Registration Nos. 033-29697/811-5833
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. 52 /X/
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
Amendment No. 50 /X/
T. ROWE PRICE INSTITUTIONAL 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 1, 2012
It is proposed that this filing will become effective (check appropriate box):
// Immediately upon filing pursuant to paragraph (b)
/X / On May 1, 2012 pursuant to paragraph (b)
// 60 days after filing pursuant to paragraph (a)(1)
// On (date) pursuant to paragraph (a)(1)
// 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 | T. Rowe Price |
TREBX RPIIX | Institutional Emerging Markets Bond Fund Institutional International Bond Fund |
May 1, 2012 | Two international bond funds seeking high income and capital appreciation through investments in foreign fixed income securities. |
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
T. Rowe Price Institutional Emerging Markets Bond Fund
The fund seeks to provide high income and 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) | |
Redemption fee (as a percentage of amount redeemed on shares held for 90 days or less) | 2.00% |
Annual
fund operating expenses | |
Management fees | 0.70% |
Other expenses | 0.00% |
Total annual fund operating expenses | 0.70% |
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 |
$72 | $224 | $390 | $871 |
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 49.9% of the average value of its portfolio.
Investments, Risks, and Performance
Principal Investment Strategies The fund will normally invest at least 80% (and potentially all) of its net assets (including any borrowings for investment purposes) in
T. Rowe Price | 2 |
debt securities of emerging market governments or companies located in emerging market countries. Fund holdings may be denominated in U.S. dollars or non-U.S. dollar currencies, including emerging market currencies. The extent, if any, to which the fund attempts to cushion the impact of foreign currency fluctuations on the dollar depends on market conditions. Fund holdings may include the lowest-rated bonds, including those in default, and there are no overall limits on the funds investments that are rated below investment-grade (junk bonds).
Although we expect to maintain an intermediate- to long-term weighted average maturity for the fund, there are no maturity restrictions on the overall portfolio or on individual securities. Security selection relies heavily on research, which analyzes political and economic trends as well as creditworthiness. The fund allocates investments among a variety of emerging markets (1) in order to establish a diverse portfolio; (2) based on the relative value of opportunities and associated risks within one country versus others; and (3) with a view to the liquidity of each particular market. The fund tends to favor bonds it expects will be upgraded. The fund sells holdings for a variety of reasons, such as to adjust its average maturity or credit quality, to shift assets into and out of higher-yielding securities, or to alter geographic or currency exposure.
The fund is nondiversified, meaning it may invest a greater portion of its assets in fewer issuers than is permissible for a diversified fund.
While most assets will be invested in bonds, the fund may enter into forward currency exchange contracts in keeping with the funds objectives. Forward currency exchange contracts would primarily be used to help protect the funds holdings from unfavorable changes in foreign currency exchange rates, although other currency hedging techniques may be used from time to time.
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 Because the fund may invest in securities issued in foreign currencies, the fund is subject to the risk that it could experience losses based solely on the weakness of foreign currencies versus the U.S. dollar and changes in the exchange rates between such currencies and the U.S. dollar. Any attempts at currency hedging may not be successful and could cause the fund to lose money.
Credit risk This is the risk that an issuer of a debt security or a counterparty to an over-the-counter derivative 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.
Nondiversification risk As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. As a result, poor performance by a single issuer could adversely affect fund performance more than if the fund were invested in a larger number of issuers. The funds share price can be expected to fluctuate more than that of a comparable diversified fund.
Derivatives risk To the extent the fund uses forward currency exchange contracts, it is exposed to greater volatility and losses in comparison to investing directly in foreign bonds. Forward currency exchange contracts are also subject to the risks that anticipated currency movements will not be accurately predicted, a counterparty will fail to perform in accordance with the terms of the agreement, and the chance that
T. Rowe Price | 4 |
potential government regulation could negatively affect the funds investments in such instruments.
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.
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.
Summary | 5 |
Average Annual Total Returns | |||||||||||
|
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| Periods ended |
| |||||||
| December 31, 2011 |
| |||||||||
| Since inception |
| |||||||||
| 1 Year | 5 Years | (11/30/06) |
| |||||||
| Institutional Emerging Markets Bond Fund |
| |||||||||
| Returns before taxes | 2.84 | % | 6.69 | % | 6.88 | % | ||||
| Returns after taxes on distributions | -0.06 |
|
| 3.80 |
|
| 4.03 |
|
| |
| Returns after taxes on distributions |
|
|
|
|
|
|
|
|
| |
| and sale of fund shares | 2.36 |
|
| 4.07 |
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| 4.28 |
|
| |
| J.P. Morgan Emerging Markets Bond Index Global Diversified | 7.35 |
|
| 7.87 |
|
| 7.87 |
|
|
Updated performance information is available through troweprice.com or 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 | 2006 | 1988 |
Purchase and Sale of Fund Shares
The fund generally requires a $1,000,000 minimum initial investment. There is no minimum for subsequent purchases. If you hold shares through a financial intermediary, the 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 by calling 1-800-638-8797 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 a tax-deferred account. A redemption or exchange of fund shares may be taxable.
SUMMARY
T. Rowe Price Institutional International Bond Fund
The fund seeks to provide current income and 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) | |
Redemption fee (as a percentage of amount redeemed on shares held for 90 days or less) | 2.00% |
Annual
fund operating expenses | |
Management fees | 0.55% |
Other expenses | 0.00% |
Total annual fund operating expenses | 0.55% |
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 |
$56 | $176 | $307 | $689 |
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 49.5% of the average value of its portfolio.
Investments, Risks, and Performance
Principal Investment Strategies Normally, the fund will invest at least 80% of its net assets (including any borrowings for investment purposes) in foreign bonds and 50%
Summary | 7 |
of its net assets in foreign bonds that are rated within the three highest credit categories (i.e., A- or equivalent, or better), as determined by at least one nationally recognized credit rating agency or, if unrated, deemed to be of comparable quality by T. Rowe Price. If a bond is split-rated (i.e., assigned different ratings by different credit rating agencies), the higher rating will be used. The fund may invest up to 25% of its total assets in junk bonds that have received a below investment-grade rating (i.e., BB or equivalent, or lower) from each of the rating agencies that has assigned a rating to the bond (or, if unrated, deemed to be below investment-grade quality by T. Rowe Price), including those in default or with the lowest rating. There is no limit on the fund's investments in investment-grade bonds of emerging markets. The fund may use credit default swaps to buy or sell credit protection on individual bond issuers or sectors of the bond markets. If the fund buys protection, it effectively takes a short position, and if the fund sells protection, it effectively takes a long position, with respect to the credit of the company or sector.
Although we expect to maintain an intermediate- to long-term weighted average maturity (between 5 to 15 years) for the fund, there are no maturity restrictions on the overall portfolio or on individual securities. Through the use of futures contracts and interest rate swaps, the fund may either extend or shorten the overall maturity of the fund and take long or short positions in particular bond markets (including the U.S.). The funds overall net short positions in bond markets will not exceed 10% of its net assets. A short position in a bond market means that the fund, for example, could sell interest rate futures with respect to bonds of a particular market and the value of the futures would exceed the value of the bonds held by the fund (or the fund could sell futures with respect to a particular bond market without owning any bonds in that market).
The funds currency positions will vary with its outlook on the strength or weakness of the U.S. dollar compared to foreign currencies and the relative value of various foreign currencies to one another. Through the use of forward foreign exchange contracts and other currency derivatives, such as swaps, options and futures, the fund has wide flexibility to purchase and sell currencies independently of whether the fund owns bonds in those currencies and to engage in currency hedging transactions. Currency hedging into the U.S. dollar is permitted, but not required, and the fund is likely to be heavily exposed to foreign currencies. The funds overall short positions in currencies (including the U.S. dollar) are limited to 10% of its net assets. A short position in a currency means that the fund could sell a currency in excess of its assets denominated in that currency (or the fund might sell a currency even if it doesnt own any assets denominated in the currency).
The fund is nondiversified, meaning it may invest a greater portion of its assets in fewer issuers than is permissible for a diversified fund.
Investment decisions are based on fundamental market factors, such as yield and credit quality differences among bonds as well as supply and demand trends and currency values. The fund generally invests in securities where the combination of
T. Rowe Price | 8 |
fixed-income returns and currency exchange rates appears attractive or, if the currency trend is unfavorable, where we believe the currency risk can be minimized through hedging. The fund sells holdings for a variety of reasons, such as to adjust the portfolios average maturity or credit quality, to shift assets into and out of higher-yielding securities, or to alter geographic or currency exposure.
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.
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 Because the fund generally invests in securities issued in foreign currencies, the fund is subject to the risk that it could experience losses based solely on the weakness of foreign currencies versus the U.S. dollar and changes in the exchange rates between such currencies and the U.S. dollar.
Hedging risk The funds attempts at hedging and taking long and short positions in currencies may not be successful and could cause the fund to lose money or fail to get the benefit of a gain on a hedged position. If expected changes to securities prices, interest rates, currency values and exchange rates, or the creditworthiness of an issuer are not accurately predicted, the fund could be in a worse position than if it had not entered into such transactions.
Credit risk This is the risk that an issuer of a debt security or a counterparty to an over-the-counter derivative could suffer an adverse change in financial condition that
Summary | 9 |
results in a payment default, security downgrade, or inability to meet a financial obligation. The funds overall credit risk is increased to the extent the fund invests in emerging markets bonds or bonds rated below investment-grade. Such investments carry a higher risk of default and should be considered speculative.
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.
Nondiversification risk As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. As a result, poor performance by a single issuer could adversely affect fund performance more than if the fund were invested in a larger number of issuers. The funds share price can be expected to fluctuate more than that of a comparable diversified fund.
Derivatives risk To the extent the fund uses forward currency exchange contracts, swaps, options, or futures, it is exposed to additional volatility in comparison to investing directly in bonds and other debt securities. These instruments can be illiquid and difficult to value, may involve leverage so that small changes produce disproportionate losses for the fund, and instruments not traded on an exchange are subject to the risk that a counterparty to the transaction will fail to meet its obligations under the derivatives contract. The funds principal use of derivatives involves the risk that anticipated changes in currency values, currency exchange rates, interest rates, or the creditworthiness of an issuer will not be accurately predicted, which could significantly harm the funds performance, and the chance that regulatory developments could negatively affect the funds investments in such instruments.
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 | 10 |
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, 2011 |
| ||||||
| Since inception |
| ||||||
| 1 Year | (5/31/07) |
| |||||
| Institutional International Bond Fund |
| ||||||
| Returns before taxes | 1.95 | % | 5.73 | % | |||
| Returns after taxes on distributions | -0.92 |
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| 3.29 |
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| |
| Returns after taxes on distributions |
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|
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| and sale of fund shares | 1.27 |
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| 3.48 |
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| |
| Barclays Global Aggregate ex USD Bond Index | 4.36 |
|
| 6.89 |
|
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| Lipper International Income Funds Average | 2.97 |
|
| 6.54 |
|
|
Updated performance information is available through troweprice.com or may be obtained by calling 1-800-638-8790.
Management
Investment Adviser T. Rowe Price Associates, Inc. (T. Rowe Price)
Summary | 11 |
Investment Sub-adviser T. Rowe Price International Ltd (T. Rowe Price International)
Portfolio Manager | Title | Managed Fund Since | Joined Investment |
Ian D. Kelson | Chairman of Investment Advisory Committee | 2007 | 2000 |
Purchase and Sale of Fund Shares
The fund generally requires a $1,000,000 minimum initial investment. There is no minimum for subsequent purchases. If you hold shares through a financial intermediary, the 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 by calling 1-800-638-8797 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 a tax-deferred account. A redemption or exchange of fund shares may be taxable.
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 all Institutional Funds in 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. 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
Information About Accounts in T. Rowe Price Funds | 13 |
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.
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.
T. Rowe Price | 14 |
How You Can Receive the Proceeds From a Sale
When filling out the New Account form, you may wish to give your organization 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.
Exception: Under certain circumstances, and when deemed to be in a funds best interests, your proceeds may not be sent for up to seven calendar days after we receive your redemption request in good order.
If for some reason we cannot accept your request to sell shares, we will attempt to 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 Institutional Funds With Redemption Fees | ||
Fund | Redemption fee | Holding period |
Institutional Africa & Middle East | 2% | 90 days or less |
Institutional Emerging Markets Bond | 2% | 90 days or less |
Institutional Emerging Markets Equity | 2% | 90 days or less |
Institutional Floating Rate | 2% | 90 days or less |
Institutional Foreign Equity | 2% | 90 days or less |
Institutional Global Equity | 2% | 90 days or less |
Institutional Global Large-Cap Equity | 2% | 90 days or less |
Institutional High Yield | 2% | 90 days or less |
Institutional International Bond | 2% | 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
Information About Accounts in T. Rowe Price Funds | 15 |
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.
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. A redemption fee will be charged on shares sold on or before the end of the required holding period. The day after the date of your purchase is considered Day 1 for purposes of computing the 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 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, a 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 on your New Account form. 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 |
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. |
Stock funds | · Must be a shareholder on the dividend record date. · Declared and paid annually, if any, generally in December. |
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 a specified date that month. If a second distribution is necessary, it is paid the following year.
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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.
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 bond 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 bond funds is expected to qualify for this deduction.
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. This information is not reported to the Internal Revenue Service. You may calculate the cost basis using other methods acceptable to the Internal Revenue Service, such as specific identification.
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For mutual fund shares acquired after 2011, new tax regulations require us to report the cost basis information to most taxable shareholders and the Internal Revenue Service on Form 1099-B using a cost basis method selected by the shareholder 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 any 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 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.
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. 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.
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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.
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 Consequences of Shareholder Turnover
If the funds portfolio transactions result in a net capital loss (i.e., an excess of capital losses over capital gains) for any year, the loss may be carried forward and used to offset future realized capital gains. However, its ability to carry forward such losses will be limited if the fund experiences an ownership change within the meaning of the Internal Revenue Code. An ownership change generally results when shareholders owning 5% or more of the fund increase their aggregate holdings by more than 50 percentage points over a three-year period.
Because institutional funds may have only a few large shareholders, an ownership change can occur in the normal course of shareholder purchases and redemptions. The fund undertakes no obligation to avoid or prevent an ownership change. Moreover, because of circumstances beyond the funds control, there can be no assurance that the fund will not experience, or has not already experienced, an ownership change. An ownership change can reduce the funds ability to offset capital gains with losses, and as a result, increase the amount of taxable gains that could be distributed to shareholders.
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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 Purchases of a fund may be canceled if payment is not received in a timely manner, and the shareholder may be responsible for any losses or expenses incurred by the fund or its 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.
Large Sale (Redemption) Conditions 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.
We also request that you give us three business days notice for any redemption of $2 million or more.
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.
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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 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 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.
Information About Accounts in T. Rowe Price Funds | 23 |
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 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.
T. Rowe Price | 24 |
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
To keep operating expenses lower, we ask you to maintain an account balance of at least $1 million. If your investment is below $1 million, 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.
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;
· 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.
More About the Funds | 3 | |
How are the funds organized?
T. Rowe Price Institutional International Funds, Inc. (the corporation) was incorporated in Maryland in 1989. Currently, the corporation consists of nine series, each representing a separate pool of assets with different objectives and investment policies. Each fund is an open-end management investment company, or mutual fund. Mutual funds pool money received from shareholders 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 funds?
General Oversight
Each 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 (the Firm).
All decisions regarding the purchase and sale of fund investments are made by T. Rowe Price or an affiliated investment adviserspecifically by the funds portfolio managers.
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Investment Adviser
T. Rowe Price is each funds investment adviser and oversees the selection of each funds investments and management of each 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, the Firm managed approximately $489 billion for more than 11 million individual and institutional investor accounts.
With respect to the International Bond Fund, T. Rowe Price has entered into a sub-advisory agreement with T. Rowe Price International under which T. Rowe Price International is authorized to trade securities and make discretionary investment decisions on behalf of the fund. T. Rowe Price International is an investment adviser registered or licensed with the SEC, United Kingdom Financial Services Authority, Financial Services Agency of Japan, and other non-U.S. regulatory authorities. T. Rowe Price International sponsors and serves as adviser to foreign collective investment schemes and provides investment management services to investment companies and other institutional investors. T. Rowe Price International is headquartered in London and has several branch offices around the world. T. Rowe Price International is a direct subsidiary of T. Rowe Price and its address is 60 Queen Victoria Street, London EC4N 4TZ, United Kingdom. T. Rowe Price may pay T. Rowe Price International up to 60% of the management fee that T. Rowe Price receives from the International Bond Fund.
Portfolio Management
T. Rowe Price has established an Investment Advisory Committee with respect to each fund. The committee chairman has day-to-day responsibility for managing the funds portfolio and works with the committee in developing and executing each funds investment program. The members of each advisory committee are listed below, along with information that describes the chairmans experience during the past five years and provides the year that the chairman first joined the Firm. The Statement of Additional Information provides additional information about the portfolio managers compensation, other accounts managed by the portfolio managers, and the portfolio managers ownership of fund shares.
Emerging Markets Bond Fund Michael J. Conelius, Chairman, Roy Adkins, Carolyn Hoi Che Chu, Bridget A. Ebner, Andrew J. Keirle, Ian D. Kelson, Christopher J. Kushlis, Christopher C. Loop, Michael D. Oh, and Christopher J. Rothery. Mr. Conelius has been chairman of the committee since the funds inception in 2006. 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.
More About the Funds | 27 |
International Bond Fund Ian D. Kelson, Chairman, Brian J. Brennan, Michael J. Conelius, Michael Della Vedova, Andrew J. Keirle, Kenneth Antony Orchard, Christopher J. Rothery, David Stanley, Ju Yen Tan, and J. Howard Woodward. Mr. Kelson has been chairman of the committee since the funds inception in 2007. He joined the Firm in 2000 and his investment experience dates from 1981. He has served as a portfolio manager with the Firm throughout the past five years.
The Management Fee
Each fund pays the investment adviser an annual all-inclusive management fee of 0.70% (Emerging Markets Bond) and 0.55% (International Bond) based on the funds average daily net assets. The management fee is calculated and accrued daily and it includes investment management services and ordinary recurring operating expenses, but does not cover interest, taxes, brokerage, or nonrecurring extraordinary items.
A discussion about the factors considered by the Board and its conclusions in approving each funds investment management contract with T. Rowe Price appears in each funds semiannual report to shareholders for the period ended June 30.
For purposes of determining whether a particular country is considered a developed market or an emerging market, the funds use the designation set forth by MSCI Barra, a third-party provider of benchmark indexes and data services for institutions worldwide. For purposes of determining whether a fund invests at least 80% of its net assets in a particular type of security, the funds use the country assigned to the security by MSCI Barra or another unaffiliated third-party data provider.
While the International Bond Fund focuses its investments in non-U.S. dollar-denominated, investment-grade bonds of issuers in developed markets, the Emerging Markets Bond Fund focuses its investments on issuers in emerging markets. The Emerging Markets Bond Fund has wide flexibility to choose among bonds issued in local currencies or the U.S. dollar, and to choose among corporate and sovereign issuers. Investments in bonds issued in foreign currencies may afford investors a potential hedge against weakness in the U.S. dollar, although investments by the International Bond Fund will be significantly affected by changes in the exchange rates between the U.S. dollar and the currencies in which the funds holdings are denominated and traded.
The funds ordinarily invest in the securities of at least three countries; however, they may invest in the securities of one country, including the U.S., for temporary defensive purposes.
The funds may enter into forward currency exchange contracts in an effort to hedge against an expected decline in the value of currencies in which its portfolio holdings
T. Rowe Price | 28 |
are denominated, to increase exposure to a particular foreign currency or to shift the funds foreign currency exposure from one country to another, or to enhance the funds returns.
The International Bond Fund may also enter into other currency derivative instruments, such as currency swaps, foreign currency options, and currency futures, in an effort to take advantage of currencies that are expected to appreciate in value. The fund may also use swaps for a variety of reasons, such as to manage exposure to changes in interest rates or credit quality and to adjust portfolio duration or credit exposure, as well as to enhance total return or protect the value of portfolio securities. Futures contracts may be used as an efficient means of adjusting exposure to all or part of a target market and for various other purposes such as managing exposure to interest rate and yield curve movements, enhancing income, and serving as a cash management tool.
Funds that invest overseas generally carry more risk than funds that invest strictly in U.S. assets.
The risk profiles of the funds vary with the maturity and credit quality of bonds they purchase, their degree of currency exposure, whether they invest in developed markets, emerging markets, or both, and the extent to which the International Bond Fund takes long or short positions in bond markets and currencies.
As with any mutual fund, there is no guarantee the funds will achieve their objectives. The funds share price fluctuates, which means you could lose money in the funds. Some particular risks affecting the funds 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. It also includes the risk that the International Bond Funds short positions in currencies will not perform as anticipated. The overall impact on a funds holdings can be significant 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. Because the International Bond Fund is normally heavily exposed to foreign currencies, changes in currency exchange rates are likely to have a significant effect on the funds performance. Currency trends are unpredictable, and to the extent each 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
More About the Funds | 29 |
accounting standards, uncertain tax laws, and higher transaction costs of non-U.S. markets. Investments outside the U.S. 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.
Emerging market risk The funds investments in emerging markets 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 risk that an issuer of a debt security or counterparty to an over-the-counter derivative 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.
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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 markets governments and corporations have in the past defaulted on payment of interest and principal on 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 and notes 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 funds expect to maintain an intermediate- to long-term weighted average maturity, they carry 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.
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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.
Short positions (International Bond Fund) If the fund takes a short position in a particular currency or bond market, it will lose money if the currency or bond market appreciates in value. Losses could be significant.
Nondiversification risk Because each fund is nondiversified, the fund can invest more of its assets in a smaller number of issuers than diversified funds. Concentrating investments could result in greater potential losses than for funds investing in a broader variety of issuers.
Derivatives risk To the extent each fund uses forward currency exchange contracts, it is exposed to additional volatility and losses in excess of the funds initial investment, the risk that anticipated currency movements will not be accurately predicted, and the risk that the other party to the transaction will not fulfill its contractual obligation. If currency values and exchange rates move in a direction not predicted by the investment adviser, the fund could be in a worse position than if it had not entered into such transactions. If the funds foreign currency transactions are intended to hedge the currency risk associated with investing in foreign securities and minimize the risk of loss that would result from a decline in the value of the hedged currency, these transactions also may limit any potential gain that might result should the value of such currency increase.
To the extent the International Bond Fund invests in futures, swaps, or options, it is similarly exposed to additional volatility and losses greater than direct investments in the contracts underlying assets, and the risk that anticipated currency movements will not be accurately predicted.
Any efforts at buying or selling currencies could result in significant losses for a fund and, if the fund takes a short position in a particular currency, it will lose money if the currency appreciates in value. Further, if the funds foreign currency transactions are intended to hedge the currency risk associated with investing in foreign securities and minimize the risk of loss that would result from a decline in the value of the hedged currency, these transactions also may limit any potential gain that might result should the value of such currency increase.
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
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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. The extent and impact of new regulations are not certain at this time. 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.
Efforts to reduce risk Consistent with each 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.
· 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.
· Management of the impact of foreign currency changes on the funds portfolio.
Other strategies may be employed that are not considered part of a funds principal investment strategies. For instance, the Emerging Markets Bond Fund may also invest, to a limited extent, in futures and swaps. Investments in futures would primarily be used to manage interest rate exposure or as a tool to help manage cash flows into and out of the fund. Investments in swaps would typically serve to manage the funds exposure to changes in interest rates or credit quality, or to protect the value of certain portfolio holdings. To the extent the fund invests in futures and swaps, it could be exposed to potential volatility and losses greater than direct investments in the contracts underlying assets, and the risk that changes in interest rate movements or the creditworthiness of an issuer will not be accurately predicted. From time to time, either fund may invest in securities other than bonds, such as convertible securities and loan participations and assignments, and use other derivatives that are consistent with its investment program.
The Statement of Additional Information contains more detailed information about each 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
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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 net assets in 1) foreign bonds (International Bond) and 2) bonds of issuers in emerging markets countries (Emerging Markets Bond).
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.
Portfolio managers have considerable discretion in choosing investment strategies and selecting securities they believe will help achieve fund objectives.
Nondiversified Status
Each fund is registered as a nondiversified mutual fund. Therefore, each fund is able to invest more than 5% of its assets in the securities of individual foreign governments and may invest a greater portion of its assets in a single issuer than a diversified fund.. Since each fund is a nondiversified investment company and is permitted to invest a greater proportion of its assets in the securities of a smaller number of issuers, the funds may be subject to greater credit risk with respect to their portfolio securities and greater volatility with respect to their share prices than an investment company that is more broadly diversified. Each fund generally will not invest more than 5% of its assets in any individual corporate issuer, provided that (1) the fund may place assets in bank deposits or other short-term bank instruments
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with a maturity of up to 30 days provided that (a) the bank has a short-term credit rating of A1+ (or, if unrated, the equivalent as determined by T. Rowe Price or T. Rowe Price International) and (b) a fund will not maintain more than 10% of its total assets with any single bank; and (2) a fund may maintain more than 5% of its total assets, including cash and currencies, in custodial accounts or deposits of the funds custodian or sub-custodians
However, each fund intends to qualify as a regulated investment company for purposes of the Internal Revenue Code. This requires each fund to limit its investments so that, at the end of each fiscal quarter, with respect to 50% of its total assets, no more than 5% of its assets is invested in the securities of a single issuer, and not more than 10% of the voting securities of any issuer are held by each fund. With respect to the remaining 50% of fund assets, no more than 25% may be invested in a single issuer.
Concentration of Investments (Emerging Markets Bond Fund) From time to time, the fund may invest more than 25% of its total assets in the securities of foreign governmental and corporate entities located in the same country. However, the fund will not invest more than 25% of its total assets in the securities any single foreign governmental issuer or in two or more such issuers subject to a common, explicit guarantee.
Types of Portfolio Securities
In seeking to meet their investment objectives, 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 their investment programs. The following pages describe various types of fund holdings and investment management practices.
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 International Bond Fund will only purchase non-U.S. dollar-denominated bonds (other than Brady and other emerging market bonds). The funds may from time to time purchase securities on a when-issued basis, invest in repurchase agreements, and purchase bonds convertible into equities.
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The Emerging Markets Bond Fund may also invest in: such dollar-denominated fixed-income securities as (1) debt obligations issued or guaranteed by the U.S. government or its agencies or instrumentalities; (2) domestic corporate debt securities; (3) domestic commercial paper, including commercial paper indexed to certain specific foreign currency exchange rates; (4) debt obligations of domestic banks and bank holding companies; and (5) collateralized mortgage obligations or asset-backed bonds.
Brady Bonds Brady bonds, named after former U.S. Secretary of the Treasury Nicholas Brady, are used as a means of restructuring the external debt burden of a government in certain emerging markets. A Brady bond is created when an outstanding commercial bank loan to a government or private entity is exchanged for a new bond in connection with a debt restructuring plan. Brady bonds may be collateralized or uncollateralized and issued in various currencies (although typically in the U.S. dollar). They are often fully collateralized as to principal in U.S. Treasury zero coupon bonds. However, even with this collateralization feature, Brady bonds are often considered speculative, below investment-grade investments because the timely payment of interest is the responsibility of the issuing party (for example, a Latin American country) and the value of the bonds can fluctuate significantly based on the issuers ability or perceived ability to make these payments. Finally, some Brady bonds may be structured with floating rate or low fixed-rate coupons.
