GROWTH EQUIPPED FOR UNDER ARMOUR + T. R OWE PRICE
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TRP Under Armour + T. Rowe Price Equipped For Growth
under armour + t. rowe price
AUGUST 1, 2011
Shared Commitment
Putting Our Clients First
Driving Participant Outcomes
Maintaining a Disciplined Process
Delivering the Participant Experience
Acting as a Force for Change
Focusing on Investment Management Excellence
105199 04/11
Shared Commitment
Shared Commitment
As their coach, I have to keep up
with my daughter’s basketball
team of 10 year olds—we all
wear Under Armour!
Kevin Collins
Head of Client Services
under armour + t. rowe price
“Our joint responsibility—as
providers, sponsors, and
intermediaries—is to help your
employees have the income
necessary to fund up to
30 years in retirement.”
cynthia egan
president, t. rowe price retirement plan services
1
2
SHARED COMMITMENT
We share your commitment to
improving retirement outcomes
for your employees and look
forward to working together to
help you achieve your goals.
T. Rowe Price and The Centurion Group will relentlessly
pursue the long-term plan priorities for Under Armour:
• Build a strong partnership with a premier provider
who demonstrates the experience, scale, and thought
leadership to support Under Armour’s growth.
• Work with a tenured, knowledgeable service team
who puts clients and participants first—always.
• Reduce Under Armour’s administrative burden by
serving as an extension of your benefits team so that
you can focus on your strategic business goals.
• Engage teammates through targeted, personalized,
and innovative participant communications at Tide Point,
Curtis Bay, and 70+ factory houses and specialty stores.
• Seize the great opportunity to equip Under Armour’s
young demographic with retirement saving life skills
that will help them to achieve the best possible retirement.
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“Financial and institutional
stability are critical for
our firm, allowing us
to remain focused on
investing and serving our
clients through all types of
market environments.”
JIM KENNEDY
CEO AND PRESIDENT, T. ROWE PRICE GROUP
3
4
SHARED COMMITMENT
T. Rowe Price is a stable
organization committed to the
retirement industry—allowing
us to continually reinvest in company overview 1
our business and innovate for
• Over 70 years of investment management experience
the future.
• Over 5,200 employees worldwide
• $520.9 billion in assets under management
• Third largest mutual fund company 2
• 60% of assets are retirement related
• Well-established brand
retirement plan services 1
• Nearly 30 years in the retirement services business
• 1,114 full-service plans
• Over 1.9 million plan participants
• Provide total retirement outsourcing
• A proven and sustainable business model that
combines investment management expertise
and exceptional recordkeeping services
1
As of June 30, 2011.
2
Strategic Insights ranks various companies by categories. T. Rowe Price is third in assets
under management for direct channel no-load U.S. mutual funds, December 31, 2010.
under armour + t. rowe price
“To me, T. Rowe is a partner in
every way. The key factor for my
satisfaction is that we do have a true
partnership and that we share a
common goal in doing the best thing
for our employees and making sure
that they have the tools and resources
they need to prepare for retirement.”
GLOBAL HOSPITALITY COMPANY
T. ROWE PRICE CLIENT
2010
5
6
SHARED COMMITMENT
Our unique approach, client-first
service culture, and thought
leadership in the industry have
helped us stand apart from
the crowd. the t. rowe price difference
• We work diligently to maintain a culture focused on
service excellence and proactively placing our clients’
needs above all else.
• We are a stable organization with a seasoned
management team. Our disciplined focus on
investment management and retirement services
instills confidence in our clients.
• We have a differentiated business model that
combines investment management expertise,
operational discipline, and a fundamental
understanding of participant behavior. This model is
sustainable and provides us powerful advantages in
delivering value to our clients and their participants.
• We continue to build on our legacy of thought
leadership and innovation. We are passionate about
developing innovative solutions to help our clients and
their employees create successful retirement outcomes.under armour + t. rowe price
Superior Client Satisfaction
T. Rowe Price consistently ranks
in the top quartile of firms in the
retirement planning industry in
terms of overall client satisfaction.
BOSTON RESEARCH GROUP 2010 DEFINED CONTRIBUTION SURVEY
78
SHARED COMMITMENT
The true measure of retirement
plan success is helping
participants generate enough
income for retirement while
at the same time helping
sponsors mitigate risk.
our commitment to you and your employees
• Putting our clients first
• Driving change in participant behavior
• Maintaining a disciplined process
• Delivering engaging communications
• Acting as a force for change
• Focusing on investment management excellencePutting Our Clients First
Putting Clients First
When I’m defending the goal for
my Renegades Lacrosse team, I
rely on Under Armour to keep me
cool and ready for anything.
Do Kim
Senior Relationship Managerunder armour + t. rowe price
Our Client Service Ranks
Among the Best in Any Industry
1. Amazon.com 6. Publix Super Markets
2. USAA 7. Zappos.com
3. Jaguar 8. Hewlett-Packard
4. Lexus 9. T. Rowe Price
5. The Ritz-Carlton 10. Ace Hardware
Based on data collected from jd power and associates. business week, “When Service
Means Survival,” Customer Service Champs, february 2009.
9Our service model and resource structure are designed to meet your
evolving needs. 10
CLI ENTS FI RST
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Op
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Rela
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sponsor
and
participants
YOU R TR P COR E TEAM
TR P FI RM-WI DE R ESOU RC ES
YO U R STRATE GIC PARTN E R
YOU R R ES O U RC ESunder armour + t. rowe price
“‘Clients first’ is more than a
slogan. It’s a principle that’s
integrated into everything we do.”
