SEMIANNual REPORT June 30, 2016

T. Rowe Price

PRDSX

QM U.S. Small-Cap Growth Equity Fund

(Formerly the Diversified Small-Cap Growth Fund)

TQAIX

QM U.S. Small-Cap Growth Equity Fund–I Class The fund invests in a broadly diversified portfolio of small-cap growth companies.

T. R owe P rice Qm U.S. S mall- C ap G rowth E quity F und

HIGHLIGHTS • Domestic small-cap growth stocks were little changed in the first half of 2016, but this masks their significant volatility. • Your fund slightly outperformed its benchmark, the MSCI US Small Cap Growth Index, and outpaced its Lipper peer group index by a solid margin in the last six months. Our longer-term record versus competitors is outstanding. • While we have changed the name of your fund, there has been no change in our investment process or management. We use a disciplined process that employs multiple metrics to identify attractive stocks that could produce long-term outperformance. • We especially like high-quality stocks of companies that generate good cash flows and are judicious in deploying capital. We believe that such companies will distinguish themselves over time with superior performance relative to lower-quality businesses.

The views and opinions in this report were current as of June 30, 2016. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the fund’s future investment intent. The report is certified under the Sarbanes-Oxley Act, which requires mutual funds and other public companies to affirm that, to the best of their knowledge, the information in their financial reports is fairly and accurately stated in all material respects. REPORTS ON THE WEB Sign up for our Email Program, and you can begin to receive updated fund reports and prospectuses online rather than through the mail. Log in to your account at troweprice.com for more information.

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Manager’s Letter

Fellow Shareholders As we noted in our last report, we have decided to change the name of our fund to the QM U.S. Small-Cap Growth Equity Fund—formerly known as the Diversified SmallCap Growth Fund—to comport with the naming convention of our other three new quantitatively managed equity funds, all of which incepted during the last six months. There has been no change in our investment process or management. The fund invests in quality stocks of small domestic growth companies that feature a combination of relatively inexpensive valuations, strong profitability, and prudent allocation of capital. We expect to maintain a portfolio of approximately 300 companies, and we aim to outperform our benchmark, the MSCI US Small Cap Growth Index, through stock selection over time, rather than through sector allocations. While our quantitatively managed small-cap growth portfolio is built and managed somewhat differently from one that is based strictly on fundamental analysis of individual stocks, we believe this quantitative strategy could complement an actively managed small-cap growth portfolio. The other quantitatively managed funds include the QM Global Equity Fund (attractive stocks in developed and emerging markets), QM U.S. Small & Mid-Cap Core Equity Fund (attractive domestic small- and mid-cap companies, both growth and value), and QM U.S. Value Equity Fund (undervalued domestic large- and mid-cap companies).

1

OUR INVESTMENT APPROACH

Our suite of quantitatively managed mutual funds use a multifactor stock selection process to identify attractive stocks in our opportunity set—in this case, domestic small-cap growth stocks. Our stock selection approach reflects three of our quant team’s key investment convictions: • Stocks with lower valuations tend to outperform in every global universe. There are periods during the market cycle when stocks with lower valuations may underperform, but over time, the evidence for value outperformance is convincing. • Quality stocks outperform in part because, historically, they have tended to experience more moderate declines in down markets. Limiting portfolio losses in market downturns facilitates compounding, leading to stronger portfolio growth over time. • Firms that are profitable and good allocators of capital should be able to outperform over the long term. WHAT WE SEEK: VALUE AND QUALITY

While each T. Rowe Price QM fund has a customized stock selection process, we focus most on identifying attractive stocks by looking at valuation and quality. We also include metrics that measure the capital allocation decisions of corporate managements. There is also an emphasis on buying stocks that the market recognizes as experiencing a change; company earnings estimate revisions and price change (classified as momentum metrics in academic literature) are two of the metrics that capture market recognition. We weight valuation, cash flow generation, and capital allocation metrics heavily, which reflects our long-term orientation. We expect this should reduce our portfolio turnover and could help reduce taxable distributions. Finally, we tend to hold onto our winners rather than sell them too early. In short, here are some of the most important factors we consider when ranking thousands of possible investments: • Value. We favor stocks that appear inexpensively valued relative to their respective industries and to the universe of small-cap growth stocks.

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• Quality. We seek companies with high-quality characteristics, which include a high return on capital employed, good earnings quality, and stability of earnings. • Cash Flows and Capital Deployment. We prefer companies that generate substantial free cash flow. Such companies have the potential to be self-financing and can continue to invest in periods when borrowing capital is not easy. We particularly like companies that use cash flows wisely in a manner that benefits shareholders—for example, by executing projects with an expected high return. Free cash flows also give companies the ability to buy back their stock, even in down markets, if management determines that is the best use of capital. MARKET ENVIRONMENT AND FUND PERFORMANCE

Domestic small-cap growth stocks were little changed in the first half of 2016, but this masks their significant volatility. World markets started the year with deep losses as oil prices collapsed to 13-year lows amid concerns about weakening Chinese and global economic growth. In fact, by mid-February, U.S. small-caps and some non-U.S. markets had fallen into a bear market, commonly defined as a drop of at least 20% from recent highs. However, equities and other risk assets rallied through late June, as central banks in the eurozone and Japan unveiled new stimulus efforts. Also, the dollar weakened due to diminishing expectations for U.S. interest rate increases in 2016, and commodity prices rebounded sharply. Near the end of June, global equities plunged in response to a referendum in which UK citizens voted in favor of leaving the European Union. As our reporting period ended, however, world markets rebounded amid hopes for new stimulus measures from central banks in the UK and elsewhere. In the U.S., large-cap stocks outperformed small-caps and value stocks strongly outperformed growth stocks as investors sought relative safety in defensive sectors and higher-yielding stocks in an environment of low bond yields. In the small-cap growth universe, as measured by the MSCI US Small Cap Growth Index, most sectors produced positive returns. Many of the best performers in percentage terms were sectors with very low representation in the benchmark: utilities, energy, telecommunication services, materials, and consumer staples. Health care stocks declined moderately; consumer discretionary and information technology shares fell to a lesser extent. 3

Your fund returned 1.52% in the first half of Six-Month Period Ended 6/30/16 Total Return 2016. As shown in the Performance Comparison QM U.S. Small-Cap Growth Equity Fund 1.52% table, the fund slightly MSCI US Small Cap Growth Index 1.39 outperformed its benchLipper Small-Cap Growth Funds Index -0.40 mark, the MSCI US Small Cap Growth Index, and outpaced its Lipper peer group index by a solid margin. The fund’s relative performance versus the MSCI index benefited from our stock selection in the consumer discretionary and health care sectors. On the other hand, our stock selection in financials and energy eroded our performance advantage. Sector allocations in aggregate detracted slightly, too. P erformance C omparison

The fund’s longer-term record versus its peers remained outstanding. Lipper ranked the QM U.S. Small-Cap Growth Equity Fund in the top 5% of the small-cap growth funds universe for the 3-, 5-, and 10-year periods ended June 30, 2016. Lipper also P ortfolio C haracteristics ranked the fund in the top QM U.S. MSCI US quintile for the one-year Small-Cap Small Cap period. We believe our Growth Growth longer-term record is a As of 6/30/16 Equity Fund Index testament to the value of Earnings Growth Rate our quantitative approach Historical Growth Five Years to investing. Based on (least squares) 13.4% 11.7% cumulative total return, Projected Earnings Growth Rate* 15.0 15.0 Lipper ranked the fund Profitability–Return on 99 of 556, 16 of 491, Equity Latest 12 Months 19 of 440, and 7 of Excluding Charges 17.9 12.7 311 small-cap growth funds for the 1-, 3-, 5-, P/E Ratio 12 Months Forward Estimated Earnings* 22.8X 22.6X and 10-year periods ended June 30, 2016, Investment-Weighted Median respectively. (Results may Market Capitalization (bil) $3.5 $2.3 vary for other periods. *Source for data: IBES. Statistics are based on the Past performance cannot companies in the fund’s portfolio and are not a guarantee future results.) projection of future fund performance.

4

PORTFOLIO REVIEW

As shown in the Portfolio Characteristics table on page 4, the fund’s fundamental characteristics had some similarities to those of the MSCI index. As of June 30, the projected earnings growth rate of our holdings matched that of the index, while the portfolio and index P/E ratios were about the same. However, the historical earnings growth rate of our holdings was higher than those in the benchmark. Also, the fund’s return on equity (ROE), which measures how effectively and efficiently a company and its management are using stockholder equity, was materially higher than that of the benchmark. This is not surprising, as ROE is one of several important metrics that we consider when selecting current and potential portfolio holdings. While we may occasionally have small overweights or underweights, we believe sector neutrality versus the benchmark helps us avoid risks due to large moves in any individual sector. Therefore, the fund’s sector allocations as of June 30 were fairly similar to those of the index. Another means of controlling risk is broad diversification: We had close to 300 holdings at midyear, and very few positions, as shown in the Twenty-Five Largest S ector D iversification Holdings table on page 10, represented 1.0% or QM U.S. MSCI US more of the fund’s Small-Cap Small Cap assets. A third means Growth Growth of controlling risk is As of 6/30/16 Equity Fund Index managing position sizes: Information Technology 22.9% 22.1% We tend to have larger Health Care 19.8 19.5 positions in companies Consumer Discretionary 19.2 18.1 that are proven or stable, such as consumer Industrials and Business Services 15.9 16.5 staples companies. In Financials 9.2 11.5 contrast, we tend to Consumer Staples 4.7 3.8 have smaller positions in Materials 3.8 4.7 higher-risk companies. Energy

3.0

2.8

Telecommunication Services

0.0

0.7

Utilities

0.0

0.3

Other and Reserves

1.5

0.0

100.0%

100.0%

Total

Based on net assets as of 6/30/16.

