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Form N-CSR T. Rowe Price Diversifie For: Dec 31

February 22, 2024 10:14 AM EST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-21454

T. Rowe Price Diversified Mid-Cap Growth Fund, Inc.

 

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

 

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

 

(Name and address of agent for service)

Registrant’s telephone number, including area code: (410) 345-2000

Date of fiscal year end: December 31

Date of reporting period: December 31, 2023


Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1


Highlights
and
Market
Commentary
Management’s
Discussion
of
Fund
Performance
Performance
and
Expenses
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
December
31,
2023
ANNUAL
Report
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRDMX
Diversified
Mid-Cap
Growth
Fund
.
RPTTX
Diversified
Mid-Cap
Growth
Fund–
.
I Class
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
HIGHLIGHTS
The
Diversified
Mid-Cap
Growth
Fund
returned
almost
21%
and
outperformed
the
Lipper
Mid-Cap
Growth
Funds
Index
in
2023,
but
it
trailed
the
Russell
Midcap
Growth
Index
(Russell
index).
The
fund
has
also
outperformed
other
active
mid-
cap
growth
managers
for
the
3-,
5-,
and
10-year
periods
ended
December
31,
2023,
and
outperformed
the
Russell
index
over
the
last
10
years
(see
page
7).
Stock
selection,
particularly
in
the
information
technology,
health
care,
and
financials
sectors,
hurt
performance
relative
to
the
Russell
index
in
2023.
Alternatively,
stock
choices
in
the
utilities
sector
contributed
slightly
to
relative
results,
as
did
a
small
underweight
to
the
consumer
staples
sector.
Although
inflation—which
has
fallen
materially
since
mid-2022—remains
above
the
Federal
Reserve’s
long-term
2%
target,
the
rate
hiking
cycle
seems
to
be
over.
It
remains
to
be
seen
if
the
Fed
will
achieve
a
soft
landing
for
the
economy.
Bonds,
despite
a
brisk
fourth-quarter
rally,
remain
unattractive
long-term
investments,
and
we
believe
equities
remain
a
better
choice
for
those
who
seek
capital
growth
over
time.
While
quality
mid-cap
growth
companies—which
we
favor—lagged
considerably
in
2023,
and
while
being
disciplined
from
a
valuation
perspective
hurt
our
performance
versus
the
Russell
benchmark,
we
believe
that
valuation
always
matters
and
that
it
is
just
a
question
of
time
until
elevated
valuations
revert
to
the
mean.
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
An
account
service
fee
will
be
charged
annually
for
each
T.
Rowe
Price
mutual
fund
account
unless
you
meet
criteria
for
a
fee
waiver.
Go
to
troweprice.com/personal-investing/help/fees-and-
minimums.html
to
learn
more
about
this
account
service
fee,
including
other
ways
to
waive
it.
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
Market
Commentary
1
Dear
Shareholder
Global
stock
and
bond
indexes
were
broadly
positive
during
2023
as
most
economies
managed
to
avoid
the
recession
that
was
widely
predicted
at
the
start
of
the
year.
Technology
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
developments
and
led
the
equity
rally,
while
fixed
income
benchmarks
rebounded
late
in
the
year
amid
falling
interest
rates.
For
the
12-month
period,
the
technology-oriented
Nasdaq
Composite
Index
rose
about
43%,
reaching
a
record
high
and
producing
the
strongest
result
of
the
major
benchmarks.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
markets
counterparts.
Currency
movements
were
mixed
over
the
period,
although
a
weaker
dollar
versus
major
European
currencies
was
beneficial
for
U.S.
investors
in
European
securities.
Within
the
S&P
500
Index,
which
finished
the
year
just
short
of
the
record
level
it
reached
in
early
2022,
the
information
technology,
communication
services,
and
consumer