KEVIN COLLINS
HEAD OF CLIENT SERVICES, T. ROWE PRICE RETIREMENT PLAN SERVICES
11From day-to-day management to helping you meet long-term strategic and fiduciary
goals, your T. Rowe Price team shares accountability for the success of your plan. 12
CLI ENTS FI RST
I N DUSTRY T. ROWE PRICE
TEAM MEMBER PRIMARY RESPONSI BI LITY EXPERI ENCE TEN U RE
Relationship Manager Responsible for ensuring that your total
Do Kim retirement outsourcing needs are met 18 years 18 years
Communications Consultant Responsible for ensuring that your
Christy Lausch communications program meets your objectives 10 years 2 years
Conversion Manager Responsible for ensuring that your conversions
Susan Fritz are smooth, error free, and on time 24 years 15 years
Operations Manager
Dan Vaira 7 years 6 years
Responsible for ensuring your satisfaction
with the day-to-day operations of your plans
Plan Coordinator
Stacey Spilman 2 years 2 years
Compliance Services Responsible for delivering proactive compliance
Tom Shelton services to your plans 15 years 15 years
As of June 30, 2011.under armour + t. rowe price
“When our clients succeed,
we succeed. Every day, we
collaborate to develop services
that enhance plan sponsors’
ability to be effective and to
help employees reach
their retirement goals.”
FRANCISCO NEGRÓN
NATIONAL DIRECTOR, RELATIONSHIP MANAGEMENT, T. ROWE PRICE RETIREMENT PLAN SERVICES
13Access to innovative resources and tools can help you manage risk and bolster the
long-term health of your plan. 14
CLI ENTS FI RST
FOR EXAMPLE:
Beginning of Each Year End of Each Year
Deliver Plan & Investment Review Host Client Conferences Run PlanMeterSM Create Annual Strategic Plan
Diagnostic Report
Scheduled review of plan Annual Client Conference and Plan-wide analysis and Collaborative, customized
performance vs. variety Biannual Investment Symposium projection of replacement plan presenting best
of benchmarks provide industry expertise in income in retirement practice approaches
multiple disciplines
Helps you target
specific opportunities Helps you target Helps you plan and execute
for improvement Helps you stay abreast of specific opportunities key initiatives for your plan
latest trends and network for improvement
with your peers
Ongoing Sponsor Communication
24/7 MONTH LY QUARTERLY AN N UALLY
• Plan Sponsor Resource Center • Webinars • planLink Magazine • T. Rowe Price Benchmark Report
• FiduciarySource • Sponsor E-Updates
Compliance, Legislation, Markets &
Investments,Products & Services,Industry
Trends, Best Practice Approachesunder armour + t. rowe price
20 35 20 35 20 35 20 35
24% 26% 42% 52%
5
5
5
5
50
50
50
50
Median Current Median Projected Median Projected Retirement Income: Median Projected Retirement Income:
Retirement Income Retirement Income: (AAS) (AAS)
Age-Appropriate Asset Allocation Strategy (AAS) + +
Target Contribution Rate Target Contribution Rate
+ +
Catch-Up Contributions Catch-Up Contributions
+
Delayed Retirement
“PlanMeterSM is an industry-leading
diagnostic tool that provides the data
you need to accurately measure the
health of your plan—and pinpoint
opportunities for improvement.”
JILL WHARTON
TEAM LEADER, RELATIONSHIP MANAGEMENT, T. ROWE PRICE RETIREMENT PLAN SERVICES
MATERIAL ASSUMPTIONS:
Excluding results for defined benefit plans and Social Security, the investment results shown in the various charts were developed with Monte Carlo modeling using the following material assumptions as well as those
outlined the report. The underlying long-term expected annual return assumptions for the asset classes indicated in the charts are not historical returns. Rather, these are based on our best estimates for future long-term
periods. Our annual return assumptions take into consideration the impact of reinvested dividends and capital gains. We use these expected returns, along with assumptions regarding the volatility for each asset class, as
well as the intra-asset class correlations, to generate a set of simulated, random monthly returns for each asset class over the specified period of time. These monthly returns are then used to generate a thousand simulated
market scenarios. These scenarios represent a spectrum of possible performance for the asset classes being modeled.
The success rates are calculated based on these scenarios. We take taxes and required minimum distributions (RMD) into consideration, as described in the report, but we assume no early withdrawal penalties. Investment
expenses in the form of an expense ratio are subtracted from the expected annual return of each asset class. These expenses are intended to represent the average expenses for a typical actively managed no-load fund
within the peer group for each asset class modeled. The analysis does include all of a participant’s assets in the defined contribution plan(s), but categorizes them simply as individual stocks, diversified stock funds, bonds,
and short-term investments. Other asset classes not considered or modeled may have characteristics similar or superior to those being analyzed.
IMPORTANT: The Plan Meter projections or other information generated by a T. Rowe Price Investment Analysis Tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect
15 continued on page 16Plan Meter’s innovative approach 16
CLI ENTS FI RST
can help sponsors design plans
and education strategies that
can directly impact participants’
retirement income.
plan meter can help you design a better plan
actual investment results, and are not guarantees of future results. The simulations are based
on a number of assumptions. There can be no assurance that the projected or simulated results
will be achieved or sustained. The charts present only a range of possible outcomes. Results may • Quantifies the impact of proposed solutions to better
vary with each use and over time, and such results may be better or worse than the simulated
scenarios. Clients should be aware that the potential for loss (or gain) may be greater than inform decision-making
demonstrated in the simulations.
The replacement income (in current dollars) is the percentage of the employee’s current annual
salary withdrawn in the first year of retirement; in each subsequent year, the amounts • Identifies targeted population segments that may
withdrawn are adjusted to reflect a particular annual rate of inflation. The underlying long-term
expected annual return assumptions (gross of fees) used in each of the Monte Carlo simulations benefit from additional tools and communications
are 10% for large-cap individual stocks, 11% for mid-/small-cap individual stocks, 10% for stock
funds, 6.5% for intermediate-term, investment-grade bonds, and 4.75% for money
market/stable value investments. The following expense ratios are then applied to arrive at • Provides a baseline for ongoing discussion of
net-of-fee expected returns: 0% for individual stocks, 1.211% for stock funds, 0.726% for
intermediate term, investment-grade bonds, and 0.648% for money market/stable value plan objectives
investments. The simulation success rate of each employee’s retirement planning strategy is
identified for your plans in the Rules and Assumptions section on page 5 in the report.
Simulation success is defined as having at least $1 remaining in the portfolio at the end of
retirement. (The retirement period in the simulations is assumed to end at age 95.) The
simulation success rate of a particular retirement strategy is determined by counting the
number of simulation scenarios that result in at least $1 remaining, and dividing this figure by
the total number of simulation scenarios of that strategy used.
