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T. Rowe Price Government Money Portfolio to be liquidated

TheShadowTheShadow
in Fund Discussions
https://www.sec.gov/Archives/edgar/data/920467/000174177321000689/c497.htm

497 1 c497.htm
T. Rowe Price Government Money Portfolio

Supplement to Prospectus and Summary Prospectus Dated May 1, 2020

At a Board meeting held on March 9, 2021, the fund’s Board of Directors approved the liquidation and dissolution of the fund. The liquidation is expected to occur on May 6, 2022 (“Liquidation Date”). Prior to the Liquidation Date, the assets of the fund will be liquidated at the discretion of the fund’s portfolio management and the fund will cease to pursue its investment objective. In anticipation of the liquidation, effective May 3, 2021, the fund will be closed to new insurance providers. At any time prior to the termination, we welcome you to exchange your shares of the fund for the same class of shares of another T. Rowe Price fund. After the fund is liquidated, the fund will no longer be offered to shareholders for purchase.

The date of this supplement is March 16, 2021.
E306-041 3/16/21

Comments

  • CrashCrash
    Saw another thread re: State munis being "reorganized." Lotsa changes at TRP. Connected to that new sub-Advisor they're creating for themselves? I own none of the ones mentioned, by the way...
  • msf
    Not to be confused with PRRXX, Government Money Fund.

    "The fund is only available as an investment option for variable annuity and variable life insurance contracts."

    https://www.troweprice.com/literature/public/country/us/language/en/literature-type/prospectus/sub-type/vip?productCode=PRP&currency=USD
  • CrashCrash
    ah, ok. +1.
  • TheShadowTheShadow
    I boo booed.
  • msf
    Not a boo boo, just a fund that most people wouldn't be looking at. The fund is also a good answer to the question: who would buy a bond (or bond fund) with a negative yield?

    T. Rowe Price used to offer a variable annuity. While it hasn't been available for new investors in years, it is still around. The only cash alternative in that VA is (soon to be "was") the Government Money Portfolio.

    If investors wanted to flee to safety, this was their only option within the annuity. Even though YTD (through Feb 28) it had lost 0.07% (including VA fees), and over the past year it lost 0.43%.
    https://fsbl.com/annuities/t-rowe-price-performance/

    I'm not picking on TRP here. No matter how low VA fees are, when MMFs yield 0.01% (including subsidies), investors will lose money with them. Here's the only MMF offered in Fidelity's Personal Retirement Annuity. Its negative returns (-0.05% YTD as of March 17, and -0.16% over the year ending Feb 28) incorporate the VA fees.

    https://fundresearch.fidelity.com/annuities/summary/FTNJC
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