t rowe price international presentation

Are Global Equities Fit For Purpose?

Laurence TaylorCitywire Wealth Management Forum, November 2012

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400

Dec-99 May-01 Oct-02 Mar-04 Aug-05 Jan-07 Jun-08 Nov-09 May-11 Sep-12

TOPIX 500 (-46%)

S&P 500 (-2%)

MSCI World (+24%)

MSCI Emerging Markets (+187%)

-10%

-5%

0%

5%

10%

15%

20%

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Annualized real return 10-year holding period

The Rarity of Lost Decades, S&P 500Real total returns, % p.a. rolling 10-year, 1900-2012

‘Lost Decades’ Past and Present

Source: Robert Shiller, Datastream, Goldman Sachs Global ECS Research (most recent data available), Factset, MSCI

The Global Equity Investor’s Modern ‘Lost Decade’(1 January 2000 – 30 September 2012, in USD)

Following the equity boom years of the 1980’s and 1990’s, global developed world equity returns were negative over the 10 year periods ending 2008 and 2009. Such disappointment has not been seen on a

global basis since the 1970’s – at the end of that decade, the death of equities was pronounced.

33

40

50

60

70

80

90

100

110

0 6 12 18 24 30 36 42 48

Early 80s

Early 90s

Early 00s

Mid 70s

Late 90s

Average

Global Financial Crisis 2008-2009

Profit Collapses and The Lost Decade

Global Earnings Recessions Since 1970 (Previous Peak = 100)

Source: MSCI, CIRA

The decade spanning 2000-2009 was defined by extremes, including the two largest earningsrecessions of the past 40 years. Despite the magnitude of these profitability collapses (37% and

57% falls from peak), earnings grew marginally over the decade in aggregate.

As of 30 September 2012

Months

44

Equity Valuations Matter!

10.1

11.8

4

9

14

19

24

29

Jun-92 Dec-94 Jun-97 Dec-99 Jun-02 Dec-04 Jun-07 Dec-09 Jun-12

MSCI Emerging Markets Index IBES Average 12-Month P/E

MSCI World Index IBES Average 12-Month P/E

Long-Term Median = 11.9x


Price/Earnings Ratio (x)

Equity markets were extremely overvalued in 2000 and the adjustment to modest valuation levels has been a big headwind to returns. Buying equities when inexpensive matters in the long term

Global Equity Market Correlations(1987 through 2011)


and valuations are now below long term medians.

Sources: IBES, FactSet, MSCI

10-Year Return vs: Starting Valuation (P/E)

Earnings Per Share (CAGR)

Developed Markets -0.92 -0.15

Emerging Markets -0.53 0.89

Global Markets -0.67 0.67

-0.92

0.89

55

0%

10%

20%

30%

40%

50%

60%

70%

1980 1985 1990 1995 2000 2005 2010

US - Total EquityJapan - Domestic Equity OnlyUK - Total Equity

Pension Fund Equity Allocations (% of Total Fund Assets)

De-equitisation amongst institutional investors has been stark against a backdrop of disappointing equity returns and elevated market volatility.

Source: ONS, Citi Investment Research. Data to 31st December 2011Notes: 1) Towers Watson suggests that between 1998 and 2011, Japan Pension Fund total international and domestic equity holdings as a % of total assets fell from 55% to 31%

2) UK Figures are for Pension Funds and Insurance Companies combined

Disappointment and De-Equitisation

Equity Market Outlook

77

Our Current View on Global Equity Markets

The fiscal crisis facing the developed world is rooted in the global financial crisis and will remain a source of elevated market volatility

We expect anemic growth in developed markets and moderating but durable growth in emerging markets

Global profits are still growing despite the economic environment, but the durability of profit growth is being increasingly questioned

The starting point for equity markets is better than it was in 2007 –corporations have improved balance sheet strength

Equity valuations remain attractive and valuation matters when considering future returns

88

-8%

-6%

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0%

2%

4%

6%

8%

10%

-12% -10% -8% -6% -4% -2% 0% 2%Budget Balance

Estim

ated

GD

P G

row

thH

ealth

ier

Healthier

UK

Spain

Greece

U.S.

France

Japan

Portugal

Germany

India

Italy

CanadaTurkey

Russia

Australia

China

Indonesia

Korea

Brazil

Mexico

Hong Kong

Ireland

Source: The Economist, IMF. Most recent data available

High unemployment and fiscal deficits in advanced economies will continue to be a headwind to growth. Over the long term, many economies will need to adjust to restore

international competitiveness.

