Quarterly rebalancing of IRAs offered by Price


January 12, 1996

T. Rowe Price Associates Inc. introduced a new service yesterday that automatically shifts assets investors have in their retirement accounts to reduce risk and increase the potential for profits.

Under the new program, called IRA Asset Rebalancing Service, shares are exchanged among IRA mutual fund accounts each quarter so that the same investment mix among the various stock, bond and money market funds selected for the IRA is retained.

Asset rebalancing is important because it not only helps investors manage risk, but it also may help improve investment performance over time, said James S. Riepe, managing director and president of T. Rowe Price Investment Services.

The reason: Assets are shifted from performance leaders to laggards, whether they be stocks, bonds or money market funds. It is the laggards that offer more money-making potential.

The service is free to mutual fund IRA investors with a combined IRA balance (or a combined IRA rollover balance) of at least $25,000.

Baltimore-based T. Rowe Price and its affiliates manage $71 billion in assets, including $7 billion in IRA assets.

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