>>This fund typically puts about 60% to 70% of its assets in stocks, giving bonds and cash about a quarter of assets, and a tenth in preferred stocks and convertibles. The latter can offer equity-like returns with somewhat greater stability. The stock portion of the portfolio is index-like in its sector weightings and price multiples, though manager David Giroux makes moderate bets based on the recommendations of T. Rowe's extensive staff of analysts. The bond portion benefits from modest sector rotation and duration moves, as is typical of the firm's fixed-income funds. The bonds that Giroux tends to invest in are not plain-vanilla either. He favors leveraged loans, convertible bonds, and higher yielding debt. While the fund scores as more risky than the typical balanced allocation offering, its returns have so far justified those risks, and its costs are low<<
From another Morningstar report, naming Giroux as a top asset-allocation fund (both stocks and bonds) "indicating that Morningstar’s analysts think the funds will outperform their peers on a risk-adjusted basis over a full market cycle. And all delivered peer-beating returns in 2012, as well as over longer-term periods."
"Since Giroux joined this fund in June 2006, it has beaten 95% of his category peers to deliver top-decile returns on a risk-adjusted basis, and it has earned a Morningstar Analyst Rating of Gold. The fund has a solid risk/reward profile, capturing strong gains when the market offers them while avoiding some of the downside when returns are falling. Giroux has made good use of T. Rowe Price’s investment and allocation committee structures, as well as a deep bench of analysts. (Before his run as manager of this fund, Giroux was an industrials analyst at the firm.)"
The "POINT" seems to be if you want this style fund, this is a very good choice. I have owned this fund since December 16, 2004 and reinvesting the distributions have enjoyed a total return of 63.56%. I'm happy.