LIMITATIONS OF THE MODEL
Material limitations of the investment model include:
• Extreme market movements may occur more frequently than represented in our model.
• Some asset classes have relatively limited histories. While future results for all asset classes in
the model may materially differ from those assumed in our calculations, the future results for
asset classes with limited histories may diverge to a greater extent than the future results of
asset classes with longer track records.
• Market crises can cause asset classes to perform similarly over time; reducing the accuracy of
the projected portfolio volatility and returns. The model is based on the long-term behavior of
the asset classes and therefore is less reliable for short-term periods.
• The model assumes there is no correlation between asset class returns from month to month.
This means that the model does not reflect the average periods of “bull”and “bear”markets,
which can be longer than those modeled.
• Inflation is assumed to be constant; variations in inflation levels are not reflected in
our calculations.
These results are not predictions, but they should be viewed as reasonable estimates.
Source: T. Rowe Price Associates, Inc.under armour + t. rowe price
Top-Rated Resource Center Is Your Source for Effective Plan Management 1
Easy access to
real-time plan
information Online Forum
Plan data
Planning
Help with calendars
fiduciary
responsibilities
Upcoming
webinars
and events
TO LOG IN TO THE PLAN SPONSOR WEBSITE DEMO, GO TO RPS.TROWEPRICE.COM/SPONSOR
THEN TYPE IN THE USER NAME TRPGUEST AND PASSWORD TRP6215 (PASSWORD EXPIRES 09/01/11).
17 1
T. Rowe Price ranked #1 by kasina in its survey of 2010 DC top five sponsor websites.The Plan Sponsor Resource Center
boasts a 98% satisfaction rating1
among our plan sponsors and 18
CLI ENTS FI RST
features a wide range of robust
tools, plan specific information,
and the latest news about the
market and the industry.
site users have one-stop access to:
• Online plan and participant-level reporting
• Customized plan data, such as daily plan assets
and monthly contributions
• Investment performance and market updates
• Compliance testing results
• Plan document information
• Fiduciary resources
1
Boston Research Group 2010 Defined Contribution Survey.Driving Team Outcomes
Team Outcomes
The perfect fit of my Under
Armour TechTM shirt allows me
to concentrate on the match—
and have fun!
Betty Flynn
Senior Communications Consultantunder armour + t. rowe price
The Problem:
Inertia Still Rules
Over 80%1 of investors would
prefer to delegate or seek input
on their investment decisions.
1
2009 Forrester Research, North American Technographics
Benchmark Study 2009 (U.S., Canada)
19Over the last decade there has been minimal progress toward improving participant
behavior—particularly as it relates to asset allocation and deferral rates.
401(k) PARTICIPATION RATES1 PRETAX SALARY DEFERRAL RATES2 20
DRIVI NG OUTCOMES
100%
10%
81.9 82.7 82.3
80.2 80.3
80 78.0 77.3 77.7 78.9
76.4
8
60
6 5.6 5.5
5.3 5.3 5.4 5.4 5.4
5.2 5.2 5.2
40
4
20
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Period
Period
1
PSCA’s 53rd Annual Survey of Profit Sharing and 401(k) Plans (2010) reflecting plan year 2009.
2
PLANSPONSOR Defined Contribution Survey, 2010.under armour + t. rowe price
Automatically
Drive Outcomes
Nearly 99% of our sponsors offer
one or more automated solutions.
AS OF JUNE 30, 2011
21Robust suite of automated solutions can help even those who have not shown an
interest in investing for their future.
22
GET THEM INCREASE DIVERSIFY HELP THEM MANAGE
DRIVI NG OUTCOMES
STARTED THEIR SAVINGS THEIR INVESTMENTS RETIREMENT INCOME
WHO • New hires • All participants • All participants • Preretirees
• Nonparticipants • Retired employees
HOW • Automatic enrollment • Automatic increase • Automatic investment • T. Rowe Price Retirement
Income ManagerSM
• AutoBoost • Automatic rebalance
• Auto-restart
BEST • Enroll at 6% • Increase deferral • Add target-date funds • Helps employees create
PRACTICE 2% annually to investment offering a sustainable and flexible
CONSIDER- • Reenroll “opt outs” income stream for 30 years
ATIONS
annually • Reach goal: 15% to 20% • Convert with target-date
default strategy
• Reenroll hardships • Implement as opt out
as eligible
• Use qualified default
investment alternative
(QDIA)under armour + t. rowe price
Automated Solutions: The Cumulative Impact Can Lead to a More Successful Retirement
$2,500,000
$2,208,045
$2,225,000
$2,000,000
$1,750,000
Line 1 Investment at 3% deferral rate,
with annual return of 3%
$1,500,000 (4% replacement income)
Assets
$1,250,000 Line 2 Investment at 3% deferral rate,
with annual return of 8%
(11% replacement income)
$1,000,000
$775,752 Line 3 Investment at 6% deferral rate,
with annual return of 8%
$750,000
(23% replacement income)
$500,000 Line 4 Investment at 6% deferral rate,
$387,876
with annual return of 8% and with
2% automatic increases up to 20%
$250,000 (65% replacement income)
0 $147,728
30 35 40 45 50 55 60 65
Age
This chart is for illustrative purposes only and does not represent the performance of any specific investment in your plan. Assumptions: Salary of $50,000 annually adjusted to anticipate a 3% inflation rate.
Assumes an inflation rate of 3% both for salary increases and to calculate the present value of the first year’s retirement income. When a participant retires, it assumes his/her initial withdrawal amount will
be 4% of the balance at that time and increases each year to offset the impact of inflation.
23Our robust suite of automated
services can help you create
momentum for success in
the strategic planning process,
plan administration, and 24
employee education.
DRIVI NG OUTCOMES
t. rowe price’s automated solutions have
achieved widespread success1
Automatic Enrollment
• In use by over half of our clients2
• 95.9% of participants stayed with default investment option
Automatic Increase
• In use by 81.7% of our clients and more than a
quarter of plans offer as an opt-out service3
Target-Date Investments
• In use by 84.8% of our clients4
• Among auto-enrolling plans, 99.7% use target-date
funds as default investment option
1
All data on this page as of June 30, 2011.
