Registration Nos. 002-65539/811-2958
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Post-Effective Amendment No. 122 /X/
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
Amendment No. 104 /X/
T. ROWE PRICE INTERNATIONAL FUNDS, INC.
Exact Name of Registrant as Specified in Charter
100 East Pratt Street, Baltimore, Maryland 21202
Address of
Principal Executive Offices
410-345-2000
Registrants Telephone Number, Including Area Code
David Oestreicher
100 East Pratt Street, Baltimore,
Maryland 21202
Name and Address of Agent for Service
Approximate Date of Proposed Public Offering May 21, 2012
It is proposed that this filing will become effective (check appropriate box):
// Immediately upon filing pursuant to paragraph (b)
// On (date) pursuant to paragraph (b)
// 60 days after filing pursuant to paragraph (a)(1)
// On (date) pursuant to paragraph (a)(1)
/X/ 75 days after filing pursuant to paragraph (a)(2)
// On (date) pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
// This post-effective amendment designates a new effective date for a previously filed post-effective amendment.
PROSPECTUS | |
TBD | |
May 24, 2012 | |
T. Rowe Price Emerging Markets Corporate Bond Fund | |
A fund seeking high current income and capital appreciation through investments in emerging markets corporate bonds. SUBJECT TO COMPLETION Information contained herein is subject to completion or amendment. A Registration Statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. This Prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. | |
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. | |
Table of Contents
SUMMARY
The fund seeks to provide high current income and, secondarily, capital appreciation.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.
Fees and Expenses of the Fund
Shareholder fees (fees paid directly from your investment) | |
Maximum sales charge (load) imposed on | NONE |
Maximum deferred sales charge (load) | NONE |
Redemption fee (as a percentage of amount redeemed on shares held for 90 days or less) | 2.00% |
Maximum account fee | $20a |
Annual fund operating expenses | |
Management fees | 0.80% |
Distribution and service (12b-1) fees | 0.00% |
Other expenses | 0.46%b |
Total annual fund operating expenses | 1.26% |
Fee waiver/expense reimbursement | 0.11%c |
Total annual fund operating expenses after fee waiver/expense reimbursement | 1.15%c |
a Subject to certain exceptions, accounts with a balance of less than $10,000 are charged an annual $20 fee.
b Other expenses are estimated.
c T. Rowe Price Associates, Inc. has agreed (through April 30, 2015) to waive its fees and/or bear any expenses (excluding interest, taxes, brokerage, extraordinary expenses, and acquired fund fees) that would cause the funds ratio of expenses to average net assets to exceed 1.15%. Termination of the agreement would require approval by the funds Board of Directors. Fees waived and expenses paid under this agreement are subject to reimbursement to T. Rowe Price Associates, Inc. by the fund whenever the funds expense ratio is below 1.15%. However, no reimbursement will be made after April 30, 2015 or if it would result in the expense ratio exceeding 1.15%.
Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, the funds operating expenses remain the same, and the expense limitation currently in place is not renewed. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
T. Rowe Price | 2 |
1 year | 3 years |
$112 | $351 |
Portfolio Turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the funds performance.
Investments, Risks, and Performance
Principal Investment Strategies The fund will normally invest at least 80% of its net assets (including any borrowings for investment purposes) in bonds that are issued by companies that are located or listed in, or conduct the predominant part of their business activities in, the emerging market countries of Latin America, Asia, Europe, Africa and the Middle East.
While it is expected that the securities held by the fund will primarily be U.S. dollar-denominated, the fund may also hold securities denominated in emerging market currencies and other non-U.S. currencies. The fund does not generally attempt to cushion the impact of non-U.S. currency fluctuations against the U.S. dollar. Although the fund expects to generally maintain an intermediate-term weighted average maturity, there are no maturity restrictions on the overall portfolio or on individual securities purchased by the fund.
The fund may purchase bonds of any credit quality and there are no overall limits on the funds investments that are unrated by any major credit rating agency or rated below investment-grade (BB or lower, or an equivalent rating) by a credit rating agency or T. Rowe Price. Investments in below investment-grade corporate bonds, also known as junk bonds, should be considered speculative.
The fund may sell holdings for a variety of reasons, such as to alter geographic or currency exposure, to adjust its average maturity, duration, or credit quality, or to shift assets into or out of higher-yielding securities.
Principal Risks As with any mutual fund, there is no guarantee that the fund will achieve its objective. The funds share price fluctuates, which means you could lose money by investing in the fund. The principal risks of investing in this fund are summarized as follows:
Active management risk The fund is subject to the risk that the investment advisers judgments about the attractiveness, value, or potential appreciation of the funds investments may prove to be incorrect. If the securities selected and strategies employed by the fund fail to produce the intended results, the fund could underperform other funds with similar objectives and investment strategies.
Foreign investing risk Investing in the securities of non-U.S. issuers involves special risks not typically associated with investing in U.S. securities. Foreign securities tend
Summary | 3 |
to be more volatile and less liquid than investments in U.S. securities and may lose value because of adverse political, social or economic developments overseas. In addition, foreign investments may be subject to regulatory and accounting standards that differ from those of the U.S.
Emerging markets risk The risks of foreign investing are heightened for securities of issuers in emerging market countries. Emerging market countries tend to have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. In addition to all of the risks of investing in foreign developed markets, emerging markets are more susceptible to governmental interference, local taxes being imposed on foreign investments, restrictions on gaining access to sales proceeds, and less liquid and efficient trading markets.
Currency risk Although the fund primarily invests in U.S. dollar-denominated bonds of emerging markets issuers, the fund may invest in securities issued in foreign currencies and is therefore subject to the risk that it could experience losses based solely on the weakness of those foreign currencies versus the U.S. dollar and changes in the exchange rates between such currencies and the U.S. dollar.
Credit risk This is the risk that an issuer of a debt security could suffer an adverse change in financial condition that results in a payment default, security downgrade, or inability to meet a financial obligation. The risk of default is much greater for emerging market bonds and securities rated as below investment-grade (junk bonds). The fund is exposed to greater credit risk than other bond funds because companies in emerging markets are usually not as strong financially and are more susceptible to economic downturns. Junk bonds should be considered speculative as they carry greater risks of default and erratic price swings due to real or perceived changes in the credit quality of the issuer.
Interest rate risk This risk refers to the chance that interest rates will increase, causing a decline in bond prices. (Bond prices and interest rates usually move in opposite directions.) Generally, securities with longer maturities and funds with longer weighted average maturities carry greater interest rate risk.
Liquidity risk This is the risk that the fund may not be able to sell a holding in a timely manner at a desired price.
Performance Because the fund commenced operations in 2012, there is no historical performance information shown here. Performance history will be presented after the fund has been in operation for one full calendar year.
Current performance information may be obtained by calling 1-800-225-5132.
Management
Investment Adviser T. Rowe Price Associates, Inc. (T. Rowe Price)
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Portfolio Manager | Title | Managed Fund Since | Joined Investment |
Michael J. Conelius | Chairman of Investment Advisory Committee | 2012 | 1988 |
Purchase and Sale of Fund Shares
The funds investment minimums generally are as follows (if you hold shares through a financial intermediary, the intermediary may impose different investment minimums):
Type of Account | Minimum | Minimum subsequent |
Individual retirement accounts, small business retirement plan accounts, Uniform Gifts to Minors Act or Uniform Transfers to Minors Act accounts, and Education Savings accounts | $1,000 | $100 |
All other accounts | 2,500 | 100 |
You may purchase, redeem, or exchange shares of the fund on any day the New York Stock Exchange is open for business by accessing your account online at troweprice.com, by calling 1-800-225-5132, or by written request. If you hold shares through a financial intermediary, you must purchase, redeem, and exchange shares through your intermediary.
Tax Information
The fund declares dividends daily and pays them on the first business day of each month. Any capital gains are declared and paid annually, usually in December. Distributions by the fund, whether or not you reinvest these amounts in additional fund shares, may be taxed as ordinary income or capital gains unless you invest through an individual retirement account, 401(k) plan, or other tax-deferred account. A redemption or exchange of fund shares may be taxable.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the fund through a broker-dealer or other financial intermediary, the fund and its related companies may pay the intermediary for the performance of administrative services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediarys website for more information on these payments.
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As a T. Rowe Price shareholder, you will want to know about the following policies and procedures that apply to the T. Rowe Price family of funds.
How and When Shares Are Priced
The share price, also called the net asset value, for the funds is calculated at the close of the New York Stock Exchange (normally 4 p.m. ET) each day that the exchange is open for business. To calculate the net asset value, the funds assets are valued and totaled; liabilities are subtracted; and the balance, called net assets, is divided by the number of shares outstanding. Market values are used to price portfolio holdings for which market quotations are readily available. Market values represent the prices at which securities actually trade or evaluations based on the judgment of the funds pricing services. If a market value for a security is not available or normal valuation procedures are deemed to be inappropriate, the fund will make a good faith effort to assign a fair value to the security by taking into account various factors that have been approved by the funds Board of Directors/Trustees. This value may differ from the value the fund receives upon sale of the securities. Amortized cost is used to price securities held by money funds and certain other debt securities held by a fund. Investments in other mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation.
Non-U.S. equity securities are valued on the basis of their most recent closing market prices at 4 p.m. ET except under the circumstances described below. Most foreign markets close before 4 p.m. ET. For securities primarily traded in the Far East, for example, the most recent closing prices may be as much as 15 hours old at 4 p.m. ET. If a fund determines that developments between the close of a foreign market and the close of the New York Stock Exchange will, in its judgment, materially affect the value of some or all of the funds securities, the fund will adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of 4 p.m. ET. In deciding whether to make these adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. The fund may also fair value certain securities or a group of securities in other situationsfor example, when a particular foreign market is closed but the fund is open. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value
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process, the fund routinely compares closing market prices, the next days opening prices in the same markets, and adjusted prices. The fund also evaluates a variety of factors when assigning fair values to private placements and other restricted securities. Other mutual funds may adjust the prices of their securities by different amounts.
The various ways you can buy, sell, and exchange shares are explained at the end of this prospectus and on the New Account form. These procedures may differ for institutional and employer-sponsored retirement accounts or if you hold your account through an intermediary.
How Your Purchase, Sale, or Exchange Price Is Determined
If your request is received by T. Rowe Price in correct form by the close of the New York Stock Exchange (normally 4 p.m. ET), your transaction will be priced at that business days net asset value. If your request is received by T. Rowe Price after the close of the New York Stock Exchange, your transaction will be priced at the next business days net asset value.
The funds generally do not accept orders that request a particular day or price for a transaction or any other special conditions.
Fund shares may be purchased through various third-party intermediaries, including banks, brokers, and investment advisers. Where authorized by a fund, orders will be priced at the net asset value next computed after receipt by the intermediary. Contact your intermediary for trade deadlines and the applicable policies for purchasing, selling, or exchanging your shares, as well as initial and subsequent investment minimums. The intermediary may charge a fee for its services.
When authorized by the fund, certain financial institutions or retirement plans purchasing fund shares on behalf of customers or plan participants through Financial Institution Services or Retirement Plan Services may place a purchase order unaccompanied by payment. Payment for these shares must be received by the time designated by the fund (not to exceed the period established for settlement under applicable regulations). If payment is not received by this time, the order may be canceled. The financial institution or retirement plan is responsible for any costs or losses incurred by the fund or T. Rowe Price if payment is delayed or not received.
Note: The time at which transactions and shares are priced and the time until which orders are accepted may be changed in case of an emergency or if the New York Stock Exchange closes at a time other than 4 p.m. ET. In the event of an emergency closing, a funds shareholders will receive the next share price calculated by the fund. There may be times when you are unable to contact us by telephone or access your account online due to extreme market activity, the unavailability of the T. Rowe Price website, or other circumstances. Should this occur, your order must still be placed and accepted by T. Rowe Price prior to the time the New York Stock Exchange closes to be priced at that business days net asset value. Under certain conditions, a money
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fund may accept and process purchase and redemption orders beyond the close of the New York Stock Exchange on days that the New York Stock Exchange closes early and does not reopen, and may accept orders on a business day that the New York Stock Exchange is unexpectedly closed.
How You Can Receive the Proceeds From a Sale
When filling out the New Account form, you may wish to give yourself the widest range of options for receiving proceeds from a sale.
If your request is received in correct form by T. Rowe Price on a business day prior to the close of the New York Stock Exchange, proceeds are usually sent on the next business day. Proceeds can be mailed to you by check or sent electronically to your bank account by Automated Clearing House transfer or bank wire. Automated Clearing House is an automated method of initiating payments from, and receiving payments in, your financial institution account. Proceeds sent by Automated Clearing House transfer are usually credited to your account the second business day after the sale. Proceeds sent by bank wire are usually credited to your account the next business day after the sale, but your financial institution may charge an incoming wire fee.
Exception Under certain circumstances, and when deemed to be in a funds best interest, your proceeds may not be sent for up to seven calendar days after we receive your redemption request. Under certain limited circumstances, the Board of Directors/Trustees of a money fund may elect to suspend redemptions and postpone payment of redemption proceeds in order to facilitate an orderly liquidation of the money fund.
If for some reason we cannot accept your request to sell shares, we will contact you.
Contingent Redemption Fee
Short-term trading can disrupt a funds investment program and create additional costs for long-term shareholders. For these reasons, certain T. Rowe Price funds, listed in the following table, assess a fee on redemptions (including exchanges out of a fund), which reduces the proceeds from such redemptions by the amounts indicated:
T. Rowe Price Funds With Redemption Fees | ||
Fund | Redemption fee | Holding period |
Africa & Middle East | 2% | 90 days or less |
Diversified Small-Cap Growth | 1% | 90 days or less |
Emerging Europe | 2% | 90 days or less |
Emerging Markets Bond | 2% | 90 days or less |
Emerging Markets Corporate Bond | 2% | 90 days or less |
Emerging Markets Local Currency Bond | 2% | 90 days or less |
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T. Rowe Price Funds With Redemption Fees | ||
Fund | Redemption fee | Holding period |
Emerging Markets Stock | 2% | 90 days or less |
Equity Index 500 | 0.5% | 90 days or less |
European Stock | 2% | 90 days or less |
Extended Equity Market Index | 0.5% | 90 days or less |
Floating Rate | 2% | 90 days or less |
Global Infrastructure | 2% | 90 days or less |
Global Large-Cap Stock | 2% | 90 days or less |
Global Real Estate | 2% | 90 days or less |
Global Stock | 2% | 90 days or less |
High Yield | 2% | 90 days or less |
International Bond | 2% | 90 days or less |
International Discovery | 2% | 90 days or less |
International Equity Index | 2% | 90 days or less |
International Growth & Income | 2% | 90 days or less |
International Stock | 2% | 90 days or less |
Japan | 2% | 90 days or less |
Latin America | 2% | 90 days or less |
New Asia | 2% | 90 days or less |
Overseas Stock | 2% | 90 days or less |
Real Assets | 2% | 90 days or less |
Real Estate | 1% | 90 days or less |
Small-Cap Value | 1% | 90 days or less |
Spectrum International | 2% | 90 days or less |
Tax-Efficient Equity | 1% | less than 365 days |
Tax-Free High Yield | 2% | 90 days or less |
Total Equity Market Index | 0.5% | 90 days or less |
U.S. Bond Enhanced Index | 0.5% | 90 days or less |
Redemption fees are paid to a fund to deter short-term trading, offset costs, and protect the funds long-term shareholders. Subject to the exceptions described on the following pages, all persons holding shares of a T. Rowe Price fund that imposes a redemption fee are subject to the fee, whether the person is holding shares directly with a T. Rowe Price fund; through a retirement plan for which T. Rowe Price serves as recordkeeper; or indirectly through an intermediary (such as a broker, bank, or investment adviser), recordkeeper for retirement plan participants, or other third party.
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Computation of Holding Period
When an investor sells shares of a fund that assesses a redemption fee, T. Rowe Price will use the first-in, first-out method to determine the holding period for the shares sold. Under this method, the date of redemption or exchange will be compared with the earliest purchase date of shares held in the account. The day after the date of your purchase is considered Day 1 for purposes of computing the holding period. For a fund with a 365-day holding period, a redemption fee will be charged on shares sold before the end of the required holding period. For funds with a 90-day holding period, a redemption fee will be charged on shares sold on or before the end of the required holding period. For example, if you redeem your shares on or before the 90th day from the date of purchase, you will be assessed the redemption fee. If you purchase shares through an intermediary, consult your intermediary to determine how the holding period will be applied.
Transactions Not Subject to Redemption Fees
The T. Rowe Price funds will not assess a redemption fee with respect to certain transactions. As of the date of this prospectus, the following shares of T. Rowe Price funds will not be subject to redemption fees:
· Shares redeemed through an automated, systematic withdrawal plan;
· Shares redeemed through or used to establish certain rebalancing, asset allocation, wrap, and advisory programs, as well as non-T. Rowe Price fund-of-funds products, if approved in writing by T. Rowe Price;
· Shares purchased through the reinvestment of dividends or capital gain distributions;*
· Shares converted from one share class to another share class of the same fund;*
· Shares redeemed automatically by a fund to pay fund fees or shareholder account fees (e.g., for failure to meet account minimums);
· Shares purchased by rollover or changes of account registration within the same fund;*
· Shares redeemed to return an excess contribution from a retirement account;
· Shares of T. Rowe Price funds purchased by another T. Rowe Price fund and shares purchased by discretionary accounts managed by T. Rowe Price or one of its affiliates (please note that other shareholders of the investing T. Rowe Price fund are still subject to the policy);
· Shares that are redeemed in-kind;
· Shares transferred to T. Rowe Price or a third-party intermediary acting as a service provider when the age of the shares cannot be determined systematically;* and
· Shares redeemed in retirement plans or other products that restrict trading to no more frequently than once per quarter, if approved in writing by T. Rowe Price.
* Subsequent exchanges of these shares into funds that assess redemption fees will subject such shares to the fee.
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Redemption Fees on Shares Held in Retirement Plans
If shares are held in a retirement plan, redemption fees generally will be assessed on shares redeemed by exchange only if they were originally purchased by exchange. However, redemption fees may apply to transactions other than exchanges depending on how shares of the plan are held at T. Rowe Price or how the fees are applied by your plans recordkeeper. To determine which of your transactions are subject to redemption fees, you should contact T. Rowe Price or your plan recordkeeper.
Omnibus Accounts
If your shares are held through an intermediary in an omnibus account, T. Rowe Price relies on the intermediary to assess the redemption fee on underlying shareholder accounts. T. Rowe Price seeks to identify intermediaries establishing omnibus accounts and to enter into agreements requiring the intermediary to assess the redemption fees. There are no assurances that T. Rowe Price will be successful in identifying all intermediaries or that the intermediaries will properly assess the fees.
Certain intermediaries may not apply the exemptions previously listed to the redemption fee policy; all redemptions by persons trading through such intermediaries may be subject to the fee. Certain intermediaries may exempt transactions not listed from redemption fees, if approved by T. Rowe Price. Persons redeeming shares through an intermediary should check with their respective intermediary to determine which transactions are subject to the fees.
Each fund has elected to be treated, and intends to qualify to be treated each year, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. In order to qualify, the fund must satisfy certain income, diversification, and distribution requirements. A regulated investment company is not subject to U.S. federal income tax at the portfolio level on income and gains from investments that are distributed to shareholders. However, if a fund were to fail to qualify as a regulated investment company, and was ineligible to or otherwise did not cure such failure, the result would be fund-level taxation and, consequently, a reduction in income available for distribution to the funds shareholders.
To the extent possible, all net investment income and realized capital gains are distributed to shareholders.
Dividends and Other Distributions
Dividend and capital gain distributions are reinvested in additional fund shares in your account unless you select another option. Reinvesting distributions results in compounding, which allows you to receive dividends and capital gain distributions on an increasing number of shares.
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Distributions not reinvested are paid by check or transmitted to your bank account via Automated Clearing House. If the U.S. Post Office cannot deliver your check, or if your check remains uncashed for six months, the fund reserves the right to reinvest your distribution check in your account at the net asset value on the day of the reinvestment and to reinvest all subsequent distributions in shares of the fund. Interest will not accrue on amounts represented by uncashed distributions or redemption checks.
The following table provides details on dividend payments:
Dividend Payment Schedule | |
Fund | Dividends |
Money funds | · Purchases received by T. Rowe Price by noon ET via wire begin to earn dividends on that day. Other shares normally begin to earn dividends on the business day after payment is received by T. Rowe Price. · Declared daily and paid on the first business day of each month. |
Bond funds | · Shares normally begin to earn dividends on the business day after payment is received by T. Rowe Price. · Declared daily and paid on the first business day of each month. |
These stock funds only: · Balanced · Dividend Growth · Equity Income · Equity Index 500 · Global Real Estate · Growth & Income · Personal Strategy Balanced · Personal Strategy Income · Real Estate | · Declared and paid quarterly, if any, in March, June, September, and December. · Must be a shareholder on the dividend record date. |
Other stock funds | · Declared and paid annually, if any, generally in December. · Must be a shareholder on the dividend record date. |
Retirement and Spectrum Funds: | |
· Retirement Income and | · Shares normally begin to earn dividends on the business day after payment is received by T. Rowe Price. · Declared daily and paid on the first business day of each month. |
· All others | · Declared and paid annually, if any, generally in December. · Must be a shareholder on the dividend record date. |
Bond or money fund shares will earn dividends through the date of redemption. Shares redeemed on a Friday or prior to a holiday (other than wire redemptions for money funds received before noon ET) will continue to earn dividends until the next business day. Generally, if you redeem all of your bond or money fund shares at any
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time during the month, you will also receive all dividends earned through the date of redemption in the same check. When you redeem only a portion of your bond or money fund shares, all dividends accrued on those shares will be reinvested, or paid in cash, on the next dividend payment date. The funds do not pay dividends in fractional cents. Any dividend amount earned for a particular day on all shares held that is one-half of one cent or greater (for example, $0.016) will be rounded up to the next whole cent ($0.02), and any amount that is less than one-half of one cent (for example, $0.014) will be rounded down to the nearest whole cent ($0.01). Please note that if the dividend payable on all shares held is less than one-half of one cent for a particular day, no dividend will be earned for that day.
If you purchase and sell your shares through an intermediary, consult your intermediary to determine when your shares begin and stop accruing dividends; the information previously described may vary.
Capital Gain Payments
A capital gain or loss is the difference between the purchase and sale price of a security. If a fund has net capital gains for the year (after subtracting any capital losses), they are usually declared and paid in December to shareholders of record on a specified date that month. If a second distribution is necessary, it is paid the following year.
Capital gain payments are not expected from money funds, which are managed to maintain a constant share price.
Tax Information
In most cases, you will be provided information for your tax filing needs no later than mid-February.
If you invest in the fund through a tax-deferred account, such as an individual retirement account, you will not be subject to tax on dividends and distributions from the fund or the sale of fund shares if those amounts remain in the tax-deferred account. You may receive a Form 1099-R or other Internal Revenue Service forms, as applicable, if any portion of the account is distributed to you.
If you invest in the fund through a taxable account, you generally will be subject to tax when:
· You sell fund shares, including an exchange from one fund to another.
· The fund makes dividend or capital gain distributions.
Additional information about the taxation of dividends for certain T. Rowe Price funds is listed below:
Tax-Free and Municipal Funds |
· Regular monthly dividends (including those from the state-specific tax-free funds) are expected to be exempt from federal income taxes. |
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Tax-Free and Municipal Funds |
· Exemption is not guaranteed, since the fund has the right under certain conditions to invest in nonexempt securities. |
· A fund may hold Build America Bonds, which were created by the American Recovery and Reinvestment Act of 2009, as well as other qualified tax credit bonds. Investments in these bonds will result in taxable interest income, although the federal income tax on such interest income may be fully or partially offset by the specified tax credits that are available to the bondholders. A fund may elect to pass through to the shareholders taxable interest income and any corresponding tax credits. Any available tax creditswhich are also included in federal taxable incomegenerally can be used to offset federal regular income tax and alternative minimum tax, but those tax credits generally are not refundable. |
· Tax-exempt dividends paid to Social Security recipients may increase the portion of benefits that is subject to tax. |
· For state-specific funds, the monthly dividends you receive are expected to be exempt from state and local income tax of that particular state. For other funds, a small portion of your income dividend may be exempt from state and local income taxes. |
· If a fund invests in certain private activity bonds that are not exempt from the alternative minimum tax, shareholders who are subject to the alternative minimum tax must include income generated by those bonds in their alternative minimum tax calculation. Private activity bonds issued in 2009 and 2010, and refunding bonds issued in 2009 and 2010 to refund private activity bonds that were issued from the beginning of 2004 to the end of 2008, are exempt from the alternative minimum tax. The portion of a funds income dividend that should be included in your alternative minimum tax calculation, if any, will be reported to you in January on Form 1099-INT. |
For individual shareholders,
a portion of ordinary dividends representing qualified dividend income received by the fund
may be subject to tax at the lower rate applicable to long-term capital gains, rather than ordinary income.
You may report it as qualified dividend income in computing your taxes, provided you have
held the fund shares on which the dividend was paid for more than 60 days during the
121-day period
beginning 60 days before the ex-dividend date. Ordinary dividends that do not qualify for this lower
rate are generally taxable at the investors marginal income tax rate. This includes the portion
of ordinary dividends derived from interest, short-term capital gains, distributions from nonqualified
foreign corporations, and dividends received by the fund from stocks that were on loan. Little, if any,
of the ordinary dividends paid by the Global Real Estate Fund, Real Estate Fund, or the bond and money
funds is expected to qualify for this lower rate.
For corporate shareholders, a portion of ordinary dividends may be eligible for the 70% deduction for dividends received by corporations to the extent the funds income consists of dividends paid by U.S. corporations. Little, if any, of the ordinary dividends paid by the international funds or the bond and money funds is expected to qualify for this deduction.
Beginning in 2013, a 3.8% Medicare contribution tax will be imposed on net investment income, including interest, dividends, and capital gains, of U.S. individuals with income exceeding $200,000 (or $250,000 if married filing jointly) and of estates and trusts.
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Taxes on Fund Redemptions
When you sell shares in any fund, you may realize a gain or loss. An exchange from one fund to another is also a sale for tax purposes.
We will make available to you Form 1099-B, if applicable, no later than mid-February, indicating the date and amount of each sale you made in the fund during the prior year. This information will also be reported to the Internal Revenue Service. For most new accounts or those opened by exchange in 1984 or later, we will provide you with the gain or loss on the shares you sold during the year based on the average cost single category method. You may calculate the cost basis using other methods acceptable to the Internal Revenue Service, such as specific identification.
For mutual fund shares acquired after 2011, new tax regulations
require us to
report the cost basis information to you and the Internal Revenue Service on
Form 1099-B
using a cost basis method selected by you or, in the absence of such selected method, our default method
if you acquire your shares directly from us. Our default method is average cost. If you acquire your
fund shares through an intermediary after 2011, you should check with your intermediary regarding the
applicable cost basis method. You should, however, note that the cost basis information reported to you
may not always be the same as what you should report on your tax return because the rules applicable
to the determination of cost basis on Form 1099-B may be different from the rules applicable to
the determination of cost basis for reporting on your tax return. Therefore, you should save your transaction
records to make sure the information reported on your tax return is accurate. To help you maintain accurate
records, we will make available to you a confirmation promptly following each transaction you make (except
for systematic purchases and systematic redemptions) and a year-end statement detailing all of your transactions
in each fund account during the year.
Taxes on Fund Distributions
We will make available to you, as applicable, no later than mid-February, a Form 1099-DIV, Form 1099-INT, or other Internal Revenue Service forms, as required, indicating the tax status of any income dividends, dividends exempt from federal income taxes, and capital gain distributions made to you. This information will be reported to the Internal Revenue Service. Taxable distributions are generally taxable to you in the year in which they are paid. Your bond or money fund dividends for each calendar year will include dividends accrued up to the first business day of the next calendar year. You will be sent any additional information you need to determine your taxes on fund distributions, such as the portion of your dividends, if any, that may be exempt from state and local income taxes. Dividends from tax-free funds are generally expected to be tax-exempt.
The tax treatment of a capital gain distribution is determined by how long the fund held the portfolio securities, not how long you held the shares in the fund. Short-term (one year or less) capital gain distributions are taxable at the same rate as
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ordinary income, and gains on securities held for more than one year are taxed at the lower rates applicable to long-term capital gains. If you realized a loss on the sale or exchange of fund shares that you held for six months or less, your short-term capital loss must be reclassified as a long-term capital loss to the extent of any long-term capital gain distributions received during the period you held the shares. If you realized a loss on the sale or exchange of fund shares held for six months or less, your capital loss is reduced by the tax-exempt dividends, if any, received on those shares. This reduction, however, does not apply to fund shares acquired after December 22, 2010, if the fund declares tax-exempt dividends on a daily basis in an amount equal to at least 90% of its net tax-exempt interest and distributes such dividends at least monthly. For funds investing in foreign securities, distributions resulting from the sale of certain foreign currencies, currency contracts, and the foreign currency portion of gains on debt securities are taxed as ordinary income. Net foreign currency losses may cause monthly or quarterly dividends to be reclassified as a return of capital.
If the fund qualifies and elects to pass through nonrefundable foreign income taxes paid to foreign governments during the year, your portion of such taxes will be reported to you as taxable income. However, you may be able to claim an offsetting credit or deduction on your tax return for those amounts. There can be no assurance that a fund will meet the requirements to pass through foreign income taxes paid.
Taxable distributions are subject to tax whether reinvested in additional shares or received in cash.
If a fund holds Build America Bonds or other qualified tax credit bonds and elects to pass through the corresponding interest income and any available tax credits, you will need to report both the interest income and any such tax credits as taxable income. You may be able to claim the tax credits on your federal tax return as an offset to your income tax (including alternative minimum tax) liability, but the tax credits generally are not refundable. There is no assurance, however, that a fund will elect to pass through the income and credits.
The following table provides additional details on distributions for certain funds:
Taxes on Fund Distributions |
Tax-Free and Municipal Funds |
· Gains realized on the sale of market discount bonds with maturities beyond one year may be treated as ordinary income and cannot be offset by other capital losses. · Payments received or gains realized on certain derivative transactions may result in taxable ordinary income or capital gain. · To the extent the fund makes such investments, the likelihood of a taxable distribution will be increased. |
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Taxes on Fund Distributions |
Inflation Protected Bond Fund |
· Inflation adjustments on Treasury inflation protected securities that exceed deflation adjustments for the year will be distributed as a short-term capital gain resulting in ordinary income. · In computing the distribution amount, the fund cannot reduce inflation adjustments by short- or long-term capital losses from the sales of securities. · Net deflation adjustments for a year may result in all or a portion of dividends paid earlier in the year being treated as a return of capital. |
Retirement and Spectrum Funds |
· Distributions by the underlying funds and changes in asset allocations may result in taxable distributions of ordinary income or capital gains. |
Tax Consequences of Hedging
Entering into certain options, futures, swaps, and forward foreign exchange contracts and transactions may result in the application of the mark-to-market and straddle provisions of the Internal Revenue Code. These provisions could result in a fund being required to distribute gains on such transactions even though it did not close the contracts during the year or receive cash to pay such distributions. The fund may not be able to reduce its distributions for losses on such transactions to the extent of unrealized gains in offsetting positions.
Tax Effect of Buying Shares Before an Income Dividend or Capital Gain Distribution
If you buy shares shortly before or on the record datethe date that establishes you as the person to receive the upcoming distributionyou may receive a portion of the money you just invested in the form of a taxable distribution. Therefore, you may wish to find out a funds record date before investing. In addition, a funds share price may, at any time, reflect undistributed capital gains or income and unrealized appreciation, which may result in future taxable distributions. Such distributions can occur even in a year when the fund has a negative return.
Following these procedures helps assure timely and accurate transactions.
Purchase Conditions
Nonpayment If you pay with a check or Automated Clearing House transfer that does not clear or if your payment is not received in a timely manner, your purchase may be canceled. You will be responsible for any losses or expenses incurred by the fund or transfer agent, and the fund can redeem shares you own in this or another identically registered T. Rowe Price account as reimbursement. The funds and their agents have the right to reject or cancel any purchase, exchange, or redemption due to nonpayment.
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U.S. Dollars All purchases must be paid for in U.S. dollars; checks must be drawn on U.S. banks.
Sale (Redemption) Conditions
Holds on Immediate Redemptions: 10-Day Hold If you sell shares that you just purchased and paid for by check or Automated Clearing House transfer, the fund will process your redemption but generally will delay sending you the proceeds for up to 10 calendar days to allow the check or transfer to clear. If, during the clearing period, we receive a check drawn against your newly purchased shares, it will be returned marked uncollected. (The 10-day hold does not apply to purchases paid for by bank wire or automatic purchases through your paycheck.)
Telephone and Online Account Transactions You may access your account and conduct transactions using the telephone or the T. Rowe Price website. The T. Rowe Price funds and their agents use reasonable procedures to verify the identity of the shareholder. If these procedures are followed, the funds and their agents are not liable for any losses that may occur from acting on unauthorized instructions. A confirmation is sent promptly after a transaction. Please review it carefully and contact T. Rowe Price immediately about any transaction you believe to be unauthorized. Telephone conversations are recorded.
Large Redemptions Large redemptions can adversely affect a portfolio managers ability to implement a funds investment strategy by causing the premature sale of securities that would otherwise be held longer. Therefore, the fund reserves the right (without prior notice) to pay all or part of redemption proceeds with securities from the funds portfolio rather than in cash (redemption in-kind). If this occurs, the securities will be selected by the fund in its absolute discretion, and the redeeming shareholder or account will be responsible for disposing of the securities and bearing any associated costs.
Excessive and Short-Term Trading Policy
Excessive transactions and short-term trading can be harmful to fund shareholders in various ways, such as disrupting a funds portfolio management strategies, increasing a funds trading costs, and negatively affecting its performance. Short-term traders in funds that invest in foreign securities may seek to take advantage of developments overseas that could lead to an anticipated difference between the price of the funds shares and price movements in foreign markets. While there is no assurance that T. Rowe Price can prevent all excessive and short-term trading, the Boards of Directors/Trustees of the T. Rowe Price funds have adopted the following trading limits that are designed to deter such activity and protect the funds shareholders. The funds may revise their trading limits and procedures at any time as the Boards of Directors/Trustees deem necessary or appropriate to better detect short-term trading that may adversely affect the funds, to comply with applicable regulatory requirements, or to impose additional or alternative restrictions.
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Subject to certain exceptions, each T. Rowe Price fund restricts a shareholders purchases (including through exchanges) into a fund account for a period of 30 calendar days after the shareholder has redeemed or exchanged out of that same fund account (the 30-Day Purchase Block). The calendar day after the date of redemption is considered Day 1 for purposes of computing the period before another purchase may be made.
General Exceptions As of the date of this prospectus, the following types of transactions generally are not subject to the 30-Day Purchase Block:
· Shares purchased or redeemed in money market funds;
· Shares purchased or redeemed through a systematic purchase or withdrawal plan;
· Checkwriting redemptions from bond and money funds;
· Shares purchased through the reinvestment of dividends or capital gain distributions;
· Shares redeemed by the fund to pay fund fees or shareholder account fees;
· Transfers and changes of account registration within the same fund;
· Shares purchased by asset transfer or direct rollover;
· Shares purchased or redeemed through IRA conversions and recharacterizations;
· Shares redeemed to return an excess contribution from a retirement account;
· Transactions in Section 529 college savings plans;
· Shares converted from one share class to another share class in the same fund; and
· Shares of T. Rowe Price funds that are purchased by another T. Rowe Price fund, including shares purchased by T. Rowe Price fund-of-funds products, and shares purchased by discretionary accounts managed by T. Rowe Price or one of its affiliates (please note that shareholders of the investing T. Rowe Price fund are still subject to the policy).
Transactions in certain rebalancing, asset allocation, wrap programs, and other advisory programs, as well as non-T. Rowe Price fund-of-funds products, may also be exempt from the 30-Day Purchase Block, subject to prior written approval by T. Rowe Price.
In addition to restricting transactions in accordance with the 30-Day Purchase Block, T. Rowe Price may, in its discretion, reject (or instruct an intermediary to reject) any purchase or exchange into a fund from a person (which includes individuals and entities) whose trading activity could disrupt the management of the fund or dilute the value of the funds shares, including trading by persons acting collectively (e.g., following the advice of a newsletter). Such persons may be barred, without prior notice, from further purchases of T. Rowe Price funds for a period longer than 30 calendar days or permanently.
Intermediary Accounts Intermediaries may maintain their underlying accounts directly with the fund, although they often establish an omnibus account (one account with the fund that represents multiple underlying shareholder accounts) on behalf of their customers. When intermediaries establish omnibus accounts in the
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T. Rowe Price funds, T. Rowe Price is not able to monitor the trading activity of the underlying shareholders. However, T. Rowe Price monitors aggregate trading activity at the intermediary (omnibus account) level in an attempt to identify activity that indicates potential excessive or short-term trading. If it detects suspicious trading activity, T. Rowe Price contacts the intermediary and may request personal identifying information and transaction histories for some or all underlying shareholders (including plan participants, if applicable). If T. Rowe Price believes that excessive or short-term trading has occurred, it will instruct the intermediary to impose restrictions to discourage such practices and take appropriate action with respect to the underlying shareholder, including restricting purchases for 30 calendar days or longer. There is no assurance that T. Rowe Price will be able to properly enforce its excessive trading policies for omnibus accounts. Because T. Rowe Price generally relies on intermediaries to provide information and impose restrictions for omnibus accounts, its ability to monitor and deter excessive trading will be dependent upon the intermediaries timely performance of their responsibilities.
T. Rowe Price may allow an intermediary or other third party to maintain restrictions on trading in the T. Rowe Price funds that differ from the 30-Day Purchase Block. An alternative excessive trading policy would be acceptable to T. Rowe Price if it believes that the policy would provide sufficient protection to the T. Rowe Price funds and their shareholders that is consistent with the excessive trading policy adopted by the funds Boards of Directors/Trustees.
If you invest in T. Rowe Price funds through an intermediary, you should review that firms materials carefully or consult with the intermediary directly to determine the trading policy that will apply to your trades in the funds and any other rules or conditions on transactions that may apply. If T. Rowe Price is unable to identify a transaction placed through an intermediary as exempt from the excessive trading policy, the 30-Day Purchase Block may apply.
Retirement Plan Accounts If shares are held in a retirement plan, generally
the
30-Day Purchase Block applies only to shares redeemed by a participant-directed exchange to another
fund. However, the 30-Day Purchase Block may apply to transactions other than exchanges depending on
how shares of the plan are held at T. Rowe Price or the excessive trading policy applied by your
plans recordkeeper. An alternative excessive trading policy may apply to the T. Rowe Price
funds where a retirement plan has its own policy deemed acceptable to T. Rowe Price. You should
contact T. Rowe Price or your plan recordkeeper to determine which of your transactions are subject
to the funds 30-Day Purchase Block or an alternative policy.
There is no guarantee that T. Rowe Price will be able to identify or prevent all excessive or short-term trades or trading practices.
Keeping Your Account Open
Due to the relatively high cost to a fund of maintaining small accounts, we ask you to maintain an account balance of at least $1,000 ($10,000 for Summit Funds). If, for
T. Rowe Price | 20 |
any reason, your balance is below this amount for three months or longer, we have the right to redeem your account at the then-current net asset value after giving you 60 days to increase your balance. This could result in a taxable gain.
Signature Guarantees
A Medallion signature guarantee is designed to protect you and the T. Rowe Price funds from fraud by verifying your signature.
You may need to have your signature guaranteed in certain situations, such as:
· Written requests: (1) to redeem over $100,000 or (2) to wire redemption proceeds when prior bank account authorization is not on file.
· Remitting redemption proceeds to any person, address, or bank account not on record.
· Transferring redemption proceeds to a T. Rowe Price fund account with a different registration (name or ownership) from yours.
· Establishing certain services after the account is opened.
The signature guarantee must be obtained from a financial institution that is a participant in a Medallion signature guarantee program. You can obtain a Medallion signature guarantee from most banks, savings institutions, broker-dealers, and other guarantors acceptable to T. Rowe Price. When obtaining a Medallion signature guarantee, please discuss with the guarantor the dollar amount of your proposed transaction. It is important that the level of coverage provided by the guarantors stamp covers the dollar amount of the transaction or it may be rejected. We cannot accept guarantees from notaries public or organizations that do not provide reimbursement in the case of fraud.
In an effort to help offset the disproportionately high costs incurred by the funds in connection with servicing lower-balance accounts, an annual $20 account service fee (paid to T. Rowe Price Services, Inc., or one of its affiliates) is charged to certain fund accounts with a balance below $10,000. The determination of whether a fund account is subject to the account service fee is based on account balances and services selected for accounts as of the last business day of August. The fee will be charged to an account with a balance below $10,000 for any reason, including market fluctuation and recent redemptions. The fee, which is automatically deducted from an account by redeeming fund shares, is typically charged to accounts in early September each calendar year.
The account service fee generally does not apply to fund accounts that are held through an intermediary, participant accounts in employer-sponsored retirement plans for which T. Rowe Price Retirement Plan Services provides recordkeeping
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services, or money funds that are used as a T. Rowe Price Brokerage sweep account. Regardless of a particular fund accounts balance on the last business day of August, the account service fee is automatically waived for accounts that satisfy any of the following conditions:
· Any accounts for which the shareholder has elected to receive electronic delivery of all of the following: account statements, transaction confirmations, and prospectuses and shareholder reports;
· Any accounts of a shareholder with at least $50,000 in total assets with T. Rowe Price (for this purpose, total assets includes investments in T. Rowe Price mutual funds, except for those held through a retirement plan for which T. Rowe Price Retirement Plan Services provides recordkeeping services; T. Rowe Price Brokerage; and T. Rowe Price variable annuities); or
· Any accounts of a shareholder who is a T. Rowe Price Preferred Services, Personal Services, or Enhanced Personal Services client (enrollment in these programs generally requires T. Rowe Price assets of at least $100,000visit troweprice.com or call 1-800-537-1098 for more information).
T. Rowe Price reserves the right to authorize additional waivers for other types of accounts or to modify the conditions for assessment of the account service fee. Fund shares held in a T. Rowe Price individual retirement account, Education Savings Account, or small business retirement plan account (including certain 403(b) plan accounts) are subject to the account service fee and may be subject to additional administrative fees when distributing all fund shares from such accounts.
More About the Fund | 3 | |
How is the fund organized?
T. Rowe Price International Funds, Inc. (the corporation) was incorporated in Maryland in 1979. Currently, the corporation consists of 18 series, each representing a separate pool of assets with different objectives and investment policies. Each is an open-end management investment company, or mutual fund. Mutual funds pool money received from shareholders of each class into a single portfolio and invest it to try to achieve specified objectives.
What is meant by shares?
As with all mutual funds, investors purchase shares when they put money in a fund. These shares are part of a funds authorized capital stock, but share certificates are not issued.
Each share and fractional share entitles the shareholder to:
· Receive a proportional interest in income and capital gain distributions.
· Cast one vote per share on certain fund matters, including the election of fund directors/trustees, changes in fundamental policies, or approval of changes in the funds management contract.
Do T. Rowe Price funds have annual shareholder meetings?
The funds are not required to hold annual meetings and, to avoid unnecessary costs to fund shareholders, do not do so except when certain matters, such as a change in fundamental policies, must be decided. In addition, shareholders representing at least 10% of all eligible votes may call a special meeting for the purpose of voting on the removal of any fund director or trustee. If a meeting is held and you cannot attend, you can vote by proxy. Before the meeting, the fund will send or make available to you proxy materials that explain the issues to be decided and include instructions on voting by mail or telephone or on the Internet.
Who runs the fund?
General Oversight
The fund is governed by a Board of Directors that meets regularly to review fund investments, performance, expenses, and other business affairs. The Board elects the funds officers. At least 75% of Board members are independent of T. Rowe Price and its affiliates.
All decisions regarding the purchase and sale of fund investments are made by T. Rowe Pricespecifically by the funds portfolio manager.
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Investment Adviser
T. Rowe Price is the funds investment adviser and oversees the selection of the funds investments and management of the funds portfolio. T. Rowe Price is a SEC-registered investment adviser that provides investment management services to individual and institutional investors, and sponsors and serves as adviser and sub-adviser to registered investment companies, institutional separate accounts, and common trust funds. The address for T. Rowe Price is 100 East Pratt Street, Baltimore, Maryland 21202. As of December 31, 2011, T. Rowe Price and its affiliates (the Firm) managed approximately $489 billion for more than 11 million individual and institutional investor accounts.
Portfolio Management
T. Rowe Price has established an Investment Advisory Committee with respect to the fund. The committee chairman has day-to-day responsibility for managing the funds portfolio and works with the committee in developing and executing the funds investment program. The members of the committee are as follows: Michael J. Conelius, Chairman, Carolyn Hoi Che Chu, Bridget A. Ebner, Ian D. Kelson, Christopher C. Loop, and Christopher J. Rothery. The following information describes the chairmans experience during the past five years and provides the year that the chairman first joined the Firm. Mr. Conelius has been chairman since the funds inception in 2012. He joined the Firm in 1988 and his investment experience dates from that time. He has served as a portfolio manager with the Firm throughout the past five years. The Statement of Additional Information provides additional information about the portfolio managers compensation, other accounts managed by the portfolio manager, and the portfolio managers ownership of fund shares.
The Management Fee
This fee has two partsan individual fund fee, which reflects a funds particular characteristics, and a group fee. The group fee, which is designed to reflect the benefits of the shared resources of the T. Rowe Price investment management complex, is calculated daily based on the combined net assets of all T. Rowe Price funds (except the Spectrum Funds, Retirement Funds, TRP Reserve Investment Funds, and any index or private label mutual funds). The group fee schedule (in the following table) is graduated, declining as the asset total rises, so shareholders benefit from the overall growth in mutual fund assets.
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Group Fee Schedule
0.334%* | First $50 billion |
0.305% | Next $30 billion |
0.300% | Next $40 billion |
0.295% | Next $40 billion |
0.290% | Next $60 billion |
0.285% | Next $80 billion |
0.280% | Thereafter |
* Represents a blended group fee rate containing various breakpoints.
The funds group fee is determined by applying the group fee rate to the funds average daily net assets. On December 31, 2011, the annual group fee rate was 0.30%. The individual fund fee, also applied to the funds average daily net assets, is 0.50%.
The expenses shown in the fee table in Section 1 are generally based on a funds prior fiscal year. In periods of market volatility, assets may decline significantly, causing total annual fund operating expenses to become higher than the numbers shown in the fee table.
A discussion about the factors considered by the Board and its conclusions in approving the funds investment management contract with T. Rowe Price will appear in the funds semiannual report to shareholders for the period ended June 30.
Fund Operations and Shareholder Services
T. Rowe Price provides accounting services to the T. Rowe Price funds. T. Rowe Price Services, Inc., acts as the transfer and dividend disbursing agent and provides shareholder and administrative services to the funds. These companies receive compensation from the funds for their services. All such fees are included in the fees and expenses table under Other expenses and in the funds financial statements.
For purposes of determining whether a particular country is considered a developed market or an emerging market, the fund uses the designation set forth by MSCI Barra, a third-party provider of benchmark indexes and data services for institutions worldwide. In determining the country classification for a particular security, the fund uses the country assigned to the security by MSCI Barra or another unaffiliated third-party data provider.
The fund focuses its investments on bonds issued by emerging markets corporate issuers. Security selection relies heavily on research, which analyzes political and economic trends as well as the creditworthiness of particular issuers. This in-depth
More About the Fund | 25 |
analysis seeks to identify shifts in country fundamentals, and considers the risk adjusted attractiveness of various emerging market countries.
Buying foreign bonds can be difficult and costly for the individual investor, and gaining access to many foreign markets can be complicated. Few investors have the time, the expertise, or the resources to evaluate foreign markets effectively on their own. The professional management, broad diversification, and relative simplicity of mutual funds make them an attractive, low-cost vehicle for this type of investing.
Interest rates vary from country to country depending on local economic conditions and monetary and fiscal policies. By investing in foreign bond markets, investors can benefit from potentially higher yields than U.S. bond markets provide. Therefore, diversifying internationally across various countries can help reduce portfolio volatility and smooth out returns.
As with any mutual fund, there is no guarantee the fund will achieve its objective. The funds share price fluctuates, which means you could lose money in the fund. Funds that invest overseas generally carry more risk than funds that invest strictly in U.S. assets. Some particular risks affecting the fund include the following:
Currency risk This is the risk of a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that foreign currency. The overall impact on a funds holdings can be significant, unpredictable, and long-lasting depending on the currencies represented in the portfolio, how each currency appreciates or depreciates in relation to the U.S. dollar, and whether currency positions are hedged. Foreign currency exchange rates may fluctuate significantly over short periods of time, particularly with respect to emerging markets currencies. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign governments or central banks, or by currency controls or political developments. Although bonds held by the fund may be denominated in U.S. dollars to improve their marketability, this does not protect them from substantial price declines in the face of political and economic turmoil. Currency trends are unpredictable, and to the extent the fund purchases and sells currencies, it will also be subject to the risk that its trading strategies, including efforts at hedging, will not succeed. Furthermore, hedging and trading costs can be significant and reduce fund net asset value, and many emerging market currencies cannot be effectively hedged.
Other risks of foreign investing Risks can result from varying stages of economic and political development, differing regulatory environments, trading days and accounting standards, uncertain tax laws, and higher transaction costs of non-U.S. markets. Investments outside the United States could be subject to governmental actions such as capital or currency controls, nationalization of a company or industry, expropriation of assets, or imposition of high taxes. A trading market may close without warning for extended time periods, preventing a fund from buying or selling securities in that market.
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Emerging markets risk Investments in emerging markets, which include Africa, parts of Europe and much of Asia, the Middle East, and Central and South America, are subject to the risk of abrupt and severe price declines. The economic and political structures of emerging market countries, in most cases, do not compare favorably with the U.S. or other developed countries in terms of wealth and stability, and their financial markets often lack liquidity. These economies are less developed and can be overly reliant on particular industries and more vulnerable to the ebb and flow of international trade, trade barriers, and other protectionist or retaliatory measures. Certain countries have legacies and periodic episodes of hyperinflation and currency devaluations, particularly Russia and many Latin American nations, and more recently many Asian countries. Governments in many emerging market countries participate to a significant degree in their economies and securities markets. Foreign investments may be restricted and subject to greater government control, including repatriation of sales proceeds. Some countries have histories of instability and upheaval that could cause their governments to act in a detrimental or hostile manner toward private enterprise or foreign investment. Investments in countries or regions that have recently begun moving away from central planning and state-owned industries toward free markets should be regarded as speculative.
While some countries have made progress in economic growth, liberalization, fiscal discipline, and political and social stability, there is no assurance these trends will continue. Significant risks, such as war and terrorism, currently affect some emerging market countries. Fund performance will likely be hurt by exposure to nations in the midst of hyperinflation, currency devaluation, trade disagreements, sudden political upheaval, or interventionist government policies. The volatility of emerging markets may be heightened by the actions (such as significant buying or selling) of a few major investors. For example, substantial decreases in cash flows of mutual funds investing in these markets could significantly affect local securities prices and, therefore, cause fund share prices to decline.
All of these factors make investing in such countries significantly riskier than in other countries and any one of these could cause a funds share price to decline.
Credit risk This is the chance that an issuer of a debt security held by a fund will default (fail to make scheduled payments), potentially reducing the funds income and share price. This risk is increased when a portfolio security is downgraded or the perceived creditworthiness of an issuer or counterparty deteriorates. The risk of default is much greater for emerging market bonds and securities rated as below investment-grade.
Companies and governments issuing lower-rated bonds are not as strong financially as those with higher credit ratings, and their bonds are often viewed as speculative investments. Such issuers are more vulnerable to real or perceived business setbacks and to changes in the economy, such as a recession, that might impair their ability to make timely interest and principal payments. Certain emerging market governments and corporations have in the past defaulted on payment of interest and principal on
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debt they have issued. As a result, your portfolio managers rely heavily on proprietary T. Rowe Price and T. Rowe Price International research when selecting these investments.
Liquidity risk This is the risk that a fund may not be able to sell a holding in a timely manner at a desired price. Sectors of the bond market can experience sudden downturns in trading activity. During periods of reduced market liquidity, the spread between the price at which a security can be bought and the price at which it can be sold can widen, and the fund may not be able to sell a holding readily at a price that reflects what the fund believes it should be worth. Less liquid securities can also become more difficult to value.
Emerging market bonds are generally less liquid than higher-quality bonds issued by companies and governments in developed countries. Consequently, large purchases or sales of certain high-yield, emerging market debt issues may cause significant changes in their prices. Because many of these bonds do not trade frequently, when they do trade, their prices may be substantially higher or lower than had been expected. A lack of liquidity also means that more subjectivity will be used in establishing the fair value of the securities.
Interest rate risk This is the risk that interest rates will increase, causing a decline in bond prices. (Bond prices and interest rates usually move in opposite directions.) Prices fall because the bonds in the funds portfolio become less attractive to other investors when securities with higher yields become available. Generally, the longer the maturity of a security or the longer a bond funds weighted average maturity, the greater its interest rate risk. Because the fund may invest in debt securities of any maturity, it carries more interest rate risk than a fund that invests in shorter-term securities.
Other factors The major factor influencing prices of high-quality bonds is changes in interest rate levels, but this is only one of several factors affecting prices of lower-quality bonds. Because the credit quality of the issuer is lower, such bonds are more sensitive to developments affecting the issuers underlying fundamentals (for example, changes in financial condition or a particular countrys general economy). In addition, the entire bond market in an emerging market can experience sudden and sharp price swings due to a variety of factors, including changes in economic forecasts, stock market activity, large or sustained sales by institutional investors, a high-profile default, a political upheaval of some kind, or just a change in the markets psychology. This type of volatility is usually associated more with stocks than bonds, but investors in lower-quality bonds should also anticipate it.
Since mutual funds can be a major source of demand in certain markets, substantial cash flows into and out of these funds can affect high-yield and emerging market bond prices. If, for example, a significant number of funds were to sell bonds to meet shareholder redemptions, both bond prices and a funds share price could fall more than underlying fundamentals might justify.
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Efforts to reduce risk Consistent with the funds objective, the portfolio manager uses various tools to try to reduce risk and increase total return, including:
· Thorough credit research by our own analysts.
· Analysis of industry, country, and regional fundamentals.
· Adjusting fund duration to try to reduce the drop in the funds price when interest rates rise or to benefit from the rise in price when rates fall.
While most assets will be invested in emerging market corporate bonds, other strategies may be employed that are not considered part of the funds principal investment strategies. Such investments may include emerging market sovereign bonds and, to a limited extent, certain types of derivatives that are consistent with the funds overall investment program. For example, the fund may occasionally use forward currency exchange contracts, credit default swaps, or futures. Forward currency exchange contracts would typically be used to settle trades in a foreign currency, although they could be used to help protect the funds holdings from unfavorable changes in currency exchange rates. Credit default swaps would typically be used to protect the value of certain portfolio holdings or to manage the funds overall exposure to changes in credit quality. Futures would typically be used to manage the funds interest rate exposure or as a tool to help manage cash flows into and out of the fund. Forward currency exchange contracts involve the risk that currency movements will not be accurately predicted, credit default swaps expose the fund to the risks that anticipated changes in the creditworthiness of an issuer or the likelihood of a particular credit event will not be accurately predicted, and futures involve the risk that expected changes in interest rate movements will not be accurately predicted.
A derivative involves risks different from, and possibly greater than, the risks associated with investing directly in the assets on which the derivative is based. Derivatives can be highly volatile, illiquid, and difficult to value, and changes in the value of a derivative may not properly correlate with changes in the value of the underlying asset, reference rate, or index. A fund could be exposed to significant losses if it is unable to close a derivatives position due to the lack of a liquid secondary trading market. Derivatives involve the risk that a counterparty to the derivatives agreement will fail to make required payments or comply with the terms of the agreement. There is also the possibility that limitations or trading restrictions may be imposed by an exchange or government regulation, which could adversely impact the value and liquidity of a derivatives contract subject to such regulation.
Recent legislation calls for a new regulatory framework for the derivatives markets. Although various rules have been proposed, the extent and impact of new regulations are not certain and it is not yet known when such rules may be adopted. New regulations may make the use of derivatives by funds more costly, may limit the availability of certain types of derivatives, and may otherwise adversely affect the value or performance of derivatives used by funds.
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The Statement of Additional Information contains more detailed information about the fund and its investments, operations, and expenses.
This section takes a detailed look at some of the types of fund securities and the various kinds of investment practices that may be used in day-to-day portfolio management. Fund investments are subject to further restrictions and risks described in the Statement of Additional Information.
Shareholder approval is required to substantively change fund objectives. Shareholder approval is also required to change certain investment restrictions noted in the following section as fundamental policies. Portfolio managers also follow certain operating policies that can be changed without shareholder approval. Shareholders will receive at least 60 days prior notice of a change in the policy requiring the fund to normally invest at least 80% of its net assets in corporate bonds of issuers in emerging market countries.
Fund holdings of certain kinds of investments cannot exceed maximum percentages of total assets, which are set forth in this prospectus. For instance, fund investments in certain derivatives are limited to 10% of total assets. While these restrictions provide a useful level of detail about fund investments, investors should not view them as an accurate gauge of the potential risk of such investments. For example, in a given period, a 5% investment in derivatives could have significantly more of an impact on a funds share price than its weighting in the portfolio. The net effect of a particular investment depends on its volatility and the size of its overall return in relation to the performance of all other fund investments.
Certain investment restrictions, such as a required minimum or maximum investment in a particular type of security, are measured at the time a fund purchases a security. The status, market value, maturity, credit quality, or other characteristics of a funds securities may change after they are purchased, and this may cause the amount of a funds assets invested in such securities to exceed the stated maximum restriction or fall below the stated minimum restriction. If any of these changes occur, it would not be considered a violation of the investment restriction and will not require the sale of an investment if it was proper at the time it was made (this exception does not apply to a funds borrowing policy). However, purchases by a fund during the time it is above or below the stated percentage restriction would be made in compliance with applicable restrictions.
Changes in fund holdings, fund performance, and the contribution of various investments are discussed in the shareholder reports.
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Portfolio managers have considerable discretion in choosing investment strategies and selecting securities they believe will help achieve fund objectives.
Types of Portfolio Securities
In seeking to meet its investment objective, fund investments may be made in any type of security or instrument (including certain potentially high-risk derivatives described in this section) whose investment characteristics are consistent with its investment program. The following pages describe various types of fund holdings and investment management practices.
Diversification As a fundamental policy, the fund will not purchase a security if, as a result, with respect to 75% of its total assets, more than 5% of the funds total assets would be invested in securities of a single issuer or more than 10% of the outstanding voting securities of the issuer would be held by the fund. These limitations do not apply to the funds purchase of securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities.
Debt Securities
The funds investments may be in fixed-rate and floating rate debt securities and may include, but shall not be limited to: (1) debt obligations issued or guaranteed by: (a) a foreign sovereign government or one of its agencies, authorities, instrumentalities, or political subdivisions, including a foreign state, province, or municipality, and (b) supranational organizations such as the World Bank, Asian Development Bank, European Investment Bank, and European Economic Community; (2) debt obligations: (a) of foreign banks and bank holding companies, and (b) of domestic banks and corporations issued in non-U.S. dollar denominations; and (3) foreign corporate debt securities, asset-backed securities, and commercial paper. Such securities may take a variety of forms including those issued in the local currency of the issuer, U.S. dollar-denominated bonds, Eurobonds, and Euro-denominated bonds. Normally, the fund will invest substantially all of its assets in bonds issued by emerging markets corporations. The fund may from time to time purchase securities on a when-issued basis, invest in repurchase agreements, and purchase bonds convertible into equities.
Below Investment-Grade Bonds The price and yield of lower-quality (high yield, high-risk) bonds, commonly referred to as junk bonds and below investment-grade emerging market bonds, can be expected to fluctuate more than the price and yield of higher-quality bonds. Investment-grade bonds are those rated from the highest quality (AAA or equivalent) to medium quality (BBB or equivalent), and below investment-grade bonds are those rated BB (or equivalent) and lower. Below investment-grade bonds are considered speculative with respect to the issuers continuing ability to meet principal and interest payments since their issuers are more vulnerable to financial setbacks and recession than more creditworthy issuers. Even BBB rated bonds may have speculative elements as well. The values of below investment-grade bonds often fluctuate more in response to political, regulatory, or
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economic developments than higher quality bonds. Successful investment in lower-medium- and low-quality bonds involves greater investment risk and is highly dependent on careful credit analysis.
Operating policy There is no limit on the funds investments in debt securities that are rated below investment-grade.
While the fund intends to invest primarily in debt securities, it may invest in convertible bonds or equity securities. While some countries or companies may be regarded as favorable investments, pure bond opportunities may be unattractive or limited due to insufficient supply, or legal or technical restrictions. In such cases, the fund may consider equity securities or convertible bonds to gain exposure to such markets.
Preferred Stocks
Stocks represent shares of ownership in a company. Generally, preferred stock has a specified dividend and ranks after bonds and before common stocks in its claim on income for dividend payments and on assets should the company be liquidated. After other claims are satisfied, common stockholders participate in company profits on a pro-rata basis; profits may be paid out in dividends or reinvested in the company to help it grow. Increases and decreases in earnings are usually reflected in a companys stock price, so common stocks generally have the greatest appreciation and depreciation potential of all corporate securities. Unlike common stock, preferred stock does not ordinarily carry voting rights. While most preferred stocks pay a dividend, a fund may decide to purchase preferred stock where the issuer has omitted, or is in danger of omitting, payment of its dividend.
Convertible Securities and Warrants
Investments may be made in debt or preferred equity securities that are convertible into, or exchangeable for, equity securities at specified times in the future and according to a certain exchange ratio. Convertible bonds are typically callable by the issuer, which could in effect force conversion before the holder would otherwise choose. Traditionally, convertible securities have paid dividends or interest at rates higher than common stocks but lower than nonconvertible securities. They generally participate in the appreciation or depreciation of the underlying stock into which they are convertible, but to a lesser degree than common stock. Some convertible securities combine higher or lower current income with options and other features. Warrants are options to buy, directly from the issuer, a stated number of shares of common stock at a specified price anytime during the life of the warrants (generally, two or more years). Warrants can be highly volatile, have no voting rights, and pay no dividends.
