The investment seeks a high level of current income; it may also seek capital appreciation.
The fund invests principally in income producing debt instruments. Under normal circumstances, it will invest up to 70% of its assets in non-investment grade (high yield/high risk, sometimes called "junk bonds") debt instruments and floating rate loans. The fund may invest up to 65% of its assets in investment grade debt instruments, including corporate debt securities, asset-backed securities, mortgage-related securities, U.S. government securities and agency securities.
The investment seeks a high level of current income with moderate share price fluctuation.
The fund broadly diversifies its assets among a set of T. Rowe Price mutual funds representing specific market segments. It normally invests in a variety of domestic and international bond funds, a money market fund, and an income-oriented stock fund. The fund can invest in funds holding high-quality domestic and foreign bonds, high-yield bonds, short- and long-term securities, and dividend-paying stocks. It may sell shares of the underlying funds for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities.