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Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 12/13/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
12.5%
1 yr return
13.7%
3 Yr Avg Return
3.7%
5 Yr Avg Return
N/A
Net Assets
$183 M
Holdings in Top 10
73.2%
Expense Ratio 0.22%
Front Load N/A
Deferred Load N/A
Turnover N/A
Redemption Fee N/A
Standard (Taxable)
$500,000
IRA
N/A
Fund Type
Open End Mutual Fund
Name
As of 12/13/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The fund pursues its objective(s) by investing in a diversified portfolio of other T. Rowe Price stock and bond mutual funds that represent various asset classes and sectors. The fund’s allocation among T. Rowe Price mutual funds will change over time in relation to its target retirement date. The fund invests in a mix of both actively managed funds and passively managed index funds, which is an approach designed to reduce tracking error and result in lower overall fees in comparison to actively managed target date funds.
The fund is managed based on the specific retirement year (target date 2025) included in its name and assumes a retirement age of 65. The target date refers to the approximate year an investor in the fund would plan to retire and likely stop making new investments in the fund. The fund is primarily designed for an investor who anticipates retiring at or about the target date and who plans to withdraw the value of the account in the fund gradually after retirement. However, if an investor retires earlier or later than age 65, the fund may not be an appropriate investment even if the investor retires on or near the fund’s target date.
Over time, the allocation to asset classes and funds will change according to a predetermined “glide path” shown in the following chart (the left axis indicates the overall neutral allocation to stocks with the remainder of the allocation to bonds). The glide path represents the shifting of asset classes over time and shows how the fund’s asset mix becomes more conservative–both prior to and after retirement–as time elapses. This reflects the need for reduced market risks as retirement approaches and the need for lower portfolio volatility after retiring. Although the glide path is meant to dampen the fund’s potential volatility as retirement approaches, the fund is not designed for a lump sum redemption at the retirement date. The fund pursues an asset allocation strategy that promotes asset accumulation prior to retirement, but it is intended to also serve as a post-retirement investment vehicle with allocations designed to support an income stream made up of regular withdrawals throughout retirement along with some portfolio growth that exceeds inflation. After the target date, the fund is designed to balance longevity and inflation risks along with the need for some income, although it does not guarantee a particular level of income.
The glide path provides for a neutral allocation to stocks at the target date of 55%. The fund’s overall exposure to stocks will continue to decline until approximately 30 years after its target date, when its neutral allocations to stocks and bonds will remain unchanged. There are no maturity restrictions within the fund’s overall allocation to bonds, although the underlying bond funds in which the fund invests may impose specific limits on maturity or credit quality. The allocations are referred to as “neutral” allocations because they do not reflect any tactical decisions made by T. Rowe Price to overweight or underweight a particular asset class or sector based on its market outlook. The target allocations assigned to the broad asset classes (Stocks and Bonds), which reflect these tactical decisions resulting from market outlook, are not expected to vary from the neutral allocations set forth in the glide path by more than plus or minus 5%. The target allocations and actual allocations may differ due to significant market movements or cash flows.
The following table illustrates how the portfolio is generally expected to be allocated between the asset classes and the underlying T. Rowe Price mutual funds that are used to represent the broad asset classes and specific sectors. The fund invests in the Z Class of each of its underlying funds. T. Rowe Price is contractually obligated to waive and/or bear all of the Z Class’ expenses, with certain limited exceptions. The fund’s overall allocation to stocks is represented by a diversified mix of U.S. and international stock funds that employ both growth and value investment approaches and consist of large-cap, mid-cap, and small-cap stocks. The fund’s overall allocation to bonds is represented by a “core” fixed income component designed to have lower overall volatility and a “diversifying” fixed income component designed to respond to a variety of market conditions and improve risk adjusted returns. The information in the table represents the neutral allocations for the fund as of August 1, 2024. The numbers may not add to 100% due to rounding. Updated allocations between stock funds and bond funds, and actual
allocations to the individual T. Rowe Price mutual funds, are available through troweprice.com. T. Rowe Price may periodically rebalance or modify the asset mix of the underlying funds and change the underlying fund allocations.
