The fund's objective is to seek long-term capital appreciation and income.
The Global Allocation Fund seeks to invest in a broadly diversified global portfolio of investments, including U.S. and international stocks, bonds, and alternative investments. The fund uses an active asset allocation strategy in conjunction with fundamental research to select individual investments. T. Rowe Price, the fundís investment advisor, allocates the fundís assets among the various asset classes and market sectors based on its assessment of U.S. and global economic and market conditions, interest rate movements, industry and issuer conditions and business cycles, and other relevant factors. Under normal conditions, the fundís portfolio will consist of approximately 60% stocks; 30% bonds, money market securities, and other debt instruments; and 10% alternative investments.
T. Rowe Price may adjust the fundís portfolio and overall risk profile by making tactical decisions to overweight or underweight particular asset classes or sectors based on its outlook for the global economy and securities markets, as well as by adjusting the fundís overall derivatives exposure and allocations to alternative investments through hedge funds.
The fund could be an appropriate part of your overall investment strategy if you want to diversify your portfolio by adding a fund with investments in both international and domestic stocks and bonds and you are comfortable with the risks that accompany international investments (including the special risks associated with investing in emerging markets). The fund can be used in both regular and tax-deferred accounts, such as IRAs.
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The fund offers long-term growth potential by investing primarily in individual securities but also, to a limited extent, funds for specific asset classes. In addition to investments in stocks, bonds, and cash the portfolio is expected to utilize derivatives to adjust exposure to these markets or as a source of income and diversification.
This fund is subject to general stock and bond market risks. The fund's share price can fall because of weakness in the broad market, a particular industry, or specific holdings. Investments overseas generally carry more risk than investments in U.S. assets, including unfavorable currency exchange rates and political or economic uncertainty abroad. To the extent the fund has investments in emerging market countries, it will be more subject to abrupt and severe price declines. The fund's investments in alternative investments and hedge funds are difficult to value and monitor when compared with more traditional investments, and may increase the fund's liquidity risks.
* 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.
See Glossary for additional details on all data elements.
The mutual funds referred to in this website are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Download a prospectus.