T. Rowe Price T. Rowe Price Trusty Logo

Strategy

US Investment Grade Corporate Bond

The US Investment Grade Corporate Bond Composite seeks current income and capital appreciation primarily through investment grade corporate bonds issued by U.S. domestic corporations.

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

Tracking Error
(5 Years)

3.77%
0.71%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

10.24%
0.34

Inception Date 31-Mar-1987

Performance figures calculated in USD

Other Literature

David Stanley
David Stanley, Portfolio Manager

David Stanley is a portfolio manager in the Fixed Income Division at T. Rowe Price, responsible for European corporate bond selection. Mr. Stanley is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

 

Strategy

Investment Approach

  • Focus primarily on investment-grade, U.S. corporate bonds, with the ability to integrate non-index sectors and securities in a measured fashion.
  • Integrate proprietary credit and capital market research to identify market inefficiencies.
  • Add value primarily through individual security selection, sector rotation, and capital structure positioning.
  • Manage portfolio duration in a prudent fashion, typically within a +/- 10% band around the benchmark.
  • The investment process places a strong emphasis on risk management practices and portfolio diversification to manage the overall risk profile.

Portfolio Construction

  • Duration is managed within +/- 10% of benchmark
  • Sector exposure is +/- 20% of the benchmark
  • Non-index exposure: 0% to 15% high yield
  • Average credit quality of the portfolio is BBB+ to A-
  • Tracking error should range between 75-150 bps

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 19.79% Was (31-Mar-2019) 23.96%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2019

Holdings

Total
Holdings
178
Largest Holding JPMorgan Chase 1.83% Was (31-Mar-2019) 2.29%
Top 10 Holdings 13.85%
Other View Full Holdings Quarterly data as of 30-Jun-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BBB A
By % 11.34% -12.45%
Portfolio 58.49% 26.47%
Benchmark 47.15% 38.93%

Average Credit Quality

BBB

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays U.S. Corporate Investment Grade 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. 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 5-7 Years 10+ Years
By % 17.89% -20.81%
Portfolio 30.48% 12.93%
Benchmark 12.59% 33.73%

Weighted Average Maturity

7.89 Years

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays U.S. Corporate Investment Grade Bond Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 3-5 Years Over 10 Years
By % 14.79% -19.14%
Portfolio 33.17% 12.02%
Benchmark 18.38% 31.15%

Weighted Average Duration

7.91 Years

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays U.S. Corporate Investment Grade Bond Index

Sectors

Total
Sectors
21
Largest Sector Banking 18.84% Was (31-Mar-2019) 18.44%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2019

Benchmark: Bloomberg Barclays U.S. Corporate Investment Grade Bond Index

Largest Overweight

Finance
By4.83%
Portfolio 5.82%
Benchmark 0.99%

Largest Underweight

Banking
By-4.11%
Portfolio 18.84%
Benchmark 22.94%

Monthly Data as of 30-Jun-2019

Team (As of 07-Feb-2019)

David Stanley

David Stanley is a portfolio manager in the Fixed Income Division at T. Rowe Price, responsible for European corporate bond selection. Mr. Stanley is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Stanley has 30 years of investment experience, 14 of which have been at T. Rowe Price. Prior to joining the London team in 2003, he was employed by Bank of America Capital Management, where he was a director and portfolio manager responsible for the analysis of international corporate bonds and cash investments. Prior to working for Bank of America, Mr. Stanley was employed for eight years in Morgan Stanley Asset Management's London office, where he served as a fixed income fund manager responsible for international corporate bonds.

Mr. Stanley earned a B.A. in economics and social studies from the University of Manchester.

  • Portfolio manager
    since
    2003
  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    31
Matthew Lawton

Matt Lawton is an associate portfolio manager in the Fixed Income Division at T. Rowe Price. He is responsible for the management of corporate accounts and credit analysis. Mr. Lawton is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Lawton has 12 years of investment experience, eight of which have been at T. Rowe Price. Before assuming his current role, Mr. Lawton was a corporate credit analyst in the Fixed Income Division. Prior to joining the firm in 2011, he served as an intern with both T. Rowe Price and The Carlyle Group in Washington, D.C. Mr. Lawton also worked as an associate at Barclays Capital in New York.

Mr. Lawton earned a B.S. in finance from Boston College and an M.B.A. from Georgetown University, McDonough School of Business. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    8
  • Years investment
    experience
    12
Steven Boothe

Steve Boothe is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Boothe has lead portfolio management responsibilities for the Global Investment Grade and U.S. Investment Grade Corporate Bond Strategies. He is a member of the Global Multi-Sector and U.S. Taxable Bond teams, with a focus on global and U.S. investment-grade corporate bond portfolios. Mr. Boothe is an executive vice president and cochairman of the Investment Advisory Committee of the Corporate Bond Strategy. He is also a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Boothe has 21 years of investment experience, 19 of which have been at T. Rowe Price. He joined the firm in 1999 and was a credit research analyst, covering the global telecommunications and technology industries, and an investment-grade corporate portfolio manager/analyst prior to assuming his current role in 2014.

Mr. Boothe earned a B.A. in economics/mathematics from Columbia University. He also has earned the Chartered Financial Analyst designation and is a Series 7 and 63 registered representative.

  • Portfolio manager
    since
    2018
  • Years at
    T. Rowe Price
    19
  • Years investment
    experience
    21
Lauren T. Wagandt

Lauren Wagandt is a portfolio manager in the Fixed Income Division at T. Rowe Price. Ms. Wagandt has portfolio management responsibilities for the US Investment Grade Corporate Bond Strategy. She is also executive vice president and cochair of the Investment Advisory Committee of the US Investment Grade Corporate Bond Strategy. Ms. Wagandt is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Ms. Wagandt has 11 years of investment experience, eight of which have been at T. Rowe Price. Before assuming her current role, Ms. Wagandt was a corporate credit analyst in the Fixed Income Division. Prior to joining the firm in 2009, she was a product specialist at hedge fund BlueCrest Capital Management in New York and London, serving in a marketing and client services role. Ms. Wagandt also worked as a high-grade credit research analyst at Credit Suisse in New York.

Ms. Wagandt earned a B.A. in economics from Cornell University. She also has earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    2018
  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    12
Gregor T. Dannacher, CFA

Gregor Dannacher is a global corporate credit portfolio specialist in the Fixed Income Division of T. Rowe Price. He supports the Global High Income, Global High Yield, U.S. High Yield, Global Loan, Credit Opportunities, and U.S. Investment-Grade Strategies, working closely with clients, prospects, and consultants. Mr. Dannacher is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Dannacher has 27 years of investment experience, four of which have been with T. Rowe Price. Prior to joining the firm in 2015, he was a portfolio manager and senior analyst at Guggenheim Global Trading, a division of Guggenheim Partners. Prior to that, Mr. Dannacher was director of investment research and a senior analyst at Kamunting Street Capital Management. He also worked at CIBC World Markets as a senior equity research analyst.

Mr. Dannacher earned a B.S. in accounting from Villanova University and an M.B.A., with honors, in finance and international business from New York University, Leonard N. Stern School of Business. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    4
  • Years investment
    experience
    27
Dismiss
Tap to dismiss

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.

By clicking the Continue button, I acknowledge that I have read and accepted the Privacy Notice

Continue Back

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