5

Some of the fund’s largest holdings were also among the largest contributors to absolute performance in the first half of 2016. For example, off-price retailer Burlington Stores was

our top contributor. Off-price retailers have been an interesting subset of retail stocks, and many of them have outperformed in the past few years. We believe the company, which has good return on invested capital and a good growth profile, is expected to grow its earnings in the 15% to 20% range over the next few years. Also, Burlington bought back almost 5% of its shares outstanding during the past year, a period during which its stock price declined. Domino’s Pizza was also a significant contributor. Domino’s, which is benefiting from international expansion, has good return on capital metrics. Its technology for online ordering is a significant differentiator, helping the company increase market share at the expense of smaller pizza chains that are limited in marketing abilities and digital investments. (Please refer to the portfolio of investments for a complete list of holdings and the amount each represents in the portfolio.) Of course, some holdings did not perform well in the last six months, even though their metrics suggest that their longer-term performance should be favorable. For example, shares of IT services company Maximus—a provider of business process solutions and outsourced services to government health and human services agencies—declined. The company has been benefiting from growth in certain international markets, including the UK. One reason for its underperformance was a slow start to a new long-term contract. Nevertheless, Maximus is a high ROE business with good growth characteristics. In the software industry, Tyler Technologies and Manhattan Associates also disappointed. Tyler is a provider of integrated technology and software services to the public sector. It is a high-quality business with a “sticky” revenue stream—governments tend not to change things unless forced to—and the company is transforming to a “software as a service” business model. The company has a history of good growth rates, and we believe it will remain a leader in its markets. Manhattan is a provider of supply chain management software and services. The company features good sales and earnings growth and high returns on invested capital, and it is benefiting from the efforts of companies to develop multiple and simultaneous points of contact with customers—so-called omni-channel marketing. A new holding in our reporting period was Moog, which manufactures precision motion and fluid control systems for aerospace and defense industries. We acquired the stock because it was cheap and had a high free cash flow yield. Moog bought back its shares during the past year and has shrunk its share count by approximately 19% since the end of 2013.

6

OUTLOOK

The UK’s decision to leave the European Union sent shockwaves throughout global financial markets. While equities reacted very negatively for a couple of days, they rebounded sharply as we finished the first half of 2016. The direct implications for the U.S. appear to be minor, but there seems to be a consensus that this will cause global economic growth— especially in the UK and Continental Europe—to decelerate. One positive side effect of all these developments is a reduced likelihood of interest rate increases this year by the Federal Reserve. Continued low interest rates are likely to provide a boost to the housing market and consumer demand. The stubborn low-growth environment around the world is likely to further delay Fed rate hikes. Overseas, other central banks are expected to take all necessary measures to lessen the impact of any potential slowdown due to events in the UK. Through our disciplined stock selection process, we continue to seek and invest in small-cap growth stocks with favorable attributes. We especially like high-quality stocks of companies that generate good cash flows and are judicious in deploying capital. We believe that such companies will distinguish themselves over time with superior performance relative to lower-quality businesses. We remain grateful for the confidence that our shareholders have in our investment management abilities. Thank you for investing with T. Rowe Price. Respectfully submitted,

Sudhir Nanda Chairman of the fund’s Investment Advisory Committee July 22, 2016 The committee chairman has day-to-day responsibility for managing the portfolio and works with committee members in developing and executing the fund’s investment program.

7

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

R isks of I nvesting in the F und 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 and falling prices. The value of a stock in which the fund invests may decline due to general weakness in the U.S. stock market, such as when the U.S. financial markets decline, or because of factors that affect a particular company or industry. Because the fund invests primarily in securities issued by small-cap companies, it is likely to be more volatile than a fund that focuses on securities issued by larger companies. Small companies often have less experienced management, narrower product lines, more limited financial resources, and less publicly available information than larger companies. In addition, smaller companies are typically more sensitive to changes in overall economic conditions and their securities may be difficult to trade. Different investment styles tend to shift in and out of favor depending on market conditions and investor sentiment. The fund’s growth approach to investing could cause it to underperform other stock funds that employ a different investment style. Growth stocks tend to be more volatile than certain other types of stocks, and their prices may fluctuate more dramatically than the overall stock market. A stock with growth characteristics can have sharp price declines due to decreases in current or expected earnings and may lack dividends that can help cushion its share price in a declining market. The fund’s strategy relies heavily on quantitative models and the analysis of specific metrics to construct the portfolio. The impact of these metrics on a stock’s performance can be difficult to predict, and stocks that previously possessed certain desirable quantitative characteristics may not continue to demonstrate those same characteristics in the future. In addition, relying on quantitative models entails the risk that the models themselves may be limited or incorrect, that the data on which the models rely may be incorrect or incomplete, and that the advisor may not be successful in selecting companies for investment or determining the weighting of particular stocks in the fund’s portfolio. Any of these factors could cause the fund to underperform funds with similar strategies that do not select stocks based on quantitative analysis. G lossary Earnings growth rate – current fiscal year: Measures the annualized percent change in earnings per share from the prior fiscal year to the current fiscal year. Lipper indexes: Fund benchmarks that consist of a small number (10 to 30) of the largest mutual funds in a particular category as tracked by Lipper Inc. MSCI US Small Cap Growth Index: Tracks the performance of domestic small-cap growth stocks as defined by MSCI.

8

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

G lossary ( continued ) Price-to-earnings (P/E) ratio – 12 months forward: A valuation measure calculated by dividing the price of a stock by the analysts’ forecast of the next 12 months’ expected earnings. The ratio is a measure of how much investors are willing to pay for the company’s future earnings. The higher the P/E, the more investors are paying for a company’s earnings growth in the next 12 months. Projected earnings growth rate (IBES): A company’s expected earnings per share growth rate for a given time period based on the forecast from the Institutional Brokers’ Estimate System, which is commonly referred to as IBES. Return on equity (ROE) – current fiscal year: A valuation measure calculated by dividing the company’s current fiscal year net income by shareholders’ equity (i.e., the company’s book value). ROE measures how much a company earns on each dollar that common stock investors have put into the company. It indicates how effectively and efficiently a company and its management are using stockholder investments. Note: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

9

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

P ortfolio H ighlights

TWENTY-FIVE LARGEST HOLDINGS

Percent of Net Assets 6/30/16

Casey’s General Stores Tyler Technologies Vail Resorts Domino’s Pizza Burlington Stores



1.1% 1.1 1.1 1.1 1.0

MarketAxess Holdings Toro Maximus Manhattan Associates J & J Snack Foods



1.0 0.9 0.9 0.9 0.9

Equity LifeStyle Properties Centene Helen of Troy Limited Murphy USA Carter’s



0.8 0.8 0.8 0.8 0.8

Align Technology Pool Middleby Lennox International Prestige Brands



0.8 0.8 0.8 0.8 0.7

Teledyne Technologies Berry Plastics Ultimate Software Group ServiceMaster Global Holdings CBOE Holdings



0.7 0.7 0.7 0.7 0.7

Total



21.4%

Note: The information shown does not reflect any exchange-traded funds (ETFs), cash reserves, or collateral for securities lending that may be held in the portfolio.

10

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

P ortfolio H ighlights

CONTRIBUTIONS TO THE CHANGE IN NET ASSET VALUE

Six Months Ended 6/30/16

Best Contributors Burlington Stores MarketAxess Holdings CoreSite Realty CyrusOne Domino’s Pizza Diamondback Energy FEI West Pharmaceutical Services Toro Equity LifeStyle Properties Total

Worst Contributors 10¢ 6 6 6 5 5 4 4 4 4 54¢

Synaptics Alkermes Ionis Pharmaceuticals Cavium Ultragenyx Pharmaceutical ARRIS International* Incyte OSI Systems SS&C Technologies Holdings Jones Lang LaSalle Total

-5¢ -5 -5 -4 -4 -4 -4 -4 -4 -3 -42¢

12 Months Ended 6/30/16

Best Contributors MarketAxess Holdings Heartland Payment Systems** CyrusOne* Casey’s General Stores Equity LifeStyle Properties Burlington Stores John Bean Technologies Vail Resorts Tyler Technologies CoreSite Realty* Total     *Position added. **Position eliminated.

