(PUB) Investing 2015

Morningstar FundInvestor

July

2015

Morningstar Analyst Rating

06-17-15

„

Morningstar Pillars

Process

Performance

People

Parent

Price

Positive

Morningstar Analyst Rating

Morningstar evaluates mutual funds based on five key pillars, which

its analysts believe lead to funds that are more likely to outperform

over the long term on a risk-adjusted basis.

Analyst Rating Spectrum

Œ „ ´ˇ ¨

Pillar Spectrum

Positive

Negative

Neutral

NAV

71.63

67.27

64.60

45.63

38.65

38.13

32.77

23.01

40.23

35.73

32.68

30.92

Total Return %

6.48

9.28

41.57

18.41

1.50

16.42

42.57

-42.62

13.02

9.73

5.95

9.25

+/-S&P 500

5.25

-4.41

9.18

2.41

-0.61

1.36

16.11

-5.62

7.53

-6.06

1.04

-1.63

+/-Russ 1000Gr

2.52

-3.77

8.09

3.15

-1.14

-0.29

5.36

-4.18

1.21

0.66

0.69

2.95

Income Return %

0.00

0.35

0.13

0.06

0.15

0.17

0.42

0.40

0.26

0.56

Capital Return %

6.48

9.28

41.57

18.06

1.37

16.36

42.42

-42.79

12.60

9.33

5.69

8.69

Total Rtn % Rank Cat

Income $

0.00

0.14

0.05

0.02

0.04

0.07

0.15

0.13

0.08

0.16

Capital Gains $

0.00

3.26

0.00

Expense Ratio %

0.72

0.74

0.76

0.77

0.81

0.80

0.77

0.81

0.85

0.88

Income Ratio %

-0.02

0.03

0.32

0.12

0.08

0.15

0.22

0.42

0.36

0.28

0.56

Turnover Rate %

Net Assets $mil

25,806

23,276

20,230

13,692

10,597

10,970

9,461

6,727

11,296

8,811

7,998

7,236

Performance

06-30-15

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

2011

2012

2013

2014

2015

5.74 0.72 -13.52 10.20

1.50

18.76 -5.45

6.34 -0.83 18.41

8.15 3.69 11.94 12.78 41.57

-1.10 4.16

1.73 4.27

9.28

5.96

. . . .

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 1000Gr

Cat

$10,000

3 Mo

6 Mo

1 Yr

3 Yr Avg

5 Yr Avg

10 Yr Avg

15 Yr Avg

0.49 0.21

0.37

52 10,049

6.48 5.25

2.52

16 10,648

12.95 5.53

2.39

17 11,295

20.21 2.90

2.22

10 17,371

20.30 2.96

1.71

4 25,196

9.68 1.79

0.58

16 25,193

4.99 0.63

2.80

22 20,760

Tax Analysis

Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

3 Yr (estimated)

5 Yr (estimated)

10 Yr (estimated)

19.72

0.41

19.99

0.26

9.49

0.18

Potential Capital Gain Exposure: 43% of assets

Rating and Risk

Time Load-Adj

Morningstar

Period Return % Rtn vs Cat

Risk vs Cat

Risk-Adj Rating

1 Yr

12.95

3 Yr

20.21

High

+Avg

5 Yr

20.30

High

+Avg

10 Yr

9.68

+Avg

Avg

Incept

10.44

Other Measures

Standard Index

Best Fit Index

S&P 500 Mstar Large Growth

Alpha

2.8

0.9

Beta

0.99

1.03

R-Squared

Standard Deviation

10.22

Mean

20.21

Sharpe Ratio

1.86

Morningstar’s Take

by Katie Rushkewicz Reichart, CFA 06-17-15

T. Rowe Price Blue Chip Growth has excelled during

manager Larry Puglia’s 22-year tenure, supporting its

Morningstar Analyst Rating of Silver.

Beyond benefiting from an experienced manager,

the fund draws on T. Rowe’s analyst team for stock

ideas, which has proved quite capable at finding

successful large-growth names. The fund has

consistently produced strong returns relative to

Morningstar Category peers and the Russell 1000

Growth Index, even in recent years when it’s been

difficult for many active-equity managers to beat

passive index funds.

Puglia looks for companies with sustainable

earnings, free cash flow growth, and management

teams that will drive further growth. While the fund’s

active share (its differentiation from the benchmark)

isn’t exceptionally high, the fund makes enough bets to

meaningfully distinguish itself from a performance

standpoint. In recent years, that’s included a significant

stake in health-care stocks, which has boosted results.

The fund held 11% of assets in biotech as of March,

nearly twice the benchmark and near its all-time high.

Chinese Internet names such as Baidu, Tencent,

and Alibaba have also been a favorite area for the

fund, providing some non-U.S. exposure. Meanwhile,

it has limited exposure to benchmark stalwart Apple

AAPL, a move that at times has weighed on

performance.

