T. Rowe Price To Lower Expenses Across Target Date Lineup And Expand Offering With New Blend Fund Series
Fee reductions on all
"We understand everyone's path to retirement is different, and we look forward to delivering greater choice and value to the target date marketplace through these lower fees and the new Retirement Blend Funds. As long-established leaders in retirement and target date investing, we have tremendous conviction in our approach to managing target date assets and we are pleased to extend our offering to a wider base of retirement investors, plan sponsors, and advisors."
"Target date strategies are the core of many investors' retirement portfolios today because of their simplicity, efficiency, and value.
"The retirement savings gap worldwide remains a challenge, compounded by uncertainties in the financial markets and the diverse range of needs and preferences among retirement investors, plan sponsors, and advisors. We're pleased to help our clients pursue their retirement outcomes by expanding our target date lineup further and offering it at an even greater value."
The expense reductions announced today follow the firm's establishment last April of a new unitary fee structure for all target date mutual funds, in which an all-inclusive management fee rate was set at the top level. As part of that restructuring, fees were reduced across the Retirement I Funds – I Class, Target Funds, and Retirement Income 2020 Fund.
The unitary fee structure for the target date mutual funds will remain in place and will reflect the updated fees beginning
The overall investment approach and benchmarks for the Retirement and Target series remain unchanged.
Retirement Blend Funds
The Retirement Blend Funds will combine active and passive styles in selecting underlying investments. The Retirement Blend strategy has been in place at
The Retirement Blend series will offer the value of active management, allowing the opportunity for excess return and greater diversification in market sectors where a fully passive management approach may not be appropriate, while also providing the market exposure and reduced costs common to a passive investment approach.
The Retirement Blend Funds will utilize the enhanced Retirement glide path and the same diversification, and tactical asset allocation as the Retirement suite.
Registration Statements for the T. Rowe Price Retirement Blend 2005-2065 Funds have been filed with the
The firm's target date lineup includes two distinct suites with differing glide paths, offered as both mutual funds and collective investment trusts: the Retirement glide path is designed to support the need for lifetime income; the Target glide path is designed manage growth and volatility around retirement.
Target date strategies have become important retirement investment vehicles for many individual investors and for a growing majority of those participating in defined contribution plans or other tax-deferred retirement savings programs. Target date portfolios attempt to address and balance investors' exposure to three main risks: longevity risk, inflation risk, and market risk. These strategies can be an effective investment solution for investors who prefer to delegate their investment and asset allocation decisions to professional money managers.
MORNINGSTAR UPGRADE TO GOLD RATING
Download a prospectus or obtain one by calling 1-800-541-8803. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
The principal value of the Retirement Funds and the Target Funds (collectively, the "target date funds") is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. The target date funds' allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The Retirement 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 on supporting an income stream over a long-term postretirement withdrawal horizon. The Target Funds emphasize asset accumulation prior to retirement, balance the need for reduced market risk and income as retirement approaches, and focus on supporting an income stream over a moderate postretirement withdrawal horizon. The target date funds are not designed for a lump-sum redemption at the target date and do not guarantee a level of income. The key difference between the Retirement Funds and the Target Funds is the overall allocation to equity; although they each maintain significant allocations to equities both prior to and after the target date, the Retirement Funds maintain a higher equity allocation, which can result in greater volatility over shorter time horizons.
Past performance cannot guarantee future results. For the most recent fund performance, visit troweprice.com.
MORNINGSTAR ANALYST RATING™ FOR FUNDS METHODOLOGY
The Morningstar Analyst Rating™ for Funds is the summary expression of Morningstar's forward-looking analysis of a fund. Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver, and Bronze, in addition to Neutral and Negative ratings. The Analyst Rating is based on the analyst's conviction in the fund's ability to outperform its peer group and/or relevant benchmark on a risk1adjusted basis over the long term.
Morningstar's global analyst team has identified three key areas that they believe are crucial to predicting the future success of strategies and their associated vehicles: People, Process and Parent. These three pillars form the spine of Morningstar's research approach, and each of them is evaluated when assessing a fund. In so doing, Morningstar not only evaluates each pillar but also the interaction between them, which they believe is crucial to understanding a strategy's overall merit.
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The T. Rowe Price Trusts and their underlying trusts (the "Trusts") are not mutual funds. They are common trust funds established by
The "S&P Target Date Index" is a product of
An investment cannot be made in an index.
Founded in 1937,
i Source: Morningstar, as of
ii Source: Morningstar Analyst Report on T. Rowe Price Retirement Funds,
iii Morningstar's Gold Analyst Rating upgrade applies to the T. Rowe Price Retirement. 2005-2060 Funds Investor Class, and the T. Rowe Price Retirement I 2005-2060 Funds - I Class. Analyst Ratings for other share classes or other
iv Source: ©2021 Morningstar. All rights reserved. Peers in the
t. rowe price, public relations, Bill Weeks, (914) 762-2858, firstname.lastname@example.org OR Kim Francois, (443) 687-0249, Kim.Francois@troweprice.com OR Bill Benintende, (443) 248-2424, Bill.Benintende@troweprice.com OR Laura Parsons, (443) 472-2281, Laura.Parsons@troweprice.com