T. Rowe Price's six new funds have no sales charge or minimum purchase

By Toni Weeks

San Diego, Dec. 21 - T. Rowe Price Multi-Sector Account Portfolios, Inc. announced in an N-1A filing with the Securities and Exchange Commission that it is planning six new funds. The funds are expected to launch March 1.

All of the funds will seek high current income and, secondarily, capital appreciation. There is no minimum purchase requirement for initial or subsequent purchase.

The Emerging Account Markets Bond Multi-Sector Portfolio will invest in emerging market bonds, normally investing at least 80% of its net assets, including any borrowings for investment purposes, in bonds issued by governments, government agencies and supranational organizations of, as well as in corporate issuers located in or conducting the predominant part of their business in, the emerging market countries of Latin America, Asia, Europe, Africa and the Middle East.

T. Rowe Price expects that many of the securities held by the fund will be dollar-denominated, but the fund may also hold securities denominated in emerging market and other currencies. The fund expects to maintain an intermediate- to long-term weighted average maturity, but is not subject to restrictions on the maturity of the portfolio.

The portfolio manager will be Michael J. Conelius, chairman of the investment advisory committee that T. Rowe has established with respect to the fund.

The Emerging Markets Local Multi-Sector Account Portfolio will normally invest at least 80% of its net assets, including any borrowings for investment purposes, in securities that are denominated in emerging markets currencies and in derivative instruments that provide investment exposure to emerging market securities or currencies.

The securities can include fixed-rate and floating-rate bonds issued by governments, government agencies and supranational organizations of, as well as corporate issuers located in or conducting the predominant part of their business activities in, the emerging market countries of Latin America, Asia, Europe, Africa and the Middle East.

The fund will invest in securities where the combination of fixed-income returns and currency exchange rates appear s attractive or, if the currency trend is unfavorable, where the currency risk can be minimized through hedging. The portfolio may include bonds of any credit quality, and there are no maturity restrictions of the individual or overall portfolio.

The fund's overall net short positions in currencies are limited to 10% of its net assets.

This fund will have a subadviser, which is T. Rowe Price International Ltd. The portfolio managers are Andrew Keirle and Christopher J. Rothery, co-chairmen of the investment advisory committee established y T. Rowe Price on behalf of the fund.

Both the Emerging Account Markets Bond Multi-Sector Portfolio and the Emerging Markets Local Multi-Sector Account Portfolio carry no management fee, and their total annual fund operating expenses will be 0.03%. The funds will bear all costs in connection with the custody of the assets up to 0.025%.

The Floating Rate Multi-Sector Account Portfolio will normally invest at least 80% of its net assets, including any borrowings for investment purposes, in floating-rate loans and floating-rate debt securities, with an emphasis on senior floating-rate loans.

The fund's weighted average maturity is generally expected to be in the four- to eight-year range, although it is not restricted to that range. Most assets will typically be invested in dollar-denominated loans and securities but may also invest in foreign loans and securities. The fund may invest up to 20% of its total assets in non-U.S. dollar-denominated loans and debt securities.

The portfolio managers are Justin T. Gerbereux and Paul M. Massaro, co-charimen of the investment advisory committee set up by T. Rowe on behalf of the fund.

The fund will have no management fees; total annual fund operating expenses will equal 0.02%. The adviser is required to bear any of the fund's custody fees that exceed 0.01% of the fund's average net assets as well as all of the fund's other operating expenses.

The High Yield Multi-Sector Account Portfolio will invest in a diversified portfolio of high-yield corporate bonds. It will normally invest at least 80% of its net assets, including any borrowings for investment purposes, in bonds rated below investment-grade by a major credit rating agency or those that are not rated by a credit rating agency but are deemed to be below investment grade by T. Rowe Price. If a bond is rated differently by such agencies, the lower rating will apply. The fund's weighted average maturity is expected to be in the five- to 10-year range but will vary.

The portfolio manager will be Mark J. Vaselkiv, chairman of the investment advisory committee established for the fund.

The Investment-Grade Corporate Multi-Sector Account Portfolio will normally invest at least 80% of its net assets, including any borrowings for investment purposes, in investment-grade corporate debt securities. Under normal conditions, all of the securities purchased will be rated investment grade by at least one of the major credit rating agencies or, if unrated, deemed to be investment-grade quality by T. Rowe Price. If a security is assigned different ratings by the agencies, the higher rating will apply. The fund may invest up to 10% of its total assets in non-dollar-denominated securities.

The portfolio manager will be David A. Tiberii, chairman of the investment advisory committee set up by the adviser.

Both the High Yield Multi-Sector Account Portfolio and the Investment-Grade Corporate Multi-Sector Account Portfolio will have no management fees, but total annual fund operating expenses will be 0.01% for each fund. T. Rowe Price is required to bear any custody fees that exceed 0.01% of the funds' average net assets as well as all of the funds' other operating expenses.

The Mortgage-Backed Securities Multi-Sector Account Portfolio will normally invest at least 80% of its net assets in dollar-denominated mortgage-backed securities. Under normal conditions, all securities purchased will be rated investment grade or higher.

The portfolio manager is Andrew C. McCormick, chairman of the fund's investment advisory committee.

The fund will have no management fees; total annual fund operating expenses are expected to be 0.02%. T. Rowe is required to bear any of the fund's custody fees that exceed 0.02% of the fund's average net assets as well as all of the fund's other operating expenses.

None of the funds are expected to assess a sales charge to investors.

All of the funds will have the same investment adviser, Baltimore-based T. Rowe Price Associates, Inc.

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