`Research' Fund Among New Offerings Designed to Meet Needs of
Fee-Based Programs and Retirement Plans
BALTIMORE, Jan. 5 /PRNewswire-FirstCall/ -- T. Rowe Price has added four
funds to its Advisor Class lineup, bringing the total number of funds that
offer Advisor Class shares to 24. The latest funds to have Advisor Class
shares include Capital Opportunity, Real Estate, Short-Term Bond, and Capital
Appreciation. In addition, the Capital Opportunity Fund has been added to the
R Class product line, expanding that lineup to 13 funds. Advisor Class shares
carry a 12b-1 fee of 0.25%, while R Class shares carry a 12b-1 fee of 0.50%.
Both can only be purchased through financial intermediaries.
"The new Advisor and R Class funds enable us to offer fee-based advisors
and retirement plan providers an even more diverse selection of competitive
funds, while providing valuable additions to their asset allocation programs
and continuing to meet their payment needs," said John Cammack, director of
third party distribution for T. Rowe Price. "Since we launched our first
Advisor Class shares in March 2000, the funds have been well received by
advisors, broker dealers, banks, and other intermediaries, demonstrating the
appeal of our solid risk-adjusted performance, consistent style discipline,
and low portfolio turnover."
Capital Opportunity Fund is a "research" fund and active large-cap core
strategy that seeks superior capital appreciation over time by investing
primarily in U.S. common stocks. The fund can help to enhance a portfolio's
risk/return potential. The fund uses a disciplined portfolio construction
process whereby a team of more than 30 independent T. Rowe Price equity
analysts is directly responsible for selecting individual stocks for the fund
based on their focused expertise in the industries they cover. The fund
generally remains sector neutral when compared to the S&P 500 Index, although
individual holdings within each sector, and their weights within the
portfolio, can vary from the S&P 500 Index. Director of Global Equity Research
William J. Stromberg supervises the analysts and has responsibility for the
overall structure of the fund. Richard T. Whitney, the firm's director of
Systematic Research, oversees the quantitative analysis that helps the
analysts manage their industry-specific portfolios. As will all equity funds,
this fund's share price can fall because of weakness in the broad market, a
particular industry, or specific holdings.
Real Estate Fund is a bottom-up real estate strategy that invests
predominantly in real estate investment trusts (REITs) and emphasizes
diversification across geography and sectors. REITs can provide
diversification benefits because of their historically low and declining
correlations to other asset classes. Diversification does not assure a profit
or protect against loss in down markets. The fund is managed by David M. Lee.
The fund may experience greater volatility than a fund investing in a broader
range of industries.
Short-Term Bond Fund is a short duration, fixed-income strategy that
incorporates both top-down and bottom-up fundamentals, with emphasis on sector
and industry diversification. Shorter duration bonds can help insulate a
portfolio in a rising interest rate environment, while enhancing the
risk/return profile of a fixed-income allocation over a market cycle. The
fund is managed by Edward A. Wiese. Yield and share price will vary.
Capital Appreciation Fund is a flexible total return strategy that invests
primarily in U.S. common stocks while engaging in tactical allocation across
value equities, convertible bonds, fixed-income securities, and cash - as
market conditions warrant. This type of strategy can tactically allocate
assets to participate in up markets and attempt to minimize losses in down
markets. The fund is managed by Stephen W. Boesel. This fund will be subject
to the risks of the stock and bond markets, including the possible loss of
principal.
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global
investment management firm with $212 billion in assets under management as of
September 30, 2004. The firm provides a broad array of mutual funds, sub-
advisory services, and separate account management for financial
intermediaries, retirement plans, and individual and institutional investors.
T. Rowe Price's disciplined, risk-aware investment approach focuses on
diversification, style consistency, and fundamental research.
For more information about any T. Rowe Price mutual fund, call
1-877-804-2315 to request a prospectus, which includes investment objectives,
risks, fees, expenses, and other information that you should read and consider
carefully before investing.
T. Rowe Price Investment Services, Inc., distributor.
SOURCE T. Rowe Price Group, Inc.
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Related links:
http://www.troweprice.com
CONTACT:
Brian Lewbart, +1-410-345-2242, or Steve
Norwitz, +1-410-345-2124, or Rajiv Vyas, +1-410-345-6559, all of
T. Rowe Price
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