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 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 policies The International Bond Fund may invest up to 20% of total assets in below investment-grade (junk) bonds and there is no limit on the Emerging Markets Bond Funds investments in securities that are rate below investment-grade.
While each 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
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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 policies The International Bond Fund may invest up to 5% of total assets, and the Emerging Markets Bond Fund may invest up to 10% 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 funds do not expect to directly purchase common stocks. Any shares of common stock that are received through a 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. Each fund could participate in such syndicates, or could buy part of a loan, becoming a direct lender. Each fund may acquire loans as an assignment from another lender that
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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 funds may also make investments in a company through the purchase or execution of a privately negotiated note representing the equivalent of a loan.
Operating policies The International Bond Fund may not invest more than 5% of total assets and the Emerging Markets Bond Fund may not invest more than 20% 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 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 certain markets; in an effort to enhance income; to protect the value of portfolio securities; and to serve as a cash
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management tool. Call or put options may be purchased or sold on securities, futures, financial indexes, and foreign currencies.
Futures contracts and options may not always be successful hedges; their prices can be highly volatile; using them could lower a funds 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 indexes. 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 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
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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.
Hybrid Instruments These instruments (a type of potentially high-risk derivative) can combine the characteristics of securities, futures, and options. For example, the principal amount or interest rate of a hybrid could be tied (positively or negatively) to the price of some commodity, currency, securities, or securities index or another interest rate (each a benchmark). Hybrids can be used as an efficient means of pursuing a variety of investment goals, including currency hedging, and increased total return. Hybrids may or may not bear interest or pay dividends. The value of a hybrid or its interest rate may be a multiple of a benchmark and, as a result, may be leveraged and move (up or down) more steeply and rapidly than the benchmark. These benchmarks may be sensitive to economic and political events, such as commodity shortages and currency devaluations, which cannot be readily foreseen by the purchaser of a hybrid. Under certain conditions, the redemption value of a hybrid could be zero. Thus, an investment in a hybrid may entail significant market risks that are not associated with a similar investment in a traditional, U.S. dollar-denominated bond that has a fixed principal amount and pays a fixed rate or floating rate of interest. The purchase of hybrids also exposes the funds to the credit risk of the issuer of the hybrid. These risks may cause significant fluctuations in the net asset value of the funds.
Hybrids can have volatile prices and limited liquidity, and their use may not be successful.
Operating policy Fund investments in hybrid instruments are limited to 10% of total assets.
Currency Derivatives Each 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.
Each 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 funds may invest in foreign
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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 funds 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 denominated. However, the fund is not required to own any securities in the particular currency being purchased or sold.
Operating policy There is no limit on the amount of International Bond Funds assets that may be involved in cross-hedging.
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
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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 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.
A fund may also invest in certain other T. Rowe Price funds as a means of gaining efficient and cost-effective exposure to certain asset classes, provided the investment is consistent with the funds investment program and policies. Such an investment could allow the fund to obtain the benefits of a more diversified portfolio than might otherwise be available through direct investments in the asset class, and will subject the fund to the risks associated with the particular asset class. Examples of asset
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classes in which other T. Rowe Price mutual funds concentrate their investments include high yield bonds, floating rate loans, international bonds, emerging market bonds, and emerging market stocks. If the fund invests in another T. Rowe Price fund, the management fee paid by the fund will be reduced to ensure that the fund does not incur duplicate management fees as a result of its investment.
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 (which does not charge any management fees); 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 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 they purchase
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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 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.
T. Rowe Price | 44 |
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. The funds portfolio turnover rates are shown in the Financial Highlights table.
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
More About the Funds | 45 |
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.
The Financial Highlights table, which provides information about each funds financial history, is based on a single share outstanding throughout the periods shown. Each funds section of the table is part of the funds financial statements, which are included in its annual report and are incorporated by reference into the Statement of Additional Information (available upon request). The total returns in the table represent the rate that an investor would have earned or lost on an investment in the fund (assuming reinvestment of all dividends and distributions and no payment of any applicable account or redemption fees). The financial statements in the annual reports were audited by the funds independent registered public accounting firm, PricewaterhouseCoopers LLP.
T. Rowe Price | 46 |
Financial Highlights
Year ended December 31 | ||||||||||
Emerging Markets Bond Fund | 2007 | 2008 | 2009 | 2010 | 2011 | |||||
Net asset value, | $10.09 | $9.85 | $7.44 | $9.24 | $9.59 | |||||
Income From Investment Operations | ||||||||||
Net investment income* | 0.74 | 0.78 | 0.72 | 0.68 | 0.64 | |||||
Net gains or losses on | (0.24 | ) | (2.41 | ) | 1.82 | 0.59 | (0.37 | ) | ||
Total from investment | 0.50 | (1.63 | ) | 2.54 | 1.27 | 0.27 | ||||
Less Distributions | ||||||||||
Dividends
(from net | (0.55 | ) | (0.78 | ) | (0.72 | ) | (0.68 | ) | (0.65 | ) |
Distributions (from | (0.01 | ) | | | (0.24 | ) | (0.26 | ) | ||
Returns of capital | (0.18 | ) | | (0.02 | ) | | | |||
Total distributions | (0.74 | ) | (0.78 | ) | (0.74 | ) | (0.92 | ) | (0.91 | ) |
Net asset value, | $9.85 | $7.44 | $9.24 | $9.59 | $8.95 | |||||
Total return | 5.15 | % | (17.48 | )% | 35.63 | % | 14.23 | % | 2.84 | % |
Ratios/Supplemental Data | ||||||||||
Net assets,
end of period | $28,255 | $21,516 | $169,001 | $188,978 | $210,064 | |||||
Ratio of
expenses to | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % |
Ratio of net income to | 7.50 | % | 8.60 | % | 8.17 | % | 7.10 | % | 6.83 | % |
Portfolio turnover rate | 83.8 | % | 116.5 | % | 31.3 | % | 57.6 | % | 49.9 | % |
* Per share amounts calculated using average shares outstanding method.
More About the Funds | 47 |
Financial Highlights
5/31/07* | Year ended December 31 | |||||||||
International Bond Fund | 2008 | 2009 | 2010 | 2011 | ||||||
Net asset value, | $10.00 | $10.56 | $9.74 | $10.10 | $10.11 | |||||
Income From Investment Operations | ||||||||||
Net investment incomea | 0.26 | 0.47 | 0.30 | 0.27 | 0.33 | |||||
Net gains
or losses on | 0.66 | (0.32 | ) | 0.52 | 0.24 | (0.13 | ) | |||
Total from investment | 0.92 | 0.15 | 0.82 | 0.51 | 0.20 | |||||
Less Distributions | ||||||||||
Dividends
(from net | (0.26 | ) | (0.47 | ) | (0.31 | ) | (0.27 | ) | (0.33 | ) |
Distributions (from | (0.10 | ) | (0.50 | ) | (0.15 | ) | (0.23 | ) | (0.49 | ) |
Returns of capital | | | | | | |||||
Total distributions | (0.36 | ) | (0.97 | ) | (0.46 | ) | (0.50 | ) | (0.82 | ) |
Net asset
value, | $10.56 | $9.74 | $10.10 | $10.11 | $9.49 | |||||
Total return | 9.31 | % | 1.26 | % | 8.77 | % | 5.19 | % | 1.95 | % |
Ratios/Supplemental Data | ||||||||||
Net assets,
end of period | $72,985 | $53,347 | $126,561 | $251,285 | $155,878 | |||||
Ratio of expenses to | 0.55 | %b | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % |
Ratio of net income to | 4.32 | %b | 4.46 | % | 3.10 | % | 2.67 | % | 3.18 | % |
Portfolio turnover rate | 69.3 | %b | 93.6 | % | 68.6 | % | 82.2 | % | 49.5 | % |
* Inception date.
a Per share amounts calculated using average shares outstanding method.
b Annualized.
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 | We must have your correct tax 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. Always verify your transactions by carefully reviewing the confirmation we send you. Please report any discrepancies to Financial Institution Services promptly by calling 1-800-638-8797. | |
$1,000,000 minimum initial investment | ||
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. When you open an account for an entity, you will be required to provide the entitys name, street address, and tax identification number as well as your name, residential street address, date of birth, and Social Security number as the person opening the account on behalf of the entity. Corporate and other institutional accounts require documents showing the existence of the entity (such as articles of incorporation or partnership agreements) to open an |
Investing With T. Rowe Price | 49 |
|
| 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 Financial Institution Services. We will use this information to verify the identity of the entity and person opening the account. We will not be able to open the account for the entity until we receive all of this information. If we are unable to verify the identity of the entity, we are authorized to take any action permitted by law. (See Rights Reserved by the Funds.) Note: Shares may generally only be purchased and held by institutional investors with a U.S. address. Institutional investors typically include banks, pension plans, and trust and investment companies. T. Rowe Price will not generally authorize the transfer of ownership from an institutional to a noninstitutional account. Shares held by noninstitutional accounts are subject to involuntary redemption at any time. All initial and subsequent investments must be made by bank 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. |
By Wire | Call Financial Institution Services at 1-800-638-8797 for an account number, assignment to a dedicated service representative, and wire transfer instructions. |
In order to obtain an account number, you must supply the name, Social Security or employer identification number, and business street address for the account. |
Complete a New Account form and mail it, with proper documentation identifying your firm, to one of the appropriate T. Rowe Price addresses listed under By Mail. | ||
T. Rowe Price | 50 |
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. | ||
No minimum for additional purchases | ||
By Wire | Access troweprice.com or call Shareholder Services for wire transfer instructions. |
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. 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 to your bank, or wired to your bank (provided your bank information is already on file). For charges, see Electronic TransfersBy Wire under Information About Your Services. 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, we will redeem all shares from your account. |
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. | ||
Investing With T. Rowe Price | 51 |
For redemptions by electronic transfer, please see Information About Your Services. |
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 the appropriate address below to avoid a delay in processing your transaction: via U.S. Postal Service via private carriers/overnight services | |
| 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 |
T. Rowe Price | 52 |
|
| 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. |
Financial Institution
Services | 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 institutions and large and small businesses, including: SEP-IRAs, SIMPLE IRAs, 401(k)s, and 403(b)(7)s. For information on these retirement plans, please call our Trust Company at 1-800-492-7670. | |
Telephone Services | Buy, sell, or exchange shares by calling one of our service representatives. | |
Electronic Transfers | Electronic transfers can be conducted via bank wire. There may be a $5 fee for wire redemptions under $5,000, and your bank may charge for incoming or outgoing wire transfers regardless of size. |
For information Financial Institution Services A Statement of Additional Information for the T. Rowe Price family of funds, which includes additional information about the 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 1-800-638-8797. These documents 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 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. |
1940 Act File No. 811-5833 | C101-040 5/1/12 |
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 1, 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)
C00-042 5/1/12
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 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)
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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 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.
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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.
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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 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 |
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 |
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Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
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 |
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 |
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Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
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 |
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 |
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Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
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 |
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 |
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Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
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 |
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 |
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Fund | Fund Category | Fiscal Year End | Annual Report Date | Semiannual Report Date | Prospectus Date |
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 currently 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 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
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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 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.
13
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 136 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 136 portfolios | Retired | None |
Anthony W. Deering 1945 136 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 136 portfolios | Principal, EuroCapital Partners, LLC, an acquisition and management advisory firm (1995 to present) | None |
Karen N. Horn 1943 136 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 136 portfolios | President, A&R Development Corporation (1977 to present) | None |
John G. Schreiber 1946 136 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 136 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.
Effective May 2, 2012, Robert J. Gerrard, Jr. and Cecelia E. Rouse will be added as independent directors to the Board of each Price Fund (other than the domestic fixed income Price Funds) and will serve as members of an Advisory Board that will be established with respect to the domestic fixed income Price Funds. Advisory Board members will serve in a consultative capacity to the Board of each of the domestic fixed income Price Funds and, in doing so, will participate in Board discussions and review Board materials relating to the domestic fixed income Price Funds. Advisory Board members will be paid the same compensation as the domestic fixed income Price Funds independent directors. However, Advisory Board members will not be eligible to vote on any matter presented to the Boards of the domestic fixed income Price Funds and will have no power to act on behalf of or bind the Board or any committee of the Board.
Mr. Gerrard was born in 1952 and Dr. Rouse was born in 1963. Beginning May 2, 2012, each will serve as an independent director for 90 Price Funds and serve as an Advisory Board member for 46 Price Funds. Mr. Gerrard has substantial experience in the industries relating to communications and interactive data services and Dr. Rouse has extensive experience in the fields of education and economic research. Mr. Gerrard and Dr. Rouse will bring diverse perspectives to the Boards and are well-suited to serve as members of the Board of each Price Fund (other than the domestic fixed income Price Funds) and the domestic fixed income Price Funds Advisory Board.
Mr. Gerrards principal occupations during the past five years are as follows: Chairman of Compensation Committee, Syniverse Holdings, Inc. (2008-2011); Executive Vice President and General Counsel, Scripps Networks, LLC (1997-2009); and Advisory Board member, Pipeline Crisis/Winning Strategies (1997 to present).
Mr. Gerrards directorships of public companies and other investment companies during the past five years are as follows: Syniverse Holdings, Inc. (2008-2011).
Dr. Rouses principal occupations during the past five years are as follows: Professor and Researcher, Princeton University (1992 to present); Director, MDRC (2011 to present); Member of National Academy of Education (2010 to present); Research Associate, National Bureau of Economic Researchs Labor Studies Program (1998-2009 and 2011 to present); Member of Presidents Council of Economic Advisors (2009-2011); Member of The MacArthur Foundation Network on the Transition to Adulthood and Public Policy (2000-2008); Member of National Advisory Committee for the Robert Wood Johnson Foundations Scholars in Health Policy Research Program (2008); Member of and Director, National Economic Association (2006-2008); Member of Association of Public Policy Analysis and Management Policy Council (2006-2008); Member of Hamilton Projects Advisory Board at The Brookings Institute (2006-2008); and Chair of Committee on the Status of Minority Groups in the Economic Profession, American Economic Association (2006-2008).
While Dr. Rouse has served as director of certain non-profit entities, she has not served as a director of any public companies or other investment companies during the past five years.
15
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 136 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 |
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 |
16
Name, Year of Birth, and Number | Principal
Occupation(s) | Directorships |
Brian C. Rogers; CFA, CIC 1955 74 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 |
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 |
17
Independent Directors | |||||||||
Fund/Corporation/Trust | Number of portfolios | Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek |
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 | 17 | 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 |
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 |
18
Independent Directors | |||||||||
Fund/Corporation/Trust | Number of portfolios | Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek |
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 | |
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 |
19
Inside Directors | |||||
Fund/Corporation/Trust | Number of portfolios | Bernard | Gitlin | Laporte | Rogers |
International | 17 | 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 | | |
U.S. Large-Cap Core | 1 | 2009 | | | 2009 |
U.S. Treasury | 3 | 2006 | 2010 | | |
Value | 1 | 2006 | | | 2006 |
20
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 Wyatt A. Lee 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 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 Ashley R. Woodruff (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 |
21
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 Kathryn A. Floyd Jared S. Franz Alan D. Levenson Samy B. Muaddi Linda A. Murphy Douglas D. Spratley Timothy G. Taylor Edward A. Wiese 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 Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
Capital Appreciation | David R. Giroux Ryan N. Burgess Mark S. Finn Paul D. Greene II Steven D. Krichbaum 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 Peter J. Bates Christopher W. Carlson Ann M. Holcomb Jennifer Martin 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 |
22
Fund | Name | Position Held |
Corporate Income | David A. Tiberii Steve Boothe Steven G. Brooks Michael J. Grogan Paul A. Karpers Michael Lambe Alan D. Levenson Michael J. McGonigle Samy B. Muaddi Alexander S. Obaza Miso Park Vernon A. Reid, Jr. Theodore E. Robson Brian M. Ropp Kimberly A Stokes Robert D. Thomas Lauren T. Wagandt Edward A. Wiese Thea N. Williams J. Howard Woodward Zhen Xia (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 Vice President Vice President Vice President Vice President Vice President Vice President Vice President Assistant 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 Prashant Jeyaganesh 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 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. Jeffrey Rottinghaus 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 Vice President |
23
Fund | Name | Position Held |
Equity Income | Brian C. Rogers Andrew M. Brooks Mark S. Finn Jon M. Friar David R. Giroux Paul D. Greene II Thomas J. Huber John D. Linehan 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 |
Financial Services | Eric L. Veiel Stephen M. Finamore Christopher T. Fortune Jon M. Friar Nina P. Jones Yoichiro Kai Ian C. McDonald Michael J. McGonigle Kathryn M. Mongelli Jason B. Polun Frederick A. Rizzo Francisco Sersale Matthew J. Snowling 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 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 Brian A. Rubin Walter P. Stuart III Thomas E. Tewksbury Thea N. Williams (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 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 Viral Patel 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 Vice President |
24
Fund | Name | Position Held |
Global Technology | Joshua K. Spencer Kennard W. Allen Christopher W. Carlson David J. Eiswert Henry M. Ellenbogen Robert N. Gensler Paul D. Greene II Rhett K. Hunter Daniel Martino Tobias F. Mueller Hiroaki Owaki 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 Vice President |
GNMA | Andrew C. McCormick Stephen L. Bartolini Brian J. Brennan Christopher P. Brown Keir R. Joyce Martin G. Lee Alan D. Levenson John D. Wells (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
Growth & Income | Thomas J. Huber G. Mark Bussard Shawn T. Driscoll David M. Lee Robert T. Quinn, Jr. Jeffrey Rottinghaus 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 Justin P. White (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 |
25
Fund | Name | Position Held |
Health Sciences | Kris H. Jenner Ziad Bakri 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 Vice President |
High Yield | Mark J. Vaselkiv Jason A. Bauer Andrew M. Brooks Michael F. Connelly Michael Della Vedova Carson R. Dickson Stephen M. Finamore Justin T. Gerbereux Andrew P. Jamison 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 Vice President Vice President Vice President Vice President Vice President Vice President |
Index Trust Equity Index 500 Extended Equity Market Index Total Equity Market Index | E. Frederick Bair Ken D. Uematsu Neil Smith J. Zachary Wood (For remaining officers, refer to the All funds table) | President Executive Vice President Vice President Vice President |
Inflation Focused Bond | Daniel O. Shackelford Brian J. Brennan Steven G. Brooks Jerome A. Clark Bridget A. Ebner Michael J. Grogan Geoffrey M. Hardin Charles B. Hill Keir R. Joyce Wyatt A. Lee Andrew C. McCormick Cheryl A. Mickel Vernon A. Reid, Jr. Michael F. Reinartz John D. Wells 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 Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
26
Fund | Name | Position Held |
Inflation Protected Bond | Daniel O. Shackelford Brian J. Brennan Geoffrey M. Hardin Alan D. Levenson Andrew C. McCormick Rebecca Setcavage (For remaining officers, refer to the All funds table) | President Vice President Vice President Vice President 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 |
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 Jeffrey M. Anapolsky Andrew M. Brooks Brian E. Burns Michael J. Conelius Michael F. Connelly Stephen M. Finamore David R. Giroux Steven C. Huber Andrew J. Keirle Ian D. Kelson Andrew C. McCormick Michael J. McGonigle Brian A. Rubin Daniel O. Shackelford Walter P. Stuart III Thomas E. Tewksbury David A. Tiberii Edward A. Wiese Thea N. Williams (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 Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
27
Fund | Name | Position Held |
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 Roy H. Adkins Paulina Amieva Jose Costa Buck Carolyn Hoi Che Chu Michael Della Vedova Richard de los Reyes Bridget A. Ebner David J. Eiswert M. Campbell Gunn Leigh Innes Randal S. Jenneke Kris H. Jenner Yoichiro Kai Christopher J. Kushlis Mark J. Lawrence David M. Lee Christopher C. Loop Anh Lu Daniel Martino Jonathan H.W. Matthews Susanta Mazumdar Michael D. Oh Kenneth A. Orchard Timothy E. Parker Frederick A. Rizzo Sebastian Schrott Robert W. Sharps David Stanley Jonty Starbuck Ju Yen Tan Dean Tenerelli Eric L. Veiel Christopher S. Whitehouse 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 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 |
Fund | Name | Position Held |
28
International Funds Africa & Middle East Emerging Europe Emerging Markets 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 Roy H. Adkins Syed H. Ali Paulina Amieva Peter J. Bates Brian J. Brennan Ryan N. Burgess Tak Yiu Cheng Carolyn Hoi Che Chu Archibald Ciganer Albeniz Michael Della Vedova Richard de los Reyes Jessie Q. Ding Shawn T. Driscoll Bridget A.Ebner David J. Eiswert Henry M. Ellenbogen Melissa C. Gallagher Benjamin Griffiths Randal S. Jenneke Kris H. Jenner Yoichiro Kai Christopher J. Kushlis Mark J. Lawrence David M. Lee Christopher C. Loop 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 Vice President Vice President Vice President Vice President Vice President Vice President |
Fund | Name | Position Held |
29
International Funds (continued) Africa & Middle East Emerging Europe Emerging Markets 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 Michael D. Oh Kenneth A. Orchard Hiroaki Owaki Timothy E. Parker Frederick A. Rizzo Naoto Saito Sebastian Schrott Francisco Sersale Jeneiv Shah Robert W. Sharps John C.A. Sherman Eunbin Song David Stanley Jonty Starbuck Miki Takeyama Ju Yen Tan Sin Dee Tan Mitchell J.K. Todd Eric L. Veiel Verena E. Wachnitz David J. Wallack Hiroshi Watanabe Christopher S. Whitehouse Clive M. Williams J. Howard Woodward 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 Vice President Vice President Vice President Vice President |
International Index Fund International Equity Index | E. Frederick Bair Neil Smith Ken D. Uematsu J. Zachary Wood (For remaining officers, refer to the All funds table) | President Executive 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 Corey Shull 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 Vice President |
30
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 |
31
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 Sheldon Chan 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 Miso Park Vernon A. Reid, Jr. Theodore E. Robson Brian M. Ropp Brian A. Rubin Daniel O. Shackelford David Stanley Kimberly A. Stokes Walter P. Stuart III Ju Yen Tan Thomas E. Tewksbury Robert. D. Thomas Siby Thomas Lauren T. Wagandt 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 Vice President Vice President Vice President Vice President Vice President |
Fund | Name | Position Held |
32
New America Growth | Joseph M. Milano Francisco M. 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 Syed H. Ali Ryan N. Burgess Richard de los Reyes Shawn T. Driscoll Mark S. Finn Shinwoo Kim Jeremy D. Kokemor Steven D. Krichbaum Benjamin D. Landy Ryan Martyn Susanta Mazumdar Heather K. McPherson Craig J. Pennington 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 Vice President Vice President Vice President |
New Horizons | Henry M. Ellenbogen Francisco M. 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 Thomas H. Watson 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 Presdient Vice President Vice President |
33
Fund | Name | Position Held |
New Income | Daniel O. Shackelford Brian J. Brennan Michael J. Grogan Geoffrey J. Hardin Steven C. Huber Alan D. Levenson Andrew C. McCormick Vernon A. Reid, Jr. David A. Tiberii 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 Vice President Vice President 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 Wyatt A. Lee 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 Vice President |
Prime Reserve | Joseph K. Lynagh Steven G. Brooks M. Helena Condez G. Richard Dent Kathryn A. Floyd Jared S.Franz Alan D. Levenson Samy B. Muaddi 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 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 |
34
Fund | Name | Position Held |
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 |
TRP Reserve Investment Funds TRP Government Reserve Investment TRP Reserve Investment | Joseph K. Lynagh Steven G. Brooks M. Helena Condez G. Richard Dent Kathryn A. Floyd Jared S. Franz Alan D. Levenson Samy B. Muaddi Douglas D. Spratley Edward A. Wiese 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 Vice President Vice President Assistant 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 Charles M. Shriver 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 Vice President |
Science & Technology | Kennard W. Allen Brian W.H. Berghuis David J. Eiswert Rhett K. Hunter Daniel Martino Shalin Mody Tobias F. Mueller 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 Vice President |
35
Fund | Name | Position Held |
Short-Term Bond | Edward A. Wiese Brian J. Brennan Steven G. Brooks Bridget A. Ebner Michael J. Grogan Geoffrey M. Hardin Charles B. Hill Keir R. Joyce Andrew C. McCormick Cheryl A. Mickel Vernon A. Reid, Jr. Michael F. Reinartz Daniel O. Shackelford John D. Wells (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 |
Small-Cap Stock | Gregory A. McCrickard Francisco M. Alonso Preston G. Athey Ira W. Carnahan Andrew S. Davis 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 Vice President |
