T. Rowe Price Ultra Short-Term Bond Fund |
TRBUX
Fund Status:
Open to new Retail investors
/
Open to subsequent Retail investments
Fund Objective
Quick Stats
| Fiscal Year End | May |
| Morningstar Category | Ultrashort Bond |
| Inception Date | 12/03/2012 |
| Tax ID | 46-1176624 |
Investment Objective
The fund's investment objective is to provide a high level of income consistent with minimal fluctuations in principal value and liquidity.
Strategy
Invests in a diversified portfolio of shorter-term investment-grade corporate and government securities, including mortgage-backed securities, money market securities, and bank obligations. Normally, the fund will invest at least 80% of its net assets (including any borrowings for investment purposes) in bonds, and all of the securities purchased by the fund will be rated investment-grade (AAA, AA, A, BBB, or an equivalent rating) at the time of purchase by at least one of the major credit rating agencies or, if unrated, deemed to be investment grade quality by T. Rowe Price. While the fund may purchase an individual security with a maturity of up to 5 years, under normal conditions the fund's dollar-weighted average effective maturity will be 1.5 years or less.
Investors seeking slightly higher income than what money funds provide who can accept modest share price fluctuation. Appropriate for both regular and tax-deferred accounts, such as IRAs and Keoghs.
Availability
All States
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This fund is subject to the risk that the investment adviser’s judgment about the attractiveness, value, or potential appreciation of the fund’s investments may prove to be incorrect. If the securities selected and strategies employed by this fund fail to produce the intended results, the fund could underperform other funds with similar objectives and investment strategies.
Additionally, this fund is subject to the risk that a rise in interest rates will cause the price of a fixed rate debt security to fall. Prices fall because the bonds and notes in the fund’s portfolio become less attractive to other investors when securities with higher yields become available. Generally, securities with longer maturities and funds with longer weighted average maturities carry greater interest rate risk. During periods of extremely low or negative interest rates, this fund may not be able to maintain a positive yield or yields on par with historical levels.
Additionally, this fund is subject to the risk that a rise in interest rates will cause the price of a fixed rate debt security to fall. Prices fall because the bonds and notes in the fund’s portfolio become less attractive to other investors when securities with higher yields become available. Generally, securities with longer maturities and funds with longer weighted average maturities carry greater interest rate risk. During periods of extremely low or negative interest rates, this fund may not be able to maintain a positive yield or yields on par with historical levels.
*Funds are placed in general risk/return categories based on their past performance or, for newer funds, the performance of the types of securities in which they invest. There is no assurance past trends will continue.
See Glossary for additional details on all data elements.
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