 

11

Worst Contributors 10¢ 10 8 8 8 8 7 7 7 7 80¢

PRA Group Bluebird Bio Waddell & Reed Financial Synaptics SemGroup Comscore Team Health Holdings Targa Resources** MGIC Investment SM Energy** Total

-7¢ -7 -7 -7 -6 -6 -6 -6 -5 -5 -62¢

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Performance and Expenses G rowth of $10,000 This chart shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with benchmarks, which may include a broad-based market index and a peer group average or index. Market indexes do not include expenses, which are deducted from fund returns as well as mutual fund averages and indexes.

Q M U . S . S M A L L- C A P G R O W T H EQ U I TY F U N D As of 6/30/16 $30,000

QM U.S. Small-Cap Growth Equity Fund $24,848

26,000

MSCI US Small Cap Growth Index $22,249 Lipper Small-Cap Growth Funds Index $18,194

22,000 18,000 14,000 10,000

6/06

6/07

6/08

6/09

6/10

6/11

6/12

6/13

6/14

6/15

6/16

Note: Performance for the I Class will vary due to its differing fee structure.

A verage A nnual C ompound T otal R eturn Periods Ended 6/30/16 QM U.S. Small-Cap Growth Equity Fund



1 Year

5 Years

10 Years

-4.96%

10.87%

9.53%

Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please visit our website (troweprice.com) or contact a T. Rowe Price representative at 1-800-225-5132. The performance information shown does not reflect the deduction of a 1% redemption fee on shares held for 90 days or less. If it did, the performance would be lower. This table shows how the fund would have performed each year if its actual (or cumulative) returns for the periods shown had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. When assessing performance, investors should consider both short- and long-term returns. QM U.S. Small-Cap Growth Equity Fund–I Class has less than one year’s performance, as its inception date is 3/23/16. Its since-inception performance as of 6/30/16 was 7.23%.

12

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

E xpense R atio QM U.S. Small-Cap Growth Equity Fund







0.82%

QM U.S. Small-Cap Growth Equity Fund–I Class





0.66

The expense ratio shown is as of the fund’s fiscal year ended 12/31/15. The expense ratio for the QM U.S. Small-Cap Growth Equity Fund–I Class is estimated as of the class’s inception date of 3/23/16. This number may vary from the expense ratio shown elsewhere in this report because it is based on a different time period and, if applicable, includes acquired fund fees and expenses but does not include fee or expense waivers.

F und E xpense E xample As a mutual fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees or sales loads, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the most recent six-month period and held for the entire period. Please note that the fund has two share classes: The original share class (Investor Class) charges no distribution and service (12b-1) fee, and the I Class shares are also available to institutionally oriented clients and impose no 12b-1 or administrative fee payment. Each share class is presented separately in the table. Actual Expenses The first line of the following table (Actual) provides information about actual account values and expenses based on the fund’s actual returns. You may use the information on this line, together with your account balance, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes The information on the second line of the table (Hypothetical) is based on hypothetical account values and expenses derived from the fund’s actual expense ratio and an assumed 5% per year rate of return before expenses (not the fund’s actual return). You may compare the ongoing costs of investing in the fund with other funds by contrasting this 5% hypothetical example and the 5% hypothetical examples that appear in the shareholder reports of the other funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

13

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

F und E xpense E xample ( continued ) Note: T. Rowe Price charges an annual account service fee of $20, generally for accounts with less than $10,000. The fee is waived for any investor whose T. Rowe Price mutual fund accounts total $50,000 or more; accounts electing to receive electronic delivery of account statements, transaction confirmations, prospectuses, and shareholder reports; or accounts of an investor who is a T. Rowe Price Preferred Services, Personal Services, or Enhanced Personal Services client (enrollment in these programs generally requires T. Rowe Price assets of at least $100,000). This fee is not included in the accompanying table. If you are subject to the fee, keep it in mind when you are estimating the ongoing expenses of investing in the fund and when comparing the expenses of this fund with other funds. You should also be aware that the expenses shown in the table highlight only your ongoing costs and do not reflect any transaction costs, such as redemption fees or sales loads. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. To the extent a fund charges transaction costs, however, the total cost of owning that fund is higher.

Qm U.S. S mall- C ap G rowth E quity F und

Beginning Account Value 1/1/16

Ending Account Value 6/30/16

Expenses Paid During Period 1/1/16 to 6/30/161

$1,000.00

$1,015.20

$4.11

Hypothetical (assumes 5% return before expenses)

1,000.00 3/24/162

1,020.79 6/30/16

4.12 3/24/16 to 6/30/162,3

I Class Actual

1,000.00

1,072.30

1.85

1/1/162

6/30/16

1/1/16 to 6/30/162,4

1,000.00

1,021.58

3.32

Investor Class Actual

Hypothetical (assumes 5% return before expenses)

 xpenses are equal to the class’s annualized expense ratio for the 6-month period, E multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (182), and divided by the days in the year (366) to reflect the half-year period. The annualized expense ratio of the Investor Class was 0.82%. 2 The actual expense example is based on the period since the class’s start of operations on 3/24/16, one day after inception; the hypothetical expense example is based on the half-year period beginning 1/1/16, as required by the SEC. 1

14

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

F und E xpense E xample ( continued ) Qm U.S. S mall- C ap G rowth E quity F und ( continued ) Expenses are equal to the class’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by the number of days in the period (99), and divided by the days in the year (366) to reflect the period since the class’s start of operations. The annualized expense ratio of the I Class was 0.66%. 4 Expenses are equal to the class’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (182), and divided by the days in the year (366) to reflect the half-year period. The annualized expense ratio of the I Class was 0.66%. 3

15

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

F inancial H ighlights

For a share outstanding throughout each period

Investor Class Year 6 Months Ended Ended 6/30/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11

NET ASSET VALUE Beginning of period

$ 25.70

Investment activities Net investment (1) income (loss) Net realized and unrealized gain / loss Total from investment activities Distributions Net investment income Net realized gain Total distributions

$ 25.58

$ 24.99

$ 17.44

$ 15.45

$ 15.82

(0.01)

(0.04)

(0.07)

(0.04)

0.04

(0.13)

0.40

0.63

1.63

7.74

2.38

0.35

0.39

0.59

1.56

7.70

2.42

0.22

– (0.47) (0.47)

– (0.97) (0.97)

– (0.15) (0.15)

(0.03) (0.40) (0.43)

– (0.59) (0.59)

– – –

NET ASSET VALUE End of period

$ 26.09

$ 25.70

$ 25.58

$ 24.99

$ 17.44

$ 15.45

2.33%

6.38%

44.19%

15.69%

1.54%

0.82%

0.85%

0.82%

0.91%

1.11%

(0.16)%

(0.26)%

(0.19)%

0.22%

(0.78)%

Ratios/Supplemental Data (2)

Total return Ratio of total expenses to average net assets Ratio of net investment income (loss) to average net assets

16

1.52% 0.82%

(3)

(0.06)%

(3)

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

F inancial H ighlights

For a share outstanding throughout each period

6 Months Year Ended Ended 6/30/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11

Ratios/Supplemental Data (continued) Portfolio turnover rate Net assets, end of period (in millions)

(1) (2)

(3)

5.1%

9.5%

$ 2,477

$ 2,117

16.8% $

979

12.6% $

771

15.4% $

396

16.9% $

189

Per share amounts calculated using average shares outstanding method. Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions. Total return is not annualized for periods less than one year. Annualized

The accompanying notes are an integral part of these financial statements.

17

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

F inancial H ighlights

For a share outstanding throughout each period

I Class 3/23/16 Through 6/30/16

NET ASSET VALUE Beginning of period

$ 24.35

Investment activities Net investment income

(1)

0.02 1.73 1.75

Net realized and unrealized gain / loss Total from investment activities (1)

Redemption fees added to paid-in capital

0.01

NET ASSET VALUE End of period

$ 26.11

Ratios/Supplemental Data (2)

Total return

7.23%

Ratio of total expenses to average net assets

0.66%

(3)

Ratio of net investment income to average net assets

0.37%

(3)

Portfolio turnover rate Net assets, end of period (in thousands)

(1) (2)

(3)

5.1% $ 98,267

Per share amounts calculated using average shares outstanding method. Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions. Total return is not annualized for periods less than one year. Annualized

The accompanying notes are an integral part of these financial statements.

