T. Rowe Price to Convert Short Duration Income Mutual Fund Into ETF

T. Rowe Price plans to convert its Short Duration Income Fund into the T. Rowe Price Short Duration Income ETF, with the reorganization scheduled for June 25, 2027, and public trading expected to begin June 28. The new ETF will retain the mutual fund’s investment objective, substantially similar strategies, and existing portfolio management team while offering lower net expenses, intraday trading flexibility, daily portfolio transparency, and potential tax efficiencies. The mutual fund will stop accepting new investments after May 14, 2027, with redemptions permitted through June 22. Eligible shareholders will automatically receive ETF shares of equivalent net asset value. Some direct-account holders may instead be transferred into a Treasury money market fund. The conversion is intended to be tax-free, although certain distributions and redemptions may trigger taxes. Shareholder approval is not required.