2012 Budget Balance vs. Estimated GDP Growth

Growth is Scarce and Economic Issues Persist


-4%

-2%

0%

2%

4%

6%

8%

10%

1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017

Advanced EconomiesEmerging and Developing EconomiesWorld

Real GDP Growth (Annual % Change)Actual data 1981 through 2011, IMF forecasts 2012 through 2016

As of 10 October 2012

99

Modest Growth Outlook Reflected In Valuations

P/E ratio by MSCI region Current 30-September-12

Average High Low

Current Valuation to Average

MSCI World 11.85 13.15 15.74 9.25 -10%North America 12.33 13.73 16.47 10.14 -10%Developed Europe 10.88 11.59 15.07 7.72 -6%Japan 11.47 16.34 31.07 10.17 -30%Emerging Markets 10.12 11.04 14.98 6.86 -8%China 8.98 12.41 25.36 7.50 -28%India 14.03 15.44 23.15 9.04 -9%Brazil 9.54 9.64 13.72 5.67 -1%Russia 5.25 7.86 12.82 3.33 -33%

Source: MSCI, Factset, T. Rowe Price

As of 30 September 2012 Forward P/E Ratios

0

5

10

15

20

25

30

35

MSCI World North America DevelopedEurope

Japan EmergingMarkets

China India Brazil Russia

1010

Earnings Outlook – Modest Growth or Recession?

Source: MSCI, IMF, Morgan Stanley

Return on Equity31 January 1997 through 30 September 2012

Earnings revisions have been negative for much of 2012 and the global earnings outlook remains uncertain – this will be a source of ongoing stock volatility.

19.1%15.5%

5.2%

-17.4%

-8.9%

42.2%

7.7%4.6%

12.9% 11.5%

-20%

-10%

0%

10%

20%

30%

40%

50%

2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E

MSCI AC World Index EPS Growth 2005-2014 (Estimates 2012 - 2014)


Source: Factset, MSCI

4%

6%

8%

10%

12%

14%

16%

18%

1997 1999 2002 2004 2007 2009 2012

MSCI Emerging Markets ROE

MSCI World ROE

1111

Sources: Standard and Poor’s, Haver, Factset, CIRA as of 31 December 2011

Equity ‘Yields’ are High

0%

1%

2%

3%

4%

5%

6%

4Q98 4Q99 4Q00 4Q01 4Q02 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11

S&P Buyback Yield

S&P Dividend Yield

MSCI ACW Div Yield

Dividend and Buyback YieldsMSCI All Country World Index – Total Debt as % of Total Equity

Sources: Factset, MSCI as of 30 September 2012

Corporate balance sheets are strong and cash-rich – this is in marked contrast to 2008 and will act as a source of return for shareholders. When taken together, dividend and share buyback yields look

attractive in isolation and especially versus government bonds.

130%

140%

150%

160%

170%

180%

190%

200%

210%

220%

Oct-01 Mar-03 Jun-04 Oct-05 Mar-07 Jun-08 Oct-09 Feb-11 Jun-12

Where To Go From Here

1313

Leveraging the T. Rowe Price Platform


1 Also has analyst responsibilities2 10 Sector Portfolio Managers, 96 Research Analysts, 23 Associate Research Analysts, 5 Quantitative Analysts, and 3 Specialty Analysts.

Best Ideas Approach

58 Regional and DiversifiedPortfolio Managers

10 Sector PortfolioManagers1

136 Analysts Worldwide2

Single decision maker responsible for alpha generation and managing risk

Regional and country knowledge and experience

Global sectorknowledge and experience

Detailedfundamentalanalysis

Global Equity Research Resources and Analyst Managed Portfolios

FinancialServices

HealthSciences

Tech Media &Telecom

NaturalResources

Global Sector Strategies

U.S. PacificEx-Japan

Europe

Regional Strategies

Global Equity

Japan Emerging Markets

Idea

Gen

erat

ion

and

Refin

emen

t

Real Estate

Infra-structure

1414

Stay Engaged – Stressful Periods Are Often the Time to Buy

Source: Standard & Poor’s, MSCI Indices, analysis by T. Rowe Price

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Jan-

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Jan-

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Jan-

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Jan-

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Jan-

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Jan-

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Jan-

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Jan-

11

Return %

S&PGlobal ex US EquitiesEM

Peso crisis

Gulf War

Stock Market Crash

Asian crisis

Russian crisis

US Corporate Scandals

Lehmanbankruptcy

As of December 31, 2011

EuropeDebt crisis

1 Year Forward Equity Returns(%)

History shows that thoughtful, contrarian investing is a key contributor to superior long term returns. This tends to follow the gains derived from buying when valuations are attractive (and

sentiment is poor) and selling when valuations are expensive (and sentiment is strong).

