Download

Audience for the document: Share Class: Language of the document:

Download

Share Class: Language of the document:

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

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

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest

Please enter valid search characters

Past performance is not a reliable indicator of future performance.

Strategy

US Short-Term Bond

The US Short-Term Bond Composite seeks current income with minimal price volatility primarily through investment in fixed income securities included in the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index. The strategy may also include exposure to asset-backed, mortgage-backed, and other securities not present in the reference index.

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

Tracking Error
(5 Years)

3.26%
1.61%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

4.33%
0.45

Inception Date 31-Mar-1990

Performance figures calculated in USD

Other Literature

Michael  F.  Reinartz, CFA
Michael F. Reinartz, CFA, Portfolio Manager

Mike Reinartz is a portfolio manager for the US Short-Term Bond strategies in the Fixed Income Division. He is an executive vice president of the Fixed Income Series, Inc., an executive vice president and the chairman of the Investment Advisory Committee of the Short-Term Bond Fund, and a vice president of the Inflation Protected Bond and Limited Duration Inflation Focused Bond Funds. He also is the chairman of the Investment Advisory Committee for the Limited-Term Bond Portfolio and a member of the Investment Advisory Committees for the Ultra Short-Term Bond and Short Duration Income Funds. Mike is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

 

Strategy

Investment Approach

  • The strategy seeks to provide a high level of income, consistent with belief that yields plays a greater role than price appreciation in generating excess returns.
  • Focus primarily on short- and intermediate-term investment-grade U.S. fixed income securities, with the ability to integrate non-index sectors and securities, such as foreign bonds, mortgage-backed, commercial mortgage-backed and asset-backed securities.
  • Seeks to add value primarily through sector rotation, individual security selection, and term structure positioning.
  • Integrate proprietary credit and capital market research to identify market inefficiencies.

Portfolio Construction

  • Average credit quality of the portfolio is typically AA.
  • Non-dollar foreign bond exposure is limited to 10% (hedged and unhedged).
  • Duration is typically managed within +/- 20% of the benchmark.
  • Target tracking error range: 40 to 80 basis points.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 7.32% Was (30-Jun-2020) 7.97%
Other View Top 10 Issuers

Monthly data as of30-Sep-2020

Holdings

Total
Holdings
977
Largest Holding U.S. Treasury Notes 2.76% Was (30-Jun-2020) 2.85%
Top 10 Holdings 11.62%
Other View Full Holdings Quarterly data as of  30-Sep-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BBB US Treasury
By % 25.96% -53.70%
Portfolio 35.20% 11.78%
Benchmark 9.24% 65.48%

Average Credit Quality

A+

Monthly Data as of  30-Sep-2020
Benchmark:  Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index

Sources for Credit Quality: 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. T. Rowe Price uses the rating of the underlying investment vehicle for credit default swaps.

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 3-5 Years 1-3 Years
By % 21.82% -44.82%
Portfolio 21.82% 55.18%
Benchmark 0.00% 100.00%

Weighted Average Maturity

2.29 Years

Monthly Data as of  30-Sep-2020
Benchmark:  Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Under 1 Year 1-3 Years
By % 28.00% -46.87%
Portfolio 29.63% 51.50%
Benchmark 1.64% 98.36%

Weighted Average Duration

1.90 Years

Monthly Data as of  30-Sep-2020
Benchmark: Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index

Sectors

Total
Sectors
7
Largest Sector Corporate Bonds & Notes 51.35% Was (30-Jun-2020) 52.81%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2020

Benchmark: Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index

Largest Overweight

Corporate Bonds & Notes
By27.70%
Portfolio 51.35%
Benchmark 23.65%

Largest Underweight

U.S. Treasury Bonds and Notes
By-53.70%
Portfolio 11.78%
Benchmark 65.48%

Monthly Data as of 30-Sep-2020

Team (As of 15-Jan-2021)

Michael  F.  Reinartz, CFA

Mike Reinartz is a portfolio manager for the US Short-Term Bond strategies in the Fixed Income Division. He is an executive vice president of the Fixed Income Series, Inc., an executive vice president and the chairman of the Investment Advisory Committee of the Short-Term Bond Fund, and a vice president of the Inflation Protected Bond and Limited Duration Inflation Focused Bond Funds. He also is the chairman of the Investment Advisory Committee for the Limited-Term Bond Portfolio and a member of the Investment Advisory Committees for the Ultra Short-Term Bond and Short Duration Income Funds. Mike is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

Mike’s investment experience began in 2000, and he has been with T. Rowe Price since 1996, beginning as a senior mutual fund accountant in the Fund Accounting department. After that, he was an investment liaison in the Fixed Income Division; a member of the Short-Term Bond, Global Multi-Sector, and Quantitative Research teams providing portfolio modeling and analysis support to portfolio managers; and then an associate portfolio manager before assuming his current role on the U.S. Taxable Low Duration team.

Mike earned a B.S. in accounting from Towson University. He also has earned the Chartered Financial Analyst® designation.

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

  • Portfolio manager
    since
    2015
  • Years at
    T. Rowe Price
    24
  • Years investment
    experience
    24
Whitney Reid

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.

Whitney’s investment experience began in 1995, and he has been with T. Rowe Price since 2011, beginning in the Fixed Income Division. Prior to this, Whitney was employed by Sturdivant and Company as a director of research. Before that, he was employed by Delaware Investments as a fixed income credit analyst and a fixed income product manager. Whitney's background includes time spent on the plan sponsor side, working first as a senior investment officer for the City of Philadelphia Municipal Employees Retirement System and then as a treasurer for the City of Philadelphia. He also was a member of the United States Army, rising to the rank of captain.

Whitney earned a B.S. in electrical engineering from Lehigh University and an M.S. in business administration from Boston University. 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
    25