T Rowe Price Spectrum Moderate Growth Allocation Fund Review

The T Rowe Price Spectrum Moderate Growth Allocation Fund is a great option for those looking to diversify their portfolio and grow their wealth over time.

This fund is designed to provide moderate growth by investing in a mix of stocks and bonds.

With a low minimum investment requirement of $2,500, it's accessible to a wide range of investors.

The fund's expense ratio is 0.63%, which is relatively low compared to other funds in its category.

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The T. Rowe Price Spectrum Moderate Growth Allocation Fund is a fund with a long history. It was first established on July 29, 1994.

The fund is managed by Charles Shriver, who has experience in overseeing the fund's investment strategy. He is responsible for making key decisions that impact the fund's performance.

T. Rowe Price is the fund family name, which is a well-established and reputable name in the industry. They have a strong track record of managing funds that meet investors' needs.

The fund's inception date is also an important detail. It was first launched on July 29, 1994, and has been in operation for many years.

Here are some key details about the fund:

The T. Rowe Price Spectrum Moderate Growth Allocation Fund is designed to provide long-term growth and income.

The fund invests in a mix of domestic and international stocks, bonds, and other securities to achieve its goal.

The target asset allocation for the Moderate Growth Allocation Fund is 55% stocks, 25% bonds, and 20% other securities.

This mix of investments is intended to balance the potential for growth with the need for stability and income.

The fund's investment strategy is based on the Spectrum asset allocation model, which is designed to be a long-term, disciplined approach to investing.

The model seeks to capture the benefits of diversification by investing in a range of asset classes and sectors.

The fund's managers regularly review the asset allocation and make adjustments as needed to ensure the fund remains aligned with its target mix.

This approach is designed to help investors achieve their long-term investment goals, such as saving for retirement or a down payment on a house.

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The T. Rowe Price Spectrum Moderate Growth Allocation Fund has a management fee of 0.58% of the fund's net assets.

The fund's operating expenses are 0.78% of the fund's net assets, which is relatively low compared to other funds in the same category.

These fees and expenses are deducted from the fund's assets to cover the costs of managing the portfolio, including investment research, trading, and administrative costs.

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The operating fees associated with TRSGX are quite reasonable. The expense ratio, which is a key component of these fees, is a relatively low 0.92% of the fund's assets under management (AUM).

This puts TRSGX in the 54.70% percentile in its category, indicating that it's below the average when it comes to expense ratios. On the other hand, the management fee is a more manageable 0.59% of AUM.

Here's a breakdown of the various operating fees associated with TRSGX:

It's worth noting that the 12b-1 fee is not applicable to TRSGX, which is a positive for investors. The administrative fee is also relatively low at 0.15% of AUM.

Sales fees are a crucial aspect of investment management, and it's essential to understand the different types and their associated costs.

For the TGIPX fund, front load sales fees are not applicable, as indicated by the "N/A" in the table. This means investors won't have to pay a sales fee upfront.

Deferred load sales fees, on the other hand, are applicable. The cost of these fees ranges from 1.00% to 5.00% of the fund's assets under management (AUM), depending on the return performance of the fund.

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Trading fees can eat into your investment returns, so it's essential to understand what you're paying.

The trading fees for TGIPX are 0.00% to 2.00% of the Assets Under Management (AUM).

You can expect to pay a maximum redemption fee, but fortunately, it's not applicable in this case, as it's listed as N/A.

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Dividend Yield Analysis is a crucial aspect of understanding the fees and expenses associated with an investment.

The dividend yield of an investment is the ratio of the annual dividend payment per share to the stock's current price per share. For example, the T. Rowe Price Spectrum Moderate Growth Allocation Fund (TRSGX) had a dividend yield of 1.61% as of the last available data.

This means that for every dollar invested in the fund, you can expect to receive 1.61 cents in dividend payments per year. The fund's dividend yield has ranged from 0.71% in 2021 to 1.84% in 2023.