Small-Cap Value | Preston G. Athey Francisco M. Alonso Hugh M. Evans III Christopher T. Fortune Nina P. Jones 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 Vice President Vice President |
Spectrum Funds Spectrum Growth Spectrum Income Spectrum International | Charles M. Shriver 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 Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President |
36
Fund | Name | Position Held |
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 Austin Applegate R. Lee Arnold, Jr. M. Helena Condez Patricia S. Deford G. Richard Dent Charles E. Emrich Kathryn A. Floyd Jared S. Franz Dylan Jones Marcy M. Lash Alan D. Levenson Samy B. Muaddi James M. Murphy Linda A. Murphy Douglas D. Spratley Timothy G. Taylor Edward A. Wiese 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 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 Justin T. Gerbereux Andrew J. Keirle Ian D. Kelson Martin G. Lee Andrew C. McCormick Michael J. McGonigle David Stanley Ju Yen Tan 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 Vice President Vice President Vice President Vice President |
Summit Funds Summit Cash Reserves Summit GNMA | Andrew C. McCormick Joseph K. Lynagh Stephen L. Bartolini Brian J. Brennan Christopher P. Brown M. Helena Condez G. Richard Dent Kathryn A. Floyd Jared S. Franz Keir R. Joyce Martin G. Lee Alan D. Levenson Samy B. Muaddi Douglas D. Spratley Susan G. Troll John D. Wells Edward A. Wiese Chen Shao (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 Vice President Vice President Vice President Vice President Assistant Vice President |
37
Fund | Name | Position Held |
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 Charles E. Emrich Kathryn A. Floyd Jared S. Franz Dylan Jones Marcy M. Lash Alan D. Levenson Samy B. Muaddi James M. Murphy Linda A. Murphy Douglas D. Spratley Timothy G. Taylor Edward A. Wiese 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 Vice President Vice President Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
Tax-Efficient Funds Tax-Efficient Equity | Donald J. Peters Kennard W. Allen Preston G. Athey Ziad Bakri 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 Vice President |
Tax-Exempt Money | Joseph K. Lynagh Steven G. Brooks M. Helena Condez G. Richard Dent Kathryn A. Floyd Jared S. Franz Marcy M. Lash Alan D. Levenson Samy B. Muaddi Douglas D. Spratley Edward A. Wiese 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 Vice President Vice President Vice President Assistant Vice President |
38
Fund | Name | Position Held |
Tax-Free High Yield | James M. Murphy R. Lee Arnold, Jr. M. Helena Condez Patricia S. Deford G. Richard Dent Charles B. Hill Dylan Jones Marcy M. Lash Konstantine B. Mallas Hugh D. McGuirk Linda A. Murphy Timothy G. Taylor Michael K. Sewell Chen Shao (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 Assistant Vice President Assistant Vice President |
Tax-Free Income | Konstantine B. Mallas R. Lee Arnold, Jr. M. Helena Condez Patricia S. Deford G. Richard Dent Charles B. Hill Marcy M. Lash Hugh D. McGuirk James M. Murphy Timothy G. Taylor 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 Vice President Vice President Assistant Vice President Assistant Vice President |
Tax-Free Short-Intermediate | Charles B. Hill M. Helena Condez G. Richard Dent Charles E. Emrich Dylan Jones Marcy M. Lash Joseph K. Lynagh Konstantine B. Mallas Hugh D. McGuirk Timothy G. Taylor Edward A. Wiese 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 Vice President Vice President Vice President Assistant Vice President Assistant Vice President |
U.S. Bond Enhanced Index | Robert M. Larkins Steven C. Huber Martin G. Lee Peter Leiser, Jr. Andrew C. McCormick Brian M. Ropp Daniel O. Shackelford David A. Tiberii Zhen Xia (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 |
39
Fund | Name | Position Held |
U.S. Large-Cap Core | Jeffrey Rottinghaus Peter J. Bates G. Mark Bussard 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 Vice President |
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 M. Helena Condez G. Richard Dent Kathryn A. Floyd Jared S. Franz Geoffrey M. Hardin Alan D. Levenson Andrew C. McCormick Samy B. Muaddi Vernon A. Reid, Jr. Daniel O. Shackelford Douglas D. Spratley Edward A. Wiese Rebecca L. Setcavage Chen Shao (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 Vice President Vice President Assistant Vice President Assistant 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 |
40
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Roy H. Adkins, 1970 Vice President, T Rowe Price and T. Rowe Price Group, Inc.; formerly Employee, African Development Bank (to 2008) | Vice President, Institutional International Funds, International Funds, and 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; Vice President, Personal Strategy Funds, Retirement Funds, and Spectrum 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 and New Era Fund |
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 M. Alonso, 1978 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, New America Growth Fund, New Horizons Fund, Small-Cap Stock Fund, and Small-Cap Value Fund |
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 |
Jeffrey M. Anapolsky, 1971 Vice President, T. Rowe Price; formerly Vice President, American Capital, Ltd. (to 2010) | Vice President, Institutional Income Funds |
Anil Kumar Andhavarapu, 1980 Vice President, T Rowe Price; formerly Employee, Nomura Holdings America, Inc. (to 2009) | Vice President, Multi-Sector Account Portfolios |
Austin Applegate, 1974 Vice President, T. Rowe Price; formerly Senior Municipal Credit Research Analyst, Barclays Capital (to 2011); Research Analyst, Lehman Brothers, Inc. (to 2008) | Vice President, State Tax-Free Income Trust |
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 |
Ziad Bakri, 1980 Employee, T. Rowe Price, formerly Vice President, Cowen and Company; M.D., CFA | Vice President, Health Sciences Fund and Tax-Efficient Funds |
Stephen L. Bartolini, 1977 Vice President, T Rowe Price; formerly Senior Portfolio Manager, Senior Trader, and Analyst, Fannie Mae (to 2010); CFA | Vice President, GNMA Fund, Multi-Sector Account Portfolios, and Summit Funds |
41
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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 |
Jason A. Bauer, 1979 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Summer Intern, T. Rowe Price (to 2007); formerly Investment Analyst, Prudential Capital Group (to 2006) | Vice President, High Yield 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 |
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, GNMA Fund, Inflation Focused Bond Fund, Inflation Protected Bond Fund, International Funds, Multi-Sector Account Portfolios, New Income Fund, Short-Term Bond Fund, and Summit Funds |
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 |
42
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, Institutional Income Funds, 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, New Horizons Fund, and U.S. Large-Cap Core Fund |
Christopher W. Carlson, 1967 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Capital Opportunity Fund, 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 |
Sheldon Chan, 1981 Vice President, Price Hong Kong; formerly Associate Director, HSBC (Hong Kong) (to 2011) | Vice President, Multi-Sector Account Portfolios |
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, Institutional International Funds, International Funds, and 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 |
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, 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 |
43
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, High Yield Fund, Institutional Income Funds, 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, Small-Cap Stock 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, Retirement Funds, and Spectrum 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 |
Michael Della Vedova, 1969 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; formerly Co-founder and Partner, Four Quarter Capital (to 2009); Senior Analyst and Assistant Portfolio Manager, Muzinich & Company Limited (to 2007) | Vice President, High Yield Fund, Institutional International Funds, and International Funds |
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 |
Carson R. Dickson, 1976 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; formerly Equity Research Analyst, MTB Investment Advisors (to 2008); CFA, CPA | Vice President, High Yield Fund |
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, 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 |
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 |
44
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Bridget A. Ebner, 1970 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, Inflation Focused Bond Fund, Institutional International Funds, International Funds, Multi-Sector Account Portfolios, 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 | Vice President, Blue Chip Growth Fund, Global Technology 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, Summit Municipal Funds, 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, High Yield Fund, Institutional Income Funds, 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, 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, and U.S. Treasury 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, California Tax-Free Income Trust, Real Assets 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 |
45
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Jon M. Friar, 1982 Employee, T. Rowe Price; formerly Summer Intern, T. Rowe Price (to 2011); Associate Structured Product Sales, Barclays Capital ( to 2008) | Vice President, Equity Income Fund and Financial Services 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 |
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 and Strategic Income 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 |
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, Inflation Focused Bond Fund, Multi-Sector Account Portfolios, and New Income Fund; Assistant Vice President, 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, Inflation Focused Bond Fund, Inflation Protected Bond Fund, New Income Fund, Short-Term Bond Fund, and U.S. Treasury Funds |
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 |
46
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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 |
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 |
Andrew P. Jamison, 1981 Vice President, T. Rowe Price; formerly student, Darden Graduate School of Business Administration, University of Virginia (to 2009), Analyst, Carlson Capital, LP (to 2008); Senior Associate, Ernst & Young LLP (to 2007) | Vice President, High Yield Fund |
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 |
Prashant Jeyaganesh, 1983 Employee, T. Rowe Price | Vice President, Diversified Small-Cap Growth Fund |
Dylan Jones, 1971 Vice President, T. Rowe Price; CFA | Vice President, State Tax-Free Income Trust, 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, Real Estate Fund, and Small-Cap Value Fund |
Keir R. Joyce, 1972 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | Vice President, GNMA Fund, Inflation Focused Bond Fund, Multi-Sector Account Portfolios, Short-Term Bond Fund, and Summit Funds |
47
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, Corporate Income 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; Vice President, Institutional Income Funds and Strategic Income Fund |
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, Spectrum 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, Capital Appreciation Fund, 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, Institutional International Funds, International Funds, and Multi-Sector Account Portfolios |
Michael Lambe, 1977 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, Corporate Income Fund and 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 |
48
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, GNMA Fund, Multi-Sector Account Portfolios, Strategic Income Fund, Summit Funds, and U.S. Bond Enhanced Index Fund |
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; Vice President, Balanced Fund, Inflation Focused Bond Fund, and Personal Strategy Funds |
Peter. Leiser, Jr., 1966 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, U.S. Bond Enhanced Index Fund |
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, Institutional International Funds, International Funds, and 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, Tax-Free Short-Intermediate Fund, 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 |
49
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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 |
Ryan Martyn, 1979 Employee, T. Rowe Price; formerly an Investment Analyst, VGI Partners (to 2009); Corporate & Structured Finance Group Analyst, Babcork & Born (to 2007) | Vice President, New Era 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 |
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 Focused Bond Fund, Inflation Protected Bond Fund, Institutional Income Funds, New Income Fund, Short-Term Bond Fund, Strategic Income Fund, U.S. Bond Enhanced Index Fund, and U.S. Treasury Funds |
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 |
50
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, Inflation Focused Bond Fund and 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, and Personal Strategy 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 |
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, California Tax-Free Income Trust, Corporate Income Fund, Multi-Sector Account Portfolios, 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 |
Tobias F. Mueller, 1980 Employee T. Rowe Price; formerly Intern, T Rowe Price (to 2011); Investment Analyst, Noric Mexxanine UK Limited and Consultant, Victoria Capital Advisors LLC (to 2009); Principal Finance Group Associate, Lehman Brothers International (to 2008) | Vice President, Global Technology Fund and Science & Technology Fund |
James M. Murphy, 1967 Vice President, T. Rowe Price and T. Rowe Price Group, Inc.; CFA | President, Tax-Free High Yield Fund; Vice President, State Tax-Free Income Trust, 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, Summit Municipal Funds, and Tax-Free High Yield Fund |
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 |
51
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Philip A. Nestico, 1976 Vice President, T. Rowe Price and T. Rowe Price Group, Inc. | Vice President, 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, 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, Corporate Income Fund and 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, Institutional International Funds, International Funds, and Multi-Sector Account Portfolios |
Kenneth A. Orchard, 1975 Vice President, T. Rowe Price International; formerly, Vice President, Moodys Investors Service (to 2010) | Vice President, Institutional International Funds and International Funds |
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 |
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 |
Miso Park, 1982 Employee, T. Rowe Price; formerly Credit Analyst, M&G Investments (to 2010); CFA | Vice President, Corporate Income Fund and Multi-Sector Account Portfolios |
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 |
Viral Patel, 1969 Vice President, T. Rowe Price International; formerly Vice President, Berstein Value Equities (to 2011) | Vice President, Global Real Estate Fund |
52
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
Craig J. Pennington, 1971 Employee, T. Rowe Price; formerly, Global Energy Analyst, Insight Investment (to 2010); Senior Trader, Brevan Howard (to 2008); CFA | Vice President, New Era 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, and Financial Services Fund |
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 |
Michael F. Reinartz, 1973 Vice President, T. Rowe Price | Vice President, Inflation Focused Bond Fund and Short-Term Bond Fund |
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, Corporate Income Fund, Multi-Sector Account Portfolios, and U.S. Bond Enhanced Index Fund |
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; Vice President, Dividend Growth Fund and Growth & Income 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 |
Brian A. Rubin, 1974 Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price Trust Company; CPA | Vice President, Floating Rate Fund, High Yield Fund, Institutional Income Funds, and Multi-Sector Account Portfolios |
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 |
53
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, Financial Services Fund and International Funds |
Rebecca Setcavage, 1982 Assistant Vice President, T. Rowe Price | Assistant Vice President, Inflation Protected Bond Fund and U.S. Treasury 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 Focused Bond Fund, Inflation Protected Bond Fund, and New Income Fund; Vice President, Institutional Income Funds, Multi-Sector Account Portfolios, Real Assets Fund, Retirement Funds, Short-Term Bond Fund, Spectrum Funds, U.S. Bond Enhanced Index 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, 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 |
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 |
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 |
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Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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; Vice President, Retirement Funds |
Corey D. Shull, 1983 Employee, T. Rowe Price; CFA | Vice President, Media & Telecommunications Fund |
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; Vice President, Index Trust 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 |
Matthew J. Snowling, 1971 Employee, T. Rowe Price; formerly Managing Director Specialty Finance, Citadel Securities (to 2011); Managing Director of Investment Services and Senior Vice President, Senior Analyst, Education Services Research Group (to 2011); CFA | Vice President, Financial Services Fund |
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 | President, Global Technology Fund; Vice President, Capital Opportunity Fund, Growth & Income Fund, Science & Technology Fund, and Value Fund |
Douglas D. Spratley, 1969 Vice President, T. Rowe Price; CFA | 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, and U.S. Treasury Funds |
David Stanley, 1963 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, Institutional International Funds, International Funds, Multi-Sector Account Portfolios, and 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, Corporate Income Fund and 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 |
55
Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, Retirement Funds, and Spectrum Funds |
Miki Takeyama, 1970 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International | Vice President, International Funds |
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, Institutional International Funds, International Funds, Multi-Sector Account Portfolios, and Strategic Income Fund |
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 |
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, Tax-Free High Yield Fund and Tax-Free Income Fund, and Tax-Free Short-Intermediate 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 |
Robert D. Thomas, 1971 Vice President, T. Rowe Price International; formerly Senior Vice President, Moodys Investors Service, London ( to 2011); Vice President, Credit Suisse Asset Management, London (to 2006) | Vice President, Corporate Income Fund and Multi-Sector Account Portfolios |
Siby Thomas, 1979 Vice President, T. Rowe Price; formerly student, The University of Chicago Graduate School of Business (to 2009); Mechanical Associate, Sargent & Lundy Engineers (to 2007) | Vice President, Multi-Sector Account Portfolios |
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, Strategic Income Fund, and U.S. Bond Enhanced Index Fund |
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Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, Spectrum Funds, and Strategic Income Fund |
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 |
Lauren T. Wagandt, 1984 Vice President, T. Rowe Price; formerly Product Specialist, BlueCrest Capital Management (to 2009) | Vice President, Corporate Income Fund and Multi-Sector Account Portfolios |
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, New Horizons 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 |
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Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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, Growth Stock Fund and 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, Retirement Funds, and Spectrum 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, Short-Term Bond Fund; Vice President, California Tax-Free Income Trust, Corporate Income Fund, Inflation Focused Bond Fund, Institutional Income Funds, Multi-Sector Account Portfolios, New Income Fund, Prime Reserve Fund, TRP Reserve Investment Funds, State Tax-Free Income Trust, Summit Municipal Funds, Summit Funds, Tax-Exempt Money Fund, Tax-Free Short-Intermediate Fund, and U.S. Treasury Funds |
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 |
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, Blue Chip Growth Fund and New Horizons Fund |
J. Howard Woodward, 1974 Vice President, T. Rowe Price Group, Inc. and T. Rowe Price International; CFA | Vice President, Corporate Income Fund, Institutional International Funds, International Funds, and 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; Assistant Vice President, Corporate Income Fund |
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Name, Year of Birth, and Principal
Occupation(s) | Position(s) Held With Fund(s) |
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 |
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 |
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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 |
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 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 |
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Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
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 |
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 |
61
Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
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 |
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 |
62
Fund | Aggregate Compensation From Fund | |||||||
Brody | Casey | Deering | Dick | Horn | Rodgers | Schreiber | Tercek | |
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 |
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.
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 |
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 | |
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 |
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 |
64
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 | |
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 |
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 |
65
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 | |
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 |
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 |
66
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 | |
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 |
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 |
67
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 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 |
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 |
68
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 | |
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 |
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 |
69
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
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 | |||||
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 |
70
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
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 | |||||
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 |
71
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
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 | |||||
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 |
72
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
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 | |||||
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 |
73
Aggregate Holdings, | Inside Directors | ||||||||
Bernard | Gitlin | Laporte | Rogers | ||||||
over $100,000 | over $100,000 | over $100,000 | over $100,000 | ||||||
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 |
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 | none | $500,001$1,000,000 |
Blue Chip Growth | Larry J. Puglia | over $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 Local Currency Bond | Andrew Keirle Christopher J. Rothery | none $10,001$50,000 | 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 | (b) (b) | $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 | $500,001$1,000,000 | $500,001$1,000,000 |
74
Fund | Portfolio Manager | Range of Fund Holdings | All Funds |
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 |
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 | $1-$10,000 | over $1,000,000 |
Real Estate | David M. Lee | $100,001$500,000 | over $1,000,000 |
Science & Technology | Kennard W. Allen | over $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 | over $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 | $100,001-$500,000 | $500,001$1,000,000 |
Spectrum Income | Charles M. Shriver | $100,001-$500,000 | $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 |
75
Fund | Portfolio Manager | Range of Fund Holdings | All Funds |
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) The fund incepted on July 29, 2011, 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 | $500,001$1,000,000 | 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.
76
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 | none | over $1,000,000 |
Emerging Markets Local Multi-Sector Account Portfolio | Andrew Keirle Christopher J. Rothery | none none | 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
77
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 | 3 | $3,082,857,380 | | | | |
Christopher D. Alderson | 3 | 845,060,381 | 1 | $20,310,974 | | |
Preston G. Athey | 8 | 8,725,559,790 | 1 | 19,549,212 | 9 | 433,424,407 |
E. Frederick Bair | 8 | 16,992,722,324 | 2 | 2,361,026,752 | 1 | 825,444,402 |
P. Robert Bartolo | 11 | 30,950,460,970 | 1 | 194,183,737 | 7 | 881,745,283 |
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 | 24,816,337,728 | 1 | 56,310,081 | 7 | 904,677,024 |
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 | 10 | 3,861,688,659 | 5 | 8,277,822,480 | 1 | 37,863,703 |
Jose Costa Buck | 1 | 2,243,148,884 | 1 | 89,243,046 | 1 | 247,146,930 |
Anna M. Dopkin | 10 | 3,984,140,384 | 5 | 6,294,280,686 | 57 | 14,058,490,493 |
Henry M. Ellenbogen | 1 | 7,859,592,630 | 3 | 884,451,977 | 8 | 1,013,664,091 |
Donald J. Easley | | | | | 2 | 35,526,642 |
David J. Eiswert | 2 | 605,226,995 | 1 | 303,295,927 | 1 | 38,357,596 |
78
Registered Investment | Other Pooled Investment | Other Accounts | ||||
Portfolio Manager | Number | Total Assets | Number | Total Assets | Number | Total Assets |
Mark S. Finn | 4 | 13,077,673,616 | | | | |
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 | 12,822,350,626 | | | | |
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 | 3 | 4,221,207,830 | 1 | 191,911,079 | | |
Leigh Innes | 1 | 495,499,092 | 1 | 13,003,573 | | |
Kris H. Jenner | 6 | 3,980,932,026 | | | 1 | 58,815,185 |
Paul A. Karpers | 1 | 1,464,352,277 | | | 3 | 1,096,552,100 |
Andrew Keirle | 2 | 63,268,977 | 1 | 12,558,000 | | |
Ian D. Kelson | 4 | 5,831,677,184 | 11 | 1,220,329,512 | 1 | 2,431,211 |
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 | 3 | 3,044,868,784 | | | 2 | 66,454,314 |
Wyatt A. Lee | 1 | 878,942,259 | | | 1 | 85,868,948 |
John D. Linehan | 5 | 4,266,527,308 | 3 | 724,589,806 | 25 | 2,531,414,416 |
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 | 2 | 1,984,874,159 | | | | |
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 | 7,350,859,623 | 2 | 403,113,247 | 4 | 324,734,735 |
Hugh D. McGuirk | 3 | 2,630,485,985 | | | 10 | 323,341,712 |
Joseph M. Milano | 2 | 2,678,656,095 | | | | |
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 | 189,000,470 | | | | |
Gonzalo Pangaro | 3 | 6,425,958,045 | 6 | 5,251,953,207 | 6 | 2,937,108,505 |
Timothy E. Parker | 3 | 5,781,714,768 | 1 | 224,611,723 | 8 | 774,853,145 |
Donald J. Peters | 5 | 1,252,945,635 | | | 18 | 1,292,344,914 |
Larry J. Puglia | 10 | 17,820,175,070 | 2 | 218,649,928 | 16 | 3,629,699,230 |
Brian C. Rogers | 13 | 30,191,956,508 | 2 | 1,198,047,465 | 15 | 2,073,581,800 |
Christopher J. Rothery | 2 | 79,650,853 | | | 1 | 38,289,115 |
Jeffrey Rottinghaus | 2 | 141,444,384 | 2 | 170,508,788 | | |
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 | 19 | 18,047,697,037 | 6 | 1,536,581,586 | 20 | 911,212,751 |
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 |
79
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 | 1,057,104,308 | | | 1 | 670,031,395 |
Mark J. Vaselkiv | 7 | 9,458,526,049 | 7 | 2,774,312,072 | 21 | 3,489,851,223 |
Eric L. Veiel | 1 | 267,926,671 | | | | |
David J. Wallack | 3 | 9,529,084,816 | 1 | 54,203,742 | 2 | 172,388,184 |
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 | | | | |
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 |
Maryland Tax-Free Bond | 1.2 |
80
Fund | %* |
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 March 31,
2012 data for
the 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. | 5.65 |
Balanced | T. Rowe Price Trust Company | 40.88(c) |
Blue Chip Growth | Edward
D. Jones & Company National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services TR Blue Chip Growth Fund | 10.80 |
81
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 | 11.89 |
Blue Chip GrowthR Class | American United Life Emjay Corporation Custodian Nationwide Trust Company FSB State Street Corporation Trustee | 10.74 |
California Tax-Free Bond | Charles Schwab & Company, Inc. | 5.76 |
California Tax-Free Money | Georgette OConnor Day TR Georgette
OConnor Day Trust | 12.48 |
Capital Appreciation | Charles
Schwab & Company, Inc. National Financial Services for the Exclusive
Benefit of T. Rowe Price Trust Company | 8.88 |
82
Fund | Shareholder | % |
Capital AppreciationAdvisor Class | Ameritas
Life Insurance Corporation Charles
Schwab & Company, Inc. Citigroup Global Markets National Financial Services for the Exclusive Benefit of | 11.42 |
Capital Opportunity | McWood
& Company T. Rowe Price Associates | 43.84(a) |
Capital Opportunity FundAdvisor Class | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of Reliance
Trust Company c/o Fascore LLC | 5.69 |
Capital Opportunity FundR Class | Charles Schwab & Company, Inc. Nationwide Trust Company FSB Reliance
Trust Company NFS LLC FEBO Reliance Trust Co. Trust/Custodian For TRS FBO Various Retirement Plans | 37.53(a) |
Corporate Income | Spectrum Income Fund | 42.11(d) |
83
Fund | Shareholder | % |
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 | 21.59 |
Dividend Growth FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Wells Fargo Bank | 72.85(a) |
Emerging Europe | National Financial Services for the Exclusive Benefit of | 9.45 |
Emerging Markets Bond | Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Spectrum
Income Fund | 6.84 12.33 5.10 5.90 16.95 |
Emerging Markets Stock | National Financial Services for the Exclusive Benefit of Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2040 | 10.84 |
Emerging Markets Local Currency Bond | T. Rowe Price Associates | 24.65 |
Emerging Markets Local Currency BondAdvisor Class | T. Rowe
Price Associates UMB Bank NA C/F | 83.08(e) |
84
Fund | Shareholder | % |
Equity Income | Edward D. Jones & Company National Financial Services for the Exclusive
Benefit of T. Rowe Price Trust Company | 9.11 |
Equity Income FundAdvisor Class | John Hancock Life Insurance USA National
Financial Services for the Exclusive Benefit of | 22.03 |
