T. Rowe Price New Era Fund (PRNEX)
Ticker Symbol:
PRNEX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  December
Morningstar Category  Natural Resources
Inception Date 01/20/1969
Tax ID 52-0888555
Investment Objective
The fund seeks to provide long-term capital growth primarily through the common stocks of companies that own or develop natural resources and other basic commodities and also through the stocks of selected nonresource growth companies.
Strategy
To invest about two-thirds of fund assets in the common stocks of natural resource companies where earnings and tangible assets could benefit from accelerating inflation.
Risk/Reward Potential*
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This fund gives investors a way to access the unique benefits of natural resource stocks at home or abroad, which could perform better than stocks in general when inflation is rising. During economic expansions, demand increases for some of the nation's largest industries, including construction and manufacturing. Because tangible assets are the raw materials that fuel many of these industries, natural resource stocks could provide particularly strong growth potential in a growing economy.

The fund may underperform when economic growth is slowing and the level of inflation is low. Because of the cyclical nature of natural resource companies, their stock prices and rates of earnings growth may follow an irregular path. Factors such as natural disasters, declining currencies, market illiquidity, or political instability in commodity-rich nations could also have a negative impact on various portfolio holdings and cause a drop in share prices.
* Annually we evaluate the standard deviation of each US mutual fund listed and its resulting placement within specific risk/return categories.

Methodology: If a fund is at least 5 year old, it is generally placed in risk/return categories based on the standard deviation of its performance for the longest period of its calendar year returns; the longest time period used for analysis is 10 years (regardless of the fund's inception). If a fund is less than 5 years old, we generally use the fund's primary benchmark disclosed in its prospectus as a proxy and follow the same process of using 10-year standard deviation of the benchmark, or longest time period available. The firm at its sole discretion may show a fund in a higher risk category based on qualitative or other factors that may differ from this methodology.
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