T. Rowe Price Ultra Short-Term Bond Fund (TRBUX)
Ticker Symbol:
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  May
Morningstar Category  Ultrashort Bond
Inception Date 12/03/2012
Tax ID 46-1176624
Investment Objective
The fund's investment objective is to provide a high level of income consistent with minimal fluctuations in principal value and liquidity.
Invests in a diversified portfolio of shorter-term investment-grade corporate and government securities, including mortgage-backed securities, money market securities, and bank obligations. Normally, the fund will invest at least 80% of its net assets (including any borrowings for investment purposes) in bonds, and all of the securities purchased by the fund will be rated investment-grade (AAA, AA, A, BBB, or an equivalent rating) at the time of purchase by at least one of the major credit rating agencies or, if unrated, deemed to be investment grade quality by T. Rowe Price. While the fund may purchase an individual security with a maturity of up to 5 years, under normal conditions the fund's dollar-weighted average effective maturity will be 1.5 years or less.
Risk/Reward Potential*
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This fund is subject to the risk that the investment adviserís judgment about the attractiveness, value, or potential appreciation of the fundís investments may prove to be incorrect. If the securities selected and strategies employed by this fund fail to produce the intended results, the fund could underperform other funds with similar objectives and investment strategies.

Additionally, this fund is subject to the risk that a rise in interest rates will cause the price of a fixed rate debt security to fall. Prices fall because the bonds and notes in the fundís portfolio become less attractive to other investors when securities with higher yields become available. Generally, securities with longer maturities and funds with longer weighted average maturities carry greater interest rate risk. During periods of extremely low or negative interest rates, this fund may not be able to maintain a positive yield or yields on par with historical levels.
* 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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