth

Ticker

Status Yield Total Assets

Mstar Category Small Growth Investment Style Equity Stock %

PRDSX Open

0.0% $1,283 mil

Morningstar Analyst Rating 04-22-15 „

Historical Profile Return Risk Rating High Average Highest

99% 99% 99% 95% 97% 99% 95% 95% 89%

Manager Change Partial Manager Change

15.0 20.0 26.0

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

Investment Values of Fund Investment Values of S&P 500

People Parent Price

10.0

Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 04-15

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

12.68 10.26 -0.62 -4.05

14.01 10.49

14.48 3.35

14.25

8.59

11.85 37.98 11.52 3.51

15.82 33.50 18.44 4.41

15.45 1.54 -0.57 4.45

17.44 15.69 -0.31 1.10

24.99 44.19 11.80 0.89

25.58 6.38 -7.31 0.78

27.03 5.67 3.75 6.03

NAV

-36.28 9.35

Total Return %

-12.44 5.58 -10.00 6.34

3.86 2.30 0.00

0.72 2.26 0.00

+/-S&P 500

+/-Russ 2000 Gr Income Return % Capital Return % Total Rtn % Rank Cat

0.00

0.00

0.00 3.35

0.00

0.00

0.00 1.54

0.20

0.00

0.00 6.38

0.00 5.67 0.00 0.00 11

10.26

10.49

-36.28 9.35

37.98

33.50

15.49

44.19

65

19

96

42

14

36

16

13

26

31

17

Pillar Spectrum Positive

0.00 0.00 1.25 -0.99

0.00 0.00 1.25 -0.83

0.00 0.00 1.25 -1.01

0.00 1.55 1.25 -0.63

0.00 0.46 1.25 -0.84

0.00 0.00 1.25 -0.68

0.00 0.00 1.25 -0.74

0.00 0.59 1.10 -0.78

0.03 0.40 0.91 0.22

0.00 0.15 0.82 -0.19

0.00 0.97 0.85 -0.26

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 04-30-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total 1.54

26 83

29 87

39 89

47 88

30 56

28 79

18

17

15

13

17

2011 2012 2013 2014 2015

11.44 0.28 -21.27 15.40

134

189

396

771

979

1,283

14.05 -5.39 5.76 1.38 15.69 12.56 3.26 13.52 9.28 44.19 -0.40 3.05 -2.92 6.76 6.38 8.21 . . . .

Portfolio Analysis 03-31-15 Share change since 12-14 Total Stocks:265 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

T. Rowe Price Short-Term

2.45

. . .

1 Yr 3 Yr 5 Yr

16.46 18.45 17.39 11.68 7.56

Trailing

Total

+/-

+/- Russ %Rank Growth of

Maximus Inc

Industrl Industrl

28.5 16.80 1.11 29.8 2.26 0.91

Return% S&P 500 2000 Gr

Cat

$10,000

High High High

-Avg Avg Avg

The Middleby Corp Tyler Technologies Inc Hanesbrands Inc

3 Mo 6 Mo 1 Yr

6.29 1.22 7.67 3.27

2.30 5.90 4.60 7.49 4.46

48 10,629 22 10,767 9 11,646 6 16,619 6 22,292 5 30,182 44 24,968

Technology 67.1 11.43 0.91 Cnsmr Cyc 30.5 11.74 0.88 Basic Mat 23.4 11.09 0.87

10 Yr Incept

16.46 3.48 12.16

NewMarket Corp

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

18.45 1.72 17.39 3.06 11.68 3.36 6.29 1.86

Old Dominion Freight Lin

Industrl Hlth care Hlth care

22.9 -8.38 0.85

Other Measures

Standard Index

Best Fit Index S&P 500 Mstar Small Growth

Incyte Corp

32.90 0.83

.

Pharmacyclics Inc Domino’s Pizza Inc

. 109.55 0.82

Alpha

0.6

3.5

Cnsmr Cyc 36.4 14.86 0.77 Hlth care 25.3 19.38 0.76 Cnsmr Def 34.8 -14.42 0.76 Cnsmr Cyc 38.8 9.55 0.75

.

