Strategy
US Investment Grade Core Bond
The US Investment Grade Core Bond Composite seeks current income and capital appreciation primarily through investment in sectors and investment grade securities in U.S. Fixed Income Indices, including the Bloomberg Barclays U.S. Aggregate Index. The strategy does not typically deviate significantly from the benchmark, but has flexibility to do so when market conditions warrant.
3YR Return Annualised (Net)
(View Total Returns)
Tracking Error
(5 Years)
1YR Return (Net)
(View Total Returns)
Information Ratio
(5 Years)
Inception Date 30-Jun-1979
Performance figures calculated in USD
Strategy
Investment Approach
- Focuses primarily on investment-grade, U.S. fixed income securities, with the ability to integrate non-index sectors and securities.
- Integrates proprietary credit and capital market research to identify market inefficiencies and relative value opportunities.
- Adds value primarily through sector allocation and individual security selection. Can also adjust duration and term structure positioning to enhance return potential and defend against rising rates.
- Employs a risk-aware approach, with risk exposures based on conviction levels and available opportunities.
- Exploits market inefficiencies through opportunistic trading conducted by specialist teams.
- Excess Return Target of 50 basis points over a market cycle. (Not a formal objective and it can be changed without prior notice.)
- The excess return target represents the portfolio manager’s goal of outperforming the stated standard benchmark for the strategy, employing its standard investment guidelines. A strategy’s standard benchmark may be different from a client benchmark. The target is based on an analysis of a strategy’s historical performance, investment universe, anticipated future market conditions, peer performance, benchmark characteristics, investment guidelines and other factors. The target reflects the current views of the portfolio manager and is subject to change. There is no guarantee that the target will be realized or achieved and actual results experienced by clients may vary from the target shown.
Portfolio Construction
- Duration is managed within +/- 20% of benchmark
- Sector exposure will typically range +/- 25% relative to the benchmark
- Average credit quality of the portfolio is AA- or better
- Expected tracking error should range between 0.5% and 1.0% in most market environments
Performance
Annualised Performance
Quarterly| 1 YR | 3 YR Annualised |
5 YR Annualised |
10 YR Annualised |
|
|---|---|---|---|---|
| Composite Gross % | 8.02% | 5.31% | 4.56% | 4.12% |
| Composite Net % | 7.76% | 5.05% | 4.30% | 3.86% |
| Benchmark % | 8.74% | 5.32% | 4.30% | 3.82% |
| Excess Return (Gross) % | -0.72% | -0.01% | 0.26% | 0.30% |
Recent Performance
| 3 MonthsData as of 30-Jun-2020 | Year to DateData as of 30-Jun-2020 | |
|---|---|---|
| Composite Gross % | 4.89% | 5.19% |
| Composite Net % | 4.83% | 5.06% |
| Benchmark % | 2.90% | 6.14% |
| Excess Return (Gross) % | 1.99% | -0.95% |
Returns for time periods greater than one year are annualised.
Past performance is not a reliable indicator of future performance.
Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule contained within this material, without the benefit of breakpoints. Gross and net performance returns reflect the reinvestment of dividends and are net of all non-reclaimable withholding taxes on dividends, interest income, and capital gains.
Holdings
Holdings
Total
Holdings
200
Quality Rating View quality analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Quality Rating | BBB | US Treasury |
| By % | 8.33% | -30.27% |
| Portfolio | 22.17% | 7.26% |
| Benchmark | 13.84% | 37.53% |
Average Credit Quality
AA-Sectors
Total
Sectors
8
Largest Overweight
Mortgage
Largest Underweight
U.S. Treasury
Team (As of 05-Aug-2020)
Brian Brennan is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Brennan has lead portfolio management responsibilities for the US Treasury, US Core Plus Bond, and Stable Value Strategies. He also is a member of the portfolio strategy team for T. Rowe Price's core and core plus mandates. Mr. Brennan is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price International Ltd, and T. Rowe Price Trust Company.