The fund occasionally stumbles in market

pullbacks, and it’s lost a bit more than the Russell

1000 Growth Index in down markets during the past

decade. Certain positioning, such as its above-average

biotech stake, could weigh on results if there’s an

industrywide sell-off. Longer term, there’s also the

question of capacity across T. Rowe’s large-growth

funds (this strategy alone is $50 billion in assets).

However, on the whole the fund has done a good

job of producing strong risk-adjusted results for

investors during Puglia’s tenure. Reasonable costs

also help the case for this Silver-rated fund.

Address:

T. Rowe Price Blue Chip Growth Fund, Inc

Baltimore, MD 21202

800-638-5660

Web Address:

www.troweprice.com

Inception:

06-30-93

Advisor:

T. Rowe Price Associates, Inc.

Subadvisor:

None

NTF Plans:

N/A

Minimum Purchase:

$2500

Add: $100 IRA: $1000

Min Auto Inv Plan:

$2500

Add: $100

Sales Fees:

No-load

Management Fee:

0.30% mx./0.26% mn., 0.15%A

Actual Fees:

Mgt:0.57% Dist:

Expense Projections:

3Yr:$230

5Yr:$401 10Yr:$894

Income Distribution:

Annually

Data through June 30, 2015

T. Rowe Price Blue Chip Growth

Ticker

Status Yield Total Assets

Mstar Category

TRBCX Open

0.0% $28,902 mil

Large Growth

100% 99% 99% 99% 99% 100% 99% 99% 99%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 06-15

Historical Profile

Return

Risk

Rating

High

Above Avg

Highest

Investment Style

Equity

Stock %

Manager Change

Partial Manager Change

Growth of $10,000

Investment Values of

Fund

Investment Values of

S&P 500

Performance Quartile

(within Category)

History

10.0

7.0

14.0

18.0

22.8

Portfolio Analysis

03-31-15

Share change since 12-14 Total Stocks:133 Sector

PE Tot Ret% % Assets

Amazon.com Inc

Cnsmr Cyc

39.87 4.35

Biogen Inc

Hlth care 29.1 19.00 3.01

McKesson Corp

Hlth care 29.9 8.53 2.90

Priceline Group Inc

Cnsmr Cyc 25.1 0.98 2.89

Facebook Inc Class A

Technology 83.3 9.93 2.67

Google Inc Class C Capit

Technology 25.8 -0.85 2.59

Visa Inc Class A

Finan Svs 30.0 2.81 2.53

Danaher Corp

Industrl

23.7 0.18 2.49

MasterCard Inc Class A

Finan Svs 28.8 8.87 2.39

Actavis PLC

Hlth care

17.89 2.28

Apple Inc

Technology 15.6 14.53 2.18

Gilead Sciences Inc

Hlth care 13.4 24.67 2.15

Google Inc Class A

Technology 26.8 1.77 2.12

Celgene Corp

Hlth care 39.5 3.46 2.07

Baidu Inc ADR

Technology 33.2 -12.67 2.05

Alexion Pharmaceuticals

Hlth care 61.7 -2.30 1.98

Sherwin-Williams Co

Basic Mat 30.1 5.06 1.92

Boeing Co

Industrl

17.3 8.12 1.65

American Airlines Group

Industrl

8.7 -25.16 1.63

American Tower Corp

Real Est

48.1 -4.75 1.61

Current Investment Style

Market Cap %

Giant

46.5

Large

44.8

Mid

8.6

Small

0.0

Micro

0.0

Avg $mil:

56,163

Value Blnd Growth

Large Mid Small

Value Measures

Rel Category

Price/Earnings

Price/Book

Price/Sales

Price/Cash Flow

Dividend Yield %

22.91

4.54

1.92

8.44

0.76

1.28

1.58

1.06

0.84

0.58

Growth Measures

% Rel Category

Long-Term Erngs

Book Value

Sales

Cash Flow

Historical Erngs

15.80

10.89

11.16

11.81

21.69

1.18

1.06

1.39

0.91

0.98

Profitability

% Rel Category

Return on Equity

Return on Assets

Net Margin

21.73

9.85

14.98

1.04

1.01

1.06

Sector

Weightings

% of

Stocks

Rel

S&P 500 High

3 Year

Low

Cyclical 38.72

BasicMat 3.63

5 4

CnsmrCyc23.52

28 20

FinanSvs 9.95

14 10

Real Est 1.62

2 2

Sensitive 33.99

CommSrvs 1.11

2 0

Energy 1.71

5 2

Industrl 13.67

16 14

Technlgy 17.50

22 15

Defensive27.29

CnsmrDef 1.84

4 2

Hlthcare 25.45

25 13

Utilities 0.00

. . .

Composition - Net

(% of Stock)

Cash

0.8

Stocks 99.2

Bonds 0.0

Other

0.0

Foreign 9.9

timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at

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