Operating policy The fund may invest up to 5% of total assets in preferred stocks and securities that are convertible into, or which carry warrants for, common stocks or other equity securities. Under normal conditions, the fund does not expect to directly purchase common stocks. Any shares of common stock that are received through a
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reorganization, restructuring, exercise, exchange, conversion, or similar action will be sold within a reasonable timeframe taking into consideration market conditions and any legal restrictions.
Loan Participations and Assignments
Large loans to corporations or governments, including governments of less developed countries, may be shared or syndicated among several lenders, usually banks. The fund could participate in such syndicates, or could buy part of a loan, becoming a direct lender. The fund may acquire loans as an assignment from another lender that holds a direct interest in the loan or as a participation interest in another lenders portion of the loan. Participations and assignments involve special types of risk, including limited marketability and the risks of being considered a lender. If a fund purchases a participation, it may only be able to enforce its rights through the lender, and it may assume the credit risk of the lender in addition to the borrower. With assignments, the funds rights against the borrower may be more limited than those held by the original lender. The fund may also make investments in a company through the purchase or execution of a privately negotiated note representing the equivalent of a loan.
Operating policy The fund may invest up to 5% of total assets in loan participations and assignments.
Derivatives and Leverage
A derivative is a financial instrument whose value is derived from an underlying security such as a stock or bond or from a market benchmark, such as an interest rate index. Many types of investments representing a wide range of risks and potential rewards are derivatives, including conventional instruments such as callable bonds, futures, and options, as well as other potentially more complex investments such as swaps and structured notes. The use of derivatives can involve leverage. Leverage has the effect of magnifying returns, positively or negatively. The effect on returns will depend on the extent to which an investment is leveraged. For example, an investment of $1, leveraged at 2 to 1, would have the effect of an investment of $2. Leverage ratios can be higher or lower with a corresponding effect on returns. The fund may use derivatives in certain situations to help accomplish the following: to hedge against a decline in principal value, to increase yield, to manage exposure to changes in interest or currency exchange rates, to invest in eligible asset classes with greater efficiency and at a lower cost than is possible through direct investment, or to adjust portfolio duration or credit risk exposure.
Derivatives that may be used include the following as well as others that combine the risk characteristics and features of futures, options, and swaps:
Futures and Options Futures, a type of potentially high-risk derivative, are often used to manage or hedge risk because they enable the investor to buy or sell an asset in the future at an agreed-upon price. Options, another type of potentially high-risk derivative, give the investor the right (when the investor purchases the option), or the
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obligation (when the investor writes or sells the option), to buy or sell an asset at a predetermined price in the future. Futures and options contracts may be bought or sold for any number of reasons, including: to manage exposure to changes in interest rates, bond prices, foreign currencies, and credit quality; as an efficient means of increasing or decreasing a funds exposure to a specific part or broad segment of the U.S. market or a foreign market; in an effort to enhance income; to protect the value of portfolio securities; to serve as a cash management tool; and to adjust portfolio duration or credit exposure. Call or put options may be purchased or sold on securities, futures, and financial indices.
Futures contracts and options may not always be successful hedges; their prices can be highly volatile; using them could lower fund total return; and the potential loss from the use of futures can exceed a funds initial investment in such contracts.
Operating policies Initial margin deposits on futures and premiums on options used for non-hedging purposes will not exceed 5% of a funds net asset value. The total market value of securities covering call or put options may not exceed 25% of total assets. No more than 5% of total assets will be committed to premiums when purchasing call or put options.
Swaps Fund investments may be made in interest rate, index, total return, credit default, and other types of swap agreements, as well as options on swaps, commonly referred to as swaptions. All of these agreements are considered derivatives and, in certain cases, high-risk derivatives. Interest rate, index, and total return swaps are two-party contracts under which the fund and a counterparty, such as a broker or dealer, agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or indices. Credit default swaps are agreements where one party (the protection buyer) will make periodic payments to another party (the protection seller) in exchange for protection against specified credit events, such as defaults and bankruptcies related to an issuer or underlying credit instrument. Swaps and swaptions can be used for a variety of purposes, including: to manage a funds exposure to changes in interest or foreign currency exchange rates and credit quality; as an efficient means of adjusting a funds exposure to certain markets; in an effort to enhance income or total return or protect the value of portfolio securities; to serve as a cash management tool; and to adjust portfolio duration or credit risk exposure.
There are risks in the use of swaps and swaptions. Swaps could result in losses if interest or foreign currency exchange rates or credit quality changes are not correctly anticipated by the fund. Total return swaps could result in losses if the reference index, security, or investments do not perform as anticipated. Credit default swaps can increase a funds exposure to credit risk and could result in losses if evaluation of the creditworthiness of the counterparty, or of the company or government on which the credit default swap is based, is incorrect. The use of swaps and swaptions may not always be successful. Using them could lower fund total return, their prices can be highly volatile, and the potential loss from the use of swaps can exceed a funds
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initial investment in such instruments. Also, the other party to a swap agreement could default on its obligations or refuse to cash out a funds investment at a reasonable price, which could turn an expected gain into a loss.
Operating policies A swap agreement with any single counterparty will not be entered into if the net amount owed or to be received under existing contracts with that party would exceed 5% of total assets or if the net amount owed or to be received by a fund under all outstanding swap agreements will exceed 10% of total assets. For swaptions, the total market value of securities covering call or put options may not exceed 25% of total assets. No more than 5% of total assets will be committed to premiums when purchasing call or put options.
Currency Derivatives The fund may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through forward currency exchange contracts, which are contracts between two counterparties to exchange one currency for another on a future date at a specified exchange rate. In addition to foreign currency forwards, futures, swaps, and options on foreign currencies may also be used to protect the funds foreign securities from adverse currency movements relative to the U.S. dollar, as well as to gain exposure to currencies and markets expected to increase or decrease in value relative to other currencies or securities.
The fund may attempt to hedge its exposure to potentially unfavorable currency changes. Forward currency contracts will be used primarily to adjust the foreign exchange exposure of the fund with a view to protecting the portfolio from adverse currency movements, based on T. Rowe Prices outlook. However, forward currency contracts can also be used in an effort to benefit from a currency believed to be appreciating in value versus other currencies. The fund may invest in foreign currencies directly without holding any foreign securities denominated in those currencies.
Forward currency contracts involve special risks, including, but not limited to, significant volatility in currency markets, and the risk that in certain markets, particularly emerging markets, it is not possible to engage in effective foreign currency hedging. In addition, such transactions involve the risk that currency movements will not occur as anticipated by T. Rowe Price, which could reduce a funds total return. The fund might be expected to enter into foreign currency transactions under the following circumstances:
Lock In When the fund desires to lock in the U.S. dollar price on the purchase or sale of a security denominated in a foreign currency.
Cross Hedge If a particular currency is expected to decrease against another currency, the fund may sell the currency expected to decrease and purchase a currency that is expected to increase against the currency sold. The funds cross hedging transactions may involve currencies in which the funds holdings are
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denominated. However, the fund is not required to own any securities in the particular currency being purchased or sold.
Direct Hedge If the fund seeks to eliminate substantially all of the risk of owning a particular currency or believes the portfolio could benefit from price appreciation in a given countrys bonds but did not want to hold the currency, it could employ a direct hedge back into the U.S. dollar. In either case, a fund would enter into a forward contract to sell the currency in which a portfolio security is denominated and purchase U.S. dollars at an exchange rate established at the time it initiated the contract. The cost of the direct hedge transaction may offset most, if not all, of the yield advantage offered by the foreign security, but the fund would hope to benefit from an increase (if any) in the value of the bond.
Proxy Hedge In certain circumstances, a different currency may be substituted for the currency in which the investment is denominated, a strategy known as proxy hedging. In this case, the fund, having purchased a security, will sell a currency whose value is believed to be closely linked to the currency in which the security is denominated. This type of hedging entails greater risk than a direct hedge because it is dependent on a stable relationship between the two currencies paired as proxies, and because the relationships can be very unstable at times. The fund may also use these instruments to create a synthetic bondissued in one currency but with the currency component transformed into another currency.
Costs of Hedging When the fund purchases a foreign bond with a higher interest rate than is available on U.S. bonds of a similar maturity, the additional yield on the foreign bond could be substantially lessened if the fund were to enter into a direct hedge by selling the foreign currency and purchasing the U.S. dollar. This is what is known as the cost of hedging. A proxy hedge, which is less costly than a direct hedge, attempts to reduce this cost through an indirect hedge back to the U.S. dollar.
It is important to note that hedging costs are treated as capital transactions and are not, therefore, deducted from a funds dividend distribution and are not reflected in its yield. Instead, such costs will, over time, be reflected in a funds net asset value per share and total return. Hedging may result in the application of the mark-to-market and straddle provisions of the Internal Revenue Code. These provisions could result in an increase (or decrease) in the amount of taxable dividends paid by the funds and could affect whether dividends paid by the funds are classified as capital gains or ordinary income.
Investments in Other Investment Companies
A fund may invest in other investment companies, including open-end funds, closed-end funds, and exchange-traded funds.
A fund may purchase the securities of another investment company to temporarily gain exposure to a portion of the market while awaiting purchase of securities or as an efficient means of gaining exposure to a particular asset class. The fund might also
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purchase shares of another investment company to gain exposure to the securities in the investment companys portfolio at times when the fund may not be able to buy those securities directly. Any investment in another investment company would be consistent with the funds objective and investment program.
The risks of owning another investment company are generally similar to the risks of investing directly in the securities in which that investment company invests. However, an investment company may not achieve its investment objective or execute its investment strategy effectively, which may adversely affect the funds performance. In addition, because closed-end funds and exchange-traded funds trade on a secondary market, their shares may trade at a premium or discount to the actual net asset value of their portfolio securities and their shares may have greater volatility because of the potential lack of liquidity.
As a shareholder of an investment company not sponsored by T. Rowe Price, the fund must pay its pro-rata share of that investment companys fees and expenses. The funds investments in non-T. Rowe Price investment companies are subject to the limits that apply to investments in other funds under the Investment Company Act of 1940 or under any applicable exemptive order.
Illiquid Securities
Some fund holdings may be considered illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold in the ordinary course of business within seven days at approximately the prices at which they are valued. The determination of liquidity involves a variety of factors. Illiquid securities may include private placements that are sold directly to a small number of investors, usually institutions. Unlike public offerings, such securities are not registered with the SEC. Although certain of these securities may be readily sold, for example under Rule 144A of the Securities Act of 1933, others may have resale restrictions and can be illiquid. The sale of illiquid securities may involve substantial delays and additional costs, and a fund may only be able to sell such securities at prices substantially less than what it believes they are worth.
Operating policy Fund investments in illiquid securities are limited to 15% of net assets.
Types of Investment Management Practices
Reserve Position
A certain portion of fund assets will be held in reserves. Fund reserve positions can consist of: 1) shares of a T. Rowe Price internal money fund; 2) short-term, high-quality U.S. and foreign dollar-denominated money market securities, including repurchase agreements; and 3) U.S. dollar or non-U.S. dollar currencies. For temporary, defensive purposes, there is no limit on a funds holdings in reserves. If a fund has significant holdings in reserves, it could compromise the funds ability to achieve its objectives. The reserve position provides flexibility in meeting redemptions, paying expenses and in the timing of new investments, and can serve as
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a short-term defense during periods of unusual market volatility. Non-U.S. dollar reserves are subject to currency risk.
When-Issued Securities and Forwards
A fund may purchase securities on a when-issued or delayed delivery basis or may purchase or sell securities on a forward commitment basis. The price of these securities is fixed at the time of the commitment to buy, but delivery and payment take place after the customary settlement period for that type of security (often a month or more later). During the interim period, the price and yield of the securities can fluctuate, and typically no interest accrues to the purchaser. At the time of delivery, the market value of the securities may be more or less than the purchase or sale price. To the extent the fund remains fully or almost fully invested (in securities with a remaining maturity of more than one year) at the same time it purchases these securities, there will be greater fluctuations in the funds net asset value than if the fund did not purchase them.
Borrowing Money and Transferring Assets
A fund may borrow from banks, other persons, and other T. Rowe Price funds for temporary emergency purposes to facilitate redemption requests, or for other purposes consistent with fund policies as set forth in this prospectus. Such borrowings may be collateralized with fund assets, subject to restrictions.
Fundamental policy Borrowings may not exceed 331/3% of total assets.
Operating policy A fund will not transfer portfolio securities as collateral except as necessary in connection with permissible borrowings or investments, and then such transfers may not exceed 331/3% of total assets. A fund will not purchase additional securities when borrowings exceed 5% of total assets.
Lending of Portfolio Securities
A fund may lend its securities to broker-dealers, other institutions, or other persons to earn additional income. Risks include the potential insolvency of the broker-dealer or other borrower that could result in delays in recovering securities and capital losses. Additionally, losses could result from the reinvestment of collateral received on loaned securities in investments that default or do not perform as well as expected.
Fundamental policy The value of loaned securities may not exceed 331/3% of total assets.
Credit Quality Considerations
The credit quality of many fund holdings is evaluated by rating agencies such as Moodys, Standard & Poors, and Fitch on the basis of the issuers ability to meet all required interest and principal payments. The highest ratings are assigned to issuers perceived to have the lowest credit risks. T. Rowe Price research analysts also evaluate all fund holdings, including those rated by outside agencies. Other things being equal, lower-rated bonds and other debt obligations have higher yields due to
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greater credit risk. High-yield bonds, also called junk bonds, are those rated below BBB.
Credit quality ratings are not guarantees. They are estimates of an issuers financial strength and ability to make interest and principal payments as they come due. Ratings can change at any time due to real or perceived changes in an issuers credit or financial fundamentals.
The following table shows the rating scale used by the major rating agencies. T. Rowe Price considers publicly available ratings but emphasizes its own credit analysis when selecting investments.
Ratings of Corporate Debt Securities
Moodys Investors Service, Inc. | Standard & Poors Corporation | Fitch | Definition | |||||||
Long Term | Aaa | AAA | AAA | Highest quality | ||||||
Aa | AA | AA | High quality | |||||||
A | A | A | Upper-medium grade | |||||||
Baa | BBB | BBB | Medium grade | |||||||
Ba | BB | BB | Speculative | |||||||
B | B | B | Highly speculative | |||||||
Caa | CCC | CCC | Vulnerable to default | |||||||
Ca | CC | CC | Default is imminent | |||||||
C | C | C | Probably in default | |||||||
Moodys | S&P | Fitch Ratings | ||||||||
Commercial Paper | P-1 | Superior quality | A-1+ A-1 | Extremely strong quality Strong quality | F-1+ F-1 | Exceptionally strong quality Very strong quality | ||||
P-2 | Strong quality | A-2 | Satisfactory quality | F-2 | Good credit quality | |||||
P-3 | Acceptable quality | A-3 B C | Adequate quality Speculative quality Doubtful quality | F-3 | Fair credit quality |
Portfolio Turnover
Turnover is an indication of frequency of trading. A fund will not generally trade in securities for short-term profits, but when circumstances warrant, securities may be purchased and sold without regard to the length of time held. Each time a fund purchases or sells a security, it incurs a cost. This cost is reflected in its net asset value but not in its operating expenses. The higher the turnover rate, the higher the transaction costs and the greater the impact on a funds total return. Higher turnover can also increase the possibility of taxable capital gain distributions.
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Each T. Rowe Price funds portfolio holdings are disclosed on a regular basis in its semiannual and annual shareholder reports, and on Form N-Q, which is filed with the SEC within 60 days of the funds first and third fiscal quarter-end. The money funds also file detailed month-end portfolio holdings information with the SEC each month. Such information will be made available to the public 60 days after the end of the month to which the information pertains. In addition, the funds disclose their calendar quarter-end portfolio holdings on troweprice.com 15 calendar days after each quarter. Under certain conditions, up to 5% of a funds holdings may be included in this portfolio list without being individually identified. Generally, securities would not be individually identified if they are being actively bought or sold and it is determined that the quarter-end disclosure of the holding could be harmful to the fund. A security will not be excluded for these purposes from a funds quarter-end holdings disclosure for more than one year. Money funds also disclose their month-end portfolio holdings on troweprice.com five business days after each month. The quarter-end portfolio holdings will remain on the website for one year and the month-end money fund portfolio holdings will remain on the website for six months. Each fund also discloses its 10 largest holdings on troweprice.com on the seventh business day after each month-end. These holdings are listed in alphabetical order along with the aggregate percentage of the funds total assets that these 10 holdings represent. Each monthly top 10 list will remain on the website for six months. A description of T. Rowe Prices policies and procedures with respect to the disclosure of portfolio information is in the Statement of Additional Information.
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If you are purchasing fund shares through a third-party intermediary, contact the intermediary for information regarding its policies on purchasing, exchanging, and redeeming fund shares, as well as initial and subsequent investment minimums. |
Tax Identification | We must have your correct Social Security or employer identification number on a signed New Account form or W-9 Form. Otherwise, federal law requires the funds to withhold a percentage of your dividends, capital gain distributions, and redemptions and may subject you to an Internal Revenue Service fine. If this information is not received within 60 days after your account is established, your account may be redeemed at the funds net asset value on the redemption date. |
Transaction Confirmations | We send immediate confirmations for most of your fund transactions, but some, such as
systematic purchases, dividend reinvestments, checkwriting redemptions for money funds, and transactions
in money funds used as a T. Rowe Price Brokerage sweep account, may be reported on your account
statement. Please review confirmations and statements as soon as you receive them and promptly report
any discrepancies to Shareholder Services by calling |
Employer-Sponsored T.
Rowe Price 1-800-492-7670 | Transaction procedures in the following sections may not apply to employer-sponsored retirement plans and institutional accounts. For procedures regarding employer-sponsored retirement plans, please call T. Rowe Price Trust Company or consult your plan administrator. For institutional account procedures, please call your designated account manager or service representative. |
We do not accept third-party checks for initial purchases; however, we do accept third-party checks for subsequent purchases. In addition, T. Rowe Price does not accept purchases by cash, travelers checks, or credit card checks. |
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$2,500 minimum initial investment; $1,000 for retirement plans or Uniform Gifts to Minors Act/Uniform Transfers to Minors Act accounts ($25,000 minimum initial investment for Summit Funds only) |
Important
Information | Pursuant to federal law, all financial institutions must obtain, verify, and record information that identifies each person or entity that opens an account. This information is needed not only for the person who opens an account, but also for any person who has authority to act on behalf of the account. |
When you open an account, you will be asked for the name, residential street address,
date of birth, and Social Security number or employer identification number for each account owner and
person(s) opening an account on behalf of others, such as custodians, agents, trustees, or other authorized
signers. Corporate and other institutional accounts require documents showing the existence of the entity
(such as articles of incorporation or partnership agreements) to open an account. Certain other fiduciary
accounts (such as trusts or power of attorney arrangements) require documentation, which may include
an original or certified copy of the trust agreement or power of attorney to open an account. For more
information, call Investor Services at |
We will use this information to verify the identity of the person(s)/entity opening the account. We will not be able to open your account until we receive all of this information. If we are unable to verify your identity, we are authorized to take any action permitted by law. (See Rights Reserved by the Funds.) |
The funds are generally available only to investors residing in the United States. In addition, purchases in state tax-free funds are limited to investors living in states where the fund is available. The address of record on your account must be located in one of these states, or you will be restricted from purchasing fund shares. Contact Investor Services for more information. |
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Account Registration | If you own other T. Rowe Price funds, be sure to register any new account just like your existing accounts so you can exchange shares among them easily. (The name(s) of the account owner(s) and the account type must be identical.) |
For joint accounts or other types of accounts owned or controlled by more than one party, either owner/party has complete authority to act on behalf of all and give instructions concerning the account without notice to the other party. T. Rowe Price may, in its sole discretion, require written authorization from all owners/parties to act on the account for certain transactions (for example, to transfer ownership). |
By Mail | Please make your check payable to T. Rowe Price Funds (otherwise it will be returned), and send your check, together with the New Account form, to the appropriate address below: via U.S. Postal Service via private carriers/overnight services Note: Please use the correct address to avoid a delay in opening your new account. |
By Wire | Call Investor Services for an account number and wire transfer instructions. |
In order to obtain an account number, you must supply the name, date of birth, Social Security or employer identification number, and residential or business street address for each owner on the account. |
Complete a New Account form and mail it to one of the appropriate T. Rowe Price addresses listed under By Mail. |
Note: Investment will be made, but services may not be established and Internal Revenue Service penalty withholding may occur until we receive a signed New Account form. |
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Online | You can open a new mutual fund account online. Go to troweprice.com/newaccount, where you can choose the type of account you wish to open. |
To open an account electronically, you must be a U.S. citizen residing in the U.S. or a resident alien and not subject to Internal Revenue Service backup withholding. Additionally, you must provide consent to receive certain documents electronically. |
You will have the option of providing your bank account information that will enable you to make electronic funds transfers to and from your bank account. To set up this banking service online, additional steps will be taken to verify your identity. |
Call Shareholder Services or use your computer (see Automated Services under Information About Your Services). The new account will have the same registration as the account from which you are exchanging. Services for the new account may be carried over by telephone request if they are preauthorized on the existing account. For limitations on exchanging, please see Transaction Procedures and Special RequirementsExcessive and Short-Term Trading. |
In Person | Drop off your New Account form at any Investor Center location listed on the back cover and obtain a receipt. |
$100 minimum per fund account for all additional purchases, including those made through Automatic Asset Builder (all funds except Summit Funds); $100 minimum per fund account for additional purchases through Automatic Asset Builder and $1,000 for all other additional purchases (Summit Funds) |
By Automated | Use your computer or call Shareholder Services if you have established electronic transfers using the Automated Clearing House system. |
By Wire |
| Call Shareholder Services or access troweprice.com for wire transfer instructions. For purchases by wire, the wire must be received by T. Rowe Price by the close of the New York Stock Exchange to receive |
T. Rowe Price | 44 |
|
| that days share price. There is no assurance that you will receive the share price for the same day the wire was initiated. |
By Mail | 1. Make your check payable to T. Rowe Price Funds (otherwise it may be returned). 2. Mail the check to us at the following address with either a fund reinvestment slip or a note indicating the fund you want to buy and your fund account number. Please use the correct address to avoid a delay in processing your transaction. 3. Remember to provide your account number and the fund name on the memo line of your check. |
via U.S. Postal Service (To send mail directly to T. Rowe Price via private carriers and overnight services, see previous section.) |
Your transaction will receive the share price for the business day that the request is received by T. Rowe Price prior to the close of the New York Stock Exchange (normally 4 p.m. ET) (not the day the request is received at the P.O. box). |
By
Automatic | Fill out the Automatic Asset Builder section on the New Account or Shareholder Services form. |
Exchange Service | You can move money from one account to an existing, identically registered account or open a new identically registered account. Remember, exchanges are purchases and sales for tax purposes. (Exchanges into a state tax-free fund are limited to investors living in states where the fund is available.) For exchange policies, please see Transaction Procedures and Special RequirementsExcessive and Short-Term Trading Policy. |
Redemptions |
| Redemption proceeds can be mailed to your account address, sent by Automated Clearing House transfer |
Investing With T. Rowe Price | 45 |
|
| to your bank, or wired to your bank (provided your bank information is already on file). Redemption proceeds of less than $5,000 sent by wire are subject to a $5 fee paid to the fund. Please note that large purchase and redemption requests initiated through automated services, including the National Securities Clearing Corporation, may be rejected and, in such instances, the transaction must be placed by contacting a service representative. |
If you request to redeem a specific dollar amount, and the market value of your account is less than the amount of your request, your redemption will not be processed, and you will need to submit a new redemption request in proper form. If you change your address on an account, proceeds will not be mailed to the new address for 15 calendar days after the address change, unless we receive a signature guaranteed letter of instruction. |
Some of the T. Rowe Price funds may impose a redemption fee. Check the funds prospectus under Contingent Redemption Fee in Pricing Shares and Receiving Sale Proceeds. The fee is paid to the fund. |
For redemptions by check or electronic transfer, please see Information About Your Services. |
By Phone | Call Shareholder Services If you find our phones busy during unusually volatile markets, please consider placing your order at troweprice.com (if you have previously authorized these services) or express mail. |
By Mail | For each account involved, provide the account name and number, fund name, and exchange or redemption amount. For exchanges, be sure to specify any fund you are exchanging out of and the fund or funds you are exchanging into. T. Rowe Price may require a signature guarantee of all registered owners (see Transaction Procedures and Special RequirementsSignature Guarantees). Please use one of the following addresses: |
T. Rowe Price | 46 |
For
nonretirement and individual retirement accounts: via private carriers/overnight services For employer-sponsored retirement accounts: via private carriers/overnight services |
For requests that are not sent via private carriers or overnight services, your transaction will receive the share price for the business day that the request is received by T. Rowe Price prior to the close of the New York Stock Exchange (normally 4 p.m. ET) (not the day the request is received at the P.O. box). |
Requests for redemptions from employer-sponsored retirement accounts may be required to be in writing; please call T. Rowe Price Trust Company or your plan administrator for instructions. Individual retirement account distributions may be requested in writing or by telephone; please call Shareholder Services to obtain an Individual Retirement Account Distribution form or an Individual Retirement Account Shareholder Services form to authorize the telephone redemption service. |
Online | Customers with Account Access (our secure self-service Web platform for individual investors) can electronically exchange shares between identically registered T. Rowe Price accounts and electronically redeem shares from their mutual fund accounts. |
Investing With T. Rowe Price | 47 |
T. Rowe Price funds and their agents, in their sole discretion, reserve the following rights: (1) to waive or lower investment minimums; (2) to accept initial purchases by telephone; (3) to refuse any purchase or exchange order; (4) to cancel or rescind any purchase or exchange order placed through an intermediary, no later than the business day after the order is received by the intermediary (including, but not limited to, orders deemed to result in excessive trading, market timing, or 5% ownership); (5) to cease offering fund shares at any time to all or certain groups of investors; (6) to freeze any account and suspend account services when notice has been received of a dispute regarding the ownership of the account or a legal claim against an account or when there is reason to believe a fraudulent transaction may occur; (7) to otherwise modify the conditions of purchase and modify or terminate any services at any time; (8) to waive any wire, small account, maintenance, or fiduciary fees charged to a group of shareholders; (9) to act on instructions reasonably believed to be genuine; (10) to involuntarily redeem an account at the net asset value calculated the day the account is redeemed, in cases of threatening conduct, suspected fraudulent or illegal activity, or if the fund or its agent is unable, through its procedures, to verify the identity of the person(s) or entity opening an account; and (11) for money funds seeking a stable share price, to suspend redemptions and postpone the payment of proceeds to facilitate an orderly liquidation of the fund. |
T. Rowe Price | 48 |
Shareholder Services 1-800-225-5132 Investor Services 1-800-638-5660 | Many services are available to you as a shareholder; some you receive automatically, and others you must authorize or request on the New Account form. By signing up for services on the New Account form, you avoid having to complete a separate form at a later time and obtain a signature guarantee. This section discusses some of the services currently offered. |
Retirement Plans | We offer a wide range of plans for individuals, institutions, and large and small businesses: Traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP-IRAs, 401(k)s, and 403(b)(7)s. For information on individual retirement accounts or our no-load variable annuity (for existing variable annuity contract holders), call Investor Services. For information on all other retirement plans, please call our Trust Company at 1-800-492-7670. |
Investing for College | We can help you save for future college expenses on a tax-advantaged basis. |
Education
Savings Accounts |
529 Plans |
Automated Services | Online Account Access |
Investing With T. Rowe Price | 49 |
Tele*AccessSM 1-800-638-2587 |
Plan Account Line 1-800-401-3279 |
By Telephone and | Buy, sell, or exchange shares by calling one of our service representatives or by visiting one of our Investor Center locations whose addresses are listed on the back cover. |
Electronic Transfers | By
Automated Clearing House |
By Wire |
Checkwriting | (Not available for equity funds or the Emerging Markets Bond, Emerging Markets Corporate Bond, Emerging Markets Local Currency Bond, Floating Rate, High Yield, International Bond, or U.S. Bond Enhanced Index Funds.) You may write an unlimited number of free checks on any money fund and most bond funds, with a minimum of $500 per check. Keep in mind, however, that a check results in a redemption; a check written on a bond fund will create a taxable event that you and we must report to the Internal Revenue Service. |
T. Rowe Price | 50 |
Automatic Investing | Automatic Asset Builder |
Automatic
Exchange |
To Open an Account 1-800-638-5660 For
Existing 1-800-225-7720 | Investments available through our Brokerage service include stocks, options, bonds, and others at commission savings over full-service brokers.* We also provide a wide range of services, including: Automated Telephone
and Computer Services |
Investor Information |
Dividend Reinvestment
Service *Services vary by firm. T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services, Inc., Member FINRA/SIPC. |
Investing With T. Rowe Price | 51 |
To help you monitor your investments and make decisions that accurately reflect your financial goals, T. Rowe Price offers a wide variety of information in addition to account statements. Most of this information is also available on our website at troweprice.com. |
If your account has no activity in it for a certain period of time, T. Rowe Price may be required to transfer your account to the appropriate state under its abandoned property laws. |
A note on mailing procedures: If two or more members of a household own the same fund, we economize on fund expenses by sending only one fund report and prospectus. If you need additional copies or do not want your mailings to be householded, please call Shareholder Services at 1-800-225-5132 or write to us at P.O. Box 17630, Baltimore, MD 21297-1630. |
Shareholder Reports |
The T. Rowe Price Report |
Insights |
Investment Guides |
T. Rowe Price | 52 |
In the course of doing business with T. Rowe Price, you share personal and financial information with us. We treat this information as confidential and recognize the importance of protecting access to it.
You may provide information when communicating or transacting business with us in writing, electronically, or by phone. For instance, information may come from applications, requests for forms or literature, and your transactions and account positions with us. On occasion, such information may come from consumer reporting agencies and those providing services to us.
We do not sell information about current or former customers to any third parties, and we do not disclose it to third parties unless necessary to process a transaction, service an account, or as otherwise permitted by law. We may share information within the T. Rowe Price family of companies in the course of providing or offering products and services to best meet your investing needs. We may also share that information with companies that perform administrative or marketing services for T. Rowe Price, with a research firm we have hired, or with a business partner, such as a bank or insurance company with which we are developing or offering investment products. When we enter into such a relationship, our contracts restrict the companies use of our customer information, prohibiting them from sharing or using it for any purposes other than those for which they were hired.
We maintain physical, electronic, and procedural safeguards to protect your personal information. Within T. Rowe Price, access to such information is limited to those who need it to perform their jobs, such as servicing your accounts, resolving problems, or informing you of new products or services. Finally, our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in strict confidence.
This Privacy Policy applies to the following T. Rowe Price family of companies: T. Rowe Price Associates, Inc.; T. Rowe Price Advisory Services, Inc.; T. Rowe Price Investment Services, Inc.; T. Rowe Price Savings Bank; T. Rowe Price Trust Company; and the T. Rowe Price Funds.
To help you achieve your financial goals, T. Rowe Price offers a wide range of stock, bond, and money market investments, as well as convenient services and informative reports.
For mutual fund or T. Rowe Price Brokerage information
Investor Services
1-800-638-5660
For existing accounts
Shareholder Services
1-800-225-5132
For the hearing impaired
1-800-367-0763
For performance, prices, or account information
Tele*AccessSM
24 hours, 7 days
1-800-638-2587
Internet address
troweprice.com
Plan Account Line
For retirement plan investors: The appropriate 800 number appears on your retirement account statement.
Investor Centers For directions,
call Baltimore Area Downtown 105 East
Lombard Owings Mills Three Financial Center Boston Area 386 Washington Street Chicago Area Northbrook 40 Skokie Boulevard Oak Brook 1900 Spring
Road Colorado Springs 2260 Briargate Parkway Florida Area Boca Raton Wachovia Plaza Tampa 4211 W.
Boy Scout | Los Angeles Area 10100 Santa
Monica New Jersey Area Short Hills 51 JFK
Parkway Paramus 35 Plaza Office Center New York Area 1100 Franklin Avenue San Francisco Area 1990 N.
California Boulevard Washington, D.C. Area Downtown 900 17th
Street, N.W. Tysons Corner 1600 Tysons Boulevard | A Statement of Additional Information for the T. Rowe Price family of funds has been filed with the SEC and is incorporated by reference into this prospectus. Further information about fund investments, including a review of market conditions and the managers recent investment strategies and their impact on performance during the past fiscal year, is available in the annual and semiannual shareholder reports. To obtain free copies of any of these documents, or for shareholder inquiries, call 1-800-638-5660. These documents and updated performance information are available through troweprice.com. Fund information and Statements of Additional Information are also
available from the Public Reference Room of the SEC. Information on the operation of the Public Reference
Room may be obtained by calling the SEC at |
T. Rowe Price Associates, Inc. |
1940 Act File No. 811-2958 | TBD 5/24/12 |
PROSPECTUS | |
TBD | |
May 24, 2012 | |
T. Rowe Price Emerging Markets Corporate Bond FundAdvisor Class | |
A fund seeking high current income and capital appreciation through investments in emerging markets corporate bonds. SUBJECT TO COMPLETION Information contained herein is subject to completion or amendment. A Registration Statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. This Prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. | |
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. | |
Table of Contents
SUMMARY
The fund seeks to provide high current income and, secondarily, capital appreciation.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.
Fees and Expenses of the Funds Advisor Class
Shareholder fees (fees paid directly from your investment) | |
Redemption fee (as a percentage of amount redeemed on shares held for 90 days or less) | 2.00% |
Annual
fund operating expenses | |
Management fees | 0.80% |
Distribution and service (12b-1) fees | 0.25% |
Other expenses | 0.54%a |
Total annual fund operating expenses | 1.59% |
Fee waiver/expense reimbursement | 0.34%b |
Total annual fund operating expenses after fee waiver/expense reimbursement | 1.25%b |
a Other expenses are estimated.
b T. Rowe Price Associates, Inc. has agreed (through April 30, 2015) to waive its fees and/or bear any expenses (excluding interest, taxes, brokerage, extraordinary expenses, and acquired fund fees) that would cause the funds ratio of expenses to average net assets to exceed 1.25%. Termination of the agreement would require approval by the funds Board of Directors. Fees waived and expenses paid under this agreement are subject to reimbursement to T. Rowe Price Associates, Inc. by the fund whenever the funds expense ratio is below 1.25%. However, no reimbursement will be made after April 30, 2015 or if it would result in the expense ratio exceeding 1.25%.
Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, the funds operating expenses remain the same, and the expense limitation currently in place is not renewed. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 year | 3 years |
$127 | $399 |
Portfolio Turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund
T. Rowe Price | 2 |
shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the funds performance.
Investments, Risks, and Performance
Principal Investment Strategies The fund will normally invest at least 80% of its net assets (including any borrowings for investment purposes) in bonds that are issued by companies that are located or listed in, or conduct the predominant part of their business activities in, the emerging market countries of Latin America, Asia, Europe, Africa and the Middle East.
While it is expected that the securities held by the fund will primarily be U.S. dollar-denominated, the fund may also hold securities denominated in emerging market currencies and other non-U.S. currencies. The fund does not generally attempt to cushion the impact of non-U.S. currency fluctuations against the U.S. dollar. Although the fund expects to generally maintain an intermediate-term weighted average maturity, there are no maturity restrictions on the overall portfolio or on individual securities purchased by the fund.
The fund may purchase bonds of any credit quality and there are no overall limits on the funds investments that are unrated by any major credit rating agency or rated below investment-grade (BB or lower, or an equivalent rating) by a credit rating agency or T. Rowe Price. Investments in below investment-grade corporate bonds, also known as junk bonds, should be considered speculative.
The fund may sell holdings for a variety of reasons, such as to alter geographic or currency exposure, to adjust its average maturity, duration, or credit quality, or to shift assets into or out of higher-yielding securities.
Principal Risks As with any mutual fund, there is no guarantee that the fund will achieve its objective. The funds share price fluctuates, which means you could lose money by investing in the fund. The principal risks of investing in this fund are summarized as follows:
Active management risk The fund is subject to the risk that the investment advisers judgments about the attractiveness, value, or potential appreciation of the funds investments may prove to be incorrect. If the securities selected and strategies employed by the fund fail to produce the intended results, the fund could underperform other funds with similar objectives and investment strategies.
Foreign investing risk Investing in the securities of non-U.S. issuers involves special risks not typically associated with investing in U.S. securities. Foreign securities tend to be more volatile and less liquid than investments in U.S. securities and may lose value because of adverse political, social or economic developments overseas. In addition, foreign investments may be subject to regulatory and accounting standards that differ from those of the U.S.
Summary | 3 |
Emerging markets risk The risks of foreign investing are heightened for securities of issuers in emerging market countries. Emerging market countries tend to have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. In addition to all of the risks of investing in foreign developed markets, emerging markets are more susceptible to governmental interference, local taxes being imposed on foreign investments, restrictions on gaining access to sales proceeds, and less liquid and efficient trading markets.
Currency risk Although the fund primarily invests in U.S. dollar-denominated bonds of emerging markets issuers, the fund may invest in securities issued in foreign currencies and is therefore subject to the risk that it could experience losses based solely on the weakness of those foreign currencies versus the U.S. dollar and changes in the exchange rates between such currencies and the U.S. dollar.
Credit risk This is the risk that an issuer of a debt security could suffer an adverse change in financial condition that results in a payment default, security downgrade, or inability to meet a financial obligation. The risk of default is much greater for emerging market bonds and securities rated as below investment-grade (junk bonds). The fund is exposed to greater credit risk than other bond funds because companies in emerging markets are usually not as strong financially and are more susceptible to economic downturns. Junk bonds should be considered speculative as they carry greater risks of default and erratic price swings due to real or perceived changes in the credit quality of the issuer.
Interest rate risk This risk refers to the chance that interest rates will increase, causing a decline in bond prices. (Bond prices and interest rates usually move in opposite directions.) Generally, securities with longer maturities and funds with longer weighted average maturities carry greater interest rate risk.
Liquidity risk This is the risk that the fund may not be able to sell a holding in a timely manner at a desired price.
Performance Because the fund commenced operations in 2012, there is no historical performance information shown here. Performance history will be presented after the fund has been in operation for one full calendar year.
Current performance information may be obtained by calling 1-800-638-8790.
Management
Investment Adviser T. Rowe Price Associates, Inc. (T. Rowe Price)
Portfolio Manager | Title | Managed Fund Since | Joined Investment |
Michael J. Conelius | Chairman of Investment Advisory Committee | 2012 | 1988 |
T. Rowe Price | 4 |
Purchase and Sale of Fund Shares
For retirement plan accounts and Uniform Gifts to Minors Act or Uniform Transfers to Minors Act accounts, generally the funds minimum initial investment requirement is $1,000 and the minimum subsequent investment requirement is $50. For all other accounts, generally the funds minimum initial investment requirement is $2,500 and the minimum subsequent investment is $100. Your financial intermediary may impose different investment minimums.
You may purchase, redeem, or exchange shares of the fund on any day the New York Stock Exchange is open for business. You must purchase, redeem, and exchange shares through your financial intermediary.
Tax Information
The fund declares dividends daily and pays them on the first business day of each month. Any capital gains are declared and paid annually, usually in December. Distributions by the fund, whether or not you reinvest these amounts in additional fund shares, may be taxed as ordinary income or capital gains unless you invest through an individual retirement account, 401(k) plan, or other tax-deferred account. A redemption or exchange of fund shares may be taxable.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediarys website for more information.
Information About Accounts in T. Rowe Price Funds | 2 | |
As a T. Rowe Price shareholder, you will want to know about the following policies and procedures that apply to Advisor Class accounts in the T. Rowe Price family of funds.
How and When Shares Are Priced
The share price, also called the net asset value, for each class of shares is calculated at the close of the New York Stock Exchange (normally 4 p.m. ET) each day that the exchange is open for business. To calculate the net asset value, the funds assets are valued and totaled; liabilities are subtracted; and each classs proportionate share of the balance, called net assets, is divided by the number of shares outstanding of that class. Market values are used to price portfolio holdings for which market quotations are readily available. Market values represent the prices at which securities actually trade or evaluations based on the judgment of the funds pricing services. If a market value for a security is not available or normal valuation procedures are deemed to be inappropriate, the fund will make a good faith effort to assign a fair value to the security by taking into account various factors that have been approved by the funds Board of Directors/Trustees. This value may differ from the value the fund receives upon sale of the securities. Amortized cost is used to price securities held by money funds and certain other debt securities held by a fund. Investments in other mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation.
Non-U.S. equity securities are valued on the basis of their most recent closing market prices at 4 p.m. ET except under the circumstances described below. Most foreign markets close before 4 p.m. ET. For securities primarily traded in the Far East, for example, the most recent closing prices may be as much as 15 hours old at 4 p.m. ET. If a fund determines that developments between the close of a foreign market and the close of the New York Stock Exchange will, in its judgment, materially affect the value of some or all of the funds securities, the fund will adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of 4 p.m. ET. In deciding whether to make these adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. The fund may also fair value certain securities or a group of securities in other situationsfor example, when a particular foreign market is closed but the fund is open. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it
T. Rowe Price | 6 |
will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next days opening prices in the same markets, and adjusted prices. The fund also evaluates a variety of factors when assigning fair values to private placements and other restricted securities. Other mutual funds may adjust the prices of their securities by different amounts.
How Your Purchase, Sale, or Exchange Price Is Determined
Advisor Class shares are intended for purchase through various third-party intermediaries, including brokers, banks, insurance companies, retirement plan recordkeepers, and others. Contact your intermediary to find out how to purchase, sell, or exchange your shares; trade deadlines; and other applicable procedures for these transactions. The intermediary may charge a fee for its services.
The fund may have an agreement with your intermediary that permits the intermediary to accept orders on behalf of the fund until the close of the New York Stock Exchange (normally 4 p.m. ET). In such cases, if your order is received by the intermediary in correct form by the close of the New York Stock Exchange and is transmitted to T. Rowe Price and paid for in accordance with the agreement, the transaction will be priced at the next net asset value computed after the intermediary received your order. If the fund does not have an agreement with your intermediary, T. Rowe Price must receive the request in correct form from your intermediary by the close of the New York Stock Exchange in order for your transaction to be priced at that business days net asset value.
When authorized by the fund, certain financial institutions or retirement plans purchasing fund shares on behalf of customers or plan participants through Financial Institution Services or Retirement Plan Services may place a purchase order unaccompanied by payment. Payment for these shares must be received by the time designated by the fund (not to exceed the period established for settlement under applicable regulations). If payment is not received by this time, the order may be canceled. The financial institution or retirement plan is responsible for any costs or losses incurred by the fund or T. Rowe Price if payment is delayed or not received.
Note: The time at which transactions and shares are priced and the time until which orders are accepted by the fund or an intermediary may be changed in case of an emergency or if the New York Stock Exchange closes at a time other than 4 p.m. ET. In the event of an emergency closing, a funds shareholders will receive the next share price calculated by the fund. There may be times when you are unable to contact us by telephone or access your account online due to extreme market activity, the unavailability of the T. Rowe Price website, or other circumstances. Should this occur, your order must still be placed and accepted by T. Rowe Price prior to the time the New York Stock Exchange closes to be priced at that business days net asset value.
Information About Accounts in T. Rowe Price Funds | 7 |
How Proceeds Are Received
Normally, the fund transmits proceeds to intermediaries for redemption orders received in correct form on either the next or third business day after receipt, depending on the arrangement with the intermediary. Under certain circumstances, and when deemed to be in a funds best interests, proceeds may not be sent to intermediaries for up to seven calendar days after receipt of the redemption order. You must contact your intermediary about procedures for receiving your redemption proceeds.
Contingent Redemption Fee
Short-term trading can disrupt a funds investment program and create additional costs for long-term shareholders. For these reasons, certain T. Rowe Price funds, listed in the following table, assess a fee on redemptions (including exchanges out of a fund), which reduces the proceeds from such redemptions by the amounts indicated:
T. Rowe Price Advisor Class Funds With Redemption Fees | ||
Fund | Redemption fee | Holding period |
Emerging Markets Corporate BondAdvisor Class | 2% | 90 days or less |
Emerging Markets Local Currency BondAdvisor Class | 2% | 90 days or less |
Floating RateAdvisor Class | 2% | 90 days or less |
Global InfrastructureAdvisor Class | 2% | 90 days or less |
Global Large-Cap StockAdvisor Class | 2% | 90 days or less |
Global Real EstateAdvisor Class | 2% | 90 days or less |
Global StockAdvisor Class | 2% | 90 days or less |
High YieldAdvisor Class | 2% | 90 days or less |
International BondAdvisor Class | 2% | 90 days or less |
International Growth & IncomeAdvisor Class | 2% | 90 days or less |
International StockAdvisor Class | 2% | 90 days or less |
Real EstateAdvisor Class | 1% | 90 days or less |
Small-Cap ValueAdvisor Class | 1% | 90 days or less |
Redemption fees are paid to a fund to deter short-term trading, offset costs, and protect the funds long-term shareholders. Subject to the exceptions described on the following pages, all persons holding shares of a T. Rowe Price fund that imposes a redemption fee are subject to the fee, whether the person is holding shares directly with a T. Rowe Price fund; through a retirement plan for which T. Rowe Price serves as recordkeeper; or indirectly through an intermediary (such as a broker, bank, or investment adviser), recordkeeper for retirement plan participants, or other third party.
T. Rowe Price | 8 |
Computation of Holding Period
When an investor sells shares of a fund that assesses a redemption fee, T. Rowe Price will use the first-in, first-out method to determine the holding period for the shares sold. Under this method, the date of redemption or exchange will be compared with the earliest purchase date of shares held in the account. The day after the date of your purchase is considered Day 1 for purposes of computing the holding period. A redemption fee will be charged on shares sold on or before the end of the required holding period. For example, if you redeem your shares on or before the 90th day after the date of purchase, you will be assessed the redemption fee. If you purchase shares through an intermediary, consult your intermediary to determine how the holding period will be applied.
Transactions Not Subject to Redemption Fees
The T. Rowe Price funds will not assess a redemption fee with respect to certain transactions. As of the date of this prospectus, the following shares of T. Rowe Price funds will not be subject to redemption fees:
· Shares redeemed through an automated, systematic withdrawal plan;
· Shares redeemed through or used to establish certain rebalancing, asset allocation, wrap, and advisory programs, as well as non-T. Rowe Price fund-of-funds products, if approved in writing by T. Rowe Price;
· Shares purchased through the reinvestment of dividends or capital gain distributions; *
· Shares converted from one share class to another share class of the same fund;*
· Shares redeemed automatically by a fund to pay fund fees or shareholder account fees (e.g., for failure to meet account minimums);
· Shares purchased by rollover or changes of account registration within the same fund; *
· Shares redeemed to return an excess contribution from a retirement account;
· Shares of T. Rowe Price funds purchased by another T. Rowe Price fund and shares purchased by discretionary accounts managed by T. Rowe Price or one of its affiliates (please note that other shareholders of the investing T. Rowe Price fund are still subject to the policy);
· Shares that are redeemed in-kind;
· Shares transferred to T. Rowe Price or a third-party intermediary acting as a service provider when the age of the shares cannot be determined systematically; * and
· Shares redeemed in retirement plans or other products that restrict trading to no more frequently than once per quarter, if approved in writing by T. Rowe Price.
* Subsequent exchanges of these shares into funds that assess redemption fees will subject such shares to the fee.
Redemption Fees on Shares Held in Retirement Plans
If shares are held in a retirement plan, redemption fees generally will be assessed on shares redeemed by exchange only if they were originally purchased by exchange. However, redemption fees may apply to transactions other than exchanges depending
Information About Accounts in T. Rowe Price Funds | 9 |
on how shares of the plan are held at T. Rowe Price or how the fees are applied by your plans recordkeeper. To determine which of your transactions are subject to redemption fees, you should contact T. Rowe Price or your plan recordkeeper.
Omnibus Accounts
If your shares are held through an intermediary in an omnibus account, T. Rowe Price relies on the intermediary to assess the redemption fee on underlying shareholder accounts. T. Rowe Price seeks to identify intermediaries establishing omnibus accounts and to enter into agreements requiring the intermediary to assess the redemption fees. There are no assurances that T. Rowe Price will be successful in identifying all intermediaries or that the intermediaries will properly assess the fees.
Certain intermediaries may not apply the exemptions previously listed to the redemption fee policy; all redemptions by persons trading through such intermediaries may be subject to the fee. Certain intermediaries may exempt transactions not listed from redemption fees, if approved by T. Rowe Price. Persons redeeming shares through an intermediary should check with their respective intermediary to determine which transactions are subject to the fees.
Each fund has elected to be treated, and intends to qualify to be treated each year, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. In order to qualify, the fund must satisfy certain income, diversification, and distribution requirements. A regulated investment company is not subject to U.S. federal income tax at the portfolio level on income and gains from investments that are distributed to shareholders. However, if a fund were to fail to qualify as a regulated investment company, and was ineligible to or otherwise did not cure such failure, the result would be fund-level taxation and, consequently, a reduction in income available for distribution to the funds shareholders.
To the extent possible, all net investment income and realized capital gains are distributed to shareholders.
Dividends and Other Distributions
Dividend and capital gain distributions are reinvested in additional fund shares in your account unless you select another option. Reinvesting distributions results in compounding, which allows you to receive dividends and capital gain distributions on an increasing number of shares.
Interest will not accrue on amounts represented by uncashed distributions or redemption checks.
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The following table provides details on dividend payments:
Dividend Payment Schedule | |
Fund | Dividends |
Bond funds | · Shares normally begin to earn dividends on the business day after payment is received by T. Rowe Price. · Declared daily and paid on the first business day of each month. |
These stock funds only: · Dividend GrowthAdvisor Class · Equity IncomeAdvisor Class · Global Real EstateAdvisor Class · Real EstateAdvisor Class | · Declared and paid quarterly, if any, in March, June, September, and December. · Must be a shareholder on the dividend record date. |
Other stock funds | · Declared and paid annually, if any, generally in December. · Must be a shareholder on the dividend record date. |
Retirement Funds: | |
· Retirement IncomeAdvisor Class | · Shares normally begin to earn dividends on the business day after payment is received by T. Rowe Price. · Declared daily and paid on the first business day of each month. |
· All others | · Declared and paid annually, if any, generally in December. · Must be a shareholder on the dividend record date. |
Bond fund shares will earn dividends through the date of redemption. Shares redeemed on a Friday or prior to a holiday will continue to earn dividends until the next business day. Generally, if you redeem all of your bond fund shares at any time during the month, you will also receive all dividends earned through the date of redemption in the same check. When you redeem only a portion of your bond fund shares, all dividends accrued on those shares will be reinvested, or paid in cash, on the next dividend payment date. The funds do not pay dividends in fractional cents. Any dividend amount earned for a particular day on all shares held that is one-half of one cent or greater (for example, $0.016) will be rounded up to the next whole cent ($0.02), and any amount that is less than one-half of one cent (for example, $0.014) will be rounded down to the nearest whole cent ($0.01). Please note that, if the dividend payable on all shares held is less than one-half of one cent for a particular day, no dividend will be earned for that day.
If you purchase and sell your shares through an intermediary, consult your intermediary to determine when your shares begin and stop accruing dividends; the information previously described may vary.
Capital Gain Payments
A capital gain or loss is the difference between the purchase and sale price of a security. If a fund has net capital gains for the year (after subtracting any capital losses), they are usually declared and paid in December to shareholders of record on
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a specified date that month. If a second distribution is necessary, it is paid the following year.
Tax Information
You should contact your intermediary for the tax information that will be sent to you and reported to the Internal Revenue Service.
If you invest in the fund through a tax-deferred account, such as an individual retirement account, you will not be subject to tax on dividends and distributions from the fund or the sale of fund shares if those amounts remain in the tax-deferred account. You may receive a Form 1099-R or other Internal Revenue Service forms, as applicable, if any portion of the account is distributed to you.
If you invest in the fund through a taxable account, you generally will be subject to tax when:
· You sell fund shares, including an exchange from one fund to another.
· The fund makes dividend or capital gain distributions.
For individual shareholders, a portion of ordinary dividends representing
qualified dividend income received by the fund may be subject to tax at the lower rate applicable
to long-term capital gains, rather than ordinary income. You may report it as qualified dividend
income in computing your taxes, provided you have held the fund shares on which the dividend was
paid for more than 60 days during the
121-day period beginning 60 days before the ex-dividend date.
Ordinary dividends that do not qualify for this lower rate are generally taxable at the investors
marginal income tax rate. This includes the portion of ordinary dividends derived from interest, short-term
capital gains, distributions from nonqualified foreign corporations, and dividends received by the fund
from stocks that were on loan. Little, if any, of the ordinary dividends paid by the Global Real Estate
FundAdvisor Class, Real Estate FundAdvisor Class, or the bond fund Advisor Classes is expected
to qualify for this lower rate.
For corporate shareholders, a portion of ordinary dividends may be eligible for the 70% deduction for dividends received by corporations to the extent the funds income consists of dividends paid by U.S. corporations. Little, if any, of the ordinary dividends paid by the international or bond fund Advisor Classes is expected to qualify for this deduction.
Regular monthly dividends from the Tax-Free Income FundAdvisor Class are expected to be exempt from federal income taxes. Exemption is not guaranteed since the fund has the right under certain conditions to invest in nonexempt securities. You must report your total tax-free income on Internal Revenue Service Form 1040. The Internal Revenue Service uses this information to help determine the tax status of any Social Security payments you may have received during the year. Tax-exempt dividends paid to Social Security recipients may increase the portion of benefits that is subject to tax.
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Beginning in 2013, a 3.8% Medicare contribution tax will be imposed on net investment income, including interest, dividends, and capital gains, of U.S. individuals with income exceeding $200,000 (or $250,000 if married filing jointly) and of estates and trusts.
Taxes on Fund Redemptions
When you sell shares in any fund, you may realize a gain or loss. An exchange from one fund to another is also a sale for tax purposes.
Taxes on Fund Distributions
The
tax treatment of a capital gain distribution is determined by how long the fund held the portfolio securities,
not how long you held the shares in the fund.
Short-term (one year or less) capital gain distributions
are taxable at the same rate as ordinary income, and gains on securities held more than one year are
taxed at the lower rates applicable to long-term capital gains. If you realized a loss on the sale or
exchange of fund shares that you held six months or less, your short-term capital loss must be reclassified
as a long-term capital loss to the extent of any long-term capital gain distributions received during
the period you held the shares. If you realized a loss on the sale or exchange of fund shares held six
months or less, your capital loss is reduced by the tax-exempt dividends, if any, received on those shares.
This reduction, however, does not apply to fund shares acquired after December 22, 2010, if the
fund declares tax-exempt dividends on a daily basis in an amount equal to at least 90% of its net tax-exempt
interest and distributes such dividends at least monthly. For funds investing in foreign securities,
distributions resulting from the sale of certain foreign currencies, currency contracts, and the foreign
currency portion of gains on debt securities are taxed as ordinary income. Net foreign currency losses
may cause monthly or quarterly dividends to be reclassified as a return of capital.
If the fund qualifies and elects to pass through nonrefundable foreign income taxes paid to foreign governments during the year, your portion of such taxes will be reported to you as taxable income. However, you may be able to claim an offsetting credit or deduction on your tax return for those amounts. There can be no assurance that a fund will meet the requirements to pass through foreign income taxes paid.
If a fund holds Build America Bonds or other qualified tax credit bonds and elects to pass through the corresponding interest income and any available tax credits, you will need to report both the interest income and any such tax credits as taxable income. You may be able to claim the tax credits on your federal tax return as an offset to your income tax (including alternative minimum tax) liability, but the tax credits generally are not refundable. There is no assurance, however, that a fund will elect to pass through the income and credits.
For the Tax-Free Income FundAdvisor Class, gains realized on the sale of market discount bonds with maturities beyond one year may be treated as ordinary income
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and cannot be offset by other capital losses. To the extent the fund invests in these securities, the likelihood of a taxable gain distribution will be increased.
For the Retirement Funds, distributions by the underlying funds and changes in asset allocations may result in taxable distributions of ordinary income or capital gains.
Taxable distributions are subject to tax whether reinvested in additional shares or received in cash.
Tax Consequences of Hedging
Entering into certain options, futures, swaps, and forward foreign exchange contracts and transactions may result in the application of the mark-to-market and straddle provisions of the Internal Revenue Code. These provisions could result in a fund being required to distribute gains on such transactions even though it did not close the contracts during the year or receive cash to pay such distributions. The fund may not be able to reduce its distributions for losses on such transactions to the extent of unrealized gains in offsetting positions.
Tax Effect of Buying Shares Before an Income Dividend or Capital Gain Distribution
If you buy shares shortly before or on the record datethe date that establishes you as the person to receive the upcoming distributionyou may receive a portion of the money you just invested in the form of a taxable distribution. Therefore, you may wish to find out a funds record date before investing. In addition, a funds share price may, at any time, reflect undistributed capital gains or income and unrealized appreciation, which may result in future taxable distributions. Such distributions can occur even in a year when the fund has a negative return.
The Advisor Class is a share class of its respective T. Rowe Price fund and is not a separate mutual fund. The funds Advisor Class shares are intended for purchase through various third-party intermediaries, including brokers, banks, insurance companies, retirement plan recordkeepers, and other financial intermediaries that provide various distribution and administrative services.
The Advisor Class is designed for use by investors investing through intermediaries and requires an agreement between the intermediary and T. Rowe Price to be executed prior to investment. Purchases of Advisor Class shares for which the required agreement with T. Rowe Price has not been executed, or that are not made through an eligible intermediary, are subject to rejection or cancellation without prior notice to the intermediary or investor. Existing investments in the Advisor Class shares that are not through an eligible intermediary may be transferred by T. Rowe Price to another class (with lower expenses) in the same fund following notice to the intermediary or shareholder.
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Purchase Conditions for Intermediaries
Nonpayment If the fund receives a check or Automated Clearing House transfer that does not clear or the payment is not received in a timely manner, your purchase may be canceled. The intermediary will be responsible for any losses or expenses incurred by the fund or transfer agent. The funds and their agents have the right to reject or cancel any purchase, exchange, or redemption due to nonpayment.
U.S. Dollars All purchases must be paid for in U.S. dollars; checks must be drawn on U.S. banks.
Sale (Redemption) Conditions
Holds on Immediate Redemptions: 10-Day Hold If an intermediary sells shares that it just purchased and paid for by check or Automated Clearing House transfer, the fund will process the redemption but generally will delay sending the proceeds for up to 10 calendar days to allow the check or transfer to clear. (The 10-day hold does not apply to purchases paid for by bank wire.)
Large Redemptions Large redemptions can adversely affect a portfolio managers ability to implement a funds investment strategy by causing the premature sale of securities that would otherwise be held longer. Therefore, the fund reserves the right (without prior notice) to pay all or part of redemption proceeds with securities from the funds portfolio rather than in cash (redemption in-kind). If this occurs, the securities will be selected by the fund in its absolute discretion, and the redeeming shareholder or account will be responsible for disposing of the securities and bearing any associated costs.
Excessive and Short-Term Trading Policy
Excessive transactions and short-term trading can be harmful to fund shareholders in various ways, such as disrupting a funds portfolio management strategies, increasing a funds trading costs, and negatively affecting its performance. Short-term traders in funds that invest in foreign securities may seek to take advantage of developments overseas that could lead to an anticipated difference between the price of the funds shares and price movements in foreign markets. While there is no assurance that T. Rowe Price can prevent all excessive and short-term trading, the Boards of Directors/Trustees of the T. Rowe Price funds have adopted the following trading limits that are designed to deter such activity and protect the funds shareholders. The funds may revise their trading limits and procedures at any time as the Boards of Directors/Trustees deem necessary or appropriate to better detect short-term trading that may adversely affect the funds, to comply with applicable regulatory requirements, or to impose additional or alternative restrictions.
Subject to certain exceptions, each T. Rowe Price fund restricts a shareholders purchases (including through exchanges) into a fund account for a period of 30 calendar days after the shareholder has redeemed or exchanged out of that same fund account (the 30-Day Purchase Block). The calendar day after the date of
Information About Accounts in T. Rowe Price Funds | 15 |
redemption is considered Day 1 for purposes of computing the period before another purchase may be made.
General Exceptions As of the date of this prospectus, the following types of transactions generally are not subject to the 30-Day Purchase Block:
· Shares purchased or redeemed in money market funds;
· Shares purchased or redeemed through a systematic purchase or withdrawal plan;
· Checkwriting redemptions from bond and money funds;
· Shares purchased through the reinvestment of dividends or capital gain distributions;
· Shares redeemed by the fund to pay fund fees or shareholder account fees;
· Transfers and changes of account registration within the same fund;
· Shares purchased by asset transfer or direct rollover;
· Shares purchased or redeemed through IRA conversions and recharacterizations;
· Shares redeemed to return an excess contribution from a retirement account;
· Transactions in Section 529 college savings plans;
· Shares converted from one share class to another share class in the same fund; and
· Shares of T. Rowe Price funds that are purchased by another T. Rowe Price fund, including shares purchased by T. Rowe Price fund-of-funds products, and shares purchased by discretionary accounts managed by T. Rowe Price or one of its affiliates (please note that shareholders of the investing T. Rowe Price fund are still subject to the policy).
Transactions in certain rebalancing, asset allocation, wrap programs, and other advisory programs, as well as non-T. Rowe Price fund-of-funds products, may also be exempt from the 30-Day Purchase Block, subject to prior written approval by T. Rowe Price.
In addition to restricting transactions in accordance with the 30-Day Purchase Block, T. Rowe Price may, in its discretion, reject (or instruct an intermediary to reject) any purchase or exchange into a fund from a person (which includes individuals and entities) whose trading activity could disrupt the management of the fund or dilute the value of the funds shares, including trading by persons acting collectively (e.g., following the advice of a newsletter). Such persons may be barred, without prior notice, from further purchases of T. Rowe Price funds for a period longer than 30 calendar days or permanently.
