Why We Upgraded T. Rowe Price Mid-Cap Fund

Higher conviction in T. Rowe Price Mid-Cap Value Z Class TRTZX’s differentiated stock-picking approach drove a Process Pillar upgrade to Above Average from Average, raising its

to Gold from Silver.

Lead manager Vincent DeAugustino looks for companies with capable management teams, healthy balance sheets, and defensible market positions whose shares have come under pressure from short-term headwinds. His “fixable” and “lovable” framework narrows the search to troubled businesses with clear paths to recovery and durable qualities that can help them flourish over the long term. The process is flexible and conviction-driven, allowing the team to look across the market-cap spectrum for compelling opportunities. The team builds conviction through “sweat equity,” including fundamental research, site visits, management meetings, and board-level engagement. That hands-on work can be especially useful in complex situations where the market may underappreciate a company’s recovery potential. Risk management is integrated in the process, with scenario analysis helping the team better understand company-specific risks.

DeAugustino brings a strong analytical background and measured temperament to the strategy. Since taking over in June 2022, he has shown a willingness to make high-conviction calls, while balancing that confidence with curiosity and humility. He also benefits from T. Rowe Price’s deep analyst bench, support from dedicated associate analyst Caroline Dull, and an advisory committee that helps test key investment theses. Four years into his tenure, DeAugustino comes across as a thoughtful leader for the strategy.

Key Morningstar Metrics for T. Rowe Price Mid-Cap Value Fund Z Class

Morningstar Medalist Rating: Gold

: Above Average

: Above Average

: Above Average

Leadership Reshuffling

Upcoming manager changes at T. Rowe Price High Yield Fund I Class PRHIX prompted a People Pillar downgrade to Average from Above Average and lowered its Morningstar Medalist Rating to Bronze from Silver.

The team is undergoing a meaningful leadership transition. Lead manager Rodney Rayburn will retire in February 2027; his departure follows comanager Mike Della Vedova’s in February 2026. Comanager David Yatzeck, a longtime team member who has been both a manager and analyst, will take the a in December 2026, with Jason Bauer joining as comanager. Both bring relevant experience and familiarity with T. Rowe Price’s research-driven approach. Still, Yatzeck has not led this strategy before, and recent analyst turnover adds more uncertainty.

Key Morningstar Metrics for T. Rowe Price High Yield Fund I Class

Morningstar Medalist Rating: Bronze

Process Pillar: Above Average

People Pillar: Average

Parent Pillar: Above Average

Veteran Duo

Increased confidence in PGIM Jennison Utility Fund R6 PRUQX’s experienced managers led to a People Pillar upgrade to Above Average from Average, elevating its Morningstar Medalist Rating to Silver from Bronze.

Managers Shaun Hong and Bobby Edemeka bring exceptional continuity to this strategy. Hong became a comanager in 2000 after joining as an analyst in 1999, while Edemeka, who first joined Jennison in 1997, returned to the firm in 2002 after a two-year stint at Goldman Sachs, and joined Hong as a comanager in 2005. Backed by Jennison’s seasoned value equity and sector analysts, the duo has the longest shared tenure in the utilities category. Despite occasional missteps, the team’s impressive stock selection results have benefited long-term investors and contributed to the strategy’s durable outperformance.

Key Morningstar Metrics for PGIM Jennison Utility Fund R6

Morningstar Medalist Rating: Silver

Process Pillar: Average

People Pillar: Above Average

Parent Pillar: Above Average

Not a Typical Dividend ETF

Concerns around WisdomTree US High Dividend ETF DHS’s inconsistent risk exposures resulted in a Process Pillar downgrade to Average from Above Average, reducing its Morningstar Medalist Rating to Neutral from Bronze.

The strategy tracks the WisdomTree High Dividend Index, whose dividend-focused approach has some sensible guardrails, but comes with trade-offs. Each year, the index resets stock weights based on dividend yield, which can mean adding to companies whose share prices have fallen relative to their dividends and cutting back on stronger performers. While that keeps the portfolio firmly tilted toward value stocks and higher-yielding stocks, it can create big sector differences from peers. For instance, the fund leans more toward consumer defensive and utilities stocks and less toward technology and industrials. Those bets may help at times, but they will not always pay off.

Key Morningstar Metrics for WisdomTree US High Dividend ETF

Morningstar Medalist Rating: Neutral

Process Pillar: Average

People Pillar: Average

Parent Pillar: Below Average