2
Based on 401(k) clients that outsource deferrals to T. Rowe Price only.
Represents 39.1% of all full-service Retirement Plan Services clients.
3
Based on 401(k) clients that outsource deferrals to T. Rowe Price only.
Represents 58.3% of all full-service Retirement Plan Services clients.
4
Excludes nonqualified and cash balance.under armour + t. rowe price
Innovative Solution
“We’re thrilled with T. Rowe
Price’s target-date conversion
strategy and with the response
we’ve had from our associates.”
NATIONAL RETAIL CHAIN: 2010
FIRST T. ROWE PRICE CLIENT TO IMPLEMENT TARGET-DATE CONVERSION STRATEGY (IN 2004)
25Target-date conversion represents
an ideal opportunity to build a
retirement plan from the ground
up—and to base plan design,
investment, and other critical
decisions on recent industry research 26
and insights into behavioral finance.
DRIVI NG OUTCOMES
disciplined 3-step process for conversion:
1. Pre-Conversion
• Participants can make changes to their investment
elections prior to the change in recordkeepers
2. Conversion
• Participants who have not made a proactive choice are
defaulted into an age-appropriate target-date fund
3. Post-Conversion
• Participants can still make changes to their
investment elections
• All participants receive our award-winning
communications to help them understand their options
• Advice and guidance services provide another level
of participant support1
1
Services provided by an independent third party vendor.under armour + t. rowe price
Unparalleled Experience
Since 2005, T. Rowe Price has
implemented 315 conversions using
the target-date default strategy.1
1
INCLUDES CLIENT CONVERSIONS AND MERGER AND ACQUISITION ACTIVITIES
FROM JANUARY 1, 2005 – JUNE 30, 2011.
27A successful target-date
conversion can turn employees
into plan participants and
plan participants into better 28
retirement planners.
DRIVI NG OUTCOMES
industry leadership
• T. Rowe Price pioneered the target-date default
conversion approach in 2002
• 75% of participants are 100% invested in target-date
funds one year after conversion1
• T. Rowe Price worked with retirement industry
leaders and members of Congress to influence
2006 PPA legislation and subsequent 2007
QDIA regulations
• PPA regulations provide unequivocal legal
guidance with clear fiduciary protection
• Today T. Rowe Price remains a powerful voice in
Washington, D.C., supporting the need for innovative
ways to help employees save adequately for retirement
1
As of June 30, 2011. 12 months following conversion. Includes plan conversions that
used target-date funds as the default investment..Dan Vaira
Client Administration
Manager
Even though I’ll never be
Greivis Vásquez, the breathability
and stretch of my Under Armour
gear gives me ultimate mobility
on the court.
Tom Shelton
Compliance Services
Manager
The comfort and strength of
my Under Armour shirt gives
me the endurance to go
the distance.Maintaining a
Disciplined Process
Disciplined Process
I’d love to learn to snowboard—
I know I’m ready and my Cold
Gear ® will keep me warm and dry
as I master the techniques!
Susie Fritz
Conversion Managerunder armour + t. rowe price
Proven Expertise
T. Rowe Price’s senior
conversion managers average
22 years of industry experience.
As of December 31, 2010
29Our experienced conversion
team—including members of
the Operations, Compliance,
and Communications teams—
is committed to leading you
through the entire process.
throughout conversion we will:
30
• Lead you through a proven, disciplined process
DISCI PLI N ED PROCESS Conversion
• Share our knowledge and best practices considerations
• Explore opportunities to improve your plan
• Make recommendations to help you drive your plan
forward and provide better resultsunder armour + t. rowe price
Conversion:
Flawless Execution
100% of our conversion clients
have reported an on-time
successful experience.
AS OF DECEMBER 31, 2010
31We understand that conversion represents your first service experience
with T. Rowe Price, and we have to get it right.
AUGUST AND SEPTEMBER OCTOBER AND NOVEMBER DECEMBER JANUARY
Plan sponsor approval Provide final approval for communications strategy Provide live demographic (start-up) file
to T. Rowe Price
UNDER ARMOUR
Review and provide comments on service and trust Review conversion authorization letter
32
TEAM
agreements for posting
Notify current recordkeeper/trustee
DISCI PLI N ED PROCESS Conversion
Provide test contribution and demographic
Finalize plan design file to T. Rowe Price Prepare first contribution
Finalize investment lineup/ Review test salary deferral and loan and demographic file for
conversion strategy extract files from T. Rowe Price transmission to T. Rowe Price
Prepare and review administrative procedures Live conversion files provided by prior
recordkeeper
Conference call with prior recordkeeper Review plan and investment information on T. Rowe Price invests conversion assets
CONVERSION TEAM
Conduct fact-finding for communications front-end systems
First contribution file received and posted
T. ROWE PRICE
Initial planning session with client: plan Post live start-up to populate participant
design, services, and payroll interface Provide test salary deferral and loan extract file database on recordkeeping system
Reconcile and post conversion
Establish plan features on recordkeeping
system
Finalize and execute service and trust
agreements with client Finalize administrative
procedures with client
Reconcile test conversion file provided
Prepare service and trust from prior recordkeeper
agreements
Follow-up call with prior recordkeeper
UNDER ARMOUR
Announcement letter distributed by T. Rowe Price T. Rowe Price opens phone lines for plan T. Rowe Price allows investment changes
PARTICIPANT
and investment information and deferrals
Employee meetings
Conversion communication and SOX Full services begin
notice distributed by T. Rowe Priceunder armour + t. rowe price
“The bottom line in Operations
is flawless execution. Unlike
many, we have never considered
Operations a commodity—we
don’t believe T. Rowe Price’s
culture of outstanding service and
execution can be commoditized.”
DOMINICK CIPOLLA
DIRECTOR, OPERATIONS, T. ROWE PRICE RETIREMENT PLAN SERVICES
33Our formula is simple: Hire
smart people, train them
continuously, and arm them
with robust technologies and
a disciplined process.
our operations team can make a real
34
difference by:
DISCI PLI N ED PROCESS Operations
• Helping you to mitigate your risks as a plan fiduciary
• Leveraging leading-edge technologies and systems
to respond more ably to your needs
• Responding swiftly and accurately to
participant questions
• Operating as an extension of your benefits teamunder armour + t. rowe price
Operations:
Your Trusted Partner
94% of our plan sponsors report
being satisfied with our overall
recordkeeping services.
