In our Best of Funds Family series, we are focusing today on funds from T. Rowe Price, one of the more prominent investment firms, which manages more than $366 billion in assets. We are spotlighting five funds here: two fixed-income funds (Corporate & National Municipal), two sectoral equity funds (Global and Non US) and one Growth/Income Equity Fund.
T. Rowe Price Corporate Income A (PRPIX) seeks to provide high income and capital growth. It was incepted in October 1995.
A large proportion of the fund’s assets, at least 80%, are invested in corporate securities and at least 65% in corporate debts issued by U.S. and foreign companies. In order to achieve its objectives, the fund may invest in a variety of other securities.
The fund has an expense ratio of 0.74% against a category average of 0.89%. As of August 2009, it has a portfolio turnover of 36% against a category average of 220%. The funds top holdings include American Tower Corp, AT&T INC and Bank of America. For the 12 months ended September 30, 2009 the fund recorded lower returns compared to its benchmark, the Barclays Capital U.S. Credit Baa Index.
David A. Tiberii has been lead manager of the fund since October 2003. Tiberii is a vice president of T. Rowe Price Group, Inc and has over 12 years of investment experience.
T. Rowe Price Tax Free High Yield (PRFHX) was incepted in March 1985. The fund seeks a high level of income exempt from federal income tax by investing primarily in long-term, low- to upper-medium-quality municipal securities.
The fund primarily invests in below investment-grade municipal or ‘junk’ bonds. It may also purchase bonds in default as long as they do not exceed 10% of assets. Its weighted average maturity is expected to exceed 15 years.
The fund has an expense ratio of 0.71% against a category average of 1.12%. As of August 2009, it has a portfolio turnover of 28% against a category average of 45%. The funds top holdings include Buckeye Tobacco Settlement Financing Authority, Indianapolis Airport Authority and Mississippi Business Finance. For the 12-month period ended September 30, 2009, the fund outperformed its benchmark, the Lipper High Yield Municipal Debt Funds Average.
James M. Murphy has been lead manager of the fund since January 2002. Before joining the firm in 2000, Murphy was a portfolio manager for Prudential Investments.
T. Rowe Price Global Stock (PRGSX) seeks long-term growth of capital through investments in securities of established companies throughout the world, including the U.S. It was incepted in December 1995.
The fund invests its assets in a wide range of industries in both developed and emerging markets. It normally invests in at least five countries, one of which is the U.S.
The fund has an expense ratio of 0.87% against a category average of 1.50%. As of October 2009, it has a portfolio turnover of 90% against a category average of 91%. The funds top holdings include America Movil SA, JP Morgan Chase and Rolls-Royce. For the 12-month period ended September 30, 2009, the fund returned lower returns than the MSCI AC World index.
Robert N. Gensler has been lead manager of the fund since April 2005. Gensler was appointed chairman of the investment advisory committee in 2005 and is a vice president with T. Rowe Price.
T. Rowe Price Latin America (PRLAX) seeks long-term growth of capital. It was incepted in December 1993.
A majority of the funds investments, at least 80% of its assets are held in Latin American companies. More than 25% of its assets may be invested in the telecom sector, since such utilities are crucial to a country’s economic development. It may also invest in preferred stock since it offers greater liquidity than common stock.
The fund has an expense ratio of 1.22% against a category average of 1.80%. As of October 2009, it has a portfolio turnover of 21% against a category average of 115%. The funds top holdings include Petroleo Brasileriro SA, Itau Unibanco Banco Multiplo and America Movil SA. For the 12-month period ended September 30, 2009, the fund outperformed the MSCI Emerging Market Latin America Index and the Lipper Latin American Funds Average.
Jose Costa Buck has been lead manager of the fund since December 2008.
T. Rowe Price Capital Appreciation (PRWCX) seeks maximum long-term capital appreciation. It was incepted in June 1986.
The fund focuses on established U.S. companies which the fund managers think have significant potential for capital growth. At least half of its assets are invested in common stocks. It may also invest in convertible securities, corporate and government debt, foreign securities, and futures and options.
The fund has an expense ratio of 0.74% against a category average of 1.01%. As of September 2009, it has a portfolio turnover of 94% against a category average of 83%. The funds top holdings include Covidien Plc, Covidien Public Ltd and Exxon Mobil. For the 12-month period ended September 30, 2009, the fund outperformed the S&P 500 Index.
Tobias W. Welo has been lead manager of the fund since January 2008. Welo has been with Fidelity since 2005.
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