This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

T. Rowe Price Closes High Yield Bond Fund To New Investors

BALTIMORE, May 1, 2012 /PRNewswire/ --  T. Rowe Price Group (NASDAQ: TROW) announced that it has closed its high yield bond funds, effective yesterday, including the Investor Class shares (PRHYX) and the Advisor Class shares (PAHIX) of the High Yield Fund and the separate Institutional High Yield Fund (TRHYX). The mutual funds were closed to protect the interests of existing investors. However, the funds will continue to accept additional investments from existing shareholders and direct rollovers from qualified retirement plans into new T. Rowe Price IRAs.

T. Rowe Price manages $21 billion in dedicated high yield portfolios, including $9.2 billion in the High Yield Fund and $2.5 billion in the Institutional High Yield Fund as of March 31, 2012. The high yield funds invest primarily in a diversified portfolio of high yield corporate ("junk") bonds and floating rate bank loans.

The funds were last closed in February 2004 and reopened in February 2007. T. Rowe Price offers other funds that provide investors with exposure to high yield investments, including the Tax-Free High Yield Fund (PRFHX), Floating Rate Fund (PRFRX), Spectrum Income Fund (RPSIX), and Strategic Income Fund (PRSNX).

"The high yield market has seen an incredible rally over the past three years, which has helped the High Yield Fund generate a 21% net annualized return over that time frame," said Mark Vaselkiv, portfolio manager of the High Yield Fund and head of the taxable high yield bond team. "Capital appreciation has significantly increased both high yield funds' assets and enhanced investor demand. The low interest rate environment has also prompted income-seeking investors to consider this sector, and some of the strong flows into our high yield funds reflect their increased appetite for yield.

"If flows were to continue at this pace, though, it could eventually strain our ability to invest efficiently and result in an over-diversified fund with a less effective investment strategy. We are committed to investing in a manner consistent with the funds' objectives," said Mr. Vaselkiv.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs