T. Rowe Price launches Emerging Markets Corporate Bond funds

By Toni Weeks

San Diego, May 17 - T. Rowe Price International Funds, Inc. gave details in an N-1A filing with the Securities and Exchange Commission about its new Emerging Markets Corporate Bond Fund and its Emerging Markets Corporate Bond Fund - Advisor Class, which will launch Monday.

The fund trades under the symbol "TRECX," and the advisor class fund trades under the symbol "PACEX."

Both will seek high current income and capital appreciation as a secondary objective by investing at least 80% of its net assets, including any borrowings for investment purposes, in bonds issued by companies that are located in, listed in or conduct the predominant part of their business activities in the emerging market countries of Latin America, Asia, Europe, Africa and the Middle East. Most of the fund's investments are rated below investment grade.

Securities held by the funds will primarily be dollar denominated, but the fund may also target securities denominated in emerging market currencies and other non-U.S. currencies. There are no maturity restrictions on the overall portfolio or on individual securities, but the funds will aim for an intermediate weighted average maturity of between three and 10 years.

Michael J. Conelius, chairman of the fund's investment advisory committee, will serve as portfolio manager. Other members of the investment advisory committee are Carolyn Hoi Che Chu, Bridget A. Ebner, Ian D. Kelson, Christopher C. Loop and Christopher J. Rothery.

Shareholder fees for TRECX will consist of a 2% redemption fee that applies to shares redeemed within 90 days of purchase and an annual $20 maximum account fee for accounts with balances of less than $10,000. PACEX has the same redemption fee but not the maximum account fee.

Management fees will be 0.8% for both funds. Investment adviser T. Rowe Price Associates, Inc. has agreed to waive fees and reimburse expenses as necessary to limit the total annual fund operating expenses to 1.15% for TRECX and 1.25% for PACEX. The agreement expires April 30, 2015.

T. Rowe Price is based in Baltimore.

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