Intermediary Accounts Intermediaries may maintain their underlying accounts directly with the fund, although they often establish an omnibus account (one account with the fund that represents multiple underlying shareholder accounts) on behalf of their customers. When intermediaries establish omnibus accounts in the T. Rowe Price funds, T. Rowe Price is not able to monitor the trading activity of the underlying shareholders. However, T. Rowe Price monitors aggregate trading activity at the intermediary (omnibus account) level in an attempt to identify activity that indicates potential excessive or short-term trading. If it detects suspicious trading
T. Rowe Price | 16 |
activity, T. Rowe Price contacts the intermediary and may request personal identifying information and transaction histories for some or all underlying shareholders (including plan participants, if applicable). If T. Rowe Price believes that excessive or short-term trading has occurred, it will instruct the intermediary to impose restrictions to discourage such practices and take appropriate action with respect to the underlying shareholder, including restricting purchases for 30 calendar days or longer. There is no assurance that T. Rowe Price will be able to properly enforce its excessive trading policies for omnibus accounts. Because T. Rowe Price generally relies on intermediaries to provide information and impose restrictions for omnibus accounts, its ability to monitor and deter excessive trading will be dependent upon the intermediaries timely performance of their responsibilities.
T. Rowe Price may allow an intermediary or other third party to maintain restrictions on trading in the T. Rowe Price funds that differ from the 30-Day Purchase Block. An alternative excessive trading policy would be acceptable to T. Rowe Price if it believes that the policy would provide sufficient protection to the T. Rowe Price funds and their shareholders that is consistent with the excessive trading policy adopted by the funds Boards of Directors/Trustees.
If you invest in T. Rowe Price funds through an intermediary, you should review that firms materials carefully or consult with the intermediary directly to determine the trading policy that will apply to your trades in the funds and any other rules or conditions on transactions that may apply. If T. Rowe Price is unable to identify a transaction placed through an intermediary as exempt from the excessive trading policy, the 30-Day Purchase Block may apply.
Retirement Plan
Accounts If shares are held in a retirement plan, generally the
30-Day Purchase Block applies
only to shares redeemed by a participant-directed exchange to another fund. However, the 30-Day Purchase
Block may apply to transactions other than exchanges depending on how shares of the plan are held at
T. Rowe Price or the excessive trading policy applied by your plans recordkeeper. An alternative
excessive trading policy may apply to the T. Rowe Price funds where a retirement plan has its own
policy deemed acceptable to T. Rowe Price. You should contact T. Rowe Price or your plan recordkeeper
to determine which of your transactions are subject to the funds 30-Day Purchase Block or an alternative
policy.
There is no guarantee that T. Rowe Price will be able to identify or prevent all excessive or short-term trades or trading practices.
Signature Guarantees
An intermediary may need to obtain a signature
guarantee in certain situations,
such as:
· Written requests to redeem over $5 million and wire the redemption proceeds to a bank account not on file;
Information About Accounts in T. Rowe Price Funds | 17 |
· Remitting redemption proceeds to any person, address, or bank account not on record; or
· Changing the account registration or broker-dealer of record for an account.
Intermediaries should consult their T. Rowe Price Financial Institution Services representative for specific requirements.
The signature guarantee must be obtained from a financial institution that is a participant in a Medallion signature guarantee program. You can obtain a Medallion signature guarantee from most banks, savings institutions, broker-dealers, and other guarantors acceptable to T. Rowe Price. When obtaining a Medallion signature guarantee, please discuss with the guarantor the dollar amount of your proposed transaction. It is important that the level of coverage provided by the guarantors stamp covers the dollar amount of the transaction or it may be rejected. We cannot accept guarantees from notaries public or organizations that do not provide reimbursement in the case of fraud.
The Advisor Class has adopted a 12b-1 plan under which it pays a fee at a rate of up to 0.25% of its average daily net assets per year to various unaffiliated intermediaries, such as brokers, banks, insurance companies, and retirement plan recordkeepers for distribution and/or shareholder servicing of the Advisor Class shares. Distribution payments may include payments to intermediaries for making the Advisor Class shares available to their customers (e.g., providing the fund with shelf space or inclusion on a preferred list or supermarket platform). Shareholder servicing payments may include payments to intermediaries for providing shareholder support services to existing shareholders of the Advisor Class. These payments may be more or less than the costs incurred by the intermediaries. Because the fees are paid from the Advisor Class net assets on an ongoing basis, they will increase the cost of your investment and, over time, could result in your paying more than with other types of sales charges. The Advisor Class may also separately compensate intermediaries at a rate of up to 0.15% of average daily net assets per year for various recordkeeping and transfer agent services they perform. These services include maintaining separate records for each customer, transmitting net purchase and redemption orders, mailing shareholder confirmations and periodic statements, and providing telephone and Internet support to respond to questions regarding the customers account.
Payment of these fees may influence your financial advisors recommendation of the fund or of any particular share class of the fund.
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How is the fund organized?
T. Rowe Price International Funds, Inc. (the corporation) was incorporated in Maryland in 1979. Currently, the corporation consists of 18 series, each representing a separate pool of assets with different objectives and investment policies. Each is an open-end management investment company, or mutual fund. Mutual funds pool money received from shareholders of each class into a single portfolio and invest it to try to achieve specified objectives. In 2012, the Emerging Markets Corporate Bond Fund issued a separate class of shares known as the Advisor Class.
What is meant by shares?
As with all mutual funds, investors purchase shares when they put money in a fund. These shares are part of a funds authorized capital stock, but share certificates are not issued.
Each share and fractional share entitles the shareholder to:
· Receive a proportional interest in income and capital gain distributions of the class. The income dividends for Advisor Class shares will generally differ from those of the original class to the extent that the expense ratios of the classes differ.
· Cast one vote per share on certain fund matters, including the election of fund directors/trustees, changes in fundamental policies, or approval of changes in the funds management contract. Shareholders of each class have exclusive voting rights on matters affecting only that class.
Do T. Rowe Price funds have annual shareholder meetings?
The funds are not required to hold annual meetings and, to avoid unnecessary costs to fund shareholders, do not do so except when certain matters, such as a change in fundamental policies, must be decided. In addition, shareholders representing at least 10% of all eligible votes may call a special meeting for the purpose of voting on the removal of any fund director or trustee. If a meeting is held and you cannot attend, you can vote by proxy. Before the meeting, the fund will send or make available to you proxy materials that explain the issues to be decided and include instructions on voting by mail or telephone or on the Internet.
Who runs the fund?
General Oversight
The fund is governed by a Board of Directors that meets regularly to review fund investments, performance, expenses, and other business affairs. The Board elects the
More About the Fund | 19 |
funds officers. At least 75% of Board members are independent of T. Rowe Price and its affiliates.
All decisions regarding the purchase and sale of fund investments are made by T. Rowe Pricespecifically by the funds portfolio manager.
Investment Adviser
T. Rowe Price is the funds investment adviser and oversees the selection of the funds investments and management of the funds portfolio. T. Rowe Price is a SEC-registered investment adviser that provides investment management services to individual and institutional investors, and sponsors and serves as adviser and sub-adviser to registered investment companies, institutional separate accounts, and common trust funds. The address for T. Rowe Price is 100 East Pratt Street, Baltimore, Maryland 21202. As of December 31, 2011, T. Rowe Price and its affiliates (the Firm) managed approximately $489 billion for more than 11 million individual and institutional investor accounts.
Portfolio Management
T. Rowe Price has established an Investment Advisory Committee with respect to the fund. The committee chairman has day-to-day responsibility for managing the funds portfolio and works with the committee in developing and executing the funds investment program. The members of the committee are as follows: Michael J. Conelius, Chairman, Carolyn Hoi Che Chu, Bridget A. Ebner, Ian D. Kelson, Christopher C. Loop, and Christopher J. Rothery. The following information describes the chairmans experience during the past five years and provides the year that the chairman first joined the Firm. Mr. Conelius has been chairman since the funds inception in 2012. He joined the Firm in 1988 and his investment experience dates from that time. He has served as a portfolio manager with the Firm throughout the past five years. The Statement of Additional Information provides additional information about the portfolio managers compensation, other accounts managed by the portfolio manager, and the portfolio managers ownership of fund shares.
The Management Fee
This fee has two partsan individual fund fee, which reflects a funds particular characteristics, and a group fee. The group fee, which is designed to reflect the benefits of the shared resources of the T. Rowe Price investment management complex, is calculated daily based on the combined net assets of all T. Rowe Price funds (except the Spectrum Funds, Retirement Funds, TRP Reserve Investment Funds, and any index or private label mutual funds). The group fee schedule (in the following table) is graduated, declining as the asset total rises, so shareholders benefit from the overall growth in mutual fund assets.
T. Rowe Price | 20 |
Group Fee Schedule
0.334%* | First $50 billion |
0.305% | Next $30 billion |
0.300% | Next $40 billion |
0.295% | Next $40 billion |
0.290% | Next $60 billion |
0.285% | Next $80 billion |
0.280% | Thereafter |
* Represents a blended group fee rate containing various breakpoints.
The funds group fee is determined by applying the group fee rate to the funds average daily net assets. On December 31, 2011, the annual group fee rate was 0.30%. The individual fund fee, also applied to the funds average daily net assets, is 0.50%.
The expenses shown in the fee table in Section 1 are generally based on a funds prior fiscal year. In periods of market volatility, assets may decline significantly, causing total annual fund operating expenses to become higher than the numbers shown in the fee table.
A discussion about the factors considered by the Board and its conclusions in approving the funds investment management contract with T. Rowe Price will appear in the funds semiannual report to shareholders for the period ended June 30.
Fund Operations and Shareholder Services
T. Rowe Price provides accounting services to the T. Rowe Price funds. T. Rowe Price Services, Inc., acts as the transfer and dividend disbursing agent and provides shareholder and administrative services to the funds. These companies receive compensation from the funds for their services. All such fees are included in the fees and expenses table under Other expenses and in the funds financial statements.
For purposes of determining whether a particular country is considered a developed market or an emerging market, the fund uses the designation set forth by MSCI Barra, a third-party provider of benchmark indexes and data services for institutions worldwide. In determining the country classification for a particular security, the fund uses the country assigned to the security by MSCI Barra or another unaffiliated third-party data provider.
The fund focuses its investments on bonds issued by emerging markets corporate issuers. Security selection relies heavily on research, which analyzes political and economic trends as well as the creditworthiness of particular issuers. This in-depth
More About the Fund | 21 |
analysis seeks to identify shifts in country fundamentals, and considers the risk adjusted attractiveness of various emerging market countries.
Buying foreign bonds can be difficult and costly for the individual investor, and gaining access to many foreign markets can be complicated. Few investors have the time, the expertise, or the resources to evaluate foreign markets effectively on their own. The professional management, broad diversification, and relative simplicity of mutual funds make them an attractive, low-cost vehicle for this type of investing.
Interest rates vary from country to country depending on local economic conditions and monetary and fiscal policies. By investing in foreign bond markets, investors can benefit from potentially higher yields than U.S. bond markets provide. Therefore, diversifying internationally across various countries can help reduce portfolio volatility and smooth out returns.
As with any mutual fund, there is no guarantee the fund will achieve its objective. The funds share price fluctuates, which means you could lose money in the fund. Funds that invest overseas generally carry more risk than funds that invest strictly in U.S. assets. Some particular risks affecting the fund include the following:
Currency risk This is the risk of a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that foreign currency. The overall impact on a funds holdings can be significant, unpredictable, and long-lasting depending on the currencies represented in the portfolio, how each currency appreciates or depreciates in relation to the U.S. dollar, and whether currency positions are hedged. Foreign currency exchange rates may fluctuate significantly over short periods of time, particularly with respect to emerging markets currencies. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign governments or central banks, or by currency controls or political developments. Although bonds held by the fund may be denominated in U.S. dollars to improve their marketability, this does not protect them from substantial price declines in the face of political and economic turmoil. Currency trends are unpredictable, and to the extent the fund purchases and sells currencies, it will also be subject to the risk that its trading strategies, including efforts at hedging, will not succeed. Furthermore, hedging and trading costs can be significant and reduce fund net asset value, and many emerging market currencies cannot be effectively hedged.
Other risks of foreign investing Risks can result from varying stages of economic and political development, differing regulatory environments, trading days and accounting standards, uncertain tax laws, and higher transaction costs of non-U.S. markets. Investments outside the United States could be subject to governmental actions such as capital or currency controls, nationalization of a company or industry, expropriation of assets, or imposition of high taxes. A trading market may close without warning for extended time periods, preventing a fund from buying or selling securities in that market.
T. Rowe Price | 22 |
Emerging markets risk Investments in emerging markets, which include Africa, parts of Europe and much of Asia, the Middle East, and Central and South America, are subject to the risk of abrupt and severe price declines. The economic and political structures of emerging market countries, in most cases, do not compare favorably with the U.S. or other developed countries in terms of wealth and stability, and their financial markets often lack liquidity. These economies are less developed and can be overly reliant on particular industries and more vulnerable to the ebb and flow of international trade, trade barriers, and other protectionist or retaliatory measures. Certain countries have legacies and periodic episodes of hyperinflation and currency devaluations, particularly Russia and many Latin American nations, and more recently many Asian countries. Governments in many emerging market countries participate to a significant degree in their economies and securities markets. Foreign investments may be restricted and subject to greater government control, including repatriation of sales proceeds. Some countries have histories of instability and upheaval that could cause their governments to act in a detrimental or hostile manner toward private enterprise or foreign investment. Investments in countries or regions that have recently begun moving away from central planning and state-owned industries toward free markets should be regarded as speculative.
While some countries have made progress in economic growth, liberalization, fiscal discipline, and political and social stability, there is no assurance these trends will continue. Significant risks, such as war and terrorism, currently affect some emerging market countries. Fund performance will likely be hurt by exposure to nations in the midst of hyperinflation, currency devaluation, trade disagreements, sudden political upheaval, or interventionist government policies. The volatility of emerging markets may be heightened by the actions (such as significant buying or selling) of a few major investors. For example, substantial decreases in cash flows of mutual funds investing in these markets could significantly affect local securities prices and, therefore, cause fund share prices to decline.
All of these factors make investing in such countries significantly riskier than in other countries and any one of these could cause a funds share price to decline.
Credit risk This is the chance that an issuer of a debt security held by a fund will default (fail to make scheduled payments), potentially reducing the funds income and share price. This risk is increased when a portfolio security is downgraded or the perceived creditworthiness of an issuer or counterparty deteriorates. The risk of default is much greater for emerging market bonds and securities rated as below investment-grade.
Companies and governments issuing lower-rated bonds are not as strong financially as those with higher credit ratings, and their bonds are often viewed as speculative investments. Such issuers are more vulnerable to real or perceived business setbacks and to changes in the economy, such as a recession, that might impair their ability to make timely interest and principal payments. Certain emerging market governments and corporations have in the past defaulted on payment of interest and principal on
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debt they have issued. As a result, your portfolio managers rely heavily on proprietary T. Rowe Price and T. Rowe Price International research when selecting these investments.
Liquidity risk This is the risk that a fund may not be able to sell a holding in a timely manner at a desired price. Sectors of the bond market can experience sudden downturns in trading activity. During periods of reduced market liquidity, the spread between the price at which a security can be bought and the price at which it can be sold can widen, and the fund may not be able to sell a holding readily at a price that reflects what the fund believes it should be worth. Less liquid securities can also become more difficult to value.
Emerging market bonds are generally less liquid than higher-quality bonds issued by companies and governments in developed countries. Consequently, large purchases or sales of certain high-yield, emerging market debt issues may cause significant changes in their prices. Because many of these bonds do not trade frequently, when they do trade, their prices may be substantially higher or lower than had been expected. A lack of liquidity also means that more subjectivity will be used in establishing the fair value of the securities.
Interest rate risk This is the risk that interest rates will increase, causing a decline in bond prices. (Bond prices and interest rates usually move in opposite directions.) Prices fall because the bonds in the funds portfolio become less attractive to other investors when securities with higher yields become available. Generally, the longer the maturity of a security or the longer a bond funds weighted average maturity, the greater its interest rate risk. Because the fund may invest in debt securities of any maturity, it carries more interest rate risk than a fund that invests in shorter-term securities.
Other factors The major factor influencing prices of high-quality bonds is changes in interest rate levels, but this is only one of several factors affecting prices of lower-quality bonds. Because the credit quality of the issuer is lower, such bonds are more sensitive to developments affecting the issuers underlying fundamentals (for example, changes in financial condition or a particular countrys general economy). In addition, the entire bond market in an emerging market can experience sudden and sharp price swings due to a variety of factors, including changes in economic forecasts, stock market activity, large or sustained sales by institutional investors, a high-profile default, a political upheaval of some kind, or just a change in the markets psychology. This type of volatility is usually associated more with stocks than bonds, but investors in lower-quality bonds should also anticipate it.
Since mutual funds can be a major source of demand in certain markets, substantial cash flows into and out of these funds can affect high-yield and emerging market bond prices. If, for example, a significant number of funds were to sell bonds to meet shareholder redemptions, both bond prices and a funds share price could fall more than underlying fundamentals might justify.
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Efforts to reduce risk Consistent with the funds objective, the portfolio manager uses various tools to try to reduce risk and increase total return, including:
· Thorough credit research by our own analysts.
· Analysis of industry, country, and regional fundamentals.
· Adjusting fund duration to try to reduce the drop in the funds price when interest rates rise or to benefit from the rise in price when rates fall.
While most assets will be invested in emerging market corporate bonds, other strategies may be employed that are not considered part of the funds principal investment strategies. Such investments may include emerging market sovereign bonds and, to a limited extent, certain types of derivatives that are consistent with the funds overall investment program. For example, the fund may occasionally use forward currency exchange contracts, credit default swaps, or futures. Forward currency exchange contracts would typically be used to settle trades in a foreign currency, although they could be used to help protect the funds holdings from unfavorable changes in currency exchange rates. Credit default swaps would typically be used to protect the value of certain portfolio holdings or to manage the funds overall exposure to changes in credit quality. Futures would typically be used to manage the funds interest rate exposure or as a tool to help manage cash flows into and out of the fund. Forward currency exchange contracts involve the risk that currency movements will not be accurately predicted, credit default swaps expose the fund to the risks that anticipated changes in the creditworthiness of an issuer or the likelihood of a particular credit event will not be accurately predicted, and futures involve the risk that expected changes in interest rate movements will not be accurately predicted.
A derivative involves risks different from, and possibly greater than, the risks associated with investing directly in the assets on which the derivative is based. Derivatives can be highly volatile, illiquid, and difficult to value, and changes in the value of a derivative may not properly correlate with changes in the value of the underlying asset, reference rate, or index. A fund could be exposed to significant losses if it is unable to close a derivatives position due to the lack of a liquid secondary trading market. Derivatives involve the risk that a counterparty to the derivatives agreement will fail to make required payments or comply with the terms of the agreement. There is also the possibility that limitations or trading restrictions may be imposed by an exchange or government regulation, which could adversely impact the value and liquidity of a derivatives contract subject to such regulation.
Recent legislation calls for a new regulatory framework for the derivatives markets. Although various rules have been proposed, the extent and impact of new regulations are not certain and it is not yet known when such rules may be adopted. New regulations may make the use of derivatives by funds more costly, may limit the availability of certain types of derivatives, and may otherwise adversely affect the value or performance of derivatives used by funds.
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The Statement of Additional Information contains more detailed information about the fund and its investments, operations, and expenses.
This section takes a detailed look at some of the types of fund securities and the various kinds of investment practices that may be used in day-to-day portfolio management. Fund investments are subject to further restrictions and risks described in the Statement of Additional Information.
Shareholder approval is required to substantively change fund objectives. Shareholder approval is also required to change certain investment restrictions noted in the following section as fundamental policies. Portfolio managers also follow certain operating policies that can be changed without shareholder approval. Shareholders will receive at least 60 days prior notice of a change in the policy requiring the fund to normally invest at least 80% of its net assets in corporate bonds of issuers in emerging market countries.
Fund holdings of certain kinds of investments cannot exceed maximum percentages of total assets, which are set forth in this prospectus. For instance, fund investments in certain derivatives are limited to 10% of total assets. While these restrictions provide a useful level of detail about fund investments, investors should not view them as an accurate gauge of the potential risk of such investments. For example, in a given period, a 5% investment in derivatives could have significantly more of an impact on a funds share price than its weighting in the portfolio. The net effect of a particular investment depends on its volatility and the size of its overall return in relation to the performance of all other fund investments.
Certain investment restrictions, such as a required minimum or maximum investment in a particular type of security, are measured at the time a fund purchases a security. The status, market value, maturity, credit quality, or other characteristics of a funds securities may change after they are purchased, and this may cause the amount of a funds assets invested in such securities to exceed the stated maximum restriction or fall below the stated minimum restriction. If any of these changes occur, it would not be considered a violation of the investment restriction and will not require the sale of an investment if it was proper at the time it was made (this exception does not apply to a funds borrowing policy). However, purchases by a fund during the time it is above or below the stated percentage restriction would be made in compliance with applicable restrictions.
Changes in fund holdings, fund performance, and the contribution of various investments are discussed in the shareholder reports.
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Portfolio managers have considerable discretion in choosing investment strategies and selecting securities they believe will help achieve fund objectives.
Types of Portfolio Securities
In seeking to meet its investment objective, fund investments may be made in any type of security or instrument (including certain potentially high-risk derivatives described in this section) whose investment characteristics are consistent with its investment program. The following pages describe various types of fund holdings and investment management practices.
Diversification As a fundamental policy, the fund will not purchase a security if, as a result, with respect to 75% of its total assets, more than 5% of the funds total assets would be invested in securities of a single issuer or more than 10% of the outstanding voting securities of the issuer would be held by the fund. These limitations do not apply to the funds purchase of securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities.
Debt Securities
The funds investments may be in fixed-rate and floating rate debt securities and may include, but shall not be limited to: (1) debt obligations issued or guaranteed by: (a) a foreign sovereign government or one of its agencies, authorities, instrumentalities, or political subdivisions, including a foreign state, province, or municipality, and (b) supranational organizations such as the World Bank, Asian Development Bank, European Investment Bank, and European Economic Community; (2) debt obligations: (a) of foreign banks and bank holding companies, and (b) of domestic banks and corporations issued in non-U.S. dollar denominations; and (3) foreign corporate debt securities, asset-backed securities, and commercial paper. Such securities may take a variety of forms including those issued in the local currency of the issuer, U.S. dollar-denominated bonds, Eurobonds, and Euro-denominated bonds. Normally, the fund will invest substantially all of its assets in bonds issued by emerging markets corporations. The fund may from time to time purchase securities on a when-issued basis, invest in repurchase agreements, and purchase bonds convertible into equities.
Below Investment-Grade Bonds The price and yield of lower-quality (high yield, high-risk) bonds, commonly referred to as junk bonds and below investment-grade emerging market bonds, can be expected to fluctuate more than the price and yield of higher-quality bonds. Investment-grade bonds are those rated from the highest quality (AAA or equivalent) to medium quality (BBB or equivalent), and below investment-grade bonds are those rated BB (or equivalent) and lower. Below investment-grade bonds are considered speculative with respect to the issuers continuing ability to meet principal and interest payments since their issuers are more vulnerable to financial setbacks and recession than more creditworthy issuers. Even BBB rated bonds may have speculative elements as well. The values of below investment-grade bonds often fluctuate more in response to political, regulatory, or
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economic developments than higher quality bonds. Successful investment in lower-medium- and low-quality bonds involves greater investment risk and is highly dependent on careful credit analysis.
Operating policy There is no limit on the funds investments in debt securities that are rated below investment-grade.
While the fund intends to invest primarily in debt securities, it may invest in convertible bonds or equity securities. While some countries or companies may be regarded as favorable investments, pure bond opportunities may be unattractive or limited due to insufficient supply, or legal or technical restrictions. In such cases, the fund may consider equity securities or convertible bonds to gain exposure to such markets.
Preferred Stocks
Stocks represent shares of ownership in a company. Generally, preferred stock has a specified dividend and ranks after bonds and before common stocks in its claim on income for dividend payments and on assets should the company be liquidated. After other claims are satisfied, common stockholders participate in company profits on a pro-rata basis; profits may be paid out in dividends or reinvested in the company to help it grow. Increases and decreases in earnings are usually reflected in a companys stock price, so common stocks generally have the greatest appreciation and depreciation potential of all corporate securities. Unlike common stock, preferred stock does not ordinarily carry voting rights. While most preferred stocks pay a dividend, a fund may decide to purchase preferred stock where the issuer has omitted, or is in danger of omitting, payment of its dividend.
Convertible Securities and Warrants
Investments may be made in debt or preferred equity securities that are convertible into, or exchangeable for, equity securities at specified times in the future and according to a certain exchange ratio. Convertible bonds are typically callable by the issuer, which could in effect force conversion before the holder would otherwise choose. Traditionally, convertible securities have paid dividends or interest at rates higher than common stocks but lower than nonconvertible securities. They generally participate in the appreciation or depreciation of the underlying stock into which they are convertible, but to a lesser degree than common stock. Some convertible securities combine higher or lower current income with options and other features. Warrants are options to buy, directly from the issuer, a stated number of shares of common stock at a specified price anytime during the life of the warrants (generally, two or more years). Warrants can be highly volatile, have no voting rights, and pay no dividends.
Operating policy The fund may invest up to 5% of total assets in preferred stocks and securities that are convertible into, or which carry warrants for, common stocks or other equity securities. Under normal conditions, the fund does not expect to directly purchase common stocks. Any shares of common stock that are received through a
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reorganization, restructuring, exercise, exchange, conversion, or similar action will be sold within a reasonable timeframe taking into consideration market conditions and any legal restrictions.
Loan Participations and Assignments
Large loans to corporations or governments, including governments of less developed countries, may be shared or syndicated among several lenders, usually banks. The fund could participate in such syndicates, or could buy part of a loan, becoming a direct lender. The fund may acquire loans as an assignment from another lender that holds a direct interest in the loan or as a participation interest in another lenders portion of the loan. Participations and assignments involve special types of risk, including limited marketability and the risks of being considered a lender. If a fund purchases a participation, it may only be able to enforce its rights through the lender, and it may assume the credit risk of the lender in addition to the borrower. With assignments, the funds rights against the borrower may be more limited than those held by the original lender. The fund may also make investments in a company through the purchase or execution of a privately negotiated note representing the equivalent of a loan.
Operating policy The fund may invest up to 5% of total assets in loan participations and assignments.
Derivatives and Leverage
A derivative is a financial instrument whose value is derived from an underlying security such as a stock or bond or from a market benchmark, such as an interest rate index. Many types of investments representing a wide range of risks and potential rewards are derivatives, including conventional instruments such as callable bonds, futures, and options, as well as other potentially more complex investments such as swaps and structured notes. The use of derivatives can involve leverage. Leverage has the effect of magnifying returns, positively or negatively. The effect on returns will depend on the extent to which an investment is leveraged. For example, an investment of $1, leveraged at 2 to 1, would have the effect of an investment of $2. Leverage ratios can be higher or lower with a corresponding effect on returns. The fund may use derivatives in certain situations to help accomplish the following: to hedge against a decline in principal value, to increase yield, to manage exposure to changes in interest or currency exchange rates, to invest in eligible asset classes with greater efficiency and at a lower cost than is possible through direct investment, or to adjust portfolio duration or credit risk exposure.
Derivatives that may be used include the following as well as others that combine the risk characteristics and features of futures, options, and swaps:
Futures and Options Futures, a type of potentially high-risk derivative, are often used to manage or hedge risk because they enable the investor to buy or sell an asset in the future at an agreed-upon price. Options, another type of potentially high-risk derivative, give the investor the right (when the investor purchases the option), or the
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obligation (when the investor writes or sells the option), to buy or sell an asset at a predetermined price in the future. Futures and options contracts may be bought or sold for any number of reasons, including: to manage exposure to changes in interest rates, bond prices, foreign currencies, and credit quality; as an efficient means of increasing or decreasing a funds exposure to a specific part or broad segment of the U.S. market or a foreign market; in an effort to enhance income; to protect the value of portfolio securities; to serve as a cash management tool; and to adjust portfolio duration or credit exposure. Call or put options may be purchased or sold on securities, futures, and financial indices.
Futures contracts and options may not always be successful hedges; their prices can be highly volatile; using them could lower fund total return; and the potential loss from the use of futures can exceed a funds initial investment in such contracts.
Operating policies Initial margin deposits on futures and premiums on options used for non-hedging purposes will not exceed 5% of a funds net asset value. The total market value of securities covering call or put options may not exceed 25% of total assets. No more than 5% of total assets will be committed to premiums when purchasing call or put options.
Swaps Fund investments may be made in interest rate, index, total return, credit default, and other types of swap agreements, as well as options on swaps, commonly referred to as swaptions. All of these agreements are considered derivatives and, in certain cases, high-risk derivatives. Interest rate, index, and total return swaps are two-party contracts under which the fund and a counterparty, such as a broker or dealer, agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or indices. Credit default swaps are agreements where one party (the protection buyer) will make periodic payments to another party (the protection seller) in exchange for protection against specified credit events, such as defaults and bankruptcies related to an issuer or underlying credit instrument. Swaps and swaptions can be used for a variety of purposes, including: to manage a funds exposure to changes in interest or foreign currency exchange rates and credit quality; as an efficient means of adjusting a funds exposure to certain markets; in an effort to enhance income or total return or protect the value of portfolio securities; to serve as a cash management tool; and to adjust portfolio duration or credit risk exposure.
There are risks in the use of swaps and swaptions. Swaps could result in losses if interest or foreign currency exchange rates or credit quality changes are not correctly anticipated by the fund. Total return swaps could result in losses if the reference index, security, or investments do not perform as anticipated. Credit default swaps can increase a funds exposure to credit risk and could result in losses if evaluation of the creditworthiness of the counterparty, or of the company or government on which the credit default swap is based, is incorrect. The use of swaps and swaptions may not always be successful. Using them could lower fund total return, their prices can be highly volatile, and the potential loss from the use of swaps can exceed a funds
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initial investment in such instruments. Also, the other party to a swap agreement could default on its obligations or refuse to cash out a funds investment at a reasonable price, which could turn an expected gain into a loss.
Operating policies A swap agreement with any single counterparty will not be entered into if the net amount owed or to be received under existing contracts with that party would exceed 5% of total assets or if the net amount owed or to be received by a fund under all outstanding swap agreements will exceed 10% of total assets. For swaptions, the total market value of securities covering call or put options may not exceed 25% of total assets. No more than 5% of total assets will be committed to premiums when purchasing call or put options.
Currency Derivatives The fund may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through forward currency exchange contracts, which are contracts between two counterparties to exchange one currency for another on a future date at a specified exchange rate. In addition to foreign currency forwards, futures, swaps, and options on foreign currencies may also be used to protect the funds foreign securities from adverse currency movements relative to the U.S. dollar, as well as to gain exposure to currencies and markets expected to increase or decrease in value relative to other currencies or securities.
The fund may attempt to hedge its exposure to potentially unfavorable currency changes. Forward currency contracts will be used primarily to adjust the foreign exchange exposure of the fund with a view to protecting the portfolio from adverse currency movements, based on T. Rowe Prices outlook. However, forward currency contracts can also be used in an effort to benefit from a currency believed to be appreciating in value versus other currencies. The fund may invest in foreign currencies directly without holding any foreign securities denominated in those currencies.
Forward currency contracts involve special risks, including, but not limited to, significant volatility in currency markets, and the risk that in certain markets, particularly emerging markets, it is not possible to engage in effective foreign currency hedging. In addition, such transactions involve the risk that currency movements will not occur as anticipated by T. Rowe Price, which could reduce a funds total return. The fund might be expected to enter into foreign currency transactions under the following circumstances:
Lock In When the fund desires to lock in the U.S. dollar price on the purchase or sale of a security denominated in a foreign currency.
Cross Hedge If a particular currency is expected to decrease against another currency, the fund may sell the currency expected to decrease and purchase a currency that is expected to increase against the currency sold. The funds cross hedging transactions may involve currencies in which the funds holdings are
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denominated. However, the fund is not required to own any securities in the particular currency being purchased or sold.
Direct Hedge If the fund seeks to eliminate substantially all of the risk of owning a particular currency or believes the portfolio could benefit from price appreciation in a given countrys bonds but did not want to hold the currency, it could employ a direct hedge back into the U.S. dollar. In either case, a fund would enter into a forward contract to sell the currency in which a portfolio security is denominated and purchase U.S. dollars at an exchange rate established at the time it initiated the contract. The cost of the direct hedge transaction may offset most, if not all, of the yield advantage offered by the foreign security, but the fund would hope to benefit from an increase (if any) in the value of the bond.
Proxy Hedge In certain circumstances, a different currency may be substituted for the currency in which the investment is denominated, a strategy known as proxy hedging. In this case, the fund, having purchased a security, will sell a currency whose value is believed to be closely linked to the currency in which the security is denominated. This type of hedging entails greater risk than a direct hedge because it is dependent on a stable relationship between the two currencies paired as proxies, and because the relationships can be very unstable at times. The fund may also use these instruments to create a synthetic bondissued in one currency but with the currency component transformed into another currency.
Costs of Hedging When the fund purchases a foreign bond with a higher interest rate than is available on U.S. bonds of a similar maturity, the additional yield on the foreign bond could be substantially lessened if the fund were to enter into a direct hedge by selling the foreign currency and purchasing the U.S. dollar. This is what is known as the cost of hedging. A proxy hedge, which is less costly than a direct hedge, attempts to reduce this cost through an indirect hedge back to the U.S. dollar.
It is important to note that hedging costs are treated as capital transactions and are not, therefore, deducted from a funds dividend distribution and are not reflected in its yield. Instead, such costs will, over time, be reflected in a funds net asset value per share and total return. Hedging may result in the application of the mark-to-market and straddle provisions of the Internal Revenue Code. These provisions could result in an increase (or decrease) in the amount of taxable dividends paid by the funds and could affect whether dividends paid by the funds are classified as capital gains or ordinary income.
Investments in Other Investment Companies
A fund may invest in other investment companies, including open-end funds, closed-end funds, and exchange-traded funds.
A fund may purchase the securities of another investment company to temporarily gain exposure to a portion of the market while awaiting purchase of securities or as an efficient means of gaining exposure to a particular asset class. The fund might also
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purchase shares of another investment company to gain exposure to the securities in the investment companys portfolio at times when the fund may not be able to buy those securities directly. Any investment in another investment company would be consistent with the funds objective and investment program.
The risks of owning another investment company are generally similar to the risks of investing directly in the securities in which that investment company invests. However, an investment company may not achieve its investment objective or execute its investment strategy effectively, which may adversely affect the funds performance. In addition, because closed-end funds and exchange-traded funds trade on a secondary market, their shares may trade at a premium or discount to the actual net asset value of their portfolio securities and their shares may have greater volatility because of the potential lack of liquidity.
As a shareholder of an investment company not sponsored by T. Rowe Price, the fund must pay its pro-rata share of that investment companys fees and expenses. The funds investments in non-T. Rowe Price investment companies are subject to the limits that apply to investments in other funds under the Investment Company Act of 1940 or under any applicable exemptive order.
Illiquid Securities
Some fund holdings may be considered illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold in the ordinary course of business within seven days at approximately the prices at which they are valued. The determination of liquidity involves a variety of factors. Illiquid securities may include private placements that are sold directly to a small number of investors, usually institutions. Unlike public offerings, such securities are not registered with the SEC. Although certain of these securities may be readily sold, for example under Rule 144A of the Securities Act of 1933, others may have resale restrictions and can be illiquid. The sale of illiquid securities may involve substantial delays and additional costs, and a fund may only be able to sell such securities at prices substantially less than what it believes they are worth.
Operating policy Fund investments in illiquid securities are limited to 15% of net assets.
Types of Investment Management Practices
Reserve Position
A certain portion of fund assets will be held in reserves. Fund reserve positions can consist of: 1) shares of a T. Rowe Price internal money fund; 2) short-term, high-quality U.S. and foreign dollar-denominated money market securities, including repurchase agreements; and 3) U.S. dollar or non-U.S. dollar currencies. For temporary, defensive purposes, there is no limit on a funds holdings in reserves. If a fund has significant holdings in reserves, it could compromise the funds ability to achieve its objectives. The reserve position provides flexibility in meeting redemptions, paying expenses and in the timing of new investments, and can serve as
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a short-term defense during periods of unusual market volatility. Non-U.S. dollar reserves are subject to currency risk.
When-Issued Securities and Forwards
A fund may purchase securities on a when-issued or delayed delivery basis or may purchase or sell securities on a forward commitment basis. The price of these securities is fixed at the time of the commitment to buy, but delivery and payment take place after the customary settlement period for that type of security (often a month or more later). During the interim period, the price and yield of the securities can fluctuate, and typically no interest accrues to the purchaser. At the time of delivery, the market value of the securities may be more or less than the purchase or sale price. To the extent the fund remains fully or almost fully invested (in securities with a remaining maturity of more than one year) at the same time it purchases these securities, there will be greater fluctuations in the funds net asset value than if the fund did not purchase them.
Borrowing Money and Transferring Assets
A fund may borrow from banks, other persons, and other T. Rowe Price funds for temporary emergency purposes to facilitate redemption requests, or for other purposes consistent with fund policies as set forth in this prospectus. Such borrowings may be collateralized with fund assets, subject to restrictions.
Fundamental policy Borrowings may not exceed 331/3% of total assets.
Operating policy A fund will not transfer portfolio securities as collateral except as necessary in connection with permissible borrowings or investments, and then such transfers may not exceed 331/3% of total assets. A fund will not purchase additional securities when borrowings exceed 5% of total assets.
Lending of Portfolio Securities
A fund may lend its securities to broker-dealers, other institutions, or other persons to earn additional income. Risks include the potential insolvency of the broker-dealer or other borrower that could result in delays in recovering securities and capital losses. Additionally, losses could result from the reinvestment of collateral received on loaned securities in investments that default or do not perform as well as expected.
Fundamental policy The value of loaned securities may not exceed 331/3% of total assets.
Credit Quality Considerations
The credit quality of many fund holdings is evaluated by rating agencies such as Moodys, Standard & Poors, and Fitch on the basis of the issuers ability to meet all required interest and principal payments. The highest ratings are assigned to issuers perceived to have the lowest credit risks. T. Rowe Price research analysts also evaluate all fund holdings, including those rated by outside agencies. Other things being equal, lower-rated bonds and other debt obligations have higher yields due to
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greater credit risk. High-yield bonds, also called junk bonds, are those rated below BBB.
Credit quality ratings are not guarantees. They are estimates of an issuers financial strength and ability to make interest and principal payments as they come due. Ratings can change at any time due to real or perceived changes in an issuers credit or financial fundamentals.
The following table shows the rating scale used by the major rating agencies. T. Rowe Price considers publicly available ratings but emphasizes its own credit analysis when selecting investments.
Ratings of Corporate Debt Securities
Moodys Investors Service, Inc. | Standard & Poors Corporation | Fitch | Definition | |||||||
Long Term | Aaa | AAA | AAA | Highest quality | ||||||
Aa | AA | AA | High quality | |||||||
A | A | A | Upper-medium grade | |||||||
Baa | BBB | BBB | Medium grade | |||||||
Ba | BB | BB | Speculative | |||||||
B | B | B | Highly speculative | |||||||
Caa | CCC | CCC | Vulnerable to default | |||||||
Ca | CC | CC | Default is imminent | |||||||
C | C | C | Probably in default | |||||||
Moodys | S&P | Fitch Ratings | ||||||||
Commercial Paper | P-1 | Superior quality | A-1+ A-1 | Extremely strong quality Strong quality | F-1+ F-1 | Exceptionally strong quality Very strong quality | ||||
P-2 | Strong quality | A-2 | Satisfactory quality | F-2 | Good credit quality | |||||
P-3 | Acceptable quality | A-3 B C | Adequate quality Speculative quality Doubtful quality | F-3 | Fair credit quality |
Portfolio Turnover
Turnover is an indication of frequency of trading. A fund will not generally trade in securities for short-term profits, but when circumstances warrant, securities may be purchased and sold without regard to the length of time held. Each time a fund purchases or sells a security, it incurs a cost. This cost is reflected in its net asset value but not in its operating expenses. The higher the turnover rate, the higher the transaction costs and the greater the impact on a funds total return. Higher turnover can also increase the possibility of taxable capital gain distributions.
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Each T. Rowe Price funds portfolio holdings are disclosed on a regular basis in its semiannual and annual shareholder reports, and on Form N-Q, which is filed with the SEC within 60 days of the funds first and third fiscal quarter-end. The money funds also file detailed month-end portfolio holdings information with the SEC each month. Such information will be made available to the public 60 days after the end of the month to which the information pertains. In addition, the funds disclose their calendar quarter-end portfolio holdings on troweprice.com 15 calendar days after each quarter. Under certain conditions, up to 5% of a funds holdings may be included in this portfolio list without being individually identified. Generally, securities would not be individually identified if they are being actively bought or sold and it is determined that the quarter-end disclosure of the holding could be harmful to the fund. A security will not be excluded for these purposes from a funds quarter-end holdings disclosure for more than one year. Money funds also disclose their month-end portfolio holdings on troweprice.com five business days after each month. The quarter-end portfolio holdings will remain on the website for one year and the month-end money fund portfolio holdings will remain on the website for six months. Each fund also discloses its 10 largest holdings on troweprice.com on the seventh business day after each month-end. These holdings are listed in alphabetical order along with the aggregate percentage of the funds total assets that these 10 holdings represent. Each monthly top 10 list will remain on the website for six months. A description of T. Rowe Prices policies and procedures with respect to the disclosure of portfolio information is in the Statement of Additional Information.
Investing With T. Rowe Price | 4 | |
If you are purchasing fund shares through a third-party intermediary, contact the intermediary for information regarding its policies on purchasing, exchanging, and redeeming fund shares, as well as initial and subsequent investment minimums. |
Tax Identification | The intermediary must provide T. Rowe Price with its certified Social Security or employer identification number. Otherwise, federal law requires the funds to withhold a percentage of dividends, capital gain distributions, and redemptions and may subject the intermediary or account holder to an Internal Revenue Service fine. If this information is not received within 60 days after the account is established, the account may be redeemed at the funds net asset value on the redemption date. |
All
initial and subsequent investments by intermediaries should be made by bank wire or electronic payment.
For more information, contact Financial Institution Services by calling |
Important Information About Opening an Account | Opening a New Account |
Pursuant to federal law, all financial institutions must obtain, verify, and record information that identifies each person or entity that opens an account. |
| When an account is opened, the name, residential street address, date of birth, and Social Security or employer identification number for each account owner and person(s) opening an account on behalf of others (such as custodians, agents, trustees, or other authorized signers) must be provided. Corporate and other institutional accounts require documents showing the existence of the entity (such as articles of incorporation or partnership agreements) to open an account. Certain other |
Investing With T. Rowe Price | 37 |
|
| fiduciary accounts (such as trusts or power of attorney arrangements) require documentation, which may include an original or certified copy of the trust agreement or power of attorney to open an account. For more information, call Financial Institution Services. |
T. Rowe Price will use this information to verify the identity of the person(s)/entity opening the account. An account cannot be opened until all of this information is received. If the identity of the account holder cannot be verified, T. Rowe Price is authorized to take any action permitted by law. (See Rights Reserved by the Funds.) |
Intermediaries should call Financial Institution Services for an account number, assignment to a dedicated service representative, and wire transfer instructions. |
In order to obtain an account number, the intermediary must supply the name, Social Security or employer identification number, and business street address for the account. |
Intermediaries should complete a New Account form and mail it, with proper documentation identifying your firm, to one of the appropriate addresses listed below. Intermediaries must also enter into a separate agreement with the fund or its agent. The funds are generally available only to investors residing in the United States. |
via U.S. Postal Service |
via private carriers/overnight
services |
Note: Please use the correct address to avoid a delay in opening your new account. |
T. Rowe Price | 38 |
$100 minimum per fund account for all additional purchases including those made through Automatic Asset Builder |
By Wire | Intermediaries should call Financial Institution Services or access troweprice.com for wire transfer instructions. For purchases by wire, the wire must be received by T. Rowe Price by the close of the New York Stock Exchange (normally 4 p.m. ET) to receive that days share price. There is no assurance that you will receive the share price for the same day the wire was initiated. |
Exchange Service | Money can be moved from one account to an existing, identically registered account or a new identically registered account can be opened. Intermediaries should call their Financial Institution Services representative for more information or to place a trade. For exchange policies, please see Transaction Procedures and Special RequirementsExcessive and Short-Term Trading Policy. |
Redemptions | Unless otherwise indicated, redemption proceeds will be wired to the intermediarys designated bank. Intermediaries should contact their Financial Institution Services representative. |
Some of the T. Rowe Price funds may impose a redemption fee. Check the funds prospectus under Contingent Redemption Fee in Pricing Shares and Receiving Sale Proceeds. The fee is paid to the fund. |
If your account has no activity in it for a certain period of time, your intermediary may be required to transfer your account to the appropriate state under its abandoned property laws. |
Investing With T. Rowe Price | 39 |
T. Rowe Price funds and their agents, in their sole discretion, reserve the following rights: (1) to waive or lower investment minimums; (2) to accept initial purchases by telephone; (3) to refuse any purchase or exchange order; (4) to cancel or rescind any purchase or exchange order placed through an intermediary, no later than the business day after the order is received by the intermediary (including, but not limited to, orders deemed to result in excessive trading, market timing, or 5% ownership); (5) to cease offering fund shares at any time to all or certain groups of investors; (6) to freeze any account and suspend account services when notice has been received of a dispute regarding the ownership of the account or a legal claim against an account, or if there is reason to believe a fraudulent transaction may occur; (7) to otherwise modify the conditions of purchase and modify or terminate any services at any time; (8) to waive any wire, small account, maintenance, or fiduciary fees charged to a group of shareholders; (9) to act on instructions reasonably believed to be genuine; (10) to involuntarily redeem an account at the net asset value calculated the day the account is redeemed, in cases of threatening conduct, suspected fraudulent or illegal activity, or if the fund or its agent is unable, through its procedures, to verify the identity of the person(s) or entity opening an account; and (11) for money funds seeking a stable share price, to suspend redemptions and postpone the payment of proceeds to facilitate an orderly liquidation of the fund. |
T. Rowe Price | 40 |
In the course of doing business with T. Rowe Price, you share personal and financial information with us. We treat this information as confidential and recognize the importance of protecting access to it.
You may provide information when communicating or transacting business with us in writing, electronically, or by phone. For instance, information may come from applications, requests for forms or literature, and your transactions and account positions with us. On occasion, such information may come from consumer reporting agencies and those providing services to us.
We do not sell information about current or former customers to any third parties, and we do not disclose it to third parties unless necessary to process a transaction, service an account, or as otherwise permitted by law. We may share information within the T. Rowe Price family of companies in the course of providing or offering products and services to best meet your investing needs. We may also share that information with companies that perform administrative or marketing services for T. Rowe Price, with a research firm we have hired, or with a business partner, such as a bank or insurance company with which we are developing or offering investment products. When we enter into such a relationship, our contracts restrict the companies use of our customer information, prohibiting them from sharing or using it for any purposes other than those for which they were hired.
We maintain physical, electronic, and procedural safeguards to protect your personal information. Within T. Rowe Price, access to such information is limited to those who need it to perform their jobs, such as servicing your accounts, resolving problems, or informing you of new products or services. Finally, our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in strict confidence.
This Privacy Policy applies to the following T. Rowe Price family of companies: T. Rowe Price Associates, Inc.; T. Rowe Price Advisory Services, Inc.; T. Rowe Price Investment Services, Inc.; T. Rowe Price Savings Bank; T. Rowe Price Trust Company; and the T. Rowe Price Funds.
A Statement of Additional Information for the T. Rowe Price family of funds has been filed with the SEC and is incorporated by reference into this prospectus. Further information about fund investments, including a review of market conditions and the managers recent investment strategies and their impact on performance during the past fiscal year, is available in the annual and semiannual shareholder reports. To obtain free copies of any of these documents, call your intermediary.
Fund information and Statements of Additional Information are also available from the Public Reference Room of the SEC. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-551-8090. Fund reports and other fund information are available on the EDGAR Database on the SECs Internet site at http://www.sec.gov. Copies of this information may be obtained, after paying a duplicating fee, by electronic request at publicinfo@sec.gov, or by writing the Public Reference Room, Washington, D.C. 20549-1520.
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
1940 Act File No. 811-2958 TBD 5/24/12
STATEMENT OF ADDITIONAL INFORMATION |
This is the Statement of Additional Information for all of the funds listed below. It is divided into two parts (Part I and Part II). Part I generally contains information that is particular to each fund, while Part II contains information that generally applies to all of the funds in the T. Rowe Price family of funds (Price Funds).
The date of this Statement of Additional Information (SAI) is May 24, 2012.
T. ROWE PRICE BALANCED FUND, INC. (RPBAX)
T. ROWE PRICE BLUE CHIP GROWTH FUND, INC. (TRBCX)
T. Rowe Price Blue Chip Growth FundAdvisor Class (PABGX)
T. Rowe Price Blue Chip Growth FundR Class (RRBGX)
T. ROWE PRICE CALIFORNIA TAX-FREE INCOME TRUST
California Tax-Free Bond Fund (PRXCX)
California Tax-Free Money Fund (PCTXX)
T. ROWE PRICE CAPITAL APPRECIATION FUND (PRWCX)
T. Rowe Price Capital Appreciation FundAdvisor Class (PACLX)
T. ROWE PRICE CAPITAL OPPORTUNITY FUND, INC. (PRCOX)
T. Rowe Price Capital Opportunity FundAdvisor Class (PACOX)
T. Rowe Price Capital Opportunity FundR Class (RRCOX)
T. ROWE PRICE CORPORATE INCOME FUND, INC. (PRPIX)
T. ROWE PRICE DIVERSIFIED MID-CAP GROWTH FUND, INC. (PRDMX)
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND, INC. (PRDSX)
T. ROWE PRICE DIVIDEND GROWTH FUND, INC. (PRDGX)
T. Rowe Price Dividend Growth FundAdvisor Class (TADGX)
T. ROWE PRICE EQUITY INCOME FUND (PRFDX)
T. Rowe Price Equity Income FundAdvisor Class (PAFDX)
T. Rowe Price Equity Income FundR Class (RRFDX)
T. ROWE PRICE FINANCIAL SERVICES FUND, INC. (PRISX)
T. ROWE PRICE FLOATING RATE FUND, INC. (PRFRX)
T. Rowe Price Floating Rate FundAdvisor Class (PAFRX)
T. ROWE PRICE GLOBAL REAL ESTATE FUND, INC. (TRGRX)
T. Rowe Price Global Real Estate FundAdvisor Class (PAGEX)
T. ROWE PRICE GLOBAL TECHNOLOGY FUND, INC. (PRGTX)
T. ROWE PRICE GNMA FUND (PRGMX)
T. ROWE PRICE GROWTH & INCOME FUND, INC. (PRGIX)
T. ROWE PRICE GROWTH STOCK FUND, INC. (PRGFX)
T. Rowe Price Growth Stock FundAdvisor Class (TRSAX)
T. Rowe Price Growth Stock FundR Class (RRGSX)
T. ROWE PRICE HEALTH SCIENCES FUND, INC. (PRHSX)
T. ROWE PRICE HIGH YIELD FUND, INC. (PRHYX)
T. Rowe Price High Yield FundAdvisor Class (PAHIX)
T. ROWE PRICE INDEX TRUST, INC.
T. Rowe Price Equity Index 500 Fund (PREIX)
T. Rowe Price Extended Equity Market Index Fund (PEXMX)
T. Rowe Price Total Equity Market Index Fund (POMIX)
T. ROWE PRICE INFLATION FOCUSED BOND FUND, INC. (formerly T. Rowe Price Short-Term
Income Fund, Inc.)
T. ROWE PRICE INFLATION PROTECTED BOND FUND, INC. (PRIPX)
T. ROWE PRICE INSTITUTIONAL EQUITY FUNDS, INC. (Institutional Equity Funds)
T. Rowe Price Institutional Large-Cap Core Growth Fund (TPLGX)
T. Rowe Price Institutional Large-Cap Growth Fund (TRLGX)
T. Rowe Price Institutional Large-Cap Value Fund (TILCX)
T. Rowe Price Institutional Mid-Cap Equity Growth Fund (PMEGX)
T. Rowe Price Institutional Small-Cap Stock Fund (TRSSX)
T. Rowe Price Institutional U.S. Structured Research Fund (TRISX)
TBD 5/24/12
T. ROWE PRICE INSTITUTIONAL INCOME FUNDS, INC.
T. Rowe Price Institutional Core Plus Fund (TICPX)
T. Rowe Price Institutional Core Plus FundF Class (PFCPX)
T. Rowe Price Institutional Floating Rate Fund (RPIFX)
T. Rowe Price Institutional Floating Rate FundF Class (PFFRX)
T. Rowe Price Institutional High Yield Fund (TRHYX)
T. ROWE PRICE INSTITUTIONAL INTERNATIONAL FUNDS, INC.
T. Rowe Price Institutional Africa & Middle East Fund (TRIAX)
T. Rowe Price Institutional Concentrated International Equity Fund (RPICX)
T. Rowe Price Institutional Emerging Markets Bond Fund (TREBX)
T. Rowe Price Institutional Emerging Markets Equity Fund (IEMFX)
T. Rowe Price Institutional International Core Equity Fund (TRCEX)
T. Rowe Price Institutional International Growth Equity Fund (PRFEX)
T. Rowe Price Institutional Global Equity Fund TRGSX)
T. Rowe Price Institutional Global Large-Cap Equity Fund (RPIGX)
T. Rowe Price Institutional International Bond Fund (RPIIX)
T. ROWE PRICE INTERNATIONAL FUNDS, INC.
T. Rowe Price Africa & Middle East Fund (TRAMX)
T. Rowe Price Emerging Europe Fund (formerly T. Rowe Price Emerging Europe & Mediterranean
Fund) (TREMX)
T. Rowe Price Emerging Markets Bond Fund (PREMX)
T. Rowe Price Emerging Markets Corporate Bond Fund (TBD)
T. Rowe Price Emerging Markets Corporate Bond FundAdvisor Class (TBD)
T. Rowe Price Emerging Markets Local Currency Bond Fund (PRELX)
T. Rowe Price Emerging Markets Local Currency Bond FundAdvisor Class (PAELX)
T. Rowe Price Emerging Markets Stock Fund (PRMSX)
T. Rowe Price European Stock Fund (PRESX)
T. Rowe Price Global Infrastructure Fund (TRGFX)
T. Rowe Price Global Infrastructure FundAdvisor Class (PAGFX)
T. Rowe Price Global Large-Cap Stock Fund (RPGEX)
T. Rowe Price Global Large-Cap Stock FundAdvisor Class (PAGLX)
T. Rowe Price Global Stock Fund (PRGSX)
T. Rowe Price Global Stock FundAdvisor Class (PAGSX)
T. Rowe Price International Bond Fund® (RPIBX)
T. Rowe Price International Bond FundAdvisor Class (PAIBX)
T. Rowe Price International Discovery Fund (PRIDX)
T. Rowe Price International Growth & Income Fund (TRIGX)
T. Rowe Price International Growth & Income FundAdvisor Class (PAIGX)
T. Rowe Price International Growth & Income FundR Class (RRIGX)
T. Rowe Price International Stock Fund (PRITX)
T. Rowe Price International Stock FundAdvisor Class (PAITX)
T. Rowe Price International Stock FundR Class (RRITX)
T. Rowe Price Japan Fund (PRJPX)
T. Rowe Price Latin America Fund (PRLAX)
T. Rowe Price New Asia Fund (PRASX)
T. Rowe Price Overseas Stock Fund (TROSX)
T. ROWE PRICE INTERNATIONAL INDEX FUND, INC.
T. Rowe Price International Equity Index Fund (PIEQX)
T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND, INC. (PRMTX)
T. ROWE PRICE MID-CAP GROWTH FUND, INC. (RPMGX)
T. Rowe Price Mid-Cap Growth FundAdvisor Class (PAMCX)
T. Rowe Price Mid-Cap Growth FundR Class (RRMGX)
T. ROWE PRICE MID-CAP VALUE FUND, INC. (TRMCX)
T. Rowe Price Mid-Cap Value FundAdvisor Class (TAMVX)
T. Rowe Price Mid-Cap Value FundR Class (RRMVX)
2
T. ROWE PRICE MULTI-SECTOR ACCOUNT PORTFOLIOS, INC. (Multi-Sector Account Portfolios)
T. Rowe Price Emerging Markets Bond Multi-Sector Account Portfolio
T. Rowe Price Emerging Markets Local Multi-Sector Account Portfolio
T. Rowe Price Floating Rate Multi-Sector Account Portfolio
T. Rowe Price High Yield Multi-Sector Account Portfolio
T. Rowe Price Investment-Grade Corporate Multi-Sector Account Portfolio
T. Rowe Price Mortgage-Backed Securities Multi-Sector Account Portfolio
T. ROWE PRICE NEW AMERICA GROWTH FUND (PRWAX)
T. Rowe Price New America Growth FundAdvisor Class (PAWAX)
T. ROWE PRICE NEW ERA FUND, INC. (PRNEX)
T. ROWE PRICE NEW HORIZONS FUND, INC. (PRNHX)
T. ROWE PRICE NEW INCOME FUND, INC. (PRCIX)
T. Rowe Price New Income FundAdvisor Class (PANIX)
T. Rowe Price New Income FundR Class (RRNIX)
T. ROWE PRICE PERSONAL STRATEGY FUNDS, INC. (Personal Strategy Funds)
T. Rowe Price Personal Strategy Balanced Fund (TRPBX)
T. Rowe Price Personal Strategy Growth Fund (TRSGX)
T. Rowe Price Personal Strategy Income Fund (PRSIX)
T. ROWE PRICE PRIME RESERVE FUND, INC. (PRRXX)
T. ROWE PRICE REAL ASSETS FUND, INC. (PRAFX)
T. ROWE PRICE REAL ESTATE FUND, INC. (TRREX)
T. Rowe Price Real Estate FundAdvisor Class (PAREX)
T. ROWE PRICE RESERVE INVESTMENT FUNDS, INC. (TRP Reserve Investment Funds)
T. Rowe Price Government Reserve Investment Fund
(TRP Government Reserve
Investment Fund)
T. Rowe Price Reserve Investment Fund (TRP Reserve Investment Fund)
T. ROWE PRICE RETIREMENT FUNDS, INC. (Retirement Funds)
T. Rowe Price Retirement 2005 Fund (TRRFX)
T. Rowe Price Retirement 2005 FundAdvisor Class (PARGX)
T. Rowe Price Retirement 2005 FundR Class (RRTLX)
T. Rowe Price Retirement 2010 Fund (TRRAX)
T. Rowe Price Retirement 2010 FundAdvisor Class (PARAX)
T. Rowe Price Retirement 2010 FundR Class (RRTAX)
T. Rowe Price Retirement 2015 Fund (TRRGX)
T. Rowe Price Retirement 2015 FundAdvisor Class (PARHX)
T. Rowe Price Retirement 2015 FundR Class (RRTMX)
T. Rowe Price Retirement 2020 Fund (TRRBX)
T. Rowe Price Retirement 2020 FundAdvisor Class (PARBX)
T. Rowe Price Retirement 2020 FundR Class (RRTBX)
T. Rowe Price Retirement 2025 Fund (TRRHX)
T. Rowe Price Retirement 2025 FundAdvisor Class (PARJX)
T. Rowe Price Retirement 2025 FundR Class (RRTNX)
T. Rowe Price Retirement 2030 Fund (TRRCX)
T. Rowe Price Retirement 2030 FundAdvisor Class (PARCX)
T. Rowe Price Retirement 2030 FundR Class (RRTCX)
T. Rowe Price Retirement 2035 Fund (TRRJX)
T. Rowe Price Retirement 2035 FundAdvisor Class (PARKX)
T. Rowe Price Retirement 2035 FundR Class (RRTPX)
T. Rowe Price Retirement 2040 Fund (TRRDX)
T. Rowe Price Retirement 2040 FundAdvisor Class (PARDX)
T. Rowe Price Retirement 2040 FundR Class (RRTDX)
T. Rowe Price Retirement 2045 Fund (TRRKX)
T. Rowe Price Retirement 2045 FundAdvisor Class (PARLX)
T. Rowe Price Retirement 2045 FundR Class (RRTRX)
T. Rowe Price Retirement 2050 Fund (TRRMX)
T. Rowe Price Retirement 2050 FundAdvisor Class (PARFX)
T. Rowe Price Retirement 2050 FundR Class (RRTFX)
3
T. Rowe Price Retirement 2055 Fund (TRRNX)
T. Rowe Price Retirement 2055 FundAdvisor Class (PAROX)
T. Rowe Price Retirement 2055 FundR Class RRTVX)
T. Rowe Price Retirement Income Fund (TRRIX)
T. Rowe Price Retirement Income FundAdvisor Class (PARIX)
T. Rowe Price Retirement Income FundR Class (RRTIX)
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND, INC. (PRSCX)
T. Rowe Price Science & Technology FundAdvisor Class (PASTX)
T. ROWE PRICE SHORT-TERM BOND FUND, INC. (PRWBX)
T. Rowe Price Short-Term Bond FundAdvisor Class (PASHX)
T. ROWE PRICE SMALL-CAP STOCK FUND, INC. (OTCFX)
T. Rowe Price Small-Cap Stock FundAdvisor Class (PASSX)
T. ROWE PRICE SMALL-CAP VALUE FUND, INC. (PRSVX)
T. Rowe Price Small-Cap Value FundAdvisor Class (PASVX)
T. ROWE PRICE SPECTRUM FUND, INC. (Spectrum Funds)
Spectrum Growth Fund (PRSGX)
Spectrum Income Fund (RPSIX)
Spectrum International Fund (PSILX)
T. ROWE PRICE STATE TAX-FREE INCOME TRUST
Georgia Tax-Free Bond Fund (GTFBX)
Maryland Short-Term Tax-Free Bond Fund (PRMDX)
Maryland Tax-Free Bond Fund (MDXBX)
Maryland Tax-Free Money Fund (TMDXX)
New Jersey Tax-Free Bond Fund (NJTFX)
New York Tax-Free Bond Fund (PRNYX)
New York Tax-Free Money Fund (NYTXX)
Virginia Tax-Free Bond Fund (PRVAX)
T. ROWE PRICE STRATEGIC INCOME FUND, INC. (PRSNX)
T. Rowe Price Strategic Income FundAdvisor Class (PRSAX)
T. ROWE PRICE SUMMIT FUNDS, INC. (Summit Income Funds)
T. Rowe Price Summit Cash Reserves Fund (TSCXX)
T. Rowe Price Summit GNMA Fund (PRSUX)
T. ROWE PRICE SUMMIT MUNICIPAL FUNDS, INC. (Summit Municipal Funds)
T. Rowe Price Summit Municipal Money Market Fund (TRSXX)
T. Rowe Price Summit Municipal Intermediate Fund (PRSMX)
T. Rowe Price Summit Municipal Income Fund (PRINX)
T. ROWE PRICE TAX-EFFICIENT FUNDS, INC. (Tax-Efficient Funds)
T. Rowe Price Tax-Efficient Equity Fund (PREFX)
T. ROWE PRICE TAX-EXEMPT MONEY FUND, INC. (PTEXX)
T. ROWE PRICE TAX-FREE HIGH YIELD FUND, INC. (PRFHX)
T. ROWE PRICE TAX-FREE INCOME FUND, INC. (PRTAX)
T. Rowe Price Tax-Free Income FundAdvisor Class (PATAX)
T. ROWE PRICE TAX-FREE SHORT-INTERMEDIATE FUND, INC. (PRFSX)
T. ROWE PRICE U.S. BOND ENHANCED INDEX FUND, INC. (formerly T. Rowe Price
U.S. Bond Index Fund, Inc.) (PBDIX)
T. ROWE PRICE U.S. LARGE-CAP CORE FUND, INC. (TRULX)
T. Rowe Price U.S. Large-Cap Core FundAdvisor Class (PAULX)
T. ROWE PRICE U.S. TREASURY FUNDS, INC. (U.S. Treasury Funds)
U.S. Treasury Intermediate Fund (PRTIX)
U.S. Treasury Long-Term Fund (PRULX)
U.S. Treasury Money Fund (PRTXX)
T. ROWE PRICE VALUE FUND, INC. (TRVLX)
T. Rowe Price Value FundAdvisor Class (PAVLX)
4
Mailing Address:
T. Rowe Price Investment Services, Inc.
100
East Pratt Street
Baltimore, Maryland 21202
1-800-638-5660
This SAI is not a prospectus but should be read in conjunction with the appropriate current fund prospectus, which may be obtained from T. Rowe Price Investment Services, Inc. (Investment Services).
