US LARGE-CAP GROWTH EQUITY STRATEGY · US LARGE-CAP GROWTH EQUITY STRATEGY PRESENTATION TO THE WATER & POWER EMPLOYEES’ RETIREMENT PLAN ... We rely on independent research and on-

US LARGE-CAP GROWTH EQUITY STRATEGYPRESENTATION TO THE WATER & POWER EMPLOYEES’ RETIREMENT PLAN10 APRIL 2019

For The Water & Power Employees’ Retirement Plan only. Not for further distribution.

Ron Taylor Portfolio Specialist

Meredith EmpieInstitutional Client Service Executive

John Plowright, CFAInstitutional Client Service Executive

Taymour Tamaddon, CFAPortfolio Manager

T. ROWE PRICE

AustraliaLevel 27101 Collins StreetMelbourne VIC 3000Australia+61.3.9653.7402

Australia Level 50, Governor Phillip Tower 1 Farrer Place, Suite 50BSydney NSW 2000Australia+61.2.8667.5700

Canada Suite 4240, 77 King Street WestTD North TowerP.O. Box 87Toronto, ON M5K 1G8Canada+1.416.360.5777

Denmark Axeltorv 2F, 7th. Floor,1609 København VDenmark+45.33.36.05.00

GermanyNeue Rothofstrasse 19 60313 FrankfurtGermany+49.69.24437.1900

Hong Kong 21/F Jardine House1 Connaught Place Central, Hong Kong+852.2536.7800

Italy5th floorVia San Prospero 120121 MilanItaly+39.023.0300.200

JapanGranTokyo South Tower 7F9-2, Marunouchi 1-chome,Chiyoda-ku, Tokyo100-6607, Japan+81.3.6758.3800

Luxembourg 35 Boulevard Prince Henri3rd Floor L-1724 LuxembourgGrand Duchy of Luxembourg+352.27.47.251

Netherlands Strawinskylaan 1433WTC Tower B Level 141077 XX AmsterdamNetherlands+31.20.333.6200

Singapore 501 Orchard Road10-02 Wheelock PlaceSingapore 238880+65.6836.0098

SpainTorre EuropaPaseo de la Castellana 95–1528046 MadridSpain+34.91.418.69.50

Sweden Kungsgatan 8111 43 StockholmSweden+46-85-025-65-93

Switzerland Talstrasse 65, 6th Floor8001 ZurichSwitzerland+41.44.227.1550

United Arab Emirates Dubai International Financial CentreThe Gate, Level 15, Office 24PO Box 482023DubaiUnited Arab Emirates+971.4.4019266

United Kingdom60 Queen Victoria StreetLondon, EC4N 4TZUnited Kingdom+44.20.7651.8200

United States 100 East Pratt StreetBaltimore, MD 21202United States+1.410.345.2000

T. ROWE PRICE

T. ROWE PRICE—PRESENTERS

Taymour Tamaddon, CFAPortfolio Manager

15 years of investment experience

14 years with T. Rowe Price

Ron Taylor Portfolio Specialist

30 years of investment experience


Meredith Empie Institutional Client Service Associate

15 years of industry experience


John Plowright, CFA Institutional Client Service Executive

27 years of industry experience


T. ROWE PRICE

TABLE OF CONTENTS

1 Company Overview

2 Investment Discipline and Process

3 Market Overview

4 Performance Review

5 Portfolio Review and Characteristics

6 Fee Schedules

7 Additional Information and Disclosures

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COMPANY OVERVIEW

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A GLOBAL ASSET MANAGER FOCUSED ON CLIENT SUCCESS

1 Firmwide AUM includes assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.2 83 portfolio managers, 24 associate portfolio managers, 10 regional portfolio managers, 12 sector portfolio managers, 165 investment analysts/credit analysts, 49 quantitative analysts, 14 solutions associates, 50 associate analysts, 32 portfolio specialists/generalists, 2 strategists, 9 specialty analysts, 64 traders, 14 trading analysts, 2 economists, 54 portfolio modeling associates, and 23 management associates.

Stable and independent organization with zero long-term debt.

This helps us to operate with a long-term view and to continually reinvest in our business and investment capabilities, so that we can better serve our clients.

Managing a wide range of assets for a diverse client base.

Our investment capabilities span equity, fixed income, and multi-asset strategies across capitalizations, sectors, styles, and regions.

Providing more than surface-level analysis; we go beyond the numbers.

We rely on independent research and on-site evaluations, where we can ask the right questions to make skilled judgments about where a company stands today and where it could go in the future.

Highly committed to putting client interests first.

For more than 80 years, we have partnered with our clients to develop investment solutions to meet their needs and deliver sustainable long-term investment results.

962.3billion USD in assets under management1

607investment professionals worldwide2

16Local presence in

countries

7,000Over

associates worldwide

17years portfolio manager average tenure

As of 31 December 2018

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FOCUSED ON ATTRACTING AND RETAINING TOP INVESTMENT TALENTThrough All Market CyclesAs of 31 December 2018

122

206263

34580

98

146

197

12

17

65

2002 2007 2012 2018

Multi-Asset ProfessionalsFixed Income ProfessionalsEquity Professionals

202

316

426

6071

9SYDNEY

6SINGAPORE

41HONG KONG

7TOKYO

123EUROPE

421U.S.2

607INVESTMENT PROFESSIONALS

WORLDWIDE1

1 83 portfolio managers, 24 associate portfolio managers, 10 regional portfolio managers, 12 sector portfolio managers, 165 investment analysts/credit analysts, 49 quantitative analysts, 14 solutions associates, 50 associate analysts, 32 portfolio specialists/generalists, 2 strategists, 9 specialty analysts, 64 traders, 14 trading analysts, 2 economists, 54 portfolio modeling associates, and 23 management associates.

2 Count includes 411 Baltimore-based associates, 4 San Francisco-based associates, and 6 Philadelphia-based associates. Philadelphia-based associates joined the firm through a U.S. high yield fund acquisition in May 2017, and their research remains fully separate and distinct from T. Rowe Price’s existing high yield platform.

Investment Professionals Headcount2002–2018

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RECENT INSIGHTS AND PERSPECTIVES


Emerging Markets Discovery Equity Strategy: Finding Fortune in the Forgotten

Crisis or No Crisis? Is Value Investing Dead or Poised for

Revival?Webcast Replay: 17 January 2019 Technology Innovation and

Navigating Global Disruption Speakers: David Eiswert, Joel Grant,

Emily Scudder, and Jennifer O’Hara Martin

EQUITY INSIGHTS

The U.S. Economy: No Longer Exceptional

Positioning for a Pause in Fed Rate Hikes

Growth of BBB Bonds: Keeping Risks in Perspective

Trade War Threatens Key Chinese Industries

FIXED INCOME INSIGHTS

Asset Allocation Insights: Supportive Fundamentals, Attractive Valuations in Emerging Markets

Global Asset Allocation Viewpoints

Portfolio Toolkit: Managed Volatility Strategies

MULTI-ASSET INSIGHTS What's Behind the December Sell-Off and What's Next?

2019 Global Market Outlook: Navigating Global Disruption

In 2019, Japanese Equities Still Have Plenty to Offer

Treasury Yield Curve – What Does a Flattening Yield Curve Mean?

THE BIG PICTURE

A Different Perspective on Sequence-of-Returns Risk Around Retirement

Full Findings: Advancing the Way We Think About Perceptions of Risk and Achieving Outcomes

The Value of the 401(k) Study

Webinar Replay: 7 November 2018

Delivering Retirement Benefits to Healthcare and Higher Education Employees

Speakers: Michael Davis, David C. Kaleda, and Michael A. Webb

DEFINED CONTRIBUTION

INSTITUTIONAL WEBSITESubscribe to receive periodic updates on investment strategies, market commentary, and insights.

troweprice.com/institutional

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Institutional Client Service:John D. Plowright, CFAPhone: 415-772-1117

E-mail: [email protected]

Coordinates overall relationship management activities

Primary point of contact providing access to broad firm resources

Ultimate accountability for client satisfaction

Meredith EmpiePhone: 415-772-1118


Partners on relationship management activities

Assists with coordination of portfolio reviews and reporting

Supports client-specific requests and day-to-day servicing

Institutional Client Operations:Matt WylanPhone: 410-345-6593


Key contact during initial onboarding and for future cash flows

Operational liaison with legal, investments, and custodian

Coordinates review of legal agreements and contracts

Institutional Sales:Ken BrooksPhone: 415-772-1104


Partners with client service team to share intellectual capital, industry insights, etc.

Leads investment solutions dialogue in areas beyond current mandate(s)

THE WATER & POWER EMPLOYEES’ RETIREMENT PLAN—RELATIONSHIP MANAGEMENT TEAM

A dedicated team helping you meet your overall objectives.

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CLIENT OBJECTIVE

Objective Seeks to provide long-term capital appreciation by investing primarily in common

stocks of large growth companies.

Mandate US Large-Cap Growth Equity Strategy: Separately Managed Portfolio

Strategy Assets as of 31 December 2018: 39 Billion USD1

Benchmark Russell 1000 Growth Index

Investment Guidelines No more than 5% of portfolio may be invested in any one issue, unless it represents

more than 5% of index, in which case the portfolio may invest up to 125% of index weight.

All foreign securities, except for Benefit Driven Incorporations (BDIs) included in the Russell indices, are prohibited.

1 The total US Large-Cap Growth Equity Strategy assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

The Water & Power Employees’ Retirement Plan:Inception value as of 16 April 2010 360,783,756 USD

Contributions 30,998,937

Withdrawals 343,044,405

Market Appreciation 716,007,012 Market Value as of 28 February 2019 764,745,300

The Retiree Health Benefits Fund :Inception value as of 16 April 2010 50,894,003 USD

Contributions 9,455,219

Withdrawals 51,106,787

Market Appreciation 119,532,119 Market Value as of 28 February 2019 128,774,554

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86.3B USD

39.0B USD

78.6B USD

U.S. LARGE-CAP GROWTH ASSETS UNDER MANAGEMENT

TOTAL U.S. LARGE-CAP GROWTH EQUITY ASSETS: 204.0 BILLION USD1

US LARGE-CAP GROWTH EQUITY STRATEGY ASSETS: 39.0 BILLION USD2

As of 31 December 2018 As of 31 December 2018

1 The combined U.S. Large-Cap Growth Equity assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.2 The total US Large-Cap Growth Equity Strategy assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.3 Corporate, Public, Non-Profit, Taft-Hartley, Endowments/Foundations, and Sub-Advisory clients.4 Includes a U.S.-registered mutual fund and a common trust fund.

Strategy assets under management for the T. Rowe Price U.S.-registered mutual funds and common trust funds are calculated based on the closing price of the security in its respective market and may differ from the net asset value of the fund. Numbers may not total due to rounding.

1,769.1M USD

16,902.1M USD4

1,403.1M USD

18,957.5M USD3

Large-Cap Growth investing is a significant business for T. Rowe Price.

