Capital Allocation Fund
Flexible offense and defense with a contrarian approach
Key features
Heritage and strong management
- The Fund is part of a broader family of investment strategies managed under the US Capital Appreciation Strategy, which has a heritage spanning over 40 years in the U.S.
- Portfolio Manager David Giroux, is 7-time nominee and 3-time winner of Morningstar's Award for Investing Excellence: Outstanding Portfolio Manager - Allocation (Previously known as the Fund Manager of the Year Award)1
Timeframes – Multi-horizon
- Our multi-horizon framework aims to balance near‑term opportunities with long‑term growth potential, adapting to market conditions while maintaining strategic discipline
Asset allocation – Flexible
- By adopting a contrarian approach, the Fund seeks to increase equity exposure during periods of market weakness; and reduce exposure when the market sentiment is high
- It uses diversified fixed income to manage risk, and includes opportunistic strategies such as writing covered call option2
Seeking risk-adjusted return
- Through a dynamic allocation across equities and fixed income, the Fund seeks to capitalize on growth opportunities and pursue attractive risk-adjusted return
Past performance is not a guarantee or a reliable indicator of future results.
1 The above US accolade is for reference only, with the sole purpose of demonstrating T. Rowe Price's management capabilities in this market segment. See Additional Disclosures.
2 The Fund typically maintains asset allocation ranges of 50-70% to equity and equity-related securities and 30-50% to fixed income and other debt instruments. These ranges are indicative and may change depending on market conditions. Equity allocation percentages reflect the portfolio’s delta‑weighted equity exposure after taking into account the impact of covered calls, convertibles and other derivatives. For example, covered calls lower the effective equity weight by reducing potential upside (due to call risk) and downside (due to call premiums).
Potential for regular and attractive income
Fixed annual percentage rate
8%
Aims to pay dividend on monthly basis
(Dividends are not guaranteed and may be paid out of capital.)
| Share Class | Currency | ISIN Code | Bloomberg Code |
|---|---|---|---|
| A8p (USD) | USD | LU3224641939 | TRPCAAP LX |
| A8p (SGD) | SGD | LU3224642408 | TRPCAAS LX |
| A8p (HKD) | HKD | LU3224642077 | TRPCAA8 LX |
| A8pn (AUD) | AUD | LU3224642150 | TRPCAAAL LX |
| A8pn (CNH) | CNH | LU3224642234 | TRPCAAC LX |
| A8pn (GBP) | GBP | LU3224642317 | TRPCAAG LX |
Annualised Dividend Yield (%) = (Dividend per share / Ex-Dividend Date NAV) x 12 x 100. Positive dividend yield does not imply positive return. For more dividend information and disclosures, please refer to the Composition of Dividend Payments document on the fund page of our website (https://www.troweprice.com).
Q&A to help you understand more about the strategy and what sets it apart
1. How do you adjust asset allocation across equities, fixed income and cash?
2. What key criteria do you focus on during company research?
3. What are GARP stocks, and what makes them appealing to you?
Fund at a glance
Capital Allocation Fund
Employing a flexible asset allocation approach, the Fund is actively managed and invests mainly in a diversified portfolio of equities and bonds, mainly from US issuers.
| Inception date | 29 January 2026 |
| Base currency | USD |
| Annual management fee* | Up to 1.50% (Class A(USD)) |
| ISIN code | Class A (USD): LU2711354592 |
| Bloomberg code | Class A (USD): TRPCAFA LX |
| Benchmark^ | 60% S&P 500 Index Net 30% Withholding Tax and 40% Bloomberg US Aggregate Bond Index |
* Full details of the fees payable by investors are available within the offering document.
^ This benchmark is shown for comparison purposes only.
Key documents
Latest multi-asset insights
How AI’s rise is changing the game for software companies
Exploiting Durable Inefficiencies in GARP Stocks
Additional Disclosures
Unless otherwise noted, numbers may not total due to rounding.
Morningstar's Award for Investing Excellence: Outstanding Portfolio Manager – Allocation: Previously known as the Fund Manager of the Year Award. The Morningstar Awards for Investing Excellence recognize portfolio managers and asset management firms that demonstrate excellent investment skill, the courage to differ from the consensus to benefit investors, and an alignment of interests with the strategies' investors. The Morningstar Awards for Investing Excellence award winners are chosen based on research and in-depth qualitative evaluation by Morningstar's Manager Research Group. Morningstar's Outstanding Portfolio Manager Award recognizes an individual or team who has produced exceptional returns over the long term. To qualify, a manager's strategy must currently earn a Morningstar Medalist Rating of Gold or Silver for at least one vehicle and/or share class in the appropriate asset class (equity, fixed income, or allocation). David Giroux won the Outstanding Portfolio Manager Award for the Allocation category in 2025. He previously won the Morningstar U.S. Fund Manager of the Year award for Allocation Funds in 2012, and Allocation/Alternative Funds in 2017.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Important Information
Unless otherwise stated, all data is sourced from T. Rowe Price. Certain numbers in this website may not add due to rounding and/or the exclusion of cash.
Investment involves risk. Past performance is not a guarantee or a reliable indicator of future results. The value of an investment and any income from it can fall as well as rise. You may get back less than the amounted invested. The performance returns are denominated in the share class dealing currency which can be a foreign currency and if so, US/SG dollar-based investors are exposed to fluctuations in the US/SG dollar/foreign currency exchange rate. Before deciding to invest in the fund, you should read the offering document/prospectus (including its investment objectives, policies and any risk warnings) and the product highlights sheet which are available and may be obtained from any appointed distributors.
T. Rowe Price Singapore Private Ltd. is the appointed Singapore representative and agent for service of process in Singapore. SICAV refers to the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”).
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- Employing a flexible asset allocation approach, the Fund is actively managed and invests mainly in a diversified portfolio of equities and bonds, mainly from US issuers.
- Investment in the Fund involves risks, including general investment risk, risks relating to dynamic asset allocation strategy, equity market risk, risks associated with depositary receipts, geographic concentration risk, exclusion criteria risk, currency risk and Renminbi currency and conversion risks which may result in loss of a part or the entire amount of your investment.
- The investment in debt securities is also subject to credit/counterparty risk, interest rate risk, downgrading risk, credit rating risk, risk associated with high yield debt securities which are generally rated below investment grade or unrated, sovereign debt risk, risk associated with investments in debt instruments with loss-absorption features and valuation risk.
- The Fund may use derivatives for hedging, efficient portfolio management and investment purposes or to create synthetic short positions in currencies, debt securities, credit indices and equities, and may write covered call options on equity securities, and is subject to derivatives risk. Exposure to derivatives may also lead to a risk of significant loss to the Fund.
- Dividend of certain share class(es) may be paid directly out of capital and/or effectively out of the capital which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distribution may result in an immediate reduction of net asset value per share (Note 1).
- Investments in share class(es) with fixed annual percentage rate are not an alternative to a savings account or fixed interest paying investment. The fixed annual percentage rate may be subject to adjustment. The percentage of distributions paid is unrelated to the actual or expected income or returns of these share classes or the Fund. Distribution will continue even the Fund has negative returns or is making losses, which further reduces the net asset value. A positive distribution yield does not imply a high or positive return (Note 2).
- The value of the Fund can be volatile and could go down substantially.
- Investors should not invest in the Fund solely based on this document.