Beta

1.08

0.91

Centene Corp

R-Squared

67

96

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 17.83 3 0.53 16 16.89 2 0.43 20 11.18 3 0.45 12 Potential Capital Gain Exposure: 26% of assets Morningstar’s Take by Greg Carlson 04-22-15 T. Rowe Price Diversified Small Cap Growth comes with a caveat or two, but it’s a worthy holding. This small-growth fund has racked up an excellent record since Sudhir Nanda took the helm in October 2006. From his start date through March 2015, the fund beat more than 95% of its Morningstar Category peers on both a total-return and risk-adjusted basis and outpaced its MSCI US Small Cap Growth benchmark (which 90% of small-growth funds have lagged) by an annualized percentage point. The fund has been a consistent performer, too, landing in the category’s top half in each calendar year during Nanda’s tenure--a span marked by big rallies, a huge decline, and several up-and-down years for stocks. Its long run of outperformance owes to a strategy that relies heavily on quantitative stock-picking models. Many quant funds have sported feast-or-famine profiles during Nanda’s 8.5-year tenure, but he has kept a lid on volatility by relying less on momentum than many quants, instead focusing on valuation (particularly based on relatively stable

Boston Beer Co Inc Class

Standard Deviation

12.48 18.45 1.42

Vail Resorts Inc Rite Aid Corp

Cnsmr Def Industrl

3.7 2.53 0.73 21.5 5.45 0.72

Mean

Toro Co

Sharpe Ratio

J&J Snack Foods Corp Salix Pharmaceuticals Lt Berry Plastics Group Inc Ultimate Software Group WEX Inc

Cnsmr Def 27.3 -3.75 0.72

Hlth care Industrl

0.71

. .

23.4 13.94 0.69

Cnsmr Cyc 60.6 8.46 0.69 Technology 108.7 13.22 0.69

metrics such as cash flow) and earnings quality. Broad diversification has smoothed the ride; the fund tends to own about 300 stocks and positions are capped at 1% of assets. This sensible approach is implemented by Nanda and a team of six analysts that has gradually grown in size and experience. The fund may not always look this good. Its quant models don’t take companies’ debt into account, so the portfolio’s debt/capital ratio is sometimes above the category norm. Thus, the fund could be hurt if interest rates rise. (That said, it typically has held up well when leveraged fare has suffered.) Also, the fund’s stake in biotech was recently more than 9% of assets, higher than its benchmark’s--that’s surprising given the industry’s huge runup in recent years and the emphasis on valuation here. The fund’s returns may be dented if those highfliers fall back to earth. Its disciplined strategy and record of strong stock selection, coupled with well below-average fees, merit raising its Morningstar Analyst Rating to Silver from Bronze.

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 0.0 Large 2.0 Mid 50.2 Small 43.0 Micro 4.9 Avg $mil: 3,815

Value Blnd Growth

Large Mid Small

Cyclical 30.21 BasicMat 3.60 CnsmrCyc18.29 FinanSvs 5.11 Real Est 3.21 Sensitive 44.66 CommSrvs 0.40 Energy 3.85 Industrl 23.86 Technlgy 16.55 Defensive25.13 CnsmrDef 4.94 Hlthcare 20.19 Utilities 0.00

. . . . . . .

h r t y u j i o p a k s d f

4 3

. 18 16

6 5 3 2

1 0 6 4

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

24.87 3.81 1.59 12.85 0.62 14.20 8.95 8.58 10.06 12.63

1.18 1.56 1.14 1.37 0.90 0.89 1.20 1.81 0.72 1.39

. 24 24 . 20 17

. .

5 4

. 20 17 . . .

% Rel Category

Composition - Net

Cash 2.9 Stocks 88.8 Bonds 0.2 Other 8.1 Foreign 1.4

Address:

T. Rowe Price Divers Sm Cap Gr Fd, Inc Baltimore, MD 21202 800-638-5660

Minimum Purchase: Min Auto Inv Plan:

$2500 $2500

Add: $100 IRA: $1000

Add: $100

Profitability

% Rel Category

Sales Fees:

No-load, 1.00%R 0.35%, 0.15%A

Return on Equity Return on Assets Net Margin

17.57 6.60 8.58

1.52 1.52 1.25

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

www.troweprice.com

Management Fee:

(% of Stock)

06-30-97

Actual Fees:

Mgt:0.64% Dist: .

T. Rowe Price Associates, Inc.

Expense Projections: Income Distribution:

3Yr:$262 Annually

5Yr:$455 10Yr:$1014

None

N/A

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, complete or timely. Pastperformance is no guarantee of future results.Accessupdated reportsat To order reprints, call 312-696-6100. mfb.morningstar.com.

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