Equity Income FundR Class | American United Life DCGT as Trustee and/or Custodian Hartford
Life Insurance Company Nationwide Trust Company FSB Wells Fargo
Bank | 18.89 |
Equity Index 500 | Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 | 10.06 10.01 17.52 7.62 8.99 |
European Stock | Charles Schwab & Company, Inc. Spectrum
International Fund | 6.98 |
Extended Equity Market Index | T. Rowe Price Trust Company | 12.99 |
Financial Services | T. Rowe
Price Retirement Plan Services, Inc. | 6.51 |
Floating Rate | T. Rowe
Price Associates | 40.35(e) |
85
Fund | Shareholder | % |
Floating Rate FundAdvisor Class | Ameritrade, Inc. FBO P.O. Box 2226 Charles Schwab & Company,
Inc. Primevest Financial Services FBO George I. Andrus 400 First Street South Suite 300 P.O. Box 283 Saint Cloud, Minnesota 56302 T. Rowe Price Associates | 11.56 |
Georgia Tax-Free Bond | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 16.71 |
Global Infrastructure | T. Rowe Price Associates | 13.83 |
Global Infrastructure FundAdvisor Class | Ameritrade, Inc. FBO SEI Private
Trust Company T. Rowe Price Associates | 7.49 |
Global Large-Cap Stock | San Gabriel III LLC T. Rowe Price Associates Trustees of T. Rowe Price U.S. Retirement Program | 6.47 |
Global Large-Cap Stock FundAdvisor Class | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of T. Rowe
Price Associates | 5.81 |
Global Real Estate | T. Rowe Price Associates | 16.65 |
86
Fund | Shareholder | % |
Global Real Estate FundAdvisor Class | Charles
Schwab & Company, Inc. Del Jean Nash Trustee 8515 East Orchard road 2T2 Greenwood Village, Colorado 80111 FIIOC as Agent Covington, Kentucky 41015 National Financial Services for the Exclusive
Benefit of | 5.41
|
Global Stock | JPMorgan
as Directed Trustee for Ernest & Young T. Rowe Price Associates T. Rowe Price Retirement Plan Services, Inc. | 14.76 |
Global Stock FundAdvisor Class | FIIOC as Agent National Financial Services for the Exclusive Benefit of | 22.38 |
Global Technology | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 16.48 |
GNMA | Spectrum Income Fund | 34.42(d) |
TRP Government Reserve Investment | Barnaclesailc/o T. Rowe Price Associates Bridgesail & Company
c/o T. Rowe Price Associates T. Rowe Price Retirement Plan Services, Inc. | 59.21(d) |
Growth & Income | T. Rowe Price Trust Company | 7.59 |
87
Fund | Shareholder | % |
Growth Stock | Charles Schwab & Company, Inc. 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 | 5.07 |
Growth Stock FundAdvisor Class | ICMA Retirement Trust National Financial Services for the Exclusive
Benefit of | 6.13 |
Growth Stock FundR Class | American United Life Hartford Life Insurance Company Nationwide
Trust Company FSB State Street Corporation Trustee Suntrust Bank | 5.12 |
Health Sciences | Charles Schwab & Company, Inc. John Hancock
Life Insurance Company USA National Financial Services
for the Exclusive Benefit of | 7.58 |
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 | 23.79 |
88
Fund | Shareholder | % |
Inflation Focused Bond | Retirement Portfolio 2005 Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Income Portfolio T. Rowe Price Services, Inc. | 5.89 19.99 13.16 15.01 24.32 5.45 |
Inflation Protected Bond | T. Rowe
Price Retirement Plan Services, Inc. | 9.32 |
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 | 13.07 |
Institutional Concentrated International Equity | T. Rowe Price Associates | 100.00(e) |
Institutional Core Plus | JPMorgan Chase Bank Trustee for Janette
Stump, James Carney & Howard Kline, Trustees National Financial Services
for the Exclusive Benefit of The Church Foundation T. Rowe Price Associates | 24.92 |
89
Fund | Shareholder | % |
Institutional Core PlusF Class | Charles
Schwab & Company, Inc. LPL Financial T. Rowe Price Associates | 8.79 |
Institutional Emerging Markets Bond | Charles Schwab & Company, Inc. Ladybird & Company Ladybug & Company Lakeside & Company National Financial Services for the Exclusive Benefit of | 8.65 |
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 | 7.11 6.61 13.38 13.81 |
90
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 | 5.71 |
Institutional Floating RateF Class | Mac & Company | 9.77 |
Institutional Global Equity | Mac &
Company SEI Private Trust Company State Street Bank & Trust Company U.S. Bank
Trustee | 52.53(a) |
91
Fund | Shareholder | % |
Institutional Global Large-Cap Equity | Croda Inc. Defined Benefit Plan Master TR c/o State Street Bank and Trust Company SEI Private Trust Company State Street Bank &
Trust Company T. Rowe Price Associates The Board
of Trustees of the Leland Stanford Junior | 11.42 |
Institutional High Yield | Bread & Company Brown Brothers Harriman & Company Custodian Goldman Sachs & Company National Financial Services
for the Exclusive Benefit of Tuna & Company | 6.16 |
Institutional International Bond | Charles Schwab & Company, Inc. Ladybird & Company Ladybug & Company Lakeside & Company | 7.62 34.24(d) 10.10 |
Institutional International Core Equity | Dekalb
County Pension Plan T. Rowe Price Associates | 93.94(a) |
92
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 | 6.63 |
Institutional Large-Cap Core Growth | JPMorgan Chase as Trustee National
Financial Services for the Exclusive Benefit of Orchard Trust Company LLC
Trust/Custodian SEI Private Trust Company State Street Corporation TR FBO Hallmark Cards, Inc. | 8.67 |
Institutional Large-Cap Growth | Charles Schwab & Company, Inc. MLPF&S for the Sole Benefit of Its Customers National
Financial Services for the Exclusive Benefit of SEI Private Trust Company | 6.85 |
93
Fund | Shareholder | % |
Institutional Large-Cap Value | Charles Schwab & Company, Inc. JPMorgan Chase Bank NA Trustee National Financial Services for the Exclusive Benefit of Prudential Bank & Trust | 15.44 |
Institutional Mid-Cap Equity Growth | ING as Custodian/Recordkeeper Kentucky
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 P.O. Box
2600 L-24 Wells Fargo Bank | 9.00 |
Institutional Small-Cap Stock | National Financial Services for the Exclusive
Benefit of Vanguard Fiduciary Trust Company | 61.38(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 | 6.42 |
94
Fund | Shareholder | % |
International Bond | Charles Schwab & Company, Inc. Edward D. Jones & Company National Financial Services for the Exclusive Benefit of Retirement Portfolio 2020 Spectrum Income Fund | 6.58 |
International Bond FundAdvisor Class | Citigroup Global Markets Inc. National
Financial Services for the Exclusive Benefit of | 24.43 |
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 | 8.76 |
International Equity Index | T. Rowe Price Retirement Plan Services, Inc. | 16.47 |
International Growth & Income | Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 Spectrum
Growth Fund | 6.09 14.77 8.94 14.74 6.88 10.55 7.22 |
95
Fund | Shareholder | % |
International Growth & Income FundAdvisor Class | American
United Life Hartford Securities Distribution Company Inc. Orchard
Trust Company LLC Trustee State Street Corporation Trustee | 6.61 |
International Growth & Income FundR Class | American
United Life DCGT as Trustee and/or Custodian Nationwide Trust Company FSB Saxon & Company State Street Corporation Trustee | 19.95 25.39(a) |
International Stock | Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2040 T. Rowe Price Trust Company | 9.96 6.02 9.90 7.08 5.63 |
International Stock FundAdvisor Class | National
Financial Services for the Exclusive Benefit of | 92.02(a) |
International Stock FundR Class | American United Life American
United Life Hartford Securities Distribution Company Inc. Nationwide Trust Company FSB | 7.11 |
Japan | Charles Schwab & Company, Inc. Spectrum
International Fund | 7.36 |
Latin America | Charles Schwab & Company, Inc. | 8.75 |
Maryland Short-Term Tax-Free Bond | Charles Schwab & Company, Inc. | 10.77 |
96
Fund | Shareholder | % |
Maryland Tax-Free Bond | Charles Schwab & Company, Inc. | 5.61 |
Maryland Tax-Free Money | T. Rowe Price Associates | 6.97 |
Media & Telecommunications | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of T. Rowe
Price Trust Company | 7.14 |
Mid-Cap Growth | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company | 6.91 |
Mid-Cap Growth FundAdvisor Class | MLPF&S for the Sole Benefit of its Customers National Financial Services for the Exclusive Benefit of Our Customers | 6.62 |
Mid-Cap Growth FundR Class | American United Life ING Life Insurance & Annuity Company Nationwide Trust Company
FSB Suntrust Bank | 8.83 |
Mid-Cap Value | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 16.73 |
Mid-Cap Value FundAdvisor Class | Morgan Stanley Smith Barney National Financial Services for the Exclusive
Benefit of | 7.70 |
Mid-Cap Value FundR Class | American United Life ING Life Insurance & Annuity Company Nationwide Trust Company
FSB State Street Corporation Trustee Suntrust Bank | 5.35 16.27 |
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Fund | Shareholder | % |
New America Growth | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of T. Rowe
Price Trust Company | 12.68 |
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 VRSCO FBO
AIG FSB Cust. Trustee | 13.23 |
New Asia | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 6.28 |
New Era | Charles Schwab & Company, Inc. National
Financial Services for the Exclusive Benefit of | 9.03 |
New Horizons | National
Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company | 7.86 |
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Fund | Shareholder | % |
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 | 16.90 7.42 13.35 5.74 6.77 7.38 |
New Income FundAdvisor Class | Citigroup Global Markets Inc. National
Financial Services for the Exclusive Benefit of Orchard Trust Company LLC | 16.73 24.14 |
New Income FundR Class | Nationwide Trust Company FSB NFS LLC FEBO Marshall & Ilsley Trust Company NA State Street Corporation Trustee Wells Fargo
Bank | 14.05
|
New Jersey Tax-Free Bond | National Financial Services for the Exclusive
Benefit of | 15.10 |
New York Tax-Free Bond | Charles Schwab & Company, Inc. Reinvest Account | 5.38 |
New York Tax-Free Money | H. Mark Glasberg and Paula D. Glasberg, Joint
Tenants | 10.87 |
Overseas Stock | Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 | 6.82 16.61 10.05 16.52 7.70 11.82 |
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Fund | Shareholder | % |
Personal Strategy Balanced | Mac & Company National
Financial Services for the Exclusive Benefit of State Street Bank &
Trust Company T. Rowe Price Trust Company TR Balanced Attn.: Asset Reconciliation | 5.54 8.80 |
Personal Strategy Growth | National Financial Services for the Exclusive Benefit of State Street Bank & Trust Company T. Rowe Price Trust Company TR Attn.: Growth Asset | 5.57 |
Personal Strategy Income | National Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company TR Income Attn.: Asset Reconciliation | 5.48 |
Prime Reserve | T. Rowe Price Trust Company | 10.59 |
Real Assets | Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 | 6.93 17.07 10.22 16.72 7.72 11.94 |
Real Estate | Charles
Schwab & Company, Inc. First Clearing LLC | 7.84 |
Real Estate FundAdvisor Class | Hartford Securities Distribution Company Inc. Maxim Series Fund Inc. National Financial Services for the Exclusive
Benefit of | 6.01 |
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Fund | Shareholder | % |
TRP Reserve Investment | Seamile & Company State Street
Bank & Trust Company T. Rowe Price Associates, Inc. T. Rowe Price Managed GIC Stable Value Fund Tuna & Company | 11.40 11.83 |
Retirement 2005 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company Taynik & Company | 41.44(a) |
Retirement 2005 FundR Class | NFS LLC FEBO State Street Bank &
Trust Company Trustee | 87.89(a) |
Retirement 2010 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 8.27 |
Retirement 2010 FundAdvisor Class | Charles Schwab & Company, Inc. Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive
Benefit of Taynik & Company | 5.78 |
101
Fund | Shareholder | % |
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 | 5.37 19.10 |
Retirement 2015 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 8.50 |
Retirement 2015 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company | 21.80 |
Retirement 2015 FundR Class | ING Life Insurance & Annuity Company NFS LLC | 28.97(a) |
Retirement 2020 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.91 |
Retirement 2020 FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Taynik & Company | 9.44 |
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Fund | Shareholder | % |
Retirement 2020 FundR Class | Hartford
Life Insurance Company Massachusetts Mutual Life
Insurance Company Saxon & Company State Street
Corporation Trustee Suntrust Bank Taynik & Company | 7.49 22.29 |
Retirement 2025 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.67 |
Retirement 2025 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company | 22.57 |
Retirement 2025 FundR Class | ING Life Insurance & Annuity Company NFS
LLC | 33.92(a) |
Retirement 2030 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.99 |
Retirement 2030 FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Taynik & Company | 9.69 |
Retirement 2030 FundR Class | Hartford Life Insurance Company Massachusetts Mutual Life Insurance Company Saxon & Company State Street Corporation
Trustee Suntrust Bank Taynik
& Company | 6.70 27.09(a) |
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Fund | Shareholder | % |
Retirement 2035 | National Financial Services for the Exclusive
Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.55 |
Retirement 2035 FundAdvisor Class | National Financial Services for the Exclusive
Benefit of Reliance Trust Company Taynik & Company | 24.35 |
Retirement 2035 FundR Class | ING Life Insurance & Annuity Company NFS LLC Reliance Trust Company State Street
Corporation Trustee | 40.39(a) 6.16 |
Retirement 2040 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.84 |
Retirement 2040 FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Taynik & Company Wells Fargo
Bank | 9.58 |
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 | 6.21 |
Retirement 2045 | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.31 |
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Fund | Shareholder | % |
Retirement 2045 FundAdvisor Class | National
Financial Services for the Exclusive Benefit of Reliance Trust Company Taynik & Company | 24.10 |
Retirement 2045 FundR Class | ING Life Insurance & Annuity Company NFS LLC State Street Corporation Trustee Wells Fargo Bank | 42.57(a) 5.56
|
Retirement 2050 | National
Financial Services for the Exclusive Benefit of T. Rowe Price Retirement
Plan Services, Inc. | 9.51 |
Retirement 2050 FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Reliance
Trust Company Taynik & Company | 9.68 5.09 12.34 |
Retirement 2050 FundR Class | Hartford
Life Insurance Company Massachusetts Mutual Life
Insurance Company Saxon & Company State Street
Corporation Trustee Taynik & Company | 7.41 34.97(a) |
Retirement 2055 | National
Financial Services for the Exclusive Benefit of T. Rowe Price Retirement
Plan Services, Inc. | 7.69 |
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Fund | Shareholder | % |
Retirement 2055 FundAdvisor Class | National
Financial Services for the Exclusive Benefit of Orchard Trust Company Trustee Reliance Trust Company Taynik & Company | 23.93 |
Retirement 2055 FundR Class | Emjay Corporation Custodian ING Life Insurance & Annuity Company NFS LLC State Street
Corporation Trustee | 8.59 7.55 11.68 |
Retirement Income | National Financial Services for the Exclusive Benefit of T. Rowe Price Retirement Plan Services, Inc. | 9.79 |
Retirement Income FundAdvisor Class | Massachusetts Mutual Life Insurance Company National Financial Services for the Exclusive Benefit of Reliance Trust Company Taynik
& Company | 7.45 |
Retirement Income FundR Class | ING Life Insurance & Annuity Company PIMS/Prudential Retirement State Street
Corporation Trustee | 8.15 12.55 |
Science & Technology | T. Rowe Price Retirement Plan Services, Inc. | 19.04 |
Science & TechnologyAdvisor Class | John Hancock Life Insurance Company USA National Financial Services for the Exclusive Benefit of | 79.86(a) |
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Fund | Shareholder | % |
Short-Term Bond | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of Spectrum
Income Fund | 5.23 8.26 |
Short-Term Bond FundAdvisor Class | Citigroup Global Markets Inc. National
Financial Services for the Exclusive Benefit of | 6.93 76.67(a) |
Small-Cap Stock | Minnesota State Retirement System National Financial Services
for the Exclusive Benefit of T. Rowe Price Trust Company | 6.42 |
Small-Cap Stock FundAdvisor Class | Fifth Third Bank Trustee FBO Cintas
Partners Plan Horace Mann Life Insurance Company National Financial Services for the Exclusive Benefit of Vanguard Fiduciary Trust Company Wells Fargo
Bank | 15.10
|
Small-Cap Value | National Financial Services for the Exclusive Benefit of T. Rowe Price Trust Company | 11.26 |
Small-Cap Value FundAdvisor Class | ICMA Retirement Trust John Hancock
Life Insurance Company USA National Financial Services
for the Exclusive Benefit of | 32.13(a) 17.30 |
Spectrum Growth | T. Rowe Price Trust Company | 11.38 |
Spectrum Income | T. Rowe Price Trust Company | 18.64 |
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Fund | Shareholder | % |
Strategic Income | National Financial Services for the Exclusive
Benefit of T. Rowe Price Associates Young Womens Christian Association New York, New York 10017 | 12.19 |
Strategic IncomeAdvisor Class | Pershing LLC T. Rowe
Price Associates | 5.90 29.81(e) |
Summit Cash Reserves | T. Rowe Price Associates T. Rowe Price Trust Company | 12.30 |
Summit Municipal Income | Charles Schwab & Company, Inc. Edward D. Jones & Company First Clearing LLC Saxon & Company | 9.35 20.05 |
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 | 14.88 8.70 |
Summit Municipal Money Market | T. Rowe
Price Associates | 10.01 |
Tax-Exempt Money | Edward
D. Jones & Company Pershing
LLC for Exclusive Benefit of Susan A. Feith Wisconsin Rapids, Wisconsin T. Rowe Price Associates | 14.71
|
Tax-Free High Yield | Charles
Schwab & Company, Inc. | 9.72 |
Tax-Free Income FundAdvisor Class | Charles
Schwab & Company, Inc. National Financial Services for the Exclusive
Benefit of | 29.56(a) |
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Fund | Shareholder | % |
Tax-Free Short-Intermediate | Charles Schwab & Company, Inc. First Clearing LLC National Financial Services for the Exclusive
Benefit of | 14.40 13.13 |
Total Equity Market Index | Maryland
College Investment Plan | 9.36 |
U.S. Bond Enhanced Index | Genworth Financial Trust Company T. Rowe Price Retirement
Plan Services, Inc. | 27.45(a) |
U.S. Large-Cap Core | T. Rowe Price Associates | 19.38 |
U.S. Large-Cap CoreAdvisor Class | T. Rowe Price Associates | 95.63(e) |
U.S. Treasury Intermediate | MLPF&S for the Sole Benefit of Its Customers T. Rowe Price Trust Company | 17.44 8.38 |
U.S. Treasury Long-Term | Spectrum Income Fund T. Rowe Price Trust Company | 26.96(d) |
U.S. Treasury Money | T. Rowe Price Trust Company | 5.69 |
Value | Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 Retirement Portfolio 2045 | 13.42 9.85 18.23 9.16 14.20 5.07 |
ValueAdvisor Class | Mac & Company ING Life Insurance & Annuity Company ING National Trust National Financial Services
for the Exclusive Benefit of | 5.25 12.49 19.29 40.13(a) |
Virginia Tax-Free Bond | Charles Schwab & Company, Inc. National Financial Services for the Exclusive Benefit of | 7.42 |
(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.
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(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.
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, 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
110
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 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:
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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 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 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) |
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Fund | Fee % | |
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 | |
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 |
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Fund | Fee % | |
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 0.21% on assets above $15 billion.
(c) On assets up to $15 billion and 0.30% 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 |
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 |
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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 for 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.
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 |
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Fund | Fiscal Year Ended | ||
2/28/11 | 2/28/10 | 2/28/09 | |
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.
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 |
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Fund | Fiscal Year Ended | ||
5/31/11 | 5/31/10 | 5/31/09 | |
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.
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 |
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Fund | Fiscal Year Ended | ||
10/31/11 | 10/31/10 | 10/31/09 | |
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 | ||
12/31/11 | 12/31/10 | 12/31/09 | |
Balanced | $13,950,000 | $12,708,000 | $10,384,000 |
Blue Chip Growth(a) | 69,851,000 | 63,531,000 | 53,303,000 |
Capital Appreciation(b) | 66,899,000 | 59,332,000 | 47,301,000 |
Capital Opportunity(a) | 1,444,000 | 1,219,000 | 1,015,000 |
Diversified Mid-Cap Growth | 1,209,000 | 726,000 | 536,000 |
Diversified Small-Cap Growth | 1,210,000 | 608,000 | 422,000 |
Dividend Growth | 9,427,000 | 6,125,000 | 4,034,000 |
Emerging Markets Bond | 21,690,000 | 17,780,000 | 8,069,000 |
Emerging Markets Bond Multi-Sector Account Portfolio | (d) | (d) | (d) |
Emerging Markets Local Currency Bond(b) | 152,000 | (d) | (d) |
Emerging Markets Local Multi-Sector Account Portfolio | (d) | (d) | (d) |
Equity Income(a) | 116,095,000 | 99,044,000 | 81,940,000 |
Equity Index 500 | 13,531,000 | 14,104,000 | 13,656,000 |
Extended Equity Market Index(c) | 1,487,000 | 1,364,000 | 1,052,000 |
Financial Services | 2,006,000 | 2,290,000 | 1,954,000 |
Global Real Estate(b) | 310,000 | 172,000 | 82,000 |
Global Technology | 3,716,000 | 2,274,000 | 1,186,000 |
Growth & Income | 6,134,000 | 5,773,000 | 5,001,000 |
Growth Stock(a) | 137,117,000 | 117,595,000 | 94,838,000 |
Health Sciences | 18,865,000 | 14,942,000 | 12,095,000 |
Institutional Emerging Markets Bond(c) | 1,394,000 | 1,304,000 | 614,000 |
Institutional International Bond(c) | 1,084,000 | 1,138,000 | 455,000 |
Institutional Large-Cap Core Growth | 1,368,000 | 901,000 | 575,000 |
Institutional Large-Cap Growth | 15,818,000 | 10,932,000 | 6,888,000 |
Institutional Large-Cap Value | 3,305,000 | 2,432,000 | 1,674,000 |
Institutional Mid-Cap Equity Growth | 9,561,000 | 3,548,000 | 2,368,000 |
Institutional Small-Cap Stock | 3,276,000 | 2,285,000 | 1,644,000 |
Institutional U.S. Structured Research | 2,876,000 | 1,860,000 | 644,000 |
International Bond | 34,719,000 | 28,277,000 | 19,301,000 |
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Fund | Fiscal Year Ended | ||
12/31/11 | 12/31/10 | 12/31/09 | |
Media & Telecommunications | 13,030,000 | 10,578,000 | 7,603,000 |
Mid-Cap Growth(a) | 123,991,000 | 111,365,000 | 79,530,000 |
Mid-Cap Value(a) | 58,754,000 | 54,182,000 | 37,085,000 |
New America Growth(b) | 12,570,000 | 6,519,000 | 4,493,000 |
New Era | 30,599,000 | 27,355,000 | 22,381,000 |
New Horizons | 52,289,000 | 41,117,000 | 30,750,000 |
Real Assets | 13,203,000 | 2,069,000 | (d) |
Real Estate(b) | 16,942,000 | 15,086,000 | 10,445,000 |
Science & Technology(b) | 19,909,000 | 17,947,000 | 14,663,000 |
Small-Cap Stock(b) | 52,293,000 | 42,729,000 | 31,647,000 |
Small-Cap Value(b) | 46,105,000 | 39,801,000 | 29,616,000 |
Spectrum Growth | (e) | (e) | (e) |
Spectrum Income | (e) | (e) | (e) |
Spectrum International | (e) | (e) | (e) |
Total Equity Market Index(c) | 2,202,000 | 1,887,000 | 38,000 |
U.S. Large-Cap Core(b) | 193,000 | 104,000 | 1,555,000 |
Value(b) | 78,910,000 | 65,819,000 | 48,229,000 |
(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) Prior to commencement of operations.
(e) The fund does not pay an investment management fee.
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 | May 1, 2010 April 30, 2012 | 1.10 | April 30, 2014(d) |
Capital Opportunity FundR Class(c) | May 1, 2012 April 30, 2014 | 1.35 | April 30, 2016(d) |
Diversified Small-Cap Growth | May 1, 2010 April 30, 2012 | 1.25 | April 30, 2014(d) |
Emerging Markets Local Currency Bond | May 26, 2011 April 30, 2014 | 1.10 | (a) |
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Fund | Limitation Period | Expense Ratio Limitation % | Reimbursement Date |
Emerging Markets Local Currency Bond FundAdvisor Class | May 26, 2011 April 30, 2014 | 1.20 | (a) |
Equity Index 500(e) | May 1, 2012 April 30, 2014 | 0.30 | April 30, 2016(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(f) | March 1, 2012 February 28, 2014 | 1.10 | (a) |
Global Infrastructure FundAdvisor Class(g) | March 1, 2012 February 28, 2014 | 1.20 | (a) |
Global Large-Cap Stock(h) | March 1, 2011 February 28, 2013 | 1.00 | (a) |
Global Large-Cap Stock FundAdvisor Class(i) | March 1, 2011 February 28, 2013 | 1.10 | (a) |
Global Real Estate(j) | May 1, 2011 April 30, 2013 | 1.05 | (a) |
Global Real Estate FundAdvisor Class(k) | May 1, 2011 April 30, 2013 | 1.15 | (a) |
Global Stock FundAdvisor Class(l) | March 1, 2012 February 28, 2014 | 1.15 | February 28, 2016(d) |
Inflation Protected Bond(m) | October 1, 2010 September 30, 2012 | 0.50 | September 30, 2014(d) |
Institutional Africa & Middle East(n) | 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(o) | 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(p) | March 1, 2011 February 28, 2013 | 0.75 | (a) |
Institutional International Growth Equity(q) | March 1, 2012 - February 28, 2014 | 0.75 | (a) |
Institutional Large-Cap Core Growth(r) | May 1, 2011 April 30, 2013 | 0.65 | April 30, 2015(d) |
Institutional U.S. Structured Research(s) | May 1, 2012 April 30, 2014 | 0.55 | (a) |
International Stock FundR Class(t) | March 1, 2012 February 28, 2014 | 1.40 | (a) |
New America Growth FundAdvisor Class | 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(u) | October 1, 2010 September 30, 2012 | 1.15 | (a) |
New York Tax-Free Money(v) | 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(w) | October 1, 2011 September 30, 2013 | 0.80 | (a) |
Strategic Income FundAdvisor Class(x) | October 1, 2011 September 30, 2013 | 0.95 | (a) |
Tax-Efficient Equity(y) | July 1, 2010 June 30, 2012 | 1.25 | June 30, 2014(d) |
U.S. Large-Cap Core Fund(z) | May 1, 2012 April 30, 2014 | 1.15 | (a) |
U.S. Large-Cap Core FundAdvisor Class(aa) | May 1, 2012 April 30, 2014 | 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 FundR Class previously operated under a 1.35% expense limitation that expired April 30, 2012. The reimbursement period for this limitation extends through April 30, 2014.
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(d) No reimbursement will be made after the reimbursement date or three years after any waiver or payment, whichever is sooner.
(e) The Equity Index 500 Fund previously operated under a 0.30% expense limitation that expired April 30, 2012. The reimbursement period for this limitation extends through April 30, 2014.
(f) The Global Infrastructure Fund previously operated under a 1.10% expense limitation that expired February 29, 2012.
(g) The Global Infrastructure FundAdvisor Class previously operated under a 1.20% expense limitation that expired February 29, 2012.
(h) The Global Large-Cap Stock Fund previously operated under a 1.00% expense limitation that expired February 28, 2011.
(i) The Global Large-Cap Stock FundAdvisor Class previously operated under a 1.10% expense limitation that expired February 28, 2011.
(j) The Global Real Estate Fund previously operated under a 1.05% expense limitation.
(k) The Global Real Estate FundAdvisor Class previously operated under a 1.15% expense limitation.
(l) 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.
(m) 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.
(n) The Institutional Africa & Middle East Fund previously operated under a 1.25% expense limitation that expired February 28, 2011.
(o) The Institutional Global Equity Fund previously operated under a 0.75% expense limitation that expired February 28, 2009.
(p) The Institutional Global Large-Cap Equity Fund previously operated under a 0.75% expense limitation that expired February 28, 2011.
(q) The Institutional International Growth Equity Fund previously operated under a 0.75% expense limitation that expired February 29, 2012.
(r) 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.
(s) The Institutional Structured Research Fund previously operated under a 0.55% expense limitation that expired April 30, 2012.
(t) The International Stock FundR Class previously operated under a 1.40% expense limitation that expired February 29, 2012.
(u) The New Income FundR Class previously operated under a 1.15% expense limitation that expired September 30, 2010.
(v) The New York Tax-Free Money Fund previously operated under a 0.55% expense limitation that expired June 30, 2011.
(w) The Strategic Income Fund previously operated under a 0.80% expense limitation that expired September 30, 2011.
(x) The Strategic Income FundAdvisor Class previously operated under a 0.95% expense limitation that expired September 30, 2011.
(y) 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.
(z) The U.S. Large-Cap Core Fund previously operated under a 1.15% expense limitation that expired April 30, 2012.
(aa) The U.S. Large-Cap Core FundAdvisor Class previously operated under a 1.20% expense limitation that expired April 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.
121
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.
Capital Opportunity Fund, Capital Opportunity FundAdvisor and R Classes At December 31, 2011, expenses in the amount of $1,000 were reimbursed to the manager. Including these amounts, expenses previously reimbursed by the manager in the amount of $8,000 remain subject to repayment.
Diversified Small-Cap Growth Fund At December 31, 2011, management fees in the amount of $107,000 were repaid to the manager. There were no amounts subject to repayment by the fund. The fund operated below its expense limitation.
Emerging Markets Local Currency Bond Fund At December 31, 2011, management fees in the amount of $129,000 were waived and expenses in the amount of $43,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $172,000 remain subject to repayment.
Equity Index 500 Fund At December 31, 2011, management fees in the amount of $1,477,000 were repaid. Including these amounts, management fees waived in the amount of $3,107,000 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, 2011, management fees in the amount of $212,000 were waived and expenses in the amount of $115,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $1,039,000 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.
122
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, 2011, management fees in the amount of $16,000 were waived. Including these amounts, management fees waived in the amount of $178,000 remain subject to repayment.
Institutional U.S. Structured Research Fund At December 31, 2011, management fees in the amount of $18,000 were waived. Including these amounts, management fees waived in the amount of $304,000 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, 2011, there were 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.
Real Assets Fund At December 31, 2011, there were no amounts 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, 2011, management fees in the amount of $59,000 were waived and expenses in the amount of $78,000 were reimbursed by the manager. Including these amounts, management fees waived and expenses previously reimbursed by the manager in the amount of $463,000 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.
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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.
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.