US Large-Cap Growth Equity Strategy

US Large-Cap Core Growth Equity Strategy

US Growth Stock Strategy

U.S. Separate Accounts

Non-U.S. Separate Accounts

U.S. Institutional Commingled Funds

Non-U.S. Institutional Commingled Funds

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INVESTMENT DISCIPLINE AND PROCESS

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Portfolio Management TeamStability | Depth | Collaboration

Taymour Tamaddon, CFA

Portfolio Manager US Large-Cap Growth Equity Strategy (LCG)

David Rowlett, CFA Associate Portfolio

Manager US Large-Cap Growth Equity Strategy (LCG)

Joe Fath, CPA Portfolio Manager

US Growth Stock Strategy (GSS)

Larry Puglia, CFA, CPA Portfolio Manager

US Large-Cap Core Growth Equity Strategy

(LCCG)

Ronald Taylor Portfolio Specialist

Craig Watson, CPA Portfolio Specialist

15 years of investment experience 14 years with

T. Rowe Price B.S., Cornell

University M.B.A., Tuck School of

Business at Dartmouth


T. Rowe Price B.B.A., University of

Georgia M.B.A., University of

North Carolina, Kenan-Flagler Business School


T. Rowe Price B.S., University of

Illinois M.B.A., University of

Pennsylvania, The Wharton School


T. Rowe Price B.B.A., University of

Notre Dame M.B.A., University of

Virginia, Darden School of Business


T. Rowe Price B.A., University of

California, Los Angeles M.B.A., Harvard

Business School


T. Rowe Price B.S., Hampton

University M.B.A., University of

Pennsylvania, The Wharton School

US LARGE-CAP GROWTH EQUITY INVESTMENT TEAM As of 31 December 2018

Equity Research Team170 Research Analysts | Industry Specialists1

Extensive collaboration among investment professionals enhances idea generation. 1 12 sector portfolio managers, 101 research analysts, 44 associate research analysts, 7 quantitative analysts, and 6 specialty analysts as of 31 December 2018.

US Large-Cap Growth Equity Strategy

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HEADS OF EQUITY ASSOCIATE HEADS OF EMEA EQUITY DIRECTORS OF EQUITY RESEARCH ASSOCIATE DIRECTORS OF

EQUITY RESEARCH Christopher D. AldersonCo-Head of Global EquityHead of International Equity

HKG Oliver Bell, IMCEmerging Markets

LON Kamran BaigEMEA and Latin America

LON Tetsuji Inoue, CPAAsia

HKG Jason Polun, CFANorth America

BAL Kes Visuvalingam, CFAAsia

SGP Jai KapadiaAsia

HKG Tobias Mueller, CFADeveloped Europe

LON

Eric L. Veiel, CFACo-Head of Global EquityHead of U.S. Equity

BAL Mitchell Todd, CA Developed Markets

LON Joshua NelsonNorth America

BAL Stephon Jackson, CFADeveloped Europe

LON Maria Elena DrewResponsible Investing

LON Thomas Watson, CFA North America

BAL Ryan MartynAustralia

SYD

EQUITY RESEARCH TEAM

170 Equity Research Professionals worldwide4

HEALTH CAREZiad Bakri, M.D., CFA1,2 BALU.S. BiotechMelissa Gallagher, Ph.D. LONOUS Pharma/BiotechJohn Hall, Ph.D. BALU.S. SMID BiotechJeffrey Holford, Ph.D., ACA BALPharmaRachel Jonas BALU.S. SMID Health CareAnne Daub BALBiotechBin Shen, CFA LONEuro. Healthcare Services & MedtechDai Wang HKGChinese Health CareJon Wood, CFA BALU.S. Medical Devices/ToolsRouven Wool-Lewis, Ph.D. BALU.S. Services & HospitalsNina Xu BALU.S. Services & Equipment

INDUSTRIALSPeter Bates, CFA1,2 BALU.S. ConglomeratesJason Adams BALU.S. Aerospace and DefenseJoe Bond LONEurope UtilitiesAndrew Chang SGPJapanese IndustrialsSimon Cheng, CFA, CPA HKGGreater China Industrials Andrew Davis BALU.S. TransportsRyan Ferro, CFA BALU.S. SMID IndustrialsJoel Grant, CFA BALU.S. AutosGianluca Guicciardi, CFA LONCapital GoodsDan Hirsch, CFA BALU.S. IndustrialsCurt Organt, CFA1 BALU.S. Small-CapVivek Rajeswaran, CFA BALMachinery & Oil ServicesMelanie Rizzo, CFA BALU.S. Trucking/MachineryEunbin Song, CFA HKGAsia Ex-Japan IndustrialsRupinder Vig LONCapital GoodsAntonio Zanella, CFA LONInfrastructure, Paper & Packaging, Midcap

TECHNOLOGYKen Allen1,2 BALU.S. Hardware/SoftwareJoshua Spencer, CFA1,3 BALSector Team LeaderWilliam Chen HKGGreater China Tech & AutomationGreg Dunham, CFA BALU.S. SoftwareTobias Mueller, CFA LONEurope Semi./SoftwareDom Rizzo LONEurope Semi./SoftwareEmily Scudder, CFA, CPA BALU.S. HardwareAlan Tu, CFA SFOU.S. SoftwareAnthony Wang BALU.S. Semi.Hiroshi Watanabe, CFA1 TOKJapan SMID Tech & Industrials Alison Yip HKGAsia Ex-Japan Tech Hardware

MEDIA/TELECOMPaul Greene1,2 BALU.S. Advertising/InternetPaul Cho SFOU.S. Cable/SatelliteAden Lau SGPAsia Ex-Japan Telecom/Fin.Jacqueline Liu HKGAsia Ex-Japan InternetCorey Shull, CFA BALU.S. Media/InternetJim Stillwagon BALU.S. Advertising/MediaChristopher Whitehouse LONEurope Media/Telecom

CONSUMER/RETAILJason Nogueira, CFA1,3 BALSector Team LeaderPaulina Amieva BALLatin America GeneralistTim Bei, CFA SFOU.S. Consumer DiscretionaryEric DeVilbiss, CFA BALU.S. RestaurantsAmanda Hall, CFA LONEurope ConsumerMichael Jacobs TOKSMID Japan/Consumer & ServicesJacob Kann, CFA BALDiscretionaryRekha Marda BALU.S. Food Retail/DurablesSridhar Nishtala SGPAsia Ex-Japan Consumer Staples & DiscretionaryRobert Quinn, Jr. BALU.S. Consumer StaplesSebastian Schrott LONEuropean Luxury/RetailVivian Si BALU.S. Mass Merch./ApparelBrian Solomon, CFA BALU.S. Cruise/LodgingKonstantin Stoev, CFA LONEuropean Staples and AutoJohn Williams, CFA BALLarge-Cap Consumer StaplesAshley Woodruff, CFA BALBranded Apparel & FootwearEric Yuan HKGGreater China Consumer Staples & Discretionary

FINANCIAL SERVICESGabriel Solomon1,2 BALU.S. Money Center/Insur.Malik Asif1 LONEMEA BanksJon Casper BALU.S. FinancialsVincent DeAugustino, CFA BALU.S. Banks & Specialty FinanceChristopher Fortune, CFA BALU.S. Small-Cap BanksTakanori Kobayashi TOKJapan FinancialsGregory Locraft BALU.S. P&C InsuranceJihong Min SGPAsia Ex-Japan FinancialsJoe Mlinac, CFA BALU.S. BanksThibault Nardin LONEurope BanksJeff Nathan BALU.S. HomebuildersMatt Snowling, CFA BALU.S. Asset Managers/BrokersZenon Voyiatzis LONEurope Insur./Financials

REAL ESTATENina Jones, CPA1,3 BALSector Team LeaderDante Pearson BALU.S. Real EstatePreeta Ragavan, CFA BALU.S. Real Estate

REGIONAL GENERALISTSUlle Adamson, CFA1 LONEMEAMartin Baylac LONLatin AmericaArchibald Ciganer, CFA1 TOKJapan Transports/ConsumerAnouk Dey, CFA BALU.S. SMID-CapDawei Feng, CFA HKGGreater China SMID-CapVishnu Gopal HKGIndia & ASEAN Small-CapBen Griffiths, CFA1 LONEurope Small-CapNabil Hanano, CFA BALEuropeHiromasa Ikeda HKGJapan SMID Tech & IndustrialsTetsuji Inoue, CPA HKGJapan Real Estate and TechRandal Jenneke1 SYDAustralia Media/ConsumerJai Kapadia HKGAsia Real Estate/Conglom.Mark Lawrence, CFA LONEMEAJohannes Loefstrand LONEMEAOxana Lyalina, CFA LONEMEAAaron Mazur SYDAustralia Media/Consumer DiscretionaryMichael Niedzielski LONEurope Small-CapPaul O'Sullivan, ACA SYDAustralia Financials/H.C.Seun Oyegunle, CFA LONEMEAAlexander Roik, CFA BALSMID ValueSin Dee Tan, CFA LONEurope Small-CapChris Vost, CFA LONLatin AmericaVerena Wachnitz, CFA1 LONLatin AmericaMarta Yago LONLatin America

1 Also has portfolio management responsibilities.2 Sector Team Leader.3 Sector Team Leader without official research coverage.4 12 sector portfolio managers, 101 research analysts, 44 associate research analysts, 7 quantitative analysts, and 6 specialty analysts as of 31 December 2018.

Highlighted names reflect analysts with coverage responsibilities for portfolio holdings.Subject to change without notice.

BAL Baltimore HKG Hong Kong LON London SFO San Francisco SGP Singapore SYD Sydney TOK TokyoAs of 31 December 2018

201804-467334

NATURAL RESOURCESShawn Driscoll1,3 BALSector Team LeaderBoyko Atanassov, Ph.D., CFA BALCo-Team Lead Metals & MiningHaider Ali HKGAsia Ex-Japan Energy & MaterialsSheena Barbosa, CFA HKGAsia Ex-Japan Utilities/Infra.Ryan Hedrick, CFA BALU.S. Coal/UtilitiesJon Hussey BALU.S. AgricultureShinwoo Kim BALMajors/U.S. E&PMatt Mahon BALU.S. ChemicalsRyan Martyn SYDAustralia Energy/IndustrialsChris O'Neill BALU.S. E&PJohn Qian BALMetals & MiningThomas Shelmerdine SYDAustralian Metals & MiningJohn Sherman BALEuropean Chemicals/Indus.

BUSINESS SERVICESJon Friar1,2 BALU.S. Business ServicesShaun Currie, CFA BALU.S. Business ServicesIan McDonald, CFA BALU.S. Business ServicesMaria Muller LONEurope Bus. Serv.Jared Murphy BALU.S. Bus. Serv./Industrials

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Analysts are industry specialists across capitalization and investment styles

Evaluate impact of all competitors within an industry group

Fundamental, bottom-up approach to company research

Industry and company dynamics, management team quality, and financial fundamentals are central considerations

“Push/pull” relationship between analysts and portfolio managers

Multiple signaling tools communicate analysts’ conviction and urgency

Portfolio managers “stress test” analysts’ recommendations to independently confirm conclusions

Valuation assessment is a key consideration

Compensation of our professionals is closely linked to investment performance

Quantitative measurement of ratings/impact

Qualitative assessment of overall contribution

Performance-based bonuses

Equity participation

FUNDAMENTAL RESEARCH AND ANALYSIS

Extensive analyst interaction across industry groups, sectors, and asset classes promotes a broad perspective and timely decision-making.

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Our experience shows...

Long-term growth in earnings and cash flow drive stockholder returns.

Rapid growth is often fueled by innovation. Innovation drives lasting change. Companies positioned to exploit change are among the most durable growth investments.