BOSTON RESEARCH GROUP 2010 DEFINED CONTRIBUTION SURVEY
35We have deep roots in
investment management, so
careful attention to risk is a part
of our cultural DNA. Likewise,
retirement plan operations also
focuses on mitigating your risks
as a plan fiduciary.
our disciplined approach:
36
• Starts with a focus on ERISA compliance;
DISCI PLI N ED PROCESS Operations
• Extends to a single internal database that informs
our entire organization about how your
plan operates;
• Includes systematically reviewing your plan
documents to ensure that our processes adhere to
your plan document policies and procedures; and
• Reduces human errors through knowledge-sharing
and automation.under armour + t. rowe price
We act as an extension
of your benefits team
PARTICIPANT SERVICES Distribution
Enrollment • In-service withdrawals
• Hardship withdrawals
• Eligibility determination
• Rollovers out of the plan
• Enrollment
• Participant termination
• Rollovers into the plan
processing
In Plan
• Salary deferral changes
• Fund transfers SPONSOR SERVICES
• Loans • Form 5500 preparation1
• Calculate and track vesting • Total retirement outsourcing
• QDRO processing • Nondiscrimination testing
• Contribution processing
• Beneficiary tracking
• Calculation of company match 1
Provided by Deloitte Tax LLP, a subsidiary of Deloitte LLP,
and profit sharing contribution a third-party provider. T. Rowe Price and Deloitte LLP are not
affiliated companies.
37We can help you reduce your
administrative burden and focus
your energy at a strategic level.
by relying on t. rowe price for many of your
38
operational needs, you can leverage our:
DISCI PLI N ED PROCESS Operations
People
• An integrated team with a plan coordinator who
directs a network of experienced associates
Processes
• Including best practice knowledge we’ve accumulated
during nearly 30 years in the recordkeeping business
Technology
• Designed to help our associates share plan
knowledge, tackle complex issues, and quickly
identify appropriate solutionsunder armour + t. rowe price
Compliance:
Dedicated Professionals
Managers on our compliance
team average 21 years of
industry experience.
AS OF JUNE 30, 2011
39Our compliance team’s principal
charge is to help you meet your
fiduciary responsibilities—and
mitigate risk as a plan sponsor.
in support of this goal, the team is
40
responsible for:
DISCI PLI N ED PROCESS Compliance
• Proactive document review and testing strategy
development during conversion
• T. Rowe Price partners to provide
strategic consultation
• Plan design analysis and recommendations
• Testing services
- Helps to keep your plan in compliance
- Tests completed within eight business days
- Projections of data to predict year-end testing results
- Modeling impact of plan design changes and
related effects on test results
• Sponsor educationunder armour + t. rowe price
“The private retirement system has
helped put millions of working
Americans on the path to a secure
retirement. Efficient and effective
regulation is a cornerstone of that
system. We will remain vigilant in
advocating for regulation that
serves the interests of plan
sponsors and participants.”
ED BERNARD
VICE CHAIRMAN, T. ROWE PRICE GROUP
41Because of our industry
leadership, a number of
our senior managers
facilitate direct advocacy
on behalf of sponsors and
their participants.
t. rowe price actively engages on
42
legislative and regulatory issues.
DISCI PLI N ED PROCESS Compliance
• Retirement Income
• Fee disclosure
• Qualified Default Investment Alternatives/
Target-date investmentsDelivering the
Team Experience
TEAM EXPERIENCE
I can’t imagine competing in
triathlons without my Under
Armour HeatGear ® shirt—it keeps
me cool and dry so I can focus
on the finish line.
Christy Lausch
Senior Communications Consultantunder armour + t. rowe price
The T. Rowe Price Participant Experience
43We are re-imagining the participant
experience to proactively focus on
retirement income, with the goal of
anticipating—and delivering on—
participants’needs in every life stage.
our strategy incorporates:
• Behavioral research findings
• Knowledge of plan-specific needs
• Solutions for delegators and self-directed investors 44
PARTICI PANT EXPERI ENCE
• Branded programs for every life stage, including:
- Goal setting at the start
- Proactive interactions at critical milestones
- Solutions for terminated participantsunder armour + t. rowe price
Integrated Life Stages Help Drive Strategy and Participant Outcomes
GET STARTED
Enrollment
Account Transition
TERMS
STAY ON TRACK PREPARE TRANSITION
Job Change/
Accumulation Preretirement Retirement
Mass Termination
SUSTAIN
Distribution
45Delivering the right
messages at the right time
helps maximize the impact
of our communications on your
employees at all life stages.
focused on the key needs of participants:
Get started
• Encourages employees to enroll in the plan
46
Stay on track
PARTICI PANT EXPERI ENCE
• Emphasizes the importance of saving adequately
and diversifying
Prepare
• Focuses on strategies for generating income
in retirement
Transition
• Walks participants through the distribution cycle
Sustain
• Promotes retirement income strategiesunder armour + t. rowe price
Participant Service Center: A Unique Approach
CALLERS AR E MATC H ED WITH EXPERT R EPR ESENTATIVES TRAI N ED TO ADDR ESS TH EI R U N IQU E N EEDS
TRACK 1: Getting into the Plan TRACK 2: In Plan TRACK 3: In Transition
Asset Allocation Salary Deferral Changes Distributions
Enrollment Investment Exchanges Continued Retirement Planning
Education Statement Inquiries Rollovers
47We anticipate participants’needs
throughoutthe planning life cycle.
Our communications deliver consistent,
personalized messages across multiple
delivery channels—including Web, print, each touch point offers unique benefits:
employee meetings, and webinars.
Web
• Provides immediate access to additional tools,
guidance, and third-party advice
E-mail
• Allows sponsors to efficiently communicate
with participants 48
PARTICI PANT EXPERI ENCE
Print
• Engages participants who still prefer more
print materials
Employee Meetings
• Offers a chance for participants to ask questions
and learn from the experts
Webinars
• Present an interactive remote alternative to
face-to-face meetings
Phone
• Access to representatives who specialize in the
unique needs of the participant's life stageunder armour + t. rowe price
“Effective conversion communications
help your employees understand
your commitment to helping them
prepare for a successful retirement.
