T. Rowe Price U.S. Bond Enhanced Index Fund (PBDIX)
Ticker Symbol:
PBDIX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  October
Morningstar Category  Intermediate-Term Bond
Inception Date 11/30/2000
Tax ID 52-2273334
Investment Objective
The U.S. Bond Enhanced Index Fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. investment-grade bond market.
Strategy
The U.S. Bond Enhanced Index Fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. investment-grade bond market by investing in a range of bonds representative of the Barclays Capital U.S. Aggregate Index. In addition, the fund's attempt to achieve incremental returns above the index could result in a greater chance that the fund's returns will deviate from the returns of its benchmark when compared with a fund that strictly follows a passive indexing strategy.
Risk/Reward Potential**
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The U.S. Bond Enhanced Index Fund gives income investors a cost-effective way to seek to approximate the performance of the broad investment-grade bond market. It has an intermediate risk/reward profile and should offer a higher yield than less volatile short-term bond funds and a lower yield than longer-term funds. The fund can serve as a bond fund core holding or as a diversification vehicle for an equity portfolio.

Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. There is also a chance that one of the fund's holdings will have its credit rating downgraded or will default.
**This chart displays relative risk of each U.S. mutual fund listed using standard deviation of returns. Those values are provided in the bars at the top of the chart.

Methodology: We evaluate the standard deviation and its resulting placement within a specific risk/return category on an annual basis. A fund is generally placed in a risk/return category based on the 10-year standard deviation of its performance. If a fund is less than 10 years old, the actual fund performance history is supplemented with the primary prospectus benchmark history to obtain a full 10-year history, or longest time period available up to 10 years. For an Asset Allocation fund with less than 10 years of performance history, sub-strategy returns are used. When a sub-strategy is less than 10 years old, the actual sub-strategy performance history is supplemented with benchmark history to obtain a full 10-year history, or longest time period available up to 10 years.

Risk return categories overlap; a fund with a standard deviation in the overlap between two categories, denoted by a plus (+), is placed so that its risk categorization is better aligned with anticipated return characteristics an investor may experience going forward at the discretion of T Rowe Price.

When a fund has a cash-like benchmark, denoted by a double plus (++), its standard deviation is estimated using only available fund returns. If the fund is less than 10 years old, benchmark returns are not used to obtain a full 10-year history because they would artificially suppress the volatility estimate.

All investments are subject to market risk, including the possible loss of principal. Standard deviation of returns, a measure of price volatility, is one measure of risk. Please consult the funds' prospectuses for a more complete discussion of the funds' risks.
See Glossary for additional details on all data elements.