T. Rowe Price Floating Rate Fund, Inc.

Frequently Asked Questions About PRFRX

What does PRFRX invest in?

This fund ordinarily deploys a minimum of 80% of its total assets (including any capital obtained through borrowing for investment) into debt instruments with variable interest rates. These floating rate loans represent funds extended by financial institutions and other lenders to corporate borrowers or various entities. The vast majority, if not all, of the loans held by the fund are either classified as below investment grade (typically rated below BBB or an equivalent, often colloquially known as “junk” due to higher risk) or lack an official credit rating from recognized agencies.

What is the expense ratio of PRFRX?

T. Rowe Price Floating Rate Fund, Inc. (PRFRX) charges an expense ratio of 0.76%. This is the annual fee deducted from fund assets to cover management and operations.

How big is PRFRX?

T. Rowe Price Floating Rate Fund, Inc. (PRFRX) manages $4.02B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is PRFRX actively managed or an index fund?

PRFRX is actively managed: the manager selects holdings rather than tracking an index. Active funds typically charge higher expense ratios than index funds (PRFRX's is 0.76%) in exchange for the discretion to over- or under-weight positions.

When was PRFRX launched?

T. Rowe Price Floating Rate Fund, Inc. (PRFRX) launched in August 2011 and is managed by T. Rowe Price.

How has PRFRX performed?

PRFRX's total return (price change plus reinvested distributions) is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.