T. Rowe Price Personal Strategy Balanced Fund (TRPBX)
Ticker Symbol:
TRPBX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Management
Fund Manager
  • Charles M. Shriver
  • Managed Fund Since: 10/01/2011
  • Joined Firm On 10/04/1991*
  • B.A., University of Virginia; M.S.F., Loyola College

*Firm refers to T. Rowe Price Associates and Affiliates
Quarterly Commentaries
as of 09/30/2014

U.S. equities generated mixed third-quarter returns against a backdrop of geopolitical strife, the impending end of Federal Reserve asset purchases, and the specter of higher U.S. interest rates. Large-caps generally advanced while small- and mid-cap shares posted losses. Across the entire market cap spectrum, growth stocks outperformed value shares. Developed non-U.S. stock markets posted steep losses, attributed mainly to the strength of the U.S. dollar, while emerging markets declined to a lesser extent. Within the U.S. bond market, investment-grade securities outperformed. Long-term Treasury bonds posted gains as yields declined to their lowest levels in more than a year. High yield bonds declined due to risk aversion. Developed non-U.S. bond markets also fell, due to the U.S. dollar's strength versus almost all currencies.

The Personal Strategy Balanced Fund returned −1.34% in the quarter compared with −0.87% for the Combined Index Portfolio* and −1.03% for the Lipper Mixed-Asset Target Allocation Moderate Funds Index. For the 12 months ended September 30, 2014, the fund returned 10.25% versus 9.50% for the Combined Index Portfolio* and 9.71% for the Lipper Mixed-Asset Target Allocation Moderate Funds Index. The fund's average annual total returns were 10.25%, 10.84%, and 7.64% for the 1-, 5-, and 10-year periods, respectively, as of September 30, 2014. The fund's expense ratio was 0.85% as of its fiscal year ended May 31, 2014.

For up-to-date standardized total returns, including the most recent month-end performance, please click on the Performance tab, above.
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when you sell your shares.

Benchmark Definitions

Our exposure to non-benchmark, diversifying sectors was the largest detractor from relative performance in the quarter. Non-U.S. and high yield bonds lagged our fixed income benchmark. Real asset equities also underperformed as energy and materials prices fell. Overall security selection hurt the portfolio's relative results, although stock selection generated a positive contribution in our non-U.S. developed and U.S. large-cap growth portfolios. Asset allocation decisions benefited relative returns. Our underweight to U.S. small-caps and non-U.S. bonds contributed to relative performance. At this time, we favor non-U.S. over U.S. equities and emerging over developed markets equities. We are also overweight to U.S. growth versus value stocks. And we favor investment-grade over nondollar bonds but remain overweight to high yield versus investment-grade bonds for their significant yield advantage.

Our global growth expectations are modest. The U.S. economy is likely to be strongest as diminishing fiscal headwinds, higher spending by state and local governments, rising consumer and business demand, and moderate job growth support a gradually improving economy. In contrast, European growth remains pressured by high debt loads and unemployment and deflation worries. In Japan, growth and inflation have stalled due to the impact of last April's sales tax increase, stubbornly low real wages, and the lack of progress on structural reforms. Slowing growth in China, Brazil, and other emerging economies continues to weigh on global trade. These divergent conditions bolster our belief that our highly diversified portfolios and diligent fundamental research can enhance our ability to produce good long-term returns.

See Glossary for additional details on all data elements.