Retirement Blend 2025 Fund | ||||||
Asset Class | Sector(s) | Neutral Allocation | Underlying Fund(s) | |||
Stocks | 57.00 | % | Hedged Equity | 5.13 | % | Hedged Equity |
Inflation Focused | 2.85 | Real Assets | ||||
International Developed Market | 12.50 | International Equity Index, | ||||
International Stock, and/or | ||||||
International Value Equity | ||||||
International Emerging Market | 2.21 | Emerging Markets Discovery Stock and/or | ||||
Emerging Markets Stock | ||||||
U.S. Large-Cap | 27.45 | Equity Index 500, | ||||
Growth Stock, and/or | ||||||
Value | ||||||
U.S. Mid-Cap | 3.43 | Mid-Cap Growth, | ||||
Mid-Cap Index, and/or | ||||||
Mid-Cap Value | ||||||
U.S. Small-Cap | 3.43 | New Horizons, | ||||
Small-Cap Index, and/or | ||||||
Small-Cap Value | ||||||
Bonds | 43.00 | Core Fixed Income | 23.80 | Dynamic Global Bond, | ||
International Bond (USD Hedged), and/or | ||||||
QM U.S. Bond Index | ||||||
Diversifying Fixed Income | 19.20 | Dynamic Credit, | ||||
Emerging Markets Bond, | ||||||
Floating Rate, | ||||||
High Yield, | ||||||
U.S. Limited Duration TIPS Index, | ||||||
U.S. Treasury Long-Term Index, and/or | ||||||
U.S. Treasury Money | ||||||
Period | TBLEX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 12.5% | 7.4% | 15.5% | 16.29% |
1 Yr | 13.7% | 10.7% | 18.9% | 3.37% |
3 Yr | 3.7%* | -2.3% | 4.5% | 3.98% |
5 Yr | N/A* | 1.6% | 7.8% | N/A |
10 Yr | N/A* | 2.3% | 7.3% | N/A |
* Annualized
Period | TBLEX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 12.3% | 1.0% | 14.0% | 2.19% |
2022 | -17.8% | -33.6% | -9.0% | 34.43% |
2021 | N/A | -6.6% | 12.9% | N/A |
2020 | N/A | -8.5% | 13.1% | N/A |
2019 | N/A | 4.3% | 17.0% | N/A |
Period | TBLEX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 12.5% | 7.4% | 15.5% | 16.29% |
1 Yr | 13.7% | 10.7% | 18.9% | 3.37% |
3 Yr | 3.7%* | -2.3% | 4.5% | 3.98% |
5 Yr | N/A* | 1.6% | 7.8% | N/A |
10 Yr | N/A* | 2.3% | 7.3% | N/A |
* Annualized
Period | TBLEX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 15.0% | 8.0% | 20.3% | 15.85% |
2022 | -15.2% | -24.5% | 1.1% | 54.10% |
2021 | N/A | -0.2% | 17.0% | N/A |
2020 | N/A | -6.6% | 18.0% | N/A |
2019 | N/A | 15.9% | 23.7% | N/A |
TBLEX | Category Low | Category High | TBLEX % Rank | |
---|---|---|---|---|
Net Assets | 183 M | 9.62 M | 76.5 B | 70.11% |
Number of Holdings | 27 | 4 | 894 | 35.33% |
Net Assets in Top 10 | 244 M | 4.89 M | 78.7 B | 69.02% |
Weighting of Top 10 | 73.21% | 47.7% | 104.4% | 68.51% |
Weighting | Return Low | Return High | TBLEX % Rank | |
---|---|---|---|---|
Stocks | 97.49% | 0.00% | 100.82% | 62.50% |
Cash | 2.51% | 0.00% | 50.45% | 22.83% |
Convertible Bonds | 0.27% | 0.01% | 3.27% | 85.87% |
Preferred Stocks | 0.00% | 0.00% | 0.04% | 91.30% |
Other | 0.00% | -0.06% | 7.03% | 82.07% |
Bonds | 0.00% | 0.00% | 61.92% | 91.85% |
Weighting | Return Low | Return High | TBLEX % Rank | |
---|---|---|---|---|
Technology | 19.94% | 13.93% | 23.93% | 22.83% |
Financial Services | 14.35% | 12.41% | 19.06% | 80.98% |
Healthcare | 12.98% | 10.77% | 15.01% | 44.02% |
Consumer Cyclical | 12.19% | 8.02% | 13.41% | 7.61% |
Industrials | 10.38% | 8.30% | 12.73% | 56.52% |
Communication Services | 9.01% | 5.69% | 9.94% | 6.52% |
Consumer Defense | 5.58% | 4.91% | 11.03% | 80.98% |
Basic Materials | 4.91% | 3.15% | 7.09% | 33.70% |
Real Estate | 4.68% | 1.86% | 14.43% | 42.39% |
Utilities | 3.09% | 1.89% | 8.11% | 35.33% |
Energy | 2.88% | 2.40% | 7.33% | 92.39% |
Weighting | Return Low | Return High | TBLEX % Rank | |
---|---|---|---|---|
US | 97.49% | 0.00% | 100.82% | 62.50% |
Non US | 0.00% | 0.00% | 22.21% | 91.30% |
TBLEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 0.22% | 0.05% | 22.74% | 93.99% |
Management Fee | 0.22% | 0.00% | 0.78% | 53.11% |
12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
Administrative Fee | N/A | 0.01% | 0.27% | N/A |
TBLEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 3.50% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 4.00% | N/A |
TBLEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | N/A | N/A | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
TBLEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | N/A | 1.50% | 97.00% | N/A |
TBLEX | Category Low | Category High | TBLEX % Rank | |
---|---|---|---|---|
Dividend Yield | 1.88% | 0.00% | 7.34% | 64.67% |
TBLEX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Annual | Annual | SemiAnnual | SemiAnnual |
TBLEX | Category Low | Category High | TBLEX % Rank | |
---|---|---|---|---|
Net Income Ratio | N/A | 0.27% | 3.72% | N/A |
TBLEX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Semi-Monthly | Annually |
Date | Amount | Type |
---|---|---|
Dec 21, 2023 | $0.197 | OrdinaryDividend |
Dec 21, 2023 | $0.026 | CapitalGainLongTerm |
Dec 21, 2022 | $0.254 | OrdinaryDividend |
Dec 21, 2021 | $0.207 | OrdinaryDividend |
Start Date
Tenure
Tenure Rank
Jul 26, 2021
0.85
0.9%
Ms. DeDominicis originally joined T. Rowe Price in 1998 and returned to the Firm in 2003. Her investment experience dates from 1999. Ms. DeDominicis has served as an associate portfolio manager for the target date strategies during the past five years.
Start Date
Tenure
Tenure Rank
Jul 26, 2021
0.85
0.9%
Wyatt Lee, CFA is a Vice President and Portfolio Manager at T. Rowe Price. Mr. Lee became chairman of the committee in 2011. He joined the Firm in 1999 and his investment experience dates from 1997.
Start Date
Tenure
Tenure Rank
Jul 26, 2021
0.85
0.9%
Andrew Jacobs van Merlen is a Vice President of T. Rowe Price Group. Mr. Jacobs van Merlen earned a BS in finance from the University of Maryland and an MBA in sustainable business from the University of Cambridge. He also has earned the Chartered Financial Analyst designation.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.08 | 17.59 | 5.88 | 2.41 |
Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
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