CHICAGO, Feb 28, 2002 T. Rowe Price is now providing investors access to several investment planning and guidance tools developed by Morningstar, including Morningstar® ClearFutureSM, a retirement planning service, and Morningstar Portfolio X-RaySM, which provides investors with a detailed analysis of their portfolios. The tools are available at no charge on T. Rowe Price's Web site (www.troweprice.com) as part of the firm's commitment to help investors make more informed investment decisions. To make using the tools more convenient, T. Rowe Price has also linked them so that investors only enter data once, instead of separately into each one.
"In addition to providing investors with a better understanding of their total investment portfolios, these tools also offer important guidance on the investment choices they can make within their 401(k) plans, including the role of company stock," said Joseph Healy, vice president of advisory and wealth management services for T. Rowe Price. "The Enron situation has highlighted the need for employees to appropriately diversify their 401(k) savings, and Morningstar ClearFuture certainly helps accomplish this."
The new tools on the T. Rowe Price Web site include:
Morningstar® ClearFutureSM guidance module, which develops a personalized investment plan by mapping existing retirement investments and the mutual funds available in one's 401(k) plan, along with one's risk tolerance, to a selected asset allocation strategy, including sub-asset-class levels, such as small- and large-cap stocks. Using Monte Carlo analysis, ClearFuture also calculates the probability that projected retirement income ranges might be achieved. Other features include guidance on diversification, including the impact of company stock in one's portfolio, and direct links to Morningstar's mutual fund Quicktake® Reports.
Morningstar Portfolio X-RaySM, a comprehensive tool that analyzes one's total portfolio, including the underlying assets within mutual funds, providing a breakdown by asset allocation, stock sector and type, world regions, fees and expenses, and Morningstar® Style Box diversification. A stock intersection report shows the total combined investment in individual stocks through either direct ownership or within various mutual funds.
Morningstar Portfolio Tracker, which helps investors monitor their portfolios by presenting a quick reference page of financial data on a user-defined group of mutual funds and stocks, including information on prices, price changes in dollars and percentages, market value, portfolio weight, and Morningstar ratings.
Morningstar Portfolio Watchlist, which can help investors make purchasing decisions on individual securities. Watchlist monitors an investor's list of securities and automatically updates the portfolio against user-defined targets such as highs and lows, volume, prices, and price changes in dollars and percentages.
"T. Rowe Price has long been a leader in investor education, and we are pleased to be working together to create a resource that gives investors the best investment research and overall portfolio tools in one place," said John Rekenthaler, president of online advice for Morningstar.
The new tools supplement proprietary T. Rowe Price tools such as the Retirement Income Calculator and College Savings Calculator and are the first products resulting from an alliance between T. Rowe Price Associates and Morningstar Associates, LLC. The alliance represents the first collaboration of its kind between Morningstar and a major financial services company, and creates a comprehensive suite of resources for everything from retirement, college, and tax planning to developing an investment strategy and reviewing a portfolio.
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is one of the nation's leading providers of no-load mutual funds and provides investment management services to individual investors, institutional clients, and corporate retirement programs. The firm and its affiliates managed $156.3 billion in assets as of December 31, 2001.
Morningstar, Inc., a global investment research firm, provides financial data, research, online advice, consulting services and investment solutions for individuals, financial advisors, institutions, and the media worldwide. Morningstar ClearFuture is offered by Morningstar Associates, LLC, a registered investment adviser and wholly owned subsidiary of Morningstar, Inc. All other Morningstar tools mentioned are offered by Morningstar, Inc.