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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 |
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) |
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Fund | Fiscal Year Ended | ||
5/31/11 | 5/31/10 | 5/31/09 | |
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) |
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) |
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Fund | Fiscal Year Ended | ||
10/31/11 | 10/31/10 | 10/31/09 | |
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 |
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 | ||
12/31/11 | 12/31/10 | 12/31/09 | |
Balanced | $185,000 | $180,000 | $159,000 |
Blue Chip Growth | 113,000 | 101,000 | 86,000 |
Blue Chip Growth FundAdvisor Class | 8,000 | 8,000 | 9,000 |
Blue Chip Growth FundR Class | 1,000 | 1,000 | (a) |
Capital Appreciation | 196,000 | 189,000 | 138,000 |
Capital Appreciation FundAdvisor Class | 5,000 | 4,000 | 2,000 |
Capital Opportunity | 148,000 | 133,000 | 118,000 |
Capital Opportunity FundAdvisor Class | 4,000 | 5,000 | 5,000 |
Capital Opportunity FundR Class | (a) | (a) | (a) |
Diversified Mid-Cap Growth | 90,000 | 83,000 | 68,000 |
Diversified Small-Cap Growth | 90,000 | 83,000 | 68,000 |
Dividend Growth | 102,000 | 94,000 | 81,000 |
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Fund | Fiscal Year Ended | ||
12/31/11 | 12/31/10 | 12/31/09 | |
Dividend Growth FundAdvisor Class | 4,000 | 2,000 | (a) |
Emerging Markets Bond | 185,000 | 180,000 | 157,000 |
Emerging Markets Bond Multi-Sector Account Portfolio | (b) | (b) | (b) |
Emerging Markets Local Currency Bond | 119,000 | (b) | (b) |
Emerging Markets Local Currency Bond FundAdvisor Class | 1,000 | (b) | (b) |
Emerging Markets Local Multi-Sector Account Portfolio | (b) | (b) | (b) |
Equity Income | 110,000 | 99,000 | 87,000 |
Equity Income FundAdvisor Class | 11,000 | 10,000 | 10,000 |
Equity Income Fund FundR Class | 1,000 | 1,000 | 1,000 |
Equity Index 500 | 150,000 | 143,000 | 147,000 |
Extended Equity Market Index | 150,000 | 148,000 | 128,000 |
Financial Services | 90,000 | 83,000 | 68,000 |
Global Real Estate | 197,000 | 189,000 | 177,000 |
Global Real Estate FundAdvisor Class | 4,000 | 4,000 | 5,000 |
Global Technology | 120,000 | 112,000 | 96,000 |
Growth & Income | 90,000 | 83,000 | 69,000 |
Growth Stock | 136,000 | 122,000 | 107,000 |
Growth Stock FundAdvisor Class | 12,000 | 12,000 | 13,000 |
Growth Stock FundR Class | 4,000 | 4,000 | 4,000 |
Health Sciences | 185,000 | 181,000 | 157,000 |
Institutional Emerging Markets Bond | 185,000 | 180,000 | 157,000 |
Institutional International Bond | 185,000 | 180,000 | 157,000 |
Institutional Large-Cap Core Growth | 90,000 | 83,000 | 68,000 |
Institutional Large-Cap Growth | 90,000 | 83,000 | 68,000 |
Institutional Large-Cap Value | 90,000 | 83,000 | 68,000 |
Institutional Mid-Cap Equity Growth | 90,000 | 83,000 | 69,000 |
Institutional Small-Cap Stock | 90,000 | 83,000 | 68,000 |
Institutional U.S. Structured Research | 120,000 | 112,000 | 96,000 |
International Bond | 181,000 | 170,000 | 144,000 |
International Bond FundAdvisor Class | 20,000 | 23,000 | 27,000 |
Media & Telecommunications | 120,000 | 112,000 | 96,000 |
Mid-Cap Growth | 113,000 | 102,000 | 95,000 |
Mid-Cap Growth FundAdvisor Class | 7,000 | 5,000 | 4,000 |
Mid-Cap Growth FundR Class | 2,000 | 1,000 | 1,000 |
Mid-Cap Value | 109,000 | 96,000 | 85,000 |
Mid-Cap Value FundAdvisor Class | 9,000 | 9,000 | 6,000 |
Mid-Cap Value FundR Class | 4,000 | 4,000 | 4,000 |
New America Growth | 98,000 | 93,000 | 81,000 |
New America FundAdvisor Class | 8,000 | 3,000 | 1,000 |
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Fund | Fiscal Year Ended | ||
12/31/11 | 12/31/10 | 12/31/09 | |
New Era | 90,000 | 83,000 | 69,000 |
New Horizons | 120,000 | 112,000 | 96,000 |
Real Assets | 185,000 | 63,000 | (b) |
Real Estate | 157,000 | 154,000 | 106,000 |
Real Estate FundAdvisor Class | 9,000 | 7,000 | 4,000 |
Science & Technology | 118,000 | 109,000 | 113,000 |
Science & Technology FundAdvisor Class | 18,000 | 18,000 | 18,000 |
Small-Cap Stock | 102,000 | 92,000 | 77,000 |
Small-Cap Stock FundAdvisor Class | 4,000 | 4,000 | 5,000 |
Small-Cap Value | 142,000 | 139,000 | 124,000 |
Small-Cap Value FundAdvisor Class | 24,000 | 23,000 | 17,000 |
Spectrum Growth | (c) | (c) | (c) |
Spectrum Income | (c) | (c) | (c) |
Spectrum International | (c) | (c) | (c) |
Total Equity Market Index | 150,000 | 148,000 | 128,000 |
U.S. Large-Cap Core | 105,000 | 94,000 | 39,000 |
U.S. Large-Cap CoreAdvisor Class | 1,000 | 2,000 | (a) |
Value | 103,000 | 93,000 | 77,000 |
Value FundAdvisor Class | 3,000 | 3,000 | 9,000 |
(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 |
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Fund | Payment |
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 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) |
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Fund | Payment |
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) |
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 |
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Fund | Payment |
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) |
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 |
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Fund | Payment |
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 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 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 |
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Fund | Payment |
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) |
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, Extended Equity Market Index, 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,
134
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% 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
135
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.
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 |
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Fund | Fiscal
Year Ended |
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 |
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 | $1,977,000 |
Blue Chip Growth FundR Class | 502,000 |
Capital Appreciation FundAdvisor Class | 685,000 |
Capital Opportunity FundAdvisor Class | 17,000 |
Capital Opportunity FundR Class | 6,000 |
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Fund | Fiscal
Year Ended |
Dividend Growth FundAdvisor Class | 180,000 |
Emerging Markets Local Currency Bond FundAdvisor Class | (a) |
Equity Income FundAdvisor Class | 4,637,000 |
Equity Income FundR Class | 1,189,000 |
Global Real Estate FundAdvisor Class | 2,000 |
Growth Stock FundAdvisor Class | 4,840,000 |
Growth Stock FundR Class | 3,395,000 |
International Bond FundAdvisor Class | 1,342,000 |
Mid-Cap Growth FundAdvisor Class | 2,559,000 |
Mid-Cap Growth FundR Class | 1,444,000 |
Mid-Cap Value FundAdvisor Class | 1,611,000 |
Mid-Cap Value FundR Class | 1,609,000 |
New America Growth FundAdvisor Class | 406,000 |
Real Estate FundAdvisor Class | 373,000 |
Science & Technology FundAdvisor Class | 1,030,000 |
Small-Cap Stock FundAdvisor Class | 661,000 |
Small-Cap Value FundAdvisor Class | 2,602,000 |
U.S. Large-Cap Core FundAdvisor Class | 1,000 |
Value FundAdvisor Class | 852,000 |
(a) Less than $1,000.
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, Price Hong Kong and Price Singapore 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. Price Singapore delegates actual trade execution to the trading desks of T. Rowe Price, T. Rowe Price International, or Price Hong Kong, and may use these affiliated investment advisers for certain other trading-related services.
How Broker-Dealers Are Selected
With respect to equity and debt securities, T. Rowe Price, T. Rowe Price International, Price Hong Kong, or Price Singapore 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, Price Hong Kong, or Price Singapore may receive research services in connection with brokerage transactions, including designations in fixed-price offerings.
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Debt Securities
In purchasing and selling debt securities, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore ordinarily place transactions with the issuer or a primary market-maker acting as principal for the securities on a net basis, with no stated brokerage commission being paid by the client, although the price usually includes undisclosed compensation to the market-maker. 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.
Equity Securities
In purchasing and selling equity securities, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore seek to obtain best 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 to broker-dealers providing brokerage and research services to T. Rowe Price, T. Rowe Price International, and Price Hong Kong than might be paid to other broker-dealers in accordance with Section 28(e) under the 1934 Act.
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 more efficient execution.
As a general practice, transactions involving U.S. equity securities are executed in the primary market with market-makers, or through electronic, low touch trading venues. 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 best execution, orders for foreign equity securities may be placed through T. Rowe Price Internationals or Price Hong Kongs trading desk.
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, Price Hong Kong, and Price Singapore 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, Price Hong Kong, and Price Singapore 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 conducted 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.
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Commissions Paid to Broker-Dealers for Research
Broker-dealers provide a wide range of research services to T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore.
T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore seek best execution on all trades consistent with fiduciary and regulatory requirements. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore have adopted a brokerage allocation policy embodying the concepts of Section 28(e) under the 1934 Act. Section 28(e) permits an investment adviser to cause an account to pay a higher commission to a broker-dealer that also provides research services than the commission another broker-dealer would charge, provided the adviser determines in good faith that the commission paid is reasonable in relation to the value of the brokerage and research services provided. An adviser may make such a determination based upon either the particular transaction involved or the overall responsibilities of the adviser with respect to the accounts over which it exercises investment discretion. Therefore, research may not necessarily benefit all accounts paying commissions to such broker-dealers. Broker-dealers may provide proprietary research to T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore in connection with brokerage relationships, including fixed income offerings.
Certain full service broker-dealers (broker-dealers who provide brokerage and execution services) also furnish bundled proprietary research services to T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore. Bundled research involves an arrangement whereby the underlying commission is informally comprised of both trade execution and other services, most frequently investment research that is intended to assist T. Rowe Price, T. Rowe Price International, Price Hong Kong, and/or Price Singapore with their internal research processes. Such services are typically not offered on a stand-alone basis by broker-dealers. Proprietary research may include research from an affiliate of the broker-dealer and services that provide access to unaffiliated industry experts. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore may use full service brokers either directly or through very limited use of step-outs or similar transactions with other brokers. Step-out trades, however, are not used to obtain research.
In addition, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore may use equity brokerage commissions to acquire third party research from independent research providers and broker-dealers through commission-sharing arrangements (CSAs). While Price Singapore does not currently participate in the CSA program, T. Rowe Price, T. Rowe Price International, and Price Hong Kong maintain CSAs with broker-dealers used for a percentage of low touch commission business. We generally effect low touch trading through broker-dealers electronic venues. We confine the use of CSA credits to obtain only research designed to assist in the investment decision-making process. Our current practice is to not acquire market data services, index data, software and other items with commission dollars, although some of those items are permitted under the SECs guidance. Not all clients participate in the CSA program but the research received through such program is intended to assist T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore with its investment decision making responsibilities regarding its clients overall.
Proprietary and independent third-party research is an important component of T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapores investment approach. However, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore rely primarily upon their own research efforts and subject any outside research services to internal analysis before incorporating such outside research into the investment process. As a practical matter, it would not be possible for T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore to generate all the information and varied opinions provided by broker-dealers. To the extent that broker-dealers provide research services of value, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore are relieved of expenses which they might otherwise bear.
Broker-dealers and independent research providers generally supply the following types of research to T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore: information on the economy, industries, groups of securities, individual companies, statistical information, accounting and tax law interpretations, political developments, legal developments affecting portfolio securities, technical market action, pricing and appraisal services, credit analysis, risk measurement analysis, performance analysis, and analysis of corporate responsibility issues. The research incorporates both domestic and international
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perspectives. Research services are received primarily in the form of written reports, computer generated data, telephone contacts, and personal meetings with security analysts, corporate and industry executives, and other persons. In addition, research may include the provision of access to unaffiliated individuals with expertise in various industries, businesses, or other related areas. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore may receive complimentary and customary fixed income research from various broker-dealers, including broker-dealers with whom fixed income transactions are carried out in accordance with T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapores best execution obligations. Such research, however, is not contingent upon specific trades with the providing broker-dealer. Some research may be incorporated into firm-wide systems or communications thereby allowing, in some instances, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore to access research obtained through commissions generated by an affiliated investment adviser.
At the present time, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore do not recapture commissions, underwriting discounts, or selling-group concessions in connection with fixed income securities acquired in underwritten offerings. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore may, however, have the opportunity to designate a portion of the underwriting spread to broker-dealers that participate in the offering.
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, Price Hong Kong, and Price Singapore 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, Price Hong Kong, and Price Singapore 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, Price Hong Kong, and Price Singapore may choose to allocate brokerage among several broker-dealers that are able to meet the needs of the transaction.
As an ongoing process, T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore assess the contributions of the brokerage and research services provided by major broker-dealers and independent research providers in connection with equity transactions, and creates a ranking of such broker-dealers. Portfolio managers, research analysts, and the trading department each evaluate the brokerage, execution, and research services they receive from broker-dealers and independent research providers and make judgments as to the quality of such services. In addition, smaller specialty broker-dealers and independent research providers are targeted to receive a suggested dollar amount of equity business based on an assessment of services they provide, subject to the fiduciary duties of T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore to seek best execution. Actual commissions received by any firm may not reflect such rankings or suggested targets because brokerage business is allocated on the basis of multiple factors considered in seeking best execution. Accordingly, commission business may be less than the ranking or suggested target but may also often exceed such suggestions. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore do not exclude a broker-dealer from receiving business because the broker-dealer does not provide research services. Price Singapore uses low touch or execution-only brokers where deemed appropriate.
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Allocation of brokerage business is monitored on a regularly scheduled basis by appropriate personnel and the Equity Brokerage and Trading Control Committee. The Fixed Income Brokerage and Trading Control Committee provides similar monitoring and oversight with regard to fixed income trading.
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 or initial 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 may include a system-generated random allocation. For example, adjustments may be made: (i) to eliminate de minimis positions or satisfy minimum denomination requirements; (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 or client may limit availability of allocations to client accounts.
Miscellaneous
The brokerage allocation policies for T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore 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, Price Hong Kong, or Price Singapore effect securities transactions may be used in servicing all accounts (including non-Price Funds) managed by T. Rowe Price, T. Rowe Price International, Price Hong Kong or Price Singapore. 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, Price Hong Kong, or Price Singapore 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, Price Hong Kong, and Price Singapore could have similar investment objectives and programs to those of a particular Price Fund, T. Rowe Price, T. Rowe Price International, Price Hong Kong, or Price Singapore 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, Price Hong Kong, and Price Singapore not to favor one client over another in making recommendations or in placing orders. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore frequently follow the practice of grouping orders of various clients for execution. 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, T. Rowe Price International, Price Hong Kong, and Price Singapore, as applicable, may also include orders on behalf of the Price Funds (including affiliated common trust funds), T. Rowe Price Savings Bank, and not-for-profit entities, T. Rowe Price Foundation, Inc. and the T. Rowe Price Program for Charitable Giving, Inc., in its aggregated orders from time to time.
T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore may give advice and take action for clients, including the Price Funds, which differs from advice given or the timing or nature of action
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taken for other clients. T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore 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 Equity and Fixed Income Brokerage and Trading Control Committees are responsible for developing brokerage policies, monitoring their implementation, and resolving any questions that arise in connection with these policies for T. Rowe Price, T. Rowe Price International, Price Hong Kong, and Price Singapore.
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. Approval may be given for aggregate ownership up to 18%, and in certain instances, higher amounts. All aggregate ownership decisions are 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) |
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Fund | Fiscal Year Ended | |||||
2/28/11 | % | 2/28/10 | % | 2/28/09 | % | |
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) |
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) |
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Fund | Fiscal Year Ended | |||||
5/31/11 | % | 5/31/10 | % | 5/31/09 | % | |
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 |
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) |
145
Fund | Fiscal Year Ended | |||||
10/31/11 | % | 10/31/10 | % | 10/31/09 | % | |
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 | |||||
12/31/11 | % | 12/31/10 | % | 12/31/09 | % | |
Balanced | $1,265,000 | 18.4 | $1,294,000 | 5.3 | $1,738,000 | 15.6 |
Blue Chip Growth | 4,984,000 | 23.1 | 5,311,000 | 2.6 | 8,282,000 | 35.4 |
Capital Appreciation | 13,979,000 | 7.5 | 11,154,000 | 0.6 | 17,381,000 | 9.2 |
Capital Opportunity | 173,000 | 20.1 | 153,000 | 1.8 | 264,000 | 13.9 |
Diversified Mid-Cap Growth | 176,000 | 0.7 | 49,000 | 0.3 | 79,000 | 0.3 |
Diversified Small-Cap Growth | 56,000 | 3.6 | 34,000 | 0.0 | 31,000 | 7.6 |
Dividend Growth | 305,000 | 21.2 | 499,000 | 0.4 | 363,000 | 12.5 |
Emerging Markets Bond | 1,000 | (b) | 6,000 | (b) | (a) | (b) |
Emerging Markets Bond Multi-Sector Account Portfolio | (c) | (c) | (c) | (c) | (c) | (c) |
Emerging Markets Local Currency Bond | 0 | (b) | (c) | (c) | (c) | (c) |
Emerging Markets Local Multi-Sector Account Portfolio | (c) | (c) | (c) | (c) | (c) | (c) |
Equity Income | 5,232,000 | 14.7 | 4,254,000 | 1.7 | 5,217,000 | 17.2 |
Equity Index 500 | 720,000 | 0.2 | 761,000 | 0.0 | 1,617,000 | 0.3 |
Extended Equity Market Index | 56,000 | 1.3 | 51,000 | 0.0 | 57,000 | 0.5 |
Financial Services | 396,000 | 13.2 | 901,000 | 0.2 | 1,312,000 | 9.1 |
Global Real Estate | 433,000 | 12.0 | 569,000 | 0.4 | 328,000 | 17.8 |
Global Technology | 1,526,000 | 17.2 | 992,000 | 18.4 | 575,000 | 18.2 |
Growth & Income | 10,107,000 | 1.6 | 5,849,000 | 6.9 | 12,917,000 | 13.2 |
Growth Stock | 8,104,000 | 20.1 | 9,070,000 | 1.8 | 10,844,000 | 5.4 |
Health Sciences | 1,415,000 | 9.1 | 1,639,000 | 3.0 | 2,638,000 | 0.9 |
Institutional Emerging Markets Bond | (a) | (b) | (a) | (b) | (a) | (b) |
Institutional International Bond | (a) | (b) | (a) | (b) | (a) | (b) |
Institutional Large-Cap Core Growth | 95,000 | 22.9 | 77,000 | 3.2 | 94,000 | 30.9 |
Institutional Large-Cap Growth | 2,187,000 | 19.9 | 1,610,000 | 0.3 | 1,280,000 | 8.5 |
Institutional Large-Cap Value | 230,000 | 15.4 | 146,000 | 1.4 | 193,000 | 15.0 |
Institutional Mid-Cap Equity Growth | 1,654,000 | 16.7 | 555,000 | 0.9 | 648,000 | 9.5 |
Institutional Small-Cap Stock | 554,000 | 9.3 | 499,000 | 1.2 | 455,000 | 10.0 |
Institutional U.S. Structured Research | 352,000 | 19.1 | 279,000 | 1.3 | 200,000 | 10.8 |
International Bond | (a) | (b) | (a) | (b) | (a) | (b) |
Media & Telecommunications | 6,599,000 | 3.6 | 5,074,000 | 3.2 | 3,025,000 | 21.9 |
Mid-Cap Growth | 13,732,000 | 17.5 | 11,744,000 | 0.2 | 16,707,000 | 8.8 |
146
Fund | Fiscal Year Ended | |||||
12/31/11 | % | 12/31/10 | % | 12/31/09 | % | |
Mid-Cap Value | 8,340,000 | 23.7 | 11,430,000 | 1.4 | 20,713,000 | 16.9 |
New America Growth | 1,792,000 | 12.1 | 901,000 | 0.8 | 1,173,000 | 13.1 |
New Era | 3,700,000 | 17.9 | 2,625,000 | 8.8 | 2,571,000 | 16.3 |
New Horizons | 16,444,000 | 6.9 | 13,013,000 | 1.3 | 8,728,000 | 9.9 |
Real Assets | 2,135,000 | 29.3 | 903,000 | 9.8 | (c) | (c) |
Real Estate | 1,061,000 | 16.9 | 3,658,000 | 0.6 | 4,863,000 | 7.1 |
Science & Technology | 5,245,000 | 20.0 | 4,218,000 | 2.2 | 5,789,000 | 12.9 |
Small-Cap Stock | 6,908,000 | 9.2 | 7,812,000 | 1.3 | 7,431,000 | 10.5 |
Small-Cap Value | 1,312,000 | 9.7 | 5,206,000 | 0.1 | 5,791,000 | 2.4 |
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 | 37,000 | 0.3 | 38,000 | 0.0 | 85,000 | 0.3 |
U.S. Large-Cap Core | 22,000 | 2.9 | 9,000 | 0.0 | 7,000 | 0.8 |
Value | 6,089,000 | 30.7 | 7,044,000 | 1.2 | 7,069,000 | 13.2 |
(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 |
147
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 |
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 |
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 |
148
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 |
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 |
149
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 |
150
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 |
151
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 |
Africa & Middle East Fund
Fiscal Year Ended 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 | |
152
European Stock Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
HSBC Brokerage | $12,669 | |
CS First Boston Corp. | | $856 |
Deutsche Bank Securities | | 1,146 |
Global Large-Cap Stock Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs | $438 | |
JPMorgan Chase | 793 | |
CS First Boston Corp. | 374 | |
Citigroup Global Markets, Inc. | 227 | |
Global Stock Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Deutsche Bank Securities | | $185 |
JPMorgan Chase | $21,725 | |
CS First Boston Corp. | | 139 |
Goldman Sachs | 18,076 | |
Institutional Africa & Middle East Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Morgan Stanley & Co Inc. | $4,264 | |
Citigroup Global Markets, Inc. | 3,668 | |
Deutsche Bank Securities | 4,812 | |
HSBC Brokerage | 9,140 | |
Institutional Concentrated International Equity Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
HSBC Brokerage | $169 | |
Institutional Global Equity Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | $5,728 | |
Goldman Sachs | 4,776 | |
Institutional Global Large-Cap Equity Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | $744 | |
CS First Boston Corp. | 361 | |
Citigroup Global Markets, Inc. | 221 | |
Goldman Sachs | 421 | |
153
Institutional International Core Equity Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Credit Suisse Group | $354 | |
Deutsche Bank | 319 | |
Institutional International Growth Equity Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Credit Suisse Group | $912 | |
HSBC Brokerage | 620 | |
International Discovery Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | | $9,445 |
Deutsche Bank Securities | | 12,646 |
International Equity Index Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Deutsche Bank Securities | $1,171 | $773 |
UBS Investment Bank | 1,449 | |
Barclays Capital | 1,140 | |
CS First Boston Corp. | 1,048 | 578 |
Mizuho International Pln, London | 995 | |
Nomura Securities Intl | 425 | |
International Growth & Income Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | $43,322 | $4,049 |
Macquarie Equities USA | 21,705 | |
Deutsche Bank | 30,483 | 5,421 |
HSBC Brokerage | 35,114 | |
International Stock Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Deutsche Bank Securities | | $7,336 |
CS First Boston Corp. | $94,781 | 5,479 |
HSBC Brokerage | 62,615 | |
Japan Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | | $819 |
Deutsche Bank Securities | | 1,097 |
154
Latin America Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Deutsche Bank Securities | | $1,517 |
CS First Boston Corp. | | 1,133 |
New Asia Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | | $4,029 |
Deutsche Bank Securities | | 5,394 |
Overseas Stock Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
CS First Boston Corp. | $19,628 | $6,688 |
Deutsche Bank | 18,866 | 8,954 |
Macquarie Equities USA | 14,495 | |
Summit Cash Reserves Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $239,599 |
Morgan Stanley & Co Inc. | | 63,057 |
BNP Paribas Securities | | 25,002 |
Summit GNMA Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $1,847 |
Morgan Stanley & Co Inc. | | 665 |
Citigroup Global Markets, Inc. | | 813 |
Greenwich Capital Markets | | 40 |
Bank of America Merrill Lynch | | 182 |
CS First Boston Corp. | | 1,268 |
Deutsche Bank Securities | | 813 |
Summit Municipal Money Market Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $11,370 |
Barclays Capital | | 4,660 |
Wells Fargo Securities | | 18,510 |
Summit Municipal Intermediate Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $13,770 |
Goldman Sachs & Co. | | 8,781 |
Wells Fargo Securities | | 2,500 |
155
U.S. Bond Index Fund
Fiscal Year Ended 10/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
JPMorgan Chase | | $10,912 |
Morgan Stanley & Co Inc. | | 16,708 |
Citigroup Global Markets, Inc. | | 9,928 |
Bank of America Merrill Lynch | | 9,370 |
Deutsche Bank Securities | | 2,920 |
Barclays Capital | | 837 |
Greenwich Capital Markets | | 1,591 |
Wells Fargo Securities | | 579 |
BNP Paribas Securities | | 401 |
CS First Boston Corp. | | 2,825 |
Goldman Sachs & Co. | | 8,445 |
Balanced Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | $4,370 | $7,071 |
Goldman Sachs | 3,020 | 3,715 |
J.P. Morgan Chase | 15,575 | 11,454 |
CS First Boston Corp. | 2,215 | 3,722 |
Morgan Stanley & Co Inc. | 5,081 | 5,225 |
Citigroup | 5,614 | 11,671 |
Deutsche Bank Securities | 2,511 | 8,902 |
Barclays Capital | 4,590 | 1,078 |
UBS Financial Services | | 1,762 |
Blue Chip Growth Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | $20,505 | |
Goldman Sachs | 2,252 | |
Wells Fargo Van Kasper | 14,960 | |
Capital Appreciation Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | $122,593 | |
Wells Fargo Van Kasper | 56,162 | |
Capital Opportunity Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | $3,767 | |
Bank of America Merrill Lynch | 995 | |
Goldman Sachs | 1,004 | |
Morgan Stanley & Co Inc. | 918 | |
Citigroup Global Markets, Inc. | 1,770 | |
156
Dividend Growth Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | $24,047 | |
Goldman Sachs | 5,561 | |
Wells Fargo Van Kasper | 33,852 | |
Morgan Stanley & Co Inc. | 3,118 | |
Emerging Markets Bond Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
VTB Capital | | $5,449 |
Equity Income Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Morgan Stanley & Co Inc. | $57,307 | |
J.P. Morgan Chase | 486,487 | |
Bank of America Merrill Lynch | 137,337 | |
Suntrust Robinson Humphrey | 128,603 | |
Equity Index 500 Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs | $52,081 | |
Citigroup Global Markets, Inc. | 89,985 | |
Morgan Stanley & Co Inc. | 26,267 | |
Bank of America Merrill Lynch | 65,647 | |
J.P. Morgan Chase | 147,797 | |
Extended Equity Market Index Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Investment Technology (ITG) | $104 | |
Financial Services Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | $14,567 | |
Bank of America Merrill Lynch | 1,836 | |
Morgan Stanley & Co Inc. | 8,290 | |
Goldman Sachs | 4,087 | |
Citigroup Global Markets, Inc. | 7,464 | |
157
Growth & Income Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | $2,370 | |
Morgan Stanley & Co Inc. | 2,932 | |
Goldman Sachs | 4,395 | |
Suntrust Robinson Humphrey | 5,034 | |
J.P. Morgan Chase | 14,816 | |
Institutional International Bond Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | | $313 |
Deutsche Bank Securities | | 92 |
Goldman Sachs | | 597 |
HSBC Securities Inc. | | 913 |
Bank of America Merrill Lynch | | 572 |
CS First Boston Corp. | | 280 |
Citigroup Global Markets, Inc. | | 759 |
Morgan Stanley & Co Inc. | | 497 |
Barclays Capital | | 647 |
UBS Financial Services | | 308 |
Institutional Large-Cap Core Growth Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs | $63 | |
J.P. Morgan Chase | 469 | |
Institutional Large-Cap Value Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Morgan Stanley & Co Inc. | $11,423 | |
Bank of America Merrill Lynch | 8,117 | |
J.P. Morgan Chase | 19,302 | |
Goldman Sachs | 3,075 | |
Institutional U.S. Structured Research Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Morgan Stanley & Co Inc. | $1,648 | |
Bank of America Merrill Lynch | 1,785 | |
J.P. Morgan Chase | 6,766 | |
Citigroup Global Markets, Inc. | 3,174 | |
Goldman Sachs | 1,858 | |
158
International Bond Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | | $14,362 |
Deutsche Bank Securities | | 3,955 |
HSBC Securities Inc. | | 29,334 |
CS First Boston Corp. | | 12,888 |
Goldman Sachs | | 19,679 |
Bank of America Merrill Lynch | | 12,178 |
Citigroup Global Markets, Inc. | | 23,928 |
Barclays Capital | | 40,962 |
Morgan Stanley & Co Inc. | | 17,250 |
UBS Financial Services | | 8,655 |
New America Growth Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs | $11,756 | |
Small-Cap Stock Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Piper Jaffray | $7,997 | |
Small-Cap Value Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Stifel Nicolaus | $23,797 | |
Total Equity Market Index Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Goldman Sachs | $1,715 | |
Citigroup Global Markets, Inc. | 2,897 | |
Morgan Stanley & Co Inc. | 858 | |
Bank of America Merrill Lynch | 2,092 | |
J.P. Morgan Chase | 4,870 | |
Investment Technology (ITG) | 70 | |
U.S. Large-Cap Core Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
J.P. Morgan Chase | $534 | |
Wells Fargo Securities | 684 | |
159
Value Fund
Fiscal Year Ended 12/31/11 | ||
Brokers | Value of Stock Holdings | Value of Bond Holdings |
Bank of America Merrill Lynch | $74,699 | |
Citigroup Global Markets, Inc. | 75,702 | |
Morgan Stanley & Co Inc. | 95,092 | |
Goldman Sachs | 33,459 | |
J.P. Morgan Chase | 234,080 | |
Portfolio Turnover
The portfolio turnover rates for the funds (if applicable) for the fiscal years indicated are as follows:
Fund | Fiscal Year Ended | |||||
2/28/11 | 2/28/10 | 2/28/09 | ||||
California Tax-Free Bond | 15.3 | % | 16.1 | % | 22.5 | % |
California Tax-Free Money | (a) | (a) | (a) | |||
Floating Rate Multi-Sector Account Portfolio | (b) | (b) | (b) | |||
Georgia Tax-Free Bond | 21.4 | 10.8 | 28.2 | |||
High Yield Multi-Sector Account Portfolio | (b) | (b) | (b) | |||
Investment-Grade Corporate Multi-Sector Account Portfolio | (b) | (b) | (b) | |||
Maryland Short-Term Tax-Free Bond | 31.4 | 19.8 | 23.0 | |||
Maryland Tax-Free Bond | 15.3 | 7.9 | 21.9 | |||
Maryland Tax-Free Money | (a) | (a) | (a) | |||
Mortgage-Backed Securities Multi-Sector Account Portfolio | (b) | (b) | (b) | |||
New Jersey Tax-Free Bond | 18.6 | 10.4 | 12.5 | |||
New York Tax-Free Bond | 15.2 | 10.3 | 21.3 | |||
New York Tax-Free Money | (a) | (a) | (a) | |||
Tax-Efficient Equity | 38.7 | 67.6 | 35.5 | |||
Tax-Exempt Money | (a) | (a) | (a) | |||
Tax-Free High Yield | 24.0 | 16.5 | 28.7 | |||
Tax-Free Income | 15.1 | 16.7 | 41.4 | |||
Tax-Free Short-Intermediate | 18.5 | 7.8 | 24.9 | |||
Virginia Tax-Free Bond | 21.9 | 14.1 | 27.1 |
(a) Money funds are not required to show portfolio turnover.
