BALTIMORE, Feb. 23 /PRNewswire-FirstCall/ -- T. Rowe Price today announced
that Hugh McGuirk will head its municipal bond department, which oversees
about $10 billion in assets, including 20 mutual funds and more than 25
separate client accounts.
Mr. McGuirk currently manages about $2 billion in municipal bond assets
invested in three tax-free bond funds, several separate account portfolios,
and the Tax-Efficient Balanced Fund.
The firm's municipal bond department has had significant growth in recent
years. Assets under management have grown from about $7.5 billion in 2000 to
about $10 billion in 2004. In addition, 16 of the 19 tax-free mutual funds
have outperformed their respective Lipper averages over the three-year period
ended December 31, 2004, and 17 of 18 tax-free funds have outperformed their
Lipper peer group averages over the five-year period ended December 31,
2004.(1)
Eleven out of 14 T. Rowe Price tax-free bond funds received an Overall
Morningstar Rating(TM) of 4 or 5 stars as of December 31, 2004.(2) The Overall
Morningstar Rating(TM) is derived from a weighted average of the performance
figures associated with a fund's 3-, 5-, and 10-year (if applicable)
Morningstar Rating metrics. Results will vary for other periods. Past
performance cannot guarantee future results.
Mr. McGuirk, who joined T. Rowe Price 11 years ago as a trader and since
that time has taken on increasing levels of responsibility for portfolio
management, succeeds Mary Miller, who was named Director of the Fixed Income
Division in 2004 but continued managing the municipal investment department.
"Hugh brings a lot of knowledge and experience about the public finance
market," Ms. Miller said. "He also has a long tenure with T. Rowe Price and
understands the culture and the organization, which is very important in this
role."
"I think municipal bonds offer good investment opportunity for taxable
investors," Mr. McGuirk said. "Long term municipal bond yields are trading at
about 95% of long-term Treasury yields, so these levels would imply that even
those in lower tax brackets would benefit from the tax free municipal income."
Investors should note that if interest rates rise significantly from
current levels, the share prices of bond funds will decline and may even turn
negative in the short term. Some income generated by tax-free funds may be
subject to state and local taxes and the federal alternative minimum tax.
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global
investment management firm with $235.2 billion in assets under management as
of December 31, 2004. The firm provides a broad array of mutual funds, sub-
advisory services, and separate account management for financial
intermediaries, retirement plans, and individual and institutional investors.
T. Rowe Price's disciplined, risk-aware investment approach focuses on
diversification, style consistency, and fundamental research.
For more information about any T. Rowe Price mutual fund, call 1-800-638-
5660 to request a prospectus, which includes investment objectives, risks,
fees, expenses, and other information that you should read and consider
carefully before investing.
T. Rowe Price Investment Services, Inc., distributor.
1. Based on cumulative total returns and includes all T. Rowe Price tax-
free bond and money funds. Sixteen of 19 and 17 of 18 T. Rowe Price tax-free
bond and money funds outperformed their Lipper averages for the 1- and 10-year
periods ended 12/31/04, respectively. (Source: Lipper Inc.)
2. For funds with at least a 3-year history, a Morningstar Rating(TM) is
based on a risk-adjusted return measure (including the effects of sales
charges, loads, and redemption fees) with emphasis on downward variations and
consistent performance. The top 10% of funds in each category receive 5 stars,
the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars, and the
bottom 10% 1 star. Each share class is counted as a fraction of one fund
within this scale and rated separately. Morningstar Rating(TM) is for the
retail share class only; other classes may have different performance
characteristics. Morningstar does not assign ratings to money funds. (C) 2005
Morningstar, Inc. All Rights Reserved. The information contained herein: (1)
is proprietary to Morningstar and/or its content providers; (2) may not be
copied or distributed; and (3) is not warranted to be accurate, complete, or
timely. Neither Morningstar not its content providers are responsible for any
damages or losses arising from any use of this information. Past performance
cannot guarantee future results.
SOURCE T. Rowe Price Group, Inc.
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Related links:
http://www.troweprice.com
CONTACT:
Rajiv Vyas, +1-410-345-6559, or Brian
Lewbart, +1-410-345-2242, or Steve Norwitz, +1-410-345-2124, all
of T. Rowe Price Group
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