A strategy focusing on innovation and technological change by investing in companies that are ushering in or benefiting from rapid advances in technology

Alan Tu

Portfolio Manager

Why T. Rowe Price Global Technology Equity Strategy?

The strategy is designed to focus on innovation and technological change by investing in companies that are ushering in or benefiting from rapid advances in technology.

We seek to invest in only those innovative companies that we believe have durable competitive advantages and compelling growth prospects. Typically, that will be companies with valuable intellectual property, which operate businesses with high barriers to entry, that boast large addressable markets, and have accelerating fundamentals.

We invest globally where we identify the most attractive opportunities in long-term secular themes, often beyond traditional technology sectors. As well as blue-chip firms with established track records of developing and marketing technology, we also consider smaller, younger companies that are at the forefront of innovation. While there is inherent risk in investing in a specific sector, we believe our rigorous research process helps us create a portfolio that offers the best risk/reward scenario for our clients.

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It appears that we are still relatively early in a golden age for technology innovation, as the extraordinary power of the internet has enabled unprecedented value creation for both companies and investors.

Alan Tu,
Portfolio Manager

3 reasons to consider this strategy

Our Global Technology Equity strategy invests in global technology companies and those firms enabled by technology, in particular those businesses positively impacted from change, innovation, and disruption.

1

Growth in a low growth world

We believe investing in a portfolio of technology companies offers investors an attractive opportunity to achieve growth over the long term regardless of the overall market environment. Technology is one area able to drive its own growth through innovation, new products, and product cycles as well as market share gains. In a low-growth world, this is where growth can be found.

2

Exposure to long term secular trends

We look to invest behind very durable, long runway investment themes in the portfolio. We believe that secular trends in areas such as e-commerce, cloud computing, big data, and artificial intelligence, many still in their relative infancy, should offer meaningful upside potential over the long term for quality technology companies exposed to these drivers.

3

Breadth and depth of our expertise

As a firm, we’ve been managing technology assets since 1987. A dedicated team of experienced technology analysts backed by our global research platform provides comprehensive coverage of both public and private markets, to better understand the future prospects of individual companies and invest on the right side of change.

Key Risks

The following risks are materially relevant to the portfolio:

Country risk (China) – all investments in China are subject to risks similar to those for other emerging markets investments. In addition, investments that are purchased or held in connection with a QFII licence or the Stock Connect program may be subject to additional risks.

Issuer concentration risk – to the extent that a portfolio invests a large portion of its assets in securities from a relatively small number of issuers, its performance will be more strongly affected by events affecting those issuers.

Sector concentration risk – the performance of a portfolio that invests a large portion of its assets in a particular economic sector (or, for bond portfolios, a particular market segment), will be more strongly affected by events affecting that sector or segment of the fixed income market.

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

Stock connect risk – the portfolio may invest in certain Shanghai-listed and Shenzhen-listed securities (“Stock Connect Securities”) through the Shanghai-Hong Kong Stock Connect or the Shenzhen-Hong Kong Stock Connect respectively (“Stock Connect”). This mechanism carries higher risk.

Style risk – different investment styles typically go in and out of favour depending on market conditions and investor sentiment.

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.

ESG and Sustainability risk – may result in a material negative impact on the value of an investment and performance of the portfolio.

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.

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Alan Tu

Portfolio Manager

Alan Tu is the portfolio manager for the Global Technology Equity Strategy. Alan’s investment experience began in 2012, and he has been with T. Rowe Price since 2014, beginning in the US Equity Division. After that, he was an investment analyst following software companies in the technology sector. He also served as a summer intern in 2013.

Prior to T. Rowe Price, Alan was employed by Ananda Capital Management as an analyst, conducting analyses of small-cap Chinese and US equities. He also was a valuation associate at Huron Consulting Group.

Alan earned a B.S., summa cum laude, in business administration from the University of California, Berkeley, and an M.B.A., with honours, from the University of Chicago, Booth School of Business. He also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

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