Robust investment results can be produced by capitalizing on two inefficiencies in the U.S. large-cap growth universe.

The market systematically overestimates the ability of large U.S. companies to grow at double-digit rates

Short-term momentum and sentiment are often overemphasized by investors

OUR US LARGE-CAP GROWTH PHILOSOPHY

Our objective is to produce robust investment results by understanding and exploiting these inefficiencies.

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US LARGE-CAP GROWTH INVESTMENT PROCESS

1 Sectors representing 10%+ of the Russell 1000 Growth Index. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Our research-driven, bottom-up approach is the engine for our investment idea generation

500 Companies

150-200Companies

80-120Companies

60-75Companies

Superior information and implementation can produce robust investment results.

Quantitative screens Forecasted 10%+ Real

EPS Growth

Historical ROE

Eliminates companies with slow or no long-term growth prospects

Most compelling, highest-conviction ideas over three-year time horizon

Individual position sizes typically range ±5% relative to Russell 1000 Growth Index weighting

Sector weightings generally limited to 0.5X–3.0X of primary1 Russell 1000 Growth Index sector weights

Predicted tracking error target of 400–700 basis points relative to the Russell 1000 Growth Index

Active risk management process to eliminate “unintended bets”

Proprietary industry and company analysis

Analyst inputs to confirm 10%+ Real EPS Growth

Independent stress testing by portfolio management team

Confirm analyst conclusions

Valuation analysis

New information or new insights alter outlook

Unanticipated deterioration in investment fundamentals

Extreme valuation

Generally 8B+ USDmarket cap

Primarily U.S.companies

Sell DisciplinePortfolio

Construction andRisk Management

FundamentalResearch and

AnalysisGrowth ScreensDefining the

Universe

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FUNDAMENTAL RESEARCH ANALYSIS

1 12 sector portfolio managers, 101 research analysts, 44 associate research analysts, 7 quantitative analysts, and 6 specialty analysts as of 31 December 2018.

170 equity research professionals1 worldwide who are industry specialists across capitalization and investment styles.

Industry Analysis Company Analysis

Secular Analysis Cyclical Analysis Qualitative Analysis Quantitative Analysis Valuation Analysis

Industry GrowthProspects

Unit volume growth

Price stability/pricing power

Industry Conditions

Capacity additions/reductions

Demand drivers

Market Position

Market share

Brand/reputation, technology, intellectual property

Cost position/structural advantage

Management Team Quality

Strategy

Capital allocation

Information systems

Financial Strength

Free cash flow generation

Level and direction of margins

Level and direction of ROIC

Balance sheet strength

Confirm Attractive Valuation

Relative valuation

P/FCF

P/E

PEG Ratio

EV/EBITDA

In-depth company analysis provides portfolio managers with sound, long-term investment ideas.

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MARKET OVERVIEW

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1 January 2000 Through 31 December 2018Figures are Calculated in U.S. Dollars

S&P 500 Total Return IndexTHE EQUITY MARKET ROLLER COASTER RIDE

Past performance is not a reliable indicator of future performance. The S&P 500 is made up of primarily large-capitalization companies that represent a broad spectrum of the U.S. economy and a substantial part of the U.S. stock market’s total capitalization.Sources: Standard & Poor’s, T. Rowe Price, and Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. The S&P 500 Index is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and has beenlicensed for use by T. Rowe Price. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is aregistered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). T. Rowe Price is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates,and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500Index.

0

1,000

2,000

3,000

4,000

5,000

6,000

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

S&P 500 Index

% Gain +/-

2,10724 March 2000P/E (forward) = 27.2x

-47% | 1,1099 October 2002

P/E (forward) = 14.9x

+121% | 2,4479 October 2007


-55% | 1,0959 March 2009


31 December 2018P/E (forward) = 14.4x

+355% | 4,984

S&P 500 Valuation Measures 12/31/18 12/31/17 3-Yr Avg. 5-Yr Avg. 10-Yr Avg.Price to Earnings (P/E Forward) 14.4x 18.1x 16.8x 16.4x 14.6xDividend Yield 2.3% 2.0% 2.1% 2.2% 2.2%

Loga

rithm

ic S

cale

(Bas

e 10

)

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1 January 2000 Through 31 December 2018S&P 500 Sector Returns2018: A TALE OF TWO MARKETS

Past performance is not a reliable indicator of future performance. Sources: Standard & Poor’s, Source: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved, and T. Rowe Price

Although all but one sector was up for the first three quarters, only three sectors produced positive returns in 2018.

-5%

13%

5%

2%

-3%-5% -5%

-13% -13% -14% -14%-16%

11%

6%

18%

5%

17% 17%

4%

-3%

6%

3%1%

14%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Tota

l Ret

urn

One Year (Sorted) First Three Quarters

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As of 31 December 2018GROWTH CONTINUED TO OUTPERFORM VALUE

Past performance is not a reliable indicator of future performance. Source: June 1926 – December 1978: Fama/French Benchmark Portfolios representing “Big Value” and “Big Growth.” The Fama/French benchmark portfolios are rebalanced quarterly using twoindependent sorts, on size and book to market. The size breakpoint for “Big” versus “Small” is the median NYSE market equity. The growth/value break point is the 30th and 70th NYSEpercentiles of book to market ratios. January 1979 – Present: Russell 1000 Value and Growth Index monthly total returns. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights relatedto Russell Indexes. Russell® is a registered trademark of Russell Investment Group.

-10%

-5%

0%

5%

10%

15%

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ed R

etur

n D

iffer

ence

(V -

G)

Value Relative Growth Ten-YearAverage-2 Std Dev-1 Std Dev+1 Std Dev+2 Std Dev-1.5 Std Dev

LARGE-CAP VALUE/GROWTHTen Year Periods (Rolling Monthly)

RUSSELL 1000 VALUE P/E RATIOS RELATIVE TO GROWTHDecember 1978 Through December 2018

Most Recent Peak: 1.01x

Current: 0.70x

Average: 0.72x

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

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)

T. ROWE PRICE22

31 March 2009 Through 31 December 2018 S&P 500 Index performance (quintiles of momentum) WINNERS CONTINUED TO RUN

Past performance is not a reliable indicator of future performance. Sources: FactSet and T. Rowe Price. Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. S&P.

Highest quintile of momentum stocks outperformed lowest quintile annually by 19%.

15%

25%

6%

0%

5%

10%

15%

20%

25%

30%

Tota

l Ret

urn

(Ann

ualiz

ed)

S&P 500 Index Quintile 1 (Highest) Quintile 5 (Lowest)

T. ROWE PRICE23

CURRENT BULL MARKET IS LONG

*Bull market defined as a 15% price increase.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet, All Rights Reserved. [Bureau of Economic Analysis]/Haver, and T. Rowe Price. S&P.

241%

0%

50%

100%

150%

200%

250%

300%

350%

400%

0 50 100 150

Pric

e R

etur

n

Months

S&P 500 BULL MARKETS*January 1928 Through December 2018

‘09 - Present

‘90 – ‘00

‘49 – ‘57

‘82 – ‘87

‘32 – ‘33 ‘42 – ‘46

‘35 – ‘37 ‘74 – ‘80

‘02 – ‘07

‘58 – ‘62

‘62 – ‘66‘28 – ‘29

‘38 – ‘39

‘66 – ‘68

‘88 – ‘90

‘70 – ‘72

Current Cycle

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0 1 2 3 4 5 6 7 8 9 10

Cum

ulat

ive

Rea

l GD

P G

row

th

Length in Years

1975 1982 1991 2001 20091971 1980 1961 1958

U.S. GDP GROWTH IN ECONOMIC EXPANSIONSAs of 3Q18

T. ROWE PRICE24

BUT BULL MARKETS DO NOT DIE OF OLD AGE

Past performance is not a reliable indicator of future performance.*Parameters estimated using data from January 1959 to December 2009; recession probabilities predicted using data through December 2018.**Using month-end data, January 1946 to December 2018.Sources: Federal Reserve Bank of New York/Haver, FactSet, and T. Rowe Price. S&P. Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved.

5

10

15

20

25

'95 '98 '01 '04 '07 '10 '13 '16

Pric

e/Ea

rnin

gs M

ultip

le

S&P 500 PRICE TO 12 MONTHS FORWARD EARNINGSOctober 1995 Through December 2018

Average: 15.9x

Current: 14.4x

Time PeriodBear Market

Return (Price)

Length of Decline

(Months)Causes

Jun. '46 -Jun. ’49 -26.2% 37 Economic

Downturn

Aug. '57 -Dec. '57 -16.5% 5 Economic

Downturn

Apr. ‘62 -Jun. '62 -16.1% 3 Excessive

Speculation

Feb. '66 -Sep. '66 -16.1% 7 Exogenous Shock

Dec. '68 –Jun. '70 -32.9% 19

Economic Downturn/

Speculation

Jan. '73 -Sep. '74 -46.2% 21

Economic Downturn/

Exogenous ShockDec. '80 -Jul. '82 -23.8% 20 Economic

Downturn

Sep. '87 -Nov. '87 -30.2% 3

Excessive Speculation/

Exogenous Shock

Jun. ’90 -Oct. ’90 -15.8% 5

Economic Downturn/

Exogenous ShockApr. '00 -Sep. '02 -45.6% 30 Speculation/

Exogenous Shock

Nov. '07 -Feb. '09 -52.6% 16

Economic Downturn/

Speculation

S&P 500 HISTORICAL BEAR MARKETS**1946–2018, bear market defined as a 15% price drop

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

Rec

essi

on P

roba

bilit

y

PROBABILITY OF U.S. RECESSION PREDICTED BY TREASURY SPREAD*12 Months Ahead (moving average)January 1960 Through December 2018

T. ROWE PRICE25

9 March 2009 Through 31 December 2018S&P 500 IndexKEY QUESTION: WHERE DO WE GO FROM HERE?

Sources: FactSet and T. Rowe Price. Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved.

600

1,100

1,600

2,100

2,600

3,100

3,600

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Pric

e ($

)

S&P 500 - Price Scenario A Scenario B Scenario C

Scenario B Some economic softness

Trade relations stabilize, but do not improve

Fed less hawkish

Global economic slowdown

Scenario C No trade deal

Political instability in Washington

Fed tightens

Weakening credit and higher bond spreads

Scenario A No recession

Favorable trade deal

Fed stays on pause

Consumer remains strong

T. ROWE PRICE26

KEY ISSUE: U.S.–CHINA TRADE

Past performance is not a reliable indicator of future performance. *Performance shown consists of an equal-weighted portfolio of the top 15 companies in the S&P 500 Index as of 8/27/2018 with the highest proportion of revenue generated in China.Sources: Strategas Research Partners, FactSet, and T. Rowe Price as of 31 December 2018. S&P. Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved.

90

100

110

120

130

140

150

160

Jan '16 Jul '16 Jan '17 Jul '17 Jan '18 Jul '18

Inde

xed

Perf

orm

ance

(100

= 1

2/31

/201

5)

S&P 500 COMPANIES WITH MOST CHINESE REVENUE EXPOSURE RELATIVE TO THE S&P 500 INDEX*January 2016 Through December 2018

President Trump adjusted trade

policy framework

Vice President Pence gave a

speech on China

Key Question: What is the Trump Administration’s end game with China?