1515

Total Return Performance

Global Large-Cap Equity CompositePeriods Ended 30 September 2012Figures Shown in U.S. Dollars

1 Net of fees performance reflects the deduction of the highest applicable management fee (“Model Net Fee”) that would be charged based on the fee schedule appropriate toyou for this mandate, without the benefit of breakpoints. Please be advised that the composite may include other investment products that are subject to management fees that are inapplicable to you but are in excess of the Model Net Fee. Therefore, the actual performance of all the portfolios in the composite on a net fee basis will be different and may be lower than the Model Net Fee performance. However, such Model Net Fee performance is intended to provide the most appropriate example of the impact management fees would have by applying management fees relevant to you to the gross performance of the composite. Monthly composite performance is available upon request. Past performance cannot guarantee future results. Supplemental information. See “GIPS® Disclosure” for additional performance information.

2 Returns shown with gross dividends reinvested.3 The Value Added is shown as Global Large-Cap Equity Composite (Gross of Fees) minus MSCI All Country World Large-Cap Index.4 The Value Added is shown as Global Large-Cap Equity Composite (Gross of Fees) minus MSCI All Country World Index.

Three Months

Year-to-Date One Year

Three Years

Since Inception

31 Oct 2008

Global Large-Cap Equity Composite (Gross of Fees) 8.42 18.50 27.37 9.52 17.63

Global Large-Cap Equity Composite (Net of Fees)1 8.26 17.97 26.62 8.87 16.94

MSCI All Country World Large-Cap Index2 6.94 13.57 22.06 7.56 11.57

Value Added3 1.48 4.93 5.31 1.96 6.06

MSCI All Country World Index2 6.97 13.39 21.67 7.78 12.20

Value Added4 1.45 5.11 5.70 1.74 5.43

Annualized

1616

Maintain a Broad Focus – Earnings Stability is Important, but so is Valuation

Source: MSCI, Factset, T. Rowe Price


Forward P/E Ratios By Sector Relative to Global

The search for defensive stock characteristics has pushed some sector valuations to extremes. Albeit valuation is not necessarily a barrier to this trend continuing in the near term, extreme

valuations are often a signal to re-allocate across a portfolio.

1717

Company Industry Country HoldingsLatin America Banco Santander Brasil Commercial Banks Brazil 1.4%

Itau Unibanco Holding Commercial Banks Brazil 0.9%Credicorp Commercial Banks Peru 0.7%Banco Santander Mexico Commercial Banks Mexico 0.7%BR Malls Real Estate Management, Development Brazil 0.6%Multiplan Empreendimentos Real Estate Management, Development Brazil 0.4%

Asia Siam Commercial Bank Commercial Banks Thailand 1.2%Bank Central Asia Commercial Banks Indonesia 1.0%Axis Bank Ltd Commercial Banks India 0.9%CIMB Group Commercial Banks Malaysia 0.8%Kotak Mahindra Bank Diversified Financial Services India 0.8%Hang Lung Properties Real Estate Management, Development Hong Kong 0.7%AIA Group Insurance Hong Kong 0.7%Housing Development Finance Thrifts & Mortgage Finance India 0.6%Ayala Land Inc Real Estate Management, Development Philippines 0.5%Bank Raykat Commercial Banks Indonesia 0.5%HDFC Bank Ltd Commercial Banks India 0.4%

North America JPMorgan Chase Diversified Financial Services United States 1.3%Invesco Capital Markets United States 0.8%U.S. Bancorp Commercial Banks United States 0.8%Franklin Resources Capital Markets United States 0.7%Bank of America Diversified Financial Services United States 0.6%SunTrust Banks Commercial Banks United States 0.6%Goldman Sachs Capital Markets United States 0.6%TD Ameritrade Capital Markets United States 0.3%

Europe Sberbank Commercial Banks Russia 1.1%Turkiye Halk Bankasi Commercial Banks Turkey 0.9%Standard Chartered Commercial Banks United Kingdom 0.9%Turkiye Garanti Bankasi Commercial Banks Turkey 0.7%Credit Suisse Capital Markets Switzerland 0.5%

1The representative portfolio is an account in the composite we believe most closely reflects current portfolio management style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of the composite and of the other accounts in the composite. Information regarding the representative portfolio and the other accounts in the composite is available upon request.Numbers may not total due to rounding. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for clients in the composite, and no assumptions should be made that the securities identified and discussed were or will be profitable. Supplemental Information