We are your partner to develop a
strategic plan that delivers creative,
straightforward, and actionable
multichannel communications.”
MARY ELLEN WHITEMAN
MANAGER, PARTICIPANT COMMUNICATIONS
49We can effectively engage your participants through targeted and timely
messaging to make the transition seamless during the conversion process.
Beginning of Conversion Process
Fact Announcement Conversion Open Election/ Account Successful
Finding Communications Communications Employee Meetings Statement Conversion
50
PARTICI PANT EXPERI ENCE
• Define plan • Introduce • Highlight plan • Review conversion • Provide • Account
specifics T. Rowe Price features changes information confirmation access 24/7
and/or
• Develop • Announce changes enhancements • Provide retirement • Show full
communication planning education account details
strategy • Outline next steps • Introduce
investment lineup • Discuss
• Determine look important dates
and feel • Identify
important datesunder armour + t. rowe price
Award-Winning
Communication
Our in-house creative agency
has won more than 259 print
and interactive communications
industry awards.
PROFIT SHARING COUNCIL OF AMERICA, INTERNATIONAL ASSOCIATION OF BUSINESS COMMUNICATION,
ASSOCIATION OF MARKETING & COMMUNICATION PROFESSIONALS, MUTUAL FUND EDUCATION ALLIANCE,
INTERNATIONAL ACADEMY OF VISUAL ARTS, AND PENSIONS AND INVESTMENTS MAGAZINE.
51We work collaboratively with
our clients to develop unique
communications strategies that
will drive retirement outcomes
for your employees throughout our creative process
their careers.
Our approach is grounded in our deep understanding
of client needs and participant behavior. We:
• Work with Under Armour and The Centurion Group
to identify communications goals and strategies that
will resonate with employees
• Engage in fact finding to best understand the 52
PARTICI PANT EXPERI ENCE
Under Armour and The Centurion Group
- Company brand and culture
- Employee demographics
- Tone and voice
- Communication channel preferences
• Leverage the talents of the Creative Exchange, our
in-house creative agency, to provide concept options
for Under Armour and The Centurion Group
• Collaborate with Under Armour and The Centurion Group
to select and implement a communications strategy
and campaign aligned with your needs and preferencesunder armour + t. rowe price
A Robust Web Communications Channel
Your branding on
each page
Communication
center Eligible services and status
prominently displayed
Key account
information
Message appears if there
are e-mail delivery issues
Beneficiaries displayed
on the homepage, which
Retirement increases updates
Income Estimate
Links to our interactive
Account History chart
TO LOG IN TO THE PARTICIPANT WEBSITE DEMO, GO TO RPS.TROWEPRICE.COM THEN TYPE IN
THE USER NAME TRPGUEST AND PASSWORD TRP6215 (PASSWORD EXPIRES 09/01/11).
53Our award-winning
participant website provides
participants with direct access
to retirement planning tools
and account information.
participant website
• Dashboard design provides immediate access to
critical information
• Navigation, functionality, and content driven by 54
24/7 monitoring, footpath analysis, qualitative
PARTICI PANT EXPERI ENCE
insights, and your feedback1
• Personalized for your participants and customized
to your plan
• Focused on delivering better income and
satisfaction outcomes
1
Foresee Results, January 2011.Acting as a Force for
Change
Force for Change
My custom-fit Under Armour
shirt won’t get in the way when
I’m sparring, so I can direct all
my energy toward my opponent.
Matt McOsker
Senior Technology Product
Development Managerunder armour + t. rowe price
“We constantly engage academic,
government, and business leaders as
they develop and conduct research
and provide perspectives on critical
issues affecting workers.”
carol waddell
vice president, product management & development, t. rowe price retirement plan services
55Our product development
process is directly informed by
the lessons we’ve learned
through research, focus groups,
and nearly 30 years working
with sponsors and participants.
as leaders in the retirement plan industry,
t. rowe price:
• Focuses on important public policy issues
• Designs and executes high-quality research
• Informs and educates government representatives
• Shares research findings with our clients
• Delivers empirically tested retirement solutions 56
FORCE FOR CHANGE
• Leverages senior leadership’s expertise to deliver
“smart to market” products and servicesunder armour + t. rowe price
From Insight to Action
STRATEGY
CONSI DERATIONS IMPACT
Sponsors Deliver valued and effective benefits
Participants T. ROWE PR IC E Drive outcomes
Industry Shape and inform public policy
57Understanding the critical
points of intersection between
influencing policy, supporting
sponsors, and driving outcomes
helps us deliver the right example: automated solutions success
products at the right time.
Influencing public policy
• Discussed areas of study
• Provided best practice guidance
• Shared research to shape regulations
• Participated in forums/working groups
Supporting plan sponsors
• Identified gaps in retirement income preparedness
58
• Modeled alternative solutions/impact
FORCE FOR CHANGE
• Supported program implementation
• Developed case for approval
Driving participant outcomes
• Conducted proprietary research
• Optimized communications, design, distributionunder armour + t. rowe price
“I wish I had this on my desktop
today. T. Rowe Price Retirement
Income ManagerSM helps me
know how much money I have
so I can plan for my future.”
RESEARCH FOCUS GROUP PARTICIPANT 2010
59Our approach to product and service development is rigorous, methodical, and
continuous—with an emphasis on being “smart to market” rather than “first to market.”
R E S EARC H CONC EPTS PROTOTYPE PI LOT L AU N C H
Industry Products Communications Test Product
Customer Services User Experience Measure Campaign
Channel Marketing Configuration Adjust Analytics
60
FORCE FOR CHANGEunder armour + t. rowe price
Helping Your Participants Manage Their Retirement Savings
Streamlined, no-cost
solution for managing
retirement income and
T. Rowe Price's
investing—educates,
suggested withdrawal
enables payments, and
program is designed to
provides ongoing
provide a potential
monitoring—all in a
income stream that
single interactive
can last until age 95
application
Offers participants
complete ownership
Modeling component and control—with
enables pre- and flexibility to make
retiring participants changes at any time
to see the impact of
different savings and
withdrawal strategies
on their retirement
income projections
For illustrative purposes only.