– Three factions within the Trump Administration regarding China trade policy:

1. Free market engagement with China (Mnuchin, Kudlow)

2. Resetting of trade (Lighthizer, Ross)

3. China is a strategic enemy (Navarro, National Security Hawks)

T. ROWE PRICE27

KEY ISSUE: GEOPOLITICAL UNCERTAINTY

Sources: Gallup, Strategas Research Partners, and T. Rowe Price as of 31 December 2018.

Key Questions:– U.S. Passage of USMCA?

Does lack of bipartisan cooperation slow economic growth?

Conclusion of Mueller investigation?

– Global Brexit outcome?

Does instability in France spread?

Does growth in China remain muted?

0

10

20

30

40

50

60

70

80

90

100

Jan '17 Apr '17 Jul '17 Oct '17 Jan '18 Apr '18 Jul '18 Oct '18

Appr

oval

Rat

ing

(%)

PRESIDENT TRUMP'S JOB APPROVAL BY PARTY IDENTIFICATION (GALLUP)January 2017 Through December 2018

Republicans Independents DemocratsRepublicans:

88%

Democrats:6%

Independents: 31%

Republicans: 89%

Independents: 42%

Democrats:13%

T. ROWE PRICE28

KEY ISSUE: FED POLICY

Sources: Strategas Research Partners, FactSet, and T. Rowe Price. Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved.

1.0

1.5

2.0

2.5

3.0

3.5

1Y 2Y 3Y 5Y 7Y 10Y

Yiel

d (%

)

Maturity

U.S. Treasury Yield Curve—As of 12/31/18



INTERMEDIATE PORTION OF CURVE INVERTED ON DECEMBER 3

1.9

2.1

2.3

2.5

2.7

2.9

Yiel

d (%

)

POWELL FLIPS ON FUTURE RATE HIKES?As of 31 December 2018 U.S. Treasury Yield – 2-Yr. YTM

OCTOBER 3 “We’re a long way from neutral at this point, probably”

NOVEMBER 28Interest rates “remain just below the broad range of estimates of the level that would be neutral for the economy—that is, neither speeding up nor slowing down growth”

Key Questions: Will the Fed overshoot?

T. ROWE PRICE29

KEY ISSUE: BUSINESS AND CONSUMER CONFIDENCE

Sources: [Bureau of Economic Analysis, Bureau of Labor Statistics, Business Roundtable]/Haver, [University of Michigan Survey of Consumers] via FactSet, and T. Rowe Price.

50

60

70

80

90

100

110

120

-5

5

15

'10 '11 '12 '13 '14 '15 '16 '17 '18Survey D

iffusion Index (+50 = Expansion)

Seas

onal

ly A

djus

ted

Year

-Ove

r-Ye

ar G

row

th (%

)

CEO CONFIDENCE VS.INVESTMENT SPENDING1Q 2010 Through 4Q 2018

Real Private Fixed InvestmentCEO Economic Outlook Survey

Nov ’16 U.S. Election

20

40

60

80

100

120

140

-4%

-2%

0%

2%

4%

6%

8%

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Year

-Ove

r-Ye

ar C

hang

e

CONSUMER CONFIDENCE VS. EXPENDITURESJanuary 2005 Through December 2018

Personal Consumption Expenditures (L)

Consumer Confidence - Survey (R)

Nov ’16 U.S. Election

Key Questions: Does current market uncertainty slow investment and dampen confidence?C

onsumer C

onfidence, 1985 = 100, SA, Index

T. ROWE PRICE30

KEY ISSUE: GROWTH IN GOVERNMENT DEBT

Sources: Haver Analytics [Bureau of Economic Analysis, Congressional Budget Office].


25

35

45

55

65

75

85

95

105

'59 '67 '75 '83 '91 '99 '07 '15

Perc

ent o

f GD

P

GROSS FEDERAL DEBT (% OF GDP) -10

-8

-6

-4

-2

0

2

'59 '67 '75 '83 '91 '99 '07 '15

Perc

ent o

f GD

P (In

vert

ed)

FEDERAL DEFICIT (% OF GDP)

While deficits are high as a % of GDP, debt service at current levels is more in line.

1.0

1.5

2.0

2.5

3.0

3.5

'59 '67 '75 '83 '91 '99 '07 '15

Perc

ent o

f GD

P

FEDERAL INTEREST PAYMENTS (% OF GDP)

Average

T. ROWE PRICE31

OUTLOOK

Expect the current bull market to continue into 2019, though the downside risks have increased.

U.S. economic growth is still on solid footing, but the impact of fiscal and tax policy stimulus will likely wane throughout 2019.

Consumers have benefited from wage growth and low unemployment. Corporate earnings growth are likely to decelerate but remain positive. Energy prices will likely remain pressured as higher North American supply

offsets OPEC production cuts. Valuations are a neutral factor, as they are in-line with long-term historical

averages. Key risks include geopolitics, monetary policy missteps, and protectionist

trade policies.

T. ROWE PRICE32

The specific securities identified and described do not represent all of the securities purchased, sold, or recommended and no assumptions should be made that the securities identified and discussed were or will be profitable.

KEY CONTROVERSIES AND OPPORTUNITIES

TECHNOLOGY SELLOFF Increased volatility caused by data privacy concerns and potential regulatory pressure provided

an opportunity to rebuild positions at attractive valuations (Facebook). Broad selloff in technology related names created opportunities to purchase long-term secular

winners in cloud software (Splunk, VMware, ServiceNow).

HEALTH CARE HEADLINE RISKS Political overlay weighing on many health care stocks as 2020 campaigning begins to ramp.

With medical costs back in focus, managed care companies that are helping deliver more cost-effective health care solutions should remain well positioned (Cigna, Humana, WellCare). Concerns about drug pricing are likely to weigh on therapeutics companies, but innovative

medical devices and equipment manufacturers should come under less scrutiny (Becton Dickinson, Intuitive Surgical, Stryker).

ECONOMIC CONCERNS Monetary policy concerns and tensions on global trade weighed on the market in 2018. Cyclical stocks traded lower on slowing global economic growth and created opportunities to

buy idiosyncratic names with secular tailwinds and valuation support (Aptiv). Ongoing trade conflict with the U.S. exacerbated China’s economic challenges and deeply

discounted high quality names with dominant positions in key secular growth industries.

T. ROWE PRICE33

PERFORMANCE REVIEW

T. ROWE PRICE34

COMPLIANCE CERTIFICATE

T. ROWE PRICE35

COMPLIANCE CERTIFICATE

T. ROWE PRICE36

III. PORTFOLIO PERFORMANCE FOURTH QUARTERThe Water & Power Employees’ Retirement PlanMajor Absolute Contributors Major Absolute DetractorsRed Hat Amazon.comTesla AlphabetVMware Activision BlizzardWorkday MicrosoftMcDonalds Facebook

Past performance is not a reliable indicator of future performance.(N) New Holding. (E) Eliminated. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable. The information shown does not reflect any exchange-traded funds that may be held in the portfolio. Numbers may not total due to rounding. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.

PERFORMANCE SUMMARY AND MARKET UPDATE As of 31 December 2018 Figures are Calculated in U.S. Dollars

IV. PORTFOLIO PERFORMANCE ONE YEARThe Water & Power Employees’ Retirement Plan Major Absolute Contributors Major Absolute DetractorsAmazon.com FacebookMicrosoft Activision BlizzardRed Hat Las Vegas SandsVisa Philip Morris InternationalIntuitive Surgical Aptiv

VI. MARKET OUTLOOKV. SIGNIFICANT TRADES FOURTH QUARTERThe Water & Power Employees’ Retirement PlanMajor Purchases Major SalesFacebook Electronic Arts (E)Eli Lilly (N) Booking HoldingsSplunk Crown Castle International (E)VMware Merck (E)Aptiv NVIDIA (E)

I. MARKET OVERVIEWFourth Quarter One Year

S&P 500 Index -13.52% -4.38%Russell 1000 Growth Index -15.89 -1.51Russell 1000 Value Index -11.72 -8.27Nasdaq -17.54 -3.88Russell 2000 Index -20.20 -11.01

II. SECTOR PERFORMANCE RUSSELL 1000 GROWTH INDEXFourth Quarter

Top Three Performers Bottom Three PerformersUtilities EnergyReal Estate Information TechnologyConsumer Staples Communication Services

One YearTop Three Performers Bottom Three PerformersUtilities EnergyConsumer Discretionary MaterialsInformation Technology Communication Services

Large-cap stocks outperformed small-caps for the quarter Growth stocks underperformed value stocks for the quarter Global economic growth remains a key issue

Economic growth is likely to moderate in 2019 and could challenge cyclically oriented sectors

Inflation and labor costs are rising only gradually despite tighter labor markets, keeping recession risks relatively low, despite the aging cycle

Ongoing trade dispute between the U.S. and China remains a key source of risk

Earnings growth in the U.S. is expected to slow as companies lap the benefit of 2018 corporate tax reform; higher wages and input costs could also pressure profit margins

T. ROWE PRICE37

Periods Ended 31 December 2018 Figures are Calculated in U.S. Dollars

The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index TOTAL RETURN PERFORMANCE

Past performance is not a reliable indicator of future performance. Total returns include all realized and unrealized gains and losses plus income. 1 Performance figures are shown gross of advisory fees. Total returns would be lower as a result of the deduction of such fees.2 Net returns reflect the deduction of advisory fees.

Source: T. Rowe Price Modified Dietz Rate of Return. All investments are subject to risk, including the possible loss of the money you invest.

3 The Value Added is shown as The Water & Power Employees’ Retirement Plan (Net of Fees) minus Russell 1000 Growth Index.4 Client inception date 16 April 2010 through 31 December 2010.

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Annualized

ThreeMonths

One Year

Since Manager Inception

1 Jan 2017ThreeYears

FiveYears

SevenYears

Since Client Inception

16 Apr 2010

The Water & Power Employees’ Retirement Plan (Gross of Fees)1 -13.16% 4.79% 19.65% 14.65% 13.12% 18.13% 14.67%

The Water & Power Employees’ Retirement Plan (Net of Fees)2 -13.24 4.46 19.28 14.28 12.76 17.75 14.30

Russell 1000 Growth Index -15.89 -1.51 13.24 11.15 10.40 14.14 12.56

Value Added (Net of Fees)3 2.65 5.97 6.04 3.13 2.36 3.61 1.74

Calendar Years 20104 2011 2012 2013 2014 2015 2016 2017 2018

The Water & Power Employees’ Retirement Plan (Gross of Fees)1 4.83% -2.03% 19.91% 44.51% 9.26% 12.48% 5.27% 36.61% 4.79%

The Water & Power Employees’ Retirement Plan (Net of Fees)2 4.59 -2.36 19.52 44.06 8.91 12.12 4.92 36.19 4.46

Russell 1000 Growth Index 8.21 2.64 15.26 33.48 13.05 5.67 7.08 30.21 -1.51

Value Added (Net of Fees)3 -3.62 -5.00 4.26 10.58 -4.14 6.45 -2.16 5.98 5.97

T. ROWE PRICE38

Periods Ended 28 February 2019Figures are Calculated in U.S. Dollars

The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index TOTAL RETURN PERFORMANCE



3 The Value Added is shown as The Water & Power Employees’ Retirement Plan (Net of Fees) minus Russell 1000 Growth Index. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Annualized

Quarter-to-Date

One Year



FiveYears

SevenYears


16 Apr 2010

The Water & Power Employees’ Retirement Plan (Gross of Fees)1 13.15% 9.10% 25.00% 24.08% 14.74% 17.95% 15.99%

The Water & Power Employees’ Retirement Plan (Net of Fees)2 13.10 8.75 24.62 23.69 14.38 17.57 15.62

Russell 1000 Growth Index 12.89 6.62 18.67 17.99 12.63 14.41 13.86


T. ROWE PRICE39


The Retiree Health Benefits Fund vs. Russell 1000 Growth Index TOTAL RETURN PERFORMANCE



3 The Value Added is shown as The Retiree Health Benefits Fund (Net of Fees) minus Russell 1000 Growth Index.4 Client inception date 16 April 2010 through 31 December 2010.


