BALTIMORE, July 28, 2021 /PRNewswire/ --
NEWS
T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), a market leader in
retirement and target date investing and the only target date
manager with a "High" rating on Morningstar's predictive pillars of
People, Process, and Parenti, today announced the launch
of its Retirement Blend Fund series, expanding the firm's target
date lineup and its range of solutions to help investors achieve
their retirement goals.
"We understand everyone's path to retirement is different and
are pleased to deliver greater choice to the target date
marketplace through the new Retirement Blend Funds," said
Wyatt Lee, portfolio manager and
head of Target Date Strategies, Multi-Asset. "This launch comes
from a position of strength, given our competitive success in
target date investing over the long term. As long-established
leaders in retirement and target date investing, we have tremendous
conviction in our approach and are excited to further extend our
offering to retirement investors, plan sponsors, and advisors."
T. Rowe Price Retirement Blend Funds – Details
- The Retirement Blend Funds' underlying investments are a mix of
active and passive investment strategies, allowing the opportunity
for excess return and potentially greater diversification in
certain market sectors typically associated with active management
while also providing the market exposure and reduced costs
associated with passive management.
- The Retirement Blend Fund series is designed for investors who
prefer a single, simplified, professionally managed solution for
retirement investing and who want an approach that marries the
benefits of active and passive investment styles, including placing
a greater emphasis on managing overall cost.
- The Retirement Blend strategy has been in place at T.
Rowe Price since 2018 but it was
previously available only in the collective investment trust
format. This mutual fund series extends the firm's Retirement Blend
approach to a wider range of investors for whom a mutual fund is
the preferred or most appropriate vehicle.
- The Retirement Blend Funds use the enhanced glide path and the
same diversification and tactical asset allocation as T.
Rowe Price's existing Retirement
series of target date portfolios.
- All of T. Rowe Price's target
date portfolios, including the new Retirement Blend Funds, are
managed by the same accomplished portfolio management team:
Wyatt Lee, CFA, head of Target Date Strategies, and portfolio
managers Kimberly DeDominicis and
Andrew Jacobs van Merlen, CFA.
- Like T. Rowe Price's other
target date funds, the Retirement Blend Funds utilize a unitary fee
structure, where an all-inclusive management fee rate is set at the
top level. Depending on the target date, or vintage, the range of
net expense ratios for the Retirement Blend Funds is 0.34% to 0.44%
for the Investor Class shares and 0.19% to 0.26% for the I Class
shares. Fund vintages are available in five-year increments from
2005 to 2065.
- The Retirement Blend Funds' minimum initial investment is
$2,500 for the Investor Class shares
and $1,000,000 for the I Class
shares.
- The SEC prospectus filing for the Retirement Blend Fund series
as well as pricing reductions to T. Rowe
Price's broader target date line-up were previously
announced in May 2021.
ABOUT T. ROWE PRICE'S TARGET
DATE FRANCHISE AND MULTI-ASSET DIVISION
T. Rowe Price established its
first target date portfolios in 2002 and the firm has been an
industry leader since that time. The firm's target date
portfolios are advised by its Multi-Asset Division, which managed
$459 billion in multi-asset
portfolios for retail and institutional clients as of June 30, 2021. According to Morningstar, T.
Rowe Price is the largest manager of
active target date products in the U.S., with $327.3 billion in active target date strategy
assets under management, as of March 31,
2021.
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.
T. Rowe Price's target date
portfolios seek to provide investors with an age-appropriate,
diversified portfolio that can carry an investor to and through
retirement. One hundred percent (100%) of the Retirement Funds with
10-year track records outperformed their respective S&P Target
Date Index over the 10-year period as of June 30, 2021.ii
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.
IMPORTANT INFORMATION
The principal value of target date strategies is not guaranteed
at any time, including at or after the target date, which is the
approximate date when investors plan to retire (assumed to be age
65). These target date strategies invest in a diversified portfolio
of other T. Rowe Price stock and
bond strategies that represent various asset classes and sectors
and are therefore subject to the risks of different areas of the
market. The allocations of the target date strategies with a stated
retirement date among these underlying strategies will change over
time to reflect the target date strategies changing emphasis from
capital appreciation to income and less volatility as investors
approach and enter retirement. The target date strategies are not
designed for a lump-sum redemption at the target date and do not
guarantee a particular level of income.
Past performance cannot guarantee future results. For the most
recent fund performance, visit troweprice.com.
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.
T. ROWE PRICE INVESTMENT SERVICES, INC., DISTRIBUTOR, T. ROWE
PRICE MUTUAL FUNDS.
ABOUT T. ROWE PRICE
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. is a
global investment management organization with $1.62 trillion in assets under management as of
June 30, 2021. The organization
provides a broad array of mutual funds, subadvisory services, and
separate account management for individual and institutional
investors, retirement plans, and financial intermediaries. The
company also offers sophisticated investment planning and guidance
tools. T. Rowe Price's
disciplined, risk-aware investment approach focuses on
diversification, style consistency, and fundamental research. For
more information, visit troweprice.com, Twitter,
YouTube, LinkedIn, and
Facebook sites.
i Source: Morningstar, as of July 15, 2021. ©2021 Morningstar. All Rights
Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this
information. Past performance is no guarantee of future
results.
ii Source: S&P Indices. The "S&P Target Date
Index" is a product of S&P Dow Jones Indices LLC, a division of
S&P Global, or its affiliates ("SPDJI"), and has been licensed
for use by T. Rowe Price. Standard
& Poor's® and S&P® are registered trademarks of Standard
& Poor's Financial Services LLC, a division of S&P Global
("S&P"); Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"); T. Rowe Price's Products are not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their
respective affiliates and none of such parties make any
representation regarding the advisability of investing in such
product(s) nor do they have any liability for any errors,
omissions, or interruptions of the S&P Target Date Index.
An investment cannot be made in an index.
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SOURCE T. Rowe Price Group, Inc.