T. Rowe Price expands fixed income fund range
T. Rowe Price has launched a Global Government Bond High Quality Fund for wholesale and institutional investors.
This is the seventh Australian unit trust from the global asset manager and seeks to achieve capital appreciation and interest income by investing primarily in bonds issued by high quality governments, government-related entities and government agencies located around the world and in global currencies.
It is a benchmark aware and a highly flexible government bond strategy designed to seek consistent outperformance by exploiting inefficiencies within the global fixed income market and managing portfolios within a disciplined risk management framework.
It will be managed by Arif Husain, the firm’s chief investment officer and head of global fixed income.
Darren Hall, T. Rowe Price’s head of distribution and country head for Australia and New Zealand, said the fund demonstrates how the firm is seeking to offer products for a new market environment.
“Over many years, much of the return from bond markets has been made by steadily falling yields and tightening credit spreads. However, this benign investment environment was upended in 2022 as the US Fed, Reserve Bank of Australia and other central banks around the world embarked on a rapid rate hiking cycle to curb high inflation.
“This new market environment of structurally higher bond yields, higher volatility and greater dispersion between countries creates new opportunities for asset owners to think about their global fixed income program.”
He added Australia is one of the firm’s key growth targets globally for its ability to meet the demands of financial intermediary and institutional clients in the country.
This means it is actively seeking to invest in on-the-ground products, resources and marketing efforts to solidify its presence in Australia.
AUTHOR
Laura Dew
Recommended for you
Family office Lederer Group has made an off-market takeover bid for ASX-listed Elanor Commercial Property Fund, with chair Paul Lederer taking exception at the firm’s lack of accountability, oversight and transparency.
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
Global investment manager First Sentier Investors has launched an umbrella brand to provide greater clarity around its shift to a multi-affiliate asset manager encompassing six investment teams.
Janus Henderson has seen intermediary outflows in the second quarter of US$1.2 billion, although its deal with insurer Guardian means overall net flows are US$46.7 billion.