Each funds financial statements for its most recent fiscal period and the Report of Independent Registered Public Accounting Firm are included in each funds annual or semiannual report and incorporated by reference into this SAI. The Emerging Markets Bond Multi-Sector Account Portfolio, Emerging Markets Corporate Bond Fund, Emerging Markets Corporate Bond FundAdvisor Class, Emerging Markets Local Currency Bond Fund, Emerging Markets Local Currency Bond FundAdvisor Class, Emerging Markets Local Multi-Sector Account Portfolio, Floating Rate Fund, Floating Rate FundAdvisor Class, Floating Rate Multi-Sector Account Portfolio, High Yield Multi-Sector Account Portfolio, Investment-Grade Corporate Multi-Sector Account Portfolio, and Mortgage-Backed Securities Multi-Sector Account Portfolio have not been in existence long enough to have complete financial statements.
If you would like a prospectus or an annual or semiannual shareholder report for a fund of which you are not a shareholder, please call 1-800-638-5660 and it will be sent to you at no charge. Please read this material carefully.
5
PART I TABLE OF CONTENTS
Page
Management of the Funds | |
Principal Holders of Securities | |
Investment Management Agreements | |
Other Shareholder Services |
Page
Distributor for the Funds | |
Portfolio Transactions | |
Independent Registered Public | |
Accounting Firm | |
Part II |
References to the following are as indicated:
Internal Revenue Code of 1986, as amended (Code)
Investment Company Act of 1940, as amended (1940 Act)
Moodys Investors Service, Inc. (Moodys)
Securities Act of 1933, as amended (1933 Act)
Securities and Exchange Commission (SEC)
Securities Exchange Act of 1934, as amended (1934 Act)
Standard & Poors Corporation (S&P)
T. Rowe Price Associates, Inc. (T. Rowe Price)
T. Rowe Price Hong Kong Limited (Price Hong Kong)
T. Rowe Price International Ltd (T. Rowe Price International)
T. Rowe Price Singapore Private Ltd. (Price Singapore)
Advisor Class
The Advisor Class is a share class of its respective T. Rowe Price fund and is not a separate mutual fund. The Advisor Class shares are designed to be sold only through brokers, dealers, banks, insurance companies, and other financial intermediaries that provide various distribution and administrative services.
F Class
The F Class is a share class of its respective T. Rowe Price fund and is not a separate mutual fund. The F Class shares are designed to be sold only through financial advisors and certain third-party intermediaries, including brokers, banks, insurance companies, retirement plan recordkeepers, and other financial intermediaries that provide various distribution and administrative services. F Class shares are not intended to be offered by intermediaries through a mutual fund supermarket platform.
R Class
The R Class is a share class of its respective T. Rowe Price fund and is not a separate mutual fund. The R Class shares are designed to be sold only through various third-party intermediaries that offer employer-sponsored defined contribution retirement plans and certain other accounts, including brokers, dealers, banks, insurance companies, retirement plan recordkeepers, and others.
Inflation Focused Bond Fund, Multi-Sector Account Portfolios, and TRP Reserve Investment Funds
These funds are not available for direct purchase by members of the public. Shares of these funds may only be purchased by or on behalf of mutual funds, section 529 college savings plans, or certain institutional client accounts for which T. Rowe Price or one of its affiliates has discretionary investment authority.
Institutional Funds
The Institutional Funds have a $1,000,000 initial investment minimum (except for their F Class shares) and are designed for institutional investors. Institutional investors typically include banks, pension plans, and trust and investment companies.
6
Below is a table showing the prospectus and shareholder report dates for each fund. The table also lists each funds category, which should be used to identify groups of funds that are referenced throughout this SAI.
Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
Africa & Middle East | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Balanced | Blended | Dec 31 | Dec 31 | June 30 | May 1 |
Blue Chip Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Blue Chip Growth FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Blue Chip Growth FundR Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
California Tax-Free Bond | State Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
California Tax-Free Money | State Tax-Free Money | Feb 28 | Feb 28 | Aug 30 | July 1 |
Capital Appreciation | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Capital Appreciation FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Capital Opportunity | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Capital Opportunity FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Capital Opportunity FundR Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Corporate Income | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Diversified Mid-Cap Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Diversified Small-Cap Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Dividend Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Dividend Growth FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Europe | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Emerging Markets Bond | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Markets Corporate Bond | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Markets Corporate Bond FundAdvisor Class | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Markets Bond Multi-Sector Account Portfolio | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Markets Local Currency Bond | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Markets Local Currency Bond FundAdvisor Class | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Markets Local Multi-Sector Account Portfolio | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Emerging Markets Stock | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Equity Income | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Equity Income FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Equity Income FundR Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Equity Index 500 | Index Equity | Dec 31 | Dec 31 | June 30 | May 1 |
7
Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
European Stock | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Extended Equity Market Index | Index Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Financial Services | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Floating Rate | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Floating Rate FundAdvisor Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Floating Rate Multi-Sector Account Portfolio | Taxable Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Georgia Tax-Free Bond | State Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Global Infrastructure | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Global Infrastructure FundAdvisor Class | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Global Large-Cap Stock | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Global Large-Cap Stock FundAdvisor Class | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Global Real Estate | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Global Real Estate FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Global Stock | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Global Stock FundAdvisor Class | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Global Technology | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
GNMA | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
TRP Government Reserve Investment | Taxable Money | May 31 | May 31 | Nov 30 | Oct 1 |
Growth & Income | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Growth Stock | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Growth Stock FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Growth Stock FundR Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Health Sciences | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
High Yield | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
High Yield FundAdvisor Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
High Yield Multi-Sector Account Portfolio | Taxable Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Inflation Focused Bond | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Inflation Protected Bond | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Institutional Africa & Middle East | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Institutional Concentrated International Equity | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Institutional Core Plus | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Institutional Core Plus-F Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Institutional Emerging Markets Bond | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Institutional Emerging Markets Equity | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Institutional Floating Rate | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Institutional Floating Rate-F Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Institutional Global Equity | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
8
Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
Institutional Global Large-Cap Equity | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Institutional High Yield | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Institutional International Bond | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
Institutional International Core Equity | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Institutional International Growth Equity | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Institutional Large-Cap Core Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Institutional Large-Cap Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Institutional Large-Cap Value | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Institutional Mid-Cap Equity Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Institutional Small-Cap Stock | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Institutional U.S. Structured Research | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
International Bond | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
International Bond FundAdvisor Class | International Bond | Dec 31 | Dec 31 | June 30 | May 1 |
International Discovery | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
International Equity Index | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
International Growth & Income | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
International Growth & Income FundAdvisor Class | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
International Growth & Income FundR Class | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
International Stock | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
International Stock FundAdvisor Class | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
International Stock FundR Class | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Investment-Grade Corporate Multi-Sector Account Portfolio | Taxable Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Japan | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Latin America | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Maryland Short-Term Tax-Free Bond | State Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Maryland Tax-Free Bond | State Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Maryland Tax-Free Money | State Tax-Free Money | Feb 28 | Feb 28 | Aug 30 | July 1 |
Media & Telecommunications | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Mid-Cap Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Mid-Cap Growth FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Mid-Cap Growth FundR Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Mid-Cap Value | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
9
Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
Mid-Cap Value FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Mid-Cap Value FundR Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Mortgage-Backed Securities Multi-Sector Account Portfolio | Taxable Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
New America Growth | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
New America Growth FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
New Asia | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
New Era | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
New Horizons | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
New Income | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
New Income FundAdvisor Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
New Income FundR Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
New Jersey Tax-Free Bond | State Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
New York Tax-Free Bond | State Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
New York Tax-Free Money | State Tax-Free Money | Feb 28 | Feb 28 | Aug 30 | July 1 |
Overseas Stock | International Equity | Oct 31 | Oct 31 | Apr 30 | March 1 |
Personal Strategy Balanced | Blended | May 31 | May 31 | Nov 30 | Oct 1 |
Personal Strategy Growth | Blended | May 31 | May 31 | Nov 30 | Oct 1 |
Personal Strategy Income | Blended | May 31 | May 31 | Nov 30 | Oct 1 |
Prime Reserve | Taxable Money | May 31 | May 31 | Nov 30 | Oct 1 |
Real Assets Fund | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Real Estate | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Real Estate FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
TRP Reserve Investment | Taxable Money | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2005 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2005 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2005 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2010 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2010 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2010 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2015 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2015 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2015 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2020 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2020 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2020 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2025 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2025 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
10
Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
Retirement 2025 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2030 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2030 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2030 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2035 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2035 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2035 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2040 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2040 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2040 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2045 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2045 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2045 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2050 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2050 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2050 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2055 | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2055 FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement 2055 FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement Income | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement Income FundAdvisor Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Retirement Income FundR Class | Fund-of-Funds | May 31 | May 31 | Nov 30 | Oct 1 |
Science & Technology | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Science & Technology FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Short-Term Bond | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Short-Term Bond FundAdvisor Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Small-Cap Stock | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Small-Cap Stock FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Small-Cap Value | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Small-Cap Value FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Spectrum Growth | Fund-of-Funds | Dec 31 | Dec 31 | June 30 | May 1 |
Spectrum Income | Fund-of-Funds | Dec 31 | Dec 31 | June 30 | May 1 |
Spectrum International | Fund-of-Funds | Dec 31 | Dec 31 | June 30 | May 1 |
Strategic Income | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
11
Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
Strategic Income FundAdvisor Class | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
Summit Cash Reserves | Taxable Money | Oct 31 | Oct 31 | Apr 30 | March 1 |
Summit GNMA | Taxable Bond | Oct 31 | Oct 31 | Apr 30 | March 1 |
Summit Municipal Income | Tax-Free Bond | Oct 31 | Oct 31 | Apr 30 | March 1 |
Summit Municipal Intermediate | Tax-Free Bond | Oct 31 | Oct 31 | Apr 30 | March 1 |
Summit Municipal Money Market | Tax-Free Money | Oct 31 | Oct 31 | Apr 30 | March 1 |
Tax-Efficient Equity | Equity | Feb 28 | Feb 28 | Aug 30 | July 1 |
Tax-Exempt Money | Tax-Free Money | Feb 28 | Feb 28 | Aug 30 | July 1 |
Tax-Free High Yield | Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Tax-Free Income | Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Tax-Free Income FundAdvisor Class | Tax Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Tax-Free Short-Intermediate | Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
Total Equity Market Index | Index Equity | Dec 31 | Dec 31 | June 30 | May 1 |
U.S. Bond Enhanced Index | Index Bond | Oct 31 | Oct 31 | Apr 30 | March 1 |
U.S. Large-Cap Core | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
U.S. Large-Cap Core FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
U.S. Treasury Intermediate | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
U.S. Treasury Long-Term | Taxable Bond | May 31 | May 31 | Nov 30 | Oct 1 |
U.S. Treasury Money | Taxable Money | May 31 | May 31 | Nov 30 | Oct 1 |
Value | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Value FundAdvisor Class | Equity | Dec 31 | Dec 31 | June 30 | May 1 |
Virginia Tax-Free Bond | State Tax-Free Bond | Feb 28 | Feb 28 | Aug 30 | July 1 |
The officers and directors (the term director is used to refer to directors or trustees, as applicable) of the Price Funds are listed below. Unless otherwise noted, the address of each is 100 East Pratt Street, Baltimore, Maryland 21202.
Each fund is overseen by a Board of Directors/Trustees (Board) that meets regularly to review a wide variety of matters affecting the funds, including performance, investment programs, compliance matters, advisory fees and expenses, service providers, and other business affairs. The Boards elect the funds officers and are responsible for performing various duties imposed on them by the 1940 Act, the laws of Maryland or Massachusetts, and other laws. At least 75% of the Boards members are independent of T. Rowe Price and its affiliates. Each of the independent directors serves on the Board of each Price Fund. The directors who are also employees or officers of T. Rowe Price are referred to as inside or interested directors. Except as indicated, each inside director or officer has been an employee of T. Rowe Price or its affiliates for five or more years. Each Board currently has three standing committees, a Committee of Independent Directors, a Joint Audit Committee, and an Executive Committee, each as described in the following paragraphs.
Edward C. Bernard, an inside director, is the Chairman of the Board of each fund. The independent directors of each fund have designated a Lead Independent Director, who functions as a liaison between the Chairman of the Board and the other independent directors. The Lead Independent Director presides at all executive sessions of the independent directors, reviews and provides input on Board meeting agendas and materials, and typically represents the independent directors in discussions with T. Rowe Price management. Anthony W. Deering currently serves as Lead Independent Director. Each funds Board has determined that its
12
leadership and committee structure is appropriate because the Board believes that it sets the proper tone for the relationship between the fund, on the one hand, and T. Rowe Price or its affiliates and the funds other principal service providers, on the other, and facilitates the exercise of the Boards independent judgment in evaluating and managing the relationships. In addition, the structure efficiently allocates responsibility among committees and the full Board.
Like other mutual funds, the funds are subject to risks, including investment, compliance, operational and valuation risks, among others. The Board oversees risk as part of its oversight of the funds. Risk oversight is addressed as part of various Board and committee activities. The Board, directly or through its committees, interacts with and reviews reports from, among others, the investment adviser or its affiliates, the funds Chief Compliance Officer, the funds independent registered public accounting firm, legal counsel, and internal auditors for T. Rowe Price or its affiliates, as appropriate, regarding risks faced by the funds and the risk management programs of the investment adviser and certain other service providers. Also, the Joint Audit Committee receives periodic reports from members of the advisers Risk Management Oversight Committee on the significant risks inherent to the advisers business, including aggregate investment risks, reputational risk, business continuity risk, and operational risk. The actual day-to-day risk management functions with respect to the funds are subsumed within the responsibilities of the investment advisers and other service providers (depending on the nature of the risk), who carry out the funds investment management and business affairs. Although the risk management policies of T. Rowe Price, and its affiliates and the funds other service providers are reasonably designed to be effective, those policies and their implementation vary among service providers over time, and there is no guarantee that they will be effective. Not all risks that may affect the funds can be identified. Processes and controls developed may not eliminate or mitigate the occurrence or effects of all risks, and some risks may be simply beyond any control of the funds, T. Rowe Price or its affiliates or other service providers.
The Committee of Independent Directors, which consists of all of the independent directors of the funds, is responsible for selecting candidates for election as independent directors to fill vacancies on each funds Board. The committee will consider written recommendations from shareholders for possible nominees. Shareholders should submit their recommendations to the secretary of the funds. The committee held four formal meetings in 2011. The committee is chaired by the Lead Independent Director.
The Joint Audit Committee is composed of Jeremiah E. Casey, Anthony W. Deering, John G. Schreiber, and Mark R. Tercek, all independent directors. Jeremiah E. Casey currently serves as chairman of the Joint Audit Committee. The Joint Audit Committee holds two regular meetings during each fiscal year, at which time it meets with the independent registered public accounting firm of the Price Funds to review: (1) the services provided; (2) the findings of the most recent audits; (3) managements response to the findings of the most recent audits; (4) the scope of the audits to be performed; (5) the accountants fees; and (6) any accounting questions relating to particular areas of the Price Funds operations or the operations of parties dealing with the Price Funds, as circumstances indicate. The Joint Audit Committee met three times in 2011.
The funds Executive Committee, consisting of the funds interested director(s), has been authorized by its respective Board to exercise all powers of the Boards to manage the funds in the intervals between meetings of the Boards, except the powers prohibited by statute from being delegated. All actions of the Executive Committee must be approved in advance by one independent director and reviewed after the fact by the full Board. The Executive Committee for each fund does not hold regularly scheduled meetings. The Executive Committee did not need to take any action on behalf of any funds during 2011.
Each Board has concluded that, based on each directors experience, qualifications, attributes or skills on an individual basis and in combination with those of the other directors, each director should serve on the Board. Attributes common to all directors include their ability to review critically, evaluate, question and discuss information provided to them, to interact effectively with the various service providers to the funds, and to exercise reasonable business judgment in the performance of their duties as directors. In addition, the Board has taken into account the actual service and commitment of the directors during their tenure in concluding that each should continue to serve. A directors ability to perform his or her duties effectively may have been attained through his or her educational background or professional training; business, consulting, public service or academic positions; experience from service as a director of the Price Funds, public companies, or
13
non-profit entities or other organizations; or other experiences. Set forth below is a brief discussion of the specific experience, qualifications, attributes, or skills of each director that led the Board to conclude that he or she should serve as a director.
Messrs. Deering, Dick and Schreiber have each served as a director of Price Funds for more than 19 years, and Messrs. Casey and Rodgers and Ms. Horn have each served as a director of Price Funds for more than 6 years, including in each case as members and/or Chairs of Board committees. Mr. Tercek has been a director of the Price Funds since 2009. He has approximately 24 years of experience in the financial services industry and has been the chief executive officer of a non-profit entity since 2008. Dr. Brody has been a director of the Price Funds since 2009. He has substantial experience in the public health and research fields, as well as academia, and brings a diverse perspective to the Board. In addition, specific experience and qualifications of the independent directors with respect to their occupations and directorships of public companies and other investment companies are set forth in the following table.
Independent Directors(a)
Name, Year of Birth, and Number | Principal
Occupation(s) | Directorships |
William R. Brody 1944 137 portfolios | President and Trustee, Salk Institute for Biological Studies (2009 to present); President and Trustee, Johns Hopkins University (1996 to 2009); Chairman of Executive Committee and Trustee, John Hopkins Health System (1996 to 2009) | Novartis, Inc. (2009 to present); IBM (2007 to present) |
Jeremiah E. Casey 1940 137 portfolios | Retired | None |
Anthony W. Deering 1945 137 portfolios | Chairman, Exeter Capital, LLC, a private investment firm (2004 to present) | Under Armour (2008 to present); Vornado Real Estate Investment Trust (2004 to present); Mercantile Bankshares (2002 to 2007); Deutsche Bank North America (2004 to present) |
Donald W. Dick, Jr. 1943 137 portfolios | Principal, EuroCapital Partners, LLC, an acquisition and management advisory firm (1995 to present) | None |
Karen N. Horn 1943 137 portfolios | Senior Managing Director, Brock Capital Group, an advisory and investment banking firm (2004 to present) | Eli Lilly and Company (1987 to present); Simon Property Group (2004 to present); Norfolk Southern (2008 to present); Fannie Mae (2006 to 2008) |
Theo C. Rodgers 1941 137 portfolios | President, A&R Development Corporation (1977 to present) | None |
John G. Schreiber 1946 137 portfolios | Owner/President, Centaur Capital Partners, Inc., a real estate investment company (1991 to present); Cofounder and Partner, Blackstone Real Estate Advisors, L.P. (1992 to present) | General Growth Properties, Inc. (2010 to present) |
14
Name, Year of Birth, and Number | Principal
Occupation(s) | Directorships |
Mark R. Tercek 1957 137 portfolios | President and Chief Executive Officer, The Nature Conservancy (2008 to present); Managing Director, The Goldman Sachs Group, Inc. (1984 to 2008) | None |
(a) All information about the directors was current as of December 31, 2011, except for the number of portfolios, which is current as of the date of this SAI.
Inside Directors(a)
The following persons are considered interested persons of the funds because they also serve as officers of the funds and T. Rowe Price or its affiliates. No more than two inside directors serve as directors of any fund.
The Board invites nominations from each funds investment adviser for persons to serve as interested directors, and the Board reviews and approves these nominations. Each of the current interested directors is a senior executive officer of T. Rowe Price and T. Rowe Price Group, Inc., as well as certain of their affiliates. Mr. Bernard has served as a director of all Price Funds and has been Chairman of the Board for all Price Funds since 2006. Mr. Gitlin became a director of certain Price Funds in 2010, and Messrs. Laporte and Rogers have served as directors of certain Price Funds since 1985 and 2006, respectively, in each case serving as members of the Executive Committee. In addition, specific experience and qualifications of the interested directors with respect to their occupations and directorships of public companies and other investment companies are set forth in the following table.
Name, Year of Birth, and Number | Principal
Occupation(s) | Directorships |
Edward C. Bernard 1956 137 portfolios | Director and Vice President, T. Rowe Price; Vice Chairman of the Board, Director, and Vice President, T. Rowe Price Group, Inc.; Chairman of the Board, Director, and President, T. Rowe Price Investment Services, Inc.; Chairman of the Board and Director, T. Rowe Price Retirement Plan Services, Inc., T. Rowe Price Savings Bank, and T. Rowe Price Services, Inc.; Chairman of the Board, Chief Executive Officer, and Director, T. Rowe Price International; Chief Executive Officer, Chairman of the Board, Director, and President, T. Rowe Price Trust Company Chairman of the Board, all funds | None |
Michael C. Gitlin 1970 46 portfolios | Director of Fixed Income, T. Rowe Price (2009 to present); Global Head of Trading, T. Rowe Price (2007 to 2009); Head of U.S. Equity Sales, Citigroup Global Markets (2005 to 2007) Vice President, Price Hong Kong, Price Singapore, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International; President, Multi-Sector Account Portfolios | None |
15
Name, Year of Birth, and Number | Principal
Occupation(s) | Directorships |
John H. Laporte; CFA 1945 16 portfolios | Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company Executive Vice President, Spectrum Funds; Vice President, Diversified Small-Cap Growth Fund, Health Sciences Fund, New Horizons Fund, Personal Strategy Funds, and Retirement Funds | None |
Brian C. Rogers; CFA, CIC 1955 75 portfolios | Chief Investment Officer, Director, and Vice President, T. Rowe Price; Chairman of the Board, Chief Investment Officer, Director, and Vice President, T. Rowe Price Group, Inc.; Vice President, T. Rowe Price Trust Company President, Equity Income Fund and Institutional Equity Funds; Vice President, Personal Strategy Funds, Retirement Funds, Spectrum Funds, and Value Fund | None |
(a) All information about the directors was current as of December 31, 2011, except for the number of portfolios, which is current as of the date of this SAI.
Retirement and Spectrum Funds (individually, a Fund-of-Funds and collectively, Funds-of-Funds)
The management of the business and affairs of the Funds-of-Funds is the responsibility of the Board. In exercising their responsibilities, the Board, among other things, will refer to the Special Servicing Agreement and policies and guidelines included in an Application for an Exemptive Order (and accompanying Notice and Order) issued by the SEC in connection with the Spectrum Funds (and which also applies to Retirement Funds). A majority of directors of the Funds-of-Funds are independent. However, the directors and officers of the Funds-of-Funds and certain directors and officers of T. Rowe Price and its affiliates also serve in similar positions with most of the various Price Funds in which the Retirement and Spectrum Funds invest (collectively, underlying Price funds). Thus, if the interests of the Funds-of-Funds and the underlying Price funds were ever to become divergent, it is possible that a conflict of interest could arise and affect how this latter group of persons fulfill their fiduciary duties to the Funds-of-Funds and the underlying Price funds. The directors of Funds-of-Funds believe they have structured the Funds-of-Funds to avoid these concerns. However, a situation could conceivably occur where proper action for the Funds-of-Funds could be adverse to the interests of an underlying Price fund, or the reverse could occur. If such a possibility arises, the directors and officers of the affected funds and the directors and officers of T. Rowe Price will carefully analyze the situation and take all steps they believe reasonable to minimize and, where possible, eliminate the potential conflict.
Term of Office and Length of Time Served
The directors serve until retirement, resignation, or election of a successor. The following table shows the year from which each director has served on each funds Board (or that of the corporation or trust of which the fund is a part).
Independent Directors | |||||||||
Fund/Corporation/Trust | Number of portfolios | Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek |
Balanced | 1 | 2009 | 2005 | 2001 | 1991 | 2003 | 2005 | 2001 | 2009 |
Blue Chip Growth | 1 | 2009 | 2005 | 2001 | 1993 | 2003 | 2005 | 2001 | 2009 |
16
Independent Directors | |||||||||
Fund/Corporation/Trust | Number of portfolios | Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek |
California Tax-Free Income Trust | 2 | 2009 | 2006 | 1986 | 2001 | 2003 | 2005 | 1992 | 2009 |
Capital Appreciation | 1 | 2009 | 2005 | 2001 | 1986 | 2003 | 2005 | 2001 | 2009 |
Capital Opportunity | 1 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
Corporate Income | 1 | 2009 | 2006 | 1995 | 2001 | 2003 | 2005 | 1995 | 2009 |
Diversified Mid-Cap Growth | 1 | 2009 | 2005 | 2003 | 2003 | 2003 | 2005 | 2003 | 2009 |
Diversified Small-Cap Growth | 1 | 2009 | 2005 | 2001 | 1997 | 2003 | 2005 | 2001 | 2009 |
Dividend Growth | 1 | 2009 | 2005 | 2001 | 1992 | 2003 | 2005 | 2001 | 2009 |
Equity Income | 1 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
Financial Services | 1 | 2009 | 2005 | 2001 | 1996 | 2003 | 2005 | 2001 | 2009 |
Floating Rate | 1 | 2011 | 2011 | 2011 | 2011 | 2011 | 2011 | 2011 | 2011 |
Global Real Estate | 1 | 2009 | 2008 | 2008 | 2008 | 2008 | 2008 | 2008 | 2009 |
Global Technology | 1 | 2009 | 2005 | 2001 | 2000 | 2003 | 2005 | 2001 | 2009 |
GNMA | 1 | 2009 | 2006 | 1985 | 2001 | 2003 | 2005 | 1992 | 2009 |
Growth & Income | 1 | 2009 | 2005 | 2001 | 1982 | 2003 | 2005 | 2001 | 2009 |
Growth Stock | 1 | 2009 | 2005 | 2001 | 1980 | 2003 | 2005 | 2001 | 2009 |
Health Sciences | 1 | 2009 | 2005 | 2001 | 1995 | 2003 | 2005 | 2001 | 2009 |
High Yield | 1 | 2009 | 2006 | 1984 | 2001 | 2003 | 2005 | 1992 | 2009 |
Index Trust | 3 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
Inflation Focused Bond | 1 | 2009 | 2006 | 2006 | 2006 | 2006 | 2006 | 2006 | 2009 |
Inflation Protected Bond | 1 | 2009 | 2006 | 2002 | 2002 | 2003 | 2005 | 2002 | 2009 |
Institutional Equity | 6 | 2009 | 2005 | 2001 | 1996 | 2003 | 2005 | 2001 | 2009 |
Institutional Income | 3 | 2009 | 2006 | 2002 | 2002 | 2003 | 2005 | 2002 | 2009 |
Institutional International | 9 | 2009 | 2006 | 1991 | 1989 | 2003 | 2006 | 2001 | 2009 |
International | 18 | 2009 | 2006 | 1991 | 1988 | 2003 | 2006 | 2001 | 2009 |
International Index | 1 | 2009 | 2006 | 2000 | 2000 | 2003 | 2006 | 2001 | 2009 |
Media & Telecommunications | 1 | 2009 | 2005 | 2001 | 1997 | 2003 | 2005 | 2001 | 2009 |
Mid-Cap Growth | 1 | 2009 | 2005 | 2001 | 1992 | 2003 | 2005 | 2001 | 2009 |
Mid-Cap Value | 1 | 2009 | 2005 | 2001 | 1996 | 2003 | 2005 | 2001 | 2009 |
Multi-Sector Account Portfolios | 6 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 |
New America Growth | 1 | 2009 | 2005 | 2001 | 1985 | 2003 | 2005 | 2001 | 2009 |
New Era | 1 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
New Horizons | 1 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
New Income | 1 | 2009 | 2006 | 1980 | 2001 | 2003 | 2005 | 1992 | 2009 |
Personal Strategy | 3 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
Prime Reserve | 1 | 2009 | 2006 | 1979 | 2001 | 2003 | 2005 | 1992 | 2009 |
Real Assets | 1 | 2010 | 2010 | 2010 | 2010 | 2010 | 2010 | 2010 | 2010 |
Real Estate | 1 | 2009 | 2005 | 2001 | 1997 | 2003 | 2005 | 2001 | 2009 |
TRP Reserve Investment | 2 | 2009 | 2006 | 1997 | 2001 | 2003 | 2005 | 1997 | 2009 |
Retirement | 12 | 2009 | 2005 | 2002 | 2002 | 2003 | 2005 | 2002 | 2009 |
Science & Technology | 1 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
17
Independent Directors | |||||||||
Fund/Corporation/Trust | Number of portfolios | Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek |
Short-Term Bond | 1 | 2009 | 2006 | 1983 | 2001 | 2003 | 2005 | 1992 | 2009 |
Small-Cap Stock | 1 | 2009 | 2005 | 2001 | 1992 | 2003 | 2005 | 2001 | 2009 |
Small-Cap Value | 1 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
Spectrum | 3 | 2009 | 2005 | 2001 | 1999 | 2003 | 2005 | 2001 | 2009 |
State Tax-Free Income Trust | 8 | 2009 | 2006 | 1986 | 2001 | 2003 | 2005 | 1992 | 2009 |
Strategic Income | 1 | 2009 | 2008 | 2008 | 2008 | 2008 | 2008 | 2008 | 2009 |
Summit | 2 | 2009 | 2006 | 1993 | 2001 | 2003 | 2005 | 1993 | 2009 |
Summit Municipal | 3 | 2009 | 2006 | 1993 | 2001 | 2003 | 2005 | 1993 | 2009 |
Tax-Efficient | 1 | 2009 | 2005 | 2001 | 1997 | 2003 | 2005 | 2001 | 2009 |
Tax-Exempt Money | 1 | 2009 | 2006 | 1983 | 2001 | 2003 | 2005 | 1992 | 2009 |
Tax-Free High Yield | 1 | 2009 | 2006 | 1984 | 2001 | 2003 | 2005 | 1992 | 2009 |
Tax-Free Income | 1 | 2009 | 2006 | 1983 | 2001 | 2003 | 2005 | 1992 | 2009 |
Tax-Free Short-Intermediate | 1 | 2009 | 2006 | 1983 | 2001 | 2003 | 2005 | 1992 | 2009 |
U.S. Bond Enhanced Index | 1 | 2009 | 2006 | 2000 | 2001 | 2003 | 2005 | 2000 | 2009 |
U.S. Large-Cap Core | 1 | 2009 | 2009 | 2009 | 2009 | 2009 | 2009 | 2009 | 2009 |
U.S. Treasury | 3 | 2009 | 2006 | 1989 | 2001 | 2003 | 2005 | 1992 | 2009 |
Value | 1 | 2009 | 2005 | 2001 | 1994 | 2003 | 2005 | 2001 | 2009 |
Inside Directors | |||||
Fund/Corporation/Trust | Number of portfolios | Bernard | Gitlin | Laporte | Rogers |
Balanced | 1 | 2006 | | | 2006 |
Blue Chip Growth | 1 | 2006 | | | 2006 |
California Tax-Free Income Trust | 2 | 2006 | 2010 | | |
Capital Appreciation | 1 | 2006 | | | 2006 |
Capital Opportunity | 1 | 2006 | | 1994 | |
Corporate Income | 1 | 2006 | 2010 | | |
Diversified Mid-Cap Growth | 1 | 2006 | | 2006 | |
Diversified Small-Cap Growth | 1 | 2006 | | 1997 | |
Dividend Growth | 1 | 2006 | | | 2006 |
Equity Income | 1 | 2006 | | | 2006 |
Financial Services | 1 | 2006 | | | 2006 |
Floating Rate | 1 | 2011 | 2011 | | |
Global Real Estate | 1 | 2008 | | | 2008 |
Global Technology | 1 | 2006 | | | 2006 |
GNMA | 1 | 2006 | 2010 | | |
Growth & Income | 1 | 2006 | | | 2006 |
Growth Stock | 1 | 2006 | | | 2006 |
Health Sciences | 1 | 2006 | | 1995 | |
18
Inside Directors | |||||
Fund/Corporation/Trust | Number of portfolios | Bernard | Gitlin | Laporte | Rogers |
High Yield | 1 | 2006 | 2010 | | |
Index Trust | 3 | 2006 | | | 2006 |
Inflation Focused Bond | 1 | 2006 | 2010 | | |
Inflation Protected Bond | 1 | 2006 | 2010 | | |
Institutional Equity | 6 | 2006 | | | 2006 |
Institutional Income | 3 | 2006 | 2010 | | |
Institutional International | 9 | 2006 | | | 2006 |
International | 18 | 2006 | | | 2006 |
International Index | 1 | 2006 | | | 2006 |
Media & Telecommunications | 1 | 2006 | | | 2006 |
Mid-Cap Growth | 1 | 2006 | | | 2006 |
Mid-Cap Value | 1 | 2006 | | | 2006 |
Multi-Sector Account Portfolios | 6 | 2012 | 2012 | | |
New America Growth | 1 | 2006 | | 1985 | |
New Era | 1 | 2006 | | | 2006 |
New Horizons | 1 | 2006 | | 1988 | |
New Income | 1 | 2006 | 2010 | | |
Personal Strategy | 3 | 2006 | | | 2006 |
Prime Reserve | 1 | 2006 | 2010 | | |
Real Assets | 1 | 2010 | | | 2010 |
Real Estate | 1 | 2006 | | | 2006 |
TRP Reserve Investment | 2 | 2006 | 2010 | | |
Retirement | 12 | 2006 | | | 2006 |
Science & Technology | 1 | 2006 | | 1988 | |
Short-Term Bond | 1 | 2006 | 2010 | | |
Small-Cap Stock | 1 | 2006 | | 1994 | |
Small-Cap Value | 1 | 2006 | | 1994 | |
Spectrum | 3 | 2006 | | | 2006 |
State Tax-Free Income Trust | 8 | 2006 | 2010 | | |
Strategic Income | 1 | 2008 | 2010 | | |
Summit | 2 | 2006 | 2010 | | |
Summit Municipal | 3 | 2006 | 2010 | | |
Tax-Efficient | 1 | 2006 | | | 2006 |
Tax-Exempt Money | 1 | 2006 | 2010 | | |
Tax-Free High Yield | 1 | 2006 | 2010 | | |
Tax-Free Income | 1 | 2006 | 2010 | | |
Tax-Free Short-Intermediate | 1 | 2006 | 2010 | | |
U.S. Bond Enhanced Index | 1 | 2006 | 2010 | | |
19
Inside Directors | |||||
Fund/Corporation/Trust | Number of portfolios | Bernard | Gitlin | Laporte | Rogers |
U.S. Large-Cap Core | 1 | 2009 | | | 2009 |
U.S. Treasury | 3 | 2006 | 2010 | | |
Value | 1 | 2006 | | | 2006 |
Officers
Fund | Name | Position Held |
All funds | Roger L. Fiery III Gregory S. Golczewski David Oestreicher Deborah D. Seidel Julie L. Waples Gregory K. Hinkle Patricia B. Lippert John R. Gilner | Vice President Vice President Vice President Vice President Vice President Treasurer Secretary Chief Compliance Officer |
Fund | Name | Position
Held |
Balanced | Charles M. Shriver E. Frederick Bair Kimberly E. DeDominicis Anna M. Dopkin Mark S. Finn Paul A. Karpers Robert M. Larkins Raymond A. Mills Larry J. Puglia Guido F. Stubenrauch Richard T. Whitney (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Blue Chip Growth | Larry J. Puglia P. Robert Bartolo Peter J. Bates Ryan N. Burgess G. Mark Bussard Jonathan Chou Shawn T. Driscoll David J. Eiswert Paul D. Greene II Thomas J. Huber Michael M. Lasota George A. Marzano Timothy E. Parker Robert W. Sharps Taymour R. Tamaddon (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
20
Fund | Name | Position Held |
California Tax-Free Income Trust California Tax-Free Bond California Tax-Free Money | Hugh D. McGuirk Joseph K. Lynagh Konstantine B. Mallas Steven G. Brooks M. Helena Condez G. Richard Dent Charles E. Emrich Alan D. Levenson Linda A. Murphy Timothy G. Taylor Michael K. Sewell Chen Shao (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
Capital Appreciation | David R. Giroux Francisco Alonso Ryan N. Burgess Mark S. Finn Paul D. Greene II John D. Linehan Paul M. Massaro Heather K. McPherson Joseph M. Milano Sudhir Nanda Robert T. Quinn, Jr. Gabriel Solomon William J. Stromberg Taymour R. Tamaddon Susan G. Troll Eric L. Veiel Tamara P. Wiggs (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Capital Opportunity | Anna M. Dopkin Kennard W. Allen Francisco Alonso Peter J. Bates Ann M. Holcomb Jennifer Martin Philip A. Nestico Timothy E. Parker Charles G. Pepin Jason B. Polun Robert T. Quinn, Jr. Gabriel Solomon Joshua K. Spencer Taymour R. Tamaddon Eric L. Veiel (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
21
Fund | Name | Position Held |
Corporate Income | David A. Tiberii Steve Boothe Steven G. Brooks Michael J. Grogan Alan D. Levenson Michael J. McGonigle Vernon A. Reid, Jr. Theodore E. Robson Edward A. Wiese Thea N. Williams (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Diversified Mid-Cap Growth | Donald J. Peters Donald J. Easley Kennard W. Allen Peter J. Bates Brian W.H. Berghuis Sudhir Nanda Timothy E. Parker Amit Seth John F. Wakeman Rouven J. Wool-Lewis (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Diversified Small-Cap Growth | Sudhir Nanda Anna M. Dopkin Donald J. Easley John H. Laporte Curt J. Organt J. David Wagner (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President |
Dividend Growth | Thomas J. Huber Peter J. Bates G. Mark Bussard David M. Lee Daniel Martino Timothy E. Parker Robert T. Quinn, Jr. Gabriel Solomon William J. Stromberg Eric L. Veiel (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Equity Income | Brian C. Rogers Andrew M. Brooks Mark S. Finn David R. Giroux Paul D. Greene II Thomas J. Huber John D. Linehan Jason B. Polun Robert T. Quinn, Jr. Eric L. Veiel (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
22
Fund | Name | Position Held |
Financial Services | Eric L. Veiel Anna M. Dopkin Stephen M. Finamore Christopher T. Fortune Nina P. Jones Yoichiro Kai Ian C. McDonald Michael J. McGonigle Kathryn M. Mongelli Hwee Jan Ng Jason B. Polun Frederick A. Rizzo Gabriel Solomon Mitchell J.K. Todd Tamara P. Wiggs (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Floating Rate | Mark J. Vaselkiv Justin T. Gerbereux Paul M. Massaro Brian E. Burns Michael F. Connelly Stephen M Finamore David R. Giroux Steven C. Huber Paul A. Karpers Michael J. McGonigle Walter P. Stuart III Thomas E. Tewksbury Thea N. Williams Brian A. Rubin (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President |
Global Real Estate | David M. Lee Richard N. Clattenburg Nina P. Jones Yoichiro Kai Michael M. Lasota Robert J. Marcotte Raymond A. Mills Eric C. Moffett Philip A. Nestico Marta Yago (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Global Technology | David J. Eiswert Kennard W. Allen Christopher W. Carlson Henry M. Ellenbogen Robert N. Gensler Paul D. Greene II Rhett K. Hunter Daniel Martino Hiroaki Owaki Joshua K. Spencer Thomas H. Watson Alison Mei Ling Yip Nalin K. Yogasundram (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
23
Fund | Name | Position Held |
GNMA | Andrew C. McCormick Christopher P. Brown Keir R. Joyce Alan D. Levenson John D. Wells (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President |
Growth & Income | Thomas J. Huber Francisco Alonso G. Mark Bussard Shawn T. Driscoll David M. Lee Robert T. Quinn, Jr. David L. Rowlett Gabriel Solomon Joshua K. Spencer Eric L. Veiel (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Growth Stock | P. Robert Bartolo Kennard W. Allen G. Mark Bussard Joseph B. Fath Paul D. Greene II Barry Henderson Kris H. Jenner Daniel Martino Joseph M. Milano Larry J. Puglia Robert W. Sharps Robert W. Smith Taymour R. Tamaddon Eric L. Veiel (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Health Sciences | Kris H. Jenner G. Mark Bussard Melissa C. Gallagher John H. Laporte Graham M. McPhail Jason Nogueira Charles G. Pepin John C.A. Sherman Taymour R. Tamaddon Rouven J. Wool-Lewis (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
High Yield | Mark J. Vaselkiv Andrew M. Brooks Justin T. Gerbereux Paul A. Karpers Paul M. Massaro Michael J. McGonigle Brian A. Rubin Walter P. Stuart III Thomas E. Tewksbury Thea N. Williams (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
24
Fund | Name | Position Held |
Index Trust Equity Index 500 Extended Equity Market Index Total Equity Market Index | E. Frederick Bair Ken D. Uematsu Sharon E. Janvier Paul W. Wojcik J. Zachary Wood (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President |
Inflation Focused Bond | Edward A. Wiese Brian J. Brennan Steven G. Brooks Jerome A. Clark Charles B. Hill Vernon A. Reid, Jr. Daniel O. Shackelford John D. Wells Bridget A. Ebner Michael J. Grogan Geoffrey M. Hardin Keir R. Joyce (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President |
Inflation Protected Bond | Daniel O. Shackelford Brian J. Brennan Alan D. Levenson Andrew C. McCormick Dimitri V. Grechenko Geoffrey M. Hardin (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
Institutional Equity Funds Institutional Large-Cap Core Growth Institutional Large-Cap Growth Institutional Large-Cap Value Institutional Mid-Cap Equity Growth Institutional Small-Cap Stock Institutional U.S. Structured Research | Brian C. Rogers Brian W.H. Berghuis Anna M. Dopkin Mark S. Finn John D. Linehan Gregory A. McCrickard Larry J. Puglia Robert W. Sharps Ann M. Holcomb Joseph M. Milano J. David Wagner John F. Wakeman (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President |
25
Fund | Name | Position Held |
Institutional Income Funds Institutional Core Plus Institutional Floating Rate Institutional High Yield | Mark J. Vaselkiv Brian J. Brennan Justin T. Gerbereux Paul A. Karpers Paul M. Massaro Andrew M. Brooks Michael J. Conelius David R. Giroux Steven C. Huber Ian D. Kelson Andrew C. McCormick Michael J. McGonigle Daniel O. Shackelford Walter P. Stuart III Thomas E. Tewksbury David A. Tiberii Thea N. Williams Brian A. Rubin (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President |
Institutional International Funds Institutional Africa & Middle East Institutional Concentrated International Equity Institutional Emerging Markets Bond Institutional Emerging Markets Equity Institutional Global Equity Institutional Global Large-Cap Equity Institutional International Bond Institutional International Core Equity Institutional International Growth Equity | Christopher D. Alderson Oliver D.M. Bell R. Scott Berg Richard N. Clattenburg Michael J. Conelius Mark J.T. Edwards Robert N. Gensler Andrew J. Keirle Ian D. Kelson Raymond A. Mills Joshua Nelson Jason Nogueira Gonzalo Pangaro Christopher J. Rothery Federico Santilli Robert W. Smith Ulle Adamson Paulina Amieva Jose Costa Buck Richard de los Reyes David J. Eiswert M. Campbell Gunn Leigh Innes Randal S. Jenneke Kris H. Jenner Yoichiro Kai Mark J. Lawrence David M. Lee Anh Lu Daniel Martino Jonathan H.W. Matthews Susanta Mazumdar Timothy E. Parker Frederick A. Rizzo Sebastian Schrott Robert W. Sharps Jonty Starbuck Dean Tenerelli Eric L. Veiel Christopher S. Whitehouse (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
26
Fund | Name | Position Held |
International Funds Africa & Middle East Emerging Europe Emerging Markets Bond Emerging Markets Corporate Bond Emerging Markets Local Currency Bond Emerging Markets Stock European Stock Global Infrastructure Global Large-Cap Stock Global Stock International Bond International Discovery International Growth & Income International Stock Japan Latin America New Asia Overseas Stock | Christopher D. Alderson Oliver D.M. Bell R. Scott Berg Jose Costa Buck Richard N. Clattenburg Michael J. Conelius Mark J.T. Edwards Robert N. Gensler M. Campbell Gunn Leigh Innes Andrew J. Keirle Ian D. Kelson Anh Lu Jonathan H.W. Matthews Susanta Mazumdar Raymond A. Mills Joshua Nelson Jason Nogueira Gonzalo Pangaro Christopher J. Rothery Federico Santilli Robert W. Smith Dean Tenerelli Justin Thomson Ulle Adamson Syed H. Ali Paulina Amieva Peter J. Bates Brian J. Brennan Ryan N. Burgess Tak Yiu Cheng Archibald Ciganer Albeniz Richard de los Reyes Jessie Q. Ding Shawn T. Driscoll David J. Eiswert Henry M. Ellenbogen Melissa C. Gallagher Benjamin Griffiths Randal S. Jenneke Kris H. Jenner Yoichiro Kai Mark J. Lawrence David M. Lee Sebastien Mallet Daniel Martino Eric C. Moffett | President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Fund | Name | Position Held |
27
International Funds (continued) Africa & Middle East Emerging Europe Emerging Markets Bond Emerging Markets Corporate Bond Emerging Markets Local Currency Bond Emerging Markets Stock European Stock Global Infrastructure Global Large-Cap Stock Global Stock International Bond International Discovery International Growth & Income International Stock Japan Latin America New Asia Overseas Stock | Philip A. Nestico Hwee Jan Ng Sridhar Nishtala Hiroaki Owaki Timothy E. Parker Austin Powell Frederick A. Rizzo Naoto Saito Sebastian Schrott Francisco Sersale Jeneiv Shah Robert W. Sharps John C.A. Sherman Eunbin Song Jonty Starbuck Miki Takeyama Sin Dee Tan Mitchell J.K. Todd Eric L. Veiel Verena E. Wachnitz David J. Wallack Hiroshi Watanabe Christopher S. Whitehouse Clive M. Williams Marta Yago Ernest C. Yeung Alison Mei Ling Yip Christopher Yip Wenli Zheng (For remaining officers, refer to the All funds table) | Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
International Index Fund International Equity Index | E. Frederick Bair Neil Smith Ken D. Uematsu Paul W. Wojcik J. Zachary Wood (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President |
Media & Telecommunications | Daniel Martino Ulle Adamson P. Robert Bartolo David J. Eiswert Henry M. Ellenbogen Joseph B. Fath Paul D. Greene II Philip A. Nestico Curt J. Organt Robert W. Smith Justin P. White Christopher S. Whitehouse Ernest C. Yeung Wenli Zheng (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
28
Fund | Name | Position Held |
Mid-Cap Growth | Brian W.H. Berghuis John F. Wakeman Kennard W. Allen P. Robert Bartolo Shawn T. Driscoll Donald J. Easley Henry M. Ellenbogen Kris H. Jenner Robert J. Marcotte Daniel Martino Joseph M. Milano Clark R. Shields Taymour R. Tamaddon (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Mid-Cap Value | David J. Wallack Heather K. McPherson Peter J. Bates Christopher W. Carlson Jonathan Chou Andrew S. Davis Henry M. Ellenbogen Mark S. Finn Gregory A. McCrickard Ian C. McDonald Joseph M. Milano J. David Wagner John M. Williams (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
29
Fund | Name | Position Held |
Multi-Sector Account Portfolios Emerging Markets Bond Multi-Sector Account Portfolio Emerging Markets Local Multi-Sector Account Portfolio Floating Rate Multi-Sector Account Portfolio High Yield Multi-Sector Account Portfolio Investment-Grade Corporate Multi-Sector Account Portfolio Mortgage-Backed Securities Multi-Sector Account Portfolio | Michael C. Gitlin Michael J. Conelius Justin T. Gerbereux Andrew J. Keirle Paul M. Massaro Andrew C. McCormick Christopher J. Rothery David A. Tiberii Mark J. Vaselkiv Roy H. Adkins Anil K. Andhavarapu Stephen L. Bartolini Steve Boothe Brian J. Brennan Steven G. Brooks Christopher P. Brown Brian E. Burns Carolyn Hoi Che Chu Michael F. Connelly Bridget A. Ebner Stephen M. Finamore Michael J. Grogan Steven C. Huber Keir R. Joyce Paul A. Karpers Ian D. Kelson Christopher J. Kushlis Michael Lambe Martin G. Lee Alan D. Levenson Christopher C. Loop Michael J. McGonigle Samy B. Muaddi Christina Ni Alexander S. Obaza Michael D. Oh Vernon A. Reid, Jr. Theodore E. Robson Brian M. Ropp Brian A. Rubin Daniel O. Shackelford Kimberly A. Stokes Walter P. Stuart III Ju Yen Tan Lauren M. Taylor Thomas E. Tewksbury John D. Wells Edward A. Wiese Thea N. Williams J. Howard Woodward (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Fund | Name | Position Held |
30
New America Growth | Joseph M. Milano Francisco Alonso P. Robert Bartolo Brian W.H. Berghuis Shawn T. Driscoll Benjamin D. Landy Ian C. McDonald Jason Nogueira Curt J. Organt Robert W. Sharps Clark R. Shields Taymour R. Tamaddon Craig A. Thiese Eric L. Veiel (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
New Era | Timothy E. Parker Ryan N. Burgess Richard de los Reyes Shawn T. Driscoll Mark S. Finn Shinwoo Kim Jeremy D. Kokemor Steven D. Krichbaum Benjamin D. Landy Susanta Mazumdar Heather K. McPherson Craig A. Thiese David J. Wallack John M. Williams Nalin K. Yogasundram (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
New Horizons | Henry M. Ellenbogen Francisco Alonso Brian W.H. Berghuis Michael F. Blandino G. Mark Bussard Christopher W. Carlson Rhett K. Hunter Kris H. Jenner John H. Laporte Graham M. McPhail Timothy E. Parker Clark R. Shields Michael F. Sola Taymour R. Tamaddon Justin Thomson J. David Wagner Ashley R. Woodruff Nalin K. Yogasundram (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
31
Fund | Name | Position Held |
New Income | Daniel O. Shackelford Brian J. Brennan Steven C. Huber Alan D. Levenson Andrew C. McCormick Vernon A. Reid, Jr. David A. Tiberii Dimitri V. Grechenko Michael J. Grogan (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
Personal Strategy Funds Personal Strategy Balanced Personal Strategy Growth Personal Strategy Income | Charles M. Shriver Christopher D. Alderson E. Frederick Bair Jerome A. Clark Kimberly E. DeDominicis Mark S. Finn Ian D. Kelson John H. Laporte Raymond A. Mills Larry J. Puglia Brian C. Rogers Robert W. Smith Guido F. Stubenrauch Mark J. Vaselkiv Richard T. Whitney (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Prime Reserve | Joseph K. Lynagh Steven G. Brooks M. Helena Condez G. Richard Dent Alan D. Levenson Douglas D. Spratley Edward A. Wiese (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President |
Real Assets | Wyatt A. Lee E. Frederick Bair Richard de los Reyes Jared S. Franz Stefan Hubrich David M. Lee Susanta Mazumdar Timothy E. Parker Daniel O. Shackelford Richard T. Whitney (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Real Estate | David M. Lee Anna M. Dopkin Joseph B. Fath Thomas J. Huber Nina P. Jones Michael M. Lasota Philip A. Nestico Theodore E. Robson (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
32
Fund | Name | Position Held |
TRP Reserve Investment Funds TRP Government Reserve Investment TRP Reserve Investment | Joseph K. Lynagh Steven G. Brooks M. Helena Condez G. Richard Dent Alan D. Levenson Douglas D. Spratley Edward A. Wiese (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President |
Retirement Funds Retirement 2005 Retirement 2010 Retirement 2015 Retirement 2020 Retirement 2025 Retirement 2030 Retirement 2035 Retirement 2040 Retirement 2045 Retirement 2050 Retirement 2055 Retirement Income | Jerome A. Clark Wyatt A. Lee Christopher D. Alderson Kimberly E. DeDominicis Ian D. Kelson John H. Laporte Brian C. Rogers Daniel O. Shackelford Robert W. Smith Guido F. Stubenrauch Mark J. Vaselkiv Richard T. Whitney (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Science & Technology | Kennard W. Allen Brian W.H. Berghuis David J. Eiswert Rhett K. Hunter Daniel Martino Shalin Mody Hiroaki Owaki Michael F. Sola Joshua K. Spencer Thomas H. Watson Alison Mei Ling Yip Nalin K. Yogasundram (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Short-Term Bond | Edward A. Wiese Brian J. Brennan Steven G. Brooks Charles B. Hill Andrew C. McCormick Cheryl A. Mickel Vernon A. Reid, Jr. Daniel O. Shackelford John D. Wells Bridget A. Ebner Michael J. Grogan Geoffrey M. Hardin Keir R. Joyce (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President |
33
Fund | Name | Position Held |
Small-Cap Stock | Gregory A. McCrickard Francisco Alonso Preston G. Athey Ira W. Carnahan Hugh M. Evans III Christopher T. Fortune Steven D. Krichbaum Robert J. Marcotte Joseph M. Milano Curt J. Organt Michael F. Sola J. David Wagner (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Small-Cap Value | Preston G. Athey Hugh M. Evans III Christopher T. Fortune Steven D. Krichbaum Gregory A. McCrickard Curt J. Organt J. David Wagner (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President |
Spectrum Funds Spectrum Growth Spectrum Income Spectrum International | Charles M. Shriver Christopher D. Alderson John H. Laporte Raymond A. Mills Brian C. Rogers Robert W. Smith (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Vice President Vice President Vice President |
State Tax-Free Income Trust Georgia Tax-Free Bond Maryland Short-Term Tax-Free Bond Maryland Tax-Free Bond Maryland Tax-Free Money New Jersey Tax-Free Bond New York Tax-Free Bond New York Tax-Free Money Virginia Tax-Free Bond | Hugh D. McGuirk Charles B. Hill Joseph K. Lynagh Konstantine B. Mallas R. Lee Arnold, Jr. M. Helena Condez Patricia S. Deford G. Richard Dent Charles E. Emrich Kathryn A. Floyd Marcy M. Lash Alan D. Levenson Linda A. Murphy Timothy G. Taylor Michael K. Sewell Chen Shao (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
Strategic Income | Steven C. Huber Michael J. Conelius Ian D. Kelson Andrew C. McCormick Michael J. McGonigle David Stanley David A. Tiberii Mark J. Vaselkiv (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
34
Fund | Name | Position Held |
Summit Funds Summit Cash Reserves Summit GNMA | Andrew C. McCormick Joseph K. Lynagh Christopher P. Brown G. Richard Dent Keir R. Joyce Alan D. Levenson Douglas D. Spratley Susan G. Troll John D. Wells Edward A. Wiese (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Summit Municipal Funds Summit Municipal Income Summit Municipal Intermediate Summit Municipal Money Market | Hugh D. McGuirk Charles B. Hill Joseph K. Lynagh Konstantine B. Mallas R. Lee Arnold, Jr. M. Helena Condez Patricia S. Deford G. Richard Dent Kathryn A. Floyd Marcy M. Lash Alan D. Levenson James M. Murphy Linda A. Murphy Timothy G. Taylor Edward A. Wiese Dylan Jones Michael K. Sewell Chen Shao (For remaining officers, refer to the All funds table) | President Executive Vice President Executive Vice President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President |
Tax-Efficient Funds Tax-Efficient Equity | Donald J. Peters Kennard W. Allen Preston G. Athey Andrew S. Davis Donald J. Easley Timothy E. Parker Robert T. Quinn, Jr. William J. Stromberg Taymour R. Tamaddon Mark R. Weigman (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Tax-Exempt Money | Joseph K. Lynagh Steven G. Brooks G. Richard Dent Marcy M. Lash Alan D. Levenson Edward A. Wiese M. Helena Condez Chen Shao (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
35
Fund | Name | Position Held |
Tax-Free High Yield | James M. Murphy R. Lee Arnold, Jr. Patricia S. Deford G. Richard Dent Charles B. Hill Marcy M. Lash Konstantine B. Mallas Hugh D. McGuirk M. Helena Condez Dylan Jones Michael K. Sewell Chen Shao Timothy G. Taylor (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President |
Tax-Free Income | Konstantine B. Mallas R. Lee Arnold, Jr. Patricia S. Deford G. Richard Dent Charles B. Hill Marcy M. Lash Hugh D. McGuirk James M. Murphy M. Helena Condez Michael K. Sewell Chen Shao Timothy G. Taylor (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President |
Tax-Free Short-Intermediate | Charles B. Hill G. Richard Dent Charles E. Emrich Marcy M. Lash Konstantine B. Mallas Hugh D. McGuirk Timothy G. Taylor Edward A. Wiese M. Helena Condez Dylan Jones Michael K. Sewell Chen Shao (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President |
U.S. Bond Enhanced Index | Robert M. Larkins Steven C. Huber Zhen Xia (For remaining officers, refer to the All funds table) | President Vice President Vice President |
