T Rowe Price Group has launched the T Rowe Price US High Yield Fund, which will focus on total return through investments in US high yield bonds.
The fund is the result of the firm’s acquisition of the Henderson High Yield Opportunities Fund (Class I ticker: HYOIX) from Henderson Global Investors (North America), which was originally announced in late February 2017.
The fund is managed by Kevin Loome. Prior to joining T Rowe Price, Loome was head of US credit and manager of the high yield team at Henderson Global Investors, where he managed the Henderson High Yield Opportunities Fund. Loome rejoins T Rowe Price, where he worked as a fixed income investment professional from 1996-2007.
The fund’s portfolio management team, which includes Loome, four analysts and a trader, will remain in a separate office in Philadelphia, Pennsylvania. Trading and research will remain fully separate and distinct from T Rowe Price’s existing platforms.
The fund is a concentrated “high conviction” portfolio of primarily high yield securities from across the capital structure spectrum, positioned to navigate all phases of the credit cycle.
Loome expects the fund’s portfolio to consist of approximately 75-200 issuers. Its primary benchmark will be the BofA Merrill Lynch High Yield Constrained Index, while the fund’s total expense ratio for the Investor Class shares will be capped at 0.79 per cent. It will be offered with Investor, Advisor, and I Class shares.
Ted Wiese, head of fixed income for T Rowe Price, says: “The launch of our US High Yield Fund effectively completes the Henderson fund acquisition. It provides an additional high yield investment opportunity to our clients, while further strengthening our global fixed income franchise. We welcome Kevin Loome and his team, who have managed the portfolio since its inception and posted an exceptional performance track record in the process.”
Loome says: “As a concentrated high yield portfolio with the flexibility to search for opportunities across the entire capital structure, we believe the US High Yield Fund is a great fit with the active high yield management experience T Rowe Price is known for.”