SUMMARY | |
PRWAX | |
May 1, 2014 | |
T. Rowe Price New America Growth Fund | |
A fund seeking long-term capital growth through investments primarily in the common stocks of growth companies. | |
Before you invest, you may want to review the funds prospectus,
which contains more information about the fund and its risks. You can find the funds prospectus
and other information about the fund online at troweprice.com/prospectus. You can also get this information at no cost by calling
The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. | |
Summary | 1 |
Investment Objective
The fund seeks to provide long-term capital growth by investing primarily in the common stocks of growth companies.
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 | NONE |
Maximum account fee | $20a |
Annual fund operating expenses | |
Management fees | 0.65% |
Distribution and service (12b-1) fees | 0.00% |
Other expenses | 0.16% |
Total annual fund operating expenses | 0.81% |
a Subject to certain exceptions, accounts with a balance of less than $10,000 are charged an annual $20 fee.
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 and that the funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 year | 3 years | 5 years | 10 years |
$83 | $259 | $450 | $1,002 |
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. During the most recent fiscal year, the funds portfolio turnover rate was 91.5% of the average value of its portfolio.
T. Rowe Price | 2 |
Investments, Risks, and Performance
Principal Investment Strategies The fund invests primarily (at least 65% of its total assets) in common stocks of U.S. companies operating in those sectors of the economy that, in the view of T. Rowe Price, are the fastest growing or have the greatest growth potential. The U.S. economy continues to evolve, in part because of the application of new technologies and scientific advances. Growing companies that are positioned to benefit from dynamic technological, social, medical, and business developments that help define the current U.S. economic landscape can be found across an array of industries. The funds allocation to industry sectors will generally reflect such factors as the overall revenue growth of the component companies in a sector and the sectors contribution to U.S. gross domestic product from year to year, although the fund may at times invest significantly in stocks of technology companies.
Holdings range from large-cap to small-cap companies. In selecting stocks, we look for many characteristics, typically including, but not limited to:
· earnings growth rates that generally exceed that of the average company in the S&P 500 Stock Index;
· favorable company fundamentals, such as a strong balance sheet, sound business strategy, and promising competitive positioning;
· effective management; or
· stock valuations, such as price/earnings or price/cash flow ratios, that seem reasonable relative to the companys prospects.
In pursuing its investment objective, the fund has the discretion to deviate from its normal investment criteria, as previously described, and purchase securities that the funds management believes will provide an opportunity for substantial appreciation. These situations might arise when the funds management believes a security could increase in value for a variety of reasons, including an extraordinary corporate event, a new product introduction or innovation, a favorable competitive development, or a change in management.
While most assets will typically be invested in U.S. common stocks, the fund may invest in foreign stocks in keeping with the funds objectives.
The fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities.
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
Summary | 3 |
employed by the fund fail to produce the intended results, the fund could underperform other funds with similar objectives and investment strategies.
Risks of stock investing Stocks generally fluctuate in value more than bonds and may decline significantly over short time periods. There is a chance that stock prices overall will decline because stock markets tend to move in cycles, with periods of rising prices and falling prices. The value of a stock in which the fund invests may decline due to general weakness in the stock market or because of factors that affect a company or a particular industry.
Investment style risk Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment. The funds growth approach to investing could cause it to underperform other stock funds that employ a different investment style. Growth stocks tend to be more volatile than certain other types of stocks and their prices usually fluctuate more dramatically than the overall stock market. A stock with growth characteristics can have sharp price declines due to decreases in current or expected earnings and may lack dividends that can help cushion its share price in a declining market.
Small- and mid-cap stock risk To the extent the fund invests in small- and medium-sized companies, it is exposed to greater volatility than a fund that invests only in large companies. Small- and medium-sized companies often have less experienced management, narrower product lines, more limited financial resources, and less publicly available information than larger companies. Smaller companies may have limited trading markets and tend to be more sensitive to changes in overall economic conditions.
Industry risk To the extent the fund invests in technology companies, the fund may perform poorly during a downturn in one or more of the industries that heavily impact technology companies. Technology companies can be adversely affected by, among other things, intense competition, earnings disappointments, and rapid obsolescence of products and services due to technological innovations or changing consumer preferences.
Foreign investing risk This is the risk that the funds investments in foreign securities may be adversely affected by political, social, and economic conditions overseas, reduced liquidity, or decreases in foreign currency values relative to the U.S. dollar.
Performance The bar chart showing calendar year returns and the average annual total returns table indicate risk by illustrating how much returns can differ from one year to the next and how fund performance compares with that of a comparable market index. The funds past performance (before and after taxes) is not necessarily an indication of future performance.
The fund can also experience short-term performance swings, as shown by the best and worst calendar quarter returns during the years depicted.
T. Rowe Price | 4 |
In addition, the average annual total returns table shows hypothetical after-tax returns to suggest how taxes paid by a shareholder may influence returns. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) account or individual retirement account.
Average Annual Total Returns | ||||||||||||
|
|
| Periods ended |
| ||||||||
| December 31, 2013 |
| ||||||||||
| 1 Year | 5 Years | 10 Years |
| ||||||||
| New America Growth Fund |
| ||||||||||
| Returns before taxes | 37.73 | % | 22.65 | % | 9.24 | % |
| ||||
| Returns after taxes on distributions | 33.59 |
|
| 21.65 |
|
| 8.17 |
|
|
| |
| Returns after taxes on distributions |
|
|
|
|
|
|
|
|
|
| |
| and sale of fund shares | 23.43 |
|
| 18.45 |
|
| 7.36 |
|
|
| |
| S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | 32.39 |
|
| 17.94 |
|
| 7.41 |
|
|
| |
| Lipper Multi-Cap Growth Funds Index | 36.52 |
|
| 20.53 |
|
| 8.15 |
|
|
|
Updated performance information is available through troweprice.com or may be obtained by calling 1-800-225-5132.
Management
Investment Adviser T. Rowe Price Associates, Inc. (T. Rowe Price)
Summary | 5 |
Portfolio Manager | Title | Managed Fund Since | Joined Investment |
Daniel Martino | Chairman of Investment Advisory Committee | 2013 | 2006 |
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, and Uniform Gifts to Minors Act or Uniform Transfers to Minors Act 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
Any dividends or 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 a 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.
T. Rowe Price
Associates, Inc. | F60-045 5/1/14 |