18

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

June 30, 2016

P ortfolio of I nvestments

‡



Shares

$ Value

Gentherm (1)

145,800

4,994

Tenneco (1)

178,600

8,324

(Cost and value in $000s)

COMMON STOCKS 98.5% CONSUMER DISCRETIONARY 19.2% Auto Components 0.5%

13,318 Distributors 0.8% Pool

209,700

19,718 19,718

Diversified Consumer Services 1.7% Capella Education

102,600

5,401

Service Corporation International

630,300

17,043

ServiceMaster Global Holdings (1)

470,000

18,706

Sotheby's (2)

116,471

3,191 44,341

Hotels, Restaurants & Leisure 6.4% Brinker Buffalo Wild Wings (1) Choice Hotels International Churchill Downs Denny's (1)

264,000

12,020

48,300

6,711

174,200

8,295

90,680

11,458

1,075,319

11,538

Diamond Resorts International (1)(2)

401,000

12,014

Domino's Pizza

206,500

27,130

Jack in the Box

155,600

13,369

Marriott Vacations Worldwide

194,900

13,349

Red Robin Gourmet Burgers (1)

60,700

2,879

Six Flags Entertainment

216,800

12,564

The Cheesecake Factory

117,400

5,652

Vail Resorts

200,630

27,733 164,712

19

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

196,900

20,249

(Cost and value in $000s)

Household Durables 0.8% Helen of Troy Limited (1)

20,249 Internet & Catalog Retail 1.5% HSN

272,200

13,319

Liberty TripAdvisor Holdings, Class A (1)

325,000

7,111

Liberty Ventures, Series A (1)

373,900

13,861

Shutterfly (1)

115,500

5,383 39,674

Leisure Products 0.6% Brunswick Polaris Industries (2)

274,040

12,420

35,400

2,894 15,314

Media 1.8% Cable One

25,300

12,939

Eros International (1)(2)

115,500

1,879

Gray Television (1)

397,000

4,307

John Wiley & Sons

16,100

840

Live Nation Entertainment (1)

580,600

13,644

Starz (1)

386,750

11,572 45,181

Multiline Retail 0.4% Big Lots (2)

226,600

11,355 11,355

Specialty Retail 3.0% Aaron's

68,359

1,496

Buckle (2)

31,100

808

Burlington Stores (1)

389,300

25,970

Chico's

160,300

1,717

49,600

3,977

245,230

15,587

Children's Place Monro Muffler Brake

20

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

Murphy USA (1)

272,700

20,224

Sally Beauty Supply (1)

291,940

8,586

(Cost and value in $000s)

78,365 Textiles, Apparel & Luxury Goods 1.7% Carters

188,900

G-III Apparel (1)

210,600

9,629

Steven Madden (1)

381,500

13,040

20,112

42,781 495,008

Total Consumer Discretionary

CONSUMER STAPLES 4.7% Beverages 0.4% Boston Beer, Class A (1)

60,100

10,279 10,279

Food & Staples Retailing 1.3% Casey's General Stores

221,500

29,129

Rite Aid (1)

646,800

4,845 33,974

Food Products 2.4% Cal-Maine Foods (2)

178,800

7,925

J & J Snack Foods

186,381

22,230

50,700

2,161

Post Holdings (1)(2)

188,890

15,619

TreeHouse Foods (1)

142,300

14,607

John B Sanfilippo & Son

62,542 Household Products 0.5% Spectrum Brands Holdings (2)

94,200

11,239 11,239

21

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

66,600

3,076

(Cost and value in $000s)

Personal Products 0.1% Nu Skin Enterprises, Class A

3,076 121,110

Total Consumer Staples

ENERGY 3.0% Energy Equipment & Services 0.6% Atwood Oceanics (2)

50,500

632

Core Laboratories

21,900

2,713

Dril-Quip (1)

87,400

5,107

Oceaneering International

148,000

4,419

Oil States International (1)

81,200

2,670

113,800

761

Tesco

16,302 Oil, Gas & Consumable Fuels 2.4% Carrizo Oil & Gas (1)

242,500

8,694

Diamondback Energy (1)

128,800

11,748

Gran Tierra Energy (1)

487,600

1,648

Matador Resources (1)

515,100

10,199

PDC Energy (1)

209,550

12,072

70,900

2,308

SemGroup World Fuel Services

293,800

13,953 60,622 76,924

Total Energy

FINANCIALS 9.2% Banks 1.0% Signature Bank (1)

111,600

13,941

SVB Financial Group (1)

92,220

8,776

Texas Capital Bancshares (1)

67,800

3,170 25,887

22

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

(Cost and value in $000s)

Capital Markets 0.8% Affiliated Managers Group (1)

21,000

2,956

E*TRADE Financial (1)

434,227

10,200

Financial Engines (2)

131,600

3,404

Waddell & Reed Financial, Class A

211,300

3,639 20,199

Consumer Finance 0.1% Pra (1)

162,800

3,930 3,930

Diversified Financial Services 2.8% CBOE Holdings

277,900

18,514

73,000

11,784

MarketAxess Holdings

177,700

25,838

MSCI, Class A

190,148

14,664

28,922

243

FactSet Research Systems

Newstar Financial (1)

71,043 Insurance 0.4% AmTrust Financial Services

407,506

9,984 9,984

Real Estate Investment Trusts 3.3% CoreSite Realty, REIT

198,300

CubeSmart, REIT

293,600

9,067

CyrusOne, REIT

314,900

17,527

Equity LifeStyle Properties, REIT

260,900

20,885

FelCor Lodging Trust, REIT

17,587

1,143,300

7,123

Forest City Realty Trust, Class A, REIT

413,100

9,216

Pebblebrook Hotel Trust, REIT (2)

150,640

3,954 85,359

Real Estate Management & Development 0.4% Jones Lang LaSalle

23

54,200

5,282

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

(Cost and value in $000s)

Kennedy-Wilson Holdings

331,100

6,277 11,559

Thrifts & Mortgage Finance 0.4% MGIC Investment (1)

873,000

Radian

526,600

5,195 5,487 10,682 238,643

Total Financials

HEALTH CARE 19.8% Biotechnology 5.0% ACADIA Pharmaceuticals (1)(2)

215,700

7,002

Acceleron Pharma (1)

60,400

2,052

Acorda Therapeutics (1)

90,800

2,316

Agios Pharmaceuticals (1)(2)

55,700

2,334

Alkermes (1)

94,100

4,067

Alnylam Pharmaceuticals (1)

57,900

3,213

AMAG Pharmaceuticals (1)(2)

106,000

2,536

BioMarin Pharmaceutical (1)

44,800

3,486

Bluebird Bio (1)(2)

62,600

2,710

Cepheid (1)

173,730

5,342

Dyax (1)

247,200

274

Exelixis (1)(2)

647,800

5,059

Incyte (1)

115,288

9,221

Insmed (1)

306,200

3,019

85,100

1,101

Ionis Pharmaceuticals (1)(2)

109,400

2,548

Ligand Pharmaceuticals, Class B (1)(2)

104,100

12,416

Insys Therapeutics (1)(2)

Medivation (1)

47,400

2,858

Neurocrine Biosciences (1)

297,600

13,526

Novavax (1)(2)

654,100

4,755

Ophthotech (1) OPKO Health (1)(2) Prothena (1)

24

49,600

2,531

481,300

4,495

73,200

2,559

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

63,500

184

Repligen (1)

122,500

3,352

Seattle Genetics (1)

120,100

4,853

Spark Therapeutics (1)

71,900

3,676

TESARO (1)(2)

90,800

7,632

Ultragenyx Pharmaceutical (1)

58,800

2,876

United Therapeutics (1)

58,300

6,175

(Cost and value in $000s)

Regulus Therapeutics (1)(2)

128,168 Health Care Equipment & Supplies 5.1% Abaxis

96,600

4,563

Align Technology (1)

246,100

19,823

Cantel Medical

156,000

10,722

Cooper Companies

50,550

8,673

Dexcom (1)

190,700

15,128

Halyard Health (1)

150,100

4,881

ICU Medical (1)

109,500

12,346

IDEXX Laboratories (1)

108,400

10,066

Inogen (1)

144,500

7,241

Masimo (1)

222,300

11,674

Natus Medical (1)

220,400

8,331

West Pharmaceutical Services

238,900

18,128 131,576

Health Care Providers & Services 3.9% Air Methods (1)(2)

86,400

3,096

289,351

20,651

81,000

11,041

CorVel (1)

130,966

5,655

HealthSouth

197,700

7,675

MEDNAX (1)

116,300

8,423

Surgical Care Affiliates (1)

203,500

9,701

Team Health Holdings (1)

248,000

10,086

U.S. Physical Therapy

165,000

9,935

Centene (1) Chemed

25

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

133,700

14,343

(Cost and value in $000s)

WellCare Health Plans (1)

100,606 Health Care Technology 0.3% Omnicell (1)

242,700

8,308 8,308

Life Sciences Tools & Services 3.0% Bio-Rad Laboratories, Class A (1)

63,900

9,139

Bruker

291,800

6,635

Cambrex (1)

248,000

12,829

Charles River Laboratories International (1)

158,400

13,058

INC Research Holdings, Class A (1)

208,700

7,958

Parexel International (1)

176,700

11,111

PRA Health Sciences (1)

107,200

4,477

VWR (1)

397,400

11,485 76,692

Pharmaceuticals 2.5% Akorn (1)

357,200

10,175

Depomed (1)(2)

343,400

6,737

Innoviva (2)

109,100

1,149

Jazz Pharmaceuticals (1)

15,200

2,148

Mallinckrodt (1)

20,580

1,251

Medicines Company (1)(2)

142,400

4,789

Nektar Therapeutics (1)