Here is a comparison of the dividend yields of TRSGX and another fund, TGIPX, with their respective category averages:

As you can see, TRSGX's dividend yield is lower than TGIPX's, but still higher than the category average. It's essential to consider the dividend yield when evaluating the fees and expenses associated with an investment, as it can impact your overall returns.

The T. Rowe Price Spectrum Moderate Growth Allocation Fund has a clear investment strategy in place, which is reflected in its asset allocation. Stocks make up a significant 91.37% of the fund's weighting, with a return potential of 100.10% on the high end.

The fund's allocation to bonds is relatively modest at 6.36%, but still offers a return potential of 102.71% on the high end. Cash and other assets make up smaller portions of the fund, at 1.83% and 0.36% respectively.

A key aspect of the fund's strategy is its focus on equity, with a target allocation of 70% to 85%. This is reflected in the fund's Morningstar Rating and its total assets of $1.27B, which suggests a strong track record and significant investor interest.

Asset allocation is a crucial aspect of any investment strategy, and it's essential to understand how different asset classes can impact your portfolio.

Stocks make up the largest portion of this fund, with a weighting of 91.37% and a return potential of up to 100.10%.

Bonds are a smaller but still significant component, with a weighting of 6.36% and a return potential of up to 102.71%.

Cash and other assets also have a place in the mix, with weightings of 1.83% and 0.36%, respectively.

One asset class that stands out is convertible bonds, which have a weighting of just 0.13% but a surprisingly high return potential of up to 26.48%.

In terms of return potential, here's a breakdown of the different asset classes:

The stock sector breakdown is a crucial aspect of any investment strategy. It helps you understand which sectors are performing well and which ones are lagging behind.

Technology is the largest sector in the breakdown, accounting for 19.50% of the weighting. This is a significant chunk of the overall market.

The return on investment for technology is impressive, with a high of 52.93% and a low of 3.31%. This means that if you invest in technology, you could potentially see a significant return on your investment.

Healthcare is another sector that's worth considering, with a weighting of 16.10% and a return on investment ranging from 0.00% to 36.30%.

Let's take a closer look at the sector breakdown:

The Industrials sector has a high return on investment, but also a high TGIPX % Rank of 90.53%, indicating that it's a bit riskier than some of the other sectors.

The Utilities sector has a low return on investment, but it's also a relatively safe sector with a low TGIPX % Rank of 17.19%.

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Christine Ninon joined Charles Swerver and Toby Thompson as a portfolio manager on the T. Roe Price Spectrum series of funds on January 1, 2025.

This change marked a significant shift in the leadership of the funds, with Ninon taking on a key role alongside Swerver and Thompson.

Ninon had already been a member of the investment advisory committee and had served as an associate portfolio manager on the multi-asset team since 2015.

Her experience on the multi-asset team for five years prior to her promotion provided a solid foundation for her new role as portfolio manager.

The change did not affect the series' High People rating, nor its overall Mornings Medalist Ratings.

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A moderate growth fund is a great option for investors who want to balance risk and potential returns. This type of fund typically allocates 70% to 85% of its assets to equity investments.

The T. Rowe Price Spectrum Moderate Growth Allocation Fund (TRSGX) is a good example of a moderate growth fund, with a Morningstar rating and total assets of $1.27B.

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Investors in a moderate growth fund can expect a mix of stock sectors, including technology, healthcare, and financial services. According to the fund's sector breakdown, technology accounts for 19.50% of the allocation, followed by healthcare at 16.10%.

Here's a breakdown of the fund's sector allocation:

The fund's asset allocation also includes bonds, cash, and other investments, which can provide a stable foundation for the portfolio.

The T. Rowe Price Spectrum Moderate Growth Allocation Fund has a strong track record when it comes to distributions. Its YTD Total Return is 1.2%, indicating a steady growth in investment value over the past year.

The fund's 3 Yr Annualized Total Return is 3.5%, and its 5 Yr Annualized Total Return is 7.1%, showing a consistent increase in investment returns over the past few years. You can expect annual capital gain distributions, which is a key aspect of this fund.

One of the notable features of this fund is its dividend yield, which is 1.9%. This means that for every dollar invested, you can expect to receive 1.9 cents in dividend payments annually.