T. Rowe Price Global Large-Cap Equity Representative Portfolio1 – Financials HoldingsAs of 30 September 2012 (US Dollars)

Global Equity Investing – Seek Return and Diversify

1818

Growth – Look More Broadly T. Rowe Price Global Large-Cap Equity Representative Portfolio1

As of 30 September 2012 (US Dollars)

1 The representative portfolio is an account in the composite we believe most closely reflects current portfolio management style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of the composite and of the other accounts in the composite. Information regarding the representative portfolio and the other accounts in the composite is available upon request. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for clients in the composite, and no assumptions should be made that the securities identified and discussed were or will be profitable. Numbers may not total due to rounding. Supplemental information. Market Capitalizations Shown in U.S. Dollars

$0-$5 Billion $5-$10 Billion $30-$50 Billion $50-$100 Billion $100+ Billion 1.7% 13.4%

$10-$30 Billion35.0% 16.0% 13.8% 18.8%

Adani EnterprisesMultiplanEmpreedimentosRaia DrogasilShangdong WeigaoGroup MedicalPolymer

AESAxis BankAyala LandBanco SantanderMexico

BIM Birlesik MagazalarBR Malls ParticipacoesC.H RobinsonWorldwide

Cimarex EnergyCONSOL EnergyCredicorpDP WorldJuniper NetworksKotak Mahindra BankLiberty GlobalLinkedInSberbank of RussiaShangri-La AsiaSonovaTD Ameritrade HoldingTim HortonsTurkiye Halk BankasiXL Axiata

Adobe SystemsAlexionPharmaceuticals

AlteraARM HoldingsBanco SantanderBrasil

Bank Central AsiaBank Rakyat IndonesiaBrasil FoodsCarnivalCernerChina ResourcesPower Holdings

CIMB Group HoldingsBerhad

Cognizant TechnologyCP ALLCredit SuisseEcolabEdwards LifesciencesEldorado GoldExperianFastenalFedExFranklin ResourcesFreseniusFresnilloHang Lung PropertiesHDFC BankHousing DevelopmentFinance

Hyundai Mobis

InpexInvescoJardine Cycle & CarriageKohl’s Lyondellbasel IndustriesMitsuiPernod-RicardPioneer NaturalResources

Precision CastpartsRange ResourcesRed HatRolls-RoyceRoper IndustriesSACI FalabellaSalesforce.comSandiskSiam Commercial BankSM InvestmentsSouthwestern EnergyStarwood Hotels &Resorts

StrykerSun Art RetailSunTrustThermo Fisher ScientificTullow OilTurkiye Garanti BankasiValeant PharmaceuticalsWilliams CompaniesWPP

AccentureAIA GroupAnglo AmericanApacheBaiduBanco ItauChina UnicomDanaherDanoneFanucITCJardine StrategicLas Vegas SandsPotash Corporation of Saskatchewan

PraxairPriceline.comReckitt BenckiserRichemontSoftbankStarbucksTescoUnilever

Bank of AmericaBayerBG GroupBHP BillitonBoeingExpress ScriptsGilead SciencesGoldman SachsMasterCardPetrobrasSberbank of RussiaSchlumbergerStandard CharteredUnion PacificUnitedHealth GroupWalt Disney

Amazon.comAnheuser-BuschInBev

AppleChevronGlaxoSmithKlineGoogleJPMorgan ChaseMerckMicrosoftNestleQUALCOMMSamsungVodafone

1919

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80

90

100

110

120

130

2000 2002 2004 2006 2008 2010 2012 2014 2016

Major advanced economies (G7)

Emerging and developing economies

Emerging Markets vs. G7 Government Gross Debt (% of GDP)

IMF forecasts as of 17 April 2012

Source: IMF, JP Morgan

Alongside the long term growth dynamics of the emerging world, many countries are poised to benefit from better fiscal conditions in comparison to the developed world.

Emerging Markets Have Evolved, Growth is a Long Term Theme

13%

19%

31%

24%

44%

55%

38%

49%

59%

0%

10%

20%

30%

40%

50%

60%

70%

Current 2020 Projected 2030 Projected

MSCI ACWIMarket Capitalization

GDP (in U.S. $)

EM Shares of Global TotalsIMF Current and Projected as of 30 September 2012

Source: Factset, IMF, World Bank, World Federation of Exchanges, MSCI, Goldman Sachs Global ECS Research

2020

A Truly Global PortfolioOur Fund Spans Both Developed And Emerging Markets

T. Rowe Price Global Large Cap Equity Fund Other Global Funds*

23 Countries25% Emerging Markets

15 Countries8% Emerging Markets

We have the flexibility and resources to invest where we believe there is growth. Our portfolio spans 23 countries in developed, emerging and frontier markets. We believe that direct

investment in the emerging world is often the only way to capture a specific growth theme.