315,400

4,488

Pacira Pharmaceuticals (1)(2)

75,000

2,530

Phibro Animal Health, Class A

226,300

4,223

Prestige Brands (1)

346,900

19,218

Therapeutics MD (1)(2)

569,300

4,839

97,329

2,208

Theravance Biopharma (1)(2)

63,755 Total Health Care

26

509,105

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

329,300

6,020

(Cost and value in $000s)

INDUSTRIALS & BUSINESS SERVICES 15.9% Aerospace & Defense 2.4% Aerojet Rocketdyne Holdings (1) Esterline Technologies (1)

57,000

3,536

HEICO, Class A

257,126

13,795

Hexcel

241,500

10,056

Moog, Class A (1)

188,000

10,137

Teledyne Technologies (1)

193,930

19,209 62,753

Airlines 0.5% Allegiant Travel

40,000

6,060

Spirit Airlines (1)

143,300

6,430 12,490

Building Products 1.3% AAON

264,400

7,274

Lennox International

135,900

19,379

Patrick Industries (1)

113,100

6,819 33,472

Commercial Services & Supplies 2.2% Clean Harbors (1)

115,400

6,014

Healthcare Services

278,800

11,537

Rollins

526,825

15,420

62,000

1,539

US Ecology

190,800

8,767

Waste Connections

134,375

9,682

West

126,500

2,487

Team (1)

55,446 Construction & Engineering 0.2% Valmont Industries

41,200

5,573 5,573

27

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

58,600

14,530

137,000

8,217

(Cost and value in $000s)

Electrical Equipment 1.0% Acuity Brands AZZ Generac Holdings (1)

99,700

3,486 26,233

Machinery 5.0% Actuant, Class A

81,900

Chart Industries (1)

39,900

963

175,670

13,876

37,200

2,213

Graco Hyster-Yale Materials Handling IDEX John Bean Technologies Lincoln Electric Holdings

1,852

80,900

6,642

283,100

17,331

79,700

4,709

Middleby (1)

170,500

19,650

Nordson

143,700

12,015

Standex International

57,700

4,768

Sun Hydraulics

89,100

2,645

Toro

268,300

23,664

Wabtec

122,320

8,590

Woodward

173,630

10,008 128,926

Marine 0.4% Kirby (1)

99,200

6,189

Matson

131,300

4,240 10,429

Professional Services 1.4% Dun & Bradstreet

91,800

11,185

Exponent

227,608

13,295

Huron Consulting Group (1)

145,917

8,816

TransUnion (1)

52,273

1,748

Trinet (1)

57,500

1,195 36,239

28

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

29,500

11,049

115,700

3,729

(Cost and value in $000s)

Road & Rail 1.3% AMERCO Avis Budget Group (1) Landstar System Old Dominion Freight Line (1)

96,500

6,626

195,300

11,778 33,182

Trading Companies & Distributors 0.2% Beacon Roofing Supply (1)

127,200

5,784 5,784 410,527

Total Industrials & Business Services

INFORMATION TECHNOLOGY 22.9% Communications Equipment 1.1% ARRIS International (1)

437,900

9,179

Echostar (1)

103,400

4,105

NetScout Systems (1)

165,700

3,687

Plantronics

180,500

7,942

Polycom (1)

258,784

2,911 27,824

Electronic Equipment, Instruments & Components 2.1% Anixter International (1)

102,500

5,461

Cognex

275,900

11,892

Coherent (1)

135,130

12,402

FEI

143,700

15,359

OSI Systems (1)

110,700

6,435

VeriFone Systems (1)

166,400

3,085 54,634

Internet Software & Services 2.5% Comscore (1) CoStar Group (1) Envestnet (1)

29

170,400

4,069

50,400

11,020

163,400

5,443

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

j2 Global

123,840

7,823

LogMeIn (1)

(Cost and value in $000s)

115,600

7,333

MercadoLibre

37,400

5,261

Stamps.com (1)

95,530

8,351

WebMD Health (1)

241,112

14,011 63,311

IT Services 6.6% Blackhawk Network Holdings (1)

179,900

6,025

Booz Allen Hamilton

386,400

11,453

Broadridge Financial Solutions

279,600

18,230

Cardtronics (1)

267,844

10,663

CoreLogic (1)

346,700

13,341

DST Systems

133,600

15,555

EPAM Systems (1)

52,630

3,384

Euronet Worldwide (1)

200,000

13,838

Gartner (1)

156,000

15,196

56,846

4,058

Global Payments Jack Henry & Associates

111,800

9,757

Maximus

422,500

23,394

88,500

1,797

Perficient (1) Travelport Worldwide

458,000

5,903

WEX (1)

200,720

17,798 170,392

Semiconductor & Semiconductor Equipment 2.2% Cabot Microelectronics

79,500

3,366

Cavium (1)

142,300

5,493

Cirrus Logic (1)

222,630

8,636

Integrated Device Technology (1)

553,700

11,146

Microsemi (1)

412,100

13,467

Synaptics (1)

184,000

9,890

Teradyne

251,600

4,954 56,952

30

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

(Cost and value in $000s)

Software 8.2% ACI Worldwide (1)

415,500

8,106

Aspen Technology (1)

278,600

11,211

Blackbaud

256,800

17,437

Commvault Systems (1)

110,000

4,751

Computer Modelling (CAD)

514,500

4,118

Descartes Systems (1)

373,300

7,126

Fair Isaac

162,800

18,398

Fortinet (1)

371,900

11,748

Manhattan Associates (1)

350,400

22,471

Monotype Imaging Holdings

135,915

3,348

Pegasystems

317,600

8,559

Proofpoint (1)(2)

166,600

10,511

PTC (1)

337,850

12,696

SS&C Technologies Holdings

552,800

15,523

Take-Two Interactive Software (1)

214,300

8,126

Tyler Technologies (1)

169,700

28,291

89,200

18,758

Ultimate Software Group (1)

211,178 Technology Hardware, Storage & Peripherals 0.2% Cray (1)

162,700

4,868 4,868 589,159

Total Information Technology

MATERIALS 3.8% Chemicals 2.1% GCP Applied Technologies (1)

393,100

Minerals Technologies

120,300

6,833

34,200

14,172

PolyOne

378,600

13,342

Stepan

72,038

4,288

NewMarket

31

10,236

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Shares

$ Value

71,700

5,249

(Cost and value in $000s)

W. R. Grace

54,120 Containers & Packaging 1.3% Berry Plastics (1)

488,900

Graphic Packaging Holding

1,045,900

18,995 13,115 32,110

Metals & Mining 0.2% Compass Minerals

50,700

3,761

Worthington Industries

43,800

1,853 5,614

Paper & Forest Products 0.2% Clearwater Paper (1) Kapstone Paper & Packaging

41,600

2,720

210,300

2,736 5,456 97,300

Total Materials

2,537,776

Total Common Stocks (Cost $2,263,108)

SHORT-TERM INVESTMENTS 1.3% Money Market Funds 1.3% T. Rowe Price Reserve Investment Fund, 0.32% (3)(4)

33,910,492

33,910 33,910

Total Short-Term Investments (Cost $33,910)

SECURITIES LENDING COLLATERAL 1.3% Investments in a Pooled Account through Securities Lending Program with State Street Bank and Trust Company 1.3% Short-Term Funds 1.3% T. Rowe Price Short-Term Reserve Fund, 0.33% (3)(4)

32

3,247,649

32,476

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



$ Value

(Cost and value in $000s)

Total Investments through Securities Lending Program with State Street Bank and Trust Company

32,476

Total Securities Lending Collateral (Cost $32,476)

32,476

Total Investments in Securities 101.1% of Net Assets (Cost $2,329,494) ‡ (1) (2) (3) (4)

CAD REIT

$

2,604,162

Shares are denominated in U.S. dollars unless otherwise noted. Non-income producing All or a portion of this security is on loan at June 30, 2016 -- total value of such securities at period-end amounts to $32,034. See Note 3. Seven-day yield Affiliated Company Canadian Dollar A domestic Real Estate Investment Trust whose distributions pass-through with original tax character to the shareholder

33

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund



Affiliated Companies ($000s)

The fund may invest in certain securities that are considered affiliated companies. As defined by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. The following securities were considered affiliated companies for all or some portion of the six months ended June 30, 2016. Purchase and sales cost and investment income reflect all activity for the period then ended. Purchase Cost

Affiliate T. Rowe Price Reserve Investment Fund T. Rowe Price Short-Term Reserve Fund

Sales Cost

Investment Income

¤

¤$

¤

¤

Totals

49 $ —^

$

49 $

Value 6/30/16

Value 12/31/15

33,910 $

38,991

32,476

32,586

66,386 $

71,577

¤ Purchase and sale information not shown for cash management funds. ^ Excludes earnings on securities lending collateral, which are subject to rebates and fees as described in Note 3.

Amounts reflected on the accompanying financial statements include the following amounts related to affiliated companies: Investment in securities, at cost

$

Dividend income Interest income

66,386 49 —

Investment income

$

49

Realized gain (loss) on securities

$

—

Capital gain distributions from mutual funds

$

—

The accompanying notes are an integral part of these financial statements.

