BALTIMORE, Feb. 25 /PRNewswire-FirstCall/ -- T. Rowe Price Associates,
Inc. announced that it will close its Mid-Cap Value Fund to new investors
effective today to maintain the integrity of the fund's investment strategy
and protect the interests of existing shareholders. The fund will continue to
accept additional investments from existing shareholders and direct rollovers
from qualified retirement plans into new IRA accounts offered through T. Rowe
Price.
The fund, which began operations June 28, 1996, invests primarily in mid-
cap stocks that the manager believes are undervalued and offer long-term
capital appreciation.
Commenting on the decision to close the fund to new investors, David J.
Wallack, the fund's portfolio manager, said: "Over the past year, the fund's
assets have more than doubled from approximately $2.0 billion to $5.1 billion
due to favorable investment results and substantial cash inflows. While we're
pleased that the fund has attracted investors, continued large inflows could
eventually impair our ability to invest effectively in the type of undervalued
mid-cap stocks that typically make up the fund, and we are committed to
investing in a manner that is consistent with the fund's objective."
Net cash flows into the Mid-Cap Value Fund totaled $529.3 million in 2003
and approximately $2.44 billion in 2004. As of December 31, 2004, the fund had
an average annual total return of 20.56%, 16.85% and 15.39%, for the 1-year,
5-years and since-inception periods respectively.(1)
Mid-Cap Value is the fifth T. Rowe Price Fund that is closed to new
investors, and the fourth fund to close in the last 14 months. The others
include Small-Cap Value, Mid-Cap Growth, Small-Cap Stock and the High Yield
Fund.
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global
investment management firm with $235.2 billion in assets under management as
of December 31, 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
1-800-638-5660 to request a prospectus, which includes investment objectives,
risks, fees, expenses, and other information that you should read and consider
carefully before investing.
(1) These figures include changes in principal value, reinvested
dividends, and capital gain distributions. Investment return and principal
value will vary and shares may be worth more or less at redemption than at
original purchase. Past performance cannot guarantee future results. When
assessing performance, investors should consider both short and long-term
returns. T. Rowe Price Investment Services, Inc., distributor
SOURCE T. Rowe Price Associates, Inc.
 back to top
Related links:
http://www.troweprice.com
CONTACT:
Rajiv Vyas, +1-410-345-6559, or Brian
Lewbart, +1-410-345-2242, both of T. Rowe Price
|