(b) Prior to commencement of operations.
Fund | Fiscal Year Ended | |||||
5/31/11 | 5/31/10 | 5/31/09 | ||||
Corporate Income | 57.1 | % | 37.7 | % | 36.3 | % |
GNMA | 225.7 | (a) | 79.0 | 108.3 | ||
Floating Rate | (b) | (b) | (b) | |||
TRP Government Reserve Investment | (c) | (c) | (c) |
160
Fund | Fiscal Year Ended | |||||
5/31/11 | 5/31/10 | 5/31/09 | ||||
High Yield | 75.4 | 81.8 | 54.4 | |||
Inflation Focused Bond | 57.2 | 53.2 | 26.7 | |||
Inflation Protected Bond | 18.0 | 11.2 | 33.6 | |||
Institutional Core Plus | 121.5 | 89.8 | 92.7 | |||
Institutional Floating Rate | 67.6 | 95.8 | 74.8 | |||
Institutional High Yield | 77.6 | 89.7 | 46.4 | |||
New Income | 110.7 | 69.0 | 81.5 | |||
Personal Strategy Balanced | 55.1 | 44.4 | 62.4 | |||
Personal Strategy Growth | 49.0 | 44.1 | 55.7 | |||
Personal Strategy Income | 56.3 | 43.9 | 67.1 | |||
Prime Reserve | (c) | (c) | (c) | |||
TRP Reserve Investment | (c) | (c) | (c) | |||
Retirement 2005 | 17.5 | 18.2 | 37.0 | |||
Retirement 2010 | 19.0 | 19.5 | 26.6 | |||
Retirement 2015 | 15.2 | 15.1 | 24.2 | |||
Retirement 2020 | 15.6 | 14.0 | 18.0 | |||
Retirement 2025 | 16.7 | 10.6 | 17.3 | |||
Retirement 2030 | 16.2 | 8.5 | 12.4 | |||
Retirement 2035 | 17.1 | (d) | 6.9 | 10.8 | ||
Retirement 2040 | 15.9 | (d) | 6.6 | 9.7 | ||
Retirement 2045 | 16.8 | 8.5 | 11.9 | |||
Retirement 2050 | 22.8 | (d) | 8.1 | 8.0 | ||
Retirement 2055 | 27.4 | (d) | 11.2 | 19.0 | ||
Retirement Income | 12.5 | 13.7 | 31.8 | |||
Short-Term Bond | 71.9 | (e) | 27.9 | 32.0 | ||
Strategic Income | 70.0 | 112.2 | 88.6 | |||
U.S. Treasury Intermediate | 32.8 | 37.2 | 101.5 | |||
U.S. Treasury Long-Term | 43.1 | 33.3 | 84.1 | |||
U.S. Treasury Money | (c) | (c) | (c) |
(a) The increase in the funds turnover rate was primarily due to an increased focus on purchasing mortgage-backed securities through the to-be-announced (TBA) market. To the extent the fund entered into dollar roll transactions, such transactions were accounted for as both purchases and sales, which also had the effect of increasing the funds portfolio turnover rate.
(b) Prior to commencement of operations.
(c) Money funds are not required to show portfolio turnover.
(d) The increase in the funds turnover rate was primarily due to reallocations resulting from the addition of a new underlying fund.
(e) The increase in the funds turnover rate was in response to market conditions and primarily due to an increased focus on mortgage-backed securities.
161
Fund | Fiscal Year Ended | |||||
10/31/11 | 10/31/10 | 10/31/09 | ||||
Africa & Middle East | 65.9 | % | 91.2 | % | 93.2 | % |
Emerging Europe | 21.7 | 27.7 | 39.7 | |||
Emerging Markets Stock | 18.6 | 26.6 | 37.0 | |||
European Stock | 57.6 | 61.1 | 88.3 | |||
Global Infrastructure | 30.9 | 18.6 | (a) | |||
Global Large-Cap Stock | 133.0 | 120.9 | 122.0 | (b) | ||
Global Stock | 71.4 | 83.3 | 90.2 | |||
Institutional Africa & Middle East | 97.0 | 83.6 | 121.7 | (b) | ||
Institutional Concentrated International Equity | 128.3 | (b) | 14.5 | (a) | ||
Institutional Emerging Markets Equity | 24.3 | 21.6 | 43.5 | |||
Institutional Global Equity | 82.4 | 88.7 | 91.1 | |||
Institutional Global Large-Cap Equity | 138.3 | 107.7 | 128.5 | (b) | ||
Institutional International Core Equity | 15.2 | 2.8 | (a) | |||
Institutional International Growth Equity | 52.0 | 63.8 | 61.4 | |||
International Discovery | 49.3 | 54.8 | 64.5 | |||
International Equity Index | 30.0 | 12.8 | 23.4 | |||
International Growth & Income | 26.3 | 31.3 | 16.6 | |||
International Stock | 43.0 | 54.8 | 65.0 | |||
Japan | 72.1 | 62.0 | 121.5 | |||
Latin America | 14.8 | 14.1 | 21.2 | |||
New Asia | 68.1 | 49.4 | 59.6 | |||
Overseas Stock | 16.7 | 24.8 | 20.9 | |||
Summit Cash Reserves | (c) | (c) | (c) | |||
Summit GNMA | 237.0 | (d) | 112.1 | 61.0 | ||
Summit Municipal Income | 21.0 | 12.1 | 25.1 | |||
Summit Municipal Intermediate | 17.0 | 8.2 | 8.9 | |||
Summit Municipal Money Market | (c) | (c) | (c) | |||
U.S. Bond Enhanced Index | 96.6 | 33.9 | 25.7 |
(a) Prior to commencement of operations.
(b) The increase in the funds portfolio turnover rate was due to the fund only being in operation for a portion of its prior fiscal year.
(c) Money funds are not required to show portfolio turnover.
(d) The increase in the funds turnover rate was primarily due to an increased focus on purchasing mortgage-backed securities through the to-be-announced (TBA) market. To the extent the fund entered into dollar roll transactions, such transactions were accounted for as both purchases and sales, which also had the effect of increasing the funds portfolio turnover rate.
162
Fund | Fiscal Year Ended | |||||
12/31/11 | 12/31/10 | 12/31/09 | ||||
Balanced | 57.9 | % | 44.5 | % | 43.1 | % |
Blue Chip Growth | 44.2 | 46.8 | 60.0 | |||
Capital Appreciation | 81.3 | 66.3 | 86.0 | |||
Capital Opportunity | 36.6 | 37.6 | 43.2 | |||
Diversified Mid-Cap Growth | 42.1 | 27.5 | 31.3 | |||
Diversified Small-Cap Growth | 16.9 | 18.5 | 27.7 | |||
Dividend Growth | 10.4 | 15.9 | 14.3 | |||
Emerging Markets Bond | 50.1 | 35.3 | 37.0 | |||
Emerging Markets Bond Multi-Sector Account Portfolio | (a) | (a) | (a) | |||
Emerging Markets Local Currency Bond | 49.6 | (a) | (a) | |||
Emerging Markets Local Multi-Sector Account Portfolio | (a) | (a) | (a) | |||
Equity Income | 15.3 | 12.4 | 13.5 | |||
Equity Index 500 | 5.5 | 8.2 | 4.8 | |||
Extended Equity Market Index | 18.9 | 14.2 | 18.2 | |||
Financial Services | 40.0 | 55.7 | 83.5 | |||
Global Real Estate | 8.2 | 6.5 | 12.4 | |||
Global Technology | 110.5 | 135.3 | 109.9 | |||
Growth & Income | 9.0 | 7.5 | 17.7 | |||
Growth Stock | 29.5 | 42.2 | 59.0 | |||
Health Sciences | 23.3 | 36.4 | 33.4 | |||
Institutional Emerging Markets Bond | 49.9 | 57.6 | 31.3 | |||
Institutional International Bond | 49.5 | 82.2 | 68.6 | |||
Institutional Large-Cap Core Growth | 36.6 | 44.8 | 60.2 | |||
Institutional Large-Cap Growth | 57.6 | 60.1 | 60.9 | |||
Institutional Large-Cap Value | 19.3 | 16.6 | 15.3 | |||
Institutional Mid-Cap Equity Growth | 38.3 | 36.7 | 45.1 | |||
Institutional Small-Cap Stock | 22.3 | 28.9 | 36.9 | |||
Institutional U.S. Structured Research | 47.8 | 40.5 | 41.2 | |||
International Bond | 35.7 | 61.5 | 57.6 | |||
Media & Telecommunications | 41.1 | 41.8 | 68.9 | |||
Mid-Cap Growth | 30.6 | 30.1 | 30.7 | |||
Mid-Cap Value | 53.6 | 46.4 | 58.1 | |||
New America Growth | 32.1 | 60.3 | 67.7 | |||
New Era | 26.5 | 26.7 | 20.5 | |||
New Horizons | 43.7 | 46.1 | 26.6 | |||
Real Assets | 30.0 | 12.5 | (a) | |||
Real Estate | 4.9 | 12.8 | 19.5 | |||
Science & Technology | 77.4 | 68.3 | 110.9 | |||
Small-Cap Stock | 23.7 | 19.5 | 28.2 |
163
Fund | Fiscal Year Ended | |||||
12/31/11 | 12/31/10 | 12/31/09 | ||||
Small-Cap Value | 5.5 | 11.7 | 7.8 | |||
Spectrum Growth | 13.0 | 7.4 | 10.3 | |||
Spectrum Income | 14.7 | 13.4 | 16.0 | |||
Spectrum International | 8.2 | 8.7 | 15.7 | |||
Total Equity Market Index | 6.2 | 8.1 | 9.0 | |||
U.S. Large-Cap Core | 74.0 | 60.7 | 37.1 | |||
Value | 53.0 | 29.5 | 20.2 |
(a) Prior to commencement of operations.
PricewaterhouseCoopers LLP, 100 East Pratt Street, Suite 1900, Baltimore, Maryland 21202, is the independent registered public accounting firm to the funds.
The financial statements and Report of Independent Registered Public Accounting Firm of the funds included in each funds annual report are incorporated into this SAI by reference. A copy of the annual report of each fund with respect to which an inquiry is made will accompany this SAI.
164
The following financial statements are provided in accordance with the Investment Company Act of 1940, which requires a registered investment company to have a net worth of at least $100,000.
||RP||
T. ROWE PRICE EMERGING MARKETS BOND MULTI-SECTOR ACCOUNT PORTFOLIO | ||||||||||
February 9, 2012 | ||||||||||
STATEMENT OF ASSETS AND LIABILITIES |
|
|
|
| ||||||
| ||||||||||
Assets | ||||||||||
Cash | $ | 100,000 | ||||||||
NET ASSETS | $ | 100,000 | ||||||||
OFFERING AND REDEMPTION PRICE | $ | 10.00 | ||||||||
Net Assets Consist of: | ||||||||||
Paid-in-capital applicable to 10,000 shares of $0.0001 | ||||||||||
par value capital stock outstanding; 1,000,000,000 | ||||||||||
shares of the corporation authorized | $ | 100,000 |
The accompanying notes are an integral part of this financial statement.
165
T. ROWE PRICE EMERGING MARKETS BOND MULTI-SECTOR ACCOUNT PORTFOLIO
NOTE TO FINANCIAL STATEMENTS
T. Rowe Price Multi-Sector Account Portfolios, Inc. (the corporation), was organized on October 13, 2011, as a Maryland corporation and is registered under the Investment Company Act of 1940. The Emerging Markets Bond Multi-Sector Account Portfolio (the fund), is a non-diversified, open-end management company, and is one of the series portfolios established by the corporation. The fund will be available for investment only to institutional accounts managed by T. Rowe Price Associates, Inc., and will not be available for direct purchase by members of the public. Through February 9, 2012, the fund had no operations other than those matters related to organization and registration as an investment company, the registration of shares for sale under the Securities Act of 1933, and the sale of 10,000 shares of the corporation at $10.00 per share on February 8, 2012, to T. Rowe Price Associates, Inc., via share exchange from a T. Rowe Price money market mutual fund. The exchange was settled in the ordinary course of business on February 9, 2012, with the transfer of $100,000 cash.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by management. Management believes that estimates are appropriate; however, actual results may differ from those estimates.
Federal Income Taxes The fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes.
NOTE 2 RELATED PARTIES
The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The investment management agreement between the fund and Price Associates provides for no investment management fee; however, the manager will earn fees from managing the institutional accounts invested in the fund. Further, the manager will be required to bear all expenses of the fund, including custody expenses in excess of a specified custody fee limitation but excluding interest and borrowing-related charges, taxes, brokerage commissions, and extraordinary expenses. The agreement provides that the fund will bear custody expenses up to the custody fee limitation, equal to 0.025% of the funds average net assets. Accordingly, all costs related to organization and offering of the fund are borne by the manager.
Pursuant to various service agreements, Price Associates and its wholly owned subsidiaries will provide shareholder servicing and administrative, transfer and dividend disbursing, accounting, and certain other services to the fund.
166
T. ROWE PRICE EMERGING MARKETS LOCAL MULTI-SECTOR ACCOUNT PORTFOLIO | ||||||||||
February 9, 2012 | ||||||||||
STATEMENT OF ASSETS AND LIABILITIES |
|
|
|
| ||||||
| ||||||||||
Assets | ||||||||||
Cash | $ | 100,000 | ||||||||
NET ASSETS | $ | 100,000 | ||||||||
OFFERING AND REDEMPTION PRICE | $ | 10.00 | ||||||||
Net Assets Consist of: | ||||||||||
Paid-in-capital applicable to 10,000 shares of $0.0001 | ||||||||||
par value capital stock outstanding; 1,000,000,000 | ||||||||||
shares of the corporation authorized | $ | 100,000 |
The accompanying notes are an integral part of this financial statement.
167
T. ROWE PRICE EMERGING MARKETS LOCAL MULTI-SECTOR ACCOUNT PORTFOLIO
NOTE TO FINANCIAL STATEMENTS
T. Rowe Price Multi-Sector Account Portfolios, Inc. (the corporation), was organized on October 13, 2011, as a Maryland corporation and is registered under the Investment Company Act of 1940. The Emerging Markets Local Multi-Sector Account Portfolio (the fund), is a non-diversified, open-end management company and is one of the series portfolios established by the corporation. The fund will be available for investment only to institutional accounts managed by T. Rowe Price Associates, Inc., and will not be available for direct purchase by members of the public. Through February 9, 2012, the fund had no operations other than those matters related to organization and registration as an investment company, the registration of shares for sale under the Securities Act of 1933, and the sale of 10,000 shares of the corporation at $10.00 per share on February 8, 2012, to T. Rowe Price Associates, Inc., via share exchange from a T. Rowe Price money market mutual fund. The exchange was settled in the ordinary course of business on February 9, 2012, with the transfer of $100,000 cash.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by management. Management believes that estimates are appropriate; however, actual results may differ from those estimates.
Federal Income Taxes The fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes.
NOTE 2 RELATED PARTIES
The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. Price Associates has entered into a sub-advisory agreement with T. Rowe Price International Ltd, a wholly owned subsidiary of Price Associates, to provide investment advisory services to the fund.
The investment management agreement between the fund and Price Associates provides for no investment management fee; however, the manager will earn fees from managing the institutional accounts invested in the fund. Further, the manager will be required to bear all expenses of the fund, including custody expenses in excess of a specified custody fee limitation but excluding interest and borrowing-related charges, taxes, brokerage commissions, and extraordinary expenses. The agreement provides that the fund will bear custody expenses up to the custody fee limitation, equal to 0.025% of the funds average net assets. Accordingly, all costs related to organization and offering of the fund are borne by the manager.
Pursuant to various service agreements, Price Associates and its wholly owned subsidiaries will provide shareholder servicing and administrative, transfer and dividend disbursing, accounting, and certain other services to the fund.
168
T. ROWE PRICE FLOATING RATE MULTI-SECTOR ACCOUNT PORTFOLIO | ||||||||||
February 9, 2012 | ||||||||||
STATEMENT OF ASSETS AND LIABILITIES |
|
|
|
| ||||||
| ||||||||||
Assets | ||||||||||
Cash | $ | 100,000 | ||||||||
NET ASSETS | $ | 100,000 | ||||||||
OFFERING AND REDEMPTION PRICE | $ | 10.00 | ||||||||
Net Assets Consist of: | ||||||||||
Paid-in-capital applicable to 10,000 shares of $0.0001 | ||||||||||
par value capital stock outstanding; 1,000,000,000 | ||||||||||
shares of the corporation authorized | $ | 100,000 |
The accompanying notes are an integral part of this financial statement.
169
T. ROWE PRICE FLOATING RATE MULTI-SECTOR ACCOUNT PORTFOLIO
NOTE TO FINANCIAL STATEMENTS
T. Rowe Price Multi-Sector Account Portfolios, Inc. (the corporation), was organized on October 13, 2011, as a Maryland corporation and is registered under the Investment Company Act of 1940. The Floating Rate Multi-Sector Account Portfolio (the fund), is a diversified, open-end management company and is one of the series portfolios established by the corporation. The fund will be available for investment only to institutional accounts managed by T. Rowe Price Associates, Inc., and will not be available for direct purchase by members of the public. Through February 9, 2012, the fund had no operations other than those matters related to organization and registration as an investment company, the registration of shares for sale under the Securities Act of 1933, and the sale of 10,000 shares of the corporation at $10.00 per share on February 8, 2012, to T. Rowe Price Associates, Inc., via share exchange from a T. Rowe Price money market mutual fund. The exchange was settled in the ordinary course of business on February 9, 2012, with the transfer of $100,000 cash.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by management. Management believes that estimates are appropriate; however, actual results may differ from those estimates.
Federal Income Taxes The fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes.
NOTE 2 RELATED PARTIES
The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The investment management agreement between the fund and Price Associates provides for no investment management fee; however, the manager will earn fees from managing the institutional accounts invested in the fund. Further, the manager will be required to bear all expenses of the fund, including custody expenses in excess of a specified custody fee limitation but excluding interest and borrowing-related charges, taxes, brokerage commissions, and extraordinary expenses. The agreement provides that the fund will bear custody expenses up to the custody fee limitation, equal to 0.01% of the funds average net assets. Accordingly, all costs related to organization and offering of the fund are borne by the manager.
Pursuant to various service agreements, Price Associates and its wholly owned subsidiaries will provide shareholder servicing and administrative, transfer and dividend disbursing, accounting, and certain other services to the fund.
170
T. ROWE PRICE HIGH YIELD MULTI-SECTOR ACCOUNT PORTFOLIO | ||||||||||
February 9, 2012 | ||||||||||
STATEMENT OF ASSETS AND LIABILITIES |
|
|
|
| ||||||
| ||||||||||
Assets | ||||||||||
Cash | $ | 100,000 | ||||||||
NET ASSETS | $ | 100,000 | ||||||||
OFFERING AND REDEMPTION PRICE | $ | 10.00 | ||||||||
Net Assets Consist of: | ||||||||||
Paid-in-capital applicable to 10,000 shares of $0.0001 | ||||||||||
par value capital stock outstanding; 1,000,000,000 | ||||||||||
shares of the corporation authorized | $ | 100,000 |
The accompanying notes are an integral part of this financial statement.
171
T. ROWE PRICE HIGH YIELD MULTI-SECTOR ACCOUNT PORTFOLIO
NOTE TO FINANCIAL STATEMENTS
T. Rowe Price Multi-Sector Account Portfolios, Inc. (the corporation), was organized on October 13, 2011, as a Maryland corporation and is registered under the Investment Company Act of 1940. The High Yield Multi-Sector Account Portfolio (the fund), is a diversified, open-end management company and is one of the series portfolios established by the corporation. The fund will be available for investment only to institutional accounts managed by T. Rowe Price Associates, Inc., and will not be available for direct purchase by members of the public. Through February 9, 2012, the fund had no operations other than those matters related to organization and registration as an investment company, the registration of shares for sale under the Securities Act of 1933, and the sale of 10,000 shares of the corporation at $10.00 per share on February 8, 2012, to T. Rowe Price Associates, Inc., via share exchange from a T. Rowe Price money market mutual fund. The exchange was settled in the ordinary course of business on February 9, 2012, with the transfer of $100,000 cash.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by management. Management believes that estimates are appropriate; however, actual results may differ from those estimates.
Federal Income Taxes The fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes.
NOTE 2 RELATED PARTIES
The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The investment management agreement between the fund and Price Associates provides for no investment management fee; however, the manager will earn fees from managing the institutional accounts invested in the fund. Further, the manager will be required to bear all expenses of the fund, including custody expenses in excess of a specified custody fee limitation but excluding interest and borrowing-related charges, taxes, brokerage commissions, and extraordinary expenses. The agreement provides that the fund will bear custody expenses up to the custody fee limitation, equal to 0.01% of the funds average net assets. Accordingly, all costs related to organization and offering of the fund are borne by the manager.
Pursuant to various service agreements, Price Associates and its wholly owned subsidiaries will provide shareholder servicing and administrative, transfer and dividend disbursing, accounting, and certain other services to the fund.
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T. ROWE PRICE INVESTMENT-GRADE CORPORATE MULTI-SECTOR ACCOUNT PORTFOLIO | ||||||||||
February 9, 2012 | ||||||||||
STATEMENT OF ASSETS AND LIABILITIES |
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Assets | ||||||||||
Cash | $ | 100,000 | ||||||||
NET ASSETS | $ | 100,000 | ||||||||
OFFERING AND REDEMPTION PRICE | $ | 10.00 | ||||||||
Net Assets Consist of: | ||||||||||
Paid-in-capital applicable to 10,000 shares of $0.0001 | ||||||||||
par value capital stock outstanding; 1,000,000,000 | ||||||||||
shares of the corporation authorized | $ | 100,000 |
The accompanying notes are an integral part of this financial statement.
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T. ROWE PRICE INVESTMENT-GRADE CORPORATE MULTI-SECTOR ACCOUNT PORTFOLIO
NOTE TO FINANCIAL STATEMENTS
T. Rowe Price Multi-Sector Account Portfolios, Inc. (the corporation), was organized on October 13, 2011, as a Maryland corporation and is registered under the Investment Company Act of 1940. The Investment-Grade Corporate Multi-Sector Account Portfolio (the fund), is a diversified, open-end management company and is one of the series portfolios established by the corporation. The fund will be available for investment only to institutional accounts managed by T. Rowe Price Associates, Inc., and will not be available for direct purchase by members of the public. Through February 9, 2012, the fund had no operations other than those matters related to organization and registration as an investment company, the registration of shares for sale under the Securities Act of 1933, and the sale of 10,000 shares of the corporation at $10.00 per share on February 8, 2012, to T. Rowe Price Associates, Inc., via share exchange from a T. Rowe Price money market mutual fund. The exchange was settled in the ordinary course of business on February 9, 2012, with the transfer of $100,000 cash.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by management. Management believes that estimates are appropriate; however, actual results may differ from those estimates.
Federal Income Taxes The fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes.