34

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

June 30, 2016

S tatement of A ssets and L iabilities ($000s, except shares and per share amounts)

Assets Investments in securities, at value (cost $2,329,494)

$ 2,604,162

Receivable for shares sold

9,600

Receivable for investment securities sold

3,703

Dividends receivable

1,488

Foreign currency (cost $34)

34

Other assets

283

Total assets

2,619,270

Liabilities Obligation to return securities lending collateral

32,592

Payable for investment securities purchased

7,046

Payable for shares redeemed

2,322

Investment management fees payable

1,333

Due to affiliates

100

Other liabilities

223

Total liabilities

43,616

NET ASSETS

$ 2,575,654

Net Assets Consist of: Accumulated net investment loss

$

Accumulated undistributed net realized gain Net unrealized gain

274,668

Paid-in capital applicable to 98,725,269 shares of $0.0001 par value capital stock outstanding; 1,000,000,000 shares authorized NET ASSETS

(595) 4,150

2,297,431 $ 2,575,654

NET ASSET VALUE PER SHARE Investor Class ($2,477,387,062 / 94,961,473 shares outstanding)

$

26.09

I Class ($98,267,003 / 3,763,796 shares outstanding)

$

26.11

The accompanying notes are an integral part of these financial statements.

35

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

S tatement of O perations ($000s)

6 Months Ended 6/30/16

Investment Income (Loss) Income Dividend Securities lending

$

Total income

7,913 589 8,502

Expenses Investment management Shareholder servicing Investor Class Prospectus and shareholder reports Investor Class Custody and accounting Registration Legal and audit Directors Miscellaneous

7,133 1,614 76 120 128 14 5 7

Total expenses

9,097

Net investment loss

(595)

Realized and Unrealized Gain / Loss Net realized gain on securities Change in net unrealized gain / loss on securities

6,197 50,174

Net realized and unrealized gain / loss

56,371

INCREASE IN NET ASSETS FROM OPERATIONS

The accompanying notes are an integral part of these financial statements.

36

$

55,776

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

S tatement of C hanges in N et A ssets ($000s)

6 Months Ended 6/30/16

Year Ended 12/31/15

Increase (Decrease) in Net Assets Operations Net investment loss Net realized gain Change in net unrealized gain / loss Increase (decrease) in net assets from operations

$

Distributions to shareholders Net realized gain Investor Class Capital share transactions* Shares sold Investor Class I Class Distributions reinvested Investor Class Shares redeemed Investor Class I Class Redemption fees received Increase in net assets from capital share transactions

(595) 6,197 50,174

$

(2,441) 36,702 (45,832)

55,776

(11,571)

–

(36,730)

696,085 98,372

1,497,517 –

–

32,706

(389,439) (2,323) 141

(343,769) – 236

402,836

1,186,690

458,612 2,117,042

1,138,389 978,653

Net Assets Increase during period Beginning of period End of period Undistributed (accumulated) net investment income (loss)

37

$

2,575,654

(595)

$

2,117,042

–

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

S tatement of C hanges in N et A ssets (000s)

*Share information Shares sold Investor Class I Class Distributions reinvested Investor Class Shares redeemed Investor Class I Class Increase in shares outstanding

The accompanying notes are an integral part of these financial statements.

38

6 Months Ended 6/30/16

Year Ended 12/31/15

28,433 3,853

55,676 –

–

1,291

(15,854) (89) 16,343

(12,851) – 44,116

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund Unaudited

June 30, 2016

N otes to F inancial S tatements

T. Rowe Price Quantitative Management Funds, Inc. (the corporation), is registered under the Investment Company Act of 1940 (the 1940 Act). The QM U.S. Small-Cap Growth Equity Fund (the fund), formerly the Diversified SmallCap Growth Fund, is a diversified, open-end management investment company established by the corporation. The fund seeks long-term growth of capital by investing primarily in common stocks of small growth companies. The fund has two classes of shares: the QM U.S. Small-Cap Growth Equity Fund original share class, referred to in this report as the Investor Class, incepted on June 30, 1997, and the QM U.S. Small-Cap Growth Equity Fund–I Class (I Class), incepted on March 23, 2016. I Class shares generally are available only to investors meeting a $1,000,000 minimum investment or certain other criteria. Each class has exclusive voting rights on matters related solely to that class; separate voting rights on matters that relate to both classes; and, in all other respects, the same rights and obligations as the other class. Note 1 - Significant Accounting Policies Basis of Preparation  The fund is an investment company and follows accounting

and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 (ASC 946). The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), including, but not limited to, ASC 946. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity. Investment Transactions, Investment Income, and Distributions  Income and expenses are recorded on the accrual basis. Dividends received from mutual fund investments are reflected as dividend income; capital gain distributions, if any, are reflected as realized gain/loss. Dividend income and capital gain distributions are recorded on the ex-dividend date. Income tax-related interest and penalties, if incurred, would be recorded as income tax expense. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the identified cost basis. Distributions from REITs are initially recorded as dividend income and, to the extent such represent a return of

39

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

capital or capital gain for tax purposes, are reclassified when such information becomes available. Income distributions are declared and paid by each class annually. Distributions to shareholders are recorded on the ex-dividend date. Capital gain distributions, if any, are generally declared and paid by the fund annually. Currency Translation  Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate, using the mean of the bid and asked prices of such currencies against U.S. dollars as quoted by a major bank. Purchases and sales of securities, income, and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on realized and unrealized security gains and losses is reflected as a component of security gains and losses. Class Accounting  Shareholder servicing, prospectus, and shareholder report

expenses incurred by each class are charged directly to the class to which they relate. Expenses common to both classes, investment income, and realized and unrealized gains and losses are allocated to the classes based upon the relative daily net assets of each class. Rebates  Subject to best execution, the fund may direct certain security trades to brokers who have agreed to rebate a portion of the related brokerage commission to the fund in cash. Commission rebates are reflected as realized gain on securities in the accompanying financial statements and totaled $5,000 for the six months ended June 30, 2016. Redemption Fees  A 1% fee is assessed on redemptions of fund shares held

for 90 days or less to deter short-term trading and to protect the interests of long-term shareholders. Redemption fees are withheld from proceeds that shareholders receive from the sale or exchange of fund shares. The fees are paid to the fund and are recorded as an increase to paid-in capital. The fees may cause the redemption price per share to differ from the net asset value per share. Note 2 - VALUATION

The fund’s financial instruments are valued and each class’s net asset value (NAV) per share is computed at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day the NYSE is open for business.

40

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

Fair Value  The fund’s financial instruments are reported at fair value, which GAAP defines as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The T. Rowe Price Valuation Committee (the Valuation Committee) has been established by the fund’s Board of Directors (the Board) to ensure that financial instruments are appropriately priced at fair value in accordance with GAAP and the 1940 Act. Subject to oversight by the Board, the Valuation Committee develops and oversees pricing-related policies and procedures and approves all fair value determinations. Specifically, the Valuation Committee establishes procedures to value securities; determines pricing techniques, sources, and persons eligible to effect fair value pricing actions; oversees the selection, services, and performance of pricing vendors; oversees valuation-related business continuity practices; and provides guidance on internal controls and valuation-related matters. The Valuation Committee reports to the Board and has representation from legal, portfolio management and trading, operations, risk management, and the fund’s treasurer.

Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP establishes the following fair value hierarchy that categorizes the inputs used to measure fair value: Level 1 – quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at the reporting date Level 2 – inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and credit spreads) Level 3 – unobservable inputs Observable inputs are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use to price the financial instrument. Unobservable inputs are those for which market data are not available and are developed using the best information available about the assumptions that market participants would use to price the financial instrument. GAAP requires valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs. When multiple inputs are used to derive fair value, the financial instrument is assigned to the level within the fair value hierarchy based

41

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

on the lowest-level input that is significant to the fair value of the financial instrument. Input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the degree of judgment used in determining those values. Valuation Techniques  Equity securities listed or regularly traded on a securities exchange or in the over-the-counter (OTC) market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made. OTC Bulletin Board securities are valued at the mean of the closing bid and asked prices. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Listed securities not traded on a particular day are valued at the mean of the closing bid and asked prices for domestic securities and the last quoted sale or closing price for international securities.