U.S. Large-Cap Core | Jeffrey Rottinghaus Peter J. Bates Shawn T. Driscoll Joseph B. Fath Mark S. Finn John D. Linehan George A. Marzano Timothy E. Parker Robert T. Quinn, Jr. Robert W. Sharps (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
36
Fund | Name | Position Held |
U.S. Treasury Funds U.S. Treasury Intermediate U.S. Treasury Long-Term U.S. Treasury Money | Brian J. Brennan Joseph K. Lynagh Steven G. Brooks G. Richard Dent Dimitri V. Grechenko Geoffrey M. Hardin Alan D. Levenson Vernon A. Reid, Jr. Daniel O. Shackelford (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Value | Mark S. Finn Peter J. Bates Ryan N. Burgess Ira W. Carnahan Andrew S. Davis David R. Giroux John D. Linehan Heather K. McPherson Robert T. Quinn, Jr. Brian C. Rogers Joshua K. Spencer Walter P. Stuart III Eric L. Veiel Tamara P. Wiggs (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Officers
Name, Year of Birth, and Principal Occupation(s) | Position(s) Held With Fund(s) |
Ulle Adamson, 1979 Vice President, T Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, Institutional International Funds, International Funds, and Media & Telecommunications Fund |
Roy H. Adkins, 1970 Vice President, T Rowe Price and T. Rowe Price Group, Inc.; formerly Employee, African Development Bank (to 2008) | Vice President, Multi-Sector Account Portfolios |
Christopher D. Alderson, 1962 Director and President-International Equity, T. Rowe Price International; Companys Representative, Director and Vice President, Price Hong Kong; Director and Vice President, Price Singapore; Vice President, T. Rowe Price Group, Inc. | President, Institutional International Funds and International Funds; Executive Vice President, Spectrum Funds; Vice President, Personal Strategy Funds and Retirement Funds |
Syed H. Ali, 1970 Vice President, Price Singapore and T. Rowe Price Group, Inc.; formerly Research Analyst, Credit Suisse Securities (to 2010) | Vice President, International Funds |
Kennard W. Allen, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | President, Science & Technology Fund; Vice President, Capital Opportunity Fund, Diversified Mid-Cap Growth Fund, Global Technology Fund, Growth Stock Fund, Mid-Cap Growth Fund, and Tax-Efficient Funds |
Francisco Alonso, 1978 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Capital Appreciation Fund, Capital Opportunity Fund, Growth & Income Fund, New America Growth Fund, New Horizons Fund, and Small-Cap Stock Fund |
37
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Paulina Amieva, 1981 Vice President, T Rowe Price Group, Inc. and T. Rowe Price International; formerly student Harvard Business School (to 2008) | Vice President, Institutional International Funds and International Funds |
Anil Kumar Andhavarapu, 1980 Vice President, T Rowe Price; formerly Employee, Nomura Holdings America, Inc. (to 2009) | Vice President, Multi-Sector Account Portfolios |
R. Lee Arnold, Jr., 1970 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA, CPA | Executive Vice President, Tax-Free High Yield Fund; Vice President, State Tax-Free Income Trust, Summit Municipal Funds, and Tax-Free Income Fund |
Preston G. Athey, 1949 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA, CIC | President, Small-Cap Value Fund; Vice President, Small-Cap Stock Fund and Tax-Efficient Funds |
E. Frederick Bair, 1969 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA, CPA | President, Index Trust and International Index Fund; Vice President, Balanced Fund, Personal Strategy Funds, and Real Assets Fund |
Stephen L. Bartolini, 1977 Vice President, T Rowe Price; formerly Senior Portfolio Manager, Senior Trader, and Analyst, Fannie Mae (to 2010); CFA | Vice President, Multi-Sector Account Portfolios |
P. Robert Bartolo, 1972 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA, CPA | President, Growth Stock Fund; Vice President, Blue Chip Growth Fund, Media & Telecommunications Fund, Mid-Cap Growth Fund, and New America Growth Fund |
Peter J. Bates, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Blue Chip Growth Fund, Capital Opportunity Fund, Diversified Mid-Cap Growth Fund, Dividend Growth Fund, International Funds, Mid-Cap Value Fund, U.S. Large-Cap Core Fund, and Value Fund |
Oliver D.M. Bell, 1969 Vice President, T. Rowe Price International, formerly Head of Global Emerging Markets Research, Pictet Asset Management Ltd. (to 2011) and Portfolio Manager of Africa and Middle East portfolios and other emerging markets strategies, Pictet Asset Management Ltd. (to 2009) | Executive Vice President, Institutional International Funds and International Funds |
R. Scott Berg, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Executive Vice President, Institutional International Funds and International Funds |
Brian W.H. Berghuis, 1958 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, Mid-Cap Growth Fund; Executive Vice President, Institutional Equity Funds; Vice President, Diversified Mid-Cap Growth Fund, New America Growth Fund, New Horizons Fund, and Science & Technology Fund |
Michael F. Blandino, 1971 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. formerly Executive Director, Convertible Sales, JPMorgan (to 2009) | Vice President, New Horizons Fund |
Steve Boothe, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Executive Vice President, Corporate Income Fund; Vice President, Multi-Sector Account Portfolios |
38
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Brian J. Brennan, 1964 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA | President, U.S. Treasury Funds; Executive Vice President, Institutional Income Funds; Vice President, Inflation Focused Bond Fund, Inflation Protected Bond Fund, International Funds, Multi-Sector Account Portfolios, New Income Fund, and Short-Term Bond Fund |
Andrew M. Brooks, 1956 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Equity Income Fund, High Yield Fund, and Institutional Income Funds |
Steven G. Brooks, 1954 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, California Tax-Free Income Trust, Corporate Income Fund, Inflation Focused Bond Fund, Multi-Sector Account Portfolios, Prime Reserve Fund, TRP Reserve Investment Funds, Short-Term Bond Fund, Tax-Exempt Money Fund, and U.S. Treasury Funds |
Christopher P. Brown, 1977 Vice President, T. Rowe Price | Vice President, GNMA Fund, Multi-Sector Account Portfolios, and Summit Funds |
Jose Costa Buck, 1972 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Executive Vice President, International Funds; Vice President, Institutional International Funds |
Ryan N. Burgess, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Blue Chip Growth Fund, Capital Appreciation Fund, International Funds, New Era Fund, and Value Fund |
Brian E. Burns, 1960 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | Vice President, Floating Rate Fund and Multi-Sector Account Portfolios |
G. Mark Bussard, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Blue Chip Growth Fund, Dividend Growth Fund, Growth & Income Fund, Growth Stock Fund, Health Sciences Fund, and New Horizons Fund |
Christopher W. Carlson, 1967 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Global Technology Fund, Mid-Cap Value Fund, and New Horizons Fund |
Ira W. Carnahan, 1963 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Small-Cap Stock Fund and Value Fund |
Tak Yiu Cheng, 1974 Vice President, Price Hong Kong and T. Rowe Price Group, Inc.; formerly Analyst, CLS, BNP Paribos, and Deutsche Bank (to 2008); CFA, CPA | Vice President, International Funds |
Jonathan Chou, 1980 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student, Darden Graduate School of Business Administration, University of Virginia (to 2008); and Principal, Gladstone Management Corporation (to 2006) | Vice President, Blue Chip Growth Fund and Mid-Cap Value Fund |
Carolyn Hoi Che Chu, 1974 Vice President, Price Hong Kong and T Rowe Price Group, Inc.; formerly Director, Bank of America Merrill Lynch and co-head of credit and convertibles research team in Hong Kong (to 2010) | Vice President, Multi-Sector Account Portfolios |
Archibald Ciganer Albeniz, 1976 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly Vice President in Mergers and Acquisitions, BNP Paribas, Japan (to 2007); CFA | Vice President, International Funds |
39
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Jerome A. Clark, 1961 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price Investment Services, Inc., and T. Rowe Price Trust Company; CFA | President, Retirement Funds; Vice President, Inflation Focused Bond Fund and Personal Strategy Funds |
Richard N. Clattenburg, 1979 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International; CFA | Executive Vice President, Institutional International Funds and International Funds; Vice President, Global Real Estate Fund |
M. Helena Condez, 1962 Vice President, T. Rowe Price | Vice President, California Tax-Free Income Trust, Prime Reserve Fund, TRP Reserve Investment Funds, State Tax-Free Income Trust, and Summit Municipal Funds; Assistant Vice President, Tax-Exempt Money Fund, Tax-Free High Yield Fund, Tax-Free Income Fund, and Tax-Free Short-Intermediate Fund |
Michael J. Conelius, 1964 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA | Executive Vice President, Institutional International Funds, International Funds, and Multi-Sector Account Portfolios; Vice President, Institutional Income Funds and Strategic Income Fund |
Michael F. Connelly, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Floating Rate Fund and Multi-Sector Account Portfolios |
Andrew S. Davis, 1978 Employee, T. Rowe Price; Intern, Franklin Templeton Investments (to 2009); Manager, Deloitte Financial Advisory Services (to 2008) | Vice President, Mid-Cap Value Fund, Tax-Efficient Funds, and Value Fund |
Kimberly E. DeDominicis, 1976 Vice President, T. Rowe Price and T. Rowe Price Trust Company | Vice President, Balanced Fund, Personal Strategy Funds, and Retirement Funds |
Patricia S. Deford, 1957 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, State Tax-Free Income Trust, Summit Municipal Funds, Tax-Free High Yield Fund, and Tax-Free Income Fund |
Richard de los Reyes, 1975 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Institutional International Funds, International Funds, New Era Fund, and Real Assets Fund |
G. Richard Dent, 1960 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, California Tax-Free Income Trust, Prime Reserve Fund, TRP Reserve Investment Funds, State Tax-Free Income Trust, Summit Funds, Summit Municipal Funds, Tax-Exempt Money Fund, Tax-Free High Yield Fund, Tax-Free Income Fund, Tax-Free Short-Intermediate Fund, and U.S. Treasury Funds |
Jessie Q. Ding, 1981 Employee, T. Rowe Price; formerly Associate, TPG Capital (to 2008) and Investment Banking Analyst, Morgan Stanley (to 2006) | Vice President, International Funds |
Anna M. Dopkin, 1967 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA | President, Capital Opportunity Fund; Executive Vice President, Institutional Equity Funds; Vice President, Balanced Fund, Diversified Small-Cap Growth Fund, Financial Services Fund, and Real Estate Fund |
Shawn T. Driscoll, 1975 Vice President, T. Rowe Price Group, Inc. | Vice President, Blue Chip Growth Fund, Growth & Income Fund, International Funds, Mid-Cap Growth Fund, New America Growth Fund, New Era Fund, and U.S. Large-Cap Core Fund |
40
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Donald J. Easley, 1971 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Executive Vice President, Diversified Mid-Cap Growth Fund; Vice President, Diversified Small-Cap Growth Fund, Mid-Cap Growth Fund, and Tax-Efficient Funds |
Bridget A. Ebner, 1970 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Multi-Sector Account Portfolios; Assistant Vice President, Inflation Focused Bond Fund and Short-Term Bond Fund |
Mark J.T. Edwards, 1957 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Executive Vice President, Institutional International Funds and International Funds |
David J. Eiswert, 1972 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International; CFA | President, Global Technology Fund; Vice President, Blue Chip Growth Fund, Institutional International Funds, International Funds, Media & Telecommunications Fund, and Science & Technology Fund |
Henry M. Ellenbogen, 1973 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | President, New Horizons Fund; Vice President, Global Technology Fund, International Funds, Media & Telecommunications Fund, Mid-Cap Growth Fund, and Mid-Cap Value Fund |
Charles E. Emrich, 1961 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, California Tax-Free Income Trust, State Tax-Free Income Trust, and Tax-Free Short-Intermediate Fund |
Hugh M. Evans III, 1966 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Small-Cap Stock Fund and Small-Cap Value Fund |
Joseph B. Fath, 1971 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CPA | Vice President, Growth Stock Fund, Media & Telecommunications Fund, Real Estate Fund, and U.S. Large-Cap Core Fund |
Roger L. Fiery III, 1959 Vice President, Price Hong Kong, Price Singapore, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CPA | Vice President, all funds |
Stephen M. Finamore, 1976 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CPA | Vice President, Financial Services Fund, Floating Rate Fund, and Multi-Sector Account Portfolios |
Mark S. Finn, 1963 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA, CPA | President, Value Fund; Executive Vice President, Institutional Equity Funds; Vice President, Balanced Fund, Capital Appreciation Fund, Equity Income Fund, Mid-Cap Value Fund, New Era Fund, Personal Strategy Funds, and U.S. Large-Cap Core Fund |
Kathryn A. Floyd, 1982 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, State Tax-Free Income Trust and Summit Municipal Funds |
Christopher T. Fortune, 1973 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Financial Services Fund, Small-Cap Stock Fund, and Small-Cap Value Fund |
Jared S. Franz, 1977 Assistant Vice President, T. Rowe Price formerly student, University of Illinois at Chicago (to 2008) | Vice President, Real Assets Fund |
Melissa C. Gallagher, 1974 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly European Pharmaceuticals and Biotech Analyst, Bear Stearns International Ltd. (to 2008) | Vice President, Health Sciences Fund and International Funds |
41
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Robert N. Gensler, 1957 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International | Executive Vice President, Institutional International Funds and International Funds; Vice President, Global Technology Fund |
Justin T. Gerbereux, 1975 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | Executive Vice President, Floating Rate Fund, Institutional Income Funds, and Multi-Sector Account Portfolios; Vice President, High Yield Fund |
John R. Gilner, 1961 Chief Compliance Officer and Vice President, T. Rowe Price; Vice President, T. Rowe Price Group, Inc. and T. Rowe Price Investment Services, Inc. | Chief Compliance Officer, all funds |
David R. Giroux, 1975 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, Capital Appreciation Fund; Vice President, Equity Income Fund, Floating Rate Fund, Institutional Income Funds, and Value Fund |
Gregory S. Golczewski, 1966 Vice President, T. Rowe Price and T. Rowe Price Trust Company | Vice President, all funds |
Dimitri V. Grechenko, 1963 Vice President, T. Rowe Price; CFA | Vice President, U.S. Treasury Funds; Assistant Vice President, Inflation Protected Bond Fund and New Income Fund |
Paul D. Greene II, 1978 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Blue Chip Growth Fund, Capital Appreciation Fund, Equity Income Fund, Global Technology Fund, Growth Stock Fund, and Media & Telecommunications Fund |
Benjamin Griffiths, 1977 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, International Funds |
Michael J. Grogan, 1971 Vice President, T. Rowe Price and T. Rowe Price Group Inc.; CFA | Vice President, Corporate Income Fund and Multi-Sector Account Portfolios; Assistant Vice President, Inflation Focused Bond Fund, New Income Fund, and Short-Term Bond Fund |
M. Campbell Gunn, 1956 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Executive Vice President, International Funds; Vice President, Institutional International Funds |
Geoffrey M. Hardin, 1971 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly, Investment Analyst, Morgan Stanleys Alternative Investment Partners Group (to 2007) | Vice President, U.S. Treasury Funds; Assistant Vice President, Inflation Focused Bond Fund, Inflation Protected Bond Fund, and Short-Term Bond Fund |
Barry Henderson, 1966 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Growth Stock Fund |
Charles B. Hill, 1961 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, Tax-Free Short-Intermediate Fund; Executive Vice President, State Tax-Free Income Trust and Summit Municipal Funds; Vice President, Inflation Focused Bond Fund, Short-Term Bond Fund, Tax-Free High Yield Fund, and Tax-Free Income Fund |
Gregory K. Hinkle, 1958 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; formerly, partner, PricewaterhouseCoopers, LLP (to 2007); CPA | Treasurer, all funds |
Ann M. Holcomb, 1972 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | Vice President, Capital Opportunity Fund and Institutional Equity Funds |
42
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Steven C. Huber, 1958 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA, FSA | President, Strategic Income Fund; Vice President, Floating Rate Fund, Institutional Income Funds, Multi-Sector Account Portfolios, New Income Fund, and U.S. Bond Enhanced Index Fund |
Thomas J. Huber, 1966 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, Dividend Growth Fund and Growth & Income Fund; Vice President, Blue Chip Growth Fund, Equity Income Fund, and Real Estate Fund |
Stefan Hubrich, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; Ph.D., CFA | Vice President, Real Assets Fund |
Rhett K. Hunter, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student, MIT Sloan School of Management (to 2007) | Vice President, Global Technology Fund, New Horizons Fund, and Science & Technology Fund |
Leigh Innes, 1976 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Executive Vice President, International Funds; Vice President, Institutional International Funds |
Sharon E. Janvier, 1975 Vice President, T. Rowe Price | Vice President, Index Trust |
Randal S. Jenneke, 1971 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly Senior Portfolio Manager Australian Equities (to 2010) | Vice President, Institutional International Funds and International Funds |
Kris H. Jenner, 1962 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International; M.D., D. Phil. | President, Health Sciences Fund; Vice President, Growth Stock Fund, Institutional International Funds, International Funds, Mid-Cap Growth Fund, and New Horizons Fund |
Dylan Jones, 1971 Vice President, T. Rowe Price; CFA | Assistant Vice President, Summit Municipal Funds, Tax-Free High Yield Fund, and Tax-Free Short-Intermediate Fund |
Nina P. Jones, 1980 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student Columbia Business School (to 2008); intern, T. Rowe Price (summer 2007); Senior Associate KPMG LLP (to 2006); CPA | Vice President, Financial Services Fund, Global Real Estate Fund, and Real Estate Fund |
Keir R. Joyce, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, GNMA Fund, Multi-Sector Account Portfolios, and Summit Funds; Assistant Vice President, Inflation Focused Bond Fund and Short-Term Bond Fund |
Yoichiro Kai, 1973 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly Japanese Financial/Real Estate Sector Analyst/Portfolio Manager, Citadel Investment Group, Asia Limited (to 2009); Research Analyst, Japanese Equities & Sector Fund Portfolio Manager, Fidelity Investments Japan Limited (to 2007) | Vice President, Financial Services Fund, Global Real Estate Fund, Institutional International Funds, and International Funds |
Paul A. Karpers, 1967 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Executive Vice President, Institutional Income Funds; Vice President, Balanced Fund, Floating Rate Fund, High Yield Fund, and Multi-Sector Account Portfolios |
Andrew J. Keirle, 1974 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Executive Vice President, Institutional International Funds, International Funds, and Multi-Sector Account Portfolios |
43
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Ian D. Kelson, 1956 President-International Fixed Income, T. Rowe Price International; Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Executive Vice President, Institutional International Funds and International Funds; Vice President, Institutional Income Funds, Multi-Sector Account Portfolios, Personal Strategy Funds, Retirement Funds, and Strategic Income Fund |
Shinwoo Kim, 1977 Vice President, T. Rowe Price; formerly Summer Equity Research Analyst, MFS Investment Management (to 2008), Senior Consultant/Engineer, AT&T, Inc. (to 2007) | Vice President, New Era Fund |
Jeremy D. Kokemor, 1982 Employee, T. Rowe Price; formerly Summer Intern at T. Rowe Price; (to 2009); Associate Analyst, Thompson, Siegel and Walmsley (to 2006); CFA | Vice President, New Era Fund |
Steven D. Krichbaum, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student, University of Michigan, Stephen M. Ross School of Business (to 2007) | Vice President, New Era Fund, Small-Cap Stock Fund, and Small-Cap Value Fund |
Christopher J. Kushlis, 1976 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, Multi-Sector Account Portfolios |
Michael Lambe, 1977 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, Multi-Sector Account Portfolios |
Benjamin D. Landy, 1980 Vice President, T. Rowe Price; formerly student, University of Chicago, Booth School of Business (to 2009); Research and Strategy Director, Atlantic Media Company (to 2007) | Vice President, New America Growth Fund and New Era Fund |
Robert M. Larkins, 1973 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, U.S. Bond Enhanced Index Fund; Vice President, Balanced Fund |
Marcy M. Lash, 1963 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, State Tax-Free Income Trust, Summit Municipal Funds, Tax-Exempt Money Fund, Tax-Free High Yield Fund, Tax-Free Income Fund, and Tax-Free Short-Intermediate Fund |
Michael M. Lasota, 1982 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student, University of Chicago, Graduate School of Business (to 2008); associate, The Boston Consulting Group (to 2006) | Vice President, Blue Chip Growth Fund, Global Real Estate Fund, and Real Estate Fund |
Mark J. Lawrence, 1970 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly equity fund manager, Citi, London (to 2008) | Vice President, Institutional International Funds and International Funds |
David M. Lee, 1962 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, Global Real Estate Fund and Real Estate Fund; Vice President, Dividend Growth Fund, Growth & Income Fund, Institutional International Funds, International Funds, and Real Assets Fund |
Martin G. Lee, 1963 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly principal, Investcorp (to 2007) | Vice President, Multi-Sector Account Portfolios |
Wyatt A. Lee, 1971 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, Real Assets Fund; Executive Vice President, Retirement Funds |
44
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Alan D. Levenson, 1958 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; Ph.D. | Vice President, California Tax-Free Income Trust, Corporate Income Fund, GNMA Fund, Inflation Protected Bond Fund, Multi-Sector Account Portfolios, New Income Fund, Prime Reserve Fund, TRP Reserve Investment Funds, State Tax-Free Income Trust, Summit Funds, Summit Municipal Funds, Tax-Exempt Money Fund, and U.S. Treasury Funds |
John D. Linehan, 1965 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | Executive Vice President, Institutional Equity Funds; Vice President, Capital Appreciation Fund, Equity Income Fund, U.S. Large-Cap Core Fund, and Value Fund |
Patricia B. Lippert, 1953 Assistant Vice President, T. Rowe Price and T. Rowe Price Investment Services, Inc. | Secretary, all funds |
Christopher C. Loop, 1966 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International; CFA | Vice President, Multi-Sector Account Portfolios |
Anh Lu, 1968 Vice President, Price Hong Kong and T. Rowe Price Group, Inc. | Executive Vice President, International Funds; Vice President, Institutional International Funds |
Joseph K. Lynagh, 1958 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, Prime Reserve Fund, TRP Reserve Investment Funds, and Tax-Exempt Money Fund; Executive Vice President, California Tax-Free Income Trust, State Tax-Free Income Trust, Summit Funds, Summit Municipal Funds, and U.S. Treasury Funds |
Konstantine B. Mallas, 1963 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | President, Tax-Free Income Fund; Executive Vice President, California Tax-Free Income Trust, State Tax-Free Income Trust, and Summit Municipal Funds; Vice President, Tax-Free High Yield Fund and Tax-Free Short-Intermediate Fund |
Sebastien Mallet, 1974 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, International Funds |
Robert J. Marcotte, 1962 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Global Real Estate Fund, Mid-Cap Growth Fund, and Small-Cap Stock Fund |
Jennifer Martin, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Capital Opportunity Fund |
Daniel Martino, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, Media & Telecommunications Fund; Vice President, Dividend Growth Fund, Global Technology Fund, Growth Stock Fund, Institutional International Funds, International Funds, Mid-Cap Growth Fund, and Science & Technology Fund |
George A. Marzano, 1980 Vice President, T. Rowe Price | Vice President, Blue Chip Growth Fund and U.S. Large-Cap Core Fund |
Paul M. Massaro, 1975 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | Executive Vice President, Floating Rate Fund, Institutional Income Funds, and Multi-Sector Account Portfolios; Vice President, Capital Appreciation Fund and High Yield Fund |
Jonathan H.W. Matthews, 1975 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly Analyst, Pioneer Investments (to 2008); CFA | Executive Vice President, International Funds; Vice President, Institutional International Funds |
45
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Susanta Mazumdar, 1968 Vice President, Price Singapore and T. Rowe Price Group, Inc. | Executive Vice President, International Funds; Vice President, Institutional International Funds, New Era Fund, and Real Assets Fund |
Andrew C. McCormick, 1960 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; formerly Chief Investment Officer, IMPAC Mortgage Holdings (to 2008); Senior Portfolio Manager, Avenue Capital Group (to 2006) | President, GNMA Fund and Summit Funds; Executive Vice President, Multi-Sector Account Portfolios; Vice President, Inflation Protected Bond Fund, Institutional Income Funds, New Income Fund, Short-Term Bond Fund, and Strategic Income Fund |
Gregory A. McCrickard, 1958 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, Small-Cap Stock Fund; Executive Vice President, Institutional Equity Funds; Vice President, Mid-Cap Value Fund and Small-Cap Value Fund |
Ian C. McDonald, 1971 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Insurance Correspondent, The Wall Street Journal (to 2007) | Vice President, Financial Services Fund, Mid-Cap Value Fund, and New America Growth Fund |
Michael J. McGonigle, 1966 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Corporate Income Fund, Financial Services Fund, Floating Rate Fund, High Yield Fund, Institutional Income Funds, Multi-Sector Account Portfolios, and Strategic Income Fund |
Hugh D. McGuirk, 1960 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, California Tax-Free Income Trust, State Tax-Free Income Trust, and Summit Municipal Funds; Vice President, Tax-Free High Yield Fund, Tax-Free Income Fund, and Tax-Free Short-Intermediate Fund |
Graham M. McPhail, 1975 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Analyst, The Boston Company Asset Management (to 2008); Junior Portfolio Manager, J.L. Kaplan Associates (to 2006) | Vice President, Health Sciences Fund and New Horizons Fund |
Heather K. McPherson, 1967 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CPA | Executive Vice President, Mid-Cap Value Fund; Vice President, Capital Appreciation Fund, New Era Fund, and Value Fund |
Cheryl A. Mickel, 1967 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | Vice President, Short-Term Bond Fund |
Joseph M. Milano, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, New America Growth Fund; Vice President, Capital Appreciation Fund, Growth Stock Fund, Institutional Equity Funds, Mid-Cap Growth Fund, Mid-Cap Value Fund, and Small-Cap Stock Fund |
Raymond A. Mills, 1960 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; Ph.D., CFA | Executive Vice President, Institutional International Funds and International Funds; Vice President, Balanced Fund, Global Real Estate Fund, Personal Strategy Funds, and Spectrum Funds |
Shalin Mody, 1980 Vice President, T. Rowe Price; formerly student, University of Chicago, Booth School of Business (to 2009), Associate, FLAG Capital (to 2007) | Vice President, Science & Technology Fund |
Eric C. Moffet, 1974 Vice President, Price Hong Kong and T. Rowe Price Group, Inc.; formerly Analyst, Fayez Sarofim & Company (to 2007) | Vice President, Global Real Estate Fund and International Funds |
46
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Kathryn M. Mongelli, 1976 Vice President, T. Rowe Price | Vice President, Financial Services Fund |
Samy B. Muaddi, 1984 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Multi-Sector Account Portfolios |
James M. Murphy, 1967 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, Tax-Free High Yield Fund; Vice President, Summit Municipal Funds and Tax-Free Income Fund |
Linda A. Murphy, 1959 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, California Tax-Free Income Trust, State Tax-Free Income Trust, and Summit Municipal Funds |
Sudhir Nanda, 1959 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; Ph.D., CFA | President, Diversified Small-Cap Growth Fund; Vice President, Capital Appreciation Fund and Diversified Mid-Cap Growth Fund |
Joshua Nelson, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student, The Wharton School, University of Pennsylvania (to 2007) | Executive Vice President, Institutional International Funds and International Funds |
Philip A. Nestico, 1976 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Capital Opportunity Fund, Global Real Estate Fund, International Funds, Media & Telecommunications Fund, and Real Estate Fund |
Hwee Jan Ng, 1966 Vice President, Price Singapore and T. Rowe Price Group, Inc.; CFA | Vice President, Financial Services Fund and International Funds |
Christina Ni, 1977 Vice President, T. Rowe Price; formerly Quantitative Analyst, HSBC Securities (USA) (to 2008); CFA, FRM | Vice President, Multi-Sector Account Portfolios |
Sridhar Nishtala, 1975 Vice President, Price Singapore and T. Rowe Price Group, Inc. | Vice President, International Funds |
Jason Nogueira, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Executive Vice President Institutional International Funds and International Funds; Vice President, Health Sciences Fund, and New America Growth Fund |
Alexander S. Obaza, 1981 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | Vice President, Multi-Sector Account Portfolios |
David Oestreicher, 1967 Director and Vice President, T. Rowe Price Investment Services, Inc., T. Rowe Price Retirement Plan Services, Inc., T. Rowe Price Services, Inc., and T. Rowe Price Trust Company; Vice President, Price Hong Kong, Price Singapore, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International | Vice President, all funds |
Michael D. Oh, 1974 Vice President, T. Rowe Price, and T. Rowe Price Group, Inc.; CFA | Vice President, Multi-Sector Account Portfolios |
Curt J. Organt, 1968 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Diversified Small-Cap Growth Fund, Media & Telecommunications Fund, New America Growth Fund, Small-Cap Stock Fund, and Small-Cap Value Fund |
Hiroaki Owaki, 1962 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, Global Technology Fund, International Funds, and Science & Technology Fund |
47
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Gonzalo Pangaro, 1968 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Executive Vice President, Institutional International Funds and International Funds |
Timothy E. Parker, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, New Era Fund; Vice President, Blue Chip Growth Fund, Capital Opportunity Fund, Diversified Mid-Cap Growth Fund, Dividend Growth Fund, Institutional International Funds, International Funds, New Horizons Fund, Real Assets Fund, Tax-Efficient Funds, and U.S. Large-Cap Core Fund |
Charles G. Pepin, 1966 Director, T. Rowe Price Trust Company; Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Capital Opportunity Fund and Health Sciences Fund |
Donald J. Peters, 1959 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | President, Diversified Mid-Cap Growth Fund and Tax-Efficient Funds |
Jason B. Polun, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Capital Opportunity Fund, Equity Income Fund, and Financial Services Fund |
Austin Powell, 1969 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, International Funds |
Larry J. Puglia, 1960 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA, CPA | President, Blue Chip Growth Fund; Executive Vice President, Institutional Equity Funds; Vice President, Balanced Fund, Growth Stock Fund, and Personal Strategy Funds |
Robert T. Quinn, Jr., 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Capital Appreciation Fund, Capital Opportunity Fund, Dividend Growth Fund, Equity Income Fund, Growth & Income Fund, Tax-Efficient Funds, U.S. Large-Cap Core Fund, and Value Fund |
Vernon A. Reid, Jr., 1954 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Corporate Income Fund, Inflation Focused Bond Fund, Multi-Sector Account Portfolios, New Income Fund, Short-Term Bond Fund, and U.S. Treasury Funds |
Frederick A. Rizzo, 1969 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly Analyst, F&C Asset Management (London) (to 2006) | Vice President, Financial Services Fund, Institutional International Funds, and International Funds |
Theodore E. Robson, 1965 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | Vice President, Corporate Income Fund, Multi-Sector Account Portfolios, and Real Estate Fund |
Brian M. Ropp, 1969 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CPA | Vice President, Multi-Sector Account Portfolios |
Christopher J. Rothery, 1963 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Executive Vice President, Institutional International Funds, International Funds, Multi-Sector Account Portfolios |
Jeffrey Rottinghaus, 1970 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International; CPA | President, U.S. Large-Cap Core Fund |
David L. Rowlett, 1975 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Analyst and Portfolio Manager, Neuberger Berman (to 2008); CFA | Vice President, Growth & Income Fund |
48
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Brian A. Rubin, 1974 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CPA | Vice President, High Yield Fund and Multi-Sector Account Portfolios; Assistant Vice President, Floating Rate Fund and Institutional Income Funds |
Naoto Saito, 1980 Vice President, T. Rowe Price International; formerly Analyst, HBK Capital Management (to 2008), student, Stanford Graduate School of Business (to 2007) | Vice President, International Funds |
Federico Santilli, 1974 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Executive Vice President, Institutional International Funds and International Funds |
Sebastian Schrott, 1977 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly student, Stanford Graduate School of Business (to 2007) | Vice President, Institutional International Funds and International Funds |
Deborah D. Seidel, 1962 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Investment Services, Inc.; Assistant Treasurer and Vice President, T. Rowe Price Services, Inc.; Assistant Treasurer, T. Rowe Price Retirement Plan Services, Inc. | Vice President, all funds |
Francisco Sersale, 1980 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, International Funds |
Amit Seth, 1979 Vice President, T. Rowe Price; formerly student, Harvard Business School (to 2009); Senior Associate, Centennial Ventures (to 2007) | Vice President, Diversified Mid-Cap Growth Fund |
Michael K. Sewell, 1970 Assistant Vice President, T. Rowe Price | Assistant Vice President, California Tax-Free Income Trust, State Tax-Free Income Trust, Summit Municipal Funds, Tax-Free High Yield Fund, Tax-Free Income Fund, and Tax-Free Short Intermediate Fund |
Daniel O. Shackelford, 1958 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA | President, Inflation Protected Bond Fund and New Income Fund; Vice President, Inflation Focused Bond Fund, Institutional Income Funds, Multi-Sector Account Portfolios, Real Assets Fund, Retirement Funds, Short-Term Bond Fund, and U.S. Treasury Funds |
Jeneiv Shah, 1980 Employee, T. Rowe Price; formerly Analyst, Mirae Asset Global Investments (to 2010); CFA | Vice President, International Funds |
Chen Shao, 1980 Assistant Vice President, T. Rowe Price | Assistant Vice President, California Tax-Free Income Trust, State Tax-Free Income Trust, Summit Municipal Funds, Tax-Exempt Money Fund, Tax-Free High Yield Fund, Tax-Free Income Fund, and Tax-Free Short-Intermediate Fund |
Robert W. Sharps, 1971 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA, CPA | Executive Vice President, Institutional Equity Funds; Vice President, Blue Chip Growth Fund, Growth Stock Fund, Institutional International Funds, International Funds, New America Growth Fund, and U.S. Large-Cap Core Fund |
John C.A. Sherman, 1969 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, Health Sciences Fund and International Funds |
49
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Clark R. Shields, 1976 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Mid-Cap Growth Fund, New America Growth Fund, and New Horizons Fund |
Charles M. Shriver, 1967 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA | President, Balanced Fund, Personal Strategy Funds, and Spectrum Funds |
Neil Smith, 1972 Vice President, Price Hong Kong, Price Singapore, T. Rowe Price Group, Inc., and T. Rowe Price International | Executive Vice President, International Index Fund |
Robert W. Smith, 1961 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | Executive Vice President, Institutional International Funds and International Funds; Vice President, Growth Stock Fund, Media & Telecommunications Fund, Personal Strategy Funds, Retirement Funds, and Spectrum Funds |
Michael F. Sola, 1969 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, New Horizons Fund, Science & Technology Fund, and Small-Cap Stock Fund |
Gabriel Solomon, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Capital Appreciation Fund, Capital Opportunity Fund, Dividend Growth Fund, Financial Services Fund, and Growth & Income Fund |
Eunbin Song, 1980 Employee, T. Rowe Price; formerly Equity Research Analyst, Samsung Securities (to 2008); student, Columbia Business School; CFA | Vice President, International Funds |
Joshua K. Spencer, 1973 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Capital Opportunity Fund, Global Technology Fund, Growth & Income Fund, Science & Technology Fund, and Value Fund |
Douglas D. Spratley, 1969 Vice President, T. Rowe Price; CFA | Vice President, Prime Reserve Fund, TRP Reserve Investment Funds, and Summit Funds |
David Stanley, 1963 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, Strategic Income Fund |
Jonty Starbuck, 1975 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; Ph.D. | Vice President, Institutional International Funds and International Funds |
Kimberly A. Stokes, 1969 Vice President, T. Rowe Price and T. Rowe Price Group, Inc | Vice President, Multi-Sector Account Portfolios |
William J. Stromberg, 1960 Director and Vice President, T. Rowe Price; Vice President, Price Hong Kong, Price Singapore, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA | Vice President, Capital Appreciation Fund, Dividend Growth Fund, and Tax-Efficient Funds |
Walter P. Stuart III, 1960 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Floating Rate Fund, High Yield Fund, Institutional Income Funds, Multi-Sector Account Portfolios, and Value Fund |
Guido F. Stubenrauch, 1970 Vice President, T. Rowe Price | Vice President, Balanced Fund, Personal Strategy Funds, and Retirement Funds |
Miki Takeyama, 1970 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, International Funds |
50
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Taymour R. Tamaddon, 1976 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Blue Chip Growth Fund, Capital Appreciation Fund, Capital Opportunity Fund, Growth Stock Fund, Health Sciences Fund, Mid- Cap Growth Fund, New America Growth Fund, New Horizons Fund, and Tax-Efficient Funds |
Ju Yen Tan, 1972 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, Multi-Sector Account Portfolios |
Sin Dee Tan, 1979 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly student, London Business School (to 2008); Associate-Senior Systems Analyst, Goldman Sachs International (London) (to 2006); CFA | Vice President, International Funds |
Lauren M. Taylor, 1984 Vice President, T. Rowe Price; formerly Product Specialist, BlueCrest Capital Management (to 2009) | Vice President, Multi-Sector Account Portfolios |
Timothy G. Taylor, 1975 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, California Tax-Free Income Trust, State Tax-Free Income Trust, Summit Municipal Funds, and Tax-Free Short-Intermediate Fund; Assistant Vice President, Tax-Free High Yield Fund and Tax-Free Income Fund |
Dean Tenerelli, 1964 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Executive Vice President, International Funds; Vice President, Institutional International Funds |
Thomas E. Tewksbury, 1961 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | Vice President, Floating Rate Fund, High Yield Fund, Institutional Income Funds, and Multi-Sector Account Portfolios |
Craig A. Thiese, 1975 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, New America Growth Fund and New Era Fund |
Justin Thomson, 1968 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Executive Vice President, International Funds; Vice President, New Horizons Fund |
David A. Tiberii, 1965 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA | President, Corporate Income Fund; Executive Vice President, Multi-Sector Account Portfolios; Vice President, Institutional Income Funds, New Income Fund, and Strategic Income Fund |
Mitchell J.K. Todd, 1974 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly analyst, F&C Asset Management (to 2007) | Vice President, Financial Services Fund and International Funds |
Susan G. Troll, 1966 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CPA | Vice President, Capital Appreciation Fund and Summit Funds |
Ken D. Uematsu, 1969 Vice President, T. Rowe Price and T. Rowe Price Trust Company; CFA | Executive Vice President, Index Trust; Vice President, International Index Fund |
Mark J. Vaselkiv, 1958 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | President, Floating Rate Fund, High Yield Fund and Institutional Income Funds; Executive Vice President, Multi-Sector Account Portfolios; Vice President, Personal Strategy Funds, Retirement Funds, and Strategic Income Fund |
51
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Eric L. Veiel, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, Financial Services Fund; Vice President, Capital Appreciation Fund, Capital Opportunity Fund, Dividend Growth Fund, Equity Income Fund, Growth & Income Fund, Growth Stock Fund, Institutional International Funds, International Funds, New America Growth Fund, and Value Fund |
Verena E. Wachnitz, 1978 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, International Funds |
J. David Wagner, 1974 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Diversified Small-Cap Growth Fund, Institutional Equity Funds, Mid-Cap Value Fund, New Horizons Fund, Small-Cap Stock Fund, and Small-Cap Value Fund |
John F. Wakeman, 1962 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Executive Vice President, Mid-Cap Growth Fund; Vice President, Diversified Mid-Cap Growth Fund and Institutional Equity Funds |
David J. Wallack, 1960 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | President, Mid-Cap Value Fund; Vice President, International Funds and New Era Fund |
Julie L. Waples, 1970 Vice President, T. Rowe Price | Vice President, all funds |
Hiroshi Watanabe, 1975 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, International Funds |
Thomas H. Watson, 1977 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student, Tuck School of Business at Dartmouth (to 2007) | Vice President, Global Technology Fund and Science & Technology Fund |
Mark R. Weigman, 1962 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CFA, CIC | Vice President, Tax-Efficient Funds |
John D. Wells, 1960 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Savings Bank | Vice President, GNMA Fund, Inflation Focused Bond Fund, Multi-Sector Account Portfolios, Short-Term Bond Fund, and Summit Funds |
Justin P. White, 1981 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly student, Tuck School of Business at Dartmouth (to 2008); and Senior Analyst, Analysis Group (to 2006) | Vice President, Media & Telecommunications Fund |
Christopher S. Whitehouse, 1972 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, Institutional International Funds, International Funds, and Media & Telecommunications Fund |
Richard T. Whitney, 1958 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price International, and T. Rowe Price Trust Company; CFA | Vice President, Balanced Fund, Personal Strategy Funds, Real Assets Fund, and Retirement Funds |
Edward A. Wiese, 1959 Director and Vice President, T. Rowe Price Trust Company; Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; Chief Investment Officer, Director, and Vice President, T. Rowe Price Savings Bank; CFA | President, Inflation Focused Bond Fund and Short-Term Bond Fund; Vice President, Corporate Income Fund, Multi-Sector Account Portfolios, Prime Reserve Fund, TRP Reserve Investment Funds, Summit Municipal Funds, Summit Funds, Tax-Exempt Money Fund, and Tax-Free Short-Intermediate Fund |
52
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Tamara P. Wiggs, 1979 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Vice President, Institutional Equity Trading, Merrill Lynch & Co., Inc. (to 2007) | Vice President, Capital Appreciation Fund, Financial Services Fund, and Value Fund |
Clive M. Williams, 1966 Vice President, Price Hong Kong, Price Singapore, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price International | Vice President, International Funds |
John M. Williams, 1982 Employee, T. Rowe Price; formerly Summer Analyst, The Capital Group Companies, Inc. (to 2009) | Vice President, Mid-Cap Value Fund and New Era Fund |
Thea N. Williams, 1961 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company | Vice President, Corporate Income Fund, Floating Rate Fund, High Yield Fund, Institutional Income Funds, and Multi-Sector Account Portfolios |
Paul W. Wojcik, 1970 Chief Risk Officer and Vice President, T. Rowe Price Group; Vice President, T. Rowe Price and T. Rowe Price Trust Company; CFA | Vice President, Index Trust and International Index Fund |
J. Zachary Wood, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, Index Trust and International Index Fund |
Ashley R. Woodruff, 1979 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Senior Vice President and Senior Restaurants Analyst, Friedman, Billings, Ramsey & Co. (to 2007); CFA | Vice President, New Horizons Fund |
J. Howard Woodward, 1974 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, Multi-Sector Account Portfolios |
Rouven J. Wool-Lewis, 1973 Vice President, T. Rowe Price; Ph.D. formerly Vice President of Corporate Strategy, UnitedHealth Group (to 2011); Associate Analyst, Oppenheimer & Company (to 2009); Senior Associate, Friedman, Billings, Ramsey & Co. (to 2008) | Vice President, Diversified Mid-Cap Growth Fund and Health Sciences Fund |
Zhen Xia, 1987 Assistant Vice President, T. Rowe Price; formerly student at Princeton University (to 2008); Marketing and Strategy Intern at IBM (2007) | Vice President, U.S. Bond Enhanced Index Fund |
Marta Yago, 1977 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly a student, Columbia Business School (to 2007) | Vice President, Global Real Estate Fund and International Funds |
Ernest C. Yeung, 1979 Vice President, Price Hong Kong and T. Rowe Price Group, Inc.; CFA | Vice President, International Funds and Media & Telecommunications Fund |
Alison Mei Ling Yip, 1966 Vice President, Price Hong Kong and T. Rowe Price Group, Inc. | Vice President, Global Technology Fund, International Funds, and Science & Technology Fund |
Christopher Yip, 1975 Vice President, Price Hong Kong and T. Rowe Price Group, Inc.; CFA | Vice President, International Funds |
Nalin K. Yogasundram, 1975 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Equity Analyst Intern, American Century Investments (to 2006) | Vice President, Global Technology Fund, New Era Fund, New Horizons Fund, and Science & Technology Fund |
53
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Wenli Zheng, 1979 Vice President, Price Hong Kong and T. Rowe Price Group, Inc.; formerly student, University of Chicago Graduate School of Business (to 2008); Strategy Consultant, Capgemini (to 2006) | Vice President, International Funds and Media & Telecommunications Fund |
Directors Compensation
The following tables show remuneration paid by the Price Funds to the independent directors. For 2011, each independent director was paid $210,000 for his/her service on the Boards. (Effective January 1, 2012, an independent director is paid $250,000 annually for his/her service on the Boards.) The Lead Independent Director receives an additional $100,000 annually for serving in this capacity. For 2011, an independent director serving on the Joint Audit Committee received an additional $7,500 for his/her service and the chairman of the Joint Audit Committee received an additional $15,000 for his/her service. (Effective January 1, 2012, an independent director is paid $9,000 annually for serving on the Joint Audit Committee and an independent director is paid $18,000 annually for serving as the chairman of the Joint Audit Committee.) Officers of the funds and directors of the funds who are employees of T. Rowe Price or its affiliates (inside directors) do not receive any remuneration from the funds. In addition, the funds do not pay pension or retirement benefits to any of their directors or officers.
The following table shows the total compensation from all of the Price Funds that was paid to the directors for the calendar year 2011:
Directors | Total Compensation |
Brody | $210,000 |
Casey | 225,000 |
Deering (Lead) | 317,500 |
Dick | 210,000 |
Horn | 210,000 |
Rodgers | 210,000 |
Schreiber | 217,500 |
Tercek | 217,500 |
The following table shows the amounts paid by each fund to the directors based on accrued compensation for the calendar year 2011:
Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
Africa & Middle East | $654 | $685 | $989 | $654 | $654 | $686 | $662 | $678 |
Balanced | 1,823 | 1,910 | 2,757 | 1,823 | 1,823 | 1,911 | 1,845 | 1,888 |
Blue Chip Growth | 5,159 | 5,404 | 7,799 | 5,159 | 5,159 | 5,404 | 5,220 | 5,343 |
California Tax-Free Bond | 713 | 747 | 1,077 | 713 | 713 | 746 | 721 | 738 |
California Tax-Free Money | 612 | 641 | 925 | 612 | 612 | 641 | 619 | 634 |
Capital Appreciation | 5,035 | 5,274 | 7,613 | 5,035 | 5,035 | 5,277 | 5,094 | 5,215 |
Capital Opportunity | 693 | 726 | 1,047 | 693 | 693 | 726 | 701 | 717 |
Corporate Income | 859 | 900 | 1,299 | 859 | 859 | 900 | 869 | 890 |
Diversified Mid-Cap Growth | 651 | 682 | 984 | 651 | 651 | 682 | 659 | 674 |
54
Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
Diversified Small-Cap Growth | 650 | 681 | 983 | 650 | 650 | 681 | 658 | 673 |
Dividend Growth | 1,321 | 1,384 | 1,997 | 1,321 | 1,321 | 1,383 | 1,337 | 1,368 |
Emerging Europe | 854 | 894 | 1,292 | 854 | 854 | 897 | 864 | 885 |
Emerging Markets Bond | 1,725 | 1,808 | 2,608 | 1,725 | 1,725 | 1,806 | 1,746 | 1,787 |
Emerging Markets Corporate Bond(d) | 2,917 | 2,917 | 2,917 | 2,917 | 2,917 | 2,917 | 2,917 | 2,917 |
Emerging Markets Bond Multi-Sector Account Portfolio(a) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Emerging Markets Local Currency Bond(b) | 344 | 363 | 520 | 344 | 344 | 354 | 351 | 356 |
Emerging Markets Local Multi-Sector Account Portfolio(a) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Emerging Markets Stock | 2,783 | 2,916 | 4,208 | 2,783 | 2,783 | 2,916 | 2,816 | 2,883 |
Equity Income | 5,199 | 5,447 | 7,861 | 5,199 | 5,199 | 5,447 | 5,261 | 5,385 |
Equity Index 500 | 5,199 | 5,447 | 7,861 | 5,199 | 5,199 | 5,447 | 5,261 | 5,385 |
European Stock | 885 | 927 | 1,339 | 885 | 885 | 928 | 896 | 917 |
Extended Equity Market Index | 729 | 763 | 1,101 | 729 | 729 | 763 | 737 | 755 |
Financial Services | 705 | 738 | 1,066 | 705 | 705 | 739 | 713 | 730 |
Floating Rate(c) | 241 | 256 | 364 | 241 | 241 | 244 | 248 | 249 |
Floating Rate Multi-Sector Account Portfolio(a) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Georgia Tax-Free Bond | 649 | 680 | 982 | 649 | 649 | 680 | 657 | 673 |
Global Infrastructure | 595 | 623 | 899 | 595 | 595 | 623 | 602 | 616 |
Global Large-Cap Stock | 600 | 628 | 907 | 600 | 600 | 628 | 607 | 621 |
Global Real Estate | 595 | 623 | 900 | 595 | 595 | 623 | 602 | 616 |
Global Stock | 865 | 906 | 1,308 | 865 | 865 | 907 | 875 | 896 |
Global Technology | 771 | 808 | 1,166 | 771 | 771 | 808 | 780 | 799 |
GNMA | 1,216 | 1,274 | 1,839 | 1,216 | 1,216 | 1,274 | 1,231 | 1,260 |
TRP Government Reserve Investment | 1,108 | 1,159 | 1,675 | 1,108 | 1,108 | 1,163 | 1,120 | 1,147 |
Growth & Income | 1,027 | 1,076 | 1,553 | 1,027 | 1,027 | 1,077 | 1,039 | 1,064 |
Growth Stock | 5,199 | 5,447 | 7,861 | 5,199 | 5,199 | 5,447 | 5,261 | 5,385 |
Health Sciences | 1,719 | 1,801 | 2,599 | 1,719 | 1,719 | 1,801 | 1,740 | 1,781 |
High Yield | 3,900 | 4,085 | 5,896 | 3,900 | 3,900 | 4,087 | 3,945 | 4,039 |
High Yield Multi-Sector Account Portfolio(a) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inflation Focused Bond | 1,645 | 1,724 | 2,487 | 1,645 | 1,645 | 1,722 | 1,665 | 1,704 |
Inflation Protected Bond | 738 | 773 | 1,116 | 738 | 738 | 772 | 747 | 764 |
Institutional Africa & Middle East | 626 | 656 | 946 | 626 | 626 | 656 | 633 | 648 |
Institutional Concentrated International Equity | 581 | 608 | 878 | 581 | 581 | 608 | 587 | 601 |
Institutional Core Plus | 639 | 669 | 966 | 639 | 639 | 669 | 646 | 662 |
Institutional Emerging Markets Bond | 657 | 688 | 993 | 657 | 657 | 688 | 665 | 681 |
Institutional Emerging Markets Equity | 905 | 948 | 1,368 | 905 | 905 | 948 | 916 | 937 |
Institutional Floating Rate | 1,203 | 1,261 | 1,818 | 1,203 | 1,203 | 1,257 | 1,218 | 1,245 |
Institutional Global Equity | 647 | 677 | 978 | 647 | 647 | 677 | 654 | 670 |
55
Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
Institutional Global Large-Cap Equity | 601 | 629 | 908 | 601 | 601 | 629 | 608 | 622 |
Institutional High Yield | 1,167 | 1,224 | 1,765 | 1,167 | 1,167 | 1,222 | 1,182 | 1,209 |
Institutional International Bond | 661 | 692 | 999 | 661 | 661 | 693 | 668 | 684 |
Institutional International Core Equity | 579 | 607 | 876 | 579 | 579 | 607 | 586 | 600 |
Institutional International Growth Equity | 607 | 636 | 917 | 607 | 607 | 636 | 614 | 628 |
Institutional Large-Cap Core Growth | 676 | 708 | 1,022 | 676 | 676 | 708 | 684 | 700 |
Institutional Large-Cap Growth | 1,707 | 1,789 | 2,581 | 1,707 | 1,707 | 1,786 | 1,728 | 1,768 |
Institutional Large-Cap Value | 814 | 852 | 1,230 | 814 | 814 | 852 | 823 | 843 |
Institutional Mid-Cap Equity Growth | 1,187 | 1,245 | 1,795 | 1,187 | 1,187 | 1,241 | 1,203 | 1,230 |
Institutional Small-Cap Stock | 775 | 812 | 1,172 | 775 | 775 | 812 | 784 | 803 |
Institutional U.S. Structured Research | 809 | 847 | 1,223 | 809 | 809 | 848 | 818 | 838 |
International Bond | 2,702 | 2,832 | 4,086 | 2,702 | 2,702 | 2,830 | 2,735 | 2,799 |
International Discovery | 1,647 | 1,725 | 2,491 | 1,647 | 1,647 | 1,728 | 1,666 | 1,706 |
International Equity Index | 730 | 765 | 1,104 | 730 | 730 | 765 | 739 | 756 |
International Growth & Income | 2,145 | 2,248 | 3,244 | 2,145 | 2,145 | 2,246 | 2,172 | 2,222 |
International Stock | 3,301 | 3,458 | 4,990 | 3,301 | 3,301 | 3,457 | 3,341 | 3,419 |
Investment-Grade Corporate Multi-Sector Account Portfolio(a) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Japan | 659 | 690 | 996 | 659 | 659 | 690 | 666 | 682 |
Latin America | 1,652 | 1,729 | 2,498 | 1,652 | 1,652 | 1,735 | 1,670 | 1,711 |
Maryland Short-Term Tax-Free Bond | 676 | 708 | 1,022 | 676 | 676 | 708 | 684 | 700 |
Maryland Tax-Free Bond | 1,284 | 1,345 | 1,941 | 1,284 | 1,284 | 1,344 | 1,299 | 1,330 |
Maryland Tax-Free Money | 637 | 668 | 964 | 637 | 637 | 668 | 645 | 660 |
Media & Telecommunications | 1,385 | 1,450 | 2,094 | 1,385 | 1,385 | 1,451 | 1,401 | 1,434 |
Mid-Cap Growth | 5,199 | 5,447 | 7,861 | 5,199 | 5,199 | 5,447 | 5,261 | 5,385 |
Mid-Cap Value | 4,227 | 4,426 | 6,391 | 4,227 | 4,227 | 4,435 | 4,275 | 4,378 |
Mortgage-Backed Securities Multi-Sector Account Portfolio(a) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
New America Growth | 1,311 | 1,376 | 1,983 | 1,311 | 1,311 | 1,370 | 1,329 | 1,358 |
New Asia | 2,381 | 2,493 | 3,600 | 2,381 | 2,381 | 2,498 | 2,408 | 2,466 |
New Era | 2,839 | 2,971 | 4,292 | 2,839 | 2,839 | 2,980 | 2,869 | 2,940 |
New Horizons | 3,802 | 3,981 | 5,749 | 3,802 | 3,802 | 3,987 | 3,845 | 3,938 |
New Income | 5,199 | 5,447 | 7,861 | 5,199 | 5,199 | 5,447 | 5,261 | 5,385 |
New Jersey Tax-Free Bond | 675 | 707 | 1,020 | 675 | 675 | 707 | 683 | 699 |
New York Tax-Free Bond | 714 | 748 | 1,080 | 714 | 714 | 748 | 723 | 740 |
New York Tax-Free Money | 615 | 645 | 930 | 615 | 615 | 645 | 623 | 637 |
Overseas Stock | 1,848 | 1,938 | 2,794 | 1,848 | 1,848 | 1,933 | 1,872 | 1,914 |
Personal Strategy Balanced | 1,229 | 1,287 | 1,858 | 1,229 | 1,229 | 1,287 | 1,243 | 1,273 |
Personal Strategy Growth | 1,031 | 1,080 | 1,558 | 1,031 | 1,031 | 1,080 | 1,043 | 1,068 |
Personal Strategy Income | 962 | 1,008 | 1,455 | 962 | 962 | 1,008 | 974 | 997 |
56
Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
Prime Reserve | 2,814 | 2,950 | 4,255 | 2,814 | 2,814 | 2,946 | 2,849 | 2,915 |
Real Assets | 618 | 647 | 934 | 618 | 618 | 647 | 625 | 640 |
Real Estate | 1,702 | 1,782 | 2,573 | 1,702 | 1,702 | 1,783 | 1,722 | 1,762 |
TRP Reserve Investment | 5,199 | 5,447 | 7,861 | 5,199 | 5,199 | 5,447 | 5,261 | 5,385 |
Retirement 2005 | 1,050 | 1,100 | 1,587 | 1,050 | 1,050 | 1,100 | 1,062 | 1,087 |
Retirement 2010 | 2,815 | 2,948 | 4,255 | 2,815 | 2,815 | 2,950 | 2,847 | 2,915 |
Retirement 2015 | 3,002 | 3,145 | 4,539 | 3,002 | 3,002 | 3,144 | 3,038 | 3,109 |
Retirement 2020 | 5,199 | 5,447 | 7,861 | 5,199 | 5,199 | 5,447 | 5,261 | 5,385 |
Retirement 2025 | 3,252 | 3,408 | 4,917 | 3,252 | 3,252 | 3,405 | 3,292 | 3,368 |
Retirement 2030 | 4,765 | 4,992 | 7,204 | 4,765 | 4,765 | 4,991 | 4,822 | 4,935 |
Retirement 2035 | 2,332 | 2,443 | 3,525 | 2,332 | 2,332 | 2,442 | 2,360 | 2,415 |
Retirement 2040 | 3,308 | 3,466 | 5,001 | 3,308 | 3,308 | 3,465 | 3,347 | 3,426 |
Retirement 2045 | 1,469 | 1,540 | 2,222 | 1,469 | 1,469 | 1,538 | 1,487 | 1,522 |
Retirement 2050 | 1,074 | 1,126 | 1,624 | 1,074 | 1,074 | 1,124 | 1,087 | 1,112 |
Retirement 2055 | 689 | 722 | 1,042 | 689 | 689 | 722 | 697 | 714 |
Retirement Income | 1,510 | 1,583 | 2,284 | 1,510 | 1,510 | 1,581 | 1,529 | 1,564 |
Science & Technology | 1,824 | 1,910 | 2,758 | 1,824 | 1,824 | 1,914 | 1,845 | 1,890 |
Short-Term Bond | 2,907 | 3,045 | 4,395 | 2,907 | 2,907 | 3,045 | 2,942 | 3,011 |
Small-Cap Stock | 3,379 | 3,538 | 5,109 | 3,379 | 3,379 | 3,545 | 3,417 | 3,500 |
Small-Cap Value | 3,432 | 3,593 | 5,189 | 3,432 | 3,432 | 3,600 | 3,470 | 3,555 |
Spectrum Growth | 1,880 | 1,969 | 2,842 | 1,880 | 1,880 | 1,971 | 1,901 | 1,947 |
Spectrum Income | 3,008 | 3,152 | 4,548 | 3,008 | 3,008 | 3,151 | 3,044 | 3,116 |
Spectrum International | 835 | 875 | 1,263 | 835 | 835 | 876 | 845 | 865 |
Strategic Income | 664 | 696 | 1,004 | 664 | 664 | 695 | 672 | 688 |
Summit Cash Reserves | 2,908 | 3,047 | 4,396 | 2,908 | 2,908 | 3,044 | 2,943 | 3,012 |
Summit GNMA | 648 | 679 | 980 | 648 | 648 | 679 | 656 | 672 |
Summit Municipal Income | 789 | 827 | 1,193 | 789 | 789 | 826 | 798 | 817 |
Summit Municipal Intermediate | 1,284 | 1,345 | 1,941 | 1,284 | 1,284 | 1,345 | 1,299 | 1,330 |
Summit Municipal Money Market | 662 | 694 | 1,002 | 662 | 662 | 694 | 670 | 686 |
Tax-Efficient Equity | 612 | 642 | 926 | 612 | 612 | 642 | 620 | 634 |
Tax-Exempt Money | 963 | 1,009 | 1,456 | 963 | 963 | 1,008 | 975 | 998 |
Tax-Free High Yield | 1,262 | 1,322 | 1,907 | 1,262 | 1,262 | 1,321 | 1,277 | 1,307 |
Tax-Free Income | 1,755 | 1,838 | 2,653 | 1,755 | 1,755 | 1,839 | 1,775 | 1,817 |
Tax-Free Short-Intermediate | 1,171 | 1,227 | 1,771 | 1,171 | 1,171 | 1,226 | 1,185 | 1,213 |
Total Equity Market Index | 798 | 836 | 1,207 | 798 | 798 | 836 | 807 | 827 |
U.S. Bond Enhanced Index | 927 | 973 | 1,401 | 927 | 927 | 968 | 939 | 960 |
U.S. Large-Cap Core | 591 | 619 | 894 | 591 | 591 | 619 | 598 | 612 |
U.S. Treasury Intermediate | 758 | 794 | 1,146 | 758 | 758 | 794 | 767 | 785 |
U.S. Treasury Long-Term | 702 | 736 | 1,062 | 702 | 702 | 735 | 711 | 727 |
U.S. Treasury Money | 1,305 | 1,368 | 1,973 | 1,305 | 1,305 | 1,367 | 1,321 | 1,352 |
57
Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
Value | 5,196 | 5,443 | 7,855 | 5,196 | 5,196 | 5,443 | 5,257 | 5,381 |
Virginia Tax-Free Bond | 897 | 940 | 1,357 | 897 | 897 | 940 | 908 | 929 |
(a) Estimated for the period March 2, 2012, through December 31, 2012.
(b) For the period May 27, 2011, through December 31, 2011.
(c) For the period July 30, 2011, through December 31, 2011.
(d) Estimated for the period May 25, 2012, through December 31, 2012.
Directors Holdings in the Price Funds
The following tables set forth the Price Fund holdings of the independent and inside directors, as of December 31, 2011, unless otherwise indicated.
