Past performance is not a reliable indicator of future performance.
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 % | 6.60% | 5.37% | 4.52% | 3.97% |
| Composite Net % | 6.34% | 5.11% | 4.26% | 3.71% |
| Benchmark % | 6.98% | 5.24% | 4.18% | 3.64% |
| Excess Return (Gross) % | -0.38% | 0.13% | 0.34% | 0.33% |
Recent Performance
| 3 MonthsData as of 30-Sep-2020 | Year to DateData as of 30-Sep-2020 | |
|---|---|---|
| Composite Gross % | 1.14% | 6.39% |
| Composite Net % | 1.07% | 6.19% |
| Benchmark % | 0.62% | 6.79% |
| Excess Return (Gross) % | 0.52% | -0.40% |
Past performance is not a reliable indicator of future performance.
Returns for time periods greater than one year are annualised.
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
192
Quality Rating View quality analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Quality Rating | AAA | US Treasury |
| By % | 7.36% | -28.48% |
| Portfolio | 12.15% | 8.92% |
| Benchmark | 4.79% | 37.40% |
Average Credit Quality
AA-Sectors
Total
Sectors
9
Largest Overweight
Mortgage
Largest Underweight
U.S. Treasury
Team (As of 15-Jan-2021)
Brian Brennan is a portfolio manager in the Fixed Income Division. He has lead portfolio management responsibilities for the US Treasury, US Investment Grade Core Bond, US Core Plus Bond, and Stable Value Strategies. He also is a member of the portfolio strategy team for T. Rowe Price's investment-grade core and core plus mandates. Brian is the president of the U.S. Treasury Funds, Inc.; an executive vice president of the Institutional Income Funds, Inc.; a vice president of the Multi-Sector Account Portfolios, Inc.; and a vice president and Investment Advisory Committee member of the GNMA, Inflation Protected Bond, New Income, Limited Duration Inflation Focused Bond, Total Return, and QM U.S. Bond Index Funds. Brian also 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.
Brian’s investment experience began in 1986, and he has been with T. Rowe Price since 2000, beginning in the Fixed Income Division. Prior to this, Brian was employed by Howard Hughes Medical Institute as a fixed income manager responsible for Treasury, emerging, nondollar, and derivative strategies for core plus. He also was employed by CIGNA Investments, Inc., as a portfolio analyst for immunized and indexed fixed income accounts.
Brian earned a B.S. in economics and computer sciences and an M.A. in economics from Trinity College. He also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Portfolio manager2004
since - Years at20
T. Rowe Price - Years investment35
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
Rob Larkins is the head of quantitative portfolio management in the Fixed Income Division. Rob is the lead portfolio manager of the firm’s suite of bond index strategies, overseeing the US Aggregate Bond Index Strategy, the US Enhanced Aggregate Bond Strategy, and numerous custom bond index mandates, including liability-driven investment portfolios tailored to meet specific client needs. He also is the lead portfolio manager of the Long Duration Credit Strategy. Rob is the president and chairman of the Investment Advisory Committee for the QM U.S. Bond Index Fund, an executive vice president for the Institutional Income Funds, and a vice president and an Investment Advisory Committee member for the Balanced, Global Allocation, New Income, and Total Return Funds. Rob is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.
Rob has been with T. Rowe Price since 2003, beginning as an associate portfolio manager in the Stable Value department. In 2007, he became a portfolio manager and took over management of the quantitative strategies. Prior to this, Rob was employed by Dow Chemical Company as a research engineer.
Rob earned a B.S. in chemical engineering from Brigham Young University and an M.B.A. in finance from the University of Pennsylvania, The Wharton School. He also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Portfolio manager2014
since - Years at17
T. Rowe Price - Years investment17
experience
Steve Bartolini is a portfolio manager for the US Core Bond, US Inflation Protected, and US Short-Term Inflation Focused Bond Strategies in the Fixed Income Division. He is the president and chairman of the Investment Advisory Committee for the New Income Fund and the president and cochairman of the Inflation Protected Bond and the Limited Duration Inflation Focused Bond Funds. Steve co-heads the Global Interest Rate and Currency Strategy team and is a member of the portfolio strategy team for the U.S. taxable bond strategies. He also is a member of the Asset Allocation Committee. Steve is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.
Steve’s investment experience began in 1999, and he has been with T. Rowe Price since 2010, beginning as a mortgage trader in the Global Trading department. After that, he became an associate portfolio manager on the US Taxable Bond team before assuming his current role. Prior to this, Steve was employed by Fannie Mae in the capital markets area, where he served as a director of portfolio management, a senior trader, and an analyst.
Steve 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.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Portfolio manager2016
since - Years at10
T. Rowe Price - Years investment21
experience
Chris Brown is the head of the Securitized Products team and a portfolio manager of the Total Return Bond Strategy in the Fixed Income Division. He is the president and chairman of the Investment Advisory Committee for the Total Return Fund and a vice president and Investment Advisory Committee member of the Multi-Sector Account Portfolios and the GNMA, Institutional Income, New Income, Global Multi-Sector Bond, and QM U.S. Bond Index Funds. Chris also is a member of the Mortgage-Backed Securities Multi-Sector Account Portfolio and Dynamic Credit Fund Investment Advisory Committees, a member of the U.S. Taxable Strategy team, and a cochair of the Sector Strategy Advisory Group. Chris is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Chris’s investment experience began in 2000, and he has been with T. Rowe Price since 2005, beginning as an investment analyst in the Fixed Income Division. After that, he worked as a portfolio investment strategist supporting the Securitized team in the Fixed Income Quantitative department, then as an associate portfolio manager on the U.S. Taxable Bond team before assuming his current role. Prior to joining the firm, Chris was employed by Riggs Investment Advisors, Inc., as a fixed income analyst and trader. He also was employed by Cambridge Associates LLC as an investment analyst.
Chris 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.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- 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. He has lead portfolio management responsibilities for the US Treasury, US Investment Grade Core Bond, US Core Plus Bond, and Stable Value Strategies. He also is a member of the portfolio strategy team for T. Rowe Price's investment-grade core and core plus mandates. Brian is the president of the U.S. Treasury Funds, Inc.; an executive vice president of the Institutional Income Funds, Inc.; a vice president of the Multi-Sector Account Portfolios, Inc.; and a vice president and Investment Advisory Committee member of the GNMA, Inflation Protected Bond, New Income, Limited Duration Inflation Focused Bond, Total Return, and QM U.S. Bond Index Funds. Brian also 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.