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Fund Name (ticker)
Overall Morningstar Rating™
No. of Funds In Category
The principal value of the Retirement Funds and Target Funds (collectively the "target date funds") is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. The target date funds' allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The Retirement Funds emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term retirement withdrawal horizon. The Target Funds emphasize asset accumulation prior to retirement, balance the need for reduced market risk and income as retirement approaches, and focus on supporting an income stream over a moderate postretirement withdrawal horizon. The target date funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The key difference between the Retirement Funds and the Target Funds is the overall allocation to equity; although they each maintain significant allocations to equities both prior to and after the target date, the Retirement Funds maintain a higher equity allocation, which can result in greater volatility over shorter time horizons. Diversification cannot assure a profit or protect against loss in a declining market.
136 of our 39 Retirement Funds (Investor, Advisor, and R Class) had a 10-year track record as of 12/31/17 (includes all share classes). 34 of these 36 funds beat their Lipper averages for the 10-year period. 38 of 39, 39 of 39, and 35 of 36 of the Retirement Funds outperformed their Lipper average for the 1-, 3-, 5-year periods ended 12/31/17, respectively. Calculations are based on cumulative total return. Not all funds outperformed for all periods. (Source for data: Lipper Inc.)
2The Morningstar Analyst Rating for Target Date Fund Series is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates the Target Date Fund Series based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five-pillar evaluation to determine how they believe the Target Date Fund Series is likely to perform over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary.
The Analyst Rating scale is Gold, Silver, Bronze, Neutral, or Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst's conviction in a Target Date Fund Series' prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated quarterly. The Morningstar Analyst Rating for a Target Date Fund Series may differ from the Morningstar Analyst Rating for a target date fund that underlies that series.
For more detailed information about the Morningstar Analyst Rating for Target Date Fund Series, including its methodology, please go to https://corporate.morningstar.com/us/documents/MethodologyDocuments/FactSheets/TargetDateRating.pdf
The Morningstar Analyst Rating for Target Date Fund Series should not be used as the sole basis in evaluating a Target Date Fund Series or an individual target date fund. Morningstar Analyst Ratings involve unknown risks and uncertainties, which may cause Morningstar's expectations not to occur or to differ significantly from what we expected.
◊Ratings displayed with hollow stars represent Morningstar Extended Performance Ratings. Morningstar provides adjusted historical returns and an Extended Performance Rating for some mutual fund share class that don't have a 1, 3-, 5-, or 10-year performance history. These hypothetical Morningstar Ratings are based on the historical performance of the oldest share class of the fund, adjusted for fees and expenses.
The Morningstar Rating™ for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.
Source for Morningstar data: ©2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
1,2 This information does not apply to the Retirement I Funds-I Classes, which began operations in 2015.
**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.
+ California Tax-Free Money Fund, Capital Appreciation Fund, Equity Income Fund, Global Allocation Fund, Global Industrials Fund, GNMA Fund, Inflation Protected Bond Fund, International Bond Fund, International Stock Fund, Japan Fund, Limited Duration Inflation Focused Bond Fund, New Era Fund, Personal Strategy Balanced Fund, Personal Strategy Income Fund, QM Global Equity Fund, QM Global Equity Fund, QM U.S. Value Equity Fund, Retirement 2015 Fund, Retirement 2035 Fund, Retirement 2040 Fund, Retirement 2045 Fund, Retirement 2050 Fund, Retirement 2055 Fund, Retirement 2060 Fund, Short-Term Bond Fund, Spectrum International Fund, Summit Municipal Intermediate Fund, Target 2010 Fund, Target 2025 Fund, Target 2050 Fund, Target 2055 Fund, Target 2060 Fund, Tax-Free Short-Intermediate Fund, Total Equity Market Index Fund, Ultra Short-Term Bond Fund
++ Global Unconstrained Bond Fund