T Rowe Price US Treasury Long-Term Fund (PRULX)

T Rowe Price US Treasury Long-Term Fund (PRULX) is a top taxable bond mutual fund. T  Rowe Price US Treasury Long-Term Fund has high yield for income.

T Rowe Price US Treasury Long-Term Fund

The investment objective of this mutual fund is to achieve the highest level of income consistent with maximum credit protection. This T. Rowe Price US Treasury Long-Term fund utilizes its assets to purchase U.S. Treasury securities, which are backed by the full faith and credit of the federal government. It also invests in other securities backed by the full faith and credit of the U.S. government. Its weighted average maturity is expected to vary between 15 and 20 years, but may range from 10 to 30 years.

Fund Profile

• Fund Inception Date: 09/28/1989
• Ticker Symbol: PRULX
• CUSIP: 77957T206
• Beta (3yr): 3.95
• Rank in category (YTD): 87%
• Category: Long Government
• Yield: 2.58%
• Capital Gains: 0%
• Expense Ratio: 0.55%
• Net Assets: $ 451.2 million
• Number of Years Up: 19 years
• Number of Years Down: 4 years
• Annual Turnover Rate: 57.10%

Updated on August 18, 2013

Taxable Bond Fund

This T. Rowe Price fund has total net assets of $451.2 million. Its expense fee level is categorized as below average. The expense ratio is only 0.55% per year. The 30-day SEC Yield is 2.28%. It also has dividend yield of 2.58%. The most recent distribution was in April 2013 with $0.03. The fund manager is Brian J. Brennan.

Morningstar analysts have ranked this taxable bond fund with 3-stars rating. Since the fund’s inception in 1989, it has recorded 19 years of positive return and 4 years of negative return. The best 1-year total return was in 2011 with 28.36%. The benchmarks of this fund are Lipper General U.S. Treasury Funds Average and Barclays U.S. Long Treasury Bond Index. Based on the load adjusted returns, the fund has returned 11.36% over the past 3-year and 6.74% over the past decade.

The mutual fund has no 12b1 fee and no front-end sales load fee. With a minimum initial investment of $2,500, this fund can be purchased from around 88 brokerages. They are Ameriprise Brokerage, Raymond James, MSSB Retail Fund, Vanguard, Scottrade Load, Fidelity Retails FundsNetwork, E Trade Financial, Trade Station Securities, etc. The minimum initial investment for retirement (IRA) account is $1,000.

The assets of this PRULX fund are mostly invested in Domestic Bond (99.7%). The top sector diversification is U.S. Treasury Bonds & Notes (89.7%). As of March 2013, this U.S. Treasury Long-Term Fund had a total of 85 holdings.

According to the fund prospectus, the principal risks are Active management risk, Interest rate risk, Credit risk, Liquidity risk, Repurchase agreement risk, Derivatives risk, etc.

Disclosure: No Position