| Investment Objective: |
Under normal conditions, the fund will invest at least 80% of its net assets in bonds. For purposes of determining whether the fund invests at least 80% of its net asset in bonds, the fund includes the market value of derivative instruments that are linked to, or provide investment exposure to, bonds. Shareholders will receive at least 60 days prior notice of a change in the fund s policy. The fund invests in a diversified portfolio of shorter-term investment-grade corporate and government securities, including mortgage-backed securities, municipal securities, money market securities and bank obligations, and securities of foreign issuers, including up to 10% of net assets in non-U.S. dollar-denominated securities of foreign issuers. The fund primarily invests in securities rated investment grade (i.e., rated in one of the four highest credit rating categories) at the time of purchase by at least one of the major credit rating agencies or, if unrated, deemed by T. Rowe Price to be investment-grade quality. The fund will not be required to sell a holding if it is later downgraded to a non-investment-grade rating. Under normal conditions the fund s dollar-weighted average effective maturity will be 1.5 years or less. |