Annualized

ThreeMonths

One Year



FiveYears

SevenYears


16 Apr 2010

The Retiree Health Benefits Fund (Gross of Fees)1 -13.17% 4.81% 19.66% 14.65% 13.14% 18.15% 14.69%

The Retiree Health Benefits Fund (Net of Fees)2 -13.24 4.49 19.29 14.29 12.78 17.77 14.32

Russell 1000 Growth Index -15.89 -1.51 13.24 11.15 10.40 14.14 12.56


Calendar Years 20104 2011 2012 2013 2014 2015 2016 2017 2018

The Retiree Health Benefits Fund (Gross of Fees)1 4.77% -1.97% 19.91% 44.56% 9.29% 12.53% 5.26% 36.61% 4.81%

The Retiree Health Benefits Fund (Net of Fees)2 4.52 -2.30 19.52 44.11 8.94 12.17 4.91 36.19 4.49

Russell 1000 Growth Index 8.21 2.64 15.26 33.48 13.05 5.67 7.08 30.21 -1.51

Value Added (Net of Fees)3 -3.69 -4.94 4.26 10.63 -4.11 6.50 -2.17 5.98 6.00

T. ROWE PRICE40


The Retiree Health Benefits Fund vs. Russell 1000 Growth Index TOTAL RETURN PERFORMANCE

Past performance is not a reliable indicator of future performance. Total returns include all realized and unrealized gains and losses plus income.1 Performance figures are shown gross of advisory fees. Total returns would be lower as a result of the deduction of such fees.2 Net returns reflect the deduction of advisory fees.


3 The Value Added is shown as The Retiree Health Benefits Fund (Net of Fees) minus Russell 1000 Growth Index. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Annualized

Quarter-to-Date

One Year



FiveYears

SevenYears


16 Apr 2010

The Retiree Health Benefits Fund (Gross of Fees)1 13.16% 9.12% 25.02% 24.09% 14.76% 17.97% 16.01%

The Retiree Health Benefits Fund (Net of Fees)2 13.10 8.78 24.63 23.70 14.39 17.59 15.63

Russell 1000 Growth Index 12.89 6.62 18.67 17.99 12.63 14.41 13.86


T. ROWE PRICE41

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Val

ue A

dded

-P

erce

ntag

e

ATTRIBUTION ANALYSIS (USD)Three Months Ended 31 December 2018 The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance. Numbers may not total due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Total Value Added

Value Added From Sector Weight

Value Added From Stock Selection

BY SECTOR

TotalInformation Technology

Health Care

Consumer Disc

Industrials & Bus Svcs Utilities Energy Financials Materials

Real Estate

Consumer Staples

Comm Svcs

Over (Under) Weight - -5.03 6.95 5.29 -2.83 1.15 -0.76 -0.22 -1.84 -2.32 -5.06 2.52

Portfolio Weight (Ending) 100.00 26.43 21.24 20.41 9.02 1.15 - 4.18 - - 0.97 14.44

Index Weight (Ending) 100.00 31.46 14.29 15.12 11.85 - 0.76 4.40 1.84 2.32 6.03 11.93

Portfolio Performance -13.20 -10.01 -11.44 -15.41 -14.85 -1.04 - -10.37 - -1.63 -16.83 -21.01

Index Performance -15.89 -18.82 -12.14 -17.15 -16.63 - -28.84 -11.94 -12.01 -1.83 -6.82 -17.30

T. ROWE PRICE42


KEY THREE MONTH PERFORMANCE DRIVERS Three Months Ended 31 December 2018

CONTRIBUTORS Information Technology Stock selection within Information Technology was the dominant driver of strong relative performance during the quarter. Disruptive business models and

technologies within the sector continue to present compelling investment opportunities in our view. Secular demand for public cloud computing services should continue to be a growth driver.

Apple: Shares of Apple sold off due to softer than expected demand for the latest iPhone launch, particularly amongst consumers in China. We hold an underweight position relative to the benchmark due to concerns over saturation and elongation of replacement cycles for smartphones and Apple’s ability to monetize its installed base of users as hardware reaches parity and operating systems become less differentiated.

Red Hat: Shares of Red Hat climbed after the announcement that the company would be acquired by IBM in an effort to gain a foothold in the cloud era of enterprise technology. IBM’s vast amount of technology, services, and distribution capabilities should benefit Red Hat as they attempt to scale their hybrid cloud platform, OpenShift.

VMware: Management guided revenue growth higher than anticipated, reflecting an accelerating IT spending environment as companies continue to modernize their platforms. We expect VMware to gain market share as its new products become more widely adopted within its installed base, in part due to the company’s hybrid cloud initiative and partnership with Amazon Web Services.

Health Care Stock selection and our overweight to Health Care contributed to relative performance during the quarter. We continue to focus on finding opportunities to

take advantage of lasting trends such as managed care industry consolidation, innovations in medical equipment, and robotic technology. Anthem: Improved margins within its Commercial segment, driven by better medical cost performance, caused shares to trade higher. Anthem stands to

benefit from the secular lull in cost trends and stable pricing resulting from the Affordable Care Act. The transition to CVS for pharmacy benefit manager services should provide additional cost savings.

DETRACTORS Consumer Staples Stock selection and our underweight to Consumer Staples detracted from relative performance during the quarter. Philip Morris: Shares of Philip Morris sold off upon news that Altria Group had bought a 35% stake in JUUL, the electronic cigarette manufacturer. JUUL

should benefit from Altria Group’s distribution network and infrastructure, aiding its international growth prospects and potentially posing a threat to Philip Morris. Philip Morris offers an attractive underlying business model, that along with promising reduced risk products, should drive durable earnings growth.

T. ROWE PRICE43

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Val

ue A

dded

-P

erce

ntag

e

ATTRIBUTION ANALYSIS (USD)One Year Ended 31 December 2018 The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance.Numbers may not total due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Total Value Added



BY SECTOR


Consumer Disc

Health Care

Industrials & Bus Svcs Materials Energy Utilities

Real Estate

Consumer Staples Financials

Comm Svcs

Over (Under) Weight - -5.03 5.29 6.95 -2.83 -1.84 -0.76 1.15 -2.32 -5.06 -0.22 2.52

Portfolio Weight (Ending) 100.00 26.43 20.41 21.24 9.02 - - 1.15 - 0.97 4.18 14.44

Index Weight (Ending) 100.00 31.46 15.12 14.29 11.85 1.84 0.76 - 2.32 6.03 4.40 11.93

Portfolio Performance 4.64 17.89 10.45 8.38 -1.93 - - 2.97 1.58 -33.26 -12.21 -13.42

Index Performance -1.51 4.48 5.25 4.05 -10.13 -14.61 -29.91 9.15 -0.25 -5.13 -5.29 -11.11

T. ROWE PRICE44


KEY ONE YEAR PERFORMANCE DRIVERS One Year Ended 31 December 2018

CONTRIBUTORS Information Technology Stock selection within Information Technology was a primary driver for 2018. Red Hat: Shares of Red Hat gained as growing demand for hybrid cloud solutions and a record number of large deals fueled top line growth. Shares

traded higher after the announcement that the company would be acquired by IBM in an effort to gain a foothold in the cloud era of enterprise technology. IBM’s vast amount of technology, services, and distribution capabilities should benefit Red Hat as they attempt to scale their hybrid cloud platform, OpenShift.

Apple: Shares of Apple sold off due to softer than expected demand for the latest iPhone launch, particularly amongst consumers in China. We hold an underweight position relative to the benchmark due to concerns over saturation and elongation of replacement cycles for smartphones and Apple’s ability to monetize its installed base of users as hardware reaches parity and operating systems become less differentiated.

VMware: Shares of VMware benefitted from a robust IT spending environment, with broad based growth across products categories. Shares received an additional lift after Dell elected to scrap its plan for a reverse merger to the relief of VMware investors. We expect VMware to gain market share as its new products become more widely adopted within its installed base, in part due to the company’s hybrid cloud initiative and partnership with Amazon Web Services.

Health Care Stock selection and our overweight to Health Care contributed to relative performance during the year. We continue to focus on finding opportunities to

take advantage of lasting trends such as managed care industry consolidation, innovations in medical equipment, and robotic technology. Intuitive Surgical: Accelerated growth in the number of global procedures being performed by da Vinci, the company’s robotic surgical system, helped

drive shares of Intuitive Surgical higher over the past year. Procedure growth—the engine of the business model—should continue to benefit from the roll out of more affordable systems, which should provide opportunities to expand into many more hospitals.

Industrials & Business Services Stock selection and our underweight to Industrials & Business Services contributed to relative performance for the year. We continue to emphasize unique,

company-specific opportunities that we believe can drive meaningful growth regardless of the economic backdrop. Boeing: Boeing shares climbed higher as operating margins continue to expand thanks to favorable delivery volume and mix within Commercial Aircraft

and better than expected revenue growth from Defense and Services. We believe that the company is well positioned for several years of healthy earnings and free cash flow growth, supported by its robust backlog of orders and tailwinds from secular growth in global air traffic expansion in emerging markets.

DETRACTORS Financials Charles Schwab: Investor sentiment and the fourth quarter market decline weighed on shares of Charles Schwab as industry pricing pressure and

concerns that the Fed’s tightening cycle is coming to an end caused shares to selloff. We believe Charles Schwab can deliver durable earnings growth as it continues to gather assets, utilize scale efficiencies, and grow its bank with low cost brokerage sweep deposits.