NOTE 2 RELATED PARTIES
The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The investment management agreement between the fund and Price Associates provides for no investment management fee; however, the manager will earn fees from managing the institutional accounts invested in the fund. Further, the manager will be required to bear all expenses of the fund, including custody expenses in excess of a specified custody fee limitation but excluding interest and borrowing-related charges, taxes, brokerage commissions, and extraordinary expenses. The agreement provides that the fund will bear custody expenses up to the custody fee limitation, equal to 0.01% of the funds average net assets. Accordingly, all costs related to organization and offering of the fund are borne by the manager.
Pursuant to various service agreements, Price Associates and its wholly owned subsidiaries will provide shareholder servicing and administrative, transfer and dividend disbursing, accounting, and certain other services to the fund.
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T. ROWE PRICE MORTGAGE-BACKED SECURITIES MULTI-SECTOR ACCOUNT PORTFOLIO | ||||||||||
February 9, 2012 | ||||||||||
STATEMENT OF ASSETS AND LIABILITIES |
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Assets | ||||||||||
Cash | $ | 100,000 | ||||||||
NET ASSETS | $ | 100,000 | ||||||||
OFFERING AND REDEMPTION PRICE | $ | 10.00 | ||||||||
Net Assets Consist of: | ||||||||||
Paid-in-capital applicable to 10,000 shares of $0.0001 | ||||||||||
par value capital stock outstanding; 1,000,000,000 | ||||||||||
shares of the corporation authorized | $ | 100,000 |
The accompanying notes are an integral part of this financial statement.
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T. ROWE PRICE MORTGAGE-BACKED SECURITIES MULTI-SECTOR ACCOUNT PORTFOLIO
NOTE TO FINANCIAL STATEMENTS
T. Rowe Price Multi-Sector Account Portfolios, Inc. (the corporation), was organized on October 13, 2011, as a Maryland corporation and is registered under the Investment Company Act of 1940. The Mortgage-Backed Securities Multi-Sector Account Portfolio (the fund), is a diversified, open-end management company and is one of the series portfolios established by the corporation. The fund will be available for investment only to institutional accounts managed by T. Rowe Price Associates, Inc., and will not be available for direct purchase by members of the public. Through February 9, 2012, the fund had no operations other than those matters related to organization and registration as an investment company, the registration of shares for sale under the Securities Act of 1933, and the sale of 10,000 shares of the corporation at $10.00 per share on February 8, 2012, to T. Rowe Price Associates, Inc., via share exchange from a T. Rowe Price money market mutual fund. The exchange was settled in the ordinary course of business on February 9, 2012, with the transfer of $100,000 cash.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by management. Management believes that estimates are appropriate; however, actual results may differ from those estimates.
Federal Income Taxes The fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute to shareholders all of its taxable income and gains. Distributions determined in accordance with federal income tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes.
NOTE 2 RELATED PARTIES
The fund is managed by T. Rowe Price Associates, Inc. (Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The investment management agreement between the fund and Price Associates provides for no investment management fee; however, the manager will earn fees from managing the institutional accounts invested in the fund. Further, the manager will be required to bear all expenses of the fund, including custody expenses in excess of a specified custody fee limitation but excluding interest and borrowing-related charges, taxes, brokerage commissions, and extraordinary expenses. The agreement provides that the fund will bear custody expenses up to the custody fee limitation, equal to 0.02% of the funds average net assets. Accordingly, all costs related to organization and offering of the fund are borne by the manager.
Pursuant to various service agreements, Price Associates and its wholly owned subsidiaries will provide shareholder servicing and administrative, transfer and dividend disbursing, accounting, and certain other services to the fund.
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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
T. Rowe Price Multi-Sector Account Portfolios, Inc.:
In our opinion, the accompanying statements of assets and liabilities present fairly, in all material respects, the financial position of the T. Rowe Price Emerging Markets Bond Multi-Sector Account Portfolio, T. Rowe Price Investment-Grade Corporate Multi-Sector Account Portfolio, T. Rowe Price Floating Rate Multi-Sector Account Portfolio, T. Rowe Price Emerging Markets Local Multi-Sector Account Portfolio, T. Rowe Price High Yield Multi-Sector Account Portfolio and T. Rowe Price Mortgage-Backed Securities Multi-Sector Account Portfolio, six series of the T. Rowe Multi-Sector Account Portfolios, Inc. (the Portfolios) at February 9, 2012, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Portfolios management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 14, 2012
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PART II TABLE OF CONTENTS
Page
Investment Objectives and Policies | |
Risk Factors | |
Portfolio Securities | |
Derivatives | |
Portfolio Management Practices | |
Investment Restrictions | |
Custodian | |
Code of Ethics | |
Disclosure of Fund Portfolio | |
Information | |
Pricing of Securities | |
Net Asset Value Per Share |
Page
Dividends and Distributions | |
In-Kind Redemptions and Purchases | |
Tax Status | |
Capital Stock | |
Organization of the Funds | |
Proxy Voting Process and Policies | |
Federal Registration of Shares | |
Legal Counsel | |
Ratings of Commercial Paper | |
Ratings of Corporate Debt Securities | |
Ratings of Municipal Notes and | |
Variable Rate Securities |
Part II of this SAI describes risks, policies, and practices that apply to the funds in the T. Rowe Price family of funds.
The following information supplements the discussion of the funds investment objectives and policies discussed in the funds prospectuses. You should refer to each funds prospectus to determine the types of securities in which the fund invests. You will then be able to review additional information set forth herein on those types of securities and their risks.
Shareholder approval is required to substantively change fund objectives. Unless otherwise specified, the investment programs and restrictions of the funds are not fundamental policies. The funds operating policies are subject to change by the funds Boards without shareholder approval. The funds fundamental policies may not be changed without the approval of at least a majority of the outstanding shares of the funds or, if it is less, 67% of the shares represented at a meeting of shareholders at which the holders of more than 50% of the shares are represented.
You may also refer to the sections entitled Portfolio Securities and Portfolio Management Practices for discussions of the risks associated with the investments and practices described therein as they apply to the funds.
Risk Factors of Investing in Foreign Securities
General
Foreign securities include both U.S. dollar-denominated and non-U.S. dollar-denominated securities of foreign issuers. Foreign securities include securities issued by companies that are organized under the laws of
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countries other than the U.S. as well as securities that are issued or guaranteed by foreign governments or by foreign supranational entities. They also include securities issued by companies whose principal trading market is in a country other than the U.S. and companies that derive a significant portion of their revenue or profits from foreign businesses, investments or sales, or that have a majority of their assets outside the United States. Foreign securities may be traded on foreign securities exchanges or in the foreign OTC markets. Foreign securities markets generally are not as developed or efficient as those in the United States.
Investing in foreign securities, as well as instruments that provide investment exposure to foreign securities and markets, involves risks that are not typically associated with investing in U.S. dollar-denominated securities of domestic issuers. Certain of these risks are inherent in any mutual fund investing in foreign securities while others relate more to the countries and regions in which the funds may invest. Many of the risks are more pronounced for investments in emerging market countries, such as Russia and many of the countries of Africa, Asia, Eastern Europe, Latin America, and the Middle East. There are no universally accepted criteria used to determine which countries are considered developed markets and which are considered emerging markets. However, the funds rely on the classification made for a particular country by MSCI Barra, an unaffiliated, third-party provider of benchmark indexes, investment tools, and data services for institutions worldwide.
· Political, Social, and Economic Risks Foreign investments involve risks unique to the local political, economic, tax, and regulatory structures in place, as well as the potential for social instability, military unrest, or diplomatic developments that could prove adverse to the interests of U.S. investors. The economies of many of the countries in which the funds may invest are not as developed as the U.S. and individual foreign economies can differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rate of inflation, capital reinvestment, resource self-sufficiency, and balance of payments position. In addition, war and terrorism have affected many countries, especially those in Africa and the Middle East. Many countries throughout the world are dependent on a healthy U.S. economy and are adversely affected when the U.S. economy weakens or its markets decline. For example, in 2007 and 2008, the meltdown in the U.S. subprime mortgage market quickly spread throughout global credit markets, triggering a liquidity crisis that affected debt and equity markets around the world.
Governments in certain foreign countries continue to participate to a significant degree, through ownership interest or regulation, in their respective economies. Action by these governments could have a significant effect on market prices of securities and payment of dividends. The economies of many foreign countries are heavily dependent upon international trade and are accordingly affected by protective trade barriers and economic conditions of their trading partners. The enactment by these trading partners of protectionist trade legislation could have a significant adverse effect upon the securities markets of such countries.
· Currency Risks Investments in foreign securities will normally be denominated in foreign currencies. Accordingly, a change in the value of any such currency against the U.S. dollar will result in a corresponding change in the U.S. dollar value of the funds holdings denominated in that currency. Generally, when a given currency appreciates against the U.S. dollar (e.g., because the U.S. dollar weakens or the particular foreign currency strengthens), the value of the funds securities denominated in that currency will rise. When a given currency depreciates against the U.S. dollar (e.g., because the U.S. dollar strengthens or the particular foreign currency weakens), the value of the funds securities denominated in that currency will decline. The value of fund assets may also be affected by losses and other expenses incurred in converting between various currencies in order to purchase and sell foreign securities, and by currency restrictions, exchange control regulations, and currency devaluations. In addition, a change in the value of a foreign currency against the U.S. dollar could result in a change in the amount of income available for distribution. If a portion of a funds investment income may be received in foreign currencies, the fund will be required to compute its income in U.S. dollars for distribution to shareholders, and therefore the fund will absorb the cost of currency fluctuations.
· Investment and Repatriation Restrictions Foreign investment in the securities markets of certain foreign countries is restricted or controlled to varying degrees. These restrictions limit and, at times, preclude investment in such countries and increase the cost and expenses of the funds. Investments by foreign investors are subject to a variety of restrictions in many emerging market countries. These restrictions may take the form
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of prior governmental approval, limits on the amount or type of securities held by foreigners, and limits on the types of companies in which foreigners may invest. Additional or different restrictions may be imposed at any time by these or other countries in which the funds invest. In addition, the repatriation of both investment income and capital from several foreign countries is restricted and controlled under certain regulations, including in some cases the need for certain government consents.
· Market and Trading Characteristics Foreign securities markets are generally not as developed or efficient as, and more volatile than, those in the United States. While growing in volume, they usually have substantially less volume than U.S. markets and the funds foreign portfolio securities may be less liquid, more difficult to value, and subject to more rapid and erratic price movements than securities of comparable U.S. companies. Foreign securities may trade at price/earnings multiples higher than comparable U.S. securities and such levels may not be sustainable. Commissions on foreign securities trades are generally higher than commissions on U.S. exchanges, and while there are an increasing number of overseas securities markets that have adopted a system of negotiated rates, a number are still subject to an established schedule of minimum commission rates. There is generally less government supervision and regulation of foreign securities exchanges, brokers, and listed companies than in the United States.
Moreover, overall settlement practices for transactions in foreign markets may differ from those in U.S. markets. Such differences include delays beyond periods customary in the U.S. and practices, such as delivery of securities prior to receipt of payment, which increase the likelihood of a failed settlement. Failed settlements can result in losses to the funds. In certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct transactions. Delays in clearance and settlement could result in temporary periods when assets of the funds are uninvested and no return is earned. The inability of a fund to make intended security purchases due to clearance and settlement problems could cause the fund to miss attractive investment opportunities. The inability of a fund to sell portfolio securities due to clearance and settlement problems could result either in losses to the fund due to subsequent declines in the value of the portfolio security or, if the fund has entered into a contract to sell the security, liability to the purchaser. Military unrest, war, terrorism, and other factors could result in securities markets closing unexpectedly for an extended period, during which a fund would lose the ability to either purchase or sell securities traded in that market. Finally, certain foreign markets are open for trading on days when the funds do not calculate their net asset value. Therefore, the values of a funds holdings in those markets may be affected on days when shareholders have no access to the fund.
· Depositary Receipts It is expected that most foreign securities will be purchased in OTC markets or on securities exchanges located in the countries in which the issuers of the various securities are located, provided that is the best available market. However, the funds may also purchase American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), which are certificates evidencing ownership of underlying foreign securities, as alternatives to directly purchasing the foreign securities in their local markets and currencies. An advantage of ADRs and GDRs is that investors do not have to buy shares through the issuing companys home exchange, which may be difficult or expensive. ADRs and GDRs are subject to many of the same risks associated with investing directly in foreign securities.
Generally, ADRs are denominated in U.S. dollars and are designed for use in the U.S. securities markets. The depositaries that issue ADRs are usually U.S. financial institutions, such as a bank or trust company, but the underlying securities are issued by a foreign issuer.
GDRs may be issued in U.S. dollars or other currencies and are generally designed for use in securities markets outside the United States. GDRs represent shares of foreign securities that can be traded on the exchanges of the depositarys country. The issuing depositary, which may be a foreign or a U.S. entity, converts dividends and the share price into the shareholders home currency.
For purposes of a funds investment policies, investments in ADRs and GDRs are deemed to be investments in the underlying securities. For example, an ADR representing ownership of common stock will be treated as common stock.
· Participation Notes The funds may gain exposure to securities in certain foreign markets through investments in participation notes (P-notes). For instance, a fund may purchase P-notes while it is awaiting approval
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from a foreign exchange to trade securities directly in that market as well as to invest in foreign markets that restrict foreign investors, such as the funds, from investing directly in individual securities traded on that exchange. P-notes are generally issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying equity security. An investment in a P-note involves additional risks beyond the risks normally associated with a direct investment in the underlying security and the P-notes performance may differ from the underlying securitys performance. While the holder of a P-note is entitled to receive from the broker-dealer or bank any dividends paid by the underlying security, the holder is not entitled to the same rights (e.g., voting rights) as an owner of the underlying stock. P-notes are considered general unsecured contractual obligations of the banks or broker-dealers that issue them as the counterparty. As such, the funds must rely on the creditworthiness of the counterparty for its investment returns on the P-notes and would have no rights against the issuer of the underlying security. There is also no assurance that there will be a secondary trading market for a P-note or that the trading price of a P-note will equal the value of the underlying security. Additionally, issuers of P-notes and the calculation agent may have broad authority to control the foreign exchange rates related to the P-notes and discretion to adjust the P-notes terms in response to certain events.
· Investment Funds The funds may invest in investment funds which have been authorized by the governments of certain countries specifically to permit foreign investment in securities of companies listed and traded on the stock exchanges in these respective countries. Investment in these funds is subject to the provisions of the 1940 Act. If the funds invest in such investment funds, shareholders will bear not only their proportionate share of the expenses of the fund (including operating expenses and the fees of the investment manager), but also will indirectly bear similar expenses of the underlying investment funds. In addition, the securities of these investment funds may trade at a premium over their net asset value.
· Financial Information and Governance There is generally less publicly available information about foreign companies when compared to the reports and ratings that are published about companies in the United States. Many foreign companies are not subject to uniform accounting, auditing and financial reporting standards, practices, and requirements comparable to those applicable to U.S. companies, and there may be less stringent investor protection and disclosure standards. It also is often more difficult to keep currently informed of corporate actions, which can adversely affect the prices of portfolio securities.
· Taxes The dividends and interest payable on certain of the funds foreign portfolio securities may be subject to foreign withholding taxes, thus reducing the net amount of income available for distribution to the funds shareholders. In addition, some governments may impose a tax on purchases by foreign investors of certain securities that trade in their country.
· Higher Costs Investors should understand that the expense ratios of funds investing primarily in foreign securities can be expected to be higher than funds that invest mainly in domestic securities. Reasons include the higher costs of maintaining custody of foreign securities, higher advisory fee rates paid by funds to investment advisers for researching and selecting foreign securities, and brokerage commission rates and trading costs that tend to be more expensive in foreign markets than in the United States.
· Other Risks With respect to certain foreign countries, especially emerging markets, there is the possibility of adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of the funds, or diplomatic developments which could affect investments by U.S. persons in those countries. Further, the funds may find it difficult or be unable to enforce ownership rights, pursue legal remedies, or obtain judgments in foreign courts. Evidence of securities ownership may be uncertain in many foreign countries. In many of these countries, the most notable of which is the Russian Federation, the ultimate evidence of securities ownership is the share register held by the issuing company or its registrar. While some companies may issue share certificates or provide extracts of the companys share register, these are not negotiable instruments and are not effective evidence of securities ownership. In an ownership dispute, the companys share register is controlling.
· Europe
Europe includes both developed and emerging markets. Europes economies are diverse, its governments are decentralized, and its cultures vary widely. Unemployment in Europe has historically been higher than in the
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U.S. and public deficits have been an ongoing concern in many European countries.
Fiscal Constraints Most developed countries in western Europe are members of the European Union (EU), and many are also members of the European Economic and Monetary Union (EMU). European countries can be significantly affected by the tight fiscal and monetary controls that the EMU imposes on its members and with which candidates for EMU membership are required to comply. Member countries are required to maintain tight controls over inflation, public debt, and budget deficits, and these requirements can severely limit EMU member countries ability to implement monetary policy to address local or regional economic conditions. The private and public sectors debt problems of a single EU country can pose economic risks to the EU as a whole.
Eurozone Debt Crisis While certain EU countries continue to use their own currency, there is a collective group of EU countries, known as the Eurozone, that use the euro as their currency. Although the Eurozone has adopted a common currency and central bank, there is no fiscal union and therefore money does not automatically flow from countries with surpluses to those with fiscal deficits. Several Eurozone countries are facing serious deficits and budget issues, some of which may have negative long-term effects for the economies of not just Eurozone countries but all of Europe. These rising government debt levels have increased market volatility and the probability of a recession, led to emergency financing for certain countries, and increased speculation that additional EU countries will require bailouts. These events have also cast doubts over the ability of Eurozone policymakers to agree on solutions to the debt crisis and further stressed the European banking system as lending continues to tighten. Ongoing stress in the banking system and rising deficits could lead to downgrades of European sovereign debt, which would have a negative effect on banks and companies doing business in Europe. As a result of the Eurozone debt crisis, there is continued concern over national-level support for the euro, which could lead to the implementation of currency controls, certain countries leaving the EU, or potentially a breakup of the Eurozone and dissolution of the euro. A breakup of the Eurozone, particularly a disorderly breakup, would pose special challenges for the financial markets and could lead to exchange controls and/or market closures. In the event of a Eurozone default or breakup, some of the most significant challenges faced by the funds with euro-denominated holdings and derivatives involving the euro would include diminished market liquidity, operational issues relating to the settlement of trades, difficulty in establishing the fair values of holdings, and the redenomination of holdings into other currencies.
· Emerging Europe, Middle East, and Africa
The economies of the countries of emerging Europe, the Middle East, and Africa, sometimes referred to as EMEA, are all considered emerging market economies, and they tend to be highly reliant on the exportation of commodities.
Political and Military Instability Many formerly communist, eastern European countries have experienced significant political and economic reform in recent years, and the eastward expansion of the EU could help to further anchor this reform process. However, the democratization process is still relatively new in a number of the smaller states and political turmoil and popular uprisings remain threats. Russia has made advances in establishing a new political outlook and a market economy, but political risk remains high and steps that Russia may take to assert its geopolitical influence may increase the tensions in the region and affect economic growth. Many Middle Eastern economies have little or no democratic tradition and are led by family structures. Opposition parties are often banned, leading to dissidence and militancy. Despite a growing trend toward a democratic process, many African nations have a history of dictatorship, military intervention, and corruption. War, terrorism, and military takeovers could result in a securities market unexpectedly closing for an extended period, which would restrict a fund from selling its securities that are traded in that market. In all parts of EMEA, such developments, if they were to recur, could reverse favorable trends toward economic and market reform, privatization, and removal of trade barriers, and result in significant disruptions in securities markets.
Foreign Currency Certain countries in the region may have managed currencies which are pegged to the U.S. dollar or the euro, rather than at levels determined by the market. This type of system can lead to sudden and large adjustments in the currency, which may, in turn, have a disruptive and negative effect on investors. There is no significant foreign exchange market for certain currencies, and it would, as a result, be difficult for
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the funds to engage in foreign currency transactions designed to protect the value of the funds interests in securities denominated in such currencies.
Energy/Resources Russia, the Middle East, and many African nations are highly reliant on income from oil sales. Oil prices can have a major impact on these economies. Other commodities such as base and precious metals are also important to these economies. As global supply and demand for commodities fluctuates, the EMEA economies can be significantly impacted by the prices of such commodities.
Custody and Settlement Because of the underdeveloped state of Russias financial and legal systems, the settlement, clearing, and registration of securities transactions are subject to heightened risks. Equity securities in Russia are issued only in book entry form, and ownership records are maintained in a decentralized fashion by registrars who are under contract with the issuers. Although a funds Russian sub-custodian maintains copies of the registrars records on its premises, such records may not be legally sufficient to establish ownership of securities. The registrars are not necessarily subject to effective state supervision nor are they licensed with any governmental entity. Although a fund investing in Russian securities seeks to ensure through its custodian that its interest continues to be appropriately recorded, it is possible that a fraudulent act may deprive the fund of its ownership rights or improperly dilute its interest. In addition, it is possible that a registrar could be suspended or its license revoked, which would impact a funds holdings at that registrar until the suspension is lifted or the companies records are transferred to an alternative registrar. Finally, although applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for a fund to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration.
· Latin America
The majority of Latin American countries have been characterized at various times by high interest rates and unemployment rates, inflation, an over-reliance on commodity trades, and government intervention.
Inflation Most Latin American countries have experienced, at one time or another, severe and persistent levels of inflation, including, in some cases, hyperinflation. This has, in turn, led to high interest rates, extreme measures by governments to keep inflation in check, and a generally debilitating effect on economic growth. Although inflation in many countries has lessened, there is no guarantee it will remain at lower levels.
Political Instability and Government Control Certain Latin American countries have been marred by political uncertainty, intervention by the military in civilian and economic spheres, and political corruption. Such developments, if they were to recur, could reverse favorable trends toward market and economic reform, privatization, and removal of trade barriers, and result in significant disruption in securities markets. Many Latin American governments have exercised significant influence over their countrys economies, which can have significant effects on companies doing business in Latin America and the securities they issue. These governments have often changed monetary, taxation, credit, tariff, and other policies to alter the direction of their economies. Actions to control inflation have involved the setting of wage and price controls, blocking access to bank accounts, imposing exchange controls, and limiting imports. Investments in Brazilian securities may be subject to certain restrictions on foreign investment. Brazilian law provides that whenever a serious imbalance in Brazils balance of payments exists or is anticipated, the Brazilian government may impose temporary restrictions on the remittance to foreign investors, such as the funds, of proceeds from the sale of Brazilian securities.
Foreign Currency Certain Latin American countries may experience sudden and large adjustments in their currency which, in turn, can have a disruptive and negative effect on foreign investors. Certain Latin American countries may impose restrictions on the free conversion of their currency into other currencies, including the U.S. dollar. There is no significant foreign exchange market for many Latin American currencies and it would, as a result, be difficult for the funds to engage in foreign currency transactions designed to protect the value of the funds interests in securities denominated in such currencies.
Sovereign Debt A number of Latin American countries have been among the largest debtors of emerging market countries. There have been moratoria on, and reschedulings of, repayment with respect to these debts. Such events can restrict the flexibility of these debtor nations in the international markets and result in the imposition of onerous conditions on their economies.
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Foreign Trade Because commodities, such as agricultural products, minerals, oil, and metals, represent a significant percentage of exports of many Latin American countries, the economies of those countries are particularly sensitive to fluctuations in commodity prices, currencies and global demand for commodities.
· Japan
A strong work ethic, mastery of high technology, and emphasis on education helped Japan advance with extraordinary speed from the 1960s through the 1980s to become one of the largest economic powers along with the U.S. and the EU. However, growth slowed markedly in the 1990s and Japans economy fell into a long recession. After a few years of mild recovery in the mid-2000s, the Japanese economy fell into another recession in part due to the recent global economic crisis. This economic recession was likely compounded by an unstable financial sector, low domestic consumption, and certain corporate structural weaknesses, which remain some of the major issues facing the Japanese economy.
Banking System A pressing need to sustain Japans economic recovery and improve its economic growth is the task of overhauling the nations financial institutions. Banks, in particular, may have to reform themselves to become more competitive. While successful financial sector reform would contribute to Japans economic recovery at home and would benefit other economies in Asia, internal conflict over the proper way to reform the banking system continues to exist.
Natural Disasters Japan has experienced natural disasters, such as earthquakes and tidal waves, of varying degrees of severity. The risks of such phenomena, and the resulting damage, continue to exist and could have a severe and negative impact on a funds holdings in Japanese securities. Japan also has one of the worlds highest population densities. A significant percentage of the total population of Japan is concentrated in the metropolitan areas of Tokyo, Osaka, and Nagoya. Therefore, a natural disaster centered in or very near to one of these cities could have a particularly devastating effect on Japans financial markets. Japans recovery from the recession has been affected by economic distress resulting from the earthquake and resulting tsunami that struck northeastern Japan in March 2011 causing major damage along the coast, including damage to nuclear power plants in the region. Since the earthquake, Japans financial markets have fluctuated dramatically.
Energy Importation Japan has historically depended on oil for most of its energy requirements. Almost all of its oil is imported, the majority from the Middle East. In the past, oil prices have had a major impact on the domestic economy, but more recently Japan has worked to reduce its dependence on oil by encouraging energy conservation and use of alternative fuels. In addition, a restructuring of industry, with emphasis shifting from basic industries to processing and assembly type industries, has contributed to the reduction of oil consumption. However, there is no guarantee that this favorable trend will continue.
Foreign Trade Overseas trade is important to Japans economy and Japans economic growth is significantly driven by its exports. Japan has few natural resources and must export to pay for its imports of these basic requirements. A significant portion of Japans trade is conducted with emerging market countries, almost all of which are located in East and Southeast Asia, and it can be affected by conditions in these other countries and currency fluctuations. Because of the concentration of Japanese exports in highly visible products such as automobiles and technology, and the large trade surpluses ensuing therefrom, Japan has had difficult relations with its trading partners, particularly the United States. Japans aging and shrinking population increases the cost of the countrys pension and public welfare system and lowers domestic demand, making Japan even more dependent on exports to sustain its economy. It is possible that trade sanctions or other protectionist measures could impact Japan adversely in both the short term and long term.
· Asia (excluding Japan)
Asia includes countries in all stages of economic development, some of which have been characterized at times by over-extension of credit, currency fluctuations, devaluations, and restrictions, unstable employment rates, over-reliance on exports, and less efficient markets. Currency fluctuations or devaluations in any one country can have a significant effect on the entire region. Furthermore, increased political and social unrest in some Asian countries could cause further economic and market uncertainty in the entire region.
Political and Social Instability The political history of some Asian countries has been characterized by political uncertainty, intervention by the military in civilian and economic spheres, and political corruption.
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Such developments, if they continue to occur, could reverse favorable trends toward market and economic reform, privatization, and removal of trade barriers, and could result in significant disruption to securities markets. For example, there is a demilitarized border and hostile relations between North and South Korea, and the Taiwanese economy has been affected by security threats from China. China remains a totalitarian country with continuing risk of nationalization, expropriation, or confiscation of property and its legal system is still developing, making it more difficult to obtain or enforce judgments. At times, religious, cultural and military disputes within and outside India have caused volatility in the Indian securities markets and such disputes could adversely affect the value and liquidity of a funds investments in Indian securities in the future.