discretionary
sectors
were
all
lifted
by
the
tech
rally
and
recorded
significant
gains.
A
small
group
of
tech-oriented
mega-cap
companies
helped
drive
much
of
the
market’s
advance.
Conversely,
the
defensive
utilities
sector
had
the
weakest
returns
in
the
growth-focused
environment,
and
the
energy
sector
also
lost
ground
amid
declining
oil
prices.
The
financials
sector
bounced
back
from
the
failure
of
three
large
regional
banks
in
the
spring
and
was
one
of
the
top-performing
segments
in
the
second
half
of
the
year.
The
U.S.
economy
was
the
strongest
among
the
major
markets
during
the
period,
with
gross
domestic
product
growth
coming
in
at
4.9%
in
the
third
quarter,
the
highest
since
the
end
of
2021.
Corporate
fundamentals
were
also
broadly
supportive.
Year-over-year
earnings
growth
contracted
in
the
first
and
second
quarters
of
2023,
but
results
were
better
than
expected,
and
earnings
growth
turned
positive
again
in
the
third
quarter.
Markets
remained
resilient
despite
a
debt
ceiling
standoff
in
the
U.S.,
the
outbreak
of
war
in
the
Middle
East,
the
continuing
conflict
between
Russia
and
Ukraine,
and
a
sluggish
economic
recovery
in
China.
Inflation
remained
a
concern,
but
investors
were
encouraged
by
the
slowing
pace
of
price
increases
as
well
as
the
possibility
that
the
Federal
Reserve
was
nearing
the
end
of
its
rate-hiking
cycle.
The
Fed
held
rates
steady
after
raising
its
short-term
lending
benchmark
rate
to
a
target
range
of
5.25%
to
5.50%
in
July,
the
highest
level
since
March
2001,
and
at
its
final
meeting
of
the
year
in
December,
the
central
bank
indicated
that
there
could
be
three
25-basis-point
rate
cuts
in
2024.
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
2
The
yield
of
the
benchmark
10-year
U.S.
Treasury
note
briefly
reached
5.00%
in
October
for
the
first
time
since
late
2007
before
falling
back
to
3.88%
by
period-end,
the
same
level
where
it
started
the
year,
amid
cooler-than-expected
inflation
readings
and
less-hawkish
Fed
rhetoric.
Fixed
income
benchmarks
were
lifted
late
in
the
year
by
falling
yields.
Investment-grade
and
high
yield
corporate
bonds
produced
solid
returns,
supported
by
the
higher
coupons
that
have
become
available
over
the
past
year,
as
well
as
increasing
hopes
that
the
economy
might
be
able
to
avoid
a
recession.
Global
economies
and
markets
showed
surprising
resilience
in
2023,
but
considerable
uncertainty
remains
as
we
look
ahead.
Geopolitical
events,
the
path
of
monetary
policy,
and
the
impact
of
the
Fed’s
rate
hikes
on
the
economy
all
raise
the
potential
for
additional
volatility.
We
believe
this
environment
makes
skilled
active
management
a
critical
tool
for
identifying
risks
and
opportunities,
and
our
investment
teams
will
continue
to
use
fundamental
research
to
help
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely, 
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
Management’s
Discussion
of
Fund
Performance
3
INVESTMENT
OBJECTIVE 
The
fund
seeks
to
provide
long-term
capital
growth
by
investing
primarily
in
the
common
stocks
of
mid-cap
growth
companies.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
Mid-cap
growth
stocks
produced
strong
gains
in
2023,
as
the
equity
market
rebounded
from
poor
performance
in
2022.
Your
fund
returned
20.78%
but
underperformed
the
Russell
Midcap
Growth
Index
(Russell
index),
which
returned
25.87%.
However,
the
fund
outperformed
the
Lipper
Mid-Cap
Growth
Funds
Index,
which
returned
20.33%.
(Performance
for
the
fund’s
I
Class
will
vary
due
to
its
different
fee
structure.
The
fund’s
I
Class
shares
are
designed
to
be
sold
to
various
institutional
investors
and
generally
require
a
minimum
initial
investment
of
$500,000.
Past
performance
cannot
guarantee
future
results
.
)
What
factors
influenced
the
fund’s
performance?
Stock
selection,
particularly