T. ROWE PRICE45

-1.00

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ATTRIBUTION ANALYSIS (USD)Three Months Ended 28 February 2019 The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance. Numbers may not total due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Total Value Added



BY SECTOR

TotalIndustrials &

Bus SvcsInformation Technology

Consumer Staples Energy Utilities

Real Estate Materials

Comm Svcs Financials

Consumer Disc

Health Care

Over (Under) Weight - -2.09 -5.00 -4.50 -0.74 1.13 -2.29 -1.84 2.82 -0.49 3.17 7.02

Portfolio Weight (Ending) 100.00 10.34 27.24 1.11 - 1.13 - - 14.84 3.97 18.03 20.54

Index Weight (Ending) 100.00 12.43 32.25 5.61 0.74 - 2.29 1.84 12.02 4.45 14.86 13.51

Portfolio Performance 4.13 19.95 8.08 2.06 - 6.07 - - 5.43 0.19 0.94 -4.21

Index Performance 3.18 6.33 5.45 -3.62 -4.04 - 4.70 5.26 6.15 3.08 1.76 -2.57

T. ROWE PRICE46

-1.50

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ATTRIBUTION ANALYSIS (USD)One Year Ended 28 February 2019The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance.Numbers may not total due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Total Value Added



BY SECTOR


Health Care

Industrials & Bus Svcs Materials Energy Utilities

Consumer Staples

Real Estate

Consumer Disc Financials

Comm Svcs

Over (Under) Weight - -5.00 7.02 -2.09 -1.84 -0.74 1.13 -4.50 -2.29 3.17 -0.49 2.82

Portfolio Weight (Ending) 100.00 27.24 20.54 10.34 - - 1.13 1.11 - 18.03 3.97 14.84

Index Weight (Ending) 100.00 32.25 13.51 12.43 1.84 0.74 - 5.61 2.29 14.86 4.45 12.02

Portfolio Performance 8.86 23.69 13.28 11.78 - - 20.27 -11.32 2.45 4.34 -9.57 -8.03

Index Performance 6.62 11.51 7.47 4.19 -1.62 -15.43 20.07 4.69 19.03 8.36 3.96 -2.81

T. ROWE PRICE47

TOTAL RETURN PERFORMANCE

Calculated Quarterly from 30 June 20101 to 31 December 2018 Figures are Calculated in U.S. Dollars

Past performance is not a reliable indicator of future performance.1 Actual client inception date 16 April 2010.

Each point represents the performance of the portfolio and its benchmark for a three-year annualized period. Points above the diagonal represent outperformance relative to the benchmark.Points below the diagonal represent relative underperformance. Total return includes all realized and unrealized gains and losses plus income.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Three-Year Rolling Returns (Annualized Net of Fees)—The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index

-30

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Portfolio Outperformance

Portfolio Underperformance

Russell 1000 Growth IndexTh

e W

ater

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ower

E

mpl

oyee

s’ R

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men

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Percent

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2

4

6

1/02 12/04 12/06 12/08 12/10 12/12 12/14 12/16 12/18

Percent

US LARGE-CAP GROWTH EXCESS RETURNS

EXCESS RETURNS IN POSITIVE MARKETS EXCESS RETURNS IN NEGATIVE MARKETS

31 December 2001 Through 31 December 2018 Figures are Calculated in U.S. Dollars

-8

-6

-4

-2

0

2

4

6

1/02 12/04 12/06 12/08 12/10 12/12 12/14 12/16 12/18

Percent

Average Excess Returns Above Quarters = Below Quarters = Success Rate =

79 bps321864%

Average Excess Returns Above Quarters = Below Quarters = Success Rate =

-11 bps99

50%

US Large-Cap Growth Equity Representative Portfolio vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance. 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 other accounts in the strategy. Please see the GIPS® disclosure page for additional information on the composite.Supplemental information.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

We have successfully participated in market advances.

T. ROWE PRICE49

TOTAL RETURN PERFORMANCEThree Years Ended 31 December 2018Figures are Calculated in U.S. Dollars

Past performance is not a reliable indicator of future performance. 1 As of 31 December 2018.

Total return includes all realized an unrealized gains and losses plus income. Figures are calculated using monthly data and are gross of fees. Returns would have been lower as the result of the deduction of applicable fees.Frank Russell Company (“Russell”) is the source and owner of the Russell index data contained or reflected in these materials and all trademarks and copyrights related thereto. Russell® is a registered trademark of Russell. Russell is not responsible for the formatting or configuration of these materials or for any inaccuracy in T. Rowe Price Associates’ presentation thereof.Active share is a holdings-based measure of active management representing the percentage of a portfolio’s holdings that differ from those in its benchmark. Compared with tracking error, which measures the standard deviation of the difference in a manager’s returns versus the index returns, Active Share allows investors to get a clearer understanding of what a manager is doing to drive performance, rather than drawing conclusions from observed returns. The greater the difference between the asset composition of a product and its benchmark, the greater the active share is.

Risk/Return Characteristics

3 YearsThe Water & Power

Employees’ Retirement Plan

Russell 1000 Growth Index

Annualized Total Return 14.65% 11.15%

Annualized Standard Deviation 13.55% 12.13%

Historical Tracking Error 5.00% 0.00%

Beta 1.04 1.00

R-Squared 0.87 1.00

Alpha 2.94% 0.00%

Sharpe Ratio 0.99 0.83

Information Ratio 0.70 0.00

Active Share1 60.18% N/A

Russell 1000 Growth IndexThe Water & Power Employees’ Retirement Plan

201811-610610

4

8

12

16

20

6 9 12 15 18Average Annual Standard Deviation (%)

Ave

rage

Ann

ual R

etur

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)

T. ROWE PRICE50

TOTAL RETURN PERFORMANCEFive Years Ended 31 December 2018Figures are Calculated in U.S. Dollars

Past performance is not a reliable indicator of future performance. 1 As of 31 December 2018.



5 YearsThe Water & Power

Employees’ Retirement Plan





Beta 1.03 1.00

R-Squared 0.86 1.00

Alpha 2.31% 0.00%





201811-610610

The Water & Power Employees’ Retirement Plan

4

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6 9 12 15 18Average Annual Standard Deviation (%)

Ave

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Ann

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TOTAL RETURN PERFORMANCESince Inception1 Through 31 December 2018 Figures are Calculated in U.S. Dollars

Past performance is not a reliable indicator of future performance. 1 The The Water & Power Employees’ Retirement Plan’s inception date is 16 April 2010. Statistics shown are since the month end date after inception. 2 As of 31 December 2018.



Since Inception1

The Water & Power Employees’

Retirement Plan Russell 1000 Growth Index




Beta 1.09 1.00

R-Squared 0.91 1.00

Alpha 1.03% 0.00%






201811-610610

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)

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PORTFOLIO REVIEW AND CHARACTERISTICS

T. ROWE PRICE53

1 Source: IBES. 2 These statistics are based on the portfolio’s underlying holdings and are not a projection of future portfolio performance. Actual results may vary.3 Statistics are based on investment-weighted median.

The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable.The information shown does not reflect any exchange-traded funds that may be held in the portfolio. Numbers may not total due to rounding.T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group. 201808-585014

PORTFOLIO SNAPSHOTAs of 31 December 2018

The Water & Power Employees’ Retirement Plan Russell 1000 Growth Index

Projected Earnings Growth Rate (3 to 5 Years)1,2,3 15.3% 14.6%

Price to Earnings (12 Months Forward)1,2,3 20.5X 18.7X

Investment-Weighted Average Market Capitalization (Millions USD) 272,121 251,743

Number of Holdings 56 539

% of Portfolio in Top 20 Holdings 65.0% 45.1%

Portfolio Turnover (Last 12 Months) 38.0% N/A

-15

0

15

30

45

CommSvcs

ConsumDisc

ConsumStpls

Energy Financials HealthCare

Indust &Bus Svcs

InfoTech

Materials RealEstate

Utilities

Percent

The Water & Power Employees' Retirement PlanRussell 1000 Growth IndexOver/Underweighting

Company % of PortfolioAmazon.com 8.4%

Alphabet 7.4

Microsoft 6.6Boeing 5.2Visa 4.8Facebook 3.9UnitedHealth Group 3.1Cigna 2.9Intuitive Surgical 2.3Stryker 2.2Total 46.9%

TOP 10 HOLDINGS

PORTFOLIO CHARACTERISTICS

SECTOR WEIGHTINGS

T. ROWE PRICE54

10 LARGEST OVER/UNDERWEIGHTS


The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable. The information shown does not reflect any exchange-traded funds that may be held in the portfolio.Numbers may not total due to rounding. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

The Water & Power Employees’ Retirement Plan Relative to the Russell 1000 Growth Index

10 LargestOverweights

% of Portfolio

% of Index Difference

Boeing 5.2% 1.5% 3.7%

Amazon.com 8.4 5.3 3.2

Visa 4.8 2.0 2.8

Cigna 2.9 0.2 2.7

Becton, Dickinson & Company 2.1 0.0 2.1

Alphabet 7.4 5.4 1.9

Red Hat 2.2 0.3 1.9

Intuitive Surgical 2.3 0.5 1.9

Stryker 2.2 0.5 1.7

Las Vegas Sands 1.8 0.1 1.7

10 LargestUnderweights

% ofPortfolio

% of Index Difference

Apple 1.6% 6.5% -4.9%

Home Depot 0.0 1.7 -1.7

MasterCard 0.0 1.5 -1.5

Coca-Cola 0.0 1.2 -1.2

AbbVie 0.0 1.2 -1.2

PepsiCo 0.0 1.2 -1.2

Walt Disney 0.0 1.0 -1.0

Amgen 0.0 1.0 -1.0

Adobe 0.0 1.0 -1.0

Union Pacific 0.0 0.8 -0.8

T. ROWE PRICE55

RECENT PORTFOLIO CHANGESThree Months Ended 31 December 2018The Water & Power Employees’ Retirement Plan

1 New Holding.2 Eliminated.

Business Description sourced from Thomson Reuters Worldscope Fundamentals, Copyright©, Thomson Reuters, 1999–2019. All Rights Reserved. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable. The information shown does not reflect any exchange-traded funds that may be held in the portfolio.Numbers may not total due to rounding.

Major Purchases % of Portfolio Business DescriptionFacebook 3.9% Facebook is focused on building products that enable people to connect and share through mobile devices, personal

computers and other surfaces.

Eli Lilly¹ 1.1 Eli Lilly is engaged in drug manufacturing business.

Splunk 0.8 Splunk is engaged in the development and marketing of software solutions.

VMware 1.6 VMware is an information technology (IT) company.

Aptiv 1.1 Aptiv is a global technology company serving the automotive sector.

Major Sales % of Portfolio Business DescriptionElectronic Arts² 0.0% Electronic Arts develops, markets, publishes and distributes games, content and services that can be played by

consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets.

Booking Holdings 1.9 Booking Holdings is a provider of travel and restaurant online reservation and related services.

Crown Castle International² 0.0 Crown Castle International is a real estate investment trust, which owns, operates and leases shared wireless infrastructure that is geographically dispersed throughout the United States and Puerto Rico.

Merck² 0.0 Merck is a global healthcare company.

NVIDIA² 0.0 NVIDIA focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI).

T. ROWE PRICE56

PORTFOLIO BY MARKET CAPITALIZATION As of 31 December 2018

The securities mentioned above represent 100% of the publically traded common equity securities held by the portfolio. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable. The information shown does not reflect any exchange-traded funds that may be held in the portfolio. Numbers may not total due to rounding.


0–10 Billion USD1%

10–25 Billion USD 8%

25–50 Billion USD 19%

50+ Billion USD 72%

Kansas City SouthernSpirit AeroSystems Holdings

Alexion PharmaceuticalsAmerican Water WorksAptivCenteneFortiveGlobal PaymentsHilton Worldwide HoldingsIAC/InterActiveCorpMaxim Integrated ProductsSplunkWellCare Health Plans

Activision BlizzardDollar GeneralFidelity National InformationHCA HealthcareHumanaIntercontinental ExchangeLas Vegas SandsNorthrop GrummanRed HatRoss StoresSempra EnergyServiceNowTD Ameritrade HoldingVertex PharmaceuticalsWaste ManagementWorkday

AlphabetAmazon.comAnthemAppleBecton, Dickinson & CompanyBoeingBooking HoldingsCharles SchwabCignaEli LillyFacebookHoneywell InternationalIntuitIntuitive SurgicalMcDonald'sMicrosoftMorgan StanleyNetflixNikePayPal HoldingsPhilip Morris InternationalSalesforce.comStrykerTeslaUnitedHealth GroupVisaVMware

T. ROWE PRICE57

MARKET CAPITALIZATION RANGE As of 31 December 2018


The Water & Power Employees’ Retirement Plan vs. Russell 1000 Growth Index

0

10

20

30

40

50

60

70

80

0–10 10–25 25–50 50+

Percent

Billions (USD)

The Water & Power Employees' Retirement PlanRussell 1000 Growth Index

T. ROWE PRICE58

FULL PORTFOLIO HOLDINGSAs of 31 December 2018

Rounding may cause figures to vary from 100%.This information is not intended to be a recommendation to take any particular investment action and is subject to change. No assumption should be made that the securities identified and discussed were or will be profitable.


