FIXED INCOME CAPABILITIES

Confidence in complex markets

Whatever the market environment, rely on our deep experience, global reach, and breadth of solutions to help achieve your clients’ long-term fixed income goals. Over the last 10 years, 65% of our fixed income funds outperformed the Morningstar median.1,2

Uncover opportunities and manage risk with our rigorous research, active management, and diverse perspectives.

50+ Years managing fixed income assets

$260+ of fixed income AUM3

230+ fixed income investment professionals

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2022 Best U.S. Large Fund Family

proven performance

Our fixed income funds provided a smoother ride with higher returns.

client-focused products

Fixed income solutions for diverse client needs

Fixed Income Product Capabilities

Semicircle-shaped infographic showing how T. Rowe Price’s fixed income capabilities include strategies and vehicles to meet client goals.

Investors may seek to limit the impact of equity downturns through their fixed income allocations, including core strategies, flexible multi-sector strategies with slightly higher risk.

U.S. Bond Correlations amid Major Equity Downturns (12/31/99 to 6/30/23)

Line graph showing performance of the S&P 500 Index versus the Bloomberg U.S. Aggregate Bond Index from 1999 through 2021, including markers for the Tech Bubble around 2001, the Global Financial Crisis around 2008, and the COVID Crisis around 2020.
Line graph showing correlation of the S&P 500 Index versus the Bloomberg U.S. Aggregate Bond Index from 2000 through 2022, including markers for the Tech Bubble around 2001, the Global Financial Crisis around 2008, and the COVID Crisis around 2020 where the fixed income market was negatively correlated to the equity market.

Past performance is not a reliable indicator of future performance.

Featured Fixed Income Strategies

A benchmark-aware core bond fund with the freedom to invest across a broader set of sectors, designed to increase opportunities to generate returns in all environments

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Pursues total return that seeks to match or incrementally exceed the performance of the U.S. investment-grade bond market

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A conservative investment option that seeks to provide maximum current income while maintaining stability of principal

Income is essential to fixed income returns—and a top priority for many fixed income investors. This includes investors who also seek the potential benefits of tax-free income.

Income has been the primary driver for total returns for several fixed income categories.

Income Returns versus Price Returns (12/31/07 – 6/30/23)

Stacked bar charts for various fixed income categories showing respective breakdowns of income return, price return, negative price return, and income as a percent of total return.
Data table for various fixed income categories showing respective breakdowns of income return, price return, negative price return, and income as a percent of total return indicating that income in the primary drive of fixed income returns.

Past performance is not a reliable indicator of future performance.

Index performance is for illustrative purposes only and is not indicative of any specific investment. Investors cannot invest directly in an index.

Tax-free income is the income received that is not subject to federal income taxes. Some income may be subject to state and local taxes and the federal alternative minimum tax (AMT).

**Bank loan index data are only available from 12/31/2014 - 6/30/2023.

Sources: T. Rowe Price; "Emerging Markets" represents the J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified Index; "U.S. Aggregate" represents the Bloomberg U.S. Aggregate Bond Index. "Global Aggregate" represents the Bloomberg Global Aggregate Index; "Municipals" represents Bloomberg Municipal Bond Index. "U.S. Treasury" represents the Bloomberg U.S. Treasury Index; "U.S. High Yield" represents the Bloomberg U.S. High Yield Index; "Bank Loans" represents S&P/LSTA Performing Loan Index."

Featured Fixed Income Strategies

Seeks high current income and, secondarily, capital appreciation by investing primarily in floating-rate bank loans

Aims to deliver greater income and total return potential by investing primarily in high yield bonds

Invests primarily in long-term low- to upper-medium-grade municipal securities to seek a high level of income exempt from federal income taxes

Fixed income investors can diversify beyond core bond allocations by including international and global bonds in their opportunity set.

More than 60% of fixed income markets are outside the U.S.

Global Fixed Income Outstanding as of December 31, 2022

Donut chart showing various countries' and regions' respective portions of the global fixed income market expressed as percentages indicating the majority of the global fixed income market is outside the United States.

