Important Information
*Combined target date portfolios include assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates as of 30 June 2024. T. Rowe Price Trust Company, as trustee for the T. Rowe Price Common Trust Funds (“Trusts”), has retained the services of T. Rowe Price Associates, Inc. and/or its investment advisory affiliates to assist it in the investment of assets of the Trusts. Figures above include Trusts’ assets.
1Average was time weighted based on the percentage of total rolling performance periods provided by each Retirement Fund.
Analysis by T. Rowe Price. Source: Morningstar. The target date funds included in the combined portfolios were (1) defined as passive by Morningstar in its most recent annual Target‐Date Strategy Landscape report, (2) open and available to investors as of 12/31/23, and (3) with Morningstar universe sharing the same target date as each Retirement Fund. Combined portfolios were equally weighted and based on the oldest share class of each competing passive target date fund. The Retirement 2005 Fund was excluded from the study, as it had a limited number of passive peer constituents in the Morningstar universe; the Retirement 2060 and 2065 Funds were excluded due to lack of a 10-year track record.
Although in the same category, there may be material differences among target date funds, including fees, expenses, and the portfolio mix of investments. Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives. Passive investing may lag the performance of actively managed peers as holdings are not reallocated based on changes in market conditions or outlooks on specific securities. Results for other time periods will differ.
The T. Rowe Price target date trusts, and their underlying trusts (the Trusts) are not mutual funds; rather the Trusts are operated and maintained so as to qualify for exemption from registration as mutual funds pursuant to Section 3(c)(11) of the Investment Company Act of 1940, as amended. The Trusts are established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933.Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and aresubject to investment risks, including possible loss of principal.
All investments are subject to market risk, including the possible loss of principal. The principal value of the target date funds is not guaranteed at any time, including, if applicable, at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65). Investments in other funds: The fund bears the risk that its underlying funds will fail to successfully employ their investment strategies. One or more underlying fund's underperformance or failure to meet its investment objective(s) as intended could cause the fund to underperform similarly managed funds. Interest rates: A rise in interest rates typically causes the price of a fixed rate debt instrument to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of a fixed rate debt instrument to rise and the yield to fall. International investing: Non-U.S. securities tend to be more volatile and have lower overall liquidity than investments in U.S. securities and may lose value because of adverse local, political, social, or economic developments overseas, or due to changes in the exchange rates between foreign currencies and the U.S. dollar. Emerging markets: Investments in emerging market countries are subject to greater risk and overall volatility than investments in the U.S. and other developed markets. See the prospectus for more detail on the fund's principal risks.
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