Strategy

US Inflation Protected Bond

The US Inflation Protected Bond Composite seeks to provide inflation protection and income by investing primarily in inflation protected debt securities.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

5.32%
0.53%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

8.58%
0.47

Inception Date 30-Nov-2002

Performance figures calculated in USD

Other Literature

Stephen L. Bartolini, CFA
Stephen L. Bartolini, CFA, Co-Portfolio Manager

Steve Bartolini is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Bartolini is the lead portfolio manager of the U.S. Core Bond Strategy, the U.S. Inflation Protected Strategy, and the U.S. Short-Term Inflation Focused Bond Strategy. He also co-heads the firm's global interest rate and currency strategy team and is a member of the portfolio strategy team for U.S. taxable bond strategies. Mr. Bartolini is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

 

Strategy

Investment Approach

  • Focus primarily on U.S. Treasury inflation-protected securities (TIPS), with the ability to integrate non-U.S. inflation-protected securities.
  • Broad TIPS exposure is also complemented by high-quality securities from other sectors such as mortgage-backed, commercial mortgage-backed and corporate securities to enhance diversification and the risk profile of the overall portfolio.
  • Integrate proprietary credit and capital market research to identify market inefficiencies.
  • Disciplined strategic and tactical sector allocation process - with input from other portfolio managers, sector specialists, and economics team.
  • Add alpha through security selection, leveraging global research capabilities.
  • Exploit market inefficiencies through opportunistic trading conducted by specialist teams.
  • Deflationary conditions (when inflation is negative) could cause the fund’s principal and income to decrease in value. Yield and share price will vary with interest rate changes.

Portfolio Construction

  • Invests at least 80% of assets in inflation-protected bonds
  • Up to 20% of assets may be invested in non-U.S. inflation-protected securities
  • All non-treasury securities purchased will be rated “A” or better
  • Tracking error will typically range between 30 and 100 basis points
  • Target value added will typically range between 50 and 60 basis points

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 90.75% Was (31-Mar-2020) 86.88%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2020

Holdings

Total
Holdings
150
Largest Holding U.S. Treasury Inflation Indexed Bonds 10.44% Was (31-Mar-2020) 10.46%
Top 10 Holdings 51.33%
Other View Full Holdings Quarterly data as of 30-Jun-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BBB US Treasury
By % 4.93% -12.58%
Portfolio 4.93% 87.42%
Benchmark 0.00% 100.00%

Average Credit Quality

AAA

Monthly Data as of 30-Jun-2020
Benchmark:  Bloomberg Barclays U.S. TIPS Index

Sources: Moody's Investors Service; if Moody's does not rate a security, then Standard & Poor's (S&P) is used as a secondary source. When available, T. Rowe Price will use Fitch for securities that are not rated by Moody's or S&P. T. Rowe Price does not evaluate these ratings, but simply assigns them to the appropriate credit quality category as determined by the rating agency. 

U.S. government agency securities are issued or guaranteed by a U.S. government agency and may include conventional pass-through securities and collateralized mortgage obligations. Unlike Treasuries, government agency securities are not issued directly by the U.S. government and are generally unrated but may have credit support from the U.S. Treasury (e.g., FHLMC and FNMA issues) or a direct government guarantee (e.g., GNMA issues). Therefore, this category may include rated and unrated securities. 

U.S. Treasury securities are issued by the U.S. Treasury and are backed by the full faith and credit of the U.S. government. The ratings of U.S. Treasury securities are derived from the ratings on the U.S. government. 

