The T. Rowe Price New Era Fund is a specialty fund. Specialty funds invest primarily in the securities of a particular industry, sector, type of security, or geographic region. As a nondiversified fund, this fund operates predominantly in the energy and industrials sector, with a majority of its holdings in companies that focus solely on natural resources such as oil and gas. Fifty-five percent of its stocks are based in the United States, while the other 45% are outside of the United States.
The earnings and tangible assets of funds that invest in natural resource companies may benefit from periods of accelerating inflation. The T. Rowe Price New Era Fund is built on long-term gains, which is why it could be used as a hedge against inflation if placed in a well-rounded portfolio.
But it is also a cyclical fund. This means it may experience explosive growth and portray large gains and profits during certain business cycles, while in other economic cycles it may post moderate or below average returns, as well as principal loss. It also has a great deal of sensitivity subject to natural disasters, declining currency value, market liquidity, or political instability, which can all have negative impacts on the performance of the fund.
So when building your portfolio, make sure you are balancing out your risk and accounting for the variety of economic events that can occur over your lifetime.
If you have further questions about the fund, give us a call at 1-800-279-4030.
This is not an offer. Securities can be offered by the prospectus only. The T. Rowe Price New Era Fund is not suitable for all investors and the prospectus should be read carefully by an investor before investing. Investors are advised to consider the investment objectives, risks, charges and expenses before investing. This prospectus, which is available at SEC.gov and weabenefits.com/investments, and may be obtained by calling 800-279-4030, contains this and other information about the fund. Securities offered through WEA Investment Services, Inc, Member FINRA.