*Other Global Funds are Luxembourg and Ireland domiciled funds within the Europe OE Global Large Cap Growth Equity – Morningstar Category. In total there are 115 funds. Number of countries and Emerging Markets represent the median of the exposure of these 115 funds. Graphic not illustrative of the total universe of countries in which the 115 funds are invested in.


2121

Summary

1) Stay engaged with Global equities, especially in times of disappointment

As painful as the lost decade was, history shows that we should buy when it feels wrong and be cautious when valuations are expensive

2) Maintain discipline, diversify and be respectful of the unknown

Every cycle embodies different risks, but opportunities to buy compelling stocks is a constant

3) Focus on the long term – that’s where inefficiencies are most likely to occur

Use a long term time horizon as a counter balance to short term volatility

“Buy on the cannons, sell on the trumpets.” – Old French Proverb

Appendix

2323

Portfolio Manager for the Global Large-Cap Equity Strategy;• 10 years of investment experience;• 10 years with T. Rowe Price;

• Joined in 2002 as a research analyst (November 2005 recipient ofthe Institutional Investor “Best of the Buy Side”)1

• 2002–2006, responsible for covering processors and outsourcing stocks in the business services sector, and managed assets for firm’s Structured Research Strategy

• 2005–October 2008, Associate Portfolio Manager for the Global Equity (All-Cap) Strategy

• 3 years with Mead Consumer and Office Products• 1997–2000, Financial Analysis and Planning Manager

• 2 years with McKinsey & Company • 1995–1997, Business Analyst

• MBA, Graduate School of Business, Stanford University (#1 in class)• Graduate of Macquarie University (#1 in class)• Chartered Financial Analyst

1 Institutional Investor selects its winning “Best of the Buy Side” analysts each year by asking the Wall Street sell-side analysts who receive All-America Research Team votes to designate outstanding buy-side analysts at money management firms. This data has been compiled based on the responses of approximately 550 sell-side analysts from 85 firms in 2005.

Biography - Scott Berg


2424

Investment Philosophy

The breadth and quality of our fundamental research is the foundation of our high conviction approach.

By identifying companies with superior and sustainable growth characteristics, we create a framework for outperformance.

Near-term trends are often overemphasized by the market.

Risk management is essential, valuation always matters.

We can deliver a truly global bottom-up strategy through leveraging our research platform and via our footfall around theworld.

We only invest where we believe we have an edge where our outlook encompasses a clear asymmetry of risk and return.

2525

GIPS® Disclosure

1 Reflects deduction of highest applicable fee schedule without benefit of breakpoints. Investment return and principal value will vary. Past performance cannot guarantee future results. See below for further information related to net of fee calculations.

² October 31, 2008 through December 31, 2008.³ Primary benchmark is MSCI All Country World Large Cap Index and secondary benchmark is MSCI All Country World Index. T. Rowe Price (“TRP”) has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the 10-year period ended June 30, 2012 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Services Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group. The minimum asset level for equity portfolios to be included in composites is $5 million, and prior to January 2002 the minimum was $1 million. The minimum asset level for fixed income and asset allocation portfolios to be included in composites is $10 million; prior to October 2004 the minimum was $5 million; and prior to January 2002 the minimum was $1 million. Valuations are computed and performance reported in U.S. dollars. Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule appropriate to you for this mandate, without the benefit of breakpoints. Gross and net performance returns are net of all non-reclaimable withholding taxes on dividends, interest income, and capital gains. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within a composite for the full year. Dispersion is not calculated for the composites in which there are five or fewer portfolios.Some portfolios may trade futures, options, and other potentially high-risk derivatives which generally represent less than 10% of a portfolio.Benchmarks are taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from the composite.Composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow greater than or equal to 15% of portfolio assets. The temporary removal of such an account occurs at the beginning of the measurement period in which the significant cash flow occurs and the account re-enters the composite on the last day of the current month after the cash flow. Additional information regarding the treatment of significant cash flows is available upon request.The firm’s list of composite descriptions and/or a presentation that adheres to the GIPS® standards is available upon request.

