This Barron’s article analyzes how target date investments fared amid pandemic uncertainties. One of the funds highlighted is the T. Rowe Price Retirement 2020 fund (TRRBX) and the article includes a discussion with portfolio specialist Joe Martel.
Managing a retirement investment strategy for millions of participants with wide-ranging needs is a daunting challenge. To meet those demands, our team of investment professionals regularly travels the country to talk to plan sponsors, advisors, and individuals.
Wyatt A. Lee, Portfolio Manager, Target Date Solutions
Jerome Clark, Portfolio Manager, Target Date Solutions
Kim DeDominicis, Portfolio Manager, Target Date Solutions
The series’ cheapest share classes now earn a Morningstar Analyst Rating of Gold.
A Guide for Plan Sponsors
Lorie Latham, CFA, Senior Defined Contribution Strategist
Investors should view sequence-of-returns risk in a broad context.
Kimberly E. DeDominicis, Portfolio Manager, Target Date Solutions
Andrew Jacobs van Merlen, CFA, Portfolio Manager, Target Date Solutions
Wyatt A. Lee, CFA, Head of Target Date Strategies
New coronavirus vaccines offer a potential lift for economies in 2021 and could shift spending from firms that gained during the pandemic to cyclical names damaged by it. Low yields and tighter credit spreads could make attractive fixed income returns harder to find. Tensions between the U.S. and China are a potential flashpoint.
David Giroux, Chief Investment Officer, Equity and Multi‑Asset
Justin Thomson Chief Investment Officer, International Equity
Mark Vaselkiv Chief Investment Officer, Fixed Income
The year ahead will likely be defined by how quickly vaccines can combat COVID-19’s spread and unlock the global economy. The recovery should create a broadening of investment opportunities and rotation toward more cyclically oriented sectors. Post-pandemic winners and losers will emerge as consumers and businesses adapt to the new environment.
Sébastien Page, Head of Global Multi‑Asset
Tim Murray, Capital Markets Strategist, Global Multi‑Asset
Peter Austin, Head of Global Multi‑Asset Solution
T. Rowe Price conducted a study to evaluate whether our active approach to target date management has outperformed passive strategies offered by our competitors.
At T. Rowe Price, we continue our positioning within the target date industry as a leader and an innovator with over 25 years of experience in multi-asset solutions. As a result, our performance and success rates have demonstrated the value of our approach.
T. Rowe Price examined our U.S. Retirement Funds to quantify the value added by our strategic investing approach. We believe our approach―including tactical allocation and active management of the underlying strategies―can enhance retirement outcomes.
With defined contribution (DC) plans now serving as the primary vehicle for retirement savings in the U.S. and concerns continuing about workers' ability to reach their retirement goals, the structure of investment lineups has never been more important.
Craig Keim, CFA, Head of Investment Platforms and Services, T. Rowe Price
This means we don't stop at surface-level analysis. Instead, our investment professionals travel the world to get the full story behind the companies we consider investing in. It has guided how we do business since 1937.
See how our investment professionals go out into the field to get the full story.
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, call (800) 638-4546. Read it carefully.
The principal value of the Retirement 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 funds’ allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The 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 postretirement withdrawal horizon. The funds are not designed for a lumpsum redemption at the target date and do not guarantee a particular level of income. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.
T. Rowe Price Investment Services, Inc.
Contact your T. Rowe Price representative to find out how we can take your plan to the next level.