T Rowe Price, a US-based investment management organisation, has expanded its fixed-income investment offerings by launching the strategic income fund.
According to the company, the new fund seeks high income and some capital appreciation by investing in as many as 12 asset classes, including both the US and non-US securities. At least 80% of its net assets will be invested in income-producing securities or other income-producing investments. Individual investors can access the strategy through a no-load mutual fund or advisor class shares that are available through financial intermediaries.
As much as 65% of the fund can be invested in non-investment-grade securities and as much as 50% can be invested in non-US dollar-denominated foreign debt securities. The portfolio’s weighted average maturity is expected to be between four and 15 years.
Investments will include corporate bonds issued in the US and abroad, high-yield bonds and loans, mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, emerging market debt, convertible bonds, preferred stock and government debt. The allocation to each asset class will vary depending on market conditions.
The fund’s management team is led by Steve Huber who has over 18 years of investment management experience. Currently, he leads a team that manages
T Rowe Price’s core and core plus strategies. Joining him on the management team are T Rowe Price fixed-income portfolio managers Mike Conelius, Andrew McCormick, Mike McGonigle and David Stanley.
Mr Huber said: With a flexible investment programme, the strategic income fund’s exposure to a variety of debt instruments helps to moderate the risks of investing in high-yield bonds and foreign securities. While the fund invests without borders and focuses on securities with higher risk/reward potential, it tempers that risk by maintaining a significant exposure to investment-grade securities that aim to preserve capital.
