T. Rowe Price Adds Retirement Blend Funds To Target Date Lineup
"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
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 Fundseries 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 Pricesince 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'sexisting Retirement series of target date portfolios.
- All of
T. Rowe Price'starget 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 DeDominicisand Andrew Jacobs van Merlen, CFA.
T. Rowe Price'sother 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
$2,500for the Investor Class shares and $1,000,000for the I Class shares.
SECprospectus filing for the Retirement Blend Fundseries as well as pricing reductions to T. Rowe Price'sbroader target date line-up were previously announced in May 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.
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.
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
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.
Founded in 1937,
i Source: Morningstar, as of
ii Source: S&P Indices. The "S&P Target Date Index" is a product of
An investment cannot be made in an index.
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