T. Rowe Price Launches Short Duration Income Fund

About this update from T. Rowe Price Group, Inc.

[{"type":"text","content":"New fund to complement existing short duration suite\n\n\nBALTIMORE, Dec. 14, 2020 /PRNewswire/ --\nNEWS\nT. 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.\nT. ROWE PRICE SHORT DURATION INCOME FUND DETAILS\nThe 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\nCheryl Mickel, Co-Portfolio Manager, Short Duration Income Fun...

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