T Rowe Price has launched two mutual funds – one that invests in international stocks and one that invests in non-investment grade municipal bonds.
The International Concentrated Equity Fund is available in an Investor Class share (PRCNX) and an Advisor Class share (PRNCX).
Each fund share class will build on the investment process of its similarly named institutional strategy, the Institutional Concentrated International Equity Fund (RPICX).
The new Intermediate Tax-Free High Yield Fund, which is available in an Investor Class share (PRIHX) and Advisor Class share (PRAHX), will complement the similarly named, longer-maturity Tax-Free High Yield Fund (PRFHX).
Federico Santilli, who has managed the T Rowe Price Institutional Concentrated International Equity Fund since its inception in mid-2010, will manage the International Concentrated Equity Fund.
The fund will be relatively concentrated, consisting of the investment team's highest-conviction ideas for generating capital appreciation.
The fund's focus is on companies that have solid positions in attractive industries, have an ability to generate visible and durable free cash flow, and can create shareholder value over time.
Stock selection will dictate portfolio construction. Consequently, the fund may have significant overweights and underweights compared with the benchmark with respect to region, country, and sector allocations.
The net expense ratio is capped at 0.90 per cent for the Investor Class shares and 1.00 per cent for the Advisor Class shares until 28 February 2017.
The minimum initial investment in the International Concentrated Equity Fund is USD2,500, or USD1,000 for retirement accounts or gifts or transfers to minors (UGMA/UTMA) accounts. The Institutional Concentrated International Equity Fund generally requires a USD1 million minimum initial investment.
James Murphy, who has managed the T Rowe Price Tax-Free High Yield Fund since 2002, will also manage the Intermediate Tax-Free High Yield Fund.
The Intermediate Tax-Free High Yield Fund's principal investment strategy is to generate a high level of income that is exempt from federal taxes.
Both funds are expected to have similar credit quality profiles – approximately 65 per cent investment-grade (with a focus on A and BBB rated securities) and 35 per cent below investment-grade securities.
In contrast to the Tax-Free High Yield Fund, the new fund will feature an intermediate-duration profile. The new fund's target is a weighted average maturity not to exceed 10 years.
The fund's net expense ratio is capped at 0.75 per cent for the Investor Class shares and 0.85 per cent for Advisor Class shares until 30 June, 2017.
The minimum initial investment in the Intermediate Tax-Free High Yield Fund is USD2,500, or USD1,000 for retirement accounts or gifts or transfers to minors (UGMA/UTMA) accounts.
Santilli says: "Our investment approach is style-agnostic, which allows us to invest wherever we find the most attractive opportunities in the market. Our role, through rigorous fundamental research and a disciplined process, is to identify superior investment opportunities and exploit pricing anomalies."