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The T. Rowe Price Spectrum Moderate Growth Allocation Fund has a volatility of 2.40%, representing the average percentage change in the investment's value over the past month.

This level of volatility can be seen in the fund's rolling one-month volatility chart, which shows the fluctuations in the investment's value.

Investors should consider this volatility when deciding whether to invest in the fund, as it can impact their overall returns.

The Sharpe ratio is a key metric for evaluating an investment's performance. It takes into account both price changes and dividends.

A Sharpe ratio of 0.80 indicates a relatively strong risk-adjusted return, as seen in the case of the T. Rowe Price Spectrum Moderate Growth Allocation Fund.

This value is based on a one-year period of trading data, providing a snapshot of the investment's historical performance.

The Sharpe ratio is a useful tool for comparing an investment's performance to a benchmark, offering insights into its risk-adjusted returns.

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Volatility can be a wild ride, but it's essential to know what you're getting into. The current T. Rowe Price Spectrum Moderate Growth Allocation Fund volatility is 2.40%.

This level of volatility represents the average percentage change in the investment's value, either up or down, over the past month. The chart below shows the rolling one-month volatility.

The worst drawdowns are a crucial aspect of risk and volatility. A maximum drawdown of 56.29% occurred in the T. Rowe Price Spectrum Moderate Growth Allocation Fund on Mar 9, 2009.

This massive drawdown took 961 trading sessions to recover from. Imagine having to wait nearly three years for your investments to get back to even!

The current drawdown is significantly lower at 9.66%. However, it's essential to be aware of the fund's history to make informed decisions.

The table below breaks down the worst drawdowns in the T. Rowe Price Spectrum Moderate Growth Allocation Fund.

These numbers highlight the importance of understanding and managing risk in your investment portfolio.

The T. Rowe Price Spectrum Moderate Growth Allocation Fund (TRSGX) has consistently ranked well in its category, with a 3-year return of 3.4% and a 5-year return of 7.0%, both of which are above the category average.

In the trailing return ranking, TRSGX has a 1-year return of 16.0% and a 10-year return of 8.2%, ranking it 37.28% and 18.78% respectively in its category.

The fund's performance is also notable in calendar-year returns, with a 2024 return of 12.6% and a 2023 return of 18.0%.

Here's a breakdown of TRSGX's ranking in its category over the past few years:

According to the risk-adjusted performance rank, TRSGX has a current rank of 41, indicating average performance compared to other mutual funds.

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The Portfolio of the T. Rowe Price Spectrum Moderate Growth Allocation Fund is a diversified mix of equity and bond holdings. As of November 30, 2024, the fund's current portfolio date, the equity holdings are minimal.

The fund's top 10 holdings include a mix of sectors, with technology being the most represented sector, accounting for 3.09% of the portfolio weight. The market value of the top 10 holdings is approximately $192.0 million.

Here is a breakdown of the fund's sector weights as of the current portfolio date:

The stock geographic breakdown of a portfolio is a crucial aspect of understanding its overall performance. In our analysis, the US market accounts for a whopping 74.95% of the portfolio's weighting.

Breaking it down further, we can see that the US market has a return range of 0.00% to 100.10%, which is significantly higher than the non-US market. This suggests that the portfolio's performance is heavily influenced by the US market.

The non-US market, on the other hand, makes up 16.42% of the portfolio's weighting. Its return range is much more limited, with a maximum return of 20.60%. This indicates that the non-US market has a more subdued impact on the portfolio's overall performance.

Here's a summary of the stock geographic breakdown:

The Portfolio Holdings section provides a snapshot of the current state of the portfolio, including the date of the most recent holdings update.

As of November 30, 2024, the portfolio has a significant portion of its assets in the top 10 holdings, with 28.8% of the total assets invested in these positions.

The top 10 holdings are dominated by technology companies, with the first three positions being held by technology companies.

Here's a breakdown of the top 10 holdings:

These holdings are a significant portion of the portfolio, and understanding their characteristics can help inform investment decisions.