Security Name %Assets+Accrd

COMMUNICATION SERVICES 14.40 %

Entertainment 2.69 %

ATVI Activision Blizzard 1.59

NFLX Netflix 1.11

Interactive Media & Services 11.70 %

FB Facebook 3.87

GOOG Alphabet Class C 2.41

GOOGL Alphabet Class A 4.95

IAC IAC/InterActiveCorp 0.47

CONSUMER DISCRETIONARY 20.22 %

1.08 %Auto Components

APTV Aptiv 1.08

Automobiles 1.29 %

TSLA Tesla 1.29

Hotels Restaurants & Leisure 4.12 %

HLT Hilton Worldwide Holdings 1.03


LVS Las Vegas Sands 1.78

MCD McDonald's 1.30

Internet & Direct Marketing Retail 10.31 %

AMZN Amazon.com 8.44

BKNG Booking Holdings 1.86

Multiline Retail 1.30 %

DG Dollar General 1.30

Specialty Retail 1.17 %

ROST Ross Stores 1.17

Textiles, Apparel & Luxury Goods 0.95 %

NKE Nike 0.95

CONSUMER STAPLES 0.96 %

Tobacco 0.96 %

PM Philip Morris International 0.96

FINANCIALS 4.16 %

T. ROWE PRICE59




Security Name %Assets Security Name %Assets+Accrd +Accrd

Capital Markets 4.16 % HUM Humana 0.82

AMTD TD Ameritrade Holding 0.74 UNH UnitedHealth Group 3.14

ICE Intercontinental Exchange 0.95 WCG WellCare Health Plans 0.56

MS Morgan Stanley 0.72

SCHW Charles Schwab 1.75 Pharmaceuticals 1.09 %

LLY Eli Lilly 1.09

HEALTH CARE 21.18 %

Biotechnology 2.30 % INDUSTRIALS & BUSINESS SERVICES 8.99 %

ALXN Alexion Pharmaceuticals 0.58 Aerospace & Defense 6.79 %

VRTX Vertex Pharmaceuticals 1.72 BA Boeing 5.21

NOC Northrop Grumman 1.05

Health Care Equipment & Supplies 6.65 % SPR Spirit AeroSystems Holdings 0.53

BDX Becton, Dickinson & Company 2.12

ISRG Intuitive Surgical 2.34 Commercial Services & Supplies 0.80 %

SYK Stryker 2.19 WM Waste Management 0.80

Health Care Providers & Services 11.13 % Industrial Conglomerates 0.50 %

ANTM Anthem 1.41 HON Honeywell International 0.50

CI Cigna 2.92

CNC Centene 0.63 Machinery 0.43 %

HCA HCA Healthcare 1.66 FTV Fortive 0.43

T. ROWE PRICE60




Security Name %Assets

Software 16.18 %

CRM Salesforce.com 1.42

INTU Intuit 1.76

MSFT Microsoft 6.63

NOW ServiceNow 0.81

RHT Red Hat 2.19

SPLK Splunk 0.84

VMW VMware 1.60

Security Name %Assets+Accrd +Accrd

Road & Rail 0.47 % WDAY Workday 0.92

KSU Kansas City Southern 0.47

Technology Hardware, Storage & Peripherals 1.60 %

INFORMATION TECHNOLOGY 26.35 % AAPL Apple 1.60

It Services 7.64 %

FIS Fidelity National Information 0.35 OTHER RESERVES 2.59 %

GPN Global Payments 1.10 Cash 0.16 %

PYPL PayPal Holdings 1.37 U S Dollars 0.16

V Visa 4.83

Short Term Obligations 2.44 %

Semiconductors & Semiconductor Equipment 0.92 % TC1E44MI Collective STIF 2.44

MXIM Maxim Integrated Products 0.92

UTILITIES 1.15 %

Multi-utilities 0.67 %

SRE Sempra Energy 0.67

Water Utilities 0.48 %

AWK American WaterWorks 0.48

Total Mkt Val+Accrd (USD): 675,855,546.94

T. ROWE PRICE61



The Retiree Health Benefits Fund


COMMUNICATION SERVICES 14.41 %

Entertainment 2.71 %

ATVI Activision Blizzard 1.59

NFLX Netflix 1.12

Interactive Media & Services 11.70 %

FB Facebook 3.87

GOOG Alphabet Class C 2.41

GOOGL Alphabet Class A 4.95

IAC IAC/InterActiveCorp 0.47

CONSUMER DISCRETIONARY 20.24 %

1.08 %Auto Components

APTV Aptiv 1.08

Automobiles 1.30 %

TSLA Tesla 1.30

Hotels Restaurants & Leisure 4.12 %

HLT Hilton Worldwide Holdings 1.03


LVS Las Vegas Sands 1.79

MCD McDonald's 1.30

Internet & Direct Marketing Retail 10.30 %

AMZN Amazon.com 8.44

BKNG Booking Holdings 1.86

Multiline Retail 1.31 %

DG Dollar General 1.31

Specialty Retail 1.18 %

ROST Ross Stores 1.18

Textiles, Apparel & Luxury Goods 0.95 %

NKE Nike 0.95

CONSUMER STAPLES 0.97 %

Tobacco 0.97 %

PM Philip Morris International 0.97

FINANCIALS 4.17 %

T. ROWE PRICE62




Security Name %Assets Security Name %Assets+Accrd +Accrd

Capital Markets 4.17 % HUM Humana 0.82

AMTD TD Ameritrade Holding 0.75 UNH UnitedHealth Group 3.14

ICE Intercontinental Exchange 0.95 WCG WellCare Health Plans 0.56

MS Morgan Stanley 0.73

SCHW Charles Schwab 1.74 Pharmaceuticals 1.09 %

LLY Eli Lilly 1.09

HEALTH CARE 21.15 %

Biotechnology 2.28 % INDUSTRIALS & BUSINESS SERVICES 9.00 %

ALXN Alexion Pharmaceuticals 0.57 Aerospace & Defense 6.79 %

VRTX Vertex Pharmaceuticals 1.71 BA Boeing 5.22

NOC Northrop Grumman 1.05

Health Care Equipment & Supplies 6.67 % SPR Spirit AeroSystems Holdings 0.53

BDX Becton, Dickinson & Company 2.12

ISRG Intuitive Surgical 2.35 Commercial Services & Supplies 0.81 %

SYK Stryker 2.20 WM Waste Management 0.81

Health Care Providers & Services 11.12 % Industrial Conglomerates 0.50 %

ANTM Anthem 1.39 HON Honeywell International 0.50

CI Cigna 2.91

CNC Centene 0.63 Machinery 0.43 %

HCA HCA Healthcare 1.66 FTV Fortive 0.43

T. ROWE PRICE63




Security Name %Assets

Software 16.20 %

CRM Salesforce.com 1.42

INTU Intuit 1.77

MSFT Microsoft 6.63

NOW ServiceNow 0.80

RHT Red Hat 2.20

SPLK Splunk 0.84

VMW VMware 1.62

Security Name %Assets+Accrd +Accrd

Road & Rail 0.47 % WDAY Workday 0.93

KSU Kansas City Southern 0.47

Technology Hardware, Storage & Peripherals 1.59 %

INFORMATION TECHNOLOGY 26.39 % AAPL Apple 1.59

It Services 7.65 %

FIS Fidelity National Information 0.35 OTHER RESERVES 2.52 %

GPN Global Payments 1.10 Cash 0.15 %

PYPL PayPal Holdings 1.37 U S Dollars 0.15

V Visa 4.83

Short Term Obligations 2.37 %

Semiconductors & Semiconductor Equipment 0.95 % TC1E44MI Collective STIF 2.37

MXIM Maxim Integrated Products 0.95

UTILITIES 1.15 %

Multi-utilities 0.67 %

SRE Sempra Energy 0.67

Water Utilities 0.48 %

AWK American WaterWorks 0.48

Total Mkt Val+Accrd (USD): 113,798,856.77

T. ROWE PRICE64

FEE SCHEDULE

T. ROWE PRICE65

Los Angeles Department of Water & Power–US Large-Cap Growth Equity Strategy FEE SCHEDULE

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

First 50 million (USD) 50 basis points

Next 50 million (USD) 45 basis points

Above 100 million (USD) 40 basis points on all assets1


Above 500 million (USD) 32.5 basis points on the first 500 million (USD) and 30 on the excess

Above 1 billion (USD) 30 basis points on all assets1

T. ROWE PRICE66

As of 31 December 2018 US Large-Cap Growth Equity CompositeFEE SCHEDULE

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

The US Large-Cap Growth Equity Composite seeks long-term capital appreciation by investing primarily in common stocks of large-cap growth companies based in the U.S. (Created June 2006)

First 50 million (USD) 50 basis points

Next 50 million (USD) 45 basis points



Minimum separate account size 50 million (USD)

T. ROWE PRICE67

ADDITIONAL INFORMATION AND DISCLOSURES

T. ROWE PRICE68


US Large-Cap Growth Equity CompositeTOTAL RETURN PERFORMANCE

Past performance is not a reliable indicator of future performance.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 to you 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.Supplemental information. Please see the GIPS® Disclosure page for additional information on the composite. Monthly composite performance is available upon request.

