RS Investments Launches Fixed-Income Funds

The RS Strategic Income Fund (RSIAX) provides investors with diversification across a broad set of fixed-income sectors in a single fund: investment grade, high-yield, and global bonds, while the RS High Yield Municipal Bond Fund (RSHMX) is designed for investors seeking high current income, with a secondary objective of capital appreciation, an announcement said. The RS Floating Rate Fund (RSFLX) invests in bank loans, corporate bonds, and other securities with the goal of providing a moderately high level of current income and protection against rising interest rates.

“The new funds address the growing appetite among advisers and their clients for sophisticated fixed income choices that provide greater diversification and potential solutions to long-term challenges,” said Terry Otton, chief executive officer of RS, in the announcement. “Whether it is protection from the declining dollar, hedging against inflation, or reducing taxes, these funds help to provide investors with greater flexibility and choices for achieving their income goals.”

The new RS funds are sub-advised by Guardian Investor Services, which manages over $20 billion in institutional fixed income portfolios and serves as sub-adviser for the five fixed-income funds already offered by RS. Each fund will offer multiple share classes and expenses for the A share class have been capped at 35 basis points through April 30, 2011.

“Our approach to fixed-income investing is based on risk-adjusted value, relying on intensive fundamental research and a disciplined investment process,” said Leslie Barbi, head of fixed-income investments for RS. “The RS bond funds are managed with a focus on assessing returns relative to risk, which includes considering downside protection, not just income—the way we believe bond funds should be managed.”