Past performance is not a reliable indicator of future performance.

Source: Bank for International Settlements, SIFMA estimates

Featured Fixed Income Strategies

A broadly diversified portfolio of domestic and foreign debt instruments that seeks to provide high income and some capital appreciation

Seeks high current income and consistent performance by exploiting inefficiencies in the full universe of global fixed income and currency markets

Invests primarily in bonds issued by companies in emerging market countries to seek high current income and, secondarily, capital appreciation

Bank loans, short duration bonds, and Treasury inflation linked bonds have helped protect portfolios during rising rate environments, especially when core bonds significantly underperform.

Certain sectors delivered positive returns during an unprecedented period of sustained inflation and rising interest rates. (3/31/21–11/30/22)

Table chart showing how bank loans, TIPS, short duration bonds, and the U.S. Aggregate Bond Index performed during times when there was a 12-month increase of at least 100 basis points in the 10-year U.S. Treasury yield and in headline inflation.
Bar chart showing how bank loans, TIPS, short duration bonds, and the U.S. Aggregate Bond Index performed an unprecedented period of sustained inflation and rising interest rates (3/31/21–11/30/22) where the broader fixed income markets negative double digits over this period but the other categories were positive.

Past performance is not a reliable indicator of future performance. Cumulative performance from 3/31/21 through 11/30/22 when headline inflation and 10-Year Treasury yields were both positive year over year.

Index performance is for illustrative purposes only and is not indicative of any specific investment. Investors cannot invest directly in an index. BPS = Basis Points are a unit of measure used in finance to describe the percentage change in the value of financial instruments or the rate of change in an index or other benchmark. One basis point is equivalent to 0.01%.

Sources: T. Rowe Price; "U.S. Aggregate" represents the Bloomberg U.S. Aggregate Bond Index. "Bank Loans" represents S&P/LSTA Performing Loan Index. "TIPS" represents the Bloomberg U.S. 1-5 Year Treasury TIPS Index; "Short Duration Bonds" represents the Bloomberg 1-3 Year U.S. Government/Credit Bond Index.

Featured Fixed Income Strategies

Invests in a diversified portfolio of short- and intermediate-term investment-grade inflation-linked securities, including Treasury Inflation Protected Securities, as well as corporate, government, mortgage-backed and asset-backed securities.

Seeks high current income and, secondarily, capital appreciation by investing primarily in floating-rate bank loans

A cash alternative strategy that seeks a high level of income above that of a money market with minimal fluctuations in principal value

Explore vehicles:

Investment Vehicles

Greater Flexibility with Exchange Traded Funds

Combine our fixed income experience with the convenience, cost effectiveness, and tax efficiency of ETFs.

Investment Vehicles

Greater Flexibility with Exchange Traded Funds

Combine our fixed income experience with the convenience, cost effectiveness, and tax efficiency of ETFs.

*Not all strategies are available in all investment vehicles.

SMAs and trusts, as well as mutual funds and ETFs with fewer than 10 years of performance history, are not included in the "Proven Performance" section above. View the performance study details.

“For more than 50 years, our fixed income team has pursued the best ideas from across our global research platform to help our clients succeed.”

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actionable insights

Discover opportunity with insights from our experts.

An inverted yield curve means investors may want to think twice before aggressively jumping into longer‑term U.S. bonds. Credit sectors and global ex‑U.S. markets offer return potential.

Despite last year’s sell‑off, municipal bonds have proved resilient in past periods of economic turmoil and should remain a compelling fixed income option for investors.

Future of Fixed Income in DC Plans, 2022 Survey insights from 150+ DC plan sponsors on how fixed income is offered to plan participants.

An inverted yield curve means investors may want to think twice before aggressively jumping into longer‑term U.S. bonds. Credit sectors and global ex‑U.S. markets offer return potential.

