SUMMARY | |
TRCEX | |
March 1, 2015 | |
T. Rowe Price Institutional International Core Equity Fund | |
A fund seeking long-term growth of capital through investments in common stocks of non-U.S. companies and both growth and value approaches to stock selection. The fund is only available to institutional investors. | |
Before you invest, you may want to review the funds prospectus,
which contains more information about the fund and its risks. You can find the funds prospectus
and other information about the fund online at troweprice.com/prospectus. You can also get this information at no cost by calling
The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. | |
Summary | 1 |
Investment Objective
The fund seeks long-term growth of capital through investments in the common stocks of non-U.S. companies.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.
Fees and Expenses of the Fund
Shareholder fees (fees paid directly from your investment) | |
Redemption fee (as a percentage of amount redeemed on shares held for 90 days or less) | 2.00% |
Annual
fund operating expenses | |
Management fees | 0.65% |
Other expenses | 0.28% |
Total annual fund operating expenses | 0.93% |
Fee waiver/expense reimbursement | (0.18)%a |
Total annual fund operating expenses after fee waiver/expense reimbursement | 0.75%a |
a T. Rowe Price Associates, Inc. has agreed (through February 28, 2017) to waive its fees and/or bear any expenses (excluding interest, expenses related to borrowings, taxes and brokerage, extraordinary expenses, and acquired fund fees) that would cause the funds ratio of expenses to average daily net assets to exceed 0.75%. Termination of the agreement would require approval by the funds Board of Directors. Fees waived and expenses paid under this agreement are subject to reimbursement to T. Rowe Price Associates, Inc. by the fund whenever the funds expense ratio is below 0.75%. However, no reimbursement will be made more than three years after the waiver or payment, or if it would result in the expense ratio exceeding 0.75% (excluding interest, expenses related to borrowings, taxes and brokerage, extraordinary expenses, and acquired fund fees).
Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, the funds operating expenses remain the same, and the expense limitation currently in place is not renewed. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 year | 3 years | 5 years | 10 years |
$77 | $260 | $479 | $1,109 |
Portfolio Turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual
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fund operating expenses or in the example, affect the funds performance. During the most recent fiscal year, the funds portfolio turnover rate was 18.7% of the average value of its portfolio.
Investments, Risks, and Performance
Principal Investment Strategies The fund expects to invest substantially all of its assets outside the U.S. and to diversify broadly among developed and, to a lesser extent, emerging countries throughout the world. The fund normally invests at least 80% of its net assets (including any borrowings for investment purposes) in non-U.S. stocks and at least 65% of its net assets in stocks of large-cap companies.
The fund takes a core approach to investing, which provides some exposure to both growth and value styles of investing. The fund relies on a global research team to search for particularly promising stocks throughout developed and, to a lesser extent, emerging markets. Securities will be selected that in our view have the most favorable combination of company fundamentals and valuation.
In selecting investments, the fund generally favors companies with one or more of the following characteristics:
· attractive business niche with potential for earnings growth;
· attractive valuation relative to the companys peers or its own historical norm;
· barriers to entry in its business;
· seasoned management;
· healthy balance sheet; and
· potential to grow dividends or conduct share repurchases.
The fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities.
Principal Risks As with any mutual fund, there is no guarantee that the fund will achieve its objective. The funds share price fluctuates, which means you could lose money by investing in the fund. The principal risks of investing in this fund are summarized as follows:
Active management risk The fund is subject to the risk that the investment advisers judgments about the attractiveness, value, or potential appreciation of the funds investments may prove to be incorrect. If the securities selected and strategies employed by the fund fail to produce the intended results, the fund could underperform other funds with similar objectives and investment strategies.
Risks of stock investing Stocks generally fluctuate in value more than bonds and may decline significantly over short time periods. There is a chance that stock prices overall will decline because stock markets tend to move in cycles, with periods of rising prices and falling prices. The value of a stock in which the fund invests may decline due to general weakness in the stock market or because of factors that affect a company or a particular industry.
Summary | 3 |
International investing risk Investing in the securities of non-U.S. issuers involves special risks not typically associated with investing in U.S. issuers. International securities tend to be more volatile and less liquid than investments in U.S. securities and may lose value because of adverse political, social, or economic developments overseas, or due to changes in the exchange rates between foreign currencies and the U.S. dollar. In addition, international investments are subject to settlement practices and regulatory and financial reporting standards that differ from those of the U.S.
Investment style risk Different investment styles tend to shift in and out of favor depending on market conditions and investor sentiment. Because the fund holds stocks with both growth and value characteristics, it could underperform other stock funds that take a strictly growth or value approach to investing when one style is currently in favor. Growth stocks tend to be more volatile than the overall stock market and can have sharp price declines as a result of earnings disappointments. Value stocks carry the risk that the market will not recognize their intrinsic value or that they are actually appropriately priced at a low level.
Performance The bar chart showing calendar year returns and the average annual total returns table indicate risk by illustrating how much returns can differ from one year to the next and how fund performance compares with that of a comparable market index. The funds past performance (before and after taxes) is not necessarily an indication of future performance.
The fund can also experience short-term performance swings, as shown by the best and worst calendar quarter returns during the years depicted.
In addition, the average annual total returns table shows hypothetical after-tax returns to suggest how taxes paid by a shareholder may influence returns. After-tax
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returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) account or individual retirement account. In some cases, the figure shown under returns after taxes on distributions and sale of fund shares may be higher than the figure shown under returns before taxes because the calculations assume the investor received a tax deduction for any loss incurred on the sale of shares.
Average Annual Total Returns | ||||||||
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| Periods ended |
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| December 31, 2014 |
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| Since inception |
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| 1 Year | (10/27/10) |
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| Institutional International Core Equity Fund |
| ||||||
| Returns before taxes | -4.88 | % | 6.42 | % | |||
| Returns after taxes on distributions | -5.45 |
|
| 6.08 |
|
| |
| Returns after taxes on distributions |
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|
|
|
|
| |
| and sale of fund shares | -1.98 |
|
| 5.27 |
|
| |
| MSCI EAFE Index (reflects no deduction for fees, expenses, or taxes) | -4.48 |
|
| 6.00 |
|
| |
| Lipper International Large-Cap Core Funds Average | -4.82 |
|
| 4.72 | * |
|
* Returns as of 10/31/10.
Updated performance information is available through troweprice.com or may be obtained by calling 1-800-638-8790.
Management
Investment Adviser T. Rowe Price Associates, Inc. (T. Rowe Price)
Portfolio Manager | Title | Managed Fund Since | Joined Investment |
Raymond A. Mills, Ph.D. | Chairman of Investment Advisory Committee | 2010 | 1997 |
Purchase and Sale of Fund Shares
The fund generally requires a $1,000,000 minimum initial investment. There is no minimum for subsequent purchases. If you hold shares through a financial intermediary, the intermediary may impose different investment minimums.
You may purchase, redeem, or exchange shares of the fund on any day the New York Stock Exchange is open for business by calling 1-800-638-8790 or by written request. If you hold shares through a financial intermediary, you must purchase, redeem, and exchange shares through your intermediary.
Summary | 5 |
Tax Information
Any dividends or capital gains are declared and paid annually, usually in December. Redemptions or exchanges of fund shares and distributions by the fund, whether or not you reinvest these amounts in additional fund shares, may be taxed as ordinary income or capital gains unless you invest through a tax-deferred account (although you may be taxed upon withdrawal from such account).
T. Rowe Price Associates, Inc. | E178-045 3/1/15 |