Floating Rate Fund

Invests primarily in institutional floating-rate bank loans and other floating-rate debt securities with below investment-grade credit ratings. Broadly diversified across 125–150 credit facilities, with strict exposure limits to manage risk.

The loans and debt securities held by the fund are usually considered speculative and involve a greater risk of default and price decline than higher-rated bonds. This fund could have greater price declines than a fund that invests primarily in high-quality bonds or loans.

PRFRXCUSIP 87279B106
Fund Story Prospectus

Morningstar (Category)

Morningstar
(Overall Rating)1

Bank Loan
  (219 funds)

Data as of 07/31/2019

Data as of 07/31/2019

Fund Manager Tenure2

Net Assets3
(USD)

8yrs
$1.7b

Data as of 07/31/2019

Data as of 07/31/2019

Price
(USD)

Daily Price Change

$9.66
$0.00

Data as of 08/20/2019

Data as of 08/20/2019

Morningstar Ratings™ are based on risk-adjusted returns. Click on "Overall Rating" for the fund's 3-, 5-, and 10-year (if applicable) Morningstar Ratings™.

Paul Massaro
Paul Massaro, Portfolio Manager

Paul Massaro is a portfolio manager for high yield strategies in the Fixed Income Division at T. Rowe Price. He is chairman of the Investment Advisory Committee and portfolio manager of the Floating Rate Bank Loan Strategy. Mr. Massaro also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

View more

Strategy

Investment Objective

The fund seeks high current income and, secondarily, capital appreciation.

Morningstar Fixed Income Style

Low / Limited

Data as of 07/31/2019

The information shown does not reflect any ETFs that may be held in the portfolio.

Morningstar Rating

Period Rating Funds In Category (Bank Loan)
Overall 219
3 Years 219
5 Years 197
10 Years N/A 81

The Morningstar Rating™ for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.

Yields & Dividends (Investor Class)

30-Day SEC Standardized Yield
with waiver
4.88%

Data as of 07/31/2019

without waiver
4.88%

Data as of 07/31/2019

30-Day Annualized Dividend Yield
with waiver
4.88%

Data as of 08/20/2019

Monthly Dividend
(USD)
$0.040415637

Data as of 07/31/2019

Monthly Dividend
Rate
0.03%

Data as of 08/20/2019

Average Annual Total Returns (Investor Class)

1 YR
4.16%
Benchmark
4.01%
Value
0.15% 0.11%

Data as of 06/30/2019

3 YR
4.30%
Benchmark
5.41%
Value
-1.11% -1.06%
5 YR
3.38%
Benchmark
4.04%
Value
-0.66% -0.61%
Since Inception
3.77%
Benchmark
4.59%
Value
-0.82% -0.81%

Expense Ratio

Gross
0.78%
Net
0.78%

Benchmark: S&P/LSTA Performing Loan Index

Fund Inception: 07/29/2011

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when you sell your shares. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions.

The gross expense ratio reflects the fund expenses as stated in the fee table of the fund's prospectus prior to the deduction of any waiver or reimbursement. The net expense ratio reflects fund expenses after the deduction of any waiver or reimbursement.  If a fund has an active contractual expense limitation, the expiration date is shown below the gross and net expense ratio values above.  Expense ratios are as of the most recent prospectus.

Current Year Performance (Investor Class)

Daily YTD
5.98%
Benchmark
6.09%
Value
-0.11%

Data as of 08/20/2019

Monthly YTD
6.25%
Benchmark
6.59%
Value
-0.34%

Data as of 07/31/2019

One Month
0.73%
Benchmark
0.79%
Value
-0.06%
Three Months
0.96%
Benchmark
0.80%
Value
0.16%

Benchmark: S&P/LSTA Performing Loan Index

Fund Inception: 07/29/2011

Asset Allocation

Net Assets
(USD)
$1.7b
Largest US Bonds 86.27% $1.5b
Other View complete Asset Allocation

Data as of 07/31/2019

Holdings

Total
Holdings
301
Largest Holding Asurion 2.93% Was (03/31/2019) 0.21%
Other View complete Full Holdings
Top 10 Issuers 20.50% View the latest Top 10 Issuers

Data as of 06/30/2019

Quality

N/A

Maturity

Weighted Average

5.25 Years

Duration

Weighted Average

0.34 Years

Top

B Rated
46.80%
Was (06/30/2019) 45.15%

Top

5-7 Years
54.42%
Was (06/30/2019) 54.42%

Top

Under 1 Year
89.69%
Was (06/30/2019) 88.31%

Over

Short Term
By 6.02%
Fund 6.02%
Benchmark 0.00%

Over

5-7 Years
By 54.42%
Fund 54.42%
Benchmark 0.00%

Over

Under 1 Year
By 89.69%
Fund 89.69%
Benchmark 0.00%

Under

B Rated
By -9.55%
Fund 46.80%
Benchmark 56.35%

Data as of 07/31/2019

Benchmark: S&P/LSTA Performing Loan Index

Industry

Total
Industries
30
Largest Industry Healthcare 13.86% Was (06/30/2019) 13.32%
Other View complete Industry Diversification

Data as of 07/31/2019

Benchmark: S&P/LSTA Performing Loan Index

Over

Wireless Communications
By 2.75%
Fund 4.94%
Benchmark 2.19%

Under

Services
By -3.83%
Fund 9.73%
Benchmark 13.56%

Data as of 07/31/2019

Team (As of )

Paul Massaro

Paul Massaro
Portfolio Manager

Paul Massaro is a portfolio manager for high yield strategies in the Fixed Income Division at T. Rowe Price. He is chairman of the Investment Advisory Committee and portfolio manager of the Floating Rate Bank Loan Strategy. Mr. Massaro also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

  • Fund manager
    since 2011
  • Years at
    T. Rowe Price 16
  • Years investment
    experience 19
Michael Lesesne

Michael Lesesne
Portfolio Specialist

Michael Lesesne is a global high yield portfolio specialist in the Fixed Income Division at T. Rowe Price. He supports the High Yield, Bank Loan, and Credit Opportunities Strategies, working closely with clients, prospects, and consultants. Mr. Lesesne is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

  • Years at
    T. Rowe Price 7
  • Years investment
    experience 28

For a complete list of the members of the fund's Investment Advisory Committee, please refer to the fund's prospectus.

How to Invest

View platform information
Share Class Min Initial Investment (USD) Min Subsequent Investment (USD) 12b-1 Fee Expense Ratio
Gross Net Limitation Type Limitation Expiration Date
Investor Class
Cusip 87279B106
$2,500 $100 0.00% 0.78% 0.78% N/A N/A
Advisor Class
Cusip 87279B205
$2,500 $100 0.25% 1.07% 0.97% Contractual
09/30/2019
I Class
Cusip 87279B304
$1,000,000* N/A 0.00% 0.65% 0.65% N/A
N/A

* Minimum initial investment $1,000,000. Minimum is generally waived for intermediaries, certain retirement plans, and certain institutional client accounts.

1

© 2019 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. Past performance is no guarantee of future results.

2

Number of years managing the fund.  In the case of co-portfolio management, the longer tenure is displayed.

3

Figure applies to all share classes.

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