2 The value added is shown as US Large-Cap Growth Equity Composite (Net of Fees) minus Russell 1000 Growth Index.Pursuant to T. Rowe Price (“TRP”) policy, the firm does not claim compliance with GIPS outside of the 15-year period. Additional information has been provided in response to your specific request.This information provided is based on data maintained in internal TRP systems and collected from a variety of sources.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Calendar Years 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US Large-Cap Growth Equity Composite (Gross of Fees) -24.45% 38.91% 11.35% 8.38% 6.88% 9.41% -40.39% 54.28% 16.77% -1.19% 18.51% 45.31% 9.26% 10.74% 3.41% 38.52% 4.89%

US Large-Cap Growth Equity Composite (Net of Fees)1 -24.84 38.24 10.80 7.84 6.35 8.87 -40.70 53.54 16.19 -1.68 17.93 44.61 8.72 10.19 2.90 37.84 4.37

Russell 1000 Growth Index -27.88 29.75 6.30 5.26 9.07 11.81 -38.44 37.21 16.71 2.64 15.26 33.48 13.05 5.67 7.08 30.21 -1.51

Value Added (Net of Fees)2 3.04 8.49 4.50 2.58 -2.72 -2.94 -2.26 16.33 -0.52 -4.32 2.67 11.13 -4.33 4.52 -4.18 7.63 5.88

Annualized

Three Months

One Year

Three Years

FiveYears

SevenYears

TenYears

Fifteen Years

Since Inception

30 Nov 2001US Large-Cap Growth Equity Composite (Gross of Fees) -12.75% 4.89% 14.53% 12.70% 17.71% 18.74% 10.85% 9.93%

US Large-Cap Growth Equity Composite (Net of Fees)1 -12.86 4.37 13.97 12.14 17.13 18.16 10.30 9.39

Russell 1000 Growth Index -15.89 -1.51 11.15 10.40 14.14 15.29 8.68 7.15

Value Added (Net of Fees)2 3.03 5.88 2.82 1.74 2.99 2.87 1.62 2.24

T. ROWE PRICE69

Annualized

Quarter-to-Date

One Year

Three Years

FiveYears

SevenYears

TenYears

Fifteen Years

Since Inception

30 Nov 2001US Large-Cap Growth Equity Composite (Gross of Fees) 13.62% 9.55% 24.20% 14.47% 17.60% 21.21% 11.62% 10.65%

US Large-Cap Growth Equity Composite (Net of Fees)1 13.53 9.01 23.59 13.91 17.02 20.62 11.07 10.10

Russell 1000 Growth Index 12.89 6.62 17.99 12.63 14.41 18.19 9.37 7.84

Value Added (Net of Fees)2 0.64 2.39 5.60 1.28 2.61 2.43 1.70 2.26


US Large-Cap Growth Equity CompositeTOTAL RETURN PERFORMANCE

Past performance is not a reliable indicator of future performance.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 to you 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.Supplemental information. Please see the GIPS® Disclosure page for additional information on the composite. Monthly composite performance is available upon request.

2 The value added is shown as US Large-Cap Growth Equity Composite (Net of Fees) minus Russell 1000 Growth Index.Pursuant to T. Rowe Price (“TRP”) policy, the firm does not claim compliance with GIPS outside of the 15-year period. Additional information has been provided in response to your specific request.This information provided is based on data maintained in internal TRP systems and collected from a variety of sources.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

T. ROWE PRICE70

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Composite Outperformance

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TOTAL RETURN PERFORMANCE

Calculated Quarterly from 31 December 2001 to 31 December 2018 Figures are Calculated in U.S. Dollars

Past performance is not a reliable indicator of future performance. Each point represents the performance of the composite and its benchmark for a three-year annualized period. Points above the diagonal represent outperformance relative to the benchmark. Points below the diagonal represent relative underperformance. Supplemental information. Please see the GIPS® Disclosure page for additional information on the composite.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Three-Year Rolling Returns (Annualized Net of Fees)—US Large-Cap Growth Equity Composite vs. Russell 1000 Growth Index

Percent

T. ROWE PRICE71

ATTRIBUTION ANALYSIS (USD)Five Years Ended 31 December 2018 US Large-Cap Growth Equity Representative Portfolio vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance. 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 other accounts in the strategy. Please see the GIPS® disclosure page for additional information on the composite. Supplemental information.Numbers may not total due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

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Health Care

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Consumer Disc

Industrials & Bus Svcs

Consumer Staples Utilities

Real Estate Financials Energy

Over (Under) Weight - -5.67 6.39 3.36 -1.84 5.35 -3.06 -5.09 1.12 -2.32 -0.35 -0.76

Portfolio Weight (Ending) 100.00 25.79 20.68 15.28 - 20.47 8.78 0.95 1.12 - 4.05 -

Index Weight (Ending) 100.00 31.46 14.29 11.93 1.84 15.12 11.85 6.03 - 2.32 4.40 0.76

Portfolio Performance 12.60 18.60 13.15 14.12 23.44 13.02 9.56 9.34 6.98 12.11 7.49 -29.81

Index Performance 10.40 15.25 10.57 9.07 3.63 12.49 7.45 8.28 21.44 10.68 6.95 -14.46

Total Value Added



BY SECTOR

T. ROWE PRICE72

ATTRIBUTION ANALYSIS (USD)10 Years Ended 31 December 2018 US Large-Cap Growth Equity Representative Portfolio vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance.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 other accounts in the strategy. Please see the GIPS® disclosure page for additional information on the composite. Supplemental information.Numbers may not total due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

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Real Estate Utilities Energy Financials

Over (Under) Weight - -5.67 6.39 5.35 3.36 -3.06 -1.84 -5.09 -2.32 1.12 -0.76 -0.35

Portfolio Weight (Ending) 100.00 25.79 20.68 20.47 15.28 8.78 - 0.95 - 1.12 - 4.05

Index Weight (Ending) 100.00 31.46 14.29 15.12 11.93 11.85 1.84 6.03 2.32 - 0.76 4.40

Portfolio Performance 18.65 21.98 17.80 22.02 20.98 15.14 23.35 8.62 20.40 6.50 3.51 13.31

Index Performance 15.29 17.97 15.24 19.46 16.70 13.94 11.09 12.14 15.83 14.96 0.21 13.49

Total Value Added



BY SECTOR

T. ROWE PRICE73

ATTRIBUTION ANALYSIS (USD)Since Inception1 Through 31 December 2018 US Large-Cap Growth Equity Representative Portfolio vs. Russell 1000 Growth Index

Past performance is not a reliable indicator of future performance.1 31 October 2001.

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 other accounts in the strategy. Please see the GIPS® disclosure page for additional information on the composite. Supplemental information.Numbers may not total due to rounding; all numbers are percentages. Analysis represents the total performance of the portfolio as calculated by the FactSet attribution model and is inclusive of other assets that will not receive a classification assignment in the detailed structure shown. Returns will not match official T. Rowe Price performance because FactSet uses different exchange rate sources and does not capture intra-day trading. Performance for each security is obtained in the local currency and, if necessary, is converted to U.S. dollars using an exchange rate determined by an independent third party. Figures are shown with gross dividends reinvested.Sources: Financial data and analytics provider FactSet. Copyright 2019 FactSet. All Rights Reserved. MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc. T. Rowe Price uses the current MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. T. Rowe Price will adhere to all updates to GICS for prospective reporting.Figures are shown gross of fees. Returns would be lower as a result of the deduction of such fees.Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

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TotalHealth Care

Information Technology

Consumer Disc

Comm Svcs Materials

Industrials & Bus Svcs

Real Estate Energy Utilities Financials

Consumer Staples

Over (Under) Weight - 6.39 -5.67 5.35 3.36 -1.84 -3.06 -2.32 -0.76 1.12 -0.35 -5.09

Portfolio Weight (Ending) 100.00 20.68 25.79 20.47 15.28 - 8.78 - - 1.12 4.05 0.95

Index Weight (Ending) 100.00 14.29 31.46 15.12 11.93 1.84 11.85 2.32 0.76 - 4.40 6.03

Portfolio Performance 10.53 11.69 11.17 12.09 13.56 17.56 6.96 13.83 4.78 -15.73 5.18 5.42

Index Performance 7.70 8.07 8.64 9.76 6.97 8.94 7.46 10.19 3.28 5.14 5.20 8.27

Total Value Added



BY SECTOR

T. ROWE PRICE74

GIPS® DISCLOSURE

US Large‐Cap Growth Equity CompositePeriod Ended December 31, 2018 Figures Shown in U.S. dollar

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Gross Annual Returns (%) 54.28 16.77 ‐1.19 18.51 45.31 9.26 10.74 3.41 38.52 4.89Net Annual Returns (%)1 53.54 16.19 ‐1.68 17.93 44.61 8.72 10.19 2.90 37.84 4.37Russell 1000 Growth Index (%) 37.21 16.71 2.64 15.26 33.48 13.05 5.67 7.08 30.21 ‐1.51Composite 3‐Yr St. Dev. 22.12 24.88 20.11 18.52 15.15 12.41 12.13 12.99 12.39 13.62Russell 1000 Growth Index 3‐Yr St. Dev. 19.73 22.11 17.76 15.66 12.18 9.59 10.70 11.15 10.54 12.13Composite Dispersion 0.65 0.26 0.26 0.33 0.21 0.29 0.38 0.31 0.60 0.13Comp. Assets (Millions) 9,411.7 12,924.7 13,123.1 18,460.5 26,449.4 30,270.4 32,684.2 28,132.8 35,754.9 36,999.4

# of Accts. in Comp. 42 45 46 51 52 60 67 56 56 60Total Firm Assets (Billions) 395.2 485.0 493.1 579.8 696.3 749.6 772.4 817.2 1,000.2 972.7

1Reflects deduction of highest applicable fee schedule without benefit of breakpoints. Investment return and principal value will vary. Past performance is not a reliable indicator of future performance. Monthly composite performance is available upon request. See below for further information related to net of fee calculations.

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 22‐year period ended June 30, 2018 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 Conduct Authority, and other regulatory bodies in various countriesand 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 computedand 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 nonreclaimable withholding taxes on dividends, interest income, and capital gains. Effective June 30, 2013, portfolio valuation and assets under management are calculated based on the closing price of the security in its respective market. Previously portfolios holding international securities may have been adjusted for after‐market events. 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 25% 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 uponrequest.The firm's list of composite descriptions and/or a presentation that adheres to the GIPS® standards are available upon request.A portfolio management change occurred effective January 1, 2017. There were no changes to the investment program or strategy related to this composite.

T. ROWE PRICE75

Equity Steering Committee Oversight

Periodic review by senior investment professionals promotes consistency of the strategy’s investment process and portfolio construction.

Quantitative Risk Management Tools

FactSet enables portfolio managers to review performance attribution versus benchmarks from a holdings-based perspective.

Barra risk analysis provides managers with a common risk factor tool to analyze their strategy versus a benchmark.

Zephyr returns-based style analysis allows portfolio managers to analyze the style and size consistency of their strategy versus a benchmark.

MONITORING AND RISK MANAGEMENT ELEMENTS

T. ROWE PRICE

Objective

The US Large-Cap Growth Equity Composite seeks long-term capital appreciation by investing primarily in common stocks of large-cap growth companies based in the U.S. (Created June 2006)

Risks – the following risks are materially relevant to the portfolio:

Small and mid-cap risk - stocks of small and mid-size companies can be more volatile than stocks of larger companies.

General Portfolio Risks

Capital risk - the value of your investment will vary and is not guaranteed. It will be affected by changes in the exchange rate between the base currency of the portfolio and the currency in which you subscribed, if different.

Equity risk - in general, equities involve higher risks than bonds or money market instruments.

Geographic concentration risk - to the extent that a portfolio invests a large portion of its assets in a particular geographic area, its performance will be more strongly affected by events within that area.

Hedging risk - a portfolio's attempts to reduce or eliminate certain risks through hedging may not work as intended.

Investment portfolio risk - investing in portfolios involves certain risks an investor would not face if investing in markets directly.

Management risk - the investment manager or its designees may at times find their obligations to a portfolio to be in conflict with their obligations to other investment portfolios they manage (although in such cases, all portfolios will be dealt with equitably).

Operational risk - operational failures could lead to disruptions of portfolio operations or financial losses.

US LARGE-CAP GROWTH EQUITY COMPOSITEObjective and Risks

201712-326106

T. ROWE PRICE

Important Information

This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources’ accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.It is not intended for distribution to retail investors in any jurisdiction.

© 2019 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks of T. Rowe Price Group, Inc.

201903-791652

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