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.

Morningstar (Category)

Morningstar
(Overall Rating)1

Bank Loan
  (226 funds)

Data as of 09/30/2021

Data as of 09/30/2021

Fund Manager Tenure2

Net Assets3
(USD)

10yrs
$3.7b

Data as of 09/30/2021

Data as of 09/30/2021

Price
(USD)

Daily Price Change

$9.57
$0.00

Data as of 10/22/2021

Data as of 10/22/2021

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, CFA
Paul Massaro, CFA, Portfolio Manager

Paul Massaro is head of the Global High Yield team and portfolio manager of the Floating Rate Bank Loan Strategy in the Fixed Income Division. He is president and chairman of the Investment Advisory Committees for the Floating Rate and Institutional Income Funds, executive vice president and chairman for the Floating Rate Multi-Sector Account Portfolios, and a vice president and an Investment Advisory Committee member of the Capital Appreciation Fund. Paul is also an Investment Advisory Committee member of the High Yield Fund, High Yield Multi-Sector Account Portfolios, and the Institutional High Yield Fund and a member of the Fixed Income Steering Committee. Paul is a vice president of T. Rowe Price Associates, Inc., T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.

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Strategy

Investment Objective

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

Morningstar Fixed Income Style

Low / Limited

Data as of 09/30/2021

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 226
3 Years 226
5 Years 205
10 Years 134

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
3.48%

Data as of 09/30/2021

without waiver
3.48%

Data as of 09/30/2021

30-Day Annualized Dividend Yield
with waiver
3.86%

Data as of 10/22/2021

Monthly Dividend
(USD)
$0.031906021

Data as of 09/30/2021

Monthly Dividend
Rate
0.02%

Data as of 10/22/2021

Average Annual Total Returns (Investor Class)

1 YR
7.16%
Benchmark
8.82%
Value
-1.66% -1.66%

Data as of 09/30/2021

3 YR
3.58%
Benchmark
4.34%
Value
-0.76% -0.76%

Data as of 09/30/2021

5 YR
3.75%
Benchmark
4.78%
Value
-1.03% -1.03%

Data as of 09/30/2021

10 YR
4.20%
Benchmark
5.16%
Value
-0.96% -0.96%

Data as of 09/30/2021

Benchmark: S&P/LSTA Performing Loan Index

Fund Inception: 07/29/2011

Expense Ratio

Gross
0.76%
Net
0.76%

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.

Investors should note that short term returns greater than 40% are highly unusual and unlikely to be sustained.

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
4.05%
Benchmark
4.86%
Value
-0.81%

Data as of 10/22/2021

Monthly YTD
3.79%
Benchmark
4.62%
Value
-0.83%

Data as of 09/30/2021

One Month
0.54%
Benchmark
0.66%
Value
-0.12%

Data as of 09/30/2021

Three Months
1.00%
Benchmark
1.14%
Value
-0.14%

Data as of 09/30/2021

Benchmark: S&P/LSTA Performing Loan Index

Fund Inception: 07/29/2011

Asset Allocation

Net Assets
(USD)
$3.7b

Data as of 09/30/2021

Largest US Bonds 90.38% $3.4b
Other View complete

Holdings

Total
Holdings
411

Data as of 09/30/2021

Largest Holding Mozart Borrower 1.88%
Other View complete
Top 10 Issuers 16.98% View the latest

Quality

N/A

Maturity

Weighted Average

5.29 Years

Duration

Weighted Average

0.39 Years

Top

B Rated
63.19%
Was (08/31/2021) 62.24%

Top

5-7 Years
49.08%
Was (08/31/2021) 49.08%

Top

Under 1 Year
93.34%
Was (08/31/2021) 92.50%

Over

CCC and Below
By 5.84%
Fund 10.48%
Benchmark 4.63%

Over

5-7 Years
By 49.08%
Fund 49.08%
Benchmark 0.00%

Over

Under 1 Year
By 93.34%
Fund 93.34%
Benchmark 0.00%

Under

BB Rated
By -10.29%
Fund 8.83%
Benchmark 19.12%

Data as of 09/30/2021

Benchmark: S&P/LSTA Performing Loan Index

Industry

Total
Industries
31

Data as of 09/30/2021

Benchmark: S&P/LSTA Performing Loan Index

Largest Industry Healthcare 16.90% Was (08/31/2021) 15.43%
Other View complete Industry Diversification

Over

Healthcare
By 3.46%
Fund 16.90%
Benchmark 13.44%

Under

Cable Operators
By -1.84%
Fund 1.42%
Benchmark 3.26%

Data as of 09/30/2021

Team (As of )

Paul Massaro, CFA

Paul Massaro, CFA
Portfolio Manager

Paul Massaro is head of the Global High Yield team and portfolio manager of the Floating Rate Bank Loan Strategy in the Fixed Income Division. He is president and chairman of the Investment Advisory Committees for the Floating Rate and Institutional Income Funds, executive vice president and chairman for the Floating Rate Multi-Sector Account Portfolios, and a vice president and an Investment Advisory Committee member of the Capital Appreciation Fund. Paul is also an Investment Advisory Committee member of the High Yield Fund, High Yield Multi-Sector Account Portfolios, and the Institutional High Yield Fund and a member of the Fixed Income Steering Committee. Paul is a vice president of T. Rowe Price Associates, Inc., T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.

  • Fund manager
    since 2011
  • Years at
    T. Rowe Price 18
  • Years investment
    experience 21
Michael Lesesne

Michael Lesesne
Portfolio Specialist

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

  • Years at
    T. Rowe Price 9
  • Years investment
    experience 30

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% 0.76% 0.76% N/A N/A
Advisor Class
Cusip 87279B205
$2,500 $100 0.25% 1.04% 0.98% Contractual
09/30/2023
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

© 2021 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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