20082 2009 2010 2011 YTD 2012Gross Annual Returns (%) -0.50 52.10 15.99 -9.20 18.50Net Annual Returns (%)1 -0.60 51.22 15.31 -9.75 17.97MSCI AC World Large Cap (%)3 -3.48 33.95 11.68 -6.39 13.57MSCI AC World Index (%)3 -3.07 35.41 13.21 -6.86 13.39Composite Dispersion N/A N/A N/A N/A N/AComp. Assets (Millions) 23.6 567.0 592.6 1,003.8 3,158.9# of Accts. in Comp. 3 4 5 8 16Total Firm Assets (Billions) 275.7 395.2 485.0 489.5 574.4

Global Large-Cap Equity CompositePeriod ending 30 September 2012 (USD)

2626

Total Return Performance by SectorSince Manager Inception (31 October 2008)

The representative portfolio is an account in the composite we believe most closely reflects current portfolio management style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of the composite and of the other accounts in the composite. Information regarding the representative portfolio and the other accounts in the composite is available upon request.Supplemental information.Returns shown with gross dividends reinvested.Numbers may not add to 100% due to rounding; all numbers are percentages.Note: Analysis represents the equity-only performance of the portfolio as calculated by the Wilshire Atlas attribution model, and is exclusive of cash, trusts, mutual funds, de-listed securities and other non-equity holdings. Returns will not match official TRP performance because Wilshire uses different pricing and exchange rate sources and does not capture intra-day trading or fair-value pricing. 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. Source: Wilshire Atlas, MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P make changes to the GICS structure. The last change occurred on July 1, 2010. T. Rowe Price will adhere to all future updates to GICS for prospective reporting. Figures are shown gross of fees. Past performance cannot guarantee future results.

Global Large-Cap Equity Representative Portfolio By SectorAs of 30 September 2012, in US Dollars

Stock picking has been strong across global sectors. The positive alpha has been driven almost entirely by stock picking which is consistent with the intended strategy over time.

Total Technology Financials Discretionary Industrials Energy Health Care Utilities Telecom Staples Materials

Over (Under) weight -- 4.3 2.4 1.4 1.6 -3.5 1.4 -1.7 -2.3 -0.8 -2.9

Portfolio Weight Ending 100.0 17.5 22.6 10.5 10.5 8.5 11.5 1.6 2.7 10.5 4.0

Index Weight Ending 100.0 13.2 20.2 9.0 8.9 12.0 10.1 3.3 5.1 11.3 7.0

Portfolio Performance 17.6 23.6 13.2 24.5 20.0 12.7 16.4 4.5 20.9 19.1 19.7

Index Performance 11.6 17.0 6.4 16.8 12.4 9.8 12.1 2.4 13.2 15.2 14.2

2727

Total Return Performance by RegionSince Manager Inception (31 October 2008)

Global Large-Cap Equity Representative Portfolio1 By RegionAs of 30 September 2012, in US Dollars

Total North America Developed Europe Japan Emerging Markets Developed Asia ex-Japan

Over (Under) weight -- -2.0 -4.9 -4.9 12.9 -1.1

Portfolio Weight Ending 100.0 49.5 18.5 2.1 26.1 3.8

Index Weight Ending 100.0 51.6 23.3 6.9 13.2 5.0

Portfolio Performance 17.6 19.7 11.6 17.5 24.1 24.8

Index Performance 11.6 12.6 8.7 3.1 17.9 21.9

1The representative portfolio is an account in the composite we believe most closely reflects current portfolio management style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of the composite and of the other accounts in the composite. Information regarding the representative portfolio and the other accounts in the composite is available upon request.Supplemental information.Returns shown with gross dividends reinvested.Numbers may not add to 100% due to rounding; all numbers are percentages.Note: Analysis represents the equity-only performance of the portfolio as calculated by the Wilshire Atlas attribution model, and is exclusive of cash, trusts, mutual funds, de-listed securities and other non-equity holdings. Returns will not match official TRP performance because Wilshire uses different pricing and exchange rate sources and does not capture intra-day trading or fair- value pricing. 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. Source: Wilshire Atlas, Analysis by T. Rowe Price Associates, Inc. Figures are shown gross of fees. Past performance cannot guarantee future results.

2828

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f 2017f0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

EM GDP Growth (Left Axis)DM GDP Growth (Left Axis)EM Share of Global GDP (Right Axis)

As of 10 October 2012

Emerging markets have taken considerable share of global GDP over the past decade and continue to outgrow developed world counterparts. EM growth can be accessed through some developed

world companies, but direct exposure is necessary for many of the most attractive areas of growth.