Aggregate Holdings, | Independent Directors | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | None | |
Africa & Middle East | None | None | None | None | None | over $100,000 | None | None |
Balanced | None | None | None | $50,001-$100,000 | None | over $100,000 | None | None |
Blue Chip Growth | None | over $100,000 | None | $10,001-$50,000 | None | None | over $100,000 | None |
Blue Chip Growth FundAdvisor Class | None | None | None | None | None | None | None | None |
Blue Chip Growth FundR Class | None | None | None | None | None | None | None | None |
California Tax-Free Bond | None | None | None | None | None | None | None | None |
California Tax-Free Money | over $100,000 | None | None | None | None | None | None | None |
Capital Appreciation | None | None | None | over $100,000 | None | over $100,000 | None | None |
Capital Appreciation FundAdvisor Class | None | None | None | None | None | None | None | None |
Capital Opportunity | None | $50,001-$100,000 | None | None | None | None | None | None |
Capital Opportunity FundAdvisor Class | None | None | None | None | None | None | None | None |
Capital Opportunity FundR Class | None | None | None | None | None | None | None | None |
Corporate Income | None | over $100,000 | None | None | None | None | None | None |
Diversified Mid-Cap Growth | None | None | None | None | None | $50,001-$100,000 | None | None |
Diversified Small-Cap Growth | None | None | None | None | None | None | None | None |
Dividend Growth | None | None | None | $50,001-$100,000 | None | None | None | None |
Dividend Growth FundAdvisor Class | None | None | None | None | None | None | None | None |
Emerging Europe | None | None | None | None | None | None | None | None |
58
Aggregate Holdings, | Independent Directors | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | None | |
Emerging Markets Bond | None | None | None | None | None | over $100,000 | None | None |
Emerging Markets Local Currency Bond | None | None | None | None | None | None | None | None |
Emerging Markets Local Currency Bond FundAdvisor Class | None | None | None | None | None | None | None | None |
Emerging Markets Stock | None | $10,001-$50,000 | over $100,000 | None | None | over $100,000 | None | None |
Equity Income | $50,001-$100,000 | $50,001-$100,000 | over $100,000 | over $100,000 | None | None | None | None |
Equity Income FundAdvisor Class | None | None | None | None | None | None | None | None |
Equity Income FundR Class | None | None | None | None | None | None | None | None |
Equity Index 500 | None | None | None | None | None | None | None | None |
European Stock | None | None | None | None | None | None | None | None |
Extended Equity Market Index | None | None | None | None | None | $10,001-$50,000 | None | None |
Financial Services | None | None | None | None | None | None | None | None |
Floating Rate | None | None | None | None | None | None | None | None |
Floating Rate FundAdvisor Class | None | None | None | None | None | None | None | None |
Georgia Tax-Free Bond | None | None | None | None | None | None | None | None |
Global Infrastructure | None | None | None | None | None | over $100,000 | None | None |
Global Infrastructure FundAdvisor Class | None | None | None | None | None | None | None | None |
Global Large-Cap Stock | None | None | None | None | None | None | None | None |
Global Large-Cap Stock FundAdvisor Class | None | None | None | None | None | None | None | None |
Global Real Estate | None | None | None | None | None | None | None | None |
Global Real Estate FundAdvisor Class | None | None | None | None | None | None | None | None |
Global Stock | None | None | over $100,000 | $50,001-$100,000 | None | None | None | None |
Global Stock FundAdvisor Class | None | None | None | None | None | None | None | None |
Global Technology | None | None | over $100,000 | None | None | over $100,000 | None | None |
GNMA | None | None | None | None | None | None | over $100,000 | None |
TRP Government Reserve Investment | None | None | None | None | None | None | None | None |
Growth & Income | None | None | None | $1-$10,000 | None | None | over $100,000 | None |
Growth Stock | None | None | None | over $100,000 | None | over $100,000 | None | None |
Growth Stock FundAdvisor Class | None | None | None | None | None | None | None | None |
Growth Stock FundR Class | None | None | None | None | None | None | None | None |
Health Sciences | None | None | None | over $100,000 | None | over $100,000 | None | None |
59
Aggregate Holdings, | Independent Directors | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | None | |
High Yield | None | over $100,000 | None | over $100,000 | None | over $100,000 | over $100,000 | None |
High Yield FundAdvisor Class | None | None | None | None | None | None | None | None |
Inflation Focused Bond | None | None | None | None | None | None | None | None |
Inflation Protected Bond | None | None | None | over $100,000 | None | None | None | None |
Institutional Africa & Middle East | None | None | None | None | None | None | None | None |
Institutional Concentrated International Equity | None | None | None | None | None | None | None | None |
Institutional Core Plus | None | None | None | None | None | None | None | None |
Institutional Core Plus Fund-F Class | None | None | None | None | None | None | None | None |
Institutional Emerging Markets Bond | None | None | None | None | None | None | None | None |
Institutional Emerging Markets Equity | None | None | None | None | None | None | None | None |
Institutional Floating Rate | None | None | None | None | None | None | None | None |
Institutional Floating Rate Fund-F Class | None | None | None | None | None | None | None | None |
Institutional Global Equity | None | None | None | None | None | None | None | None |
Institutional Global Large-Cap Equity | None | None | None | None | None | None | None | None |
Institutional High Yield | None | None | None | None | None | None | None | None |
Institutional International Bond | None | None | None | None | None | None | None | None |
Institutional International Core Equity | None | None | None | None | None | None | None | None |
Institutional International Growth Equity | None | None | None | None | None | None | None | None |
Institutional Large-Cap Core Growth | None | None | None | None | None | None | None | None |
Institutional Large-Cap Growth | None | None | None | None | None | None | None | None |
Institutional Large-Cap Value | None | None | None | None | None | None | None | None |
Institutional Mid-Cap Equity Growth | None | None | None | None | None | None | None | None |
Institutional Small-Cap Stock | None | None | None | None | None | None | None | None |
Institutional U.S. Structured Research | None | None | None | None | None | None | None | None |
International Bond | None | None | None | None | None | None | None | None |
International Bond FundAdvisor Class | None | None | None | None | None | None | None | None |
International Discovery | None | $10,001-$50,000 | None | None | None | None | None | None |
International Equity Index | None | None | None | None | None | None | None | None |
International Growth & Income | None | None | None | None | None | None | None | None |
60
Aggregate Holdings, | Independent Directors | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | None | |
International Growth & Income FundAdvisor Class | None | None | None | None | None | None | None | None |
International Growth & Income FundR Class | None | None | None | None | None | None | None | None |
International Stock | None | None | None | None | None | None | None | None |
International Stock FundAdvisor Class | None | None | None | None | None | None | None | None |
International Stock FundR Class | None | None | None | None | None | None | None | None |
Japan | None | None | None | None | None | None | over $100,000 | None |
Latin America | None | None | None | None | None | over $100,000 | None | None |
Maryland Short-Term Tax-Free Bond | None | None | None | None | None | None | None | None |
Maryland Tax-Free Bond | None | None | None | None | None | None | None | None |
Maryland Tax-Free Money | None | None | None | None | None | None | None | None |
Media & Tele-communications | None | $10,001-$50,000 | None | None | None | over $100,000 | None | None |
Mid-Cap Growth | None | None | None | None | None | over $100,000 | None | None |
Mid-Cap Growth FundAdvisor Class | None | None | None | None | None | None | None | None |
Mid-Cap Growth FundR Class | None | None | None | None | None | None | None | None |
Mid-Cap Value | None | None | None | None | None | None | None | None |
Mid-Cap Value FundAdvisor Class | None | None | None | None | None | None | None | None |
Mid-Cap Value FundR Class | None | None | None | None | None | None | None | None |
New America Growth | None | None | None | None | None | $10,001-$50,000 | None | None |
New America Growth FundAdvisor Class | None | None | None | None | None | None | None | None |
New Asia | None | None | None | None | None | None | None | None |
New Era | None | None | None | None | None | over $100,000 | None | None |
New Horizons | $50,001-$100,000 | over $100,000 | None | None | None | None | None | None |
New Income | $10,001-$50,000 | over $100,000 | None | None | None | None | over $100,000 | None |
New Income FundAdvisor Class | None | None | None | None | None | None | None | None |
New Income FundR Class | None | None | None | None | None | None | None | None |
New Jersey Tax-Free Bond | None | None | None | None | None | None | None | None |
New York Tax-Free Bond | None | None | None | None | None | None | None | None |
New York Tax-Free Money | None | None | None | None | None | None | None | None |
Overseas Stock | None | None | None | None | None | None | None | None |
61
Aggregate Holdings, | Independent Directors | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | None | |
Personal Strategy Balanced | None | None | None | None | None | None | None | None |
Personal Strategy Growth | None | None | None | None | None | None | None | None |
Personal Strategy Income | None | None | None | None | None | None | None | None |
Prime Reserve | None | None | None | $1-$10,000 | None | over $100,000 | $10,001-$50,000 | None |
Real Assets | None | None | None | None | None | None | None | None |
Real Estate | None | over $100,000 | None | None | None | over $100,000 | None | None |
Real Estate FundAdvisor Class | None | None | None | None | None | None | None | None |
TRP Reserve Investment | None | None | None | None | None | None | None | None |
Retirement 2005 | None | None | None | None | None | None | None | None |
Retirement 2005 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2005 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2010 | None | None | None | None | None | None | None | None |
Retirement 2010 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2010 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2015 | None | None | None | None | over $100,000 | None | None | None |
Retirement 2015 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2015 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2020 | None | None | None | None | over $100,000 | None | None | None |
Retirement 2020 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2020 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2025 | None | None | None | None | None | None | None | None |
Retirement 2025 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2025 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2030 | None | None | None | None | None | None | None | None |
Retirement 2030 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2030 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2035 | None | None | None | None | None | None | None | None |
Retirement 2035 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2035 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2040 | None | None | None | None | None | None | None | None |
Retirement 2040 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2040 FundR Class | None | None | None | None | None | None | None | None |
62
Aggregate Holdings, | Independent Directors | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | None | |
Retirement 2045 | None | None | None | None | None | None | None | None |
Retirement 2045 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2045 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2050 | None | None | None | None | None | None | None | None |
Retirement 2050 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2050 FundR Class | None | None | None | None | None | None | None | None |
Retirement 2055 | None | None | None | None | None | None | None | None |
Retirement 2055 FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement 2055 FundR Class | None | None | None | None | None | None | None | None |
Retirement Income | None | None | None | None | None | None | None | None |
Retirement Income FundAdvisor Class | None | None | None | None | None | None | None | None |
Retirement Income FundR Class | None | None | None | None | None | None | None | None |
Science & Technology | None | None | None | $1-$10,000 | None | $50,001-$100,000 | None | None |
Science & Technology FundAdvisor Class | None | None | None | None | None | None | None | None |
Short-Term Bond | None | over $100,000 | None | over $100,000 | None | None | over $100,000 | None |
Short-Term Bond FundAdvisor Class | None | None | None | None | None | None | None | None |
Small-Cap Stock | None | None | None | None | None | over $100,000 | None | None |
Small-Cap Stock FundAdvisor Class | None | None | None | None | None | None | None | None |
Small-Cap Value | None | None | None | None | None | None | None | None |
Small-Cap Value FundAdvisor Class | None | None | None | None | None | None | None | None |
Spectrum Growth | None | None | None | None | None | $10,001-$50,000 | None | None |
Spectrum Income | None | None | None | over $100,000 | None | None | None | None |
Spectrum International | None | None | None | None | None | None | None | None |
Strategic Income | None | None | None | None | None | None | None | None |
Strategic Income FundAdvisor Class | None | None | None | None | None | None | None | None |
Summit Cash Reserves | None | None | None | over $100,000 | $10,001-$50,000 | None | $1-$10,000 | None |
Summit GNMA | None | None | None | None | None | None | None | None |
Summit Municipal Income | None | None | None | None | None | None | over $100,000 | None |
Summit Municipal Intermediate | None | None | None | None | None | None | over $100,000 | None |
Summit Municipal Money Market | None | None | None | None | None | None | $50,001-$100,000 | None |
Tax-Efficient Equity | None | None | None | None | None | None | None | None |
Tax-Exempt Money | None | None | None | None | None | None | $1-$10,000 | None |
63
Aggregate Holdings, | Independent Directors | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | over $100,000 | None | |
Tax-Free High Yield | None | None | None | None | None | None | over $100,000 | None |
Tax-Free Income | None | None | None | None | None | None | over $100,000 | None |
Tax-Free Income FundAdvisor Class | None | None | None | None | None | None | None | None |
Tax-Free Short-Intermediate | None | None | None | None | None | None | over $100,000 | None |
Total Equity Market Index | None | None | None | None | None | None | None | None |
U.S. Bond Enhanced Index | None | None | None | None | None | None | None | None |
U.S. Large-Cap Core | None | None | None | None | None | None | None | None |
U.S. Large-Cap Core FundAdvisor Class | None | None | None | None | None | None | None | None |
U.S. Treasury Intermediate | None | None | None | $1-$10,000 | None | None | over $100,000 | None |
U.S. Treasury Long-Term | None | None | None | None | None | None | over $100,000 | None |
U.S. Treasury Money | None | None | None | None | None | None | $1-$10,000 | None |
Value | None | $50,001-$100,000 | None | None | None | None | over $100,000 | None |
Value FundAdvisor Class | None | None | None | None | None | None | None | None |
Virginia Tax-Free Bond | None | None | None | None | None | None | None | None |
Aggregate
Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
Africa & Middle East | None | $10,001-$50,000 | None | None | |||||
Balanced | None | None | None | None | |||||
Blue Chip Growth | None | None | None | None | |||||
Blue Chip Growth FundAdvisor Class | None | None | None | None | |||||
Blue Chip Growth FundR Class | None | None | None | None | |||||
California Tax-Free Bond | None | None | None | None | |||||
California Tax-Free Money | None | None | None | None | |||||
Capital Appreciation | None | None | over $100,000 | None | |||||
Capital Appreciation FundAdvisor Class | None | None | None | None | |||||
Capital Opportunity | None | None | over $100,000 | None | |||||
Capital Opportunity FundAdvisor Class | None | None | None | None | |||||
Capital Opportunity FundR Class | None | None | None | None | |||||
Corporate Income | None | None | None | None | |||||
Diversified Mid-Cap Growth | None | None | None | None | |||||
Diversified Small-Cap Growth | None | None | None | None | |||||
Dividend Growth | None | over $100,000 | None | None | |||||
Dividend Growth FundAdvisor Class | None | None | None | None | |||||
Emerging Europe | None | None | None | None |
64
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
Emerging Markets Bond | None | None | None | None | |||||
Emerging Markets Local Currency Bond | None | Over $100,000 | None | None | |||||
Emerging Markets Local Currency Bond FundAdvisor Class | None | None | None | None | |||||
Emerging Markets Stock | over $100,000 | None | over $100,000 | None | |||||
Equity Income | over $100,000 | None | None | over $100,000 | |||||
Equity Income FundAdvisor Class | None | None | None | None | |||||
Equity Income FundR Class | None | None | None | None | |||||
Equity Index 500 | None | None | None | None | |||||
European Stock | None | None | $50,001-$100,000 | None | |||||
Extended Equity Market Index | None | None | None | None | |||||
Financial Services | None | $10,001-$50,000 | None | None | |||||
Floating Rate | None | $10,001-$50,000 | None | None | |||||
Floating Rate FundAdvisor Class | None | None | None | None | |||||
Georgia Tax-Free Bond | None | None | None | None | |||||
Global Infrastructure | None | None | None | None | |||||
Global Infrastructure Fund-Advisor Class | None | None | None | None | |||||
Global Large-Cap Stock | None | None | None | None | |||||
Global Large-Cap Stock FundAdvisor Class | None | None | None | None | |||||
Global Real Estate | None | None | None | None | |||||
Global Real Estate FundAdvisor Class | None | None | None | None | |||||
Global Stock | over $100,000 | None | over $100,000 | over $100,000 | |||||
Global Stock FundAdvisor Class | None | None | None | None | |||||
Global Technology | None | None | None | None | |||||
GNMA | None | None | None | None | |||||
TRP Government Reserve Investment | None | None | None | None | |||||
Growth & Income | None | None | None | None | |||||
Growth Stock | over $100,000 | None | over $100,000 | over $100,000 | |||||
Growth Stock FundAdvisor Class | None | None | None | None | |||||
Growth Stock FundR Class | None | None | None | None | |||||
Health Sciences | None | None | None | None | |||||
High Yield | $10,001-$50,000 | over $100,000 | None | None | |||||
High Yield FundAdvisor Class | None | None | None | None | |||||
Inflation Focused Bond | None | None | None | None | |||||
Inflation Protected Bond | None | None | None | None | |||||
Institutional Africa & Middle East | None | None | None | None | |||||
Institutional Concentrated International Equity | None | None | None | None | |||||
Institutional Core Plus | None | None | None | None | |||||
Institutional Core Plus Fund-F Class | None | None | None | None | |||||
Institutional Emerging Markets Bond | None | None | None | None | |||||
Institutional Emerging Markets Equity | None | None | None | None | |||||
Institutional Floating Rate | None | None | None | None | |||||
Institutional Floating Rate Fund-F Class | None | None | None | None | |||||
Institutional Global Equity | None | None | None | None |
65
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
Institutional Global Large-Cap Equity | None | None | None | None | |||||
Institutional High Yield | None | None | None | None | |||||
Institutional International Bond | None | None | None | None | |||||
Institutional International Core Equity | None | None | None | None | |||||
Institutional International Growth Equity | None | None | None | None | |||||
Institutional Large-Cap Core Growth | None | None | None | None | |||||
Institutional Large-Cap Growth | None | None | None | None | |||||
Institutional Large-Cap Value | None | None | None | None | |||||
Institutional Mid-Cap Equity Growth | None | None | None | None | |||||
Institutional Small-Cap Stock | None | None | None | None | |||||
Institutional U.S. Structured Research | None | None | None | None | |||||
International Bond | None | None | None | None | |||||
International Bond FundAdvisor Class | None | None | None | None | |||||
International Discovery | $10,001-$50,000 | None | over $100,000 | None | |||||
International Equity Index | None | None | None | None | |||||
International Growth & Income | None | None | None | None | |||||
International Growth & Income FundAdvisor Class | None | None | None | None | |||||
International Growth & Income FundR Class | None | None | None | None | |||||
International Stock | $50,0001-$100,000 | over $100,000 | over $100,000 | None | |||||
International Stock FundAdvisor Class | None | None | None | None | |||||
International Stock FundR Class | None | None | None | None | |||||
Japan | None | None | None | over $100,000 | |||||
Latin America | None | None | None | None | |||||
Maryland Short-Term Tax-Free Bond | None | None | None | None | |||||
Maryland Tax-Free Bond | None | None | over $100,000 | None | |||||
Maryland Tax-Free Money | None | None | None | None | |||||
Media & Telecommunications | None | None | over $100,000 | over $100,000 | |||||
Mid-Cap Growth | over $100,000 | None | over $100,000 | None | |||||
Mid-Cap Growth FundAdvisor Class | None | None | None | None | |||||
Mid-Cap Growth FundR Class | None | None | None | None | |||||
Mid-Cap Value | None | None | None | None | |||||
Mid-Cap Value FundAdvisor Class | None | None | None | None | |||||
Mid-Cap Value FundR Class | None | None | None | None | |||||
New America Growth | None | None | over $100,000 | over $100,000 | |||||
New America Growth FundAdvisor Class | None | None | None | None | |||||
New Asia | over $100,000 | None | over $100,000 | None | |||||
New Era | None | None | None | None | |||||
New Horizons | over $100,000 | None | over $100,000 | None | |||||
New Income | None | None | $50,001-$100,000 | $50,001-$100,000 | |||||
New Income FundAdvisor Class | None | None | None | None | |||||
New Income FundR Class | None | None | None | None |
66
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
New Jersey Tax-Free Bond | None | None | None | None | |||||
New York Tax-Free Bond | None | None | None | None | |||||
New York Tax-Free Money | None | None | None | None | |||||
Overseas Stock | None | None | None | None | |||||
Personal Strategy Balanced | None | None | None | None | |||||
Personal Strategy Growth | None | None | None | None | |||||
Personal Strategy Income | None | None | None | None | |||||
Prime Reserve | over $100,000 | None | $50,001-$100,000 | $50,001-$100,000 | |||||
Real Assets | None | None | None | None | |||||
Real Estate | None | None | over $100,000 | None | |||||
Real Estate FundAdvisor Class | None | None | None | None | |||||
TRP Reserve Investment | None | None | None | None | |||||
Retirement 2005 | None | None | None | None | |||||
Retirement 2005 FundAdvisor Class | None | None | None | None | |||||
Retirement 2005 FundR Class | None | None | None | None | |||||
Retirement 2010 | None | None | None | None | |||||
Retirement 2010 FundAdvisor Class | None | None | None | None | |||||
Retirement 2010 FundR Class | None | None | None | None | |||||
Retirement 2015 | None | over $100,000 | None | None | |||||
Retirement 2015 FundAdvisor Class | None | None | None | None | |||||
Retirement 2015 FundR Class | None | None | None | None | |||||
Retirement 2020 | None | None | None | None | |||||
Retirement 2020 FundAdvisor Class | None | None | None | None | |||||
Retirement 2020 FundR Class | None | None | None | None | |||||
Retirement 2025 | None | None | None | None | |||||
Retirement 2025 FundAdvisor Class | None | None | None | None | |||||
Retirement 2025 FundR Class | None | None | None | None | |||||
Retirement 2030 | None | over $100,000 | None | None | |||||
Retirement 2030 FundAdvisor Class | None | None | None | None | |||||
Retirement 2030 FundR Class | None | None | None | None | |||||
Retirement 2035 | None | $10,001-$50,000 | None | None | |||||
Retirement 2035 FundAdvisor Class | None | None | None | None | |||||
Retirement 2035 FundR Class | None | None | None | None | |||||
Retirement 2040 | None | None | None | None | |||||
Retirement 2040 FundAdvisor Class | None | None | None | None | |||||
Retirement 2040 FundR Class | None | None | None | None | |||||
Retirement 2045 | None | None | None | None | |||||
Retirement 2045 FundAdvisor Class | None | None | None | None | |||||
Retirement 2045 FundR Class | None | None | None | None | |||||
Retirement 2050 | None | None | None | None | |||||
Retirement 2050 FundAdvisor Class | None | None | None | None | |||||
Retirement 2050 FundR Class | None | None | None | None | |||||
Retirement 2055 | over $100,000 | None | None | None |
67
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
Retirement 2055 FundAdvisor Class | None | None | None | None | |||||
Retirement 2055 FundR Class | None | None | None | None | |||||
Retirement Income | None | None | None | None | |||||
Retirement Income FundAdvisor Class | None | None | None | None | |||||
Retirement Income FundR Class | None | None | None | None | |||||
Science & Technology | over $100,000 | None | over $100,000 | $50,001-$100,000 | |||||
Science & Technology FundAdvisor Class | None | None | None | None | |||||
Short-Term Bond | None | None | None | None | |||||
Short-Term Bond FundAdvisor Class | None | None | None | None | |||||
Small-Cap Stock | $10,001-$50,000 | None | None | None | |||||
Small-Cap Stock FundAdvisor Class | None | None | None | None | |||||
Small-Cap Value | over $100,000 | None | None | None | |||||
Small-Cap Value FundAdvisor Class | None | None | None | None | |||||
Spectrum Growth | over $100,000 | None | over $100,000 | None | |||||
Spectrum Income | $10,001-$50,000 | None | over $100,000 | over $100,000 | |||||
Spectrum International | $10,001-$50,000 | None | over $100,000 | None | |||||
Strategic Income | None | None | None | None | |||||
Strategic Income FundAdvisor Class | None | None | None | None | |||||
Summit Cash Reserves | over $100,000 | $50,001-$100,000 | over $100,000 | over $100,000 | |||||
Summit GNMA | None | None | None | None | |||||
Summit Municipal Income | None | None | None | None | |||||
Summit Municipal Intermediate | None | None | None | None | |||||
Summit Municipal Money Market | None | over $100,000 | None | None | |||||
Tax-Efficient Equity | None | None | None | None | |||||
Tax-Exempt Money | None | None | None | None | |||||
Tax-Free High Yield | None | None | None | None | |||||
Tax-Free Income | None | None | None | None | |||||
Tax-Free Income FundAdvisor Class | None | None | None | None | |||||
Tax-Free Short-Intermediate | None | None | None | None | |||||
Total Equity Market Index | None | None | over $100,000 | None | |||||
U.S. Bond Enhanced Index | None | None | over $100,000 | None | |||||
U.S. Large-Cap Core | None | None | None | None | |||||
U.S. Large-Cap CoreAdvisor Class | None | None | None | None | |||||
U.S. Treasury Intermediate | None | None | None | None | |||||
U.S. Treasury Long-Term | None | None | None | None | |||||
U.S. Treasury Money | None | over $100,000 | None | None | |||||
Value | None | over $100,000 | over $100,000 | over $100,000 | |||||
Value FundAdvisor Class | None | None | None | None | |||||
Virginia Tax-Free Bond | None | None | None | None |
68
Portfolio Managers Holdings in the Price Funds
The following tables set forth the Price Fund holdings of each funds portfolio manager(s). The portfolio manager for each fund normally serves as chairman of the funds Investment Advisory Committee, and has day-to-day responsibility for managing the fund and executing the funds investment program.
Fund | Portfolio Manager | Range of Fund Holdings | All Funds |
Africa & Middle East | Oliver D.M. Bell | none | none |
Balanced | Charles M. Shriver | (b) | $500,001$1,000,000 |
Blue Chip Growth | Larry J. Puglia | $500,001$1,000,000 | over $1,000,000 |
Capital Appreciation | David R. Giroux | $500,001$1,000,000 | over $1,000,000 |
Capital Opportunity | Anna M. Dopkin | over $1,000,000 | over $1,000,000 |
Corporate Income | David A. Tiberii | $50,001$100,000 | over $1,000,000 |
Diversified Mid-Cap Growth | Donald J. Easley Donald J. Peters | $500,001$1,000,000 $500,001$1,000,000 | over $1,000,000 over $1,000,000 |
Diversified Small-Cap Growth | Sudhir Nanda | $100,001$500,000 | $500,001$1,000,000 |
Dividend Growth | Thomas J. Huber | $100,001$500,000 | over $1,000,000 |
Emerging Europe | Leigh Innes | $10,001$50,000 | $50,001$100,000 |
Emerging Markets Bond | Michael J. Conelius | $100,001$500,000 | over $1,000,000 |
Emerging Markets Corporate Bond | Michael J. Conelius | (e) | over $1,000,000 |
Emerging Markets Local Currency Bond | Andrew Keirle Christopher J. Rothery | (c) (c) | none $10,001$50,000 |
Emerging Markets Stock | Gonzalo Pangaro | over $1,000,000 | over $1,000,000 |
Equity Income | Brian C. Rogers | over $1,000,000 | over $1,000,000 |
Equity Index 500 | E. Frederick Bair | $10,001$50,000 | $500,001$1,000,000 |
European Stock | Dean Tenerelli | none | none |
Extended Equity Market Index | E. Frederick Bair Ken D. Uematsu | $10,001$50,000 $1$10,000 | $500,001$1,000,000 $100,001$500,000 |
Financial Services | Eric L. Veiel | $50,001$100,000 | $100,001$500,000 |
Floating Rate | Justin J. Gerbereux Paul M. Massaro | (d) (d) | $500,001$1,000,000 $500,001$1,000,000 |
Global Infrastructure | Susanta Mazumdar | none | none |
Global Large-Cap Stock | R. Scott Berg | $500,001$1,000,000 | over $1,000,000 |
Global Real Estate | David M. Lee | $100,001$500,000 | over $1,000,000 |
Global Stock | Robert N. Gensler | over $1,000,000 | over $1,000,000 |
Global Technology | David J. Eiswert | $500,001$1,000,000 | over $1,000,000 |
GNMA | Andrew C. McCormick | $100,001$500,000 | $500,001$1,000,000 |
Growth & Income | Thomas J. Huber | $100,001$500,000 | over $1,000,000 |
Growth Stock | P. Robert Bartolo | over $1,000,000 | over $1,000,000 |
Health Sciences | Kris H. Jenner | $500,001$1,000,000 | $500,001$1,000,000 |
High Yield | Mark J. Vaselkiv | $100,001$500,000 | over $1,000,000 |
Inflation Protected Bond | Daniel O. Shackelford | $50,001$100,000 | over $1,000,000 |
International Bond | Ian D. Kelson | $100,001$500,000 | $500,001$1,000,000 |
International Discovery | Justin Thomson | $100,001$500,000 | over $1,000,000 |
International Equity Index | E. Frederick Bair Neil Smith | $10,001$50,000 none | $500,001$1,000,000 none |
International Growth & Income | Jonathan H.W. Matthews | none | none |
International Stock | Robert W. Smith | over $1,000,000 | over $1,000,000 |
Japan | M. Campbell Gunn | none | none |
Latin America | Jose Costa Buck | $50,001$100,000 | $100,001$500,000 |
Maryland Short-Term Tax-Free Bond | Charles B. Hill | none | over $1,000,000 |
Maryland Tax-Free Bond | Hugh D. McGuirk | $500,001$1,000,000 | over $1,000,000 |
69
Fund | Portfolio Manager | Range of Fund Holdings | All Funds |
Maryland Tax-Free Money | Joseph K. Lynagh | $10,001$50,000 | over $1,000,000 |
Media & Telecommunications | Daniel Martino | $500,001$1,000,000 | $500,001$1,000,000 |
Mid-Cap Growth | Brian W.H. Berghuis | over $1,000,000 | over $1,000,000 |
Mid-Cap Value | David J. Wallack | over $1,000,000 | over $1,000,000 |
New America Growth | Joseph M. Milano | over $1,000,000 | over $1,000,000 |
New Asia | Anh Lu | none | none |
New Era | Timothy E. Parker | $100,001$500,000 | $500,001$1,000,000 |
New Horizons | Henry M. Ellenbogen | $100,001$500,000 | over $1,000,000 |
New Income | Daniel O. Shackelford | $50,001$100,000 | over $1,000,000 |
Overseas Stock | Raymond A. Mills | $500,001$1,000,000 | over $1,000,000 |
Personal Strategy Balanced | Charles M. Shriver | $1-$10,000 | $500,001$1,000,000 |
Personal Strategy Growth | Charles M. Shriver | none | $500,001$1,000,000 |
Personal Strategy Income | Charles M. Shriver | none | $500,001$1,000,000 |
Prime Reserve | Joseph K. Lynagh | $50,001$100,000 | over $1,000,000 |
Real Assets | Wyatt A. Lee | none | over $1,000,000 |
Real Estate | David M. Lee | $100,001$500,000 | over $1,000,000 |
Science & Technology | Kennard W. Allen | $500,001$1,000,000 | over $1,000,000 |
Short-Term Bond | Edward A. Wiese | $500,001$1,000,000 | over $1,000,000 |
Small-Cap Stock | Gregory A. McCrickard | $500,001$1,000,000 | over $1,000,000 |
Small-Cap Value | Preston G. Athey | over $1,000,000 | over $1,000,000 |
Spectrum Growth | Charles M. Shriver | (b) | $500,001$1,000,000 |
Spectrum Income | Charles M. Shriver | (b) | $500,001$1,000,000 |
Spectrum International | Christopher D. Alderson | none | over $1,000,000 |
Strategic Income | Steven C. Huber | $100,001$500,000 | $100,001$500,000 |
Summit Cash Reserves | Joseph K. Lynagh | $10,001$50,000 | over $1,000,000 |
Summit GNMA | Andrew C. McCormick | $100,001$500,000 | $500,001$1,000,000 |
Summit Municipal Income | Konstantine B. Mallas | $100,001$500,000 | over $1,000,000 |
Summit Municipal Intermediate | Charles B. Hill | $500,001$1,000,000 | over $1,000,000 |
Summit Municipal Money Market | Joseph K. Lynagh | none | over $1,000,000 |
Tax- Efficient Equity | Donald J. Peters | over $1,000,000 | over $1,000,000 |
Tax- Exempt Money | Joseph K. Lynagh | none | over $1,000,000 |
Tax- Free High Yield | James M. Murphy | $100,001$500,000 | over $1,000,000 |
Tax- Free Income | Konstantine B. Mallas | $100,001$500,000 | over $1,000,000 |
Tax- Free Short-Intermediate | Charles B. Hill | $100,001$500,000 | over $1,000,000 |
Total Equity Market Index | E. Frederick Bair Ken D. Uematsu | $10,001$50,000 $1-$10,000 | $500,001$1,000,000 $100,001$500,000 |
U.S. Bond Enhanced Index | Robert M. Larkins | $1-$10,000 | $100,001$500,000 |
U.S. Large-Cap Core | Jeffrey Rottinghaus | over $1,000,000 | over $1,000,000 |
U.S. Treasury Intermediate | Brian J. Brennan | $10,001$50,000 | $500,001$1,000,000 |
U.S. Treasury Long-Term | Brian J. Brennan | $10,001$50,000 | $500,001$1,000,000 |
U.S. Treasury Money | Joseph K. Lynagh | none | over $1,000,000 |
Value | Mark S. Finn | $100,001$500,000 | over $1,000,000 |
(a) See table beginning on page 7 for the fiscal year of the funds. The range of fund holdings as of the funds fiscal year is updated concurrently with each funds prospectus date as shown in the table beginning on page 7.
(b) On May 1, 2011, Charles Shriver became co-portfolio manager of the fund and on October 1, 2011, became sole portfolio manager of the fund. Therefore, the range of fund holdings is not yet available.
(c) The fund incepted on May 26, 2011, therefore the range of fund holdings is not yet available.
(d) The fund incepted on July 29, 2011, therefore the range of fund holdings is not yet available.
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(e) The fund incepted on May 24, 2012, therefore the range of fund holdings is not yet available.
The following funds may be purchased only by institutional investors.
Fund | Portfolio Manager | Range of Fund Holdings as of Funds Fiscal Yeara | All Funds |
Institutional Africa & Middle East | Oliver D.M. Bell | none | none |
Institutional Concentrated International Equity | Federico Santilli | none | none |
Institutional Core Plus | Brian J. Brennan | none | $500,001$1,000,000 |
Institutional Emerging Markets Bond | Michael J. Conelius | none | over $1,000,000 |
Institutional Emerging Markets Equity | Gonzalo Pangaro | none | over $1,000,000 |
Institutional Floating Rate | Justin J. Gerbereux Paul M. Massaro | $10,001$50,000 $10,001$50,000 | $500,001$1,000,000 $500,001$1,000,000 |
Institutional Global Equity | Robert N. Gensler | none | over $1,000,000 |
Institutional Global Large-Cap Equity | R. Scott Berg | none | over $1,000,000 |
Institutional High Yield | Paul A. Karpers | none | over $1,000,000 |
Institutional International Bond | Ian D. Kelson | none | $500,001$1,000,000 |
Institutional International Core Equity | Raymond A. Mills | none | over $1,000,000 |
Institutional International Growth Equity | Robert W. Smith | none | over $1,000,000 |
Institutional Large Cap Core Growth | Larry J. Puglia | none | over $1,000,000 |
Institutional Large-Cap Growth | Robert W. Sharps | $50,001$100,000 | over $1,000,000 |
Institutional Large-Cap Value | Mark S. Finn John D. Linehan Brian C. Rogers | none $100,001$500,000 none | over $1,000,000 over $1,000,000 over $1,000,000 |
Institutional Mid-Cap Equity Growth | Brian W.H. Berghuis | none | over $1,000,000 |
Institutional Small-Cap Stock | Gregory A. McCrickard | none | over $1,000,000 |
Institutional U.S. Structured Research | Anna M. Dopkin | none | over $1,000,000 |
(a) See table beginning on page 7 for the fiscal year of the funds. The range of fund holdings as of the funds fiscal year is updated concurrently with each funds prospectus date as shown in the table beginning on page 7.
The following funds are designed for persons residing in the indicated state. The portfolio managers reside in Maryland.
Fund | Portfolio Manager | Range of Fund Holdings | All Funds |
California Tax-Free Bond | Konstantine B. Mallas | none | over $1,000,000 |
California Tax-Free Money | Joseph K. Lynagh | none | over $1,000,000 |
Georgia Tax-Free Bond | Hugh D. McGuirk | none | over $1,000,000 |
New Jersey Tax-Free Bond | Konstantine B. Mallas | none | over $1,000,000 |
New York Tax-Free Bond | Konstantine B. Mallas | none | over $1,000,000 |
New York Tax-Free Money | Joseph K. Lynagh | none | over $1,000,000 |
Virginia Tax-Free Bond | Hugh D. McGuirk | none | over $1,000,000 |
(a) See table beginning on page 7 for the fiscal year of the funds. The range of fund holdings as of the funds fiscal year is updated concurrently with each funds prospectus date as shown in the table beginning on page 7.
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The following funds are designed such that a single individual would normally select one fund based on that persons expected retirement date.
Fund | Portfolio Manager | Range of Fund Holdings | All Funds |
Retirement 2005 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2010 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2015 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2020 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2025 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2030 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2035 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2040 | Jerome A. Clark | $500,001$1,000,000 | $500,001$1,000,000 |
Retirement 2045 | Jerome A. Clark | $10,001$50,000 | $500,001$1,000,000 |
Retirement 2050 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement 2055 | Jerome A. Clark | none | $500,001$1,000,000 |
Retirement Income | Jerome A. Clark | none | $500,001$1,000,000 |
(a) See table beginning on page 7 for the fiscal year of the funds. The range of fund holdings as of the funds fiscal year is updated concurrently with each funds prospectus date as shown in the table beginning on page 7.
The following funds are not available for direct purchase by members of the public.
Fund | Portfolio Manager | Range of Fund Holdings | All Funds |
Emerging Markets Bond Multi-Sector Account Portfolio | Michael J. Conelius | (b) | over $1,000,000 |
Emerging Markets Local Multi-Sector Account Portfolio | Andrew Keirle Christopher J. Rothery | (b) (b) | none $10,001-50,000 |
Floating Rate Multi-Sector Account Portfolio | Justin J. Gerbereux Paul M. Massaro | (b) (b) | $500,001$1,000,000 $500,001$1,000,000 |
High Yield Multi-Sector Account Portfolio | Mark J. Vaselkiv | (b) | over $1,000,000 |
Investment-Grade Corporate Multi-Sector Account Portfolio | David A. Tiberii | (b) | over $1,000,000 |
Mortgage-Backed Securities Multi-Sector Account Portfolio | Andrew C. McCormick | (b) | $500,001$1,000,000 |
Inflation Focused Bond | Daniel O. Shackelford | none | over $1,000,000 |
TRP Government Reserve Investment | Joseph K. Lynagh | none | over $1,000,000 |
TRP Reserve Investment | Joseph K. Lynagh | none | over $1,000,000 |
(a) See table beginning on page 7 for the fiscal year of the funds. The range of fund holdings as of the funds fiscal year is updated concurrently with each funds prospectus date as shown in the table beginning on page 7.
(b) The fund incepted on March 1, 2012, therefore the range of fund holdings is not yet available. However, the portfolio managers will not be eligible to invest in any funds that are not publicly available for purchase by individuals.
Portfolio Manager Compensation
Portfolio manager compensation consists primarily of a base salary, a cash bonus, and an equity incentive that usually comes in the form of a stock option grant. Occasionally, portfolio managers will also have the opportunity to participate in venture capital partnerships. Compensation is variable and is determined based on the following factors.
Investment performance over 1-, 3-, 5-, and 10-year periods is the most important input. The weightings for these time periods are generally balanced and are applied consistently across similar strategies. T. Rowe Price (and Price Hong Kong, Price Singapore, and T. Rowe Price International, as appropriate), evaluate
72
performance in absolute, relative, and risk-adjusted terms. Relative performance and risk-adjusted performance are determined with reference to the broad-based index (e.g., S&P 500) and the Lipper index (e.g., Large-Cap Growth) set forth in the total returns table in the funds prospectus, although other benchmarks may be used as well. Investment results are also measured against comparably managed funds of competitive investment management firms. The selection of comparable funds is approved by the applicable investment steering committee (as described under the Disclosure of Fund Portfolio Information section) and are the same as those presented to the directors of the Price Funds in their regular review of fund performance. Performance is primarily measured on a pretax basis though tax efficiency is considered and is especially important for the Tax-Efficient Equity Fund. Compensation is viewed with a long-term time horizon. The more consistent a managers performance over time, the higher the compensation opportunity. The increase or decrease in a funds assets due to the purchase or sale of fund shares is not considered a material factor. In reviewing relative performance for fixed-income funds, a funds expense ratio is usually taken into account.
Contribution to T. Rowe Prices overall investment process is an important consideration as well. Sharing ideas with other portfolio managers, working effectively with and mentoring younger analysts, and being good corporate citizens are important components of T. Rowe Prices long-term success and are highly valued.
All employees of T. Rowe Price, including portfolio managers, participate in a 401(k) plan sponsored by T. Rowe Price Group. In addition, all employees are eligible to purchase T. Rowe Price common stock through an employee stock purchase plan that features a limited corporate matching contribution. Eligibility for and participation in these plans is on the same basis as for all employees. Finally, all vice presidents of T. Rowe Price Group, including all portfolio managers, receive supplemental medical/hospital reimbursement benefits.
This compensation structure is used for all portfolios managed by the portfolio manager.
Assets Under Management
The following table sets forth the number and total assets of the mutual funds and accounts managed by the Price Funds portfolio managers as of the most recent fiscal year end of the funds they manage, unless otherwise indicated. All of the assets of the funds that have multiple portfolio managers are shown as being allocated to all managers of those funds. There are no accounts for which the advisory fee is based on the performance of the account.
Registered Investment | Other
Pooled Investment | Other Accounts | ||||
Portfolio Manager | Number | Total Assets | Number | Total Assets | Number | Total Assets |
Kennard Allen | 1 | $3,102,70,78 | | | 1 | $603,198,628 |
Christopher D. Alderson | 3 | 872,042,318 | 1 | $21,173,723 | | |
Preston G. Athey | 8 | 9,168,565,431 | 1 | 19,679,122 | 9 | 587,115,412 |
E. Frederick Bair | 8 | 17,150,915,150 | 2 | 2,391,185,385 | 1 | 811,161,364 |
P. Robert Bartolo | 11 | 30,207,276,552 | 1 | 208,412,429 | 7 | 749,027259 |
Oliver D.M. Bell | 2 | 247,877,614 | 1 | 21,173,723 | | |
R. Scott Berg | 4 | 119,137,480 | 5 | 696,696,322 | 3 | 591,365,006 |
Brian W.H. Berghuis | 8 | 86,683,189,723 | 1 | 67,086,911 | 7 | 1,101,843,817 |
Brian J. Brennan | 4 | 815,999,483 | 4 | 2,913,250,241 | 8 | 1,979,024,119 |
Jerome A. Clark | 53 | 68,370,671,628 | 15 | 2,029,541,876 | 5 | 2,385,872,600 |
Michael J. Conelius | 15 | 3,516,365,360 | 11 | 7,952,335,075 | | |
Jose Costa Buck | 1 | 2,243,148,884 | 1 | 89,243,046 | 1 | 247,146,930 |
Anna M. Dopkin | 6 | 3,309,084,125 | 5 | 6,401,929,188 | 58 | 16,421,521,623 |
Henry M. Ellenbogen | 2 | 7,716,962,189 | 3 | 652,975,062 | 8 | 1,058,456,657 |
Donald J. Easley | 1 | 155,195,205 | | | 2 | 35,365,052 |
David J. Eiswert | 3 | 1,893,251,472 | | | 2 | 383,706,054 |
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Registered Investment | Other Pooled Investment | Other Accounts | ||||
Portfolio Manager | Number | Total Assets | Number | Total Assets | Number | Total Assets |
Mark S. Finn | 4 | 13,584,385,217 | | | | |
Robert N. Gensler | 10 | 3,733,065,068 | 25 | 4,487,058,461 | 15 | 7,150,225,214 |
Justin T. Gerbereux | 1 | 1,867,768,546 | | | | |
David R. Giroux | 3 | 16,218,605,638 | 1 | 101,673,792 | 1 | 340,951,237 |
M. Campbell Gunn | 1 | 179,526,130 | 2 | 187,943,279 | 2 | 1,359,258,636 |
Charles B. Hill | 3 | 3,605,821,926 | 2 | 285,144,551 | 6 | 1,476,196,896 |
Steven C. Huber | 1 | 136,533,140 | | | | |
Thomas J. Huber | 4 | 4,183,041,965 | 1 | 201,062,327 | | |
Leigh Innes | 1 | 495,499,092 | 1 | 13,003,573 | | |
Kris H. Jenner | 5 | 2,987,390,518 | | | | 51,896,342 |
Paul A. Karpers | 1 | 1,464,352,277 | | | 3 | 1,096,552,100 |
Andrew Keirle(a) | | | | | | |
Ian D. Kelson | 4 | 4,492,957,863 | 13 | 852,589,723 | 1 | 751,925 |
John H. Laporte | 2 | 4,238,068,702 | 3 | 194,848,652 | 9 | 594,450,745 |
Robert M. Larkins | 1 | 1,188,585,790 | 3 | 1,357,890,750 | 1 | 102,069,815 |
David M. Lee | 4 | 3,558,156,029 | | | 3 | 95,518,197 |
Wyatt A. Lee | 1 | 1,574,711,359 | | | | |
John D. Linehan | 3 | 905,377,274 | 4 | 1,196,427,730 | 19 | 1,156,064,403 |
Anh Lu | 1 | 4,127,109,997 | 2 | 187,752,632 | 1 | 377,440,763 |
Joseph K. Lynagh | 11 | 30,498,954,010 | | | 7 | 352,689,669 |
Konstantine B. Mallas | 5 | 4,321,045,482 | | | 4 | 88,462,309 |
Daniel Martino | 1 | 1,933,372,411 | | | | |
Paul M. Massaro | 1 | 1,867,768,546 | | | | |
Jonathan H.W. Matthews | 1 | 4,402,296,229 | 1 | 194,452,226 | | |
Susanta Mazumdar | 2 | 185,118,107 | | | 1 | 8,648,853 |
Andrew C. McCormick | 5 | 2,172,948,149 | | | 3 | 29,461,647 |
Gregory A. McCrickard | 4 | 7,332,409,079 | 2 | 269,683,892 | 4 | 516,835,977 |
Hugh D. McGuirk | 3 | 2,630,485,985 | | | 10 | 323,341,712 |
Joseph M. Milano | 2 | 1,438,422,053 | | | | |
Raymond A. Mills | 5 | 4,413,954,072 | 1 | 198,803,999 | 3 | 855,549,187 |
James M. Murphy | 1 | 1,647,680,641 | | | | |
Sudhir Nanda | 1 | 133,534,740 | | | | |
Gonzalo Pangaro | 3 | 6,425,958,045 | 6 | 5,251,953,207 | 6 | 2,937,108,505 |
Timothy E. Parker | 3 | 7,166,263,889 | 1 | 225,044,488 | 9 | 1,099,422,490 |
Donald J. Peters | 7 | 1,756,268,421 | | | 18 | 1,387,545,565 |
Larry J. Puglia | 10 | 18,301,850,367 | 1 | 79,652,154 | 14 | 2,430,254,777 |
Brian C. Rogers | 12 | 29,710,218,883 | 2 | 621,056,028 | 17 | 2,001,130,429 |
Christopher J. Rothery(a) | | | | | | |
Jeffrey Rottinghaus | 3 | 132,352,204 | 2 | 287,720,385 | | |
Federico Santilli | 1 | 7,349,037 | | | | |
Daniel O. Shackelford | 8 | 20,184,944,374 | 2 | 2,453,125,607 | 11 | 2,485,588,123 |
Robert W. Sharps | 8 | 5,767,241,836 | 6 | 4,485,586,792 | 38 | 11,539,307,246 |
Charles M. Shriver | 6 | 16,839,231,809 | | | | |
Neil Smith | 1 | 354,016,138 | | | 1 | 166,161,566 |
Robert W. Smith | 4 | 7,630,984,891 | 1 | 214,040,077 | 2 | 235,089,430 |
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Registered Investment | Other Pooled Investment | Other Accounts | ||||
Portfolio Manager | Number | Total Assets | Number | Total Assets | Number | Total Assets |
David Stanley | 1 | 136,533,140 | 2 | 27,440,550 | 2 | 7,835,204 |
Dean Tenerelli | 1 | 711,985,137 | 2 | 453,771,831 | | |
Justin Thomson | 1 | 2,425,760,938 | 1 | 12,118,853 | | |
David A. Tiberii | 3 | 817,122,149 | 1 | 92,226,721 | 8 | 1,862,763,542 |
Ken D. Uematsu | 5 | 1,409,583,950 | 2 | 2,126,652,987 | 1 | 644,999,798 |
Mark J. Vaselkiv | 7 | 9,458,526,049 | 7 | 2,774,312,072 | 21 | 3,489,851,223 |
Eric L. Veiel | 1 | 354,169,465 | | | | |
David J. Wallack | 3 | 10,560,849,482 | 1 | 67,909,393 | 3 | 451,457,033 |
Edward A. Wiese | 6 | 9,140,644,666 | 1 | 287,052,157 | 9 | 2,537,448,001 |
Ernest C. Yeung | 1 | 2,425,738,066 | | | | |
(a) This individual assumed portfolio management responsibility of a mutual fund on May 26, 2011. The information on accounts managed is not yet available.
Conflicts of Interest
Portfolio managers at T. Rowe Price and its affiliates typically manage multiple accounts. These accounts may include, among others, mutual funds, separate accounts (assets managed on behalf of institutions such as pension funds, colleges and universities, foundations), offshore funds and commingled trust accounts. Portfolio managers make investment decisions for each portfolio based on the investment objectives, policies, practices, and other relevant investment considerations that the managers believe are applicable to that portfolio. Consequently, portfolio managers may purchase (or sell) securities for one portfolio and not another portfolio. T. Rowe Price and its affiliates have adopted brokerage and trade allocation policies and procedures which they believe are reasonably designed to address any potential conflicts associated with managing multiple accounts for multiple clients. Also, as disclosed under the Portfolio Manager Compensation section, our portfolio managers compensation is determined in the same manner with respect to all portfolios managed by the portfolio manager. Please see the Portfolio Transactions section of this SAI for more information on our brokerage and trade allocation policies.
T. Rowe Price funds may, from time to time, own shares of Morningstar, Inc. Morningstar is a provider of investment research to individual and institutional investors, and publishes ratings on mutual funds, including the Price Funds. T. Rowe Price manages the Morningstar retirement plan and T. Rowe Price and its affiliates pay Morningstar for a variety of products and services. In addition, Morningstar may provide investment consulting and investment management services to clients of T. Rowe Price or its affiliates.
As of the date indicated, the directors and executive officers of the funds, as a group, owned less than 1% of the outstanding shares of any fund, except for the funds shown in the following table.
Fund | %* |
Africa & Middle East | 1.3 |
Capital Opportunity | 1.3 |
Emerging Markets Local Currency Bond | 1.3 |
Institutional Floating Rate FundF Class | 2.3 |
Global Large-Cap Stock | 5.4 |
Global Stock | 2.5 |
Maryland Short-Term Tax-Free Bond | 2.4 |
75
Fund | %* |
Maryland Tax-Free Bond | 1.2 |
Maryland Tax-Free Money | 2.9 |
Summit Cash Reserves | 1.2 |
Summit Municipal Money Market | 1.2 |
Tax-Exempt Money | 1.2 |
Tax-Efficient Equity | 3.2 |
U.S. Large-Cap Core | 3.8 |
* Based on December 31, 2011 data for the directors and executive officers.
As of January 31, 2012, the following shareholders of record owned more than 5% of the outstanding shares of the indicated funds and/or classes.
Fund | Shareholder | % |
Africa & Middle East | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of University of Arkansas Foundation, Inc. | 5.98 |
Balanced | T. Rowe Price Trust Company | 40.76(c) |
Blue Chip Growth | Edward
D. Jones & Company National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services TRBlue Chip Growth Fund | 10.98 |
76
Fund | Shareholder | % |
Blue Chip GrowthAdvisor Class | Charles
Schwab & Company, Inc. National Financial Services for the Exclusive
Benefit of Reliance Trust Company The Union Central Life Insurance
Company Vanguard Fiduciary Trust Company | 10.34 |
Blue Chip GrowthR Class | American United Life Emjay Corporation Custodian ING Life Insurance & Annuity Company Nationwide Trust Company FSB State Street Corporation Trustee | 11.25 |
California Tax-Free Bond | Charles Schwab & Company, Inc. | 5.40 |
California Tax-Free Money | Georgette OConnor Day TRGeorgette OConnor
Day Trust | 12.56 |
Capital Appreciation | Charles
Schwab & Company, Inc. National Financial Services for the Exclusive
Benefit of T. Rowe Price Trust Company | 8.60 |
77
Fund | Shareholder | % |
Capital AppreciationAdvisor Class | Ameritas
Life Insurance Corporation Charles
Schwab & Company, Inc. National Financial Services for the Exclusive
Benefit of | 13.95 |
Capital Opportunity | McWood & Company T. Rowe Price Associates | 44.97(a) |
Capital Opportunity FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company | 45.84(a) |
Capital Opportunity FundR Class | Charles Schwab & Company, Inc. Nationwide Trust Company FSB Reliance
Trust Company NFS LLC
FEBO Reliance Trust Co. TTEE/CUSTFor TRS FBO Various Retirement Plans | 37.33(a) |
Corporate Income | Spectrum Income Fund | 43.04(d) |
Dividend Growth | Edward D. Jones & Company MLPF&S for the Sole Benefit of Its Customers National Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company | 20.83 |
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Fund | Shareholder | % |
Dividend Growth FundAdvisor Class | National
Financial Services for the Exclusive Benefit of Wells Fargo Bank | 73.09(a) |
Emerging Europe | National Financial Services for the Exclusive Benefit of | 9.77 |
Emerging Markets Bond | Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Spectrum
Income Fund | 6.99 12.32 5.10 5.89 17.46 |
Emerging Markets Stock | National Financial Services for the Exclusive Benefit of Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2040 | 11.37 5.33 8.69 6.15 |
Emerging Markets Local Currency Bond | T. Rowe
Price Associates | 25.85(e) |
Emerging Markets Local Currency BondAdvisor Class | T. Rowe Price Associates UMB Bank NA C/F | 83.31(e) |
Equity Income | Edward D. Jones & Company National Financial Services for the Exclusive Benefit of T. Rowe
Price Trust Company | 9.02 |
Equity Income FundAdvisor Class | Citigroup Global Markets Inc. John Hancock Life Insurance USA National Financial Services
for the Exclusive Benefit of | 5.16 |
79
Fund | Shareholder | % |
Equity Income FundR Class | American
United Life DCGT as Trustee and/or Custodian Hartford Life Insurance Company Nationwide Trust Company
FSB Wells Fargo Bank | 18.95 |
Equity Index 500 | Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 | 10.35 10.07 17.38 7.45 8.79 |
European Stock | Charles Schwab & Company, Inc. Spectrum
International Fund | 7.44 |
Extended Equity Market Index | T. Rowe Price Trust Company | 12.81 |
Financial Services | T. Rowe
Price Retirement Plan Services, Inc. | 6.54 |
Floating Rate | T. Rowe
Price Associates | 51.26(e) |
Floating Rate FundAdvisor Class | Ameritrade,
Inc. FBOP.O. Box 2226 Charles Schwab & Company, Inc. T. Rowe Price Associates | 22.20 |
Georgia Tax-Free Bond | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 14.21 |
Global Infrastructure | T. Rowe Price Associates | 13.64 |
80
Fund | Shareholder | % |
Global Infrastructure FundAdvisor Class | Ameritrade, Inc. FBO SEI Private Trust Company SEI Private
Trust Company T. Rowe Price Associates | 5.97 |
Global Large-Cap Stock | San Gabriel III LLC T. Rowe Price Associates Trustees of T. Rowe Price U.S. Retirement Program | 6.80 |
Global Large-Cap Stock FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Pershing LLC T. Rowe Price Associates | 10.96 |
Global Real Estate | T. Rowe Price Associates | 19.23 |
Global Real Estate FundAdvisor Class | Avon Dental Group Trustee Del Jean Nash Trustee FIIOC as Agent National Financial Services for the Exclusive Benefit of | 5.68 |
Global Stock | JPMorgan as Directed Trustee for Ernest & Young T. Rowe Price Associates T. Rowe
Price Retirement Plan Services, Inc. | 22.38 |
81
Fund | Shareholder | % |
Global Stock FundAdvisor Class | FIIOC as
Agent National
Financial Services for the Exclusive Benefit of | 14.72 |
Global Technology | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 14.77 |
GNMA | Spectrum Income Fund | 35.86(d) |
TRP Government Reserve Investment | Barnaclesailc/o T. Rowe Price Associates Bridgesail & Company T. Rowe Price Retirement Plan Services, Inc. | 49.33(d) |
Growth & Income | T. Rowe Price Trust Company | 7.67 |
Growth Stock | National Financial Services for the Exclusive Benefit of Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2040 T. Rowe Price Trust Company | 7.83 |
Growth Stock FundAdvisor Class | ICMA Retirement Trust National Financial Services for the Exclusive
Benefit of | 6.23 |
Growth Stock FundR Class | American United Life Hartford Life Insurance Company Nationwide
Trust Company FSB State Street Corporation Trustee Suntrust Bank | 5.10 |
82
Fund | Shareholder | % |
Health Sciences | Charles Schwab & Company, Inc. John Hancock Life Insurance Company USA National
Financial Services for the Exclusive Benefit of | 7.21 |
High Yield | Retirement Portfolio 2020 Spectrum Income Fund | 6.33 |
High Yield FundAdvisor Class | Genworth Financial Trust Company National Financial Services for the Exclusive Benefit of | 22.73 |
Inflation Focused Bond | Retirement Portfolio 2005 Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Income Portfolio T. Rowe Price Services, Inc. | 6.00 20.13 13.11 15.05 24.07 5.53 |
Inflation Protected Bond | T. Rowe
Price Retirement Plan Services, Inc. | 9.58 |
Institutional Africa & Middle East | Crystal Bridges Museum of American Art Inc. John S. and James L. Knight Foundation National Financial Services
for the Exclusive Benefit of SEI Private Trust Company | 12.99 |
Institutional Concentrated International Equity | T. Rowe Price Associates | 100.00(e) |
83
Fund | Shareholder | % |
Institutional Core Plus | JPMorgan Chase Bank Trustee for Janette
Stump, James Carney & Howard Kline, TRSSpecial Metals Corporation Retiree Benefit Trust National Financial Services
for the Exclusive Benefit of The Church Foundation T. Rowe Price Associates | 25.40(a) |
Institutional Core PlusF Class | LPL Financial T. Rowe Price Associates | 14.59 |
Institutional Emerging Markets Bond | Charles Schwab & Company, Inc. Ladybird & Company Ladybug & Company Lakeside & Company National Financial Services for the Exclusive Benefit of | 6.64 |
Institutional Emerging Markets Equity | Ladybug & Company Lakeside & Company MLPF&S for the Sole Benefit of Its Customers National
Financial Services for the Exclusive Benefit of Wells Fargo Bank NA | 7.22 6.62 13.03 13.81 |
84
Fund | Shareholder | % |
Institutional Floating Rate | Arlington County Employees DPERS-Floating Rate Fund
Account National Financial Services for the Exclusive Benefit of Seamile & Company Taskforce & Company Tuna & Company | 5.17 |
Institutional Floating RateF Class | Mac & Company | 9.98 |
Institutional Global Equity | Mac &
Company SEI Private Trust Company State Street Bank & Trust Company U.S. Bank
Trustee | 52.60(a) |
85
Fund | Shareholder | % |
Institutional Global Large-Cap Equity | Croda Inc.
Defined Benefit Plan Master TRc/o State Street SEI Private Trust Company State Street Bank &
Trust Company T. Rowe Price Associates The Board
of Trustees of the Leland Stanford Junior | 11.68 |
Institutional High Yield | Bread & Company Brown Brothers Harriman & Company Custodian Goldman Sachs & Company National Financial Services
for the Exclusive Benefit of Tuna & Company | 6.87 |
Institutional International Bond | Charles Schwab & Company, Inc. Ladybird & Company Ladybug & Company Lakeside & Company | 7.24 34.31(d) 9.92 |
Institutional International Core Equity | Dekalb
County Pension Plan T. Rowe Price Associates | 93.94(a) |
86
Fund | Shareholder | % |
Institutional International Growth Equity | National
Financial Services for the Exclusive Benefit of Saxon & Company State Street Bank & Trust Company Custodian State Street Bank & Trust Company Custodian The Church Foundation | 6.42 |
Institutional Large-Cap Core Growth | JPMorgan Chase as Trustee FBOAstellas U.S.
