T. Rowe Price has launched the Strategic Income Fund, a new offering that will invest in 12 asset classes to achieve high income and some asset growth, with 80% or more of its assets invested in income-producing securities.
Available through no-load and adviser shares, the fund will invest up to 65% of its assets in non-investment-grade securities and up to 50% in non-U.S. foreign debt securities denominated in dollars.
Specifically, the funds investments will include U.S. and international corporate bonds, high-yield bonds, asset- and mortgage-backed securities, emerging market debt, convertible bonds, preferred stock and government debt.
Steve Huber will be the lead portfolio manager, along with Mike Conelius, Andrew McCormick, Mike McGonigle and David Stanley. Prior to joining T. Rowe in 2006, Huber was the chief investment officer for the State Retirement and Pension System of Maryland.
With a flexible investment program, the Strategic Income Funds exposure to a variety of debt instruments helps to moderate the risks of investing in high-yield bonds and foreign securities, Huber said. While the fund invests without borders and focuses on securities with higher risk/reward potential, it tempers that risk by maintaining a significant exposure to investment-grade securities that aim to preserve capital.
Still, while the fund will take on risks, Huber said he will employ strong credit analysis.