Figures based on projections in U.S. Dollars from the IMF World Economic Outlook Database, released April 17, 2012Source: International Monetary Fund, T. Rowe Price

Emerging Markets – Gaining Share of GDP Through Growth

2929

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jun-92 Jun-95 Jun-98 Jun-01 Jun-04 Jun-07 Jun-10

MSCI Emerging Markets P/BV

MSCI World P/BV

TOPIX 500 P/BV




The ‘Great’ Japanese Equity Market De-Rating

4

54

104

154

204

254

Jun-92 Jun-95 Jun-98 Jun-01 Jun-04 Jun-07 Jun-10

MSCI Emerging Markets Index IBES Average 12-Month P/E

MSCI World Index IBES Average 12-Month P/E

TOPIX 500




Price/Earnings Ratio (x) Price/Book Value (x)


The prolonged pain experienced by Japanese equity market investors has its roots in a stagnant economy, but also the length of time it has taken valuations to reflect this growth

backdrop. Sources: IBES, FactSet, MSCI, Goldman Sachs ResearchNotes: Negative P/E data points excluded for TOPIX 500

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The Long Cycle of Equity and Bond Returns

-10%

-5%

0%

5%

10%

15%

20%

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Annualized real return 10-year holding period

Annualized real total return of S&P 500(Rolling 10-year)

Source: Robert Shiller, Datastream, Goldman Sachs Global ECS Research (most recent data available)

-10%

-5%

0%

5%

10%

15%

20%

25%

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Annualized excess return 10-year holding period

Annualized excess return of S&P 500

Not only have equities disappointed in isolation, but relative performance versus government bonds has been as poor as at any point in the past century.

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The Rise and Fall of the “Equity Cult”

-5%

0%

5%

10%

15%

20%

1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s Total

Equities real returns

Bonds real returns

US Real Annual Returns by Decade(%)

Equity cult begins

Source: Global Financial Data, Factset, CIRA

The lost decade catalyses the end of the

equity cult?

The magnitude of equity market disappointment in isolation and versus bonds does appear to have catalysed a shift away from equities following 50 years of investor dedication.

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“Lost Decades” and Mean Reversion in the Past

Source: Robert Shiller Data, Goldman Sachs Global ECS Research

Investment Period and Real Return (%)

Year Invested 10y Real Return (Annualised) from Column 1 Date after 10y Period 10y Real Return (Annualised)

from Column 31908 -0.2 1918 6.71909 -1.3 1919 7.41910 -2.8 1920 16.81911 -3.6 1921 19.91912 -0.5 1922 18.31929 -0.1 1939 2.11964 -1.2 1974 1.21965 -2.2 1975 2.61966 -0.4 1976 0.01967 -1.8 1977 -0.21968 -2.8 1978 7.21969 -2.4 1979 6.91971 -1.2 1981 14.01972 -2.9 1982 20.11998 0.0 2008 N/A1999 -4.1 2009 N/A2000 -2.7 2010 N/A

US Equity History 1900-2011

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The Relationship Between Equity Returns and GDP Growth

Equity returns include dividends. Equity returns are not based on an index, rather the analysis used returns for stocks traded on the primary exchange within each country mentioned.Past performance cannot guarantee future results. It is not possible to invest directly in an index.Sources: Credit Suisse Global Investment Research Yearbook 2012, Dimson, Marsh, and Staunton data, IMF, analysis by T. Rowe Price.

As of December 31, 2011

3.6%

5.7%

7.2%

4.1%

6.2%

4.8%

6.1%

4.9%

4.1%

5.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Japan Canada Australia Norw ay U.S. Netherlands Sw eden Denmark Sw itzerland U.K.

Equity Return

Real GDP Grow th

3434

Markets Will Remain Volatile, Stock Correlations Have Risen

Intra-Stock Correlations1 in the S&P 500 IndexDecember 1989 to September 2012 (Monthly Observations)

Source: T. Rowe Price1Intra-stock represent the average pair-wise correlation of returns over 90-day periods rolling monthly

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Sep-89 Aug-92 Jun-95 Apr-98 Feb-01 Dec-03 Oct-06 Aug-09 Jun-12

Oct ’89 to Jan ’94S&P 500 Return: +61.8%

Nov ’97 to Sep ’00S&P 500 Return: +50.4%

Oct ’02 to Jan ’07S&P 500 Return: +75.4%

Dec ’08 to Feb ’11S&P 500 Return: +54.1%

Source: Factset

Correlations Have Risen

Volatility Levels Have Been Elevated – CBOE Market Volatility IndexDecember 1989 to September 2012 (Monthly Observations)

0

10

20

30

40

50

60

70

Dec-90 Oct-92 Jul-94 May-96 Mar-98 Dec-99 Sep-01 Jul-03 Apr-05 Feb-07 Nov-08 Sep-10 Jun-12

