The new offering seeks high income and some capital appreciation by investing in as many as 12 asset classes, including both U.S. and non-U.S. securities, the company said. 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.
According to a press release, by using T. Rowe Price’s credit research capabilities, the fund will employ a diversified approach to identifying opportunities across the globe. As much as 65% of the fund can be invested in noninvestment-grade securities and as much as 50% can be invested in non-U.S. dollar-denominated foreign debt securities.
Investments will include corporate bonds issued in the U.S. 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 portfolio’s weighted average maturity is expected to be between four and 15 years.
The fund’s management team is led by fixed-income veteran Steve Huber, who has over 18 years of investment management experience.
The minimum initial investment in the Strategic Income Fund (PRSNX) and the Strategic Income Fund-Advisor Class (PRSAX) is $2,500 or $1,000 for retirement plans, gifts, or transfers to minors accounts.
The net expense ratio is estimated to be 0.80%.
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