Retirement and Savings National
Financial Services for the Exclusive Benefit of Orchard Trust Company LLC
Trust/Custodian SEI Private Trust Company State Street
Corporation TRFBO Hallmark Cards, Inc. | 8.99 |
Institutional Large-Cap Growth | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of SEI Private
Trust Company | 8.44 |
Institutional Large-Cap Value | Charles Schwab & Company, Inc. JPMorgan
Chase Bank NA Trustee National Financial Services for the Exclusive Benefit of Prudential
Bank & Trust | 16.39 |
87
Fund | Shareholder | % |
Institutional Mid-Cap Equity Growth | ING as
Custodian/RecordkeeperKentucky Public Employees Deferred Compensation Plan Mac & Company National
Financial Services for the Exclusive Benefit of T. Rowe Price Retirement
Plan Services, Inc. Vanguard
Fiduciary Trust Company Wells Fargo Bank | 9.29 |
Institutional Small-Cap Stock | National Financial Services for the Exclusive
Benefit of Vanguard Fiduciary Trust Company | 61.40(a) |
Institutional U.S. Structured Research | Mitra & Company National
Financial Services for the Exclusive Benefit of The Harry and Jeanette Weinberg
Foundation, Inc. Wells Fargo
Bank NA | 6.30 |
International Bond | Charles Schwab & Company, Inc. Edward
D. Jones & Company National
Financial Services for the Exclusive Benefit of Retirement Portfolio 2020 Spectrum Income Fund | 5.53 14.65 |
88
Fund | Shareholder | % |
International Bond FundAdvisor Class | Citigroup Global Markets Inc. National Financial Services for the Exclusive Benefit of | 29.15(a) |
International Discovery | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of State Street
Bank & Trust Company T. Rowe Price Retirement Plan Services, Inc. Vanguard Fiduciary Trust Company | 5.30 |
International Equity Index | T. Rowe Price Retirement Plan Services, Inc. | 16.38 |
International Growth & Income | Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 Spectrum
Growth Fund | 6.19 14.92 8.93 14.62 6.76 10.31 7.28 |
International Growth & Income FundAdvisor Class | American
United Life Hartford Securities Distribution Company Inc. Orchard
Trust Company LLC Trustee State Street Corporation Trustee | 6.60 |
89
Fund | Shareholder | % |
International Growth & Income FundR Class | American
United Life DCGT as Trustee and/or Custodian Nationwide Trust Company FSB Saxon & Company State Street Corporation Trustee | 19.64 25.36(a) |
International Stock | Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2040 T. Rowe Price Trust Company | 9.95 5.94 9.73 6.86 5.70 |
International Stock FundAdvisor Class | National
Financial Services for the Exclusive Benefit of | 91.72(a) |
International Stock FundR Class | American United Life American
United Life Hartford Securities Distribution Company Inc. Nationwide Trust Company FSB | 6.83 |
Japan | Charles Schwab & Company, Inc. Spectrum
International Fund | 7.34 |
Latin America | Charles Schwab & Company, Inc. | 8.37 |
Maryland Short-Term Tax-Free Bond | Charles Schwab & Company, Inc. | 10.43 |
Maryland Tax-Free Money | T. Rowe Price Associates | 6.61 |
Media & Telecommunications | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of T. Rowe
Price Trust Company | 6.73 |
90
Fund | Shareholder | % |
Mid-Cap Growth | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of T. Rowe
Price Trust Company | 6.95 |
Mid-Cap Growth FundAdvisor Class | MLPF&S for the Sole Benefit of its Customers National
Financial Services for the Exclusive Benefit of Orchard Trust Company LLC
Trustee | 6.65 |
Mid-Cap Growth FundR Class | American United Life ING Life Insurance & Annuity Company Nationwide Trust Company FSB Suntrust Bank | 8.95 |
Mid-Cap Value | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 16.30 |
Mid-Cap Value FundAdvisor Class | Morgan Stanley Smith Barney National Financial Services for the Exclusive
Benefit of | 8.03 |
Mid-Cap Value FundR Class | American United Life ING Life Insurance & Annuity Company Nationwide Trust Company
FSB State Street Corporation Trustee Suntrust Bank | 5.22 16.41 |
New America Growth | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company | 10.21 |
91
Fund | Shareholder | % |
New America Growth FundAdvisor Class | Charles
Schwab & Company, Inc. Mercer Trust Company Trustee National Financial Services
for the Exclusive Benefit of New York Life Trust Company VRSCOFBO AIGFSB Customer Trustee | 13.95 |
New Asia | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 6.07 |
New Era | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 8.38 |
New Horizons | National
Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company | 7.44 |
New Income | Charles
Schwab & Company, Inc. Edward D. Jones & Company Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Spectrum Income Fund | 16.12 7.50 13.28 5.51 6.30 7.78 |
92
Fund | Shareholder | % |
New Income FundAdvisor Class | Capital
Bank & Trust Company Trustee National Financial Services for the Exclusive Benefit of Orchard Trust Company LLC | 5.08 |
New Income FundR Class | Nationwide Trust Company FSB NFS LLC FEBOMarshall & Ilsley Trust Company NA State Street Corporation Trustee Wells Fargo
Bank | 14.82 |
New Jersey Tax-Free Bond | National Financial Services for the Exclusive
Benefit of | 14.59 |
New York Tax-Free Money | H. Mark GlasbergPaula D. Glasberg Joint Tenants | 10.55 |
Overseas Stock | Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 | 5.01 6.88 16.56 9.86 16.20 7.51 11.44 |
Personal Strategy Balanced | Mac & Company National Financial Services for the Exclusive Benefit of State Street
Bank & Trust Company T. Rowe Price Trust Company TRBalancedAttn.: Asset Reconciliation | 5.69 8.80 |
Personal Strategy Growth | National Financial Services for the Exclusive
Benefit of State Street Bank & Trust Company T. Rowe Price Trust Company TRAttn.: Growth Asset | 5.53 |
93
Fund | Shareholder | % |
Personal Strategy Income | National Financial Services for the Exclusive
Benefit of T. Rowe Price Trust Company TRIncomeAttn.: Asset Reconciliation | 5.34 |
Prime Reserve | T. Rowe Price Trust Company | 10.81 |
Real Assets | Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 | 5.32 7.14 17.44 10.35 17.01 7.88 12.01 |
Real Estate | Charles
Schwab & Company, Inc. First Clearing LLC T. Rowe Price Retirement Plan Services, Inc. | 5.58 |
Real Estate FundAdvisor Class | Hartford Securities Distribution Company Inc. Maxim Series Fund Inc. National Financial Services for the Exclusive
Benefit of | 6.46 |
TRP Reserve Investment | Seamile & Company State Street
Bank & Trust Company T. Rowe Price Associates, Inc. Tuna & Company | 11.51 7.59 |
Retirement 2005 FundAdvisor Class | National Financial Services for the Exclusive Benefit of Reliance Trust Company Taynik & Company | 42.58(a) |
94
Fund | Shareholder | % |
Retirement 2005 FundR Class | ING Life Insurance & Annuity Company NFS LLC FEBO State Street Bank & Trust Company Trustee | 5.12 86.92(a) |
Retirement 2010 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 7.78 |
Retirement 2010 FundAdvisor Class | Charles Schwab & Company, Inc. Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive
Benefit of Taynik & Company | 5.81 |
Retirement 2010 FundR Class | Hartford Life Insurance Company Massachusetts Mutual Life Insurance Company NFS LLC FEBO State Street Bank & Trust Company Trustee Saxon & Company State Street Corporation
Trustee Suntrust Bank Taynik
& Company | 6.00 18.37 |
Retirement 2015 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 7.87 |
Retirement 2015 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company | 22.25 |
95
Fund | Shareholder | % |
Retirement 2015 FundR Class | ING Life Insurance & Annuity Company NFS LLC FEBO State Street Bank & Trust Company Trustee Reliance Trust Company | 27.98(a) |
Retirement 2020 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.25 |
Retirement 2020 FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Taynik & Company | 9.32 |
Retirement 2020 FundR Class | Hartford Life Insurance Company Massachusetts Mutual Life Insurance Company Reliance Trust Company Saxon & Company State Street Corporation Trustee Suntrust Bank Taynik
& Company | 7.75 21.94 |
Retirement 2025 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 8.79 |
Retirement 2025 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company | 24.23 |
Retirement 2025 FundR Class | ING Life Insurance & Annuity Company NFS
LLC FEBO State Street Bank & Trust Company Trustee | 33.87(a) |
Retirement 2030 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.22 |
96
Fund | Shareholder | % |
Retirement 2030 FundAdvisor Class | Massachusetts
Mutual Life Insurance Company National Financial Services
for the Exclusive Benefit of Taynik & Company | 9.64 |
Retirement 2030 FundR Class | Hartford Life Insurance Company Massachusetts Mutual Life Insurance Company Saxon & Company State Street Corporation
Trustee Suntrust Bank Taynik
& Company | 6.91 26.55(a) |
Retirement 2035 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 8.37 |
Retirement 2035 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company Taynik & Company | 26.87(a) |
Retirement 2035 FundR Class | ING Life Insurance & Annuity Company NFS LLC FEBO State Street Bank & Trust Company Trustee Reliance Trust Company | 40.71(a) |
Retirement 2040 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.06 |
Retirement 2040 FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Taynik & Company Wells Fargo
Bank | 9.65 |
97
Fund | Shareholder | % |
Retirement 2040 FundR Class | Hartford
Life Insurance Company Massachusetts Mutual Life
Insurance Company NFS LLC FEBO State Street Bank & Trust
Company Trustee State Street Corporation Trustee Suntrust Bank Taynik
& Company | 6.45 |
Retirement 2045 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 8.30 |
Retirement 2045 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company Taynik & Company | 26.62(a) |
Retirement 2045 FundR Class | ING Life Insurance & Annuity Company NFS LLC FEBO State Street Bank & Trust Company Trustee Wells Fargo Bank | 42.50(a) |
Retirement 2050 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 8.67 |
Retirement 2050 FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Taynik & Company | 9.47 |
98
Fund | Shareholder | % |
Retirement 2050 FundR Class | Hartford
Life Insurance Company Massachusetts Mutual Life
Insurance Company Saxon & Company State Street
Corporation Trustee Taynik & Company | 8.36 34.30(a) |
Retirement 2055 | National
Financial Services for the Exclusive Benefit of T. Rowe Price Retirement
Plan Services, Inc. | 6.82 |
Retirement 2055 FundAdvisor Class | National Financial Services for the Exclusive Benefit of Orchard Trust Company Trustee Reliance
Trust Company Taynik & Company | 25.29(a) |
Retirement 2055 FundR Class | DCGT as Trustee and/or Custodian Emjay Corporation
Custodian ING Life Insurance & Annuity Company NFS LLC FEBO State Street Bank & Trust Company Trustee | 5.12 7.79 |
Retirement Income | National Financial Services for the Exclusive
Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.34 |
Retirement Income FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Reliance Trust Company State Street
Corporation Trustee Taynik & Company | 7.38 |
99
Fund | Shareholder | % |
Retirement Income FundR Class | ING Life Insurance & Annuity Company PIMS/Prudential Retirement State Street
Corporation Trustee Taynik & Company | 7.67 13.27 |
Science & Technology | T. Rowe Price Retirement Plan Services, Inc. | 18.80 |
Science & TechnologyAdvisor Class | John Hancock Life Insurance Company USA National Financial Services for the Exclusive Benefit of | 77.23(a) |
Short-Term Bond | First Clearing LLC National Financial Services
for the Exclusive Benefit of Spectrum Income Fund | 5.17 8.58 |
Short-Term Bond FundAdvisor Class | National
Financial Services for the Exclusive Benefit of | 79.75(a) |
Small-Cap Stock | Minnesota State Retirement System National Financial Services
for the Exclusive Benefit of T. Rowe Price Trust Company Vanguard Fiduciary Trust Company | 6.50 |
100
Fund | Shareholder | % |
Small-Cap Stock FundAdvisor Class | DCGT as
Trustee and/or Custodian Fifth Third Bank TRFBO Cintas Partners Plan Horace Mann Life Insurance Company National Financial Services
for the Exclusive Benefit of Vanguard Fiduciary Trust Company Wells Fargo Bank | 5.07 |
Small-Cap Value | National Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company | 10.61 |
Small-Cap Value FundAdvisor Class | ICMA Retirement Trust John Hancock
Life Insurance Company USA National Financial Services
for the Exclusive Benefit of | 31.83(a) 17.14 |
Spectrum Growth | T. Rowe Price Trust Company | 11.44 |
Spectrum Income | T. Rowe Price Trust Company | 18.35 |
Strategic Income | National Financial Services for the Exclusive Benefit of T. Rowe Price Associates Young Womens
Christian Association | 11.71 |
Strategic IncomeAdvisor Class | Pershing LLC T. Rowe
Price Associates | 11.68 32.54(e) |
Summit Cash Reserves | T. Rowe Price Associates T. Rowe Price Trust Company | 11.49 |
101
Fund | Shareholder | % |
Summit Municipal Income | Charles Schwab & Company, Inc. Edward D. Jones & Company First Clearing LLC Saxon & Company | 9.47 20.26 |
Summit Municipal Intermediate | Charles Schwab & Company, Inc. Edward D. Jones & Company First Clearing LLC MLPF&S for the Sole Benefit of Its Customers Saxon & Company | 12.25 8.57 |
Summit Municipal Money Market | T. Rowe
Price Associates | 10.28 |
Tax-Exempt Money | Edward
D. Jones & Company Pershing
LLC for Exclusive Benefit of Susan A. FeithWisconsin Rapids, Wisconsin T. Rowe Price Associates | 15.30 |
Tax-Free High Yield | Charles Schwab & Company, Inc. | 9.32 |
Tax-Free Income FundAdvisor Class | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of | 27.13(a) |
Tax-Free Short-Intermediate | Charles Schwab & Company, Inc. First Clearing LLC National Financial Services for the Exclusive
Benefit of | 9.17 14.27 |
Total Equity Market Index | Maryland
College Investment Plan | 9.28 |
U.S. Bond Enhanced Index | Genworth Financial Trust Company T. Rowe Price Retirement
Plan Services, Inc. | 37.28(a) |
U.S. Large-Cap Core | T. Rowe Price Associates | 19.87 |
102
Fund | Shareholder | % |
U.S. Large-Cap CoreAdvisor Class | National
Financial Services for the Exclusive Benefit of T. Rowe Price Associates | 24.19 |
U.S. Treasury Intermediate | T. Rowe Price Trust Company | 10.24 |
U.S. Treasury Long-Term | Spectrum
Income Fund T. Rowe
Price Trust Company | 20.99 |
U.S. Treasury Money | T. Rowe Price Trust Company | 5.94 |
Value | Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 | 13.68 9.78 18.12 9.03 13.92 |
ValueAdvisor Class | Mac & Company ING Life Insurance & Annuity Company ING National Trust National Financial Services
for the Exclusive Benefit of | 5.31 12.46 19.05 41.67(a) |
Virginia Tax-Free Bond | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of | 7.26 |
(a) At the level of ownership indicated, the shareholder would be able to determine the outcome of most issues that are submitted to shareholders for vote.
(b) T. Rowe Price Retirement Plan Services, Inc., is a wholly owned subsidiary of T. Rowe Price Associates, Inc., which is a wholly owned subsidiary of T. Rowe Price Group, Inc., each a Maryland corporation. T. Rowe Price Retirement Plan Services is not the beneficial owner of these shares. Such shares are held of record by T. Rowe Price Retirement Plan Services and are normally voted by various retirement plans and retirement plan participants.
(c) T. Rowe Price Trust Company is a wholly owned subsidiary of T. Rowe Price Associates, Inc., which is a wholly owned subsidiary of T. Rowe Price Group, Inc., each a Maryland corporation. T. Rowe Price Trust Company is not the beneficial owner of these shares. Such shares are held of record by T. Rowe Price Trust Company and are normally voted by various retirement plans and retirement plan participants.
(d) The indicated percentage of the outstanding shares of this fund are owned by another T. Rowe Price fund and held in the nominee name indicated. Shares of the fund are echo-voted by the T. Rowe Price fund that owns the shares in the same proportion that the shares of the underlying fund are voted by other shareholders.
(e) T. Rowe Price Associates is a wholly owned subsidiary of T. Rowe Price Group, Inc., each a Maryland corporation. Securities owned by T. Rowe Price Associates are the result of contributions to the fund at the funds inception in order to provide the fund with sufficient capital to invest in accordance with its investment program. At the level of ownership indicated, T. Rowe Price Associates would be able to determine the outcome of most issues that were submitted to shareholders for vote.
103
T. Rowe Price is the investment adviser for all of the Price Funds and has executed an Investment Management Agreement with each fund. For certain Price Funds, T. Rowe Price has entered into an investment sub-advisory agreement with T. Rowe Price International, Price Hong Kong, and/or Price Singapore. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore are hereinafter referred to collectively as Investment Managers. T. Rowe Price is a wholly owned subsidiary of T. Rowe Price Group, Inc. T. Rowe Price International is a wholly owned subsidiary of T. Rowe Price. Price Hong Kong and Price Singapore are wholly owned subsidiaries of T. Rowe Price International.
Services
Under the Investment Management Agreements, T. Rowe Price is responsible for supervising and overseeing investments of the funds in accordance with the funds investment objectives, programs, and restrictions as provided in the funds prospectuses and this SAI. In addition, T. Rowe Price provides the funds with certain corporate administrative services, including: maintaining the funds corporate existence and corporate records; registering and qualifying fund shares under federal laws; monitoring the financial, accounting, and administrative functions of the funds; maintaining liaison with the agents employed by the funds such as the funds custodian and transfer agent; assisting the funds in the coordination of such agents activities; and permitting employees of the Investment Managers to serve as officers, directors, and committee members of the funds without cost to the funds. For those Price Funds for which T. Rowe Price has not entered into a sub-advisory agreement, T. Rowe Price is responsible for making discretionary investment decisions on behalf of the funds and is generally responsible for effecting all security transactions, including the negotiation of commissions and the allocation of principal business and portfolio brokerage.
With respect to the Africa & Middle East, Emerging Europe, Emerging Markets Local Currency Bond, Emerging Markets Stock, European Stock, Institutional Africa & Middle East, Institutional Concentrated International Equity, Institutional Emerging Markets Equity, Institutional International Growth Equity, Institutional International Bond, International Bond, International Discovery, International Growth & Income, International Equity Index, International Stock, Japan, Latin America, New Asia, Spectrum International, and Strategic Income Funds, and the Emerging Markets Local Multi-Sector Account Portfolio, T. Rowe Price has entered into a sub-advisory agreement with T. Rowe Price International under which, subject to the supervision of T. Rowe Price, T. Rowe Price International is authorized to trade securities and make discretionary investment decisions on behalf of each fund. Under the sub-advisory agreement, T. Rowe Price International is responsible for effecting all securities transactions on behalf of the funds, including the negotiation of commissions and the allocation of principal business and portfolio brokerage. For the Strategic Income Fund, T. Rowe Price Internationals discretionary investment decisions and trading execution are limited to the funds international investment-grade fixed income investments in developed markets.
With respect to the Japan Fund and the Japanese investments of the International Discovery Fund, T. Rowe Price has entered into a sub-advisory agreement with the Tokyo Branch of T. Rowe Price International (TRPI-Tokyo) under which, subject to the supervision of T. Rowe Price, TRPI-Tokyo is authorized to trade Japanese securities and make discretionary investment decisions on behalf of each funds Japanese investments.
With respect to the International Discovery and New Asia Funds, T. Rowe Price has entered into a sub-advisory agreement with Price Hong Kong (in addition to their sub-advisory agreement with T. Rowe Price International) under which, subject to the supervision of T. Rowe Price and T. Rowe Price International, Price Hong Kong is authorized to trade securities and make certain discretionary investment decisions on behalf of each fund. Under the sub-advisory agreement, Price Hong Kong is responsible for selecting the funds investments in the Asia-Pacific region and effecting security transactions on behalf of the funds, including the negotiation of commissions and the allocation of principal business and portfolio brokerage.
With respect to the Global Infrastructure Fund, T. Rowe Price has entered into a sub-advisory agreement with Price Singapore under which, subject to the supervision of T. Rowe Price, Price Singapore is authorized to
104
make discretionary investment decisions on behalf of the fund and to facilitate the trading of the funds securities. With respect to the Institutional International Growth Equity and International Stock Funds, T. Rowe Price has entered into an additional sub-advisory agreement with Price Singapore that permits Price Singapore personnel to trade Asian securities and make limited discretionary investment decisions on behalf of the funds at times when the portfolio manager is unavailable. Under the sub-advisory agreements, Price Singapore may delegate trading execution to T. Rowe Price, T. Rowe Price International, or Price Hong Kong.
The Investment Management Agreements also provide that T. Rowe Price, and its directors, officers, employees, and certain other persons performing specific functions for the funds, will be liable to the funds only for losses resulting from willful misfeasance, bad faith, gross negligence, or reckless disregard of duty. The sub-advisory agreements have a similar provision limiting the liability of the investment sub-adviser for errors, mistakes, and losses other than those caused by its willful misfeasance, bad faith, or gross negligence.
Under the Investment Management Agreements and sub-advisory agreements, the Investment Managers are permitted to utilize the services or facilities of others to provide them or the funds with statistical and other factual information, advice regarding economic factors and trends, advice as to occasional transactions in specific securities, and such other information, advice, or assistance as the Investment Managers may deem necessary, appropriate, or convenient for the discharge of their obligations under the Investment Management Agreements (and sub-advisory agreement, if applicable) or otherwise helpful to the funds.
Management Fees
All funds except Index, Institutional, TRP Reserve Investment, Retirement, Spectrum, Summit Income, and Summit Municipal Funds
The funds pay T. Rowe Price a fee (Fee) which consists of two components: a Group Management Fee (Group Fee) and an Individual Fund Fee (Fund Fee). The Fee is paid monthly to T. Rowe Price on the first business day of the next succeeding calendar month and is calculated as described next.
The monthly Group Fee (Monthly Group Fee) is the sum of the daily Group Fee accruals (Daily Group Fee Accruals) for each month. The Daily Group Fee Accrual for any particular day is computed by multiplying the Price Funds group fee accrual as determined below (Daily Price Funds Group Fee Accrual) by the ratio of the Price Funds net assets for that day to the sum of the aggregate net assets of the Price Funds for that day. The Daily Price Funds Group Fee Accrual for any particular day is calculated by multiplying the fraction of one (1) over the number of calendar days in the year by the annualized Daily Price Funds Group Fee Accrual for that day as determined in accordance with the following schedule:
0.480% | First $1 billion | 0.350% | Next $2 billion | 0.300% | Next $40 billion |
0.450% | Next $1 billion | 0.340% | Next $5 billion | 0.295% | Next $40 billion |
0.420% | Next $1 billion | 0.330% | Next $10 billion | 0.290% | Next $60 billion |
0.390% | Next $1 billion | 0.320% | Next $10 billion | 0.285% | Next $80 billion |
0.370% | Next $1 billion | 0.310% | Next $16 billion | 0.280% | Thereafter |
0.360% | Next $2 billion | 0.305% | Next $30 billion |
For the purpose of calculating the Group Fee, the Price Funds include all the mutual funds distributed by Investment Services (excluding the Retirement Funds, Spectrum Funds, TRP Reserve Investment Funds, and any Index or private label mutual funds). For the purpose of calculating the Daily Price Funds Group Fee Accrual for any particular day, the net assets of each Price Fund are determined in accordance with each funds prospectus as of the close of business on the previous business day on which the fund was open for business.
The monthly Fund Fee (Monthly Fund Fee) is the sum of the daily Fund Fee accruals (Daily Fund Fee Accruals) for each month. The Daily Fund Fee Accrual for any particular day is computed by multiplying the fraction of one (1) over the number of calendar days in the year by the individual fund fee. The product of this calculation is multiplied by the net assets of the fund for that day, as determined in accordance with the
105
funds prospectus as of the close of business on the previous business day on which the fund was open for business. The individual fund fees are listed in the following tables:
Fund | Fee % | |
Africa & Middle East | 0.75 | |
Balanced | 0.15 | |
Blue Chip Growth | 0.30 | (a) |
California Tax-Free Bond | 0.10 | |
California Tax-Free Money | 0.10 | |
Capital Appreciation | 0.30 | |
Capital Opportunity | 0.20 | |
Corporate Income | 0.15 | |
Diversified Mid-Cap Growth | 0.35 | |
Diversified Small-Cap Growth | 0.35 | |
Dividend Growth | 0.20 | |
Emerging Europe | 0.75 | |
Emerging Markets Bond | 0.45 | |
Emerging Markets Corporate Bond | 0.50 | |
Emerging Markets Local Currency Bond | 0.45 | |
Emerging Markets Stock | 0.75 | |
Equity Income | 0.25 | (b) |
European Stock | 0.50 | |
Financial Services | 0.35 | |
Floating Rate | 0.30 | |
GNMA | 0.15 | |
Georgia Tax-Free Bond | 0.10 | |
Global Infrastructure | 0.50 | |
Global Large-Cap Stock | 0.35 | |
Global Real Estate | 0.40 | |
Global Stock | 0.35 | |
Global Technology | 0.45 | |
Growth & Income | 0.25 | |
Growth Stock | 0.25 | (b) |
Health Sciences | 0.35 | |
High Yield | 0.30 | |
Inflation Protected Bond | 0.05 | |
International Bond | 0.35 | |
International Discovery | 0.75 | |
International Growth & Income | 0.35 | |
International Stock | 0.35 | |
Japan | 0.50 | |
Latin America | 0.75 | |
Maryland Short-Term Tax-Free Bond | 0.10 | |
Maryland Tax-Free Bond | 0.10 | |
Maryland Tax-Free Money | 0.10 | |
Media & Telecommunications | 0.35 |
106
Fund | Fee % | |
Mid-Cap Growth | 0.35 | (c) |
Mid-Cap Value | 0.35 | |
New America Growth | 0.35 | |
New Asia | 0.50 | |
New Era | 0.25 | |
New Horizons | 0.35 | |
New Income | 0.15 | |
New Jersey Tax-Free Bond | 0.10 | |
New York Tax-Free Bond | 0.10 | |
New York Tax-Free Money | 0.10 | |
Overseas Stock | 0.35 | |
Personal Strategy Balanced | 0.25 | |
Personal Strategy Growth | 0.30 | |
Personal Strategy Income | 0.15 | |
Prime Reserve | 0.05 | |
Real Assets | 0.35 | |
Real Estate | 0.30 | |
Science & Technology | 0.35 | |
Short-Term Bond | 0.10 | |
Small-Cap Stock | 0.45 | |
Small-Cap Value | 0.35 | |
Strategic Income | 0.20 | |
Tax-Efficient Equity | 0.35 | |
Tax-Exempt Money | 0.10 | |
Tax-Free High Yield | 0.30 | |
Tax-Free Income | 0.15 | |
Tax-Free Short-Intermediate | 0.10 | |
U.S. Large-Cap Core | 0.25 | |
U.S. Treasury Intermediate | 0.00 | |
U.S. Treasury Long-Term | 0.00 | |
U.S. Treasury Money | 0.00 | |
Value | 0.35 | |
Virginia Tax-Free Bond | 0.10 |
(a) On assets up to $15 billion and 0.255% on assets above $15 billion.
(b) On assets up to $15 billion and 0.2125% on assets above $15 billion.
(c) On assets up to $15 billion and 0.2975% on assets above $15 billion.
Index, Institutional, Summit Income, and Summit Municipal Funds
The following funds pay T. Rowe Price an annual investment management fee in monthly installments of the amount listed below based on the average daily net asset value of the fund.
Fund | Fee % |
Equity Index 500 | 0.10 |
Institutional Africa & Middle East | 1.00 |
Institutional Concentrated International Equity | 0.65 |
107
Fund | Fee % |
Institutional Global Equity | 0.65 |
Institutional Global Large-Cap Equity | 0.65 |
Institutional International Core Equity | 0.65 |
Institutional International Growth Equity | 0.70 |
Institutional Large-Cap Core Growth | 0.55 |
Institutional Large-Cap Growth | 0.55 |
Institutional Large-Cap Value | 0.55 |
Institutional Mid-Cap Equity Growth | 0.60 |
Institutional Small-Cap Stock | 0.65 |
Institutional U.S. Structured Research | 0.50 |
The following funds (Single Fee Funds) pay T. Rowe Price a single annual investment management fee in monthly installments of the amount listed below based on the average daily net asset value of the fund.
Fund | Fee % |
Extended Equity Market Index | 0.40 |
Inflation Focused Bond | 0.50 |
Institutional Core Plus | 0.40 |
Institutional Emerging Markets Bond | 0.70 |
Institutional Emerging Markets Equity | 1.10 |
Institutional Floating Rate | 0.55 |
Institutional High Yield | 0.50 |
Institutional International Bond | 0.55 |
International Equity Index | 0.50 |
Summit Cash Reserves | 0.45 |
Summit GNMA | 0.60 |
Summit Municipal Income | 0.50 |
Summit Municipal Intermediate | 0.50 |
Summit Municipal Money Market | 0.45 |
Total Equity Market Index | 0.40 |
U.S. Bond Enhanced Index | 0.30 |
The Investment Management Agreement between each Single Fee Fund and T. Rowe Price provides that T. Rowe Price will pay all expenses of each funds operations, except interest, taxes, brokerage commissions, and other charges incident to the purchase, sale, or lending of the funds portfolio securities, and such non-recurring or extraordinary expenses that may arise, including the costs of actions, suits, or proceedings to which the fund is a party and the expenses the fund may incur as a result of its obligation to provide indemnification to its officers, directors, and agents. However, the Boards for the funds reserve the right to impose additional fees against shareholder accounts to defray expenses which would otherwise be paid by T. Rowe Price under the Investment Management Agreement. The Boards do not anticipate levying such charges; such a fee, if charged, may be retained by the funds or paid to the Investment Managers.
The Fee is paid monthly to T. Rowe Price on the first business day of the next succeeding calendar month and is the sum of the Daily Fee accruals for each month. The Daily Fee accrual for any particular day is calculated by multiplying the fraction of one (1) over the number of calendar days in the year by the appropriate Fee. The product of this calculation is multiplied by the net assets of the fund for that day, as determined in accordance with each funds prospectus as of the close of business on the previous business day on which the fund was open for business.
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Emerging Markets Bond Multi-Sector Account Portfolio, Emerging Markets Local Multi-Sector Account Portfolio, Floating Rate Multi-Sector Account Portfolio, High Yield Multi-Sector Account Portfolio, Investment-Grade Corporate Multi-Sector Account Portfolio, Mortgage-Backed Securities Multi-Sector Account Portfolio, TRP Government Reserve Investment Fund, TRP Reserve Investment Fund, Retirement Funds, and Spectrum Funds
None of these funds pays T. Rowe Price an investment management fee.
Investment Sub-advisory Agreements
Pursuant to each of the sub-advisory agreements that T. Rowe Price has entered into on behalf of a Price Fund (other than the Emerging Markets Local Multi-Sector Account Portfolio), T. Rowe Price may pay the investment subadviser up to 60% of the management fee that T. Rowe Price receives from that fund.
Management Fee Compensation
The following table sets forth the total management fees, if any, paid to the Investment Managers by each fund, during the fiscal years indicated:
Fund | Fiscal Year Ended | ||
2/28/11 | 2/28/10 | 2/28/09 | |
California Tax-Free Bond | $1,393,000 | $1,297,000 | $1,288,000 |
California Tax-Free Money | 368,000 | 460,000 | 545,000 |
Floating Rate Multi-Sector Account Portfolio | (a) | (a) | (a) |
Georgia Tax-Free Bond | 724,000 | 615,000 | 536,000 |
High Yield Multi-Sector Account Portfolio | (a) | (a) | (a) |
Investment-Grade Corporate Multi-Sector Account Portfolio | (a) | (a) | (a) |
Maryland Short-Term Tax-Free Bond | 1,046,000 | 965,000 | 679,000 |
Maryland Tax-Free Bond | 7,284,000 | 6,542,000 | 5,877,000 |
Maryland Tax-Free Money | 623,000 | 794,000 | 959,000 |
Mortgage-Backed Securities Multi-Sector Account Portfolio | (a) | (a) | (a) |
New Jersey Tax-Free Bond | 1,013,000 | 938,000 | 894,000 |
New York Tax-Free Bond | 1,414,000 | 1,276,000 | 1,171,000 |
New York Tax-Free Money | 400,000 | 531,000 | 616,000 |
Tax-Efficient Equity | 501,000 | 324,000 | 225,000 |
Tax-Exempt Money | 3,615,000 | 3,876,000 | 4,208,000 |
Tax-Free High Yield | 11,053,000 | 9,343,000 | 8,193,000 |
Tax-Free Income(b) | 12,560,000 | 9,444,000 | 8,174,000 |
Tax-Free Short-Intermediate | 5,456,000 | 3,645,000 | 2,308,000 |
Virginia Tax-Free Bond | 3,251,000 | 2,827,000 | 2,389,000 |
(a) Prior to commencement of operations.
(b) The fund has two classes of shares. The management fee is allocated to each class based on relative net assets.
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Fund | Fiscal Year Ended | ||
5/31/11 | 5/31/10 | 5/31/09 | |
Corporate Income | $3,343,000 | $2,503,000 | $1,351,000 |
Floating Rate(a) | (b) | (b) | (b) |
GNMA | 6,963,000 | 6,719,000 | 6,290,000 |
TRP Government Reserve Investment | (c) | (c) | (c) |
High Yield(a) | 48,512,000 | 40,525,000 | 29,591,000 |
Inflation Focused Bond(d) | 11,680,000 | 8,580,000 | 6,418,000 |
Inflation Protected Bond | 1,251,000 | 1,049,000 | 857,000 |
Institutional Core Plus(a)(d) | 474,000 | 475,000 | 416,000 |
Institutional Floating Rate(a)(d) | 6,113,000 | 4,278,000 | 3,501,000 |
Institutional High Yield(d) | 6,629,000 | 5,963,000 | 3,091,000 |
New Income(e) | 58,504,000 | 43,027,000 | 33,374,000 |
Personal Strategy Balanced | 8,607,000 | 7,584,000 | 6,609,000 |
Personal Strategy Growth | 6,582,000 | 6,088,000 | 5,482,000 |
Personal Strategy Income | 4,141,000 | 3,626,000 | 3,125,000 |
Prime Reserve | 19,458,000 | 21,106,000 | 23,484,000 |
TRP Reserve Investment | (c) | (c) | (c) |
Retirement 2005 | (c) | (c) | (c) |
Retirement 2010 | (c) | (c) | (c) |
Retirement 2015 | (c) | (c) | (c) |
Retirement 2020 | (c) | (c) | (c) |
Retirement 2025 | (c) | (c) | (c) |
Retirement 2030 | (c) | (c) | (c) |
Retirement 2035 | (c) | (c) | (c) |
Retirement 2040 | (c) | (c) | (c) |
Retirement 2045 | (c) | (c) | (c) |
Retirement 2050 | (c) | (c) | (c) |
Retirement 2055 | (c) | (c) | (c) |
Retirement Income | (c) | (c) | (c) |
Short-Term Bond(a) | 22,685,000 | 15,543,000 | 8,029,000 |
Strategic Income(a) | 972,000 | 609,000 | 113,000 |
U.S. Treasury Intermediate | 1,439,000 | 1,586,000 | 655,000 |
U.S. Treasury Long-Term | 908,000 | 827,000 | 593,000 |
U.S. Treasury Money | 5,535,000 | 5,796,000 | 5,876,000 |
(a) The fund has two classes of shares. The management fee is allocated to each class based on relative net assets.
(b) Prior to commencement of operations.
(c) The fund does not pay an investment management fee.
(d) The fee includes investment and administrative expenses.
(e) The fund has three classes of shares. The management fee is allocated to each class based on relative net assets.
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Fund | Fiscal Year Ended | ||
10/31/11 | 10/31/10 | 10/31/09 | |
Africa & Middle East | $2,071,000 | $2,221,000 | $2,071,000 |
Emerging Europe | 7,489,000 | 7,448,000 | 4,338,000 |
Emerging Markets Stock | 57,609,000 | 48,683,000 | 32,265,000 |
European Stock | 6,183,000 | 5,431,000 | 4,687,000 |
Global Infrastructure(a) | 337,000 | 140,000 | (b) |
Global Large-Cap Stock(a) | 350,000 | 249,000 | 121,000 |
Global Stock(a) | 4,735,000 | 4,866,000 | 4,090,000 |
Institutional Africa & Middle East | 1,199,000 | 827,000 | 524,000 |
Institutional Concentrated International Equity | 50,000 | 12,000 | (b) |
Institutional Emerging Markets Equity(c) | 8,833,000 | 5,432,000 | 3,172,000 |
Institutional Global Equity | 1,147,000 | 1,226,000 | 882,000 |
Institutional Global Large-Cap Equity | 369,000 | 223,000 | 50,000 |
Institutional International Core Equity | 322,000 | 0 | (b) |
Institutional International Growth Equity | 507,000 | 434,000 | 345,000 |
International Discovery | 28,272,000 | 23,915,000 | 16,235,000 |
International Equity Index(c) | 1,938,000 | 2,049,000 | 1,697,000 |
International Growth & Income(d) | 25,124,000 | 20,526,000 | 14,634,000 |
International Stock(d) | 43,889,000 | 38,050,000 | 28,577,000 |
Japan | 1,625,000 | 1,626,000 | 1,773,000 |
Latin America | 28,930,000 | 29,710,000 | 18,537,000 |
New Asia | 36,839,000 | 34,468,000 | 19,857,000 |
Overseas Stock | 20,081,000 | 14,361,000 | 9,892,000 |
Summit Cash Reserves(c) | 25,798,000 | 25,005,000 | 28,319,000 |
Summit GNMA(c) | 1,055,000 | 1,060,000 | 804,000 |
Summit Municipal Income(c) | 2,622,000 | 2,394,000 | 1,765,000 |
Summit Municipal Intermediate(c) | 8,795,000 | 7,054,000 | 4,429,000 |
Summit Municipal Money Market(c) | 948,000 | 1,119,000 | 1,371,000 |
U.S. Bond Enhanced Index | 2,446,000 | 1,616,000 | 1,097,000 |
(a) The fund has two classes of shares. The management fee is allocated to each class based on relative net assets.
(b) Prior to commencement of operations.
(c) The fee includes investment management fees and administrative expenses.
(d) The fund has three classes of shares. The management fee is allocated to each class based on relative net assets.
Fund | Fiscal Year Ended | ||
12/31/10 | 12/31/09 | 12/31/08 | |
Balanced | $12,708,000 | $10,384,000 | $12,449,000 |
Blue Chip Growth(a) | 63,531,000 | 53,303,000 | 64,712,000 |
Capital Appreciation(b) | 59,332,000 | 47,301,000 | 55,950,000 |
Capital Opportunity(a) | 1,219,000 | 1,015,000 | 1,128,000 |
Diversified Mid-Cap Growth | 726,000 | 536,000 | 662,000 |
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Fund | Fiscal Year Ended | ||
12/31/10 | 12/31/09 | 12/31/08 | |
Diversified Small-Cap Growth | 608,000 | 422,000 | 498,000 |
Dividend Growth | 6,125,000 | 4,034,000 | 3,931,000 |
Emerging Markets Bond | 17,780,000 | 8,069,000 | 5,093,000 |
Emerging Markets Corporate Bond(b) | (e) | (e) | (e) |
Emerging Markets Bond Multi-Sector Account Portfolio | (e) | (e) | (e) |
Emerging Markets Local Currency Bond(b) | (e) | (e) | (e) |
Emerging Markets Local Multi-Sector Account Portfolio | (e) | (e) | (e) |
Equity Income(a) | 99,044,000 | 81,940,000 | 105,615,000 |
Equity Index 500 | 14,104,000 | 13,656,000 | 14,160,000 |
Extended Equity Market Index(c) | 1,364,000 | 1,052,000 | 1,342,000 |
Financial Services | 2,290,000 | 1,954,000 | 2,164,000 |
Global Real Estate(b) | 172,000 | 82,000 | 9,000 |
Global Technology | 2,274,000 | 1,186,000 | 1,101,000 |
Growth & Income | 5,773,000 | 5,001,000 | 6,536,000 |
Growth Stock(a) | 117,595,000 | 94,838,000 | 118,143,000 |
Health Sciences | 14,942,000 | 12,095,000 | 13,735,000 |
Institutional Emerging Markets Bond(c) | 1,304,000 | 614,000 | 179,000 |
Institutional International Bond(c) | 1,138,000 | 455,000 | 341,000 |
Institutional Large-Cap Core Growth | 901,000 | 575,000 | 599,000 |
Institutional Large-Cap Growth | 10,932,000 | 6,888,000 | 7,437,000 |
Institutional Large-Cap Value | 2,432,000 | 1,674,000 | 1,684,000 |
Institutional Mid-Cap Equity Growth | 3,548,000 | 2,368,000 | 2,697,000 |
Institutional Small-Cap Stock | 2,285,000 | 1,644,000 | 2,400,000 |
Institutional U.S. Structured Research | 1,860,000 | 644,000 | 615,000 |
International Bond | 28,277,000 | 19,301,000 | 19,258,000 |
Media & Telecommunications | 10,578,000 | 7,603,000 | 9,646,000 |
Mid-Cap Growth(a) | 111,365,000 | 79,530,000 | 92,941,000 |
Mid-Cap Value(a) | 54,182,000 | 37,085,000 | 41,155,000 |
New America Growth | 6,519,000 | 4,493,000 | 4,806,000 |
New Era | 27,355,000 | 22,381,000 | 34,039,000 |
New Horizons | 41,117,000 | 30,750,000 | 38,581,000 |
Real Assets | 2,069,000 | (e) | (e) |
Real Estate(b) | 15,086,000 | 10,445,000 | 12,540,000 |
Science & Technology(b) | 17,947,000 | 14,663,000 | 16,219,000 |
Small-Cap Stock(b) | 42,729,000 | 31,647,000 | 39,706,000 |
Small-Cap Value(b) | 39,801,000 | 29,616,000 | 32,423,000 |
Spectrum Growth | (d) | (d) | (d) |
Spectrum Income | (d) | (d) | (d) |
Spectrum International | (d) | (d) | (d) |
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Fund | Fiscal Year Ended | ||
12/31/10 | 12/31/09 | 12/31/08 | |
Total Equity Market Index(c) | 1,887,000 | 38,000 | (e) |
U.S. Large-Cap Core(b) | 104,000 | 1,555,000 | 1,825,000 |
Value(b) | 65,819,000 | 48,229,000 | 47,909,000 |
(a) The fund has three classes of shares. The management fee is allocated to each class based on relative net assets.
(b) The fund has two classes of shares. The management fee is allocated to each class based on relative net assets.
(c) The fee includes investment management fees and administrative expenses.
(d) The fund does not pay an investment management fee.
(e) Prior to commencement of operations.
Expense Limitations and Reimbursements
The following chart sets forth contractual expense ratio limitations and the periods for which they are effective. For each fund, the Investment Managers have agreed to bear any fund expenses (other than interest, taxes, brokerage, and other expenditures that are capitalized in accordance with generally accepted accounting principles, extraordinary expenses, and acquired fund fees) which would cause the funds ratio of expenses to average net assets to exceed the indicated percentage limitation. The expenses borne by the Investment Managers are subject to reimbursement by the funds through the indicated reimbursement date, provided no reimbursement will be made if it would result in the funds expense ratios exceeding their applicable limitations.
Fund | Limitation Period | Expense Ratio Limitation % | Reimbursement Date |
California Tax-Free Money(b) | July 1, 2011 June 30, 2013 | 0.55 | (a) |
Capital Opportunity FundAdvisor Class(c) | May 1, 2010 April 30, 2012 | 1.10 | April 30, 2014(d) |
Capital Opportunity FundR Class(e) | May 1, 2010 April 30, 2012 | 1.35 | April 30, 2014(d) |
Diversified Small-Cap Growth(f) | May 1, 2010 April 30, 2012 | 1.25 | April 30, 2014(d) |
Dividend Growth FundAdvisor Class | May 1, 2008 April 30, 2010 | 1.05 | April 30, 2012(d) |
Emerging Markets Corporate Bond | May 24, 2012 April 30, 2015 | 1.15 | (a) |
Emerging Markets Corporate Bond FundAdvisor Class | May 24, 2012 April 30, 2015 | 1.25 | (a) |
Emerging Markets Local Currency Bond | May 26, 2011 April 30, 2014 | 1.10 | (a) |
Emerging Markets Local Currency Bond FundAdvisor Class | May 26, 2011 April 30, 2014 | 1.20 | (a) |
Equity Index 500(g) | May 1, 2010 April 30, 2012 | 0.30 | April 30, 2014(d) |
Floating Rate | July 29, 2011 September 30, 2013 | 0.85 | (a) |
Floating Rate FundAdvisor Class | July 29, 2011 September 30, 2013 | 0.95 | (a) |
Global Infrastructure(h) | March 1, 2012 February 28, 2014 | 1.10 | (a) |
Global Infrastructure FundAdvisor Class(i) | March 1, 2012 February 28, 2014 | 1.20 | (a) |
Global Large-Cap Stock(j) | March 1, 2011 February 28, 2013 | 1.00 | (a) |
Global Large-Cap Stock FundAdvisor Class(k) | March 1, 2011 February 28, 2013 | 1.10 | (a) |
Global Real Estate(l) | May 1, 2011 April 30, 2013 | 1.05 | (a) |
Global Real Estate FundAdvisor Class(m) | May 1, 2011 April 30, 2013 | 1.15 | (a) |
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Fund | Limitation Period | Expense Ratio Limitation % | Reimbursement Date |
Global Stock FundAdvisor Class(n) | March 1, 2012 February 28, 2014 | 1.15 | February 28, 2016(d) |
Inflation Protected Bond(o) | October 1, 2010 September 30, 2012 | 0.50 | September 30, 2014(d) |
Institutional Africa & Middle East(p) | March 1, 2011 February 28, 2013 | 1.25 | (a) |
Institutional Concentrated International Equity | July 27, 2010 February 28, 2013 | 0.75 | (a) |
Institutional Global Equity(q) | March 1, 2011 February 28, 2013 | 0.75 | (a) |
Institutional International Core Equity | October 27, 2010 February 28, 2013 | 0.75 | (a) |
Institutional Global Large-Cap Equity(r) | March 1, 2011 February 28, 2013 | 0.75 | (a) |
Institutional International Growth Equity(s) | March 1, 2012 - February 28, 2014 | 0.75 | (a) |
Institutional Large-Cap Core Growth(t) | May 1, 2011 April 30, 2013 | 0.65 | April 30, 2015(d) |
Institutional U.S. Structured Research(u) | May 1, 2010 April 30, 2012 | 0.55 | (a) |
International Stock FundR Class(v) | March 1, 2012 February 28, 2014 | 1.40 | (a) |
New America Growth FundAdvisor Class(w) | May 1, 2010 April 30, 2012 | 1.10 | (a) |
New Income FundAdvisor Class | October 1, 2008 September 30, 2010 | 0.90 | (a) |
New Income FundR Class(x) | October 1, 2010 September 30, 2012 | 1.15 | (a) |
New York Tax-Free Money(y) | July 1, 2011 June 30, 2013 | 0.55 | (a) |
Real Assets | July 28, 2010 April 30, 2013 | 1.10 | (a) |
Short-Term Bond | October 1, 2009 September 30, 2011 | 0.55 | (a) |
Short-Term Bond FundAdvisor Class | October 1, 2009 September 30, 2011 | 0.85 | (a) |
Strategic Income Fund(z) | October 1, 2011 September 30, 2013 | 0.80 | (a) |
Strategic Income FundAdvisor Class(aa) | October 1, 2011 September 30, 2013 | 0.95 | (a) |
Tax-Efficient Equity(bb) | July 1, 2010 June 30, 2012 | 1.25 | June 30, 2014(d) |
U.S. Large-Cap Core Fund | June 26, 2009 April 30, 2012 | 1.15 | (a) |
U.S. Large-Cap Core FundAdvisor Class | June 26, 2009 April 30, 2012 | 1.20 | (a) |
U.S. Treasury Intermediate Fund | November 1, 2009 September 30, 2012 | 0.55 | (a) |
U.S. Treasury Long-Term Fund | November 1, 2009 September 30, 2012 | 0.55 | (a) |
(a) No reimbursement will be made more than three years after any waiver or payment.
(b) The California Tax-Free Money Fund previously operated under a 0.55% expense limitation that expired June 30, 2011.
(c) The Capital Opportunity FundAdvisor Class previously operated under a l.10% expense limitation that expired April 30, 2010. The reimbursement period for this limitation extends through April 30, 2012.
(d) No reimbursement will be made after the reimbursement date or three years after any waiver or payment, whichever is sooner.
(e) The Capital Opportunity FundR Class previously operated under a 1.35% expense limitation that expired April 30, 2010. The reimbursement period for this limitation extends through April 30, 2012.
(f) The Diversified Small-Cap Growth Fund previously operated under a 1.25% expense limitation that expired April 30, 2010. The reimbursement period for this limitation extends through April 30, 2012.
(g) The Equity Index 500 Fund previously operated under a 0.35% expense limitation that expired April 30, 2010. The reimbursement period for this limitation extends through April 30, 2012.
(h) The Global Infrastructure Fund previously operated under a 1.10% expense limitation that expired February 29, 2012.
(i) The Global Infrastructure FundAdvisor Class previously operated under a 1.20% expense limitation that expired February 29, 2012.
114
(j) The Global Large-Cap Stock Fund previously operated under a 1.00% expense limitation that expired February 28, 2011.
(k) The Global Large-Cap Stock FundAdvisor Class previously operated under a 1.10% expense limitation that expired February 28, 2011.
(l) The Global Real Estate Fund previously operated under a 1.05% expense limitation.
(m) The Global Real Estate FundAdvisor Class previously operated under a 1.15% expense limitation.
(n) The Global Stock FundAdvisor Class previously operated under a 1.15% expense limitation that expired February 29, 2011. The reimbursement period for this limitation extends through February 28, 2014.
(o) The Inflation Protected Bond Fund previously operated under a 0.50% expense limitation that expired September 30, 2010. The reimbursement period for this limitation extends through September 30, 2012.
(p) The Institutional Africa & Middle East Fund previously operated under a 1.25% expense limitation that expired February 28, 2011.
(q) The Institutional Global Equity Fund previously operated under a 0.75% expense limitation that expired February 28, 2009.
(r) The Institutional Global Large-Cap Equity Fund previously operated under a 0.75% expense limitation that expired February 28, 2011.
(s) The Institutional International Growth Equity Fund previously operated under a 0.75% expense limitation that expired February 29, 2012.
(t) The Institutional Large-Cap Core Growth Fund previously operated under a 0.65% expense limitation that expired April 30, 2011. The reimbursement period for this limitation extends through April 30, 2013.
(u) The Institutional U.S. Structured Research Fund previously operated under a 0.55% expense limitation that expired on April 30, 2010.
(v) The International Stock FundR Class previously operated under a 1.40% expense limitation that expired February 29, 2012.
(w) The New America Growth FundAdvisor Class previously operated under a l.10% expense limitation that expired April 30, 2010.
(x) The New Income FundR Class previously operated under a 1.15% expense limitation that expired September 30, 2010.
(y) The New York Tax-Free Money Fund previously operated under a 0.55% expense limitation that expired June 30, 2011.
(z) The Strategic Income Fund previously operated under a 0.80% expense limitation that expired September 30, 2011.
(aa) The Strategic Income FundAdvisor Class previously operated under a 0.95% expense limitation that expired September 30, 2011.
(bb) The Tax-Efficient Equity Fund previously operated under a 1.25% expense limitation that expired June 30, 2010. The reimbursement period for this limitation extends through June 30, 2012.
The Investment Management Agreements between the funds and the Investment Managers provide that each fund will bear all expenses of its operations not specifically assumed by the Investment Managers.
For the purpose of determining whether a fund is entitled to expense limitation, the expenses of a fund are calculated on a monthly basis. If a fund is entitled to expense limitation, that months advisory fee will be reduced or postponed, with any adjustment made after the end of the year.
Except for the California and New York Funds, each of the above-referenced funds Investment Management Agreement also provides that one or more additional expense limitation periods (of the same or different time periods) may be implemented after the expiration of the current expense limitation, and that with respect to any such additional limitation period, the funds may reimburse the Investment Managers, provided the reimbursement does not result in the funds aggregate expenses exceeding the additional expense limitation. No reimbursement may be made by the California and New York Funds unless approved by shareholders.
California Tax-Free Money Fund At February 28, 2011, management fees in the amount of $98,000 were waived. Including these amounts, management fees waived in the amount of $245,000 remain subject to repayment. The fund operated below its expense limitation.
115
Capital Opportunity Fund, Capital Opportunity FundAdvisor and R Classes At December 31, 2010, expenses in the amount of $2,000 were repaid to the manager. Including these amounts, expenses previously reimbursed by the manager in the amount of $9,000 remain subject to repayment.
Diversified Small-Cap Growth Fund At December 31, 2010, management fees in the amount of $70,000 were waived. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $107,000 remain subject to repayment.
Equity Index 500 Fund At December 31, 2010, management fees in the amount of $742,000 were waived. Including these amounts, management fees waived in the amount of $4,584,000 remain subject to repayment.
Global Large-Cap Stock Fund and Global Large-Cap Stock FundAdvisor Class At October 31, 2011, management fees in the amount of $120,000 were waived and expenses in the amount of $96,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $708,000 remain subject to repayment.
Global Real Estate Fund and Global Real Estate FundAdvisor Class At December 31, 2010, management fees in the amount of $166,000 were waived and expenses in the amount of $152,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $756,000 remain subject to repayment.
Global Stock FundAdvisor Class At October 31, 2011, expenses in the amount of $2,000 were repaid to the manager. Including these amounts, expenses previously reimbursed by the manager in the amount of $12,000 remain subject to repayment.
Inflation Protected Bond Fund At May 31, 2011, management fees in the amount of $305,000 were waived and expenses previously reimbursed by the manager in the amount of $977,000 remain subject to repayment.
Institutional Africa & Middle East Fund At October 31, 2011, management fees in the amount of $52,000 were waived. Including these amounts, management fees waived in the amount of $397,000 remain subject to repayment.
Institutional Concentrated International Equity Fund At October 31, 2011, management fees in the amount of $50,000 were waived and expenses in the amount of $193,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $283,000 remain subject to repayment.
Institutional Global Equity Fund At October 31, 2011, management fees in the amount of $140,000 were waived. Including these amounts, management fees waived in the amount of $464,000 remain subject to repayment.
Institutional Global Large-Cap Equity Fund At October 31, 2011, management fees in the amount of $223,000 were waived. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $688,000 remain subject to repayment.
Institutional International Core Equity Fund At October 31, 2011, management fees in the amount of $170,000 were waived and expenses in the amount of $39,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $211,000 remain subject to repayment.
Institutional International Growth Equity Fund At October 31, 2011, management fees in the amount of $262,000 were waived. Including these amounts, management fees waived in the amount of $516,000 remain subject to repayment.
Institutional Large-Cap Core Growth Fund At December 31, 2010, management fees in the amount of $86,000 were waived. Including these amounts, management fees waived and expenses previously reimbursed in the amount of $375,000 remain subject to repayment.
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Institutional U.S. Structured Research Fund At December 31, 2010, management fees in the amount of $106,000 were waived. Including these amounts, management fees waived in the amount of $541,000 remain subject to repayment.
International Stock Fund R Class At October 31, 2011, expenses in the amount of $2,000 were repaid to the manager. Including these amounts, expenses previously reimbursed by the manager in the amount of $7,000 remain subject to repayment.
New America Growth FundAdvisor Class At December 31, 2010, expenses in the amount of $4,000 were repaid to the manager. There are no amounts subject to repayment. The Advisor Class operated below its expense limit.
New Income FundAdvisor and R Classes At May 31, 2011, expenses in the amount of $3,000 were repaid to the manager. Including these amounts, expenses previously reimbursed by the manager in the amount of $6,000 remain subject to repayment.
New York Tax-Free Money Fund At February 28, 2011, management fees in the amount of $87,000 were waived. Including these amounts, management fees waived in the amount of $196,000 remain subject to repayment.
Short-Term Bond Fund and Short-Term Bond FundAdvisor Class At May 31, 2011, management fees in the amount of $1,165,000 were repaid to the manager. There were no amounts subject to repayment. For the year ended May 31, 2011, each class operated below its expense limitation.
Strategic Income Fund and Strategic Income FundAdvisor Class At May 31, 2011, management fees in the amount of $7,000 were repaid and expenses in the amount of $16,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $289,000 remain subject to repayment.
Tax-Efficient Equity Fund At February 28, 2011, expenses in the amount of $101,000 were repaid to the manager. There are no amounts subject to repayment. The fund operated below its expense limit.
U.S. Large-Cap Core and U.S. Large-Cap Core GrowthAdvisor Class At December 31, 2010, management fees in the amount of $87,000 were waived and expenses in the amount of $116,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $326,000 remain subject to repayment.
U.S. Treasury Long-Term At May 31, 2011, management fees in the amount of $46,000 were waived. Including these amounts, management fees waived in the amount of $112,000 remain subject to repayment.
Management Related Services
In addition to the management fee, the funds (other than the Single-Fee Funds) pay for the following: shareholder service expenses; custodial, accounting, legal, and audit fees; costs of preparing and printing prospectuses and reports sent to shareholders; registration fees and expenses; proxy and annual meeting expenses (if any); and directors fees and expenses.
T. Rowe Price Services, Inc. (Services), a wholly owned subsidiary of T. Rowe Price, acts as the funds transfer and dividend disbursing agent and provides shareholder and administrative services. T. Rowe Price Retirement Plan Services, Inc. (RPS), also a wholly owned subsidiary, provides recordkeeping, sub-transfer agency, and administrative services for certain types of retirement plans investing in the funds. The fees paid by the funds to Services are based on the costs to Services of providing these services plus a return on capital employed in support of the services.
The fees paid to RPS are based on the percentage of Price Fund assets for which RPS provides recordkeeping and sub-transfer agency services. The fees paid to Services and RPS are set forth in each funds shareholder report under Related Party Transactions. The address for Services and RPS is 100 East Pratt Street, Baltimore, Maryland 21202.
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T. Rowe Price, under a separate agreement with the funds, provides accounting services to the funds. The funds paid the expenses shown in the following table during the fiscal years indicated to T. Rowe Price for accounting services.
Fund | Fiscal Year Ended | ||
2/28/11 | 2/28/10 | 2/28/09 | |
California Tax-Free Bond | $84,000 | $65,000 | $103,000 |
California Tax-Free Money | 84,000 | 65,000 | 103,000 |
Floating Rate Multi-Sector Account Portfolio | (a) | (a) | (a) |
Georgia Tax-Free Bond | 84,000 | 65,000 | 103,000 |
High Yield Multi-Sector Account Portfolio | (a) | (a) | (a) |
Investment-Grade Corporate Multi-Sector Account Portfolio | (a) | (a) | (a) |
Maryland Short-Term Tax-Free Bond | 84,000 | 65,000 | 103,000 |
Maryland Tax-Free Bond | 113,000 | 93,000 | 135,000 |
Maryland Tax-Free Money | 84,000 | 65,000 | 103,000 |
Mortgage-Backed Securities Multi-Sector Account Portfolio | (a) | (a) | (a) |
New Jersey Tax-Free Bond | 84,000 | 65,000 | 103,000 |
New York Tax-Free Bond | 84,000 | 65,000 | 103,000 |
New York Tax-Free Money | 84,000 | 65,000 | 103,000 |
Tax-Efficient Equity | 84,000 | 65,000 | 103,000 |
Tax-Exempt Money | 113,000 | 93,000 | 135,000 |
Tax-Free High Yield | 148,000 | 124,000 | 169,000 |
Tax-Free Income | 81,000 | 103,000 | 152,000 |
Tax-Free Income FundAdvisor Class | 46,000 | 29,000 | 32,000 |
Tax-Free Short-Intermediate | 84,000 | 65,000 | 103,000 |
Virginia Tax-Free Bond | 84,000 | 65,000 | 103,000 |
(a) Prior to commencement of operations.
Fund | Fiscal Year Ended | ||
5/31/11 | 5/31/10 | 5/31/09 | |
Corporate Income | $149,000 | $124,000 | $164,000 |
GNMA | 115,000 | 109,000 | 164,000 |
Floating Rate | (a) | (a) | (a) |
Floating Rate FundAdvisor Class | (a) | (a) | (a) |
TRP Government Reserve Investment | 86,000 | 65,000 | 98,000 |
High Yield | 152,000 | 128,000 | 166,000 |
High Yield FundAdvisor Class | 45,000 | 38,000 | 47,000 |
Inflation Focused Bond | 149,000 | 124,000 | 164,000 |
Inflation Protected Bond | 149,000 | 124,000 | 144,000 |
Institutional Core Plus | 192,000 | 153,000 | 198,000 |
Institutional Core PlusF Class | (b) | (a) | (a) |
Institutional Floating Rate | 191,000 | 163,000 | 198,000 |
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Fund | Fiscal Year Ended | ||
5/31/11 | 5/31/10 | 5/31/09 | |
Institutional Floating RateF Class | 2,000 | (a) | (a) |
Institutional High Yield | 182,000 | 153,000 | 198,000 |
New Income | 208,000 | 176,000 | 230,000 |
New Income FundAdvisor Class | 2,000 | 2,000 | (b) |
New Income FundR Class | (b) | (b) | (b) |
Personal Strategy Balanced | 182,000 | 153,000 | 199,000 |
Personal Strategy Growth | 182,000 | 153,000 | 199,000 |
Personal Strategy Income | 182,000 | 153,000 | 198,000 |
Prime Reserve | 115,000 | 92,000 | 130,000 |
TRP Reserve Investment | 149,000 | 124,000 | 144,000 |
Retirement 2005 | (c) | (c) | (c) |
Retirement 2005 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2005 FundR Class | (c) | (c) | (c) |
Retirement 2010 | (c) | (c) | (c) |
Retirement 2010 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2010 FundR Class | (c) | (c) | (c) |
Retirement 2015 | (c) | (c) | (c) |
Retirement 2015 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2015 FundR Class | (c) | (c) | (c) |
Retirement 2020 | (c) | (c) | (c) |
Retirement 2020 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2020 FundR Class | (c) | (c) | (c) |
Retirement 2025 | (c) | (c) | (c) |
Retirement 2025 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2025 FundR Class | (c) | (c) | (c) |
Retirement 2030 | (c) | (c) | (c) |
Retirement 2030 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2030 FundR Class | (c) | (c) | (c) |
Retirement 2035 | (c) | (c) | (c) |
Retirement 2035 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2035 FundR Class | (c) | (c) | (c) |
Retirement 2040 | (c) | (c) | (c) |
Retirement 2040 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2040 FundR Class | (c) | (c) | (c) |
Retirement 2045 | (c) | (c) | (c) |
Retirement 2045 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2045 FundR Class | (c) | (c) | (c) |
Retirement 2050 | (c) | (c) | (c) |
Retirement 2050 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2050 FundR Class | (c) | (c) | (c) |
Retirement 2055 | (c) | (c) | (c) |
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Fund | Fiscal Year Ended | ||
5/31/11 | 5/31/10 | 5/31/09 | |
Retirement 2055 FundAdvisor Class | (c) | (c) | (c) |
Retirement 2055 FundR Class | (c) | (c) | (c) |
Retirement Income | (c) | (c) | (c) |
Short-Term Bond | 148,000 | 128,000 | 179,000 |
Short-Term BondAdvisor Class | 15,000 | 9,000 | (b) |
Strategic Income | 196,000 | 176,000 | 95,000 |
Strategic IncomeAdvisor Class | (b) | (b) | (b) |
U.S. Treasury Intermediate | 86,000 | 65,000 | 98,000 |
U.S. Treasury Long-Term | 86,000 | 65,000 | 98,000 |
U.S. Treasury Money | 86,000 | 65,000 | 98,000 |
(a) Prior to commencement of operations.
(b) Less than $1,000.
(c) Paid by underlying Price funds pursuant to the Special Servicing Agreement.
Fund | Fiscal Year Ended | ||
10/31/11 | 10/31/10 | 10/31/09 | |
Africa & Middle East | $184,000 | $174,000 | $167,000 |
Emerging Europe | 118,000 | 108,000 | 104,000 |
Emerging Markets Stock | 184,000 | 174,000 | 165,000 |
European Stock | 118,000 | 109,000 | 106,000 |
Global Infrastructure | 164,000 | 120,000 | (a) |
Global Infrastructure FundAdvisor Class | (b) | 3,000 | (a) |
Global Large-Cap Stock | 132,000 | 120,000 | 125,000 |
Global Large-Cap Stock FundAdvisor Class | 1,000 | 2,000 | 3,000 |
Global Stock | 132,000 | 119,000 | 116,000 |
Global StockAdvisor Class | 1,000 | 2,000 | 2,000 |
Institutional Africa & Middle East | 184,000 | 174,000 | 178,000 |
Institutional Concentrated International Equity | 118,000 | 29,000 | (a) |
Institutional Emerging Markets Equity | 149,000 | 143,000 | 136,000 |
Institutional Global Equity | 118,000 | 108,000 | 104,000 |
Institutional Global Large-Cap Equity | 118,000 | 108,000 | 114,000 |
Institutional International Core Equity | 124,000 | 2,000 | (a) |
Institutional International Growth Equity | 118,000 | 108,000 | 104,000 |
International Discovery | 149,000 | 144,000 | 141,000 |
International Equity Index | 184,000 | 170,000 | 137,000 |
International Growth & Income | 139,000 | 124,000 | 123,000 |
International Growth & IncomeAdvisor Class | 8,000 | 9,000 | 12,000 |
International Growth & IncomeR Class | 1,000 | 2,000 | 2,000 |
International Stock | 146,000 | 138,000 | 172,000 |
International StockAdvisor Class | 2,000 | 1,000 | 1,000 |
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Fund | Fiscal Year Ended | ||
10/31/11 | 10/31/10 | 10/31/09 | |
International StockR Class | (b) | (b) | (b) |
Japan | 88,000 | 80,000 | 75,000 |
Latin America | 118,000 | 109,000 | 100,000 |
New Asia | 149,000 | 143,000 | 142,000 |
Overseas Stock | 149,000 | 143,000 | 136,000 |
Summit Cash Reserves | 118,000 | 108,000 | 104,000 |
Summit GNMA | 118,000 | 108,000 | 104,000 |
Summit Municipal Income | 88,000 | 80,000 | 74,000 |
Summit Municipal Intermediate | 88,000 | 80,000 | 74,000 |
Summit Municipal Money Market | 118,000 | 108,000 | 104,000 |
U.S. Bond Enhanced Index | 118,000 | 108,000 | 104,000 |
(a) Prior to commencement of operations.
(b) Less than $1,000.