For valuation purposes, the last quoted prices of non-U.S. equity securities may be adjusted to reflect the fair value of such securities at the close of the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, the fund will adjust the previous quoted prices to reflect what it believes to be the fair value of the securities as of the close of the NYSE. In deciding whether it is necessary to adjust quoted prices to reflect fair value, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. The fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. The fund uses outside pricing services to provide it with quoted prices and information to evaluate or adjust those prices. The fund cannot predict how often it will use quoted prices and how often it will determine it necessary to adjust those prices to reflect fair value. As a means of evaluating its security valuation process, the fund routinely compares quoted prices, the next day’s opening prices in the same markets, and adjusted prices. Actively traded equity securities listed on a domestic exchange generally are categorized in Level 1 of the fair value hierarchy. Non-U.S. equity securities generally are categorized in Level 2 of the fair value hierarchy despite the availability of quoted prices because, as described above, the fund evaluates and determines whether those quoted prices reflect fair value at the close of the NYSE or require adjustment. OTC Bulletin Board securities, certain preferred securities, and equity securities traded in inactive markets generally are categorized in Level 2 of the fair value hierarchy. 42

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

Investments in mutual funds are valued at the mutual fund’s closing NAV per share on the day of valuation and are categorized in Level 1 of the fair value hierarchy. Assets and liabilities other than financial instruments, including short-term receivables and payables, are carried at cost, or estimated realizable value, if less, which approximates fair value. Thinly traded financial instruments and those for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by the Valuation Committee. The objective of any fair value pricing determination is to arrive at a price that could reasonably be expected from a current sale. Financial instruments fair valued by the Valuation Committee are primarily private placements, restricted securities, warrants, rights, and other securities that are not publicly traded. Subject to oversight by the Board, the Valuation Committee regularly makes good faith judgments to establish and adjust the fair valuations of certain securities as events occur and circumstances warrant. For instance, in determining the fair value of an equity investment with limited market activity, such as a private placement or a thinly traded public company stock, the Valuation Committee considers a variety of factors, which may include, but are not limited to, the issuer’s business prospects, its financial standing and performance, recent investment transactions in the issuer, new rounds of financing, negotiated transactions of significant size between other investors in the company, relevant market valuations of peer companies, strategic events affecting the company, market liquidity for the issuer, and general economic conditions and events. In consultation with the investment and pricing teams, the Valuation Committee will determine an appropriate valuation technique based on available information, which may include both observable and unobservable inputs. The Valuation Committee typically will afford greatest weight to actual prices in arm’s length transactions, to the extent they represent orderly transactions between market participants, transaction information can be reliably obtained, and prices are deemed representative of fair value. However, the Valuation Committee may also consider other valuation methods such as market-based valuation multiples; a discount or premium from market value of a similar, freely traded security of the same issuer; or some combination. Fair value determinations are reviewed on a regular basis and updated as information becomes available, including actual purchase and sale transactions of the issue. Because any fair value determination involves a significant amount of judgment, there is a degree of subjectivity inherent in such pricing decisions, and fair value prices determined by the Valuation Committee could differ from those of other

43

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

market participants. Depending on the relative significance of unobservable inputs, including the valuation technique(s) used, fair valued securities may be categorized in Level 2 or 3 of the fair value hierarchy. Valuation Inputs  The following table summarizes the fund’s financial instruments, based on the inputs used to determine their fair values on June 30, 2016: ($000s)

Investments in Securities, except:

$

Common Stocks Total

$

Level 1

Level 2

Level 3

Quoted Prices

Significant Observable Inputs

Significant Unobservable Inputs

66,386 $

— $

— $

Total Value

66,386

2,533,384

4,392

—

2,537,776

2,599,770 $

4,392 $

— $

2,604,162

There were no material transfers between Levels 1 and 2 during the six months ended June 30, 2016. Note 3 - OTHER Investment Transactions

Consistent with its investment objective, the fund engages in the following practices to manage exposure to certain risks and/or to enhance performance. The investment objective, policies, program, and risk factors of the fund are described more fully in the fund’s prospectus and Statement of Additional Information. Securities Lending  The fund may lend its securities to approved brokers to earn

additional income. Its securities lending activities are administered by a lending agent in accordance with a securities lending agreement. Security loans generally do not have stated maturity dates, and the fund may recall a security at any time. The fund receives collateral in the form of cash or U.S. government securities, valued at 102% to 105% of the value of the securities on loan. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities; any additional collateral required due to changes in security values is delivered to the fund the next business day. Cash collateral is invested by the lending agent(s) in accordance with investment guidelines approved

44

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

by fund management. Additionally, the lending agent indemnifies the fund against losses resulting from borrower default. Although risk is mitigated by the collateral and indemnification, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities, collateral investments decline in value, and the lending agent fails to perform. Securities lending revenue consists of earnings on invested collateral and borrowing fees, net of any rebates to the borrower, compensation to the lending agent, and other administrative costs. In accordance with GAAP, investments made with cash collateral are reflected in the accompanying financial statements, but collateral received in the form of securities is not. At June 30, 2016, the value of loaned securities was $32,034,000; the value of cash collateral and related investments was $32,592,000. Other  Purchases and sales of portfolio securities other than short-term securities

aggregated $505,423,000 and $115,326,000, respectively, for the six months ended June 30, 2016. Note 4 - Federal Income Taxes

No provision for federal income taxes is required since the fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of the date of this report. The fund intends to retain realized gains to the extent of available capital loss carryforwards. Net realized capital losses may be carried forward indefinitely to offset future realized capital gains. As of December 31, 2015, the fund had $2,591,000 of available capital loss carryforwards. At June 30, 2016, the cost of investments for federal income tax purposes was $2,329,902,000. Net unrealized gain aggregated $274,260,000 at period-end, of which $404,204,000 related to appreciated investments and $129,944,000 related to depreciated investments.

45

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

Note 5 - related Party Transactions

The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. (Price Group). The investment management agreement between the fund and Price Associates provides for an annual investment management fee, which is computed daily and paid monthly. The fee consists of an individual fund fee, equal to 0.35% of the fund’s average daily net assets, and a group fee. The group fee rate is calculated based on the combined net assets of certain mutual funds sponsored by Price Associates (the group) applied to a graduated fee schedule, with rates ranging from 0.48% for the first $1 billion of assets to 0.270% for assets in excess of $500 billion. The fund’s group fee is determined by applying the group fee rate to the fund’s average daily net assets. At June 30, 2016, the effective annual group fee rate was 0.29%. The I Class is subject to an operating expense limitation (I Class limit) pursuant to which Price Associates is contractually required to pay all operating expenses of the I Class, excluding management fees, interest, borrowing-related expenses, taxes, brokerage commissions, and extraordinary expenses, to the extent such operating expenses, on an annualized basis, exceed 0.05% of average net assets. This agreement will continue until April 30, 2018, and may be renewed, revised or revoked only with approval of the fund’s Board. The I Class is required to repay Price Associates for expenses previously paid to the extent the class’s net assets grow or expenses decline sufficiently to allow repayment without causing the class’s operating expenses to exceed the I Class limit. However, no repayment will be made more than three years after the date of a payment or waiver. For the six months ended June 30, 2016, the I Class operated below its expense limitation. In addition, the fund has entered into service agreements with Price Associates and two wholly owned subsidiaries of Price Associates (collectively, Price). Price Associates provides certain accounting and administrative services to the fund. T. Rowe Price Services, Inc., provides shareholder and administrative services in its capacity as the fund’s transfer and dividend-disbursing agent. T. Rowe Price Retirement Plan Services, Inc., provides subaccounting and recordkeeping services for certain retirement accounts invested in the Investor Class and I Class. For the six months ended June 30, 2016, expenses incurred pursuant to these service agreements were $23,000 for Price Associates; $436,000 for T. Rowe Price Services, Inc.; and $36,000 for T. Rowe Price Retirement Plan Services, Inc. The total amount payable at period-end pursuant to these service agreements is reflected as Due to Affiliates in the accompanying financial statements, if any. 46

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

The fund may invest in the T. Rowe Price Reserve Investment Fund, the T. Rowe Price Government Reserve Investment Fund, or the T. Rowe Price Short-Term Reserve Fund (collectively, the Price Reserve Investment Funds), open-end management investment companies managed by Price Associates and considered affiliates of the fund. The Price Reserve Investment Funds are offered as short-term investment options to mutual funds, trusts, and other accounts managed by Price Associates or its affiliates and are not available for direct purchase by members of the public. The Price Reserve Investment Funds pay no investment management fees. As of June 30, 2016, T. Rowe Price Group, Inc., or its wholly owned subsidiaries owned 10,267 shares of the I Class, representing less than 1% of the I Class’s net assets. The fund may participate in securities purchase and sale transactions with other funds or accounts advised by Price Associates (cross trades), in accordance with procedures adopted by the fund’s Board and Securities and Exchange Commission rules, which require, among other things, that such purchase and sale cross trades be effected at the independent current market price of the security. During the six months ended June 30, 2016, the aggregate value of purchases and sales cross trades with other funds or accounts advised by Price Associates was less than 1% of the fund’s net assets as of June 30, 2016.

47

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

I nformation on P roxy V oting P olicies, P rocedures, and R ecords A description of the policies and procedures used by T. Rowe Price funds and portfolios to determine how to vote proxies relating to portfolio securities is available in each fund’s Statement of Additional Information. You may request this document by calling 1-800-225-5132 or by accessing the SEC’s website, sec.gov. The description of our proxy voting policies and procedures is also available on our corporate website. To access it, please visit the following Web page https://www3.troweprice.com/usis/corporate/en/utility/policies.html and scroll down to the section near the bottom of the page that says, “Proxy Voting Policies.” Click on the Proxy Voting Policies link in the shaded box. Each fund’s most recent annual proxy voting record is available on our website and through the SEC’s website. To access it through T. Rowe Price, visit the website location shown above, and scroll down to the section near the bottom of the page that says, “Proxy Voting Records.” Click on the Proxy Voting Records link in the shaded box.

