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December 14, 2012

Charles Shriver Charles Shriver, portfolio manager of the T. Rowe Price Spectrum International Fund.

The T. Rowe Price Spectrum International Fund invests in up to 13 T. Rowe Price international funds* and employs broad diversification to pursue its goal of producing long-term capital appreciation.

Portfolio Manager Charles Shriver determines the fund's positioning through consultation with the 12-member T. Rowe Price Asset Allocation Committee. The group's collective knowledge of global financial markets and business trends helps determine the Spectrum International Fund's exposure to the underlying funds. The committee seeks opportunities in developed and emerging markets, including large- and small-cap companies.

Performance vs. Competition

Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, visit troweprice.com/spf. The fund's expense ratio as of its fiscal year ended 12/31/11 was 0.96%.

Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Source for Lipper data: Lipper Inc.

Broadly Diversified

The T. Rowe Price Spectrum International Fund has allocations to diversified international portfolios, covering growth- and value-oriented investment approaches, as well as regional equity funds. As of September 30, 2012, the T. Rowe Price International Stock Fund, T. Rowe Price International Growth & Income Fund, and T. Rowe Price European Stock Fund accounted for more than two-thirds of the fund's holdings. Additionally, the portfolio seeks to benefit from its allocation to international small-cap stocks through the T. Rowe Price International Discovery Fund. The remaining assets were invested in several other regionally focused funds, among them the T. Rowe Price New Asia Fund and T. Rowe Price Africa & Middle East Fund.

Global Slowdown Prompts Shifts

Shriver recently lowered the fund's holdings in emerging markets to reflect modestly lower growth expectations in Asia, particularly in China. However, the portfolio remains overweighted in emerging markets due to a number of positive trends in the regions: favorable intermediate- to long-term growth prospects, generally lower levels of debt among countries, upward wage trends, and a gradual shift toward more consumer-oriented economies. The fund has also moderated its underweight position to international value stocks, as recent comments from the European Central Bank have helped reduce the likelihood that the fiscal situation will worsen, which has been weighing on the financials sector.

Shriver's investment approach has benefited shareholders. The fund outperformed its competitors for the 1-, 3-, 5-, and 10-year periods ended September 30, 2012. For an investor seeking a simple solution to creating a portfolio with a global perspective, the T. Rowe Price Spectrum International Fund offers broad diversification among equities outside the U.S.

This fund is subject to general stock and bond market risks. The fund's share price can fall because of weakness in the broad market, a particular industry, or specific holdings. Funds that invest overseas generally carry more risk than funds that invest strictly in U.S. assets. These risks include currency riskā€”the effects of negative currency exchange rates. To the extent the fund has investments in emerging market countries, it will be subject to more abrupt and severe price declines.

*The Spectrum International Fund can invest in 14 funds, which include 11 international equity funds, as well as the International Bond Fund, Emerging Markets Bond Fund, and Summit Cash Reserves Fund.

Diversification cannot assure a profit or protect against loss in a declining market.

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