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)

3.07%
1.60%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

4.12%
0.35

Inception Date 31-Mar-1990

Performance figures calculated in USD

Other Literature

Michael  F.  Reinartz
Michael F. Reinartz, Portfolio Manager

Michael Reinartz is a portfolio manager in the Fixed Income Division at T. Rowe Price. He is a member of the U.S. Taxable Low Duration team, portfolio manager of the U.S. Short-Term Bond Strategy, and co-portfolio manager of the Limited-Term Bond Portfolio. Mr. Reinartz is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

 

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 7.97% Was (31-Mar-2020) 9.04%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2020

Holdings

Total
Holdings
954
Largest Holding U.S. Treasury Notes 2.85% Was (31-Mar-2020) 0.00%
Top 10 Holdings 12.24%
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 % 25.80% -53.88%
Portfolio 35.53% 11.34%
Benchmark 9.73% 65.21%

Average Credit Quality

A+

Monthly Data as of 30-Jun-2020
Benchmark:  Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond 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 3-5 Years 1-3 Years
By % 21.21% -45.45%
Portfolio 21.21% 54.55%
Benchmark 0.00% 100.00%

Weighted Average Maturity

2.26 Years

Monthly Data as of 30-Jun-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 % 31.61% -48.73%
Portfolio 33.39% 49.49%
Benchmark 1.78% 98.22%

Weighted Average Duration

1.87 Years

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

Sectors

Total
Sectors
7
Largest Sector Corporate Bonds & Notes 52.81% Was (31-Mar-2020) 53.01%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

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

Largest Overweight

Corporate Bonds & Notes
By28.78%
Portfolio 52.81%
Benchmark 24.03%

Largest Underweight

U.S. Treasury Bonds and Notes
By-53.88%
Portfolio 11.34%
Benchmark 65.21%

Monthly Data as of 30-Jun-2020

Team (As of 05-Aug-2020)

Michael  F.  Reinartz

Michael Reinartz is a portfolio manager in the Fixed Income Division at T. Rowe Price. He is a member of the U.S. Taxable Low Duration team, portfolio manager of the U.S. Short-Term Bond Strategy, and co-portfolio manager of the Limited-Term Bond Portfolio. Mr. Reinartz is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Reinartz has 19 years of investment experience, all of which have been at T. Rowe Price. He joined the firm in 1996. Prior to his current position, Mr. Reinartz was a member of the Short-Term Bond, Strategic Income, and Quantitative Research teams and provided portfolio modeling and analysis support to portfolio managers. He also worked as a senior mutual fund accountant and investment liaison in the Fixed Income Division.

Mr. Reinartz earned a B.S. in accounting from Towson University and has also earned the Chartered Financial Analyst designation.

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

Whitney Reid is a portfolio specialist in the U.S. Fixed Income Division of T. Rowe Price. He acts as a proxy for fixed income portfolio managers with clients, consultants, and prospects. Mr. Reid supports our Stable Value, US Short-Term Bond, and US Investment Grade Corporate Bond Strategies. He is a vice president of T. Rowe Price Associates, Inc.

Mr. Reid has 24 years of investment experience. Prior to joining the firm in 2011, he was director of research at Sturdivant and Company.  Preceding this he was a fixed income credit analyst and fixed income product manager at Delaware Investments. Mr. Reid'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 treasurer for the City of Philadelphia. He was also a member of the United States Army, rising to the rank of Captain.

Mr. Reid earned an M.S. in business administration from Boston University and a B.S. in electrical engineering from Lehigh University. He has also earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    25

Download

Latest Date Range
Audience for the document: Share Class: Language of the document:
Download Cancel

Download

Share Class: Language of the document:
Download Cancel
Sign in to manage subscriptions for products, insights and email updates.
Continue with sign in?
To complete sign in and be redirected to your registered country, please select continue. Select cancel to remain on the current site.
Continue Cancel
Once registered, you'll be able to start subscribing.

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®). 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

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