H ow to O btain Q uarterly P ortfolio H oldings The fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available electronically on the SEC’s website (sec.gov); hard copies may be reviewed and copied at the SEC’s Public Reference Room, 100 F St. N.E., Washington, DC 20549. For more information on the Public Reference Room, call 1-800-SEC-0330.

48

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

A pproval of I nvestment M anagement A greement On March 11, 2016, the fund’s Board of Directors (Board), including a majority of the fund’s independent directors, approved the continuation of the investment management agreement (Advisory Contract) between the fund and its investment advisor, T. Rowe Price Associates, Inc. (Advisor). In connection with its deliberations, the Board requested, and the Advisor provided, such information as the Board (with advice from independent legal counsel) deemed reasonably necessary. The Board considered a variety of factors in connection with its review of the Advisory Contract, also taking into account information provided by the Advisor during the course of the year, as discussed below: Services Provided by the Advisor The Board considered the nature, quality, and extent of the services provided to the fund by the Advisor. These services included, but were not limited to, directing the fund’s investments in accordance with its investment program and the overall management of the fund’s portfolio, as well as a variety of related activities such as financial, investment operations, and administrative services; compliance; maintaining the fund’s records and registrations; and shareholder communications. The Board also reviewed the background and experience of the Advisor’s senior management team and investment personnel involved in the management of the fund, as well as the Advisor’s compliance record. The Board concluded that it was satisfied with the nature, quality, and extent of the services provided by the Advisor. Investment Performance of the Fund The Board reviewed the fund’s three-month, one-year, and year-by-year returns, as well as the fund’s average annualized total returns over the 3-, 5-, and 10-year periods, and compared these returns with a wide variety of comparable performance measures and market data, including those supplied by Lipper and Morningstar, which are independent providers of mutual fund data. On the basis of this evaluation and the Board’s ongoing review of investment results, and factoring in the relative market conditions during certain of the performance periods, the Board concluded that the fund’s performance was satisfactory. Costs, Benefits, Profits, and Economies of Scale The Board reviewed detailed information regarding the revenues received by the Advisor under the Advisory Contract and other benefits that the Advisor (and its affiliates) may have realized from its relationship with the fund, including any research received under “soft dollar” agreements and commission-sharing arrangements with broker-dealers. The Board considered that the Advisor may receive some benefit from soft-dollar arrangements pursuant to which research is received from broker-dealers that execute the applicable fund’s portfolio transactions. The Board received information on the estimated costs incurred and profits realized by the Advisor from managing T. Rowe Price mutual funds. The Board also reviewed estimates of the profits realized from managing the fund in particular, and the Board concluded that the Advisor’s profits were reasonable in light of the services provided to the fund.

49

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

A pproval of I nvestment M anagement A greement ( continued ) The Board also considered whether the fund benefits under the fee levels set forth in the Advisory Contract from any economies of scale realized by the Advisor. Under the Advisory Contract, the fund pays a fee to the Advisor for investment management services composed of two components—a group fee rate based on the combined average net assets of most of the T. Rowe Price mutual funds (including the fund) that declines at certain asset levels and an individual fund fee rate based on the fund’s average daily net assets—and the fund pays its own expenses of operations. The Board concluded that the advisory fee structure for the fund continued to provide for a reasonable sharing of benefits from any economies of scale with the fund’s investors. Fees The Board was provided with information regarding industry trends in management fees and expenses, and the Board reviewed the fund’s management fee rate, operating expenses, and total expense ratio in comparison with fees and expenses of other comparable funds based on information and data supplied by Lipper. The information provided to the Board indicated that the fund’s management fee rate was at or below the median for comparable funds. The information also indicated that the fund’s total expense ratio was above the median for certain groups of comparable funds and at or below the median for other groups of comparable funds. The Board also reviewed the fee schedules for institutional accounts (including subadvised mutual funds) and private accounts with similar mandates that are advised or subadvised by the Advisor and its affiliates. Management provided the Board with information about the Advisor’s responsibilities and services provided to subadvisory and other institutional account clients, including information about how the requirements and economics of the institutional business differ from those of the Advisor’s proprietary mutual fund business. The Board considered information showing that the Advisor’s proprietary mutual fund business is generally more complex from a business and compliance perspective than its institutional account business and considered various other relevant factors, including the broader scope of operations and oversight, more extensive shareholder communication infrastructure, greater asset flows, heightened business risks, and differences in applicable laws and regulations associated with the Advisor’s proprietary mutual fund business. In assessing the reasonableness of the fund’s management fee rate, the Board considered the differences in the nature of the services required for the Advisor to manage its proprietary mutual fund business versus managing a discrete pool of assets as a subadvisor to another institution’s mutual fund or for another institutional account, and the degree to which the Advisor performs significant additional services and assumes greater risk in managing the fund and other T. Rowe Price mutual funds than it does for institutional account clients. On the basis of the information provided and the factors considered, the Board concluded that the fees paid by the fund under the Advisory Contract are reasonable.

50

T. Rowe Price Qm U.S. Small-Cap Growth Equity Fund

A pproval of I nvestment M anagement A greement ( continued ) Approval of the Advisory Contract As noted, the Board approved the continuation of the Advisory Contract. No single factor was considered in isolation or to be determinative to the decision. Rather, the Board concluded, in light of a weighting and balancing of all factors considered, that it was in the best interests of the fund and its shareholders for the Board to approve the continuation of the Advisory Contract (including the fees to be charged for services thereunder). The independent directors were advised throughout the process by independent legal counsel.

51

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T. Rowe Price Mutual Funds This page contains supplementary information that is not part of the shareholder report.

STOCK FUNDS

BOND FUNDS

MONEY MARKET FUNDS (cont.)

Domestic

Domestic Taxable

Tax-Free

Corporate Income Credit Opportunities Floating Rate GNMA High Yield‡ Inflation Protected Bond Limited Duration Inflation Focused Bond New Income Short-Term Bond Ultra Short-Term Bond U.S. Bond Enhanced Index U.S. Treasury Intermediate U.S. Treasury Long-Term

California Tax-Free Money1 Maryland Tax-Free Money1 New York Tax-Free Money1 Summit Municipal Money Market1 Tax-Exempt Money1

Blue Chip Growth Capital Appreciation‡ Capital Opportunity Diversified Mid-Cap Growth Dividend Growth Equity Income Equity Index 500 Extended Equity Market Index Financial Services Growth & Income Growth Stock Health Sciences‡ Media & Telecommunications Mid-Cap Growth‡ Mid-Cap Value‡ New America Growth New Era New Horizons‡ QM U.S. Small & Mid-Cap Core Equity QM U.S. Small-Cap Growth Equity QM U.S. Value Equity Real Estate Science & Technology Small-Cap Stock‡ Small-Cap Value Tax-Efficient Equity Total Equity Market Index U.S. Large-Cap Core Value

ASSET ALLOCATION FUNDS Balanced Global Allocation Personal Strategy Balanced Personal Strategy Growth Personal Strategy Income Real Assets Spectrum Growth Spectrum Income Spectrum International Target Date Fundsˆ

Domestic Tax-Free California Tax-Free Bond Georgia Tax-Free Bond Intermediate Tax-Free High Yield Maryland Short-Term Tax-Free Bond Maryland Tax-Free Bond New Jersey Tax-Free Bond New York Tax-Free Bond Summit Municipal Income Summit Municipal Intermediate Tax-Free High Yield Tax-Free Income Tax-Free Short-Intermediate Virginia Tax-Free Bond

MONEY MARKET FUNDS Taxable Cash Reserves1 Government Money2 U.S. Treasury Money2

INTERNATIONAL/GLOBAL FUNDS Stock Africa & Middle East Asia Opportunities Emerging Europe Emerging Markets Stock Emerging Markets Value Stock European Stock Global Consumer Global Growth Stock Global Industrials Global Real Estate Global Stock Global Technology International Concentrated Equity International Discovery International Equity Index International Growth & Income International Stock Japan Latin America New Asia Overseas Stock QM Global Equity

Bond Emerging Markets Bond Emerging Markets Corporate Bond Emerging Markets Local Currency Bond Global High Income Bond Global Multi-Sector Bond Global Unconstrained Bond International Bond

Call 1-800-225-5132 to request a prospectus or summary prospectus; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. ‡Closed  to new investors except for a direct rollover from a retirement plan into a T. Rowe Price IRA invested in this fund. ˆThe Target Date Funds are inclusive of the Retirement Funds, the Target Funds, and the Retirement Balanced Fund.

Retail Funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. Beginning October 14, 2016, the Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. 2 Government Funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. 1

T. Rowe Price Investment Services, Inc. 100 East Pratt Street Baltimore, MD 21202 2016-US-24727

F120-051 8/16