Ultra Short-Term Bond Fund

Invests in a diversified portfolio of shorter-term investment-grade corporate and government securities, asset-backed securities, and bank obligations. Invests at least 80% in bonds and all of the securities purchased by the fund will be rated investment-grade at the time of purchase.

Due to the nature of the fund’s investment universe, the fund will take on incrementally more credit risk than a money market fund. Additionally, this fund is subject to interest rate risk, as a rise in interest rates may cause the price of its securities to fall.

Morningstar (Category)

Morningstar
(Overall Rating)1

Ultrashort Bond
  (213 funds)

Data as of 08/31/2021

Data as of 08/31/2021

Fund Manager Tenure2

Net Assets3
(USD)

1yr
$5.3b

Data as of 08/31/2021

Data as of 08/31/2021

Price
(USD)

Daily Price Change

$5.08
$0.00

Data as of 09/16/2021

Data as of 09/16/2021

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™.

Alex Obaza, CFA
Alex Obaza, CFA, Portfolio Manager

Alex Obaza is the portfolio manager of the US Ultra Short-Term Bond Strategy in the Fixed Income Division. He is an executive vice president of the Short-Term Bond Funds; a vice president and member of the Investment Advisory Committee for the Corporate Income Fund; chairman of the Investment Advisory Committee for the Ultra Short-Term Bond Fund; and a vice president of the Fixed Income Series, Institutional Income Funds, and Multi-Sector Account Portfolios. He also is an Investment Advisory Committee member of the Institutional Long Duration Credit, Limited-Term Bond Portfolio, and Investment-Grade Corporate Multi-Sector Account Portfolios and a member of the Valuation Committee. Alex is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

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Strategy

Investment Objective

The fund seeks a high level of income consistent with minimal fluctuations in principal value and liquidity.

Morningstar Fixed Income Style

Mid / Limited

Data as of 08/31/2021

The Morningstar Style Box™, a proprietary Morningstar data point, is a 9-square grid that provides a graphical representation of the "investment style" of stocks and mutual funds. See disclaimer at bottom of page for more information.

Yields & Dividends (Investor Class)

30-Day SEC Standardized Yield
with waiver
0.39%

Data as of 08/31/2021

without waiver
0.32%

Data as of 08/31/2021

30-Day Annualized Dividend Yield
with waiver
0.66%

Data as of 09/16/2021

Monthly Dividend
(USD)
$0.002811052

Data as of 08/31/2021

Monthly Dividend
Rate
0.00%

Data as of 09/16/2021

Average Annual Total Returns (Investor Class)

1 YR
1.84%
Benchmark
N/A
Value
N/A 0.89%

Data as of 06/30/2021

3 YR
2.69%
Benchmark
N/A
Value
N/A 0.88%

Data as of 06/30/2021

5 YR
2.28%
Benchmark
N/A
Value
N/A 0.77%

Data as of 06/30/2021

Since Inception
1.60%
Benchmark
N/A
Value
N/A N/A

Data as of 06/30/2021

Benchmark: Bloomberg Short-Term Government/Corporate Index

Fund Inception: 12/03/2012

Expense Ratio

Gross
0.44%
Net
0.35%
Limitation Type
Contractual
expires 09/30/2021

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.

The 30-day dividend yield represents the average daily dividends for the 30-day period, annualized and divided by the net asset values per share at the end of the period; it is available the first quarter after the fund's inception. The SEC standardized yield is computed under an SEC standardized formula and reflects an estimated yield to maturity (assuming all portfolio securities are held to maturity); it is available the first month after the fund's inception.

Current Year Performance (Investor Class)

Daily YTD
0.36%
Benchmark
0.14%
Value
0.22%

Data as of 09/16/2021

Monthly YTD
0.33%
Benchmark
0.14%
Value
0.19%

Data as of 08/31/2021

One Month
0.06%
Benchmark
0.02%
Value
0.04%

Data as of 08/31/2021

Three Months
-0.02%
Benchmark
0.02%
Value
-0.04%

Data as of 08/31/2021

Benchmark: Bloomberg Short-Term Government/Corporate Index

Fund Inception: 12/03/2012

Asset Allocation

Net Assets
(USD)
$5.3b

Data as of 08/31/2021

Largest US Bonds 66.05% $3.5b
Other View complete

Holdings

Total
Holdings
680

Data as of 06/30/2021

Largest Holding Sydney Airport Finance Co Pty 0.74% Was (03/31/2021) 0.58%
Other View complete
Top 10 Issuers 13.21% View the latest

Quality

N/A

Maturity

Weighted Average

1.23 Years

Duration

Weighted Average

0.75 Years

Top

BBB
38.82%
Was (07/31/2021) 39.37%

Top

1-3 Years
57.67%
Was (07/31/2021) 57.67%

Top

Under 1 Year
53.50%
Was (07/31/2021) 51.33%

Over

BBB
By 32.47%
Fund 38.82%
Benchmark 6.35%

Over

1-3 Years
By 57.67%
Fund 57.67%
Benchmark 0.00%

Over

1-3 Years
By 45.31%
Fund 45.31%
Benchmark 0.00%

Under

US Treasury
By -72.72%
Fund 2.94%
Benchmark 75.65%

Under

0-1 Years
By -60.48%
Fund 39.52%
Benchmark 100.00%

Under

Under 1 Year
By -46.50%
Fund 53.50%
Benchmark 100.00%

Data as of 08/31/2021

Benchmark: Bloomberg Short-Term Government/Corporate Index

Sectors

Total
Sectors
8

Data as of 08/31/2021

Benchmark: Bloomberg Short-Term Government/Corporate Index

Largest Sector Corporate Bonds & Notes 60.53% Was (07/31/2021) 60.58%
Other View complete

Over

Corporate Bonds & Notes
By 40.14%
Fund 60.53%
Benchmark 20.39%

Under

U.S. Treasury Bonds and Notes
By -72.72%
Fund 2.94%
Benchmark 75.65%

Data as of 08/31/2021

Team (As of )

Alex Obaza, CFA

Alex Obaza, CFA
Portfolio Manager

Alex Obaza is the portfolio manager of the US Ultra Short-Term Bond Strategy in the Fixed Income Division. He is an executive vice president of the Short-Term Bond Funds; a vice president and member of the Investment Advisory Committee for the Corporate Income Fund; chairman of the Investment Advisory Committee for the Ultra Short-Term Bond Fund; and a vice president of the Fixed Income Series, Institutional Income Funds, and Multi-Sector Account Portfolios. He also is an Investment Advisory Committee member of the Institutional Long Duration Credit, Limited-Term Bond Portfolio, and Investment-Grade Corporate Multi-Sector Account Portfolios and a member of the Valuation Committee. Alex is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

  • Fund manager
    since 2020
  • Years at
    T. Rowe Price 16
  • Years investment
    experience 13
Whitney Reid

Whitney Reid
Portfolio Specialist

Whitney Reid is a portfolio specialist in the Fixed Income Division. He supports the Stable Value, Money Market, US Ultra Short-Term Bond, and US Short-Term Bond Strategies and acts as a proxy for fixed income portfolio managers with clients, consultants, and prospects. Whitney is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

  • Years at
    T. Rowe Price 10
  • Years investment
    experience 26

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 77957P303
$2,500 $100 0.00% 0.44% 0.35% Contractual 09/30/2021
I Class
Cusip 77957P501
$1,000,000* N/A 0.00% 0.33% 0.23% Contractual
09/30/2021

* 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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