in
the
information
technology,
health
care,
and
financials
sectors,
hurt
performance
relative
to
the
Russell
index.
Alternatively,
stock
choices
in
the
utilities
sector
contributed
slightly
to
relative
results,
as
did
a
small
underweight
to
the
consumer
staples
sector.
In
the
information
technology
sector,
where
we
favor
companies
with
strong
business
models
in
industries
with
high
barriers
to
entry
and
low
risk
of
commoditization,
fund
performance
was
hurt
by
Palantir
Technologies,
a
provider
of
vertically
integrated
workflow
software
that
enables
companies
to
analyze
structured
and
unstructured
data.
We
initiated
a
stake
late
in
the
year
and,
thus,
did
not
harness
the
stock’s
full-year
gains.
Another
poor
performer
was
Enphase
Energy,
a
residential
solar
inverter
company
that
is
also
branching
out
into
residential
batteries.
Inverters
are
used
to
convert
direct
current
(DC)
electricity
from
sunlight
harnessed
by
solar
panels
into
alternating
current
(AC)
electricity,
which
is
used
by
most
electrical
devices
and
is
safer
to
transmit
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
12/31/23
6
Months
12
Months
Diversified
Mid-Cap
Growth
Fund
.
5.09‌%
20.78‌%
Diversified
Mid-Cap
Growth
Fund–
.
I  Class
5.19‌
21.04‌
Russell
Midcap
Growth
Index
8.56‌
25.87‌
Lipper
Mid-Cap
Growth
Funds
Index
6.12‌
20.33‌
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
4
across
distances.
Shares
were
hurt
for
most
of
the
year
by
rising
longer-term
interest
rates.
In
addition,
Lattice
Semiconductor,
which
specializes
in
low-
power
field-programmable
gate
arrays,
underperformed.
At
the
end
of
October,
investors
were
discouraged
that
Lattice
reduced
its
fourth-quarter
guidance
due
to
weaker
overseas
demand.
(Please
refer
to
the
portfolio
of
investments
for
a
complete
list
of
holdings
and
the
amount
each
represents
in
the
portfolio.)
In
the
health
care
space,
we
favor
equipment
and
supplies
providers,
as
well
as
service
providers
reflective
of
demographic
factors
and
desires
for
increased
access
to
health
care
services.
We
also
emphasize
innovative
biotechnology
companies
with
promising
products
that
address
large,
unmet
needs,
and
we
remain
broadly
diversified
in
this
segment
to
reduce
risk.
Our
underweight
in
Seagen
(formerly,
Seattle
Genetics),
a
biotechnology
company
that
focuses
on
antibody-drug
conjugates
for
cancer,
hurt
our
performance
when
it
was
acquired
by
Pfizer
for
a
substantial
premium.
Underweighting
Align
Technology,
a
dental
supply
company
that
makes
the
Invisalign
brand
of
clear
dental
aligners,
also
hurt
relative
results.
We
underweighted
it
because
it
was
expensive.
In
the
financials
sector,
we
look
for
differentiated
companies
with
high
returns
on
invested
capital
in
the
capital
markets,
insurance,
banking,
and
financial
services
industries.
Our
stake
in
Arch
Capital
Group,
a
quality
underwriter
of
insurance,
reinsurance,
and
mortgage
insurance,
underperformed
for
the
year.
We
like
the
company’s
conservative
management
team
and
good
capital
allocation
practices
and
believe
that
it
will
benefit
from
higher
investment
income
stemming
from
the
significant
increase
in
interest
rates
over
the
last
two
years.
Our
late-year
purchase
of
Kinsale
Capital
Group,
an
excess
and
surplus
insurance
company
serving
small
and
medium-sized
businesses,
underperformed.
We
have
minimal
exposure
to
the
utilities
sector,
as
most
utility
companies
do
not
meet
our
growth
criteria.
However,
our
only
investment
in
the
sector—
Vistra,
an
integrated
retail
electricity
and
power
generation
company
that
is
based
in
Texas
and
serves
close
to
half
of
the
states
in
the
U.S.—produced
an
excellent
total
return
in
2023.
The
company
is
a
large
competitive
electricity
provider
through
the
use
of
natural
gas,
nuclear
energy,
and
solar
sources.
Shares
were
lifted
by
an
