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BALTIMORE, Feb 11, 2010 /PRNewswire via COMTEX News Network/ -- T. Rowe Price (Nasdaq: TROW) has expanded its lineup of global mutual funds by launching the Global Infrastructure Fund. It seeks to provide long-term growth of capital by investing in the listed stocks of infrastructure-related companies around the world, including the U.S. Individual investors can access the strategy through a no-load mutual fund or Advisor class shares that are available through financial intermediaries.

Infrastructure refers to the systems of transportation, communication, energy, and other essential services required for the function of modern society. Infrastructure-related companies derive at least 50% of revenues or profits from the infrastructure industry or commit at least 50% of assets to activities related to the infrastructure industry. The mutual fund will usually invest in at least five countries and will normally offer significant exposure to emerging markets, where infrastructure development is prioritized.

By investing in 60-90 companies of all sizes in various regions, the Global Infrastructure Fund seeks to combine the growth opportunities of infrastructure companies with the defensive qualities of high dividend yielding stocks, such as utility companies. The mutual fund may also offer a degree of protection against inflation through its holdings in companies whose cash flows are inflation linked. Historically, global infrastructure stocks have exhibited lower volatility than global equities in general and offer lower correlations than other equity asset classes, which may provide a diversification benefit to investors' portfolios.

"We expect increased infrastructure spending over the long term around the world to offer significant, durable investment opportunities," says Susanta Mazumdar, portfolio manager of the Global Infrastructure Fund. "The investable universe in this sector is expanding, as developing markets build out infrastructure and developed markets grapple with decaying infrastructure. The unsustainable underinvestment in infrastructure we had seen for decades in developed markets, coupled with increasing modernization in emerging markets, has fueled the availability of growth opportunities in this sector.

"At present, we are seeing particularly attractive investment opportunities in emerging markets. These economies will see the highest increase in infrastructure spending, and we expect the fund's exposure to emerging markets to increase over time. The U.S. and Europe will usually represent the largest regional allocations in the portfolio. Alternative energy companies also present compelling opportunities for growth in the energy sector. Over time, we expect to shift the focus of the portfolio between more defensive utility companies to higher-growth infrastructure stocks, depending on changes in company fundamentals and economic conditions," says Mr. Mazumdar.

Mr. Mazumdar, who has 17 years of investment experience, will manage the Global Infrastructure Fund from T. Rowe Price's Singapore office. Prior to joining the company in 2006 as an equity analyst covering Asia ex-Japan infrastructure and utility companies, Mr. Mazumdar was director of equity research at UBS, covering the Indian oil and gas and infrastructure sectors. His extensive familiarity with the infrastructure sector extends back to when he earned a B.Tech. in petroleum engineering and an M.B.A. from the Indian Institute of Management, Ahmedabad.

Awareness of the global economic backdrop and our outlook for particular subsectors and countries is layered upon a rigorous bottom-up approach to identify high-conviction stock picks. Depending on management's outlook, the fund can shift between more defensive names and those associated with greater growth opportunities.

The minimum initial investment in the Global Infrastructure Fund (TRGFX) and the Global Infrastructure Fund -- Advisor Class (PAGFX) is $2,500 or $1,000 for retirement plans or gifts or transfers to minors (UGMA/UTMA) accounts. The net expense ratio is estimated to be 1.10% for Investor class shares and 1.20% for Advisor class shares. The fund charges a 2% redemption fee on shares purchased and held for 90 days or less.

Investing overseas includes special risks including declining foreign currencies or adverse political or economic events. In addition, the Global Infrastructure Fund's concentrated investment strategy has substantially greater risk than that of a more diversified approach.

The fund's prospectus, which is available on its site troweprice.com/gnf or by calling 1-800-541-8803, 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.

Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (troweprice.com) is a global investment management organization with $391.3 billion in assets under management as of December 31, 2009. 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.

SOURCE T. Rowe Price Group, Inc.

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