Monte Carlo Simulation
CALCULATION DETAILS - These calculations were developed with an industry-recognized method called Monte Carlo simulation. In contrast to tools generating average outcomes, Monte Carlo analyses produce outcome
ranges based on probability—thus incorporating future uncertainty.
Material Assumptions include:
• Results of the analysis are driven primarily by the assumed long-term, compound rates of return of each asset class in the scenarios. Return assumptions take into consideration the impact of reinvested dividends and capital gains.
• The return assumption—plus assumptions about asset class volatility and correlations with other classes—are used to generate random monthly returns for each class over specified time periods.
• These monthly returns are then used to generate a wide range of investment market scenarios, representing a spectrum of possible performance for the modeled asset classes. Success rates are based on these scenarios.
• All initial withdrawal amounts—and all future contributions by active employees—are assumed to be pretax.
• No penalties are deducted for early withdrawals if taken while investor is under age 59 1/2.
• The model assumes required minimum distributions (RMD) begin in the year the participant attains age 70 1/2, even if the participant is actually still employed and exempt from taking RMDs until the year following retirement.
Required amounts that exceed the planned withdrawals are reinvested in a taxable side account.
61In 2011, our product
development team is focused these key areas include:
on those key areas that will
Retirement income
have the most practical,
• Automated distribution, investment, and
relevant, and powerful impact
income program
for you and your participants.
• Enhanced sponsor insights on retirement
Material Limitations include:
• Extreme market movements may occur more often than in the model.
• Market crises can cause asset classes to perform similarly, lowering the accuracy of simulated
income options, legislative overviews, and
portfolio volatility and returns. Correlation assumptions are less reliable for short periods.
• The model assumes no month-to-month correlations among asset class returns. It does participants’ experiences
not reflect the average periods of "bull" and "bear" markets, which can be longer than
those modeled.
• Inflation is assumed to be constant, so variations are not reflected in our calculations. • Insight to regulatory bodies on suboptimal
• The analysis does not use all asset classes. Other asset classes may be similar or superior to
those used. participant behaviors and opportunities
Assumptions Used for Investment Analysis
The analysis includes all investments in a participant's plan account, but categorizes them simply
as stocks, bonds, and short-term investments. Short-term investments include cash as well as
short-term investment grade bonds. An effectively diversified portfolio theoretically involves all Risk and Efficiency
investable asset classes, including stock, bonds, real estate, foreign investments, commodities,
precious metals, currencies, and others. Since it is unlikely that investors will have all of these
asset class choices available in their plan, we selected the asset classes we believed to be most • Online collaboration with your team
appropriate for long term investors.
For active participants, the estimated plan account balance at retirement is based on the current
balance and assumes that annual savings continue at the same annual amount (adjusted by • Focus on risk reduction through
3% annually to account for inflation) until retirement. The initial withdrawal amount is the
percentage of the initial pretax value of the investments withdrawn in the first year, in today's
dollars. In subsequent years, the amount withdrawn is increased by 3% annually for inflation.
automated solutions
Results are based on simulating 1,000 possible market scenarios and various combined 62
asset-allocation and withdrawal or contribution strategies. We show possible outcomes that,
based on our simulations, can be achieved with 80% success. "Success" is defined as the investor
• Drive to increase efficiency through smart
FORCE FOR CHANGE
having a non-zero balance remaining at the end of the withdrawal period identified by the tool.
This means that we estimate that the investor faces an 80% likelihood that there will be some technology applications
money left in their account at the end of the designated withdrawal period. Conversely, there
is an estimated 20% likelihood of running out of assets prior to the end of the designated
withdrawal period.
This means that in those 20% of cases, not all of the intended withdrawals can be made. There Technology
can be no assurance that the simulated results will be achieved or sustained.
Results of the analysis are driven primarily by the assumed long-term, compound rates of return
of each asset class in the scenarios. Our corresponding assumptions, all presented in excess of 3%
• Mobile and collaborative capabilities for
inflation, are as follows: for stocks 4.90%, for bonds, 2.23% and for short-term bonds, 1.38%.
Investment expenses in the form of an expense ratio are subtracted from the return assumption wired participants
as follows: for stocks 0.70%, for bonds, 0.60% and for short-term bonds, 0.55%. These expenses
represent what we believe to be a reasonable approximation of the fees charged for investing
in these asset classes through a professionally managed mutual fund or other pooled • Social marketing applications to engage with
investment product.
IMPORTANT: The simulations or other information generated by the T. Rowe Price Retirement fellow sponsors
Income ManagerSM regarding the likelihood of various investment outcomes are hypothetical
in nature, do not reflect actual investment results and are not guarantees of future results. The
simulations are based on assumptions. There can be no assurance that the simulated results
will be achieved or sustained. The charts present only a range of possible outcomes. Actual
• Online and personalized tools and communications
results will vary with each use and over time, and such results may be better or worse than the
simulated scenarios. Clients should be aware that the potential for loss (or gain) may be greater
than demonstrated in the simulations.
• Dynamic tools to help you manage your planFocusing on Investment
Management Excellence
Investment Management Excellence
Under Armour golf attire is my
specialty... keeps me “cool” from
the course to the club house.
Toby Thompson
Investment Specialistunder armour + t. rowe price
Fund Recognition
T. Rowe Price has the
most actively managed
funds on the Money 70® list Source: MONEY magazine (January 2011). In
determining the funds on the MONEY 70®, the staff
with a total of seven funds.
of MONEY magazine based its decision on each
fund’s low expenses, consistent strategy, experienced
management, and five-year performance record.
The ending date for performance was 12/7/10.
MONEY and MONEY 70 are registered trademarks
MONEY magazine, January 2011 of Time Inc. Fund returns have been affected by
market volatility and are negative for certain periods.