improvement
in
year-over-year
financial
results.
Also,
our
modest
underweight
to
the
consumer
staples
sector—which
lagged
most
sectors
in
the
mid-cap
growth
universe—added
value
in
2023.
We
believe
most
consumer
staples
companies
are
mature
and
fairly
valued
within
the
space.
Some
of
our
notable
performers
included
cosmetics
and
skin
care
companies
E.L.F.
Beauty
and
Estee
Lauder
as
well
as
Performance
Food
Group,
one
of
the
largest
food
distributors
in
the
U.S.
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
5
How
is
the
fund
positioned?
Various
portfolio
characteristics
at
year-end
were
similar
to
those
of
the
Russell
Midcap
Growth
Index
(Russell
index).
For
example,
the
historical
growth
rate
of
the
fund's
holdings
over
the
last
five
years
matched
that
of
the
index
(15.9%),
whereas
the
projected
earnings
growth
rate
of
our
holdings
(13.2%)
was
marginally
higher
than
the
index’s
constituents
(13.1%).
The
portfolio’s
estimated
12-month
forward
price/earnings
ratio
matched
that
of
the
index
(29.4),
while
the
fund’s
median
market
capitalization
was
$29.5
billion
versus
$27.6
billion
for
the
index.
We
would
also
like
to
note
that
our
holdings
have
lower
debt
than
businesses
in
the
Russell
index,
based
on
certain
long-term
debt-to-equity
measures.
In
addition,
we
have
a
slightly
lower
beta
(a
measure
of
volatility)
versus
the
index
and
are
tilted
away
from
money-losing
companies.
The
fund’s
return
on
equity
(ROE)
for
the
latest
12
months
excluding
charges,
which
measures
how
effectively
and
efficiently
a
company
and
its
management
are
using
stockholder
investments,
was
22.7%
versus
24.4%
for
the
benchmark.
While
we
consider
a
high
ROE
to
be
desirable,
we
prefer
businesses
whose
growth
is
steady
and
sustainable,
rather
than
companies
whose
growth
is
unsustainably
high.
At
the
end
of
December,
our
largest
sector
allocation
was
information
technology,
and
we
had
a
slight
overweight
versus
the
benchmark.
We
had
more
modest
overweights
in
the
industrials
and
business
services
sector,
where
we
favor
high-quality
industrials
companies
that
provide
more
stable
earnings
under
varying
economic
conditions,
and
in
the
energy
sector,
where
we
seek
companies
that
are
adept
at
finding
underlying
resources
and
that
are
well
positioned
in
the
lowest
cost
basins.
On
the
other
hand,
our
most
significant
underweight
was
in
the
health
care
sector.
We
had
a
lesser
underweight
in
consumer
staples,
as
mentioned
earlier.
SECTOR
DIVERSIFICATION
Percent
of
Net
Assets
as
of
12/31/23
Diversified
Mid-Cap
Growth
Fund
Russell
Midcap
Growth
Index
Information
Technology
24.7‌%
23.6‌%
Industrials
and
Business
Services
20.1‌
19.6‌
Health
Care
17.3‌
18.7‌
Consumer
Discretionary
13.2‌
13.4‌
Financials
10.8‌
10.5‌
Communication
Services
4.6‌
4.2‌
Energy
4.3‌
3.8‌
Consumer
Staples
2.3‌
2.8‌
Real
Estate
1.4‌
1.7‌
Materials
1.2‌
1.3‌
Utilities
0.1‌
0.4‌
Other
and
Reserves
0.0‌
0.0‌
Total
100.0‌%
100.0‌%
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
6
Our
remaining
allocations
were
fairly
close
to
those
of
the
benchmark,
as
shown
in
the
Sector
Diversification
table
on
page
5,
which
is
how
we
typically
manage
the
portfolio.
Instead
of
making
big
sector
bets,
we
focus
on
selecting
stocks
that
we
believe
will
outperform
over
time.
We
had
modest
exposure
to
the
consumer
staples,
materials,
utilities,
and
real
estate
segments.
Most
businesses
in
those
sectors
do
not
meet
our
growth
criteria.
What
is
portfolio
management’s
outlook?
The
economy
remained
resilient
throughout
2023,
even
though
the
Federal
Reserve
raised
short-term
interest
rates
through
the
end
of
July
and
then
held
them
steady
through
the
end
of
the
year.
Although
inflation—which
has
fallen
materially
since
mid-2022—remains
above
the
Fed’s
long-term
2%
target,
the
rate
hiking
cycle
seems
to
be
over,
and
