Oct. 31, 2024 |
| T. Rowe Price Summit Municipal Intermediate Fund
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| Summit Municipal Intermediate Fund
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Investment Objective(s)
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The fund seeks the highest
level of income exempt from federal income taxes consistent with moderate price fluctuation.
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| Fees and
Expenses
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This
table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the fund.
You may also incur brokerage commissions and other charges when buying or selling shares of the fund,
which are not reflected in the table or example below.
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| Shareholder fees (fees paid directly from your
investment)
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Shareholder Fees - T. Rowe Price Summit Municipal Intermediate Fund - USD ($)
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Investor Class |
I Class |
Advisor Class |
| Maximum account fee |
$ 20
|
[1] |
none
|
none
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| Annual
fund operating expenses (expenses that you pay each
year as a percentage of the value of your investment)
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| Example
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| This example is intended to help you compare the cost of investing in the fund with the cost of investing
in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated
and then redeem all of your shares at the end of those periods, that your investment has a 5% return
each year, and that the fund’s
operating expenses remain the same. The example also assumes that any current expense limitation arrangement
remains in place for the period noted in the previous table; therefore, the figures have been adjusted
to reflect fee waivers or expense reimbursements only in the periods for which the expense limitation
arrangement is expected to continue. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
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Expense Example - T. Rowe Price Summit Municipal Intermediate Fund - USD ($)
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Investor Class |
I Class |
Advisor Class |
| 1 Year |
$ 41
|
$ 30
|
$ 66
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| 3 Years |
128
|
93
|
208
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| 5 Years |
224
|
163
|
362
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| 10 Years |
$ 505
|
$ 368
|
$ 810
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| Portfolio Turnover
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Portfolio Turnover The fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when
the fund’s shares are held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the fund’s performance. During the most recent fiscal
year, the fund’s portfolio turnover rate was 20.8% of the average value of its portfolio.
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| Principal Investment Strategies
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The fund normally invests
at least 90% of its total assets in investment-grade municipal securities, which are securities rated
in one of the four highest rating categories by at least one credit rating agency or, if unrated, deemed
by the adviser to be of comparable quality. The fund may invest up to 10% of its total assets in below
investment-grade bonds, known as “junk” bonds, including those with the lowest credit ratings. Under
normal conditions, the fund’s dollar-weighted average effective maturity will be three to ten years.
There are no maturity limitations on individual securities. Normally, at least 80% of the fund’s income
will be exempt from federal income taxes. However, up to 20% of the fund’s income could be derived
from securities subject to the alternative minimum tax. Investment decisions generally reflect the
portfolio manager’s outlook for interest rates and the economy, as well as the prices, yields, and
credit quality of various securities in which the fund may invest. From time to time, the
fund may invest a significant portion of its assets in sectors with special risks, such as health care,
transportation, utilities, or private activity bonds.
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| Principal Risks
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Risk Table - T. Rowe Price Summit Municipal Intermediate Fund
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Risk [Text Block] |
| Risk Lose Money [Member] |
The fund’s share price fluctuates, which
means you could lose money by investing in the fund.
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| Municipal securities |
Municipal
securities: The fund may be highly impacted by events tied to the overall municipal securities
markets, which can be very volatile and significantly affected by unfavorable legislative or political
developments and adverse changes in the financial conditions of municipal securities issuers and the
global, national, and/or local economies. Income from municipal securities held by the fund could become
taxable because of changes in tax laws or interpretations by taxing authorities, or noncompliant conduct
of a state or municipality. Other changes in tax laws, including changes to individual or corporate tax
rates, could alter the attractiveness and overall demand for municipal bonds. Certain sectors of the
municipal bond market have special risks and could be affected by certain developments more significantly
than the market as a whole. For example: health care can be negatively impacted by rising expenses and
dependency on third party reimbursements; transportation can be negatively impacted by declining revenues
or unexpectedly high construction or fuel costs; utilities are subject to governmental rate regulation;
and private activity bonds (including industrial development bonds) rely on project revenues and the
creditworthiness of the corporate user as opposed to governmental support. Investing significantly in
municipal obligations backed by revenues of similar types of industries or projects may make the fund
more susceptible to developments affecting those industries and projects. If the fund invests a substantial
amount of its assets in issuers located in a single region, state, or city, there is an increased risk
that environmental, economic, political, and social conditions in those regions will have a significant
impact on the fund’s investment performance.
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| Alternative minimum tax |
Alternative minimum tax: Although the fund
seeks to distribute tax-exempt income, a portion of the fund’s otherwise tax-exempt dividends may be
taxable to those shareholders subject to the federal alternative minimum tax.
