T. Rowe Price launches U.S. high-yield fund acquired from Henderson

By Marisa Wong

Morgantown, W.Va., May 30 – T. Rowe Price Group, Inc. announced the launch of the T. Rowe Price U.S. High Yield Fund (Symbol: TUHYX), which focuses on total return through investments in U.S. high-yield bonds.

The fund results from the firm’s acquisition of the Henderson High Yield Opportunities Fund (Ticker: HYOIX) from Henderson Global Investors (North America) Inc., as announced in late February.

The new fund is managed by Kevin Loome, according to a news release.

Prior to joining T. Rowe Price, Loome was head of U.S. credit and manager of the high-yield team at Henderson Global Investors, where he managed the Henderson High Yield Opportunities Fund. Loome rejoins T. Rowe Price, where he worked as a fixed-income investment professional from 1996 to 2007.

The fund’s portfolio management team, which includes Loome, four analysts and a trader, will remain in a separate office in Philadelphia. Trading and research will remain fully separate and distinct from T. Rowe Price’s existing platforms.

The fund is a concentrated “high conviction” portfolio of primarily high-yield securities from across the capital structure spectrum, positioned to navigate all phases of the credit cycle, according to the release.

Loome expects the fund’s portfolio to consist of about 75 to 200 issuers.

The fund’s primary benchmark will be the BofA Merrill Lynch High Yield Constrained index.

The fund’s total expense ratio for the investor class shares will be capped at 0.79%.

T. Rowe Price is based in Baltimore.

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