investors
are
hopeful
that
the
central
bank
will
lower
rates
in
2024.
It
remains
to
be
seen
if
the
Fed
will
achieve
a
soft
landing
for
the
economy.
While
stock
market
returns
were
broadly
positive,
the
fourth
quarter
and
full
year
were
challenging
periods
for
our
strategy,
due
to
factors
such
as
the
outperformance
of
volatile
stocks
and
expensive
companies,
as
well
as
hype
about
the
potential
for
artificial
intelligence
that
prompted
investors
to
be
more
risk-seeking
than
we
are.
Quality
mid-cap
growth
companies—which
we
favor—lagged
considerably,
and
being
disciplined
from
a
valuation
perspective
hurt
our
performance
versus
the
Russell
benchmark.
Nevertheless,
we
believe
that
valuation
always
matters
and
that
it
is
just
a
question
of
time
until
elevated
valuations
revert
to
the
mean.
Overweighting
expensive
companies
is,
in
our
opinion,
akin
to
gambling,
and
we
are
not
willing
to
make
that
bet
with
our
investors’
capital.
Fixed
income
securities
produced
solid
gains
for
the
year,
thanks
to
a
brisk
fourth-quarter
rally
that
saw
longer-term
Treasury
yields
decline
around
100
basis
points
(one
percentage
point)
from
multiyear
highs
reached
in
October.
We
still
believe,
however,
that
bonds
are
unattractive
long-term
investments
and
that
equities
remain
a
better
choice
for
those
who
seek
capital
growth
over
time.
As
always,
we
encourage
equity
investors
to
stay
focused
on
their
long-
term
financial
goals
and
remain
fully
invested.
Despite
varying
environments
in
which
mid-cap
growth
stocks
have
occasionally
lagged
other
investment
styles,
the
portfolio
has
outperformed
other
active
mid-cap
growth
managers,
as
measured
by
the
Lipper
peer
group
index,
for
the
1-,
3-,
5-,
and
10-year
periods
ended
December
31,
2023.
Also,
the
portfolio
has
closely
tracked
the
Russell
benchmark
in
the
three-
and
five-
year
periods
and
outperformed
the
index
over
the
last
10
years
(see
page
7).
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
7
The
Fund’s
average
annual
total
returns
for
the
1-,
3-,
5-,
and
10-year
periods
ended
December
31,
2023,
were
20.
78%,
1.17%,
13.48%,
and
10.77%,
respectively.
The
Russell
Midcap
Growth
Index’s
returns
for
the
same
periods
were
25.87%,
1.31%,
13.81%,
and
10.57%,
respectively.
The
Lipper
Mid-Cap
Growth
Funds
Index’s
returns
for
the
same
periods
were
20.33%,
-1.76%,
11.52%,
and
9.06%,
respectively.
The
fund’s
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
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
or,
for
I
Class
shares,
1-800-638-8790.
We
are
convinced
that
adhering
to
the
basic
tenets
of
our
strategy—staying
fully
invested,
focusing
on
longer-term
investment
horizons,
favoring
quality
companies,
and
factoring
valuations
and
risks
into
our
portfolio
decisions—has
historically
made
our
strategy
successful
over
the
long
term.
We
also
believe
that
our
disciplined
process
of
researching
and
selecting
reasonably
priced
growth
companies
with
attractive
attributes
should
continue
to
produce
favorable
results
over
time.
The
views
expressed
reflect
the
opinions
of
T.
Rowe
Price
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic,
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
8
RISKS
OF
INVESTING
IN
THE
DIVERSIFIED
MID-CAP
GROWTH
FUND
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.
Investing
primarily
in
issuers
within
the
same
market
capitalization
category
carries
the
risk
that
the
category
may
be
out
of
favor
due
to
current
market
conditions
or
investor
sentiment.
Because
the
fund
invests
primarily
in
securities
issued
by
mid-cap
companies,
it
is
likely
to
be
more
volatile
than
a
fund
that
focuses
on
securities
issued
by
large
companies.
Medium-sized
companies
may
have
less
seasoned
management,
narrower
product
lines,
and
less
capital
reserves
and
less
liquidity
than
larger
companies
and
