T. Rowe Price Ultra Short-Term Bond Fund (TRBUX)
Ticker Symbol:
TRBUX
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.
Strategy
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.
**This chart displays relative risk of each U.S. mutual fund listed using standard deviation of returns. Those values are provided in the bars at the top of the chart.

Methodology: We evaluate the standard deviation and its resulting placement within a specific risk/return category on an annual basis. A fund is generally placed in a risk/return category based on the 10-year standard deviation of its performance. If a fund is less than 10 years old, the actual fund performance history is supplemented with the primary prospectus benchmark history to obtain a full 10-year history, or longest time period available up to 10 years. For an Asset Allocation fund with less than 10 years of performance history, sub-strategy returns are used. When a sub-strategy is less than 10 years old, the actual sub-strategy performance history is supplemented with benchmark history to obtain a full 10-year history, or longest time period available up to 10 years.

Risk return categories overlap; a fund with a standard deviation in the overlap between two categories, denoted by a plus (+), is placed so that its risk categorization is better aligned with anticipated return characteristics an investor may experience going forward at the discretion of T Rowe Price.

When a fund has a cash-like benchmark, denoted by a double plus (++), its standard deviation is estimated using only available fund returns. If the fund is less than 10 years old, benchmark returns are not used to obtain a full 10-year history because they would artificially suppress the volatility estimate.

All investments are subject to market risk, including the possible loss of principal. Standard deviation of returns, a measure of price volatility, is one measure of risk. Please consult the funds' prospectuses for a more complete discussion of the funds' risks.
See Glossary for additional details on all data elements.