A Complex Fixed Income World Calls for a Diversified Approach
Three Reasons to Review Your Fixed Income Allocations
1. Divergence creates opportunity
When monetary policy gets tight in one country, it may loosen in another. With U.S. rates still near history lows, accessing a diversified opportunity set across international fixed income markets may help maximize yield while managing overall portfolio risk.
2. A search for yield introduces risks
Did you inadvertently bring volatility to your fixed income portfolios? With interest rates low for more than a decade, you may have sought to boost returns by investing in lower quality or longer duration fixed income sectors. This may have helped you meet income objectives, but it may have introduced the potential for added risks. Now is a good time to review your portfolio's fixed income allocations to ensure they are aligned with your clients’ investment objectives.
3. Complex markets require the right partner
We understand the importance of broad diversification, in-depth research, and strategic management. A partnership that taps the global resources of T. Rowe Price and the expertise of our dedicated investment professionals can help position your clients to achieve the outcomes they desire in a range of market environments.
A Diverse Roster of Fixed Income Funds
Get familiar with our broad slate of options for the fixed income investor. From tax-free municipal bonds to local currency debt in emerging markets, see how our full range of fixed income strategies offers you the flexibility to help meet the diverse needs of your clients.
A Forward-Looking Investment Approach
We blend longstanding expertise across multiple sectors and regions with an emphasis on innovation to help drive growth and aim to deliver better outcomes for your clients. Our strategic investment approach leverages a proprietary global research platform and a skilled portfolio management team that seeks to identify and seize opportunities that others may overlook.
Experienced Long-Tenured Team
From portfolio managers to credit analysts to bond traders, our specialized investment professionals cover a full range of fixed income markets around the world. Our independent perspectives are informed by a combination of disciplined, macro-level analyses of markets and industries and rigorous fundamental research of individual securities.
A Thoughtful Answer to Managing Risk
We evaluate risk from multiple perspectives and at every step in the investment process—from strategic portfolio design to the construction and management of individual portfolios. Our approach is designed to generate consistent risk-adjusted returns and improve client outcomes.
You can rely on our advisor services to help you refine your fixed income investments by identifying potential enhancements, finding underlying correlations, or bolstering your model portfolios.
Core vs Plus Fixed Income: Core and Plus are terms used in the investments industry to describe two types of fixed income investment strategies. Core generally refers to fixed income investment strategies that focus on investment grade corporate and government bonds. A Plus strategy adds additional fixed income sectors like high-yield bonds, emerging market bonds, and floating rate bank loans in an attempt to improve income or return potential in exchange for a higher risk profile.
This material being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
Risks: Investing involves risk including loss of principal. Diversification neither assures a profit nor eliminates the risk of experiencing investment losses. Fixed income securities are subject to credit risk, inflation, liquidity risk, call risk, and interest rate risk. As interest rates rise, bond prices generally fall. Investments in high yield (junk) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. Bank loans are subject to credit risk and liquidity risk. Emerging market 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.