TRP Special Meeting, via "zoom" or some such

Crash

https://www.proxy-direct.com/MeetingDocuments/31551/Spectrum Proxy_OK.pdf
T. Rowe Price Spectrum Diversified Equity Fund
T. Rowe Price Spectrum Income Fund
T. Rowe Price Spectrum International Equity Fund

"...The purpose of the Shareholder Meeting is for Fund shareholders to vote on a proposal that was approved by the Funds’ Board of Directors to amend and restate each Fund’s investment management agreement. The purpose of the proposal is to change each Fund’s overall expense structure. Under the proposal, the amended and restated investment management agreement would provide for the payment of an “all-inclusive” management fee by each Fund and the elimination of the pass-through of operating expenses to the underlying funds in which the Fund invests. The Board of Directors of the Funds recommends that you vote in favor of the proposal with respect to your Fund. If the proposal is approved by a Fund’s shareholders, the Fund would invest in Z Classes of its underlying funds, which is anticipated to result in lower total expense ratios at the time of the expense restructure. The change to the expense structure would also accommodate the future addition of a new share class for the Funds—the I Class—which is designed for institutional and other larger investors and has lower overall shareholder servicing costs than the Funds’ Investor Class. The addition of the I Class could attract larger and more diverse investors to help the Funds further grow in the future...."

I understand the WORDS, but what does it MEAN? (I own RPSIX. )

rforno

Looks like they are proposing to eliminate the need for shareholders to pay the ERs of the other TRP funds held in these funds AND an ER for the wrapped fund - which is a good thing. Also looks like they're setting themselves up to create new share classes of those underlying funds to support institutional players. Based on what you provided above, I don't see a problem here.

msf

Not quite that good. It would be adding a fee on the fund of fund where none currently exists. So virtually no change in total expenses. Here's my comment from the thread where Shadow originally posted the proposed change:

https://mutualfundobserver.com/discuss/discussion/comment/132712/#Comment_132712

Current 0% ER (excluding acquired fund expenses):
https://www.morningstar.com/funds/xnas/rpsix/price

rforno

I didn't see that other thread, so I guess i stand semi-corrected? (thanks!)

msf said:

Not quite that good. It would be adding a fee on the fund of fund where none currently exists. So virtually no change in total expenses. Here's my comment from the thread where Shadow originally posted the proposed change:

https://mutualfundobserver.com/discuss/discussion/comment/132712/#Comment_132712

Current 0% ER (excluding acquired fund expenses):
https://www.morningstar.com/funds/xnas/rpsix/price