New global fixed income offerings complement firm's existing Canadian equity pools
BALTIMORE, May 29, 2018 /CNW/ --
T. Rowe Price (NASDAQ-GS: TROW) has introduced three new pooled investment vehicles within its suite of Canadian Pooled investments, which are now available to Canadian institutional investors. The T. Rowe Price Global High Income Bond Pool, Global Multi-Sector Bond Pool, and the Global Unconstrained Bond Pool leverage the firm's staff of more than 180 fixed income professionals involved in managing $290 billion (CAD) in every major global fixed income sector as of March 31, 2018. These pools complement the firm's existing suite of Canadian Pools in the International Concentrated Equity, U.S. Large-Cap Core Growth Equity, Global Growth Equity, and the Global Focused Growth Equity pools. The addition of these pools strengthens the firm's fixed income offering to institutional investors in Canada.
Bruce Winch, Head of Sales, T. Rowe Price (Canada), Inc.:
"The strong demand for global fixed income investment solutions allows us to expand our product offering for Canadian institutional investors. We are continuously looking for ways to better meet the needs of these investors by providing products that align with their investment goals, and the launch of the new pools is consistent with that objective."
GLOBAL HIGH INCOME BOND POOL DETAILS
- The objective of the pool is to seek high income primarily through investments in below-investment grade bonds and other income producing instruments.
- The pooled vehicle invests mainly in a diversified portfolio of high yield corporate bonds from issuers across the world, including emerging markets. Specifically, the pool invests at least 70% of total assets in debt securities that are rated below BBB- by Standard & Poor's or have an equivalent rating (or, if unrated, are of equivalent quality) and are issued by companies.
- The pool's benchmark is The BofA Merrill Lynch Global High Yield Index Hedged to USD Hedged to CAD.
GLOBAL MULTI-SECTOR BOND POOL DETAILS
- This is a globally diversified bond pool seeking high income and return, while adding value through active investing and managing risks. The pool invests mainly in a portfolio of bonds of all types from issuers around the world, including high yield and emerging markets.
- The objective of the pool is to maximize value through both growth in the value of, and income from, its investments.
- The pooled vehicle uses an asset allocation strategy to build a broadly diversified portfolio of domestic and foreign debt instruments, including government and corporate bonds; mortgage-backed, commercial mortgage-backed, and asset-backed securities; and preferred stocks. The pooled vehicle may invest up to 65% of assets in noninvestment-grade securities and up to 50% in foreign currency denominated securities, including those from emerging markets countries.
- The pool's benchmark is the Bloomberg Barclays Multiverse CAD Hedged Index.
GLOBAL UNCONSTRAINED BOND POOL DETAILS
- The objective of the pool is to generate income while offering some protection against rising interest rates and a low correlation with equity markets. The pool further benefits from very active duration management with the purpose of capital preservation at times of interest rate increases.
- The pool will normally invest at least 80% of its assets in bonds, with at least 40% of its net assets in foreign securities, including securities of emerging markets issuers.
- The pool's benchmark is FTSE TMX Canada 91 Day T-Bill Index.
ABOUT T. ROWE PRICE
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. is a global investment management organization with $1,306.6 billion (CAD) in assets under management as of March 31, 2018. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. For more information, visit troweprice.com.
The Pool is an open-end unit trust under the laws of the Province of Ontario pursuant to a trust agreement between CIBC Mellon Trust Company (the "Trustee") and T. Rowe Price (Canada), Inc. (the "Manager"). The Pool is offered on the basis of the offering memorandum and is available only to Accredited Investors as defined under National Instrument 45-106.
This document does not constitute investment advice - investors should ensure they understand the legal, regulatory and tax consequences of an investment in the Fund.
This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.
It is not intended for distribution to retail investors in any jurisdiction.
Issued in Canada by T. Rowe Price (Canada), Inc. T. Rowe Price (Canada), Inc.'s investment management services are only available to Accredited Investors as defined under National Instrument 45-106. T. Rowe Price (Canada), Inc. enters into written delegation agreements with affiliates to provide investment management services.
T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. All rights reserved.
SOURCE T. Rowe Price (Canada), Inc.