BALTIMORE, Sept. 23, 2014 /PRNewswire/ --
News
T. Rowe Price (NASDAQ-GS: TROW)
has introduced two new mutual funds—one that invests in
international stocks and one that invests in noninvestment-grade
municipal bonds.
The International Concentrated Equity Fund is available in an
Investor Class share (PRCNX) and an Advisor Class
share (PRNCX). Each fund share class will build on the
established investment process of its similarly named institutional
strategy, the Institutional Concentrated International Equity Fund
(RPICX).
Additionally, the new Intermediate Tax-Free High Yield Fund,
which is available in an Investor Class share (PRIHX) and Advisor
Class share (PRAHX), will complement the similarly named,
longer-maturity Tax-Free High Yield Fund (PRFHX).
Fund Details—International Concentrated Equity
Fund
- Federico Santilli, who has
managed the T. Rowe Price Institutional Concentrated International
Equity Fund since its inception in mid-2010, will manage the
new fund.
- The fund will be relatively concentrated, consisting of the
investment team's highest-conviction ideas for generating capital
appreciation.
- The fund's focus is on companies that have solid positions in
attractive industries, have an ability to generate visible and
durable free cash flow, and can create shareholder value over
time.
- Stock selection will dictate portfolio construction.
Consequently, the fund may have significant overweights and
underweights compared with the benchmark with respect to region,
country, and sector allocations.
- The net expense ratio is capped at 0.90% for the Investor Class
shares and 1.00% for the Advisor Class shares until February 28, 2017.
- The minimum initial investment in the International
Concentrated Equity Fund is $2,500,
or $1,000 for retirement accounts or
gifts or transfers to minors (UGMA/UTMA) accounts. The
Institutional Concentrated International Equity Fund generally
requires a $1 million minimum initial
investment.
- Share prices are subject to the risks associated with
unfavorable currency exchange rates and political or economic
uncertainty abroad. Further, the fund is "non-diversified," meaning
it may invest a greater portion of its assets in a single company
than in a diversified fund.
Fund Details—Intermediate Tax-Free High Yield
Fund
- James Murphy, who has managed
the T. Rowe Price Tax-Free High Yield Fund since 2002, will also
manage the new fund.
- The Intermediate Tax-Free High Yield Fund's principal
investment strategy is to generate a high level of income that is
exempt from federal taxes.
- Similar to the Tax-Free High Yield Fund, the new fund will be
largely composed of a diversified array of revenue bonds that span
both the lower and below investment-grade municipal bond
universe.
- Both funds are expected to have similar credit quality
profiles—approximately 65% investment-grade (with a focus on A and
BBB rated securities) and 35% below investment-grade
securities.
- In contrast to the Tax-Free High Yield Fund, the new fund will
feature an intermediate-duration profile. The new fund's target is
a weighted average maturity not to exceed 10 years.
- The fund's net expense ratio is capped at 0.75% for the
Investor Class shares and 0.85% for Advisor Class shares until
June 30, 2017.
- The minimum initial investment in the Intermediate Tax-Free
High Yield Fund is $2,500, or
$1,000 for retirement accounts or
gifts or transfers to minors (UGMA/UTMA) accounts.
- Investors should note that if interest rates rise significantly
from current levels bond fund total returns will decline and may
even turn negative in the short term. In addition to their
sensitivity to interest rates, high yield bonds carry a significant
level of credit risk. Some income may be subject to state and local
taxes and the federal alternative minimum tax. Diversification
cannot assure a profit or protect against loss in a declining
market.
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.
Quotes
Federico
Santilli, portfolio manager of the International
Concentrated Equity Fund
"Our investment approach is style-agnostic, which allows us to
invest wherever we find the most attractive opportunities in the
market. Our role, through rigorous fundamental research and a
disciplined process, is to identify superior investment
opportunities and exploit pricing anomalies."
James Murphy, portfolio
manager of the Intermediate Tax-Free High Yield Fund
"Our steady emphasis on picking sound credits for the long term
enables our team to take advantage of market disruptions as they
appear—opportunistically. And, while we continue to believe that
higher interest rates and healthier economic growth will ultimately
come, these conditions should favor patient, research-conscious
investors."
About T. Rowe
Price
Founded in 1937, Baltimore-based T.
Rowe Price (troweprice.com) is a global investment
management organization with $738.4
billion in assets under management as of June 30, 2014. 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 a
variety of 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 (twitter.com/troweprice), YouTube
(youtube.com/trowepricegroup), LinkedIn
(linkedin.com/company/t.-rowe-price), or Facebook
(fb.com/troweprice).
SOURCE T. Rowe Price