Mr. Brennan has 33 years of investment experience, 19 of which have been at T. Rowe Price. Prior to joining T. Rowe Price in 2000, he was a fixed income manager with Howard Hughes Medical Institute, responsible for Treasury, emerging, nondollar, and derivative strategies for core plus. Mr. Brennan began his career at CIGNA Investments, Inc., as a portfolio analyst for immunized and indexed fixed income accounts.
Mr. Brennan earned a B.S. in economics and computer sciences and an M.A. in economics from Trinity College in Hartford, Connecticut. He also earned the Chartered Financial Analyst (CFA) designation and is a former president and treasurer of the Baltimore CFA Society.
- Portfolio manager2004
since - Years at20
T. Rowe Price - Years investment34
experience
Andy McCormick is the head of the Fixed Income Division. He oversees fixed income investment management. Andy also is the head of U.S. Taxable Bonds. He is president of the High Yield Fund and Multi-Sector Account Portfolios; chairman of the Fixed Income Steering Committee; and a member of the firm's Management, Investment Management Steering, and Product Strategy Committees. He also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.
Andy’s investment experience began in 1983, and he has been with T. Rowe Price since 2008, beginning as a portfolio manager in the Fixed Income Division. After that, he served as head of Securitized Products and as lead portfolio manager for the US GNMA Bond Strategy and co-portfolio manager for the Total Return Bond Strategy before being appointed to his current role in 2019. Prior to T. Rowe Price, Andy spent 13 years on Wall Street trading mortgages and agency securities, 10 years at Fannie Mae managing significant mortgage assets, and two years working with a hedge fund manager and mortgage real estate investment trust firm.
Andy earned a B.S. in finance from Syracuse University.
- Portfolio manager2010
since - Years at12
T. Rowe Price - Years investment37
experience
Robert Larkins is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Larkins is lead portfolio manager of the firm's suite of bond index strategies, overseeing the U.S. Aggregate Bond Index Strategy, the U.S. Enhanced Aggregate Bond Strategy, and numerous custom bond index mandates, including liability-driven investment portfolios tailored to meet specific client needs. He is also lead portfolio manager of the Long Duration Credit Strategy and is a member of the firm's Investments Derivatives Committee. Mr. Larkins is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Mr. Larkins has 16 years of investment experience, all of which have been with T. Rowe Price. Prior to joining the firm in 2003, he worked for Dow Chemical Company for four years as a research engineer.
Mr. Larkins earned a B.S. in chemical engineering from Brigham Young University and an M.B.A. in finance from The Wharton School, University of Pennsylvania. He also has earned the Chartered Financial Analyst designation.
- Portfolio manager2014
since - Years at17
T. Rowe Price - Years investment17
experience
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 manager2016
since - Years at10
T. Rowe Price - Years investment21
experience
Chris Brown is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Brown is the head of the Securitized Products team, portfolio manager of the Total Return Strategy, and a member of the portfolio strategy team for U.S. taxable bond strategies. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Mr. Brown has 19 years of investment experience, 14 of which have been with T. Rowe Price. Before assuming his current role, Mr. Brown was an associate portfolio manager on the U.S. Taxable Bond team and a portfolio investment strategist on the Fixed Income Quantitative team. Prior to joining T. Rowe Price in 2005, he was a fixed income analyst and trader at Riggs Investment Advisors, Inc., in Washington, D.C. Before this, he was an investment analyst for Cambridge Associates LLC in Arlington, Virginia.
Mr. Brown earned a B.A. in economics from Washington & Lee University and an M.B.A. from the University of Maryland, Robert H. Smith School of Business. He also has earned the Chartered Financial Analyst designation.
- Portfolio manager2016
since - Years at15
T. Rowe Price - Years investment20
experience
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 at9
T. Rowe Price - Years investment20
experience
Brian Brennan is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Brennan has lead portfolio management responsibilities for the US Treasury, US Core Plus Bond, and Stable Value Strategies. He also is a member of the portfolio strategy team for T. Rowe Price's core and core plus mandates. Mr. Brennan is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price International Ltd, and T. Rowe Price Trust Company.