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity 0-1 Years 1-3 Years
By % 5.01% -3.31%
Portfolio 5.01% 16.61%
Benchmark 0.00% 19.92%

Weighted Average Maturity

8.11 Years

Monthly Data as of 30-Jun-2020
Benchmark:  Bloomberg Barclays U.S. TIPS Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Under 1 Year 7-10 Years
By % 14.30% -23.32%
Portfolio 14.30% 0.00%
Benchmark 0.00% 23.32%

Weighted Average Duration

4.56 Years

Monthly Data as of 30-Jun-2020
Benchmark:  Bloomberg Barclays U.S. TIPS Index

Sectors

Total
Sectors
8
Largest Sector TIPS 87.42% Was (31-Mar-2020) 82.16%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: Bloomberg Barclays U.S. TIPS Index

Largest Overweight

MBS
By4.21%
Portfolio 4.21%
Benchmark 0.00%

Largest Underweight

TIPS
By-12.58%
Portfolio 87.42%
Benchmark 100.00%

Monthly Data as of 30-Jun-2020

Team (As of 01-Oct-2020)

Stephen L. Bartolini, CFA

Steve Bartolini is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Bartolini is the lead portfolio manager of the U.S. Core Bond Strategy, the U.S. Inflation Protected Strategy, and the U.S. Short-Term Inflation Focused Bond Strategy. He also co-heads the firm's global interest rate and currency strategy team and is a member of the portfolio strategy team for U.S. taxable bond strategies. Mr. Bartolini is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Bartolini has 20 years of investment experience, nine of which have been with T. Rowe Price. Prior to his current role, he was a Baltimore-based mortgage trader in Global Trading for three years. Before joining T. Rowe Price in 2010, Mr. Bartolini spent nine years at Fannie Mae in the capital markets area, where he served as a director of portfolio management, a senior trader, and an analyst.

Mr. Bartolini earned a B.S. in economics from George Washington University and an M.B.A. in finance from the University of Maryland, Robert H. Smith School of Business. He also has earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    2016
  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    21
Mike Sewell, CFA®

Mike Sewell is a portfolio manager in the Fixed Income Division, co-managing the US Inflation Protected Bond and US Short-Term Inflation Focused Bond Strategies and providing managerial support for Treasuries. He is an executive vice president and a cochairman of the Investment Advisory Committees of the Inflation Protected Bond and Limited Duration Inflation Focused Bond Funds; a vice president of the U.S. Treasury Funds, Inc., and Multi-Sector Account Portfolio, Inc.; and an Investment Advisory Committee member of the U.S. Treasury Intermediate and U.S. Treasury Long-Term Funds. He also is a member of the firm's Global Interest Rate and Currency Strategy team. Mike is a vice president of T. Rowe Price Associates, Inc., and T. Rowe Price Group, Inc.

Mike’s investment experience began in 2007, and he has been with T. Rowe Price since 2004, beginning in the Portfolio Accounting department. After that, he worked as a research liaison, supporting the High Yield and Municipal teams. He also was a portfolio investment analyst in the Fixed Income Quantitative department, where he worked closely with the Municipal and Emerging Markets teams; a trader in Global Trading, trading agency MBS; and an associate portfolio manager on the U.S. Taxable Bond team before assuming his current role.

Mike earned a B.S. in business administration, with a concentration in financial management, from Towson University and an M.S. in finance from Loyola University Maryland. Mike also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Portfolio manager
    since
    2020
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    13
Jeffrey S.  DeVack, CFA

Jeff DeVack is a portfolio specialist in the Fixed Income Division. He is a member of the U.S. Taxable Bond team covering multiple strategies, working closely with clients, consultants, and prospects. Jeff is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Jeff’s investment experience began in 2000, and he has been with T. Rowe Price since 2011, beginning as a senior portfolio analyst in the Fixed Income Investment Specialists department. After that, he became a portfolio specialist.  Prior to T. Rowe Price, Jeff was a partner in an investment consulting group at UBS Financial Services, where he worked with both institutional clientele and high-net-worth families. Jeff was also employed by J.P. Morgan Chase & Co., where he started his career working primarily as an investment banking analyst in a group that structured asset-backed securities transactions for Fortune 500 companies.

Jeff earned a B.B.A., magna cum laude, in finance and economics from Loyola University Maryland, Sellinger School of Business and is a member of Beta Gamma Sigma. He also has earned the Chartered Financial Analyst designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    20

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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