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| Market conditions |
Market conditions:
The value of the fund’s investments may decrease, sometimes rapidly or unexpectedly, due to factors
affecting an issuer held by the fund, particular industries, or the overall securities markets. A variety
of factors can increase the volatility of the fund’s holdings and markets generally, including economic,
political, or regulatory developments, recessions, inflation, rapid interest rate changes, war, military
conflict, acts of terrorism, natural disasters, and outbreaks of infectious illnesses or other widespread
public health issues (such as the coronavirus pandemic) and related governmental and public responses
(including sanctions). Certain events may cause instability across global markets, including reduced
liquidity and disruptions in trading markets, while some events may affect certain geographic regions,
countries, sectors, and industries more significantly than others. Government intervention in markets
may impact interest rates, market volatility, and security pricing. These adverse developments may cause
broad declines in market value due to short-term market movements or for significantly longer periods
during more prolonged market downturns.
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| Credit quality |
Credit quality: An issuer of a debt instrument could
suffer an adverse change in financial condition that results in a payment default (failure to make scheduled
interest or principal payments), rating downgrade, or inability to meet a financial obligation. Securities
that are rated below
investment grade carry greater risk of default and should be considered speculative. Economic downturns
often result in reduced levels of taxes collected and revenues earned by municipalities and insufficient
funding to meet pension or health care obligations, which could lessen the overall financial strength
of a municipality and increase the credit risk of the securities it issues. The fund’s credit risk
is increased to the extent it invests in securities that are not backed by the taxing power of the municipal
issuer.
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| Interest rates |
Interest
rates: A rise in interest rates typically causes the price of a fixed rate debt instrument
to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of
a fixed rate debt instrument to rise and the yield to fall. The prices and yields of inflation-linked
bonds are directly impacted by the rate of inflation as well as changes in interest rates. Generally,
funds with longer weighted average maturities and durations carry greater interest rate risk. Changes
in monetary policy made by central banks and/or governments are likely to affect the interest rates or
yields of the securities in which the fund invests.
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| Callable bonds |
Callable bonds: While a rise in interest
rates is the principal source of interest rate risk for bond funds, falling rates bring the possibility
that a bond may be “called,” or redeemed before maturity, and that the proceeds may need to be reinvested
in lower-yielding securities.
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| Liquidity |
Liquidity: The fund may not be able to sell a holding
in a timely manner at a desired price. Reduced liquidity in the bond markets can result from a number
of events, such as limited trading activity, reductions in bond inventory, and rapid or unexpected changes
in interest rates. The secondary market for certain municipal bonds tends to be less developed and less
liquid than many other bond markets. Less liquid markets could lead to greater price volatility and limit
the fund’s ability to sell a holding at a suitable price.
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| Active management |
Active management: The fund’s overall
investment program and holdings selected by the fund’s investment adviser may underperform the broad
markets, relevant indices, or other funds with similar objectives and investment strategies.
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| Cybersecurity breaches |
Cybersecurity
breaches: The fund could be harmed by intentional cyberattacks and other cybersecurity
breaches, including unauthorized access to the fund’s assets, confidential information, or other proprietary
information. In addition, a cybersecurity breach could cause one of the fund’s service providers or
financial intermediaries to suffer unauthorized data access, data corruption, or loss of operational
functionality.
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| Performance
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The following performance information provides
some indication of the risks of investing in the fund. The fund’s performance information represents
only past performance (before and after taxes) and is not necessarily an indication of future results. The
following bar chart illustrates how much returns can differ from year to year by showing calendar year
returns and the best and worst calendar quarter returns during those years for the fund’s
Investor Class. Returns for other share classes vary since they have different expenses.
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| Calendar
Year Returns
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The fund’s return for the nine months ended 9/30/24 was
2.32%.
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| | | | | | | | | | | | | Quarter Ended | Total Return | | | Quarter Ended | Total Return | | | | Best
Quarter | 12/31/23 | 5.94% | | Worst Quarter | 3/31/22 | -5.63% | |
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| Average
Annual Total Returns Periods
ended December 31, 2023
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The
following table shows the average annual total returns for each class of the fund that has been in operation
for at least one full calendar year. The fund’s performance information included in the table is compared
with a regulatory required index that represents an overall securities market (Regulatory Benchmark).
In addition, the table may also include one or more indexes that more closely aligns to the fund’s
investment strategy (Strategy Benchmark(s)). In addition, the table shows hypothetical
after-tax returns to demonstrate how taxes paid by a shareholder may influence returns. After-tax returns
are calculated using the historical highest individual federal marginal income tax rates and do not reflect
the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation
and may differ from those shown. After-tax returns shown are not relevant to investors who hold their
fund shares through tax-deferred arrangements, such as a 401(k) account or an IRA. After-tax returns
are shown only for the Investor Class and will differ for other share classes.
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| Updated performance information
is available through troweprice.com.
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