The fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities. Any derivatives that provide exposure to the investment focus suggested by the fund’s name, or to one or more market risk factors associated with the investment focus suggested by the fund’s name, are counted (as applicable) toward compliance with the fund’s 80% investment policy.

The fund seeks to achieve its objective by primarily investing in a mix of other T. Rowe Price equity funds (underlying funds) that focus on various areas of the stock markets outside the U.S. The fund broadly diversifies its assets among underlying funds representing specific market segments by normally investing in a variety of developed and emerging market equity funds, and, from time to time, a money market fund. In addition, the fund may invest in individual securities on a limited basis. The goal is to maintain broad exposure to several markets in an attempt to reduce the impact of markets that are declining and to benefit from strong performance in particular market segments over time.

The various underlying funds and any individual securities focus on the international stock market, including many different developed countries outside the U.S., as well as emerging markets. The fund’s focus on international stocks is represented by a diversified mix of underlying funds that employ both growth and value investment approaches and consists of large-cap, mid-cap, and small-cap stocks.

The adviser decides how much of the fund’s assets to allocate to particular underlying funds and asset classes based on the outlook for, and on the relative valuations of, the underlying funds and the various markets and asset classes in which they invest. The adviser weights such factors as the outlook for inflation and the economy; corporate earnings; relative values and prospects for growth and value stocks, market capitalizations, and certain industries; and currency valuations and the overall outlook for developed markets, emerging markets, and certain geographic regions.

The adviser periodically reviews the mix of underlying funds and the percentages allocated to them. The fund may sell shares of the underlying funds for a variety of reasons, including to realize gains, limit losses, or redeploy assets into more promising opportunities.