BALTIMORE , Dec. 14, 2020 /PRNewswire/ --
NEWS
T. Rowe Price (NASDAQ-GS: TROW) has launched a new fixed income fund designed to deliver higher income while limiting volatility and actively manage downside risk. The fund, T. Rowe Price Short Duration Income Fund, serves as a complement to other T. Rowe Price low duration funds by targeting a higher tracking error than more traditional short duration funds, while also seeking to limit volatility through various market environments.
T. ROWE PRICE SHORT DURATION INCOME FUND DETAILS
- The T. Rowe Price Short Duration Income Fund will invest in a wide range of fixed income securities, including corporates, government bonds, emerging market debt, mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, bank loans, and derivatives. The strategy is permitted to invest up to 35% of the portfolio in non-investment grade securities. However, the range of non-investment grade holdings is expected to be closer to 10-20% of the portfolio in most periods.
- The fund's duration, or its sensitivity to fluctuations in interest rates, is expected to be within +/-50% of its benchmark index, the Bloomberg Barclays US Corporate 1-3 Year Index.
- The fund is designed for investors who are seeking a fixed income fund focused on short- duration bonds that delivers higher income potential than traditional short-term bond offerings.
- The Short Duration Income Fund will be co-managed by Cheryl Mickel , CFA, and Steven Kohlenstein , CFA. Ms. Mickel is head of T. Rowe Price's U.S. Taxable Low Duration team and a member of the firm's Fixed Income Steering Committee. She has 31 years of investment experience with T. Rowe Price . Mr. Kohlenstein is a portfolio manager in the Fixed Income division, supporting the Low Duration and U.S. Taxable Bond teams. He also is responsible for partnering in the management of securitized credit assets and has 10 years of investment experience with T. Rowe Price .
- The net expense ratio for the Investor Class shares (Ticker: TSDLX) is 0.4% and the net expense ratio for I Class shares (Ticker: TSIDX) is 0.3%.
- The fund's minimum initial investment amounts are $2,500 for the Investor Class shares and $1,000,000 for I Class shares.
QUOTE
Cheryl Mickel , Co-Portfolio Manager, Short Duration Income Fund
"T. Rowe Price's extensive global research platform offers our investment experts the opportunity to uncover opportunities that others might miss. Dedicated research teams have deep expertise across sectors, which allow us to build an efficient portfolio with a diversified credit and sector mix. We believe that the T. Rowe Price Short Duration Income Fund will add value to our line-up of short duration funds and that it can serve clients looking to complement riskier assets within a portfolio, but with the potential for a higher yield than traditional short-term bond strategies."
Download a prospectus or obtain one by calling 1-800-541-8803. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds.
ABOUT T. ROWE PRICE
Founded in 1937, Baltimore -based T. Rowe Price Group, Inc., is a global investment management organization with $1.42 trillion in assets under management as of November 30, 2020 . The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. For more information, visit troweprice.com , Twitter , YouTube , LinkedIn , or Facebook .
All funds are subject to market risk, including the possible loss of principal. Fixed-income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall. Unlike money market funds, which are managed to maintain a stable share price, the fund's price can decline. Yield and share prices will vary with interest rate changes. The fund may underperform during up markets and be negatively affected in down markets. Diversification does not assure a profit or eliminate the risk of loss.
T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds
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SOURCE T. Rowe Price Group, Inc.