T. Rowe Price Investment Services, Inc., Distributor.
63the numbers speak for themselves:
T. Rowe Price’s mutual funds • 100% of T. Rowe Price mutual funds for individual
remain competitive, in investors have expense ratios below their Lipper
many cases outperforming category averages.1
their peers. • For each 3-, 5-, and 10-year period ended
June 30, 2011, 75% of our funds outperformed
their Lipper average.2
- 85% — 3-year period
- 90% — 5-year period
- 78% — 10-year period
Results will vary for other periods. Past performance cannot
guarantee future results. All funds are subject to market risk,
including possible loss of principal. Fund returns have been
affected by market volatility and are negative for certain
periods. Call 1-800-922-9945 to request a prospectus, which
includes investment objectives, risks, fees, expenses, and other
information that you should read and consider carefully
before investing.
64
I NVESTMENT MANAGEMENT
1
137 of 137 funds (excluding institutional and bank institutional funds as defined by Lipper, A
Thomson Reuters Company.) that are more than six months old had expense ratios below their
Lipper averages, based on fiscal year-end data available as of 6/30/11. Lipper, A Thomson
Reuters Company. )
2
Based on cumulative total return, 119 of 173 (69%), 137 of 162, 124 of 138, and 69 of 89
T. Rowe Price funds (including all share classes and excluding funds used in insurance products)
outperformed their Lipper average for the 1-, 3-, 5-, and 10-year periods ended June 30, 2011.
Not all funds outperformed for all periods. Lipper, A Thomson Reuters Company. )under armour + t. rowe price
“Markets fluctuate but
our approach is steady. We
rely on our experience,
discipline, and principles
to make thoughtful
investment decisions on
behalf of our clients.”
BRIAN ROGERS
CHAIRMAN OF THE BOARD AND CHIEF INVESTMENT OFFICER, T. ROWE PRICE GROUP
65Ultimately, it’s your employees who benefit from our rigorous approach
to investing.
• 181 in-house analysts • Portfolio managers
dedicated to fundamental, average 20 years
bottom-up research1 of investment experience2
• In-depth company analysis • Seasoned professionals
Proprietary Experienced
designed to produce Research Investment focused on long-term
sound, long-term Teams investment opportunities
investment decisions rather than market fads
THE T. ROWE PRICE
ADVANTAGE
• Seek superior risk- • Strict adherence to each
adjusted returns in portfolio’s investment
all market environments Attention Style mandates and objectives
to Risk Consistency 66
• Risk—in all forms— • Look inside the components
I NVESTMENT MANAGEMENT
considered at each step of portfolio construction
in our process
1
As of June 30, 2011. 4 portfolio managers/analysts, 8 sector portfolio managers, 119 research analysts, 22 associate research analysts, 25 quantitative analysts, and 3 specialty analysts.
2
As of June 30, 2011.under armour + t. rowe price
Industry Respect
The T. Rowe Price Retirement Funds
were one of 4 target-date fund
families who received the highest
overall Morningstar Target-Date
Series Rating (a “Top” rating), which
is based on Morningstar's evaluation
of two qualitative and three
quantitative components
T. Rowe Price’s target-date (People, Parent, Price, Portfolio,
and Performance). 1
funds received Morningstar’s 1Source: Morningstar Target-Date Fund
Series Report, 12/31/2009. Each target-date
fund series was given one of the following
highest overall rating. ratings for each of these components: Top,
Above Average, Average, Below Average, or
Bottom. The T. Rowe Price Retirement Funds
received Top ratings for the portfolio
management and parent company
categories; Above Average for costs and
MORNINGSTAR ADVISOR, “THIS TIME IT’S PERSONAL,” DECEMBER 2009/JANUARY 2010 Portfolio; and Average for Performance.
67 T. Rowe Price Investment Services, Inc, distributor, T. Rowe Price mutual fundsThe Retirement Funds are a lifetime strategy that can simplify the investment
process for your employees in any stage of retirement planning. Our asset
allocation is based on the principle that participants will need income up to
and throughout a 30-year retirement.
OUR GLIDE PATH TAKES INVESTORS UP TO AND THROUGH RETIREMENT COUPLES ARE LIVING LONGER
100%
Beginning in 2005
Beginning in 2025
80% Beginning in 2045
65%
60% 59%
52%
40%
33%
28%
23%
20%
0%
90 95
Age
Odds of at Least One Spouse of a 55-Year-Old Couple
Living to Age 90 and 95
Source: Society of Actuaries. Compiled in July 2006
from Longevity: The Underlying Driver of Retirement
Risk 2005 Risks and Process of Retirement Survey.
Equity
U.S. Equity
Fixed Income 68
Core Fixed Income
Non-U.S. Equity Plus Fixed Income
I NVESTMENT MANAGEMENT
Real Assets Inflation Fixed Income
The principal value of the Retirement Funds is not guaranteed at any time, including at or after the target date, which
is the approximate date when investors turn age 65. The funds invest in a broad range of underlying mutual funds
that include stocks, bonds, and short-term investments and are subject to the risks of different areas of the market.
The funds emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance
the need for appreciation with the need for income as retirement approaches, and focus more on income and
principal stability during retirement. The funds maintain a substantial allocation to equities both prior to and after the
target date, which can result in greater volatility.under armour + t. rowe price
Stable Value Common 1
The Hueler Stable Value Pooled Fund
Trust Fund
Index (the "Hueler Index") is an
equal-weighted total return across all
participating funds in the Hueler
Analytics Pooled Fund Comparative
Universe (the "Hueler Universe"). The
Hueler Universe is provided by Hueler
Analytics, a Minnesota-based stable
The Stable Value Fund was value data and research firm, which
has developed the Hueler Universe for
use as a comparative database to
highly ranked compared
evaluate collective trust funds and other
pooled vehicles with investments in
stable value instruments. The Universe is
composed of pooled stable value funds
to similar funds for the most with common investment objectives of
stability of principal; the number of
participating funds in the Hueler
recent time periods.1
Universe may vary over the different
historic periods. Hueler Index rates
of return are reported gross of
management fees. Compared to its peer
universe, the T. Rowe Price Stable Value
Top quartile – 1-year period Top quartile – 5-year period Fund performed as follows for the most
recent 1-, 3-, 5-, and 10-year periods,
Top quartile – 3-year period Top quartile – 10-year period respectively: 2 of 18, 1 of 18, 2 of 18,
and 3 of 17.
AS OF JUNE 30, 2011
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