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For most active investment managers, the goal is clear: to achieve consistently strong, long-term outperformance in any market environment. But this is easier said than done. And some do it better than others.

Since 1937, T. Rowe Price has been anything but a typical active manager.

Our investment professionals aren’t content to merely edge out the returns of indexes and passive peers. They ask better questions to pursue better long-term outcomes for our clients. They go against the grain to search for investment opportunities that are undervalued or underappreciated.

And over the last two decades, there is one portfolio manager who has been on an unprecedented run of performance: David Giroux of the Capital Appreciation Fund, who recently marked a record-setting streak of beating the competition.

17 Years of Better Returns

At T. Rowe Price, we strive to instill confidence in our investors. And while past performance does not guarantee future results, our clients can feel good about Giroux’s track record of consistently strong returns.

For the 17th consecutive year, his Capital Appreciation Fund reported better returns than the average of funds in Morningstar’s Moderate Allocation category. No multi-asset or U.S. equity mutual fund or exchange-traded fund (ETF) has had a longer streak under the same portfolio manager. The analysis compared the fund with more than 3,000 funds since 1925, the launch of the oldest mutual fund.1

Over time, this performance offered the potential for a strong, positive impact on client portfolios. An initial $100,000 investment in the Capital Appreciation Fund in 2008 would have resulted in $490,000 by the end of 2024, nearly double the $253,000 resulting from the Morningstar Moderate Allocation average.

As of 12/31/24, the Capital Appreciation Fund’s 1-, 5-, and 10-year average annual total returns were 12.69%, 10.55%, and 10.55%, respectively. The S&P 500 Index’s 1-, 5-, and 10-year average annual total returns were 25.02%, 14.53%, and 13.10%, respectively.

The performance data shown is past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. To obtain the most recent month-end performance, visit troweprice.com. Not all investors will obtain these results.

Expense ratio for the T. Rowe Price Capital Appreciation Fund is 0.74% as of the most recent prospectus.

Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions.

Data analysis by T. Rowe Price.

Giroux, a 26-year veteran of T. Rowe Price, has been at the helm for the entirety of the fund’s outperformance streak.

“He has amassed one of the most impressive records in the asset-allocation space, consistently beating peers and relevant indexes over short- and long-term periods,” Morningstar wrote in 2020.

It added that Giroux “belongs on the Mount Rushmore of the greatest investors.”

Curiosity to Deliver an Investment Edge

Giroux, for his part, has qualities we see in many of our T. Rowe Price investment professionals, who are driven by an innate curiosity and a desire to ask better questions to uncover investment opportunities others might miss.

They go out in the field to study opportunities firsthand, using those insights to help give our clients an investment edge.

Moreover, our active management approach encourages collaboration across the enterprise. Investment professionals test and debate ideas before adding them to portfolios.

“Every person is committed to doing the research and analysis to come to the strongest possible ideas, and we aren’t afraid to challenge ourselves or each other to do that,” Giroux said.

Innovating to Seek Better Outcomes

At T. Rowe Price, curiosity drives us to think deeply about the evolving needs of clients. We’re constantly looking to create investment solutions that are purposeful and forward-looking. That’s why investors can now also access the Capital Appreciation and Income Fund (NASDAQ: PRCFX), which prioritizes generating attractive income and preserving capital, and the Capital Appreciation Equity ETF (NASDAQ: TCAF), which focuses on generating capital growth with less risk than a passive S&P 500 ETF. Additionally, T. Rowe Price intends to offer the Capital Appreciation Premium Income ETF in 2025.

Giroux and his team manage all these products. In 2025, he will look to continue his streak of strong performance.

And as a firm, we’ll continue to deploy our time-tested investing approach to seek out opportunities across a wide range of markets, asking better questions that have helped deliver better outcomes for investors.

Curious to Learn More?

Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, call 1-800-537-1936 or visit troweprice.com. Read it carefully.

Capital Appreciation Fund Risks: The fund is subject to the inherent volatility of common stock investing. The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced. Because of the fund’s fixed income holdings or cash position, it may not keep pace in a rapidly rising market.

Capital Appreciation and Income Fund Risks: The fund is subject to the inherent volatility of common stock investing. Fixed income securities are subject to credit risk, liquidity risk, call risk, and interest rate risk. As interest rates rise, bond prices generally fall.

Capital Appreciation Equity ETF Risks: The ETF is subject to the inherent volatility of common stock investing. The fund’s value and growth investing styles may become out of favor, which may result in periods of underperformance. The fund is “nondiversified,” meaning it may invest a greater portion of its assets in a single company and own more of the company’s voting securities than is permissible for a “diversified” fund. The fund’s share price can be expected to fluctuate more than that of a comparable diversified fund.

©2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

1 As of December 31, 2024. Based upon a T. Rowe Price analysis of calendar year returns for all equity and multi-asset funds domiciled in the U.S. with greater than or equal to 17 consecutive years of beating their Morningstar peer group average while under the management of the same portfolio manager. The Morningstar Category system was introduced in 1996, but it includes funds that began operations earlier. The Capital Appreciation Fund is in Morningstar’s Moderate Allocation category. Analysis excludes any portfolios managed by David Giroux in the same manner as the Capital Appreciation strategy.

T. Rowe Price Investment Services, Inc., distributor.

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