Fiscal Year End
|| Ultrashort Bond
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.
Investors seeking slightly higher income than what money funds provide who can accept modest share price fluctuation. Appropriate for both regular and tax-deferred accounts, such as IRAs and Keoghs.
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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.