T. Rowe Price New Income Fund
On March 5, 2018, the funds Board of Directors approved a proposed amendment to the funds investment objective. The change is subject to shareholder approval at a special shareholder meeting scheduled for July 25, 2018. Proxy materials describing the proposed investment objective change and the rationale for the proposal are expected to begin mailing to shareholders on May 11, 2018. All fund shareholders who held shares at the close of business on April 26, 2018, are eligible to vote on the proposal.
The funds current investment objective is as follows:
The fund seeks the highest level of income consistent with the preservation of capital over time by investing primarily in marketable debt securities.
The Board proposes that the funds investment objective be changed to the following:
The fund seeks to maximize total return through income and capital appreciation.
No material changes are anticipated to the funds current investment program or to the funds overall risk profile as a result of these changes. However, the Board believes that it is in the interests of the funds shareholders to approve a more general investment objective that better reflects current investment strategies and to allow the fund greater long-term flexibility to execute its investment program.
If the proposed amendment to the funds investment objective is approved by shareholders, it is expected to become effective on or about August 1, 2018.
F43-042 5/1/2018