are,
therefore,
more
sensitive
to
economic,
market,
and
industry
changes.
Different
investment
styles
tend
to
shift
into
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.
BENCHMARK
INFORMATION
Note:
London
Stock
Exchange
Group
plc
and
its
group
undertakings
(collectively,
the
“LSE
Group”).
©
LSE
Group
2024.
FTSE
Russell
is
a
trading
name
of
certain
of
the
LSE
Group
companies.  “Russell
®
” is/are
a
trademark(s)
of
the
relevant
LSE
Group
companies
and
is/are
used
by
any
other
LSE
Group
company
under
license.
All
rights
in
the
FTSE
Russell
indexes
or
data
vest
in
the
relevant
LSE
Group
company
which
owns
the
index
or
the
data.
Neither
LSE
Group
nor
its
licensors
accept
any
liability
for
any
errors
or
omissions
in
the
indexes
or
data
and
no
party
may
rely
on
any
indexes
or
data
contained
in
this
communication.
No
further
distribution
of
data
from
the
LSE
Group
is
permitted
without
the
relevant
LSE
Group
company’s
express
written
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
9
consent.
The
LSE
Group
does
not
promote,
sponsor
or
endorse
the
content
of
this
communication.
The
LSE
Group
is
not
responsible
for
the
formatting
or
configuration
of
this
material
or
for
any
inaccuracy
in
T.
Rowe
Price’s
presentation
thereof.
Note:
Portions
of
the
mutual
fund
information
contained
in
this
report
was
supplied
by
Lipper,
a
Refinitiv
Company,
subject
to
the
following:
Copyright
2024
©
Refinitiv.
All
rights
reserved.
Any
copying,
republication
or
redistribution
of
Lipper
content
is
expressly
prohibited
without
the
prior
written
consent
of
Lipper.
Lipper
shall
not
be
liable
for
any
errors
or
delays
in
the
content,
or
for
any
actions
taken
in
reliance
thereon.
BENCHMARK
INFORMATION
(continued)
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
10
PORTFOLIO
HIGHLIGHTS
TWENTY-FIVE
LARGEST
HOLDINGS
Percent
of
Net
Assets
12/31/23
Apollo
Global
Management
1.9‌%
Crowdstrike
Holdings
1.7‌ 
Cencora
1.7‌ 
Cintas
1.5‌ 
Ross
Stores
1.5‌ 
Copart
1.4‌
Cheniere
Energy
1.4‌
Dexcom
1.4‌
IDEXX
Laboratories
1.4‌
Old
Dominion
Freight
Line
1.4‌
Rockwell
Automation
1.3‌
IQVIA
Holdings
1.2‌
Microchip
Technology
1.2‌
Datadog
1.2‌
Verisk
Analytics
1.2‌
Trade
Desk
1.2‌
Paychex
1.2‌
Amphenol
1.1‌
Yum!
Brands
1.1‌
Hilton
Worldwide
Holdings
1.1‌
Palantir
Technologies
1.1‌
Gartner
1.1‌
Zscaler
1.0‌
Fair
Isaac
1.0‌
HubSpot
1.0‌
Total
32.3‌%
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.
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
11
GROWTH
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
include
a
broad-based
market
index
and
may
also
include
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.
DIVERSIFIED
MID-CAP
GROWTH
FUND 
Note:
Performance
for
the I
Class share
will
vary
due
to
its differing
fee
structure.
See
the
Average
Annual
Compound
Total
Return
table
on
the
next
page. 
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
12
AVERAGE
ANNUAL
COMPOUND
TOTAL
RETURN
EXPENSE
RATIO
Periods
Ended
12/31/23
1
Year
5
Years
10
Years
Since
Inception
Inception
Date
Diversified
Mid-Cap
Growth
Fund
.
20.78‌%
13.48‌%
10.77‌%
–‌
Diversified
Mid-Cap
Growth
Fund–
.
I  Class
21.04‌
13.66‌
–‌
11.75‌%
5/3/17
The
fund’s
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
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
or,
for
0.02
I
Class
shares,
1-800-638-8790.
This
table
shows
how
the
fund
would
have
performed
each
year
if
its
actual
(or
cumulative)
returns
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.
Diversified
Mid-Cap
Growth
Fund
0.87‌%
Diversified
Mid-Cap
Growth
Fund–I
Class
0.68‌ 
The
expense
ratio
shown
is
as
of
the
fund’s
most
recent
prospectus.
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.
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
13
FUND
EXPENSE
EXAMPLE
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)