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T. Rowe Price New Horizons and Emerging Markets Stock Funds reopening to new investors

edited March 2023 in Fund Discussions

497 1 c497.htm

T. Rowe Price Emerging Markets Stock Fund
T. Rowe Price Institutional Emerging Markets Equity Fund

Supplement to Prospectuses and Summary Prospectuses dated March 1, 2023

T. Rowe Price New Horizons Fund

Supplement to Prospectus and Summary Prospectus dated May 1, 2022

Effective April 26, 2023, the funds will resume accepting new accounts and purchases from most investors who invest directly with T. Rowe Price.

Accordingly, effective April 26, 2023, the first sentence under “Purchase and Sale of Fund Shares” in each summary prospectus and section 1 of each prospectus is deleted in its entirety. In addition, the section entitled “Closed to New Investors” in Section 2 of the prospectus is deleted in its entirety.
The date of this supplement is March 22, 2023.
G44-041 3/22/23


  • small caps. thanks, but no thank you.
  • Right now is not the best time to invest in smaller caps and emerging market. TRP must have sizable outflow last year for them to reopen these two closed funds.
  • I’m hoping and praying they reopen PRWCX
  • Email from T Rowe Price concerning the reopening:

    View in browser
    T. Rowe Price Log in to your account T. Rowe Price
    Dear Investor,
    Fund Name Ticker CUSIP

    T. Rowe Price Emerging Markets Stock Fund – Investor Class PRMSX 77956H864

    T. Rowe Price Emerging Markets Stock Fund – I Class PRZIX 77956H484

    T. Rowe Price Institutional Emerging Markets Equity Fund IEMFX 74144Q203

    T. Rowe Price New Horizons Fund – Investor Class PRNHX 779562107

    T. Rowe Price New Horizons Fund – I Class PRJIX 779562206

    We are writing to inform you that effective April 26, 2023, we are removing the purchase restrictions on the Emerging Markets Stock Fund, Institutional Emerging Markets Equity Fund, and New Horizons Fund.

    These funds have been restricted to all investors due to capacity constraints. At that time, we were concerned that continued significant cash inflows would overwhelm the portfolio manager’s ability to invest prudently. This change now allows investors who trade directly with T. Rowe Price to open new accounts in the funds.

    Since that time, market conditions have changed, and overall assets under management have decreased. Following a thorough review of net flows and other factors related to the potential capacity of the strategy, we believe we can accommodate controlled asset growth over time.

    Thank you for your continued business and partnership with T. Rowe Price. If you have any questions regarding this matter, please feel free to reach out to us.

    Download a prospectus for the T. Rowe Price Emerging Markets Stock Fund, the T. Rowe Price Institutional Emerging Markets Equity Fund and the T. Rowe Price New Horizons Fund.

    All funds are subject to market risk, including the potential loss of principal.

    This communication does not undertake to give investment advice in a fiduciary capacity. T. Rowe Price Associates, Inc., and/or its affiliates receive revenue from T. Rowe Price investment products and services.

    This email may be considered advertising under federal law.

    T. Rowe Price Investment Services, Inc.
  • Kind of a pain to have to buy from them directly.
  • @LewisBraham

    Yes it is; however, once you open an account with T Rowe, you should be able to transfer the account to your brokerage account.
  • @TheShadow do you mean transfer the fund position to the brokerage account? also is this generally true of other funds too? That once you buy directly with them, the position can be transferred out? Does it depend on the target brokerage account's ability to hold the fund?
  • edited March 2023
    There is a filing for several active Price ETFs, including TCAF (although 80%+ equity; ER 0.31% only) to be managed by Giroux (PRWCX). Filing also includes several other active ETFs.
  • It depends on a lot of things. I've transferred a few funds that one could not (at the time) open at a brokerage.

    Most recently, I transferred some Vanguard admiral class shares to Merrill (for a bonus and to maintain a balance for higher credit card rebates). One cannot open new admiral share accounts there for most Vanguard funds.

    I was told that I could not transfer Fidelity funds there - at least the funds I asked about. (Though they offer institutional share classes of several Fidelity MM funds with a $1K min.) But other brokerages can hold Fidelity funds, e.g. Schwab.

    I have a legacy Franklin (from Legg Mason, from Citi, from Salamon Bros.) fund. The original share class, which became institutional (at Salamon) now has a $1M min. Multiple brokerages told me they could accept the transfer from Legg Mason. But Legg Mason refused to transfer any account unless it met the share class min. (Though it would transfer a smaller amount to a charity.)

    Franklin was more agreeable, and I've transferred the holding. At the time of the transfer, I was told by the brokerage that they could hold (and sell) the shares but I would not be able to buy more shares. I just checked and the system appears to let me place a buy order. Things change.

    I purchased a Columbia fund that was closed except for direct investment. The prospectus clearly stated that new accounts could not be transferred to a brokerage for six(?) months. After that holding period, transfers were allowed.

    So the ability to transfer can depend on where to, where from, and when. The ability to add to the account may depend on the particular brokerage and possibly the fund rules as well. The best answer is to ask before opening the account.
  • edited March 2023
    Thank you
  • @Devo,

    I think the question has been answered above. I own FPA Queens Road Small Cap Value Fund I class since I owned its predecessor FPA Capital Fund. My broker has asked if I wanted to transfer my FPA account to them. I still keep the fund with FPA transfer agent since my history shows I was a FPA Capital investor despite not having $100K invested in the fund. Also, a brokerage may impose a restriction on my account (not verified as it may vary from brokerage to brokerage) since I do not have the $100K as required for the I class shares as well as should the fund close again, the brokerage may not allow additional investments.

    You need to check with your broker on their requirements.
  • The TCAF etf news may require its own discussion thread.
  • carew388 said:

    The TCAF etf news may require its own discussion thread.


  • It never hurts to ask. I told Schwab I wanted to transfer VTMFX although they charge $75 to buy additional shares for Admiral class. They agreed I could and buy more without a fee.
  • Make sure you get it in writing. All Vanguard funds are on transaction-fee platform at Fidelity ($50). Additional purchases can be made using their automated purchase feature ($5 per trade). Learned that from @msf awhile back. Selling these shares are free from transaction fee.
  • I just checked and Fidelity charges $75 for Vanguard and Dodge and Cox funds. A $50 fee would have been a real investor improvement for Fidelity but I guess Abigail Johnson needs to keep her net worth over $20 billion !
  • I stand corrected again. It used to be $50, but Fidelity would blame that on HIGH inflation.
  • Fidelity's $75.00 transaction fee for Vanguard and Dodge & Cox funds has been in place for years.
    Their transaction fee for most other fund families is $49.95.
  • carew388 said:

    I just checked and Fidelity charges $75 for Vanguard and Dodge and Cox funds. A $50 fee would have been a real investor improvement for Fidelity but I guess Abigail Johnson needs to keep her net worth over $20 billion !

    Don't forget Schwab funds. Fidelity charges a $75 transaction fee for those as well.

    Brokerages extract fees from mutual fund families to carry their funds on the brokerage platform even when the platform charges investors a TF to trade those funds. If a fund family won't pay the fee for shelf space, the brokerage may decide to charge investors a higher transaction fee, or it may simply choose not to carry the fund family.

    I assume that Fidelity gets value in being able to say that it offers Vanguard, D&C, and Schwab funds, regardless of how many people actually pay the higher TF.
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