Fund | Fiscal Year Ended | ||
12/31/10 | 12/31/09 | 12/31/08 | |
Balanced | $180,000 | $159,000 | $286,000 |
Blue Chip Growth | 101,000 | 86,000 | 149,000 |
Blue Chip Growth FundAdvisor Class | 8,000 | 9,000 | 18,000 |
Blue Chip Growth FundR Class | 1,000 | (a) | 1,000 |
Capital Appreciation | 189,000 | 138,000 | 214,000 |
Capital Appreciation FundAdvisor Class | 4,000 | 2,000 | 3,000 |
Capital Opportunity | 133,000 | 118,000 | 208,000 |
Capital Opportunity FundAdvisor Class | 5,000 | 5,000 | 1,000 |
Capital Opportunity FundR Class | (a) | (a) | (a) |
Diversified Mid-Cap Growth | 83,000 | 68,000 | 145,000 |
Diversified Small-Cap Growth | 83,000 | 68,000 | 149,000 |
Dividend Growth | 94,000 | 81,000 | 152,000 |
Dividend Growth FundAdvisor Class | 2,000 | (a) | (a) |
Emerging Markets Bond | 180,000 | 157,000 | 244,000 |
Emerging Markets Corporate Bond | (b) | (b) | (b) |
Emerging Markets Corporate Bond FundAdvisor Class | (b) | (b) | (b) |
Emerging Markets Bond Multi-Sector Account Portfolio | (b) | (b) | (b) |
Emerging Markets Local Currency Bond | (b) | (b) | (b) |
Emerging Markets Local Currency Bond FundAdvisor Class | (b) | (b) | (b) |
Emerging Markets Local Multi-Sector Account Portfolio | (b) | (b) | (b) |
Equity Income | 99,000 | 87,000 | 149,000 |
Equity Income FundAdvisor Class | 10,000 | 10,000 | 19,000 |
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Fund | Fiscal Year Ended | ||
12/31/10 | 12/31/09 | 12/31/08 | |
Equity Income Fund FundR Class | 1,000 | 1,000 | 2,000 |
Equity Index 500 | 143,000 | 147,000 | 228,000 |
Extended Equity Market Index | 148,000 | 128,000 | 308,000 |
Financial Services | 83,000 | 68,000 | 139,000 |
Global Real Estate | 189,000 | 177,000 | 42,000 |
Global Real Estate FundAdvisor Class | 4,000 | 5,000 | 2,000 |
Global Technology | 112,000 | 96,000 | 167,000 |
Growth & Income | 83,000 | 69,000 | 137,000 |
Growth Stock | 122,000 | 107,000 | 168,000 |
Growth Stock FundAdvisor Class | 12,000 | 13,000 | 26,000 |
Growth Stock FundR Class | 4,000 | 4,000 | 7,000 |
Health Sciences | 181,000 | 157,000 | 217,000 |
Institutional Emerging Markets Bond | 180,000 | 157,000 | 231,000 |
Institutional International Bond | 180,000 | 157,000 | 235,000 |
Institutional Large-Cap Core Growth | 83,000 | 68,000 | 138,000 |
Institutional Large-Cap Growth | 83,000 | 68,000 | 135,000 |
Institutional Large-Cap Value | 83,000 | 68,000 | 135,000 |
Institutional Mid-Cap Equity Growth | 83,000 | 69,000 | 140,000 |
Institutional Small-Cap Stock | 83,000 | 68,000 | 147,000 |
Institutional U.S. Structured Research | 112,000 | 96,000 | 171,000 |
International Bond | 170,000 | 144,000 | 217,000 |
International Bond FundAdvisor Class | 23,000 | 27,000 | 42,000 |
Media & Telecommunications | 112,000 | 96,000 | 169,000 |
Mid-Cap Growth | 102,000 | 95,000 | 163,000 |
Mid-Cap Growth FundAdvisor Class | 5,000 | 4,000 | 6,000 |
Mid-Cap Growth FundR Class | 1,000 | 1,000 | 2,000 |
Mid-Cap Value | 96,000 | 85,000 | 151,000 |
Mid-Cap Value FundAdvisor Class | 9,000 | 6,000 | 12,000 |
Mid-Cap Value FundR Class | 4,000 | 4,000 | 8,000 |
New America Growth | 93,000 | 81,000 | 150,000 |
New America FundAdvisor Class | 3,000 | 1,000 | 1,000 |
New Era | 83,000 | 69,000 | 139,000 |
New Horizons | 112,000 | 96,000 | 184,000 |
Real Assets | 63,000 | (b) | (b) |
Real Estate | 154,000 | 106,000 | 146,000 |
Real Estate FundAdvisor Class | 7,000 | 4,000 | 3,000 |
Science & Technology | 109,000 | 113,000 | 186,000 |
Science & Technology FundAdvisor Class | 18,000 | 18,000 | 31,000 |
Small-Cap Stock | 92,000 | 77,000 | 151,000 |
Small-Cap Stock FundAdvisor Class | 4,000 | 5,000 | 13,000 |
Small-Cap Value | 139,000 | 124,000 | 183,000 |
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Fund | Fiscal Year Ended | ||
12/31/10 | 12/31/09 | 12/31/08 | |
Small-Cap Value FundAdvisor Class | 23,000 | 17,000 | 23,000 |
Spectrum Growth | (c) | (c) | (c) |
Spectrum Income | (c) | (c) | (c) |
Spectrum International | (c) | (c) | (c) |
Total Equity Market Index | 148,000 | 128,000 | 290,000 |
U.S. Large-Cap Core | 94,000 | 39,000 | (b) |
U.S. Large-Cap CoreAdvisor Class | 2,000 | (a) | (b) |
Value | 93,000 | 77,000 | 131,000 |
Value FundAdvisor Class | 3,000 | 9,000 | 24,000 |
(a) Less than $1,000.
(b) Prior to commencement of operations.
(c) Paid by underlying Price funds pursuant to the Special Servicing Agreement.
The funds (other than the Inflation Focused Bond Fund, Institutional Funds (except for their F Class shares), Multi-Sector Account Portfolios, and TRP Reserve Investment Funds) have adopted an administrative fee payment (AFP) program that authorizes the funds to make payments for services provided on behalf of the funds. Under the AFP program, payments by a fund (of up to 0.15% of its average daily net assets per year ) may be made to retirement plans, retirement plan recordkeepers, insurance companies, banks, and broker-dealers for transfer agency, recordkeeping, and other administrative services. These services include, but are not limited to: transmitting net purchase and redemption orders; maintaining separate records for shareholders reflecting purchases, redemptions, and share balances; mailing shareholder confirmations and periodic statements; processing dividend payments; and telephone services in connection with the above. Under the AFP program, the funds paid the amounts set forth below in calendar year 2011.
Fund | Payment |
Africa & Middle East | $39,480 |
Balanced | 827,432 |
Blue Chip Growth | 5,267,627 |
California Tax-Free Bond | 37,894 |
California Tax-Free Money | 1,334 |
Capital Appreciation | 3,744,912 |
Capital Opportunity | 172,033 |
Corporate Income | 129,544 |
Diversified Mid-Cap Growth | 20,866 |
Diversified Small-Cap Growth | 14,984 |
Dividend Growth | 1,132,331 |
Emerging Europe | 113,463 |
Emerging Markets Bond | 278,514 |
Emerging Markets Corporate Bond | (a) |
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Fund | Payment |
Emerging Markets Bond Multi-Sector Account Portfolio | (a)(b) |
Emerging Markets Local Currency Bond | 295 |
Emerging Markets Local Multi-Sector Account Portfolio | (a)(b) |
Emerging Markets Stock | 1,522,823 |
Equity Income | 8,273,165 |
Equity Index 500 | 251,578 |
European Stock | 80,762 |
Extended Equity Market Index | 55,755 |
Financial Services | 53,505 |
Floating Rate | 236 |
Floating Rate Multi-Sector Account Portfolio | (a)(b) |
Georgia Tax-Free Bond | 29,715 |
GNMA | 82,179 |
TRP Government Reserve Investment | (b) |
Global Infrastructure | 2,232 |
Global Large-Cap Stock | 985 |
Global Real Estate | 5,062 |
Global Stock | 100,012 |
Global Technology | 139,967 |
Growth & Income | 64,501 |
Growth Stock | 7,720,933 |
Health Sciences | 1,141,614 |
High Yield | 1,367,639 |
High Yield Multi-Sector Account Portfolio | (a)(b) |
Inflation Focused Bond | (b) |
Inflation Protected Bond | 61,840 |
Institutional Africa & Middle East | (b) |
Institutional Concentrated International Equity | (b) |
Institutional Core Plus | (b) |
Institutional Core Plus FundF Class | 62 |
Institutional Emerging Markets Bond | (b) |
Institutional Emerging Markets Equity | (b) |
Institutional Floating Rate | (b) |
Institutional Floating Rate FundF Class | 7,254 |
Institutional Global Equity | (b) |
Institutional Global Large-Cap Equity | (b) |
Institutional High Yield | (b) |
Institutional International Bond | (b) |
Institutional International Core Equity | (b) |
Institutional International Growth Equity | (b) |
Institutional Large-Cap Core Growth | (b) |
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Fund | Payment |
Institutional Large-Cap Growth | (b) |
Institutional Large-Cap Value | (b) |
Institutional Mid-Cap Equity Growth | (b) |
Institutional Small-Cap Stock | (b) |
Institutional U.S. Structured Research | (b) |
International Bond | 1,719,717 |
International Discovery | 1,512,865 |
International Equity Index | 72,944 |
International Growth & Income | 204,269 |
International Stock | 480,828 |
Investment-Grade Corporate Multi-Sector Account Portfolio | (a)(b) |
Japan | 18,134 |
Latin America | 573,613 |
Maryland Short-Term Tax-Free Bond | 32,591 |
Maryland Tax-Free Bond | 212,934 |
Maryland Tax-Free Money | 932 |
Media & Telecommunications | 356,066 |
Mid-Cap Growth | 9,793,871 |
Mid-Cap Value | 3,128,401 |
Mortgage-Backed Securities Multi-Sector Account Portfolio | (a)(b) |
New America Growth | 823,335 |
New Asia | 1,422,848 |
New Era | 1,311,324 |
New Horizons | 2,942,419 |
New Income | 1,852,962 |
New Jersey Tax-Free Bond | 25,465 |
New York Tax-Free Bond | 28,307 |
New York Tax-Free Money | 455 |
Overseas Stock | 248,430 |
Personal Strategy Balanced | 722,144 |
Personal Strategy Growth | 427,882 |
Personal Strategy Income | 277,186 |
Prime Reserve | 55,819 |
Real Assets | 2 |
Real Estate | 1,397,984 |
TRP Reserve Investment | (b) |
Retirement 2005 | (c) |
Retirement 2010 | (c) |
Retirement 2015 | (c) |
Retirement 2020 | (c) |
Retirement 2025 | (c) |
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Fund | Payment |
Retirement 2030 | (c) |
Retirement 2035 | (c) |
Retirement 2040 | (c) |
Retirement 2045 | (c) |
Retirement 2050 | (c) |
Retirement 2055 | (c) |
Retirement Income | (c) |
Science & Technology | 439,208 |
Short-Term Bond | 1,739,413 |
Small-Cap Stock | 4,494,246 |
Small-Cap Value | 1,853,222 |
Spectrum Growth | (c) |
Spectrum Income | (c) |
Spectrum International | (c) |
Strategic Income | 17,299 |
Summit Cash Reserves | 74,847 |
Summit GNMA | 5,072 |
Summit Municipal Income | 319,721 |
Summit Municipal Intermediate | 1,213,698 |
Summit Municipal Money Market | 162 |
Tax-Efficient Equity | 4,267 |
Tax-Exempt Money | 154,554 |
Tax-Free High Yield | 212,424 |
Tax-Free Income | 201,201 |
Tax-Free Short-Intermediate | 628,298 |
Total Equity Market Index | 46,344 |
U.S. Bond Enhanced Index | 217,244 |
U.S. Large-Cap Core | 623 |
U.S. Treasury Intermediate | 74,648 |
U.S. Treasury Long-Term | 49,879 |
U.S. Treasury Money | 218,755 |
Value | 808,267 |
Virginia Tax-Free Bond | 148,210 |
(a) Prior to commencement of operations.
(b) Not eligible to participate in AFP program.
(c) Paid by underlying Price funds pursuant to the Special Servicing Agreement.
Each Advisor and R Class has adopted an AFP program under which various third parties, including third parties receiving 12b-1 payments, may receive payments from the class in addition to 12b-1 fees for providing various recordkeeping, transfer agency, and administrative services to the classes and/or shareholders thereof. These services include, but are not limited to: transmitting net purchase and redemption orders; maintaining separate records for shareholders reflecting purchases, redemptions, and share balances; mailing shareholder
126
confirmations and periodic statements; processing dividend payments; and telephone services in connection with the above. Under this AFP program, the funds paid the amounts set forth below in calendar year 2011.
Fund | Payment |
Blue Chip Growth FundAdvisor Class | $1,090,721 |
Blue Chip Growth FundR Class | 163,202 |
Capital Appreciation FundAdvisor Class | 340,592 |
Capital Opportunity FundAdvisor Class | 9,033 |
Capital Opportunity FundR Class | 1,595 |
Dividend Growth FundAdvisor Class | 103,770 |
Emerging Markets Corporate Bond FundAdvisor Class | (a) |
Emerging Markets Local Currency Bond FundAdvisor Class | (a) |
Equity Income FundAdvisor Class | 2,342,977 |
Equity Income FundR Class | 355,058 |
Floating Rate FundAdvisor Class | 35 |
Global Infrastructure FundAdvisor Class | 94 |
Global Large-Cap Stock FundAdvisor Class | 198 |
Global Real Estate FundAdvisor Class | 763 |
Global Stock FundAdvisor Class | 7,574 |
Growth Stock FundAdvisor Class | 2,454,806 |
Growth Stock FundR Class | 1,014,262 |
High Yield FundAdvisor Class | 1,630,724 |
International Bond FundAdvisor Class | 534,462 |
International Growth & Income FundAdvisor Class | 249,437 |
International Growth & Income FundR Class | 60,351 |
International Stock FundAdvisor Class | 167,448 |
International Stock FundR Class | 4,627 |
Mid-Cap Growth FundAdvisor Class | 1,466,574 |
Mid-Cap Growth FundR Class | 427,185 |
Mid-Cap Value FundAdvisor Class | 763,520 |
Mid-Cap Value FundR Class | 480,315 |
New America Growth FundAdvisor Class | 225,167 |
New Income FundAdvisor Class | 36,412 |
New Income FundR Class | 16,937 |
Real Estate FundAdvisor Class | 170,001 |
Retirement 2005 FundAdvisor Class | (b) |
Retirement 2005 FundR Class | (b) |
Retirement 2010 FundAdvisor Class | (b) |
Retirement 2010 FundR Class | (b) |
Retirement 2015 FundAdvisor Class | (b) |
Retirement 2015 FundR Class | (b) |
Retirement 2020 FundAdvisor Class | (b) |
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Fund | Payment |
Retirement 2020 FundR Class | (b) |
Retirement 2025 FundAdvisor Class | (b) |
Retirement 2025 FundR Class | (b) |
Retirement 2030 FundAdvisor Class | (b) |
Retirement 2030 FundR Class | (b) |
Retirement 2035 FundAdvisor Class | (b) |
Retirement 2035 FundR Class | (b) |
Retirement 2040 FundAdvisor Class | (b) |
Retirement 2040 FundR Class | (b) |
Retirement 2045 FundAdvisor Class | (b) |
Retirement 2045 FundR Class | (b) |
Retirement 2050 FundAdvisor Class | (b) |
Retirement 2050 FundR Class | (b) |
Retirement 2055 FundAdvisor Class | (b) |
Retirement 2055 FundR Class | (b) |
Retirement Income FundAdvisor Class | (b) |
Retirement Income FundR Class | (b) |
Science & Technology FundAdvisor Class | 612,208 |
Short-Term Bond FundAdvisor Class | 481,555 |
Small-Cap Stock FundAdvisor Class | 364,740 |
Small-Cap Value FundAdvisor Class | 1,426,943 |
Strategic Income FundAdvisor Class | 460 |
Tax-Free Income FundAdvisor Class | 1,318,059 |
U.S. Large-Cap Core FundAdvisor Class | 167 |
Value FundAdvisor Class | 387,941 |
(a) Prior to commencement of operations.
(b) Paid by underlying Price funds pursuant to the Special Servicing Agreement
529 Plans
T. Rowe Price is the investment manager of several college savings plans established by states under section 529 of the Code. Each plan has a number of portfolios that invest in underlying Price Funds including Blue Chip Growth, Emerging Markets Stock, Equity Index 500, Financial Services, Health Sciences, Inflation Focused Bond, International Growth & Income, International Stock, Mid-Cap Growth, Mid-Cap Value, New Horizons, New Income, Overseas Stock, Real Assets, Science & Technology, Short-Term Bond, Small-Cap Stock, Spectrum Income, Summit Cash Reserves, Total Equity Market Index, U.S. Bond Enhanced Index, and Value Funds. Each portfolio establishes an omnibus account in the underlying Price Funds. Transfer agent and recordkeeping expenses incurred by the portfolios as a result of transactions by participants in the 529 plans that invest in the Price Funds are paid for by the underlying Price Funds under their agreement with their transfer agent, T. Rowe Price Services, Inc. The expenses borne by each underlying Price Fund are set forth in the shareholder report of the underlying fund under Related Party Transactions.
Control of Investment Adviser
T. Rowe Price Group, Inc. (Group) is a publicly owned company and owns 100% of the stock of T. Rowe Price Associates, Inc., which in turn owns 100% of T. Rowe Price International Ltd, which in turn owns 100%
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each of T. Rowe Price Hong Kong Limited and T. Rowe Price Singapore Private Ltd. Group was formed in 2000 as a holding company for the T. Rowe Price-affiliated companies.
Investment Services, a Maryland corporation formed in 1980 as a wholly owned subsidiary of T. Rowe Price, serves as distributor for all T. Rowe Price mutual funds on a continuous basis. Investment Services is registered as a broker-dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA).
Investment Services is located at the same address as the funds and T. Rowe Price100 East Pratt Street, Baltimore, Maryland 21202.
Investment Services serves as distributor to the funds, pursuant to an Underwriting Agreement (Underwriting Agreement), which provides that the funds (other than the Single-Fee Funds) will pay all fees and expenses in connection with necessary state filings; preparing, setting in type, printing, and mailing of prospectuses and reports to shareholders; and issuing shares, including expenses of confirming purchase orders. For the Single-Fee Funds, the Underwriting Agreement provides that Investment Services will pay, or will arrange for others to pay, these fees and expenses.
The Underwriting Agreement also provides that Investment Services will pay all fees and expenses in connection with printing and distributing prospectuses and reports for use in offering and selling fund shares; preparing, setting in type, printing, and mailing all sales literature and advertising; Investment Services federal and state registrations as a broker-dealer; and offering and selling shares for each fund, except for those fees and expenses specifically assumed by the funds. Investment Services expenses are paid by T. Rowe Price.
Investment Services acts as the agent of the funds, in connection with the sale of fund shares in the various states in which Investment Services is qualified as a broker-dealer. Under the Underwriting Agreement, Investment Services accepts orders for fund shares at net asset value. Other than as described below with respect to the Advisor and R Class shares, no sales charges are paid by investors or the funds and no compensation is paid to Investment Services.
Advisor and R Class
Distribution and Shareholder Services Plan
The funds directors adopted a plan pursuant to Rule 12b-1 with respect to each Advisor and R Class (the Class). Each plan provides that the Class may compensate Investment Services or such other persons as the funds or Investment Services designates, to finance any or all of the distribution, shareholder servicing, maintenance of shareholder accounts, and/or other administrative services with respect to Class shares. It is expected that most, if not all, payments under each plan will be made (either directly, or indirectly through Investment Services) to intermediaries other than Investment Services such as broker-dealers, banks, insurance companies, and retirement plan recordkeepers. Under each plan, the Advisor Class pays a fee at the annual rate of up to 0.25% of that classs average daily net assets and the R Class pays a fee at the annual rate of up to 0.50% of that classs average net daily assets. Normally, the full amount of the fee is paid to the intermediary on shares sold through that intermediary; however, a lesser amount may be paid. In addition, the fee may be split among intermediaries based on the level of services provided by each. Intermediaries may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing of the Class, as well as for a wide variety of other purposes associated with supporting, distributing, and servicing Class shares. The amount of fees paid by a Class during any year may be more or less than the cost of distribution and other services provided to the Class and its investors. FINRA rules limit the amount of annual distribution and service fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The plan complies with these rules.
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The plan requires that Investment Services provide, or cause to be provided, a quarterly written report identifying the amounts expended by each Class and the purposes for which such expenditures were made to the fund directors for their review.
Prior to approving the plan, the funds considered various factors relating to the implementation of the plan and determined that there is a reasonable likelihood that the plan will benefit each fund, its Class, and the Classs shareholders. The fund directors noted that to the extent the plan allows a fund to sell Class shares in markets to which it would not otherwise have access, the plan may result in additional sales of fund shares. This may enable a fund to achieve economies of scale that could reduce expenses. In addition, certain ongoing shareholder services may be provided more effectively by intermediaries with which shareholders have an existing relationship.
The plan is renewable from year to year with respect to each fund, so long as its continuance is approved at least annually (1) by the vote of a majority of the fund directors and (2) by a vote of the majority of the funds independent directors cast in person at a meeting called for the purpose of voting on such approval. The plan may not be amended to increase materially the amount of fees paid by any Class thereunder unless such amendment is approved by a majority vote of the outstanding shares of such Class and by the fund directors in the manner prescribed by Rule 12b-1 under the 1940 Act. The plan is terminable with respect to a Class at any time by a vote of a majority of the independent directors or by a majority vote of the outstanding shares in the Class.
Payments under the 12b-1 plans will still normally be made for funds that are closed to new investors. Such payments are made for the various services provided to existing investors by the intermediaries receiving such payments.
The following payments for the fiscal year indicated were made to intermediaries, including broker-dealers and insurance companies, for the distribution, shareholder servicing, maintenance of shareholder accounts, and/or other administrative services under the plan.
Fund | Fiscal Year Ended |
Tax-Free Income FundAdvisor Class | $2,560,000 |
Fund | Fiscal
Year Ended |
Floating RateAdvisor Class | (a) |
High Yield FundAdvisor Class | $4,486,000 |
New Income FundAdvisor Class | 338,000 |
New Income FundR Class | 57,000 |
Retirement 2005 FundAdvisor Class | 67,000 |
Retirement 2005 FundR Class | 287,000 |
Retirement 2010 FundAdvisor Class | 1,841,000 |
Retirement 2010 FundR Class | 2,238,000 |
Retirement 2015 FundAdvisor Class | 675,000 |
Retirement 2015 FundR Class | 434,000 |
Retirement 2020 FundAdvisor Class | 4,177,000 |
Retirement 2020 FundR Class | 5,225,000 |
Retirement 2025 FundAdvisor Class | 868,000 |
Retirement 2025 FundR Class | 486,000 |
Retirement 2030 FundAdvisor Class | 3,488,000 |
Retirement 2030 FundR Class | 4,490,000 |
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Fund | Fiscal
Year Ended |
Retirement 2035 FundAdvisor Class | 598,000 |
Retirement 2035 FundR Class | 337,000 |
Retirement 2040 FundAdvisor Class | 2,415,000 |
Retirement 2040 FundR Class | 3,008,000 |
Retirement 2045 FundAdvisor Class | 290,000 |
Retirement 2045 FundR Class | 172,000 |
Retirement 2050 FundAdvisor Class | 404,000 |
Retirement 2050 FundR Class | 590,000 |
Retirement 2055 FundAdvisor Class | 40,000 |
Retirement 2055 FundR Class | 20,000 |
Retirement Income FundAdvisor Class | 598,000 |
Retirement Income FundR Class | 783,000 |
Short-Term Bond FundAdvisor Class | 1,339,000 |
Strategic Income FundAdvisor Class | 1,000 |
(a) Prior to commencement of operations.
Fund | Fiscal Year Ended |
Global Infrastructure FundAdvisor Class | $1,000 |
Global Large-Cap Stock FundAdvisor Class | 2,000 |
Global Stock FundAdvisor Class | 18,000 |
International Growth & Income FundAdvisor Class | 535,000 |
International Growth & Income FundR Class | 203,000 |
International Stock FundAdvisor Class | 360,000 |
International Stock FundR Class | 18,000 |
Fund | Fiscal
Year Ended |
Blue Chip Growth FundAdvisor Class | $1,800,000 |
Blue Chip Growth FundR Class | 419,000 |
Capital Appreciation FundAdvisor Class | 527,000 |
Capital Opportunity FundAdvisor Class | 20,000 |
Capital Opportunity FundR Class | 5,000 |
Dividend Growth FundAdvisor Class | 72,000 |
Emerging Markets Corporate Bond FundAdvisor Class | (a) |
Emerging Markets Local Currency Bond FundAdvisor Class | (a) |
Equity Income FundAdvisor Class | 3,831,000 |
Equity Income FundR Class | 1,003,000 |
Global Real Estate FundAdvisor Class | 1,000 |
Growth Stock FundAdvisor Class | 4,533,000 |
Growth Stock FundR Class | 3,290,000 |
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Fund | Fiscal
Year Ended |
International Bond FundAdvisor Class | 1,281,000 |
Mid-Cap Growth FundAdvisor Class | 2,112,000 |
Mid-Cap Growth FundR Class | 1,182,000 |
Mid-Cap Value FundAdvisor Class | 1,613,000 |
Mid-Cap Value FundR Class | 1,582,000 |
New America Growth FundAdvisor Class | 80,000 |
Real Estate FundAdvisor Class | 267,000 |
Science & Technology FundAdvisor Class | 956,000 |
Small-Cap Stock FundAdvisor Class | 555,000 |
Small-Cap Value FundAdvisor Class | 2,217,000 |
U.S. Large-Cap Core FundAdvisor Class | 1,000 |
Value FundAdvisor Class | 840,000 |
(a) Prior to commencement of operations.
Investment or Brokerage Discretion
Decisions with respect to the selection, purchase, and sale of portfolio securities on behalf of the international Price Funds are generally made by T. Rowe Price International, Price Hong Kong, or Price Singapore. Decisions with respect to the selection, purchase, and sale of portfolio securities on behalf of all other Price Funds are generally made by T. Rowe Price. T. Rowe Price, T. Rowe Price International, and Price Hong Kong are responsible for implementing these decisions for the Price Funds, including, where applicable, the negotiation of commissions, the allocation of portfolio brokerage and principal business, and the use of affiliates to assist in routing orders for execution.
How Broker-Dealers Are Selected
With respect to equity and debt securities, T. Rowe Price, T. Rowe Price International, or Price Hong Kong may effect principal transactions on behalf of a fund with a broker-dealer that furnishes brokerage and/or research services; designate any such broker-dealer to receive selling concessions, discounts, or other allowances; or otherwise deal with any such broker-dealer in connection with the acquisition of securities in underwritings. T. Rowe Price, T. Rowe Price International, or Price Hong Kong may receive research services in connection with brokerage transactions, including designations in fixed-price offerings.
Debt Securities
In purchasing and selling debt securities, T. Rowe Price, T. Rowe Price International, and Price Hong Kong ordinarily place transactions with the issuer or a primary market-maker acting as principal for the securities on a net basis, with no brokerage commission being paid by the client (although the price usually includes undisclosed compensation) and may involve the designation of selling concessions. Debt securities may also be purchased from underwriters at prices which include underwriting fees. Any transactions placed through broker-dealers serving as primary market-makers reflect the spread between the bid and ask prices. Funds that invest exclusively or primarily in debt securities may nonetheless benefit from research and services received through the use of commissions generated by funds investing in equity securities.
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Equity Securities
In purchasing and selling equity securities, T. Rowe Price, T. Rowe Price International, and Price Hong Kong seek to obtain quality execution at favorable security prices through responsible broker-dealers and, in the case of agency transactions, at competitive commission rates. However, under certain conditions, higher brokerage commissions may be paid in return for a mix of brokerage and research services.
In selecting broker-dealers to execute the Price Funds portfolio transactions, consideration is given to such factors as the price of the security, the rate of the commission, the size and difficulty of the order, the reliability, integrity, general execution, and operational capabilities of competing broker-dealers, their expertise in particular markets, and brokerage and research services provided by them. It is not the policy of T. Rowe Price, T. Rowe Price International, or Price Hong Kong to seek the lowest available commission rate where it is believed that a broker-dealer charging a higher commission rate would offer greater reliability or provide better price or execution.
As a general practice, transactions involving U.S. equity securities are executed in the primary market with market-makers, or through an electronic communications network (ECN) or Alternative Trading System. In selecting from among these options, T. Rowe Price generally seeks to select the broker-dealers or electronic venue it believes to be actively and effectively trading the security being purchased or sold. In an effort to obtain quality execution, orders for foreign equity securities may be placed through T. Rowe Price Internationals or Price Hong Kongs trading desk. Executions of orders may be directed to an affiliated trading desk that is best situated to execute a particular order.
Transactions on stock exchanges involve the payment of brokerage commissions. In transactions on stock exchanges in the U.S., these commissions are negotiated. Traditionally, commission rates have generally not been negotiated on stock markets outside the U.S. However, an increasing number of overseas stock markets have adopted a system of negotiated rates or ranges of rates, although a small number of markets continue to be subject to an established schedule of minimum commission rates. It is expected that equity securities will ordinarily be purchased in the primary markets, whether over-the-counter (OTC) or listed, and that listed securities may be purchased in the OTC market if such market is deemed the primary market. In the case of securities traded on the OTC markets, there is generally no stated commission, but the price usually includes an undisclosed commission or markup. In underwritten offerings, the price includes a disclosed, fixed commission or discount.
Evaluating the Overall Reasonableness of Brokerage Commissions Paid
On a continuing basis, T. Rowe Price, T. Rowe Price International, and Price Hong Kong seek to determine what levels of commission rates are reasonable in the marketplace for transactions executed on behalf of mutual funds and other institutional clients. In evaluating the reasonableness of commission rates, T. Rowe Price, T. Rowe Price International, and Price Hong Kong may consider any or all of the following: (a) rates quoted by broker-dealers; (b) the size of a particular transaction, in terms of the number of shares, dollar amount, and number of clients involved; (c) the complexity of a particular transaction in terms of both execution and settlement; (d) the level and type of business done with a particular firm over a period of time; (e) the extent to which the broker-dealer has capital at risk in the transaction; (f) historical commission rates; and (g) rates paid by other institutional investors based on available public information.
Commissions Paid to Broker-Dealers for Research
T. Rowe Price, T. Rowe Price International, and Price Hong Kong receive a wide range of research services from broker-dealers. The services provide domestic and international perspectives and may cover investment opportunities throughout the world. These services include information on the economy, industries, groups of securities, individual companies, statistics, accounting and tax law interpretations, political developments, legal developments affecting portfolio securities, technical market action, pricing and appraisal services, performance analysis, credit analysis, risk measurement analysis, and analysis of corporate responsibility issues. Research services are received primarily in the form of written reports, e-mails, computer-generated services, telephone contacts, and personal meetings with security analysts. Such services may also be provided
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through meetings arranged with corporate management, industry spokespersons, economists, academicians, and government representatives. Some research may be incorporated into firm-wide systems or communications. Therefore, T. Rowe Price, T. Rowe Price International, or Price Hong Kong may have access to research obtained through commissions generated by one another.
Certain broker-dealers that provide quality brokerage and execution services may also furnish proprietary research services to T. Rowe Price, T. Rowe Price International, and Price Hong Kong. Proprietary research may also include research provided by an affiliate of the broker-dealer. With regard to the payment of brokerage commissions and receipt of proprietary research, T. Rowe Price, T. Rowe Price International, and Price Hong Kong have adopted brokerage allocation policies which embody the concepts of Section 28(e) of the 1934 Act and which are in accordance with the Conduct of Business Rules of the United Kingdom Financial Services Authority. Section 28(e) permits an investment adviser to cause its accounts or clients to pay a higher commission to a broker-dealer that furnishes research services than what might be charged by another broker-dealer that does not furnish research services (or that furnishes brokerage and research services deemed to be of lesser value). The adviser must determine in good faith that the commission is reasonable in relation to the value of the research services (and any brokerage services) provided. The determination may be viewed in terms of either that particular transaction or the overall responsibilities of the adviser with respect to the accounts over which it exercises investment discretion. As a result, research may not necessarily benefit all accounts paying commissions to such broker-dealers.
Except as set forth in the following section on Directed Brokerage, T. Rowe Price, T. Rowe Price International, and Price Hong Kong have policies of not allocating brokerage business in return for products or services other than brokerage or research services, although from time to time each receives third-party vendor services and products serving both research and non-research functions in accordance with the provisions of Section 28(e). T. Rowe Price, T. Rowe Price International, and Price Hong Kong cannot always readily determine the extent to which commissions charged by broker-dealers reflect the value of their research services. However, in accordance with regulations issued by the United Kingdom Financial Services Authority, T. Rowe Price International makes a good faith determination of the amount of its clients commissions attributable to research.
T. Rowe Price, T. Rowe Price International, and Price Hong Kong may receive proprietary research from broker-dealers in connection with brokerage transactions, including selling concessions and designations in fixed-price offerings in which a Price Fund or non-ERISA client participates.
Research services received from broker-dealers are supplemental to the research efforts of T. Rowe Price, T. Rowe Price International, and Price Hong Kong and, when utilized, are subject to internal analysis before being incorporated into their investment processes. As a practical matter, it would not be possible to take into consideration all of the information and varied opinions presently provided by broker-dealers. Independent third-party research is an important component of the Price Funds investment selection process and may be paid for directly by T. Rowe Price, T. Rowe Price International, or Price Hong Kong, obtained through commission sharing arrangements (CSAs), or acquired through step-out transactions.
T. Rowe Price, T. Rowe Price International, and Price Hong Kong may obtain third-party research from broker-dealers or non-broker-dealers by entering into CSAs. Under a CSA, the executing broker-dealer agrees that part of the commissions it earns on certain equity trades for the Price Funds will be allocated to one or more research providers, as directed by T. Rowe Price, T. Rowe Price International, and Price Hong Kong, as payment for research. The use of CSAs allows T. Rowe Price, T. Rowe Price International, and Price Hong Kong to direct broker-dealers to pool commissions that are generated from orders executed at that broker-dealer (for equity transactions on behalf of the Price Funds and other client accounts), and then periodically direct the broker-dealer to pay third party research providers for research. All such uses of CSAs by T. Rowe Price, T. Rowe Price International, and Price Hong Kong shall be subject to applicable law and their best execution obligations.
In addition, proprietary research and services may be acquired or received either directly from executing brokers-dealers or indirectly through other brokers-dealers in step-out transactions or similar arrangements. A step-out is an arrangement by which an investment manager executes a trade through one broker-dealer but instructs that entity to step-out all or a portion of the trade to another broker-dealer. This second broker-
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dealer will clear, settle, and receive commissions for, the stepped-out portion. T. Rowe Price, T. Rowe Price International, and Price Hong Kong may use a step-out to compensate broker-dealers who provide valuable proprietary research services to the Price Funds. T. Rowe Price may also use full service broker-dealers that provide bundled proprietary research, either directly or through step-out transactions with other brokers. All such uses of brokerage by T. Rowe Price, T. Rowe Price International, and Price Hong Kong to acquire research shall be subject to applicable law and their best execution obligations. Lower commissions may be available from other broker-dealers that do not provide research.
While receipt of research services from brokerage firms has not reduced normal research activities by T. Rowe Price, T. Rowe Price International, or Price Hong Kong, the expenses of either could be materially increased if it attempted to generate such additional information through its own staff. To the extent that research services of value are provided by broker-dealers, T. Rowe Price, T. Rowe Price International, and Price Hong Kong are relieved of expenses which they might otherwise bear.
Directed Brokerage
The Price Funds that invest in U.S. equity securities have adopted a commission recapture program. Under the program, a percentage of commissions generated by the portfolio transactions of those funds is rebated to the funds by the broker-dealers and credited to short-term security gain/loss.
At the present time, the Price Funds do not recapture commissions, underwriting discounts, or selling group concessions in connection with debt securities acquired in underwritten offerings. T. Rowe Price, T. Rowe Price International, and Price Hong Kong may, however, have the opportunity to designate a portion of the underwriting spread to broker-dealers that participate in the offering.
Allocation of Brokerage Commissions
T. Rowe Price, T. Rowe Price International, and Price Hong Kong have policies of not pre-committing a specific amount of business to any broker-dealer over any specific time period. Historically, brokerage placement has been determined, as appropriate, by the needs of a specific transaction such as market-making, availability of a buyer or seller of a particular security, or specialized execution skills. T. Rowe Price, T. Rowe Price International, and Price Hong Kong may choose to allocate brokerage among several broker-dealers that are able to meet the needs of the transaction.
Each year, T. Rowe Price, T. Rowe Price International, and Price Hong Kong assess the contributions of the equity brokerage and research services provided by broker-dealers and create a ranking of broker-dealers in response to these assessments. Portfolio managers, research analysts, and the trading department each evaluate the brokerage, execution, and research services they receive from broker-dealers and make judgments as to the quality of such services. Actual business received by a particular firm may not directly reflect its ranking in the voting process. It may be less than the suggested target but can, and often does, exceed the suggestions because the total business is allocated on the basis of all the considerations described above. Allocation of brokerage business is monitored on a periodic basis by the Equity and Fixed Income Brokerage and Trading Control Committees. In no event is a broker-dealer excluded from receiving business from T. Rowe Price, T. Rowe Price International, or Price Hong Kong because it has not been identified as providing research services. Discount or execution-only brokers, as well as ECNs, are used where deemed appropriate.
Trade Allocation Policies
T. Rowe Price, T. Rowe Price International, and Price Hong Kong have developed written trade allocation guidelines for their trading desks. Generally, when the amount of securities available in a public offering or the secondary markets is insufficient to satisfy the volume or price requirements for the participating client portfolios, the guidelines require a pro-rata allocation based upon the relative sizes of the participating client portfolios or the relative sizes of the participating client orders, depending upon the market involved. In allocating trades made on a combined basis, the trading desks seek to achieve the same net unit price of the securities for each participating client. Because a pro-rata allocation may not always adequately accommodate all facts and circumstances, the guidelines provide for exceptions to allocate trades on an adjusted basis, which
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may include a system-generated random allocation. For example, adjustments may be made: (i) to eliminate de minimis positions; (ii) to give priority to accounts with specialized investment policies and objectives; and (iii) to reallocate in light of a participating portfolios characteristics (e.g., available cash, industry or issuer concentration, duration, credit exposure). With respect to any private placement transactions, conditions imposed by the issuer may limit availability of allocations to client accounts.
Miscellaneous
The brokerage allocation policies for T. Rowe Price, T. Rowe Price International, and Price Hong Kong are generally applied to all of their fully discretionary accounts, which represent a substantial majority of all assets under management. Research services furnished by broker-dealers through which T. Rowe Price, T. Rowe Price International, or Price Hong Kong effect securities transactions may be used in servicing all accounts (including non-Price Funds) managed by T. Rowe Price, T. Rowe Price International, or Price Hong Kong. Therefore, research services received from broker-dealers that execute transactions for a particular fund will not necessarily be used by T. Rowe Price, T. Rowe Price International, or Price Hong Kong in connection with the management of that fund. The Price Funds do not allocate business to any broker-dealer on the basis of its sales of the funds shares. However, this does not mean that broker-dealers who purchase fund shares for their clients will not receive business from the fund.
Since certain clients of T. Rowe Price, T. Rowe Price International, and Price Hong Kong could have similar investment objectives and programs to those of a particular Price Fund, T. Rowe Price, T. Rowe Price International, or Price Hong Kong may make recommendations to other clients that result in their purchasing or selling securities simultaneously with the fund. As a result, the demand for securities being purchased or the supply of securities being sold may increase, and this could have an adverse effect on the price of those securities. It is the policy of T. Rowe Price, T. Rowe Price International, and Price Hong Kong not to favor one client over another in making recommendations or in placing orders. T. Rowe Price frequently follows the practice of grouping orders of various clients for execution. T. Rowe Price International and Price Hong Kong may also follow this practice. Clients should be aware, however, that the grouping of their orders with other clients orders may sometimes result in a more favorable price and at other times may result in a less favorable price than if the client orders had not been grouped. Where an aggregate order is executed in a series of transactions at various prices on a given day, each participating clients proportionate share of such order will reflect the average price paid or received with respect to the total order.
T. Rowe Price may also include orders on behalf of the T. Rowe Price Associates Foundation, Inc. and the T. Rowe Price Program for Charitable Giving, Inc., not for profit entities, and the T. Rowe Price Savings Bank in aggregated orders from time to time.
T. Rowe Price, T. Rowe Price International, and Price Hong Kong may give advice and take action for clients, including the Price Funds, which differs from advice given or the timing or nature of action taken for other clients. T. Rowe Price, T. Rowe Price International, and Price Hong Kong are not obligated to initiate transactions for clients in any security that their principals, affiliates, or employees may purchase or sell for their own accounts or for other clients.
Purchase and sale transactions may be effected directly among and between non-ERISA client accounts (including affiliated mutual funds), provided no commission is paid to any broker-dealer, the security traded has readily available market quotations, and the transaction is effected at the independent current market price.
The T. Rowe Price Equity and Fixed Income Brokerage and Trading Control Committees are responsible for developing and monitoring brokerage policies and resolving questions relating to those policies.
T. Rowe Price and its affiliated investment advisers have established a general investment policy that they will ordinarily not make additional purchases of a common stock for their clients (including the Price funds) if, as a result of such purchases, 10% or more of the outstanding common stock of the issuer would be held by clients in the aggregate. In certain limited instances, however, T. Rowe Price and its affiliated investment advisers may increase aggregate ownership to a maximum of 18%. All aggregate ownership decisions are
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reviewed by the appropriate oversight committee. For purposes of monitoring both of these limits, securities held by clients and clients of affiliated advisers are included.
Total Brokerage Commissions
For the fiscal years indicated, the total brokerage commissions paid by each fund, including the discounts received by securities dealers in connection with underwritings, and the percentage of these commissions paid to firms which provided research, statistical, or other services to T. Rowe Price, T. Rowe Price International, or Price Hong Kong in connection with the management of each fund that invests in equity securities, are shown below.
Fund | Fiscal Year Ended | |||||
2/28/11 | % | 2/28/10 | % | 2/28/09 | % | |
California Tax-Free Bond | $129,000 | (a) | $260,000 | (a) | $228,000 | (a) |
California Tax-Free Money | 1,000 | (a) | 0 | (a) | 8,000 | (a) |
Floating Rate Multi-Sector Account Portfolio | (b) | (b) | (b) | (b) | (b) | (b) |
Georgia Tax-Free Bond | 63,000 | (a) | 161,000 | (a) | 75,000 | (a) |
High Yield Multi-Sector Account Portfolio | (b) | (b) | (b) | (b) | (b) | (b) |
Investment-Grade Corporate Multi-Sector Account Portfolio | (b) | (b) | (b) | (b) | (b) | (b) |
Maryland Short-Term Tax-Free Bond | 17,000 | (a) | 32,000 | (a) | 36,000 | (a) |
Maryland Tax-Free Bond | 498,000 | (a) | 517,000 | (a) | 319,000 | (a) |
Maryland Tax-Free Money | 1,000 | (a) | 0 | (a) | 11,000 | (a) |
Mortgage-Backed Securities Multi-Sector Account Portfolio | (b) | (b) | (b) | (b) | (b) | (b) |
New Jersey Tax-Free Bond | 113,000 | (a) | 139,000 | (a) | 109,000 | (a) |
New York Tax-Free Bond | 77,000 | (a) | 227,000 | (a) | 195,000 | (a) |
New York Tax-Free Money | 2,000 | (a) | 0 | (a) | 4,000 | (a) |
Tax-Efficient Equity | 19,000 | 0.0 | 0 | 0.0 | 14,000 | 1.7 |
Tax-Exempt Money | 1,000 | (a) | 0 | (a) | 13,000 | (a) |
Tax-Free High Yield | 933,000 | (a) | 1,717,000 | (a) | 1,564,000 | (a) |
Tax-Free Income | 1,495,000 | (a) | 2,753,000 | (a) | 1,676,000 | (a) |
Tax-Free Short-Intermediate | 311,000 | (a) | 547,000 | (a) | 283,000 | (a) |
Virginia Tax-Free Bond | 278,000 | (a) | 715,000 | (a) | 300,000 | (a) |
(a) Percentages are not required for funds that do not invest in equity securities.
(b) Prior to commencement of operations.
Fund | Fiscal Year Ended | |||||
5/31/11 | % | 5/31/10 | % | 5/31/09 | % | |
Corporate Income | $1,103,000 | 78.7 | $876,000 | 83.6 | $823,000 | 86.6 |
Floating Rate | (a) | (a) | (a) | (a) | (a) | (a) |
GNMA | 71,000 | (b) | 41,000 | (b) | 11,000 | (b) |
TRP Government Reserve Investment | (c) | (c) | (c) | (c) | (c) | (c) |
High Yield | 37,777,000 | 80.0 | 37,151,000 | 81.0 | 15,219,000 | 78.2 |
Inflation Focused Bond | 353,000 | (b) | 912,000 | (b) | 345,000 | (b) |
137
Fund | Fiscal Year Ended | |||||
5/31/11 | % | 5/31/10 | % | 5/31/09 | % | |
Inflation Protected Bond | 9,000 | (b) | 10,000 | (b) | 5,000 | (b) |
Institutional Core Plus | 63,000 | 70.3 | 46,000 | 76.1 | 38,000 | 90.5 |
Institutional Floating Rate | 8,475,000 | 82.3 | 4,585,000 | (b) | 1,033,000 | (b) |
Institutional High Yield | 6,153,000 | 79.3 | 7,642,000 | 85.4 | 2,414,000 | 76.0 |
New Income | 6,086,000 | 70.9 | 5,305,000 | 84.2 | 3,102,000 | 94.9 |
Personal Strategy Balanced | 795,000 | 3.3 | 726,000 | 9.5 | 957,000 | 23.6 |
Personal Strategy Growth | 639,000 | 3.7 | 678,000 | 10.2 | 855,000 | 26.1 |
Personal Strategy Income | 363,000 | 2.9 | 333,000 | 8.6 | 636,000 | 14.2 |
Prime Reserve | (c) | (c) | (c) | (c) | (c) | (c) |
TRP Reserve Investment | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2005 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2010 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2015 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2020 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2025 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2030 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2035 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2040 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2045 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2050 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement 2055 | (c) | (c) | (c) | (c) | (c) | (c) |
Retirement Income | (c) | (c) | (c) | (c) | (c) | (c) |
Short-Term Bond | 2,454,000 | (b) | 2,763,000 | (b) | 1,262,000 | (b) |
Strategic Income | 289,000 | 57.4 | 161,000 | 64.9 | 125,000 | 81.9 |
U.S. Treasury Intermediate | 18,000 | (b) | 23,000 | (b) | 58,000 | (b) |
U.S. Treasury Long-Term | 14,000 | (b) | 14,000 | (b) | 39,000 | (b) |
U.S. Treasury Money | (c) | (c) | (c) | (c) | (c) | (c) |
(a) Prior to commencement of operations.
(b) Percentages are not required for funds that do not invest in equity securities.
(c) Not applicable.
Fund | Fiscal Year Ended | |||||
10/31/11 | % | 10/31/10 | % | 10/31/09 | % | |
Africa & Middle East | $925,000 | 35.5 | $940,000 | 38.9 | $932,000 | 1.6 |
Emerging Europe | 904,000 | 20.0 | 862,000 | 24.6 | 687,000 | 4.0 |
Emerging Markets Stock | 4,605,000 | 43.1 | 4,575,000 | 38.5 | 4,855,000 | 32.5 |
European Stock | 980,000 | 31.9 | 1,042,000 | 26.4 | 1,227,000 | 6.7 |
Global Infrastructure | 38,000 | 20.6 | 27,000 | 18.1 | (a) | (a) |
Global Large-Cap Stock | 118,000 | 35.3 | 87,000 | 32.6 | 130,000 | 2.6 |
Global Stock | 973,000 | 33.4 | 1,127,000 | 22.4 | 1,610,000 | 18.0 |
138
Fund | Fiscal Year Ended | |||||
10/31/11 | % | 10/31/10 | % | 10/31/09 | % | |
Institutional Africa & Middle East | 739,000 | 34.5 | 364,000 | 39.6 | 547,000 | 1.0 |
Institutional Concentrated International Equity | 9,000 | 17.1 | 4,000 | 8.9 | (a) | (a) |
Institutional Emerging Markets Equity | 821,000 | 37.4 | 505,000 | 36.7 | 458,000 | 33.3 |
Institutional Global Equity | 246,000 | 31.1 | 282,000 | 21.8 | 195,000 | 26.7 |
Institutional Global Large-Cap Equity | 124,000 | 35.0 | 81,000 | 34.3 | 312,000 | 0.5 |
Institutional International Core Equity | 18,000 | 35.7 | 2,000 | 1.5 | (a) | (a) |
Institutional International Growth Equity | 106,000 | 39.0 | 94,000 | 41.0 | 90,000 | 27.8 |
International Discovery | 4,108,000 | 35.5 | 4,165,000 | 39.2 | 3,039,000 | 29.6 |
International Equity Index | 107,000 | 1.8 | 36,000 | 0.9 | 344,000 | 0.2 |
International Growth & Income | 2,956,000 | 40.4 | 2,011,000 | 30.4 | 1,777,000 | 10.9 |
International Stock | 10,042,000 | 40.8 | 8,578,000 | 43.6 | 7,836,000 | 28.0 |
Japan | 306,000 | 51.4 | 270,000 | 52.2 | 546,000 | 59.3 |
Latin America | 2,223,000 | 31.4 | 2,589,000 | 33.7 | 1,752,000 | 38.3 |
New Asia | 12,677,000 | 59.3 | 9,715,000 | 56.3 | 5,776,000 | 46.5 |
Overseas Stock | 1,666,000 | 27.5 | 1,113,000 | 33.6 | 700,000 | 21.8 |
Summit Cash Reserves | 0 | (b) | 0 | (b) | 0 | (b) |
Summit GNMA | 11,000 | (b) | 7,000 | (b) | 2,000 | (b) |
Summit Municipal Income | 182,000 | (b) | 392,000 | (b) | 370,000 | (b) |
Summit Municipal Intermediate | 199,000 | (b) | 878,000 | (b) | 634,000 | (b) |
Summit Municipal Money Market | 0 | (b) | 0 | (b) | 4,000 | (b) |
U.S. Bond Enhanced Index | 150,000 | (b) | 127,000 | (b) | 217,000 | (b) |
(a) Prior to commencement of operations.
(b) Percentages are not required for funds that do not invest in equity securities.
Fund | Fiscal Year Ended | |||||
12/31/10 | % | 12/31/09 | % | 12/31/08 | % | |
Balanced | $1,294,000 | 5.3 | $1,738,000 | 15.6 | $1,791,000 | 26.5 |
Blue Chip Growth | 5,311,000 | 2.6 | 8,282,000 | 35.4 | 8,826,000 | 45.3 |
Capital Appreciation | 11,154,000 | 0.6 | 17,381,000 | 9.2 | 13,893,000 | 24.3 |
Capital Opportunity | 153,000 | 1.8 | 264,000 | 13.9 | 301,000 | 35.9 |
Diversified Mid-Cap Growth | 49,000 | 0.3 | 79,000 | 0.3 | 46,000 | 5.2 |
Diversified Small-Cap Growth | 34,000 | 0.0 | 31,000 | 7.6 | 24,000 | 12.8 |
Dividend Growth | 499,000 | 0.4 | 363,000 | 12.5 | 499,000 | 34.9 |
Emerging Markets Bond | 6,000 | (b) | (a) | (b) | (a) | (b) |
Emerging Markets Corporate Bond | (c) | (c) | (c) | (c) | (c) | (c) |
Emerging Markets Bond Multi-Sector Account Portfolio | (c) | (c) | (c) | (c) | (c) | (c) |
139
Fund | Fiscal Year Ended | |||||
12/31/10 | % | 12/31/09 | % | 12/31/08 | % | |
Emerging Markets Local Currency Bond | (c) | (c) | (c) | (c) | (c) | (c) |
Emerging Markets Local Multi-Sector Account Portfolio | (c) | (c) | (c) | (c) | (c) | (c) |
Equity Income | 4,254,000 | 1.7 | 5,217,000 | 17.2 | 13,095,000 | 26.0 |
Equity Index 500 | 761,000 | 0.0 | 1,617,000 | 0.3 | 1,200,000 | 0.8 |
Extended Equity Market Index | 51,000 | 0.0 | 57,000 | 0.5 | 43,000 | 3.5 |
Financial Services | 901,000 | 0.2 | 1,312,000 | 9.1 | 1,681,000 | 16.1 |
Global Real Estate | 569,000 | 0.4 | 328,000 | 17.8 | 3,000 | 13.1 |
Global Technology | 992,000 | 18.4 | 575,000 | 18.2 | 314,000 | 46.7 |
Growth & Income | 5,849,000 | 6.9 | 12,917,000 | 13.2 | 614,000 | 36.5 |
Growth Stock | 9,070,000 | 1.8 | 10,844,000 | 5.4 | 19,995,000 | 36.3 |
Health Sciences | 1,639,000 | 3.0 | 2,638,000 | 0.9 | 3,463,000 | 21.0 |
Institutional Emerging Markets Bond | (a) | (b) | (a) | (b) | 0 | (b) |
Institutional International Bond | (a) | (b) | (a) | (b) | 0 | (b) |
Institutional Large-Cap Core Growth | 77,000 | 3.2 | 94,000 | 30.9 | 121,000 | 31.2 |
Institutional Large-Cap Growth | 1,610,000 | 0.3 | 1,280,000 | 8.5 | 1,408,000 | 34.4 |
Institutional Large-Cap Value | 146,000 | 1.4 | 193,000 | 15.0 | 186,000 | 13.8 |
Institutional Mid-Cap Equity Growth | 555,000 | 0.9 | 648,000 | 9.5 | 382,000 | 27.2 |
Institutional Small-Cap Stock | 499,000 | 1.2 | 455,000 | 10.0 | 456,000 | 23.5 |
Institutional U.S. Structured Research | 279,000 | 1.3 | 200,000 | 10.8 | 177,000 | 33.6 |
International Bond | (a) | (b) | (a) | (b) | (a) | (b) |
Media & Telecommunications | 5,074,000 | 3.2 | 3,025,000 | 21.9 | 3,017,000 | 26.1 |
Mid-Cap Growth | 11,744,000 | 0.2 | 16,707,000 | 8.8 | 12,067,000 | 29.0 |
Mid-Cap Value | 11,430,000 | 1.4 | 20,713,000 | 16.9 | 12,194,000 | 58.0 |
New America Growth | 901,000 | 0.8 | 1,173,000 | 13.1 | 794,000 | 40.4 |
New Era | 2,625,000 | 8.8 | 2,571,000 | 16.3 | 3,027,000 | 28.8 |
New Horizons | 13,013,000 | 1.3 | 8,728,000 | 9.9 | 7,356,000 | 31.6 |
Real Assets | 903,000 | 9.8 | (c) | (c) | (c) | (c) |
Real Estate | 3,658,000 | 0.6 | 4,863,000 | 7.1 | 1,251,000 | 52.5 |
Science & Technology | 4,218,000 | 2.2 | 5,789,000 | 12.9 | 4,719,000 | 39.8 |
Small-Cap Stock | 7,812,000 | 1.3 | 7,431,000 | 10.5 | 5,894,000 | 26.7 |
Small-Cap Value | 5,206,000 | 0.1 | 5,791,000 | 2.4 | 3,460,000 | 15.7 |
Spectrum Growth | (d) | (d) | (d) | (d) | (d) | (d) |
Spectrum Income | (d) | (d) | (d) | (d) | (d) | (d) |
Spectrum International | (d) | (d) | (d) | (d) | (d) | (d) |
Total Equity Market Index | 38,000 | 0.0 | 85,000 | 0.3 | 63,000 | 2.0 |
140
Fund | Fiscal Year Ended | |||||
12/31/10 | % | 12/31/09 | % | 12/31/08 | % | |
U.S. Large-Cap Core | 9,000 | 0.0 | 7,000 | 0.8 | (c) | (c) |
Value | 7,044,000 | 1.2 | 7,069,000 | 13.2 | 6,498,000 | 14.3 |
(a) Less than $1,000.
(b) Percentages are not required for funds that do not invest in equity securities.
(c) Prior to commencement of operations.
(d) Not applicable.
Fund Holdings in Securities of Brokers and Dealers
The following lists the funds holdings in securities of its regular brokers and dealers as of the end of the fiscal years indicated.
(Amounts in 000s)
California Tax-Free Bond Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | | $2,306 |
California Tax-Free Money Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Barclays Capital | | $1,400 |
Wells Fargo | | 1,750 |
Maryland Tax-Free Money Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | | $6,132 |
New York Tax-Free Bond Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs | | $1,951 |
New York Tax-Free Money Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $5,900 |
Bank of America Merrill Lynch | | 1,180 |
Wells Fargo Securities | | 6,500 |
Tax-Efficient Equity Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $210 |
Popular Securities | | 42 |
141
Tax-Exempt Money Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $44,100 |
Barclays Capital | | 13,325 |
Bank of America Merrill Lynch | | 45,013 |
Wells Fargo Securities | | 44,295 |
Tax-Free High Yield Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | | $5,806 |
Goldman Sachs | | 26,629 |
Tax-Free Short-Intermediate Fund
Fiscal Year Ended 2/28/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs | | $14,863 |
(Amounts in 000s)
Corporate Income Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $18,093 |
Bank of America Merrill Lynch | | 24,287 |
Citigroup Global Markets, Inc. | | 19,184 |
Barclays Capital | | 4,482 |
Goldman Sachs & Co. | | 20,925 |
Morgan Stanley & Co Inc. | | 19,799 |
Wells Fargo Securities | | 7,835 |
CS First Boston Corp. | | 3,163 |
Deutsche Bank Securities | | 570 |
GNMA Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $22,884 |
Greenwich Capital Markets | | 3,465 |
Morgan Stanley & Co Inc. | | 11,469 |
UBS Securities, Inc. | | 5,478 |
CS First Boston Corp. | | 7,960 |
Wells Fargo Securities | | 2,542 |
142
TRP Government Reserve Investment Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | | $122,429 |
Barclays Capital | | 100,000 |
Bank of America Merrill Lynch | | 159,356 |
HSBC Securities Inc. | | 50,000 |
JPMorgan Chase | | 102,664 |
Citigroup Global Markets, Inc. | | 150,000 |
UBS Securities, Inc. | | 120,000 |
Morgan Stanley & Co Inc. | | 137,578 |
Goldman Sachs & Co. | | 25,837 |
High Yield Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | | $18,600 |
Inflation Focused Bond Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | | $12,103 |
UBS Securities, Inc. | | 22,118 |
Citigroup Global Markets, Inc. | | 25,630 |
Barclays Capital | | 9,890 |
Greenwich Capital Markets | | 6,322 |
Morgan Stanley & Co. Inc. | | 31,943 |
HSBC Securities Inc. | | 7,698 |
CS First Boston Corp. | | 4,081 |
Deutsche Bank Securities | | 8,881 |
Goldman Sachs & Co. | | 20,897 |
JPMorgan Chase | | 142,665 |
Inflation Protected Bond Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | | $1,015 |
CS First Boston Corp. | | 1,899 |
JPMorgan Chase | | 1,029 |
143
Institutional Core Plus Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $3,122 |
Bank of America Merrill Lynch | | 3,132 |
CS First Boston Corp. | | 421 |
Deutsche Bank | | 622 |
Morgan Stanley & Co Inc. | | 3,388 |
Barclays Capital | | 224 |
Citigroup Global Markets, Inc. | | 1,717 |
Goldman Sachs & Co. | | 1,483 |
UBS Securities | | 381 |
Wells Fargo Securities | | 523 |
Institutional High Yield Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | | $2,842 |
New Income Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $260,517 |
Citigroup Global Markets, Inc. | | 141,681 |
Bank of America Merrill Lynch | | 187,786 |
Morgan Stanley & Co Inc. | | 346,891 |
Barclays Capital | | 28,232 |
Goldman Sachs & Co. | | 190,557 |
Wells Fargo Securities | | 50,947 |
Greenwich Capital Markets | | 11,696 |
HSBC Securities Inc | | 44,070 |
CS First Boston Corp. | | 74,325 |
BNP Paribas Securities | | 13,982 |
Personal Strategy Balanced Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | $1,648 | $2,705 |
Bank of America Merrill Lynch | 4,688 | 8,228 |
Citigroup Global Markets, Inc. | 2,364 | 3,875 |
Morgan Stanley & Co Inc. | 3,711 | 5,893 |
JPMorgan Chase | 11,774 | 7,487 |
Goldman Sachs & Co. | 3,195 | 3,520 |
Deutsche Bank | 1,060 | 676 |
UBS Investment Bank | | 2,092 |
Barclays Capital | 1,936 | 613 |
BNP Paribas Securities | 2,206 | 384 |
144
Personal Strategy Growth Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | $1,574 | $2,333 |
Bank of America Merrill Lynch | 4,385 | 2,937 |
Citigroup Global Markets, Inc. | 2,184 | 1,008 |
Morgan Stanley & Co Inc. | 3,481 | 1,495 |
JPMorgan Chase | 10,879 | 2,067 |
Goldman Sachs & Co. | 2,885 | 1,152 |
Deutsche Bank | 1,001 | |
UBS Investment Bank | | 1,132 |
Barclays Capital | 1,818 | 235 |
BNP Paribas Securities | 2,085 | 123 |
Personal Strategy Income Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | $674 | $2,132 |
Bank of America Merrill Lynch | 1,903 | 5,451 |
Citigroup Global Markets, Inc. | 936 | 3,398 |
Morgan Stanley & Co. Inc. | 1,503 | 4,257 |
JPMorgan Chase | 4,700 | 5,225 |
Goldman Sachs & Co. | 1,281 | 2,430 |
Deutsche Bank | 442 | |
BNP Paribas Securities | 900 | 266 |
UBS Investment Bank | | 2,371 |
Barclays Capital | 787 | 495 |
Deutsche Bank Securities | | 1,353 |
Prime Reserve Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $72,829 |
Barclays Capital | | 50,000 |
CS First Boston Corp. | | 4,302 |
Reserve Investment Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | | $130,557 |
Barclays Capital | | 265,000 |
Bank of America Merrill Lynch | | 50,785 |
JPMorgan Chase | | 6,190 |
Citigroup Global Markets, Inc. | | 100,220 |
Deutsche Bank Securities | | 400,000 |
UBS Securities, Inc. | | 180,000 |
HSBC Securities Inc. | | 325,000 |
Morgan Stanley & Co. Inc. | | 256,129 |
Goldman Sachs & Co. | | 398,826 |
145
Short-Term Bond Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs & Co. | | $84,757 |
JPMorgan Chase | | 94,977 |
Bank of America Merrill Lynch | | 47,783 |
Barclays Capital | | 33,073 |
Morgan Stanley & Co Inc. | | 91,791 |
CS First Boston Corp. | | 16,378 |
Citigroup Global Markets, Inc. | | 80,187 |
Deutsche Bank Securities | | 23,380 |
UBS Securities, Inc. | | 50,969 |
Greenwich Capital Markets | | 7,244 |
Strategic Income Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs & Co. | | $1,310 |
BNP Paribas Securities | | 406 |
Bank Of America Merrill Lynch | | 2,720 |
Deutsche Bank Securities | | 640 |
HSBC Securities Inc. | | 741 |
JPMorgan Chase | | 2,805 |
CS First Boston Corp. | | 548 |
Barclays Capital | | 705 |
Citigroup Global Markets, Inc. | | 2,399 |
Morgan Stanley & Co. Inc. | | 3,112 |
Wells Fargo Securities | $640 | 306 |
U.S. Treasury Money Fund
Fiscal Year Ended 5/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $15,062 |
HSBC Securities Inc. | | 175,000 |
Barclays Capital | | 133,000 |
UBS Securities, Inc. | | 100,000 |
BNP Paribas Securities | | 150,000 |
Bank of America Merrill Lynch | | 125,569 |
Morgan Stanley & Co. Inc. | | 154,575 |
Citigroup Global Markets, Inc. | | 151,821 |
(Amounts in 000s)
Africa & Middle East Fund
As of 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Morgan Stanley & Co Inc. | $5,994 | |
HSBC Brokerage | 12,835 | |
Deutsche Bank | 6,655 | |
Citigroup Global Markets, Inc. | 5,088 | |
146
European Stock Fund