MUTUAL FUND SPOTLIGHT

The T. Rowe Price Spectrum International Fund (PSILX)

A Diversified Blend of Growth
and Value

he 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.

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, click here. The fund's expense ratio as of its fiscal year ended 12/31/12 was 0.96%.

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

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 June 30, 2013, the
T. Rowe Price International Stock Fund, the T. Rowe Price International Growth & Income Fund, and the T. Rowe Price European Stock Fund accounted for more than two-thirds of the Spectrum International Fund's holdings. The remaining assets were invested in the T. Rowe Price International Discovery Fund and several other regionally focused funds, among them the T. Rowe Price New Asia Fund and the T. Rowe Price Africa & Middle East Fund.

GLOBAL SLOWDOWN PROMPTS SHIFTS
At the close of the second quarter, Europe was the fund's largest regional exposure, followed by the Pacific and Japan, where fiscal and monetary stimulus—and the resulting depreciation of the yen—are supporting near-term growth prospects. Shriver recently lowered the fund's holdings in emerging markets equities to reflect the prospect of softer commodity markets. However, the portfolio remains overweighted in these regions due to a number of positive trends: favorable intermediate- to long-term growth prospects, healthier fiscal budgets and lower debt burdens, urbanization, increased real wages, and rising domestic consumption—factors that are contributing to faster private sector growth than in many developed economies.

Shriver's investment approach has benefited shareholders. The fund outperformed its competitors for the 3-, 5-, and 10-year periods ended June 30, 2013. 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 riskthe 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 13 international funds, which include 11 international equity funds, as well as the International Bond Fund and the Emerging Markets Bond Fund. It also invests in the Summit Cash Reserves Fund.

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

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

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