Foreign Currency Certain Asian countries may have managed currencies which are maintained at artificial levels to the U.S. dollar rather than at levels determined by the market. This type of system can lead to sudden and large adjustments in the currency which, in turn, can have a disruptive and negative effect on foreign investors. Certain Asian countries also may restrict the free conversion of their currency into foreign currencies, including the U.S. dollar. There is no significant foreign exchange market for certain currencies, and it would, as a result, be difficult for the funds to engage in foreign currency transactions designed to protect the value of the funds interests in securities denominated in such currencies.
Interrelated Economies and International Trade A number of Asian companies are highly dependent on foreign loans for their operation, some of which may impose strict repayment term schedules and require significant economic and financial restructuring. The economies of many countries in the region are heavily dependent on international trade and are accordingly affected by protective trade barriers and the economic conditions of their trading partners. China has had an increasingly significant and positive impact on the global economy, but its continued success depends on its ability to retain the legal and financial policies on that have fostered economic freedom and market expansion. The Hong Kong, Taiwanese, and Chinese economies can be dependent on the economies of other countries and can be significantly affected by currency fluctuations and increasing competition from Asias other low-cost emerging economies. These China region economies can also be significantly affected by general social, economic, and political conditions in China and other countries. The willingness and ability of the Chinese government to support the Hong Kong and Chinese economies and markets is uncertain. China has yet to develop comprehensive securities, corporate, or commercial laws, and its market is relatively new and undeveloped. Also, foreign investments may be restricted. Changes in government policy could significantly affect the local markets.
China A-Shares The China Securities Regulatory Commission (CSRC) has the authority to grant qualified foreign institutional investor (QFII) licenses, which allow foreign investments in A-shares on the Shanghai and Shenzhen Stock Exchanges and certain other securities historically not eligible for investment by non-Chinese investors. Each QFII is authorized to invest in China A-shares only up to a specified quota established by the Chinese State Administration of Foreign Exchange (SAFE). T. Rowe Price has received a QFII license permitting it to invest a portion of the assets of the Emerging Markets Stock, Institutional Emerging Markets Equity, International Discovery, and New Asia Funds in local Chinese securities. Although the laws of China permit the use of nominee accounts for clients of investment managers who are QFIIs, the Chinese regulators require the securities trading and settlement accounts to be maintained in the name of the QFII. Chinese regulators have been made aware that T. Rowe Price is acting as investment manager only and that any assets invested in A-shares belong to the funds. The funds custodian bank will maintain a specific sub-account for the A-share investments in the name of each fund. However, there is a risk that creditors of T. Rowe Price may assert that T. Rowe Price, and not the individual fund, is the legal owner of the securities and other assets in the accounts. If a court upholds such an assertion, creditors of T. Rowe Price could seek payment from the funds A-share investments.
Additional risks include a potential lack of liquidity, greater price volatility, and restrictions on the repatriation of invested capital. Because of low trading volume and various restrictions on the free flow of capital into the A-share market, the A-share market could be less liquid and trading prices of A-shares could be more volatile than other local securities markets. In addition, net realized profits on fund investments in A-shares may only be repatriated under certain conditions and upon the approval of SAFE.
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Risk Factors of Investing in Taxable Debt Obligations
General
Yields on short-, intermediate-, and long-term securities are dependent on a variety of factors, including the general conditions of the money, bond, and foreign exchange markets; the size of a particular offering; the maturity of the obligation; and the rating of the issue. Debt securities with longer maturities tend to carry higher yields and are generally subject to greater capital appreciation and depreciation than obligations with shorter maturities and lower yields. The market prices of debt securities usually vary, depending upon available yields. An increase in interest rates will generally reduce the value of portfolio investments, and a decline in interest rates will generally increase the value of portfolio investments. The ability of funds investing in debt securities to achieve their investment objectives is also dependent on the continuing ability of the issuers of the debt securities in which the funds invest to meet their obligations for the payment of interest and principal when due.
After purchase by the funds, a debt security may cease to be rated or its rating may be reduced below the minimum required for purchase by the funds. Neither event will require a sale of such security by the funds. However, such events will be considered in determining whether the funds should continue to hold the security. To the extent that the ratings given by Moodys, S&P, or others may change as a result of changes in such organizations or their rating systems, the funds will attempt to use comparable ratings as standards for investments in accordance with the investment policies contained in the prospectus. The ratings of Moodys, S&P, and others represent their opinions as to the quality of securities that they undertake to rate. Ratings are not absolute standards of quality. When purchasing unrated securities, T. Rowe Price, under the supervision of the funds Boards, determines whether the unrated security is of a quality comparable to that which the funds are allowed to purchase.
Full Faith and Credit Securities
Securities backed by the full faith and credit of the United States (for example, GNMA and U.S. Treasury securities) are generally considered to be among the most, if not the most, creditworthy investments available. While the U.S. government has honored its credit obligations continuously for the last 200 years, political events have, at times, called into question whether the United States would default on its obligations. Such an event would be unprecedented and there is no way to predict its results on the securities markets or the funds. However, it is very likely that default by the United States would result in losses to the funds.
Mortgage Securities
Mortgage-backed securities, including Government National Mortgage Association (Ginnie Mae or GNMA) securities differ from conventional bonds in that principal is paid back over the life of the security rather than at maturity. As a result, the holder of a mortgage-backed security (i.e., a fund) receives monthly scheduled payments of principal and interest, and may receive unscheduled principal payments representing prepayments on the underlying mortgages. Therefore, GNMA securities may not be an effective means of locking in long-term interest rates due to the need for the funds to reinvest scheduled and unscheduled principal payments. The incidence of unscheduled principal prepayments is also likely to increase in mortgage pools owned by the funds when prevailing mortgage loan rates fall below the mortgage rates of the securities underlying the individual pool. The effect of such prepayments in a falling rate environment is to (1) cause the funds to reinvest principal payments at the then lower prevailing interest rate, and (2) reduce the potential for capital appreciation beyond the face amount of the security and adversely affect the return to the funds. Conversely, in a rising interest rate environment such prepayments can be reinvested at higher prevailing interest rates which will reduce the potential effect of capital depreciation to which bonds are subject when interest rates rise. When interest rates rise and prepayments decline, GNMA securities become subject to extension risk or the risk that the price of the securities will fluctuate more. In addition, prepayments of mortgage securities purchased at a premium (or discount) will cause such securities to be paid off at par, resulting in a loss (gain) to the funds. T. Rowe Price will actively manage the funds portfolios in an attempt to reduce the risk associated with investment in mortgage-backed securities.
The market value of adjustable rate mortgage securities (ARMs), like other U.S. government securities, will generally vary inversely with changes in market interest rates, declining when interest rates rise and rising
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when interest rates decline. Because of their periodic adjustment feature, ARMs should be more sensitive to short-term interest rates than long-term rates. They should also display less volatility than long-term mortgage-backed securities. Thus, while having less risk of a decline during periods of rapidly rising rates, ARMs may also have less potential for capital appreciation than other investments of comparable maturities. Interest rate caps on mortgages underlying ARMs may prevent income on the ARMs from increasing to prevailing interest rate levels and cause the securities to decline in value. In addition, to the extent ARMs are purchased at a premium, mortgage foreclosures and unscheduled principal prepayments may result in some loss of the holders principal investment to the extent of the premium paid. On the other hand, if ARMs are purchased at a discount, both a scheduled payment of principal and an unscheduled prepayment of principal will increase current and total returns and will accelerate the recognition of income that, when distributed to shareholders, will be taxable as ordinary income.
High-Yield Securities
Special Risks of Investing in Junk Bonds The following special considerations are additional risk factors of funds investing in lower-rated securities.
· Lower-Rated Debt Securities An economic downturn or increase in interest rates is likely to have a greater negative effect on this market, the value of lower-rated debt securities in the funds portfolios, the funds net asset value and the ability of the bonds issuers to repay principal and interest, meet projected business goals, and obtain additional financing than on higher-rated securities. These circumstances also may result in a higher incidence of defaults than with respect to higher-rated securities. Investment in funds which invest in lower-rated debt securities is more risky than investment in shares of funds which invest only in higher-rated debt securities.
· Sensitivity to Interest Rate and Economic Changes Prices of lower-rated debt securities may be more sensitive to adverse economic changes or corporate developments than higher-rated investments. Debt securities with longer maturities, which may have higher yields, may increase or decrease in value more than debt securities with shorter maturities. Market prices of lower-rated debt securities structured as zero-coupon or pay-in-kind securities are affected to a greater extent by interest rate changes and may be more volatile than securities which pay interest periodically and in cash. Where it deems it appropriate and in the best interests of fund shareholders, the funds may incur additional expenses to seek recovery on a debt security on which the issuer has defaulted and to pursue litigation to protect the interests of security holders of its portfolio companies.
· Liquidity and Valuation Because the market for lower-rated securities may be thinner and less active than for higher-rated securities, there may be market price volatility for these securities and limited liquidity in the resale market. Nonrated securities are usually not as attractive to as many buyers as rated securities are, a factor which may make nonrated securities less marketable. These factors may have the effect of limiting the availability of the securities for purchase by the funds and may also limit the ability of the funds to sell such securities at their fair value either to meet redemption requests or in response to changes in the economy or the financial markets.
Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of lower-rated debt securities, especially in a thinly traded market. To the extent the funds own or may acquire illiquid or restricted lower-rated securities, these securities may involve special registration responsibilities, liabilities, costs, and liquidity and valuation difficulties. Changes in values of debt securities which the funds own will affect its net asset value per share. If market quotations are not readily available for the funds lower-rated or nonrated securities, these securities will be valued by a method that the funds Boards believe accurately reflects fair value. Judgment plays a greater role in valuing lower-rated debt securities than with respect to securities for which more external sources of quotations and last sale information are available.
· Taxation Special tax considerations are associated with investing in lower-rated debt securities structured as zero-coupon or pay-in-kind securities. The funds accrue income on these securities prior to the receipt of cash payments. The funds must distribute substantially all of its income to its shareholders to qualify for pass-
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through treatment under the tax laws and may, therefore, have to dispose of portfolio securities to satisfy distribution requirements.
Risk Factors of Investing in Municipal Securities
General
Yields on municipal securities are dependent on a variety of factors, including the general conditions of the money market and the municipal bond market, the size of a particular offering, the maturity of the obligations, and the rating of the issue. Municipal securities with longer maturities tend to produce higher yields and are generally subject to potentially greater capital appreciation and depreciation than obligations with shorter maturities and lower yields. The market prices of municipal securities usually vary, depending upon available yields. An increase in interest rates will generally reduce the value of portfolio investments, and a decline in interest rates will generally increase the value of portfolio investments. The ability of all the funds to achieve their investment objectives is also dependent on the continuing ability of the issuers of municipal securities in which the funds invest to meet their obligations for the payment of interest and principal when due. The ratings of Moodys, S&P, and Fitch IBCA, Inc. (Fitch) represent their opinions as to the quality of municipal securities which they undertake to rate. Ratings are not absolute standards of quality; consequently, municipal securities with the same maturity, coupon, and rating may have different yields. There are variations in municipal securities, both within a particular classification and between classifications, depending on numerous factors. In 2010, Moodys and Fitch recalibrated their ratings of municipal securities so they could use a single ratings scale for both municipal and corporate debt securities. This resulted in upgrades to ratings of certain municipal issuers based on the change in methodology and not on improvements in credit quality. It should also be pointed out that, unlike other types of investments, offerings of municipal securities have traditionally not been subject to regulation by, or registration with, the SEC, although there have been proposals which would provide for regulation in the future.
The federal bankruptcy statutes relating to the debts of political subdivisions and authorities of states of the United States provide that, in certain circumstances, such subdivisions or authorities may be authorized to initiate bankruptcy proceedings without prior notice to or consent of creditors, which proceedings could result in material and adverse changes in the rights of holders of their obligations.
Proposals have been introduced in Congress to restrict or eliminate the federal income tax exemption for interest on municipal securities, and similar proposals may be introduced in the future. Proposed Flat Tax and Value Added Tax proposals would also have the effect of eliminating the tax preference for municipal securities. Some of the past proposals would have applied to interest on municipal securities issued before the date of enactment, which would have adversely affected their value to a material degree. If such a proposal were enacted, the availability of municipal securities for investment by the funds and the value of a funds portfolio would be affected and, in such an event, the funds would reevaluate their investment objectives and policies. Also, recent changes to tax laws broadly lowering tax rates, including lower tax rates on dividends and capital gains, could have a negative impact on the desirability of owning municipal securities.
Although the banks and securities dealers with which the funds will transact business will be banks and securities dealers that T. Rowe Price believes to be financially sound, there can be no assurance that they will be able to honor their obligations to the funds with respect to such transactions.
Municipal Bond Insurance The funds may purchase insured bonds from time to time. Municipal bond insurance provides an unconditional and irrevocable guarantee that the insured bonds principal and interest will be paid when due. Insurance does not guarantee the price of the bond. The guarantee is purchased from a private, nongovernmental insurance company.
There are two types of insured securities that may be purchased by the funds: bonds carrying either (1) new issue insurance; or (2) secondary insurance. New issue insurance is purchased by the issuer of a bond in an effort to improve the bonds credit rating. By meeting the insurers standards and paying an insurance premium based on the bonds principal value, the issuer may be able to obtain a higher credit rating for the bond. The credit rating assigned to an insured municipal bond will usually reflect the financial strength of the
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issuer or insurer, whichever is higher. Once purchased, municipal bond insurance cannot be canceled, and the protection it affords continues as long as the bonds are outstanding and the insurer remains solvent.
The funds may also purchase bonds that carry secondary insurance purchased by an investor after a bonds original issuance. Such policies insure a security for the remainder of its term. Generally, the funds expect that portfolio bonds carrying secondary insurance will have been insured by a prior investor. However, the funds may, on occasion, purchase secondary insurance on their own behalf.
Each of the municipal bond insurance companies has established reserves to cover estimated losses. Both the method of establishing these reserves and the amount of the reserves vary from company to company. The risk that a municipal bond insurance company may experience a claim extends over the life of each insured bond. Municipal bond insurance companies are obligated to pay a bonds interest and principal when due if the issuing entity defaults on the insured bond. Defaults on insured municipal bonds have been fairly low to date, but certain of these insurers ratings have been downgraded and they are no longer insuring newly issued bonds. It is possible that there could be additional insurer downgrades and that default rates on insured bonds could increase substantially, which could further deplete an insurers loss reserves and adversely affect the ability of a municipal bond insurer to pay claims to holders of insured bonds, such as the funds. The inability of an insurer to pay a particular claim, or a downgrade of the insurers rating, could adversely affect the values of all the bonds it insures despite the quality of the underlying issuer. The number of municipal bond insurers is relatively small and, therefore, a significant amount of a municipal bond funds assets may be insured by a single issuer.
High-Yield Securities Lower-quality bonds, commonly referred to as junk bonds, are regarded as predominantly speculative with respect to the issuers continuing ability to meet principal and interest payments. Because investment in low- and lower-medium-quality bonds involves greater investment risk, to the extent the funds invest in such bonds, achievement of their investment objectives will be more dependent on T. Rowe Prices credit analysis than would be the case if the funds were investing in higher-quality bonds. High-yield bonds may be more susceptible to real or perceived adverse economic conditions than investment-grade bonds. A projection of an economic downturn or higher interest rates, for example, could cause a decline in high-yield bond prices because the advent of such events could lessen the ability of highly leveraged issuers to make principal and interest payments on their debt securities. In addition, the secondary trading market for high-yield bonds may be less liquid than the market for higher-grade bonds, which can adversely affect the ability of the funds to dispose of their portfolio securities. Bonds for which there is only a thin market can be more difficult to value because objective pricing data may be less available and judgment would therefore play a greater role in the valuation process.
Risk Factors of Investing in Taxable and Tax-Free Money Market Funds
The T. Rowe Price money market funds will limit their purchases of portfolio instruments to those U.S. dollar-denominated securities which the funds Boards determine present minimal credit risk and which are eligible securities as defined in Rule 2a-7 under the 1940 Act. Eligible securities are generally securities which have been rated (or whose issuer has been rated or whose issuer has comparable securities rated) in one of the two highest short-term rating categories (which may include sub-categories) by nationally recognized statistical rating organizations (NRSROs) or, in the case of any instrument that is not so rated, is of comparable high quality as determined by T. Rowe Price pursuant to written guidelines established under the supervision of the funds Boards. In addition, the funds may treat variable and floating rate instruments with demand features as short-term securities pursuant to Rule 2a-7 under the 1940 Act.
There can be no assurance that the funds will achieve their investment objectives or be able to maintain their net asset values per share at $1.00. The price of the funds is not guaranteed or insured by the U.S. government and their yields are not fixed. While the funds invest in high-grade money market instruments, investment in the funds is not without risk even if all portfolio instruments are paid in full at maturity. An increase in interest rates could reduce the value of the funds portfolio investments, and a decline in interest rates could increase the value.
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State Tax-Free Funds
The following information about the state tax-free funds is updated in June of each year. More current information is available in shareholder reports for these funds.
California Tax-Free Bond and California Tax-Free Money Funds
Risk Factors Associated with a California Portfolio
The funds concentration in the debt obligations of a single state carries a higher risk than a portfolio that is more geographically diversified.
Types of Municipal Debt The funds invest in municipal bonds and other municipal debt instruments issued by the state of California and its various political subdivisions and agencies. The issuers of these debt obligations include the state of California and its agencies and authorities, counties and municipalities and their agencies and authorities, various California public institutions of higher education, and certain California not-for-profit organizations (e.g., hospitals, private colleges, and nursing homes). The credit quality and risks of these investments will vary according to each securitys structure and underlying economics.
Debt is issued for a wide variety of public purposes, including transportation, housing, education, electric power, and healthcare. The state of California, and its local governments, agencies and authorities, issue two basic types of debt: general obligation bonds and revenue bonds. General obligation bonds are backed by the unlimited taxing power of the issuer. However, bonds issued by certain counties, municipalities, and agencies of the state and local government are not backed by the full faith and credit of the state. Revenue bonds are typically secured by specific pledged fees or charges for a related project, such as fees generated from the use of facilities or enterprises financed by the bonds. As part of its cash management program, the state regularly issues short-term notes to meet its disbursement requirements in advance of the receipt of revenues. Included within the revenue bond sector are tax-exempt lease obligations that are subject to annual appropriations of a governmental body, usually with no implied tax or specific revenue pledge. Local governments also raise capital through the use of Mello-Roos, 1915 Act Bonds, and Tax Increment Bonds, all of which are generally riskier than general obligation debt as they often rely on tax revenues to be generated by future development for their support.
The funds may also invest in private activity bond issues for corporate and nonprofit borrowers. Sold through various governmental conduits, these issues are backed solely by the revenues pledged by the respective borrowing corporations. No governmental support is provided or implied.
Political and Legislative Conditions Certain provisions of the California state constitution and state statutes limit the taxing and spending authority of California governmental entities, thus affecting their ability to meet debt service obligations. For example, the constitution limits ad valorem taxes on real property to 1% of full cash value and restricts the ability of taxing entities to increase real property taxes. It also prohibits the state from spending revenues beyond its annually adjusted appropriations limit. Yet another provision further restricts the ability of local governments to levy and collect existing and future taxes, assessments, and fees. In addition to limiting the financial flexibility of local governments in the state, the provision also increases the possibility of voter-determined tax rollbacks and repeals.
One effect of the tax and spending limitations in California has been a broad scale shift by local governments away from general obligation debt requiring voter approval and pledging of future tax revenues toward lease revenue financing that is subject to abatement and does not require voter approval. Lease-backed debt is generally viewed as a less secure form of borrowing and therefore entails greater credit risk.
Future initiatives, if proposed and adopted, or future court decisions could create renewed pressure on California governments and their ability to raise revenues. Although Orange County notably filed for protection under the U.S. Bankruptcy Code in 1994, overall the state and its underlying governments have displayed flexibility in overcoming the negative effects of past initiatives.
Economic and Financial Conditions To a large degree, the credit risk of the portfolios is dependent upon the financial strength of the state of California, its localities and agencies. Financial strength is, in turn, influenced by changing economic conditions which affect the level of taxes collected and revenues earned. While
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Californias economy has been diverse and resilient, and is typically the largest among the 50 states, the state of California is also normally among the most highly indebted states in the nation. The state has historically experienced more extreme swings in employment levels and property values relative to the rest of the country. In addition, California is more prone to earthquakes and other natural disasters, which can result in sudden economic downturns and the unexpected inability of issuers to meet their obligations, as well as a long-lasting negative impact on the overall California municipal securities market. More detailed information regarding economic conditions and the financial strength of California is available in the funds annual and semi-annual shareholder reports.
Sectors Investment concentration in a particular sector can present unique risks. For example, a significant portion of the funds assets may be invested in issues related to health care providers. The hospital industry has been under significant pressure to reduce expenses and shorten length of hospital stays, a phenomenon that has negatively affected the financial health of some hospitals. All hospitals are dependent on third-party reimbursement mechanisms that are typically complex, subject to numerous conditions, and uncertain as to how long they will continue.
The funds may from time to time invest in electric revenue issues. The financial performance of these utilities was impacted by the industrys moves toward deregulation and increased competition. Californias original electric utility restructuring plan proved to be flawed as it placed over-reliance on the spot market for power purchases during a period of substantial supply and demand imbalance. Now that deregulation has been suspended, municipal utilities face a more traditional set of challenges. In particular, some electric revenue issuers have exposure to or participate in nuclear power plants, which could affect the issuers financial performance. Other risks include unexpected outages, plant shutdowns, and more stringent environmental regulations.
Georgia Tax-Free Bond Fund
Risk Factors Associated with a Georgia Portfolio
The funds concentration in the debt obligations of a single state carries a higher risk than a portfolio that is more geographically diversified.
Types of Municipal Debt The fund invests in municipal bonds and other municipal debt instruments issued by the state of Georgia and its various political subdivisions and agencies. The issuers of these debt obligations include the state of Georgia and its agencies and authorities, counties and municipalities and their agencies and authorities, various Georgia public institutions of higher education, and certain Georgia not-for-profit organizations (e.g., hospitals, private colleges, and nursing homes). The credit quality and risks of these investments will vary according to each securitys structure and underlying economics.
The state of Georgia, and its local governments, agencies and authorities, issue two basic types of debt: general obligation bonds and revenue bonds. General obligation bonds are backed by the unlimited taxing power of the issuer. However, bonds issued by certain counties, municipalities, and agencies of the state and local government are not backed by the full faith and credit of the state and may or may not be subject to annual appropriations from the states general fund. Revenue bonds are typically secured by specific pledged fees or charges for a related project, such as fees generated from the use of facilities or enterprises financed by the bonds. Included within the revenue bond sector are tax-exempt lease obligations that are subject to annual appropriations of a governmental body, usually with no implied tax or specific revenue pledge.
The Georgia Constitution imposes certain debt limits and controls. The states general obligation debt service cannot exceed 10% of total revenue receipts less refunds of the state treasury and state-issued general obligation bonds have a 25-year maturity limit. The state also established debt affordability limits which provide that outstanding debt will not exceed 2.7% of personal income or that maximum annual debt service will not exceed 5% of the prior years revenues.
The fund may also invest in private activity bond issues for corporate and nonprofit borrowers. Sold through various governmental conduits, these issues are backed solely by the revenues pledged by the respective borrowing corporations. No governmental support is provided or implied.
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Economic and Financial Conditions To a large degree, the credit risk of the portfolio is dependent upon the financial strength of the state of Georgia, its localities and agencies. Financial strength is, in turn, influenced by changing economic conditions which affect the level of taxes collected and revenues earned. While local governments in Georgia are primarily reliant on independent revenue sources, such as property taxes, they are not immune to budget shortfalls caused by cutbacks in state aid. More detailed information regarding economic conditions and the financial strength of Georgia is available in the funds annual and semi-annual shareholder reports.
Sectors Investment concentration in a particular sector can present unique risks. For example, a significant portion of the funds assets may be invested in issues related to health care providers. The hospital industry has been under significant pressure to reduce expenses and shorten length of hospital stays, a phenomenon that has negatively affected the financial health of some hospitals. All hospitals are dependent on third-party reimbursement mechanisms that are typically complex, subject to numerous conditions, and uncertain as to how long they will continue.
The fund may from time to time invest in electric revenue issues that have exposure to or participate in nuclear power plants, which could affect the issuers financial performance. Such risks include delay in construction and operation due to increased regulation, unexpected outages or plant shutdowns, increased Nuclear Regulatory Commission surveillance, or inadequate rate relief. In addition, the financial performance of electric utilities may be impacted by increased competition and deregulation of the industry.
The fund may invest in issues related to life care, which includes nursing homes, assisted living facilities, and continuing care retirement communities. These bonds are typically issued with longer-term maturities, although they are usually callable by the issuer on prescribed dates before maturity. Many life care municipal bonds are considered below investment-grade or are not rated by a credit rating agency. Reasons for the higher credit risk include uncertainty over future regulations and Medicaid funding, increased competition, and a lack of affordability.
Maryland Short-Term Tax-Free Bond, Maryland Tax-Free Bond, and Maryland Tax-Free Money Funds
Risk Factors Associated with a Maryland Portfolio
The funds concentration in the debt obligations of a single state carries a higher risk than a portfolio that is more geographically diversified.
Types of Municipal Debt The funds invest in municipal bonds and other municipal debt instruments issued by the state of Maryland and its various political subdivisions and agencies. The issuers of these debt obligations include the state of Maryland and its agencies and authorities, counties and municipalities and their agencies and authorities, various Maryland public institutions of higher education, and certain Maryland not-for-profit organizations (e.g., hospitals, private colleges, and nursing homes). The credit quality and risks of these investments will vary according to each securitys structure and underlying economics.
The state of Maryland, and its local governments, agencies and authorities, issue two basic types of debt: general obligation bonds and revenue bonds. General obligation bonds are backed by the unlimited taxing power of the issuer. However, many counties, municipalities, and agencies of the state and local government are authorized to borrow money under laws expressly providing that the loan obligations are not debts or pledges of the full faith and credit of the state. The state constitution imposes a 15-year maturity limit on state-issued general obligation bonds. Revenue bonds are typically secured by specific pledged fees or charges for a related project, such as fees generated from the use of facilities or enterprises financed by the bonds. Included within the revenue bond sector are tax-exempt lease obligations that are subject to annual appropriations of a governmental body, usually with no implied tax or specific revenue pledge.
The funds may also invest in private activity bond issues for corporate and nonprofit borrowers. Sold through various governmental conduits, these issues are backed solely by the revenues pledged by the respective borrowing corporations. No governmental support is provided or implied.
Economic and Financial Conditions To a large degree, the credit risk of the portfolios is dependent upon the financial strength of the state of Maryland, its localities and agencies. Financial strength is, in turn, influenced
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by changing economic conditions which affect the level of taxes collected and revenues earned. More detailed information regarding economic conditions and the financial strength of Maryland is available in the funds annual and semi-annual shareholder reports.