A Multisector Bond Fund Set Apart From the Competition

Kenneth Oshodi: A team-focused style and affordable fees are what really set T. Rowe Price Spectrum Income apart from the competition.

Charles Shriver has managed this fund of funds on a day-to-day basis since he became lead manager and joined T. Rowe's 14-member asset-allocation committee in late 2011, and he is joined by a sizable team of 20 asset allocation research analysts.

The asset allocation committee includes seven sector leaders from the fixed-income, equity, and multi-asset divisions who provide a six- to 18-month asset class and sector outlook, which guides the fund's construction. The resultant portfolio tends to mostly look like the multisector bond category norm, though its sizable equities allocation stands out.

This above-average exposure has helped to explain much of the fund's relative performance, but its also sizable exposure to higher-quality bonds rated A and above versus peers has helped it to land near the middle of the pack during volatile stretches. Overall, its 3.9% annualized return during Shriver's May 2011 through June 2018 tenure lands just ahead of its typical distinct peer.

Still, its experienced team, strong underlying funds, and cheap fees help to support its Morningstar Analyst Rating of Bronze.