3535

1 As of 29 September 2012 per the The Economist2 As of October 2012 release of IMF World Economic Outlook via Factset3 As of 30 September 2012 per the CIA World Factbook (2011 est.)Sources: IMF, The Economist, CIA World Factbook, World Bank

A Sovereign Comparison


Europe United Kingdom

United States Japan Australia Canada Brazil Russia India

China

Inflation Rate (CPI) 1 2.6% 2.5% 1.7% -0.4% 1.2% 1.2% 5.2% 6.0% 10.0% 2.0%

Savings Rate(as a % of GDP)2 19.9% 11.4% 13.1% 21.9% 24.3% 20.3% 17.6% 28.7% 32.2% 50.1%

Investment Rate(as a % of GDP)2 18.7% 14.7% 16.2% 20.3% 28.4% 23.7% 20.2% 23.5% 36.% 47.8%

Current Account Balance(as a % of 2011 GDP) 1 0.4% -2.1% -3.2% 1.2% -3.8% -2.7% -2.7% 4.4% -4.4% 2.8%

Budget Balance (as a % of 2011 GDP) 1 -3.5% -8.4% -7.6% -9.1% -0.7% -3.4% -2.5% -0.8% -5.6% -2.4%

Debt to GDP2 73.4% 83.7% 83.8% 135.4% 11.6% 35.8% 34.4% 8.3%3 48.5%3 43.5%3

Short-term Rates 1 0.22% 0.61% 0.36% 0.19% 3.90% 1.27% 7.26% 7.50% 8.15% 3.69%

Projected 2012 Real GDP Growth2 -0.3% 0.8% 2.1% 2.0% 3.0% 2.1% 3.0% 4.0% 6.9% 8.2%

3636

1 Source: MSCI and Factset Research Services2 Source: The Economist as of 30 September 2012 3 New series of 10-year government bond; source: The Economist4 Dollar-denominated; source: The Economist5 5-year yield; source: The Economist

Equity Market Comparison

Europe United Kingdom

United States Japan Australia Canada Emerging

Markets Brazil Russia India China

1 Year Forward PE1 11.75 11.16 14.06 14.16 13.17 14.45 11.34 11.92 5.16 15.37 9.74

2 Year Forward PE1 10.43 10.18 12.60 10.89 12.12 12.62 10.05 10.26 5.19 13.68 8.80

Price/Book Value1 1.42 2.17 2.17 0.90 1.71 1.74 1.52 1.35 0.74 2.44 1.44

ROE1 12.1% 14.4% 15.4% 6.6% 13.0% 12.0% 13.5% 11.4% 14.4% 15.9% 14.8%

EPS Growth1 0.5% -2.5% 5.3% 31.7% 2.1% 0.3% 4.1% -16.4% -9.1% 9.5% 7.8%

Estimated Net Dividend Yield1 4.0% 4.1% 2.1% 2.7% 5.0% 2.9% 2.9% 4.0% 3.6% 1.5% 3.3%

Ten Year Rate2

(Local Currency) 1.45% 1.76% 1.62% 0.78% 2.98% 1.75% n/a 9.57%3 8.13% 8.17%4 3.16%5

As of 30 September 2012.

3737

Fee Schedule

Global Large-Cap Equity CompositeAs of 30 September 2012Figures Shown in USD

The Global Large-Cap Equity Composite seeks long-term capital appreciation by investing primarily in a diversified portfolio of transferable equity and equity-related securities of larger cap companies listed on the world’s stock markets. The portfolio may include investments in the securities of companies listed on the stock exchange of developed and developing countries. (Created October 2008)

First 50 Million 60 Basis Points

Next 50 Million 55 Basis Points

Above 100 Million 50 Basis Points on all assets1

Above 200 Million 45 Basis Points on all assets1

Minimum Separate Account Size 50 Million

1 A transitional credit is applied to the fee schedule as assets approach or fall below the breakpoint.

3838

Disclaimers

Issued by T. Rowe Price International Ltd, 60 Queen Victoria Street, London EC4N 4TZ, which is authorised and regulated by the UK Financial Services Authority (the "FSA"). This material is not intended for use by Retail Clients, as defined by the FSA.

Issued in Switzerland by T. Rowe Price (Switzerland) GmbH ("TRPSWISS"), Talstrasse 65, 6th Floor, 8001 Zurich, Switzerland. Thismaterial is not intended for use by non-institutional clients and may not be redistributed without prior written consent from TRPSWISS.

T. Rowe Price, Invest With Confidence and the Bighorn Sheep logo are trademarks and/or registered trademark of T. Rowe Price Group, Inc. in the European Union, Japan and Australia and other countries. This material was developed and produced in the United Kingdom.

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