T. Rowe Price Spectrum Growth Fund (PRSGX)
Ticker Symbol:
PRSGX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Management
Fund Manager
  • Charles M. Shriver
  • Managed Fund Since: 10/01/2011
  • Joined Firm On 10/04/1991*
  • B.A., University of Virginia; M.S.F., Loyola College

*Firm refers to T. Rowe Price Associates and Affiliates
Quarterly Commentaries
as of 12/31/2013

U.S. stocks recorded stellar gains in the fourth quarter as major indexes set record highs on improving economic data and strong corporate profits. The Federal Reserve helped boosted sentiment when it decided to taper its asset purchases beginning January 2014, while Europe's central bank cut its key lending rate in November. Non-U.S. developed markets stocks generally lagged U.S. shares, with eurozone markets outpacing developed Asian markets. Emerging markets lagged developed non-U.S. markets with Asian countries leading. Emerging Europe produced modest gains, while Latin America mostly declined.

The Spectrum Growth Fund returned 8.70% in the quarter compared with 10.10% for the Russell 3000 Index and 9.49% for the Lipper Multi-Cap Core Funds Index. For the 12 months ended December 31, 2013, the fund returned 28.59% versus 33.55% for the Russell 3000 Index and 32.58% for the Lipper Multi-Cap Core Funds Index. The fund's average annual total returns were 28.59%, 19.25%, and 8.44% for the 1-, 5-, and 10-year periods, respectively, as of December 31, 2013. The fund's expense ratio was 0.80% as of its fiscal year ended December 31, 2012.

For up-to-date standardized total returns, including the most recent month-end performance, please click on the Performance tab, above.
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when you sell your shares.

Benchmark Definitions

The Spectrum Growth Fund focuses on growth-oriented domestic and non-U.S. stocks across the capitalization spectrum but also includes exposure to value stocks. Allocations to out-of-benchmark holdings detracted from results, particularly exposure to international equities, which lagged U.S. markets. In addition, our exposure to real assets also detracted from results. Security selection was the largest contributor to our positive relative performance, as the majority of our underlying portfolios outperformed their style-specific benchmarks. Currently, we are modestly overweight to non-U.S. equity markets based on relative valuations. We also continue to favor emerging over developed economies, as we believe the former enjoy better growth prospects due to healthier fiscal budgets and debt loads. However, weak commodity demand may challenge commodity-producing economies in the shorter term.

Our expectations for global growth remain modest. The U.S. economic recovery continues, supported by a strengthening housing market, improving employment, subdued energy prices, and the Fed's low interest rate policy. While the eurozone has emerged from recession, economic headwinds continue. In Japan, the central bank continues its efforts to bolster the country's economy. Emerging markets economies face slower growth and are vulnerable to a further rise in U.S. interest rates. Although uncertainty about the impact of Fed tapering may periodically elevate market volatility, we believe our highly diversified portfolios and the diligent fundamental research underpinning them can enhance our ability to produce good long-term returns for our shareholders.

See Glossary for additional details on all data elements.