T. Rowe Price Retirement 2040 Fund
PARDX
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- T. Rowe Price Retirement 2040 Fund (PARDX) is an actively managed target-date mutual fund that seeks the highest total return over time, consistent with an emphasis on both capital growth and income, in relation to its target retirement date of 2040. The fund invests in a diversified portfolio of other T. Rowe Price stock and bond mutual funds and derivatives representing various asset classes and sectors, including U.S. large-cap blend equities such as T. Rowe Price Value Fund Z Class, Growth Stock Fund Z Class, and U.S. Large-Cap Core Fund Z Class; international equities like T. Rowe Price International Value Equity Fund Z Class; fixed income options including T. Rowe Price New Income Z and International Bond (USD Hedged) Z; real assets via T. Rowe Price Real Assets Z; and other holdings such as mid-cap growth, equity index 500, high yield, emerging markets bond, and dynamic global bond funds. Its asset allocation shifts over time, emphasizing capital appreciation early on, balancing growth and income near retirement, and supporting long-term income post-retirement with substantial equity exposure; as of late 2024, the portfolio reflects approximately 58% U.S. stocks, 28% non-U.S. stocks, 7% U.S. bonds, 3% cash, 3% non-U.S. bonds, and minor other assets. Launched on October 30, 2003, by T. Rowe Price Group, Inc., a global investment management firm founded in 1937 and headquartered in Baltimore, Maryland, the fund (Advisor Class) targets investors planning retirement around 2040, assuming age 65 at target date, with total net assets exceeding $25 billion and a net expense ratio of 0.85%. It is available for sale in the United States with minimum initial investments of $2,500 ($1,000 for IRAs) and additional investments of $100, serving individual and institutional retirement savers through brokerage platforms and retirement plans. Recent developments at T. Rowe Price Group, the fund's parent, include a February 2025 strategic partnership with Oak Hill Advisors (its alternative credit subsidiary) and Aspida Holdings Ltd., under which T. Rowe Price and OHA manage Aspida's public and private assets while exploring insurance-linked product development to expand retirement capabilities. In September 2025, T. Rowe Price announced a multi-year collaboration with Goldman Sachs, involving up to $1 billion in open-market stock purchases by Goldman (aiming for 3.5% ownership) to broaden access to public-private market portfolios focused on retirement and wealth channels, with new products expected by mid-2026. Additional operational enhancements encompass a December 2025 transition to Charles River's IMS platform for investment management and earlier efforts like the 2023 acquisition of Retiree, Inc. to bolster retirement income tools. These initiatives support the group's $1.6 trillion in assets under management, including over $1 trillion in retirement assets, across equity, fixed income, multi-asset, and alternatives for clients worldwide.