T. Rowe Price Retirement Date Trusts switched to a lower-fee share class
Effective April 16, 2020, T. Rowe Price Retirement Date Trusts Class D shares with a cost of 0.36% will be exchanged to the Class E shares with a cost of 0.34%.
This reduction in fees is the result of Plan assets in those investments increasing. Because we are a very large plan, we are often eligible for reduced fees based on assets under management in the various funds offered in the Plan. Once certain thresholds are met, we can offer participants a lower-fee share class of the same investment option.
Participants will see an exchange with a new share number and “net asset value” equal to the value in the old share class. There are no costs associated with the exchange, and the fund management and portfolio construction will also remain unchanged.
Before investing, you should carefully consider the option's investment objectives, risks, charges and expenses. This and other information is contained in mutual fund prospectuses and in CIT and custom-option fact sheets, which are available by calling 1-800-422-8463. Read carefully before you invest.
The principal value of the TRP Retirement Date Trusts 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 is likely to stop making new investments in the Trust. If an investor plans to retire significantly earlier or later than age 65, the Trusts may not be an appropriate investment even if the investor is retiring on or near the target date. The Trusts’ allocations among a broad range of underlying stock and bond funds will change over time. The Trusts 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 post-retirement withdrawal horizon. The Trusts are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. They maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.