Despite last year’s sell‑off, municipal bonds have proved resilient in past periods of economic turmoil and should remain a compelling fixed income option for investors.

Future of Fixed Income in DC Plans, 2022 Survey insights from 150+ DC plan sponsors on how fixed income is offered to plan participants.

Check out our full collection of fixed income insights.

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Important Information

For more information on the methodology of this analysis, please visit troweprice.com/complete-performance-study.

Past performance is no guarantee of future results. All investments are subject to risk, including the possible loss of principal. Results from other time periods may differ. Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives. Passive investing may lag the performance of actively managed peers as holdings are not reallocated based on changes in market conditions or outlooks on specific securities. Results for other time periods will differ.

Volatility measured via standard deviation, annualized and net of fees, over 10-year rolling periods from 7/1/03 to 6/30/23. 

Analysis by T. Rowe Price.  Comparable passive funds are (1) mutual funds and exchange traded funds classified as an “index fund” in the Morningstar Direct database and (2) in the same Morningstar category as the active funds being analyzed. The performance of the T. Rowe Price active funds were compared against the comparable passive funds using 10-year rolling monthly periods from 7/1/03 to 6/30/23. The analysis was conducted at the Morningstar category level analyzing all open-end funds and exchange traded funds (ETFs) within U.S. Morningstar categories where passive funds are present. Oldest share class returns are used for analysis.  

29 T. Rowe Price funds are analyzed over 1,809 rolling 10-year periods.

Download a mutual fund prospectus; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.

Risk Considerations:
All investments 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. Investments in bank loans may at times become difficult to value and highly illiquid; they are subject to credit risk such as nonpayment of principal or interest, and risks of bankruptcy and insolvency. Investments in high-yield bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as specific country, regional, and economic developments. These risks are generally greater for investments in emerging markets. Some income may be subject to state and local taxes and the federal alternative minimum tax (AMT).

The T. Rowe Price common trust funds (Trusts) are not mutual funds; rather, the Trusts are operated and maintained so as to qualify for exemption from registration as mutual funds pursuant to Section 3(c)(11) of the Investment Company Act of 1940, as amended. The Trusts are established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933. Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. Although the T. Rowe Price Stable Value Common Trust Fund seeks to preserve the value of your investment at $1.00 per unit, it cannot guarantee to do so. It is possible to lose money by investing in the Trust.

1 Source: © 2023 Morningstar, Inc. All rights reserved. The information contained herein: 1) is proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; and 3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

2 Source: Morningstar. Primary share class only. Excludes money market mutual funds, funds with an operating history of less than one year, T. Rowe Price passive funds, and T. Rowe Price funds that are clones of other funds. The data reflects the percentage of T. Rowe Price funds with a 10-year track record that are outperforming the Morningstar category median.

3 The total fixed income assets managed by T. Rowe Price Associates, Inc., and its investment advisory affiliates. Total fixed income assets include all fixed income separate accounts and funds along with a portion of certain T. Rowe Price U.S.-registered multi-asset funds as of June 30, 2023.

Refinitiv Lipper Fund Awards, ©2023 Refinitiv. All rights reserved. Used under license.

ABOUT THE REFINITIV LIPPER FUND AWARDS

The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.

The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60, and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. The link to lipperfundawards.com will cause you to leave T. Rowe Price's website and will redirect you to a website that is not an affiliated of T. Rowe Price.  T. Rowe Price assumes no responsibility for your or any other person's use this third-party website or any of its contents. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.

Winning funds over three years within the 20 largest classifications per award universe according to assets under management are awarded a trophy. Where appropriate, only funds domiciled in the respective country are taken into consideration for determining the largest classifications. All winning groups are awarded a trophy as well. The methodology for awarding trophies in regions is subject to change based on local market needs. However, all winners receive a certificate.

The Best Overall US Fund Group award is given to the group with the lowest average decile ranking of its respective asset class results based on the methodology described above.  Large fund family groups with at least five equity, five bond, and three mixed-asset portfolios are eligible for an overall group award.

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