T. Rowe Price GNMAPRGMX

T. Rowe Price GNMA is a solid option.

Manager Andy McCormick took over in April 2008, and he navigated capably through a challenging market environment in late 2008-early 2009. Of course, the effectively credit-risk-free GNMA securities that form the majority of this fund's portfolio rallied during last year's flight to quality, but the fact that a June 2006 change to the fund's mandate allowed for management to invest up to 20% of assets in nongovernment mortgage- and asset-backed securities means the possibility for a significant misstep existed.  Read more 

Manager Andrew McCormick searches for inefficiencies in the GNMA market, looking for situations in which investors have made faulty assumptions about the likely prepayment of certain bonds. He also tries to add value when rates are falling by selectively investing in GNMA CMOs and project loans, will venture into Treasuries when opportunities present themselves, and recently held positions in CMBS and hybrid ARM securities.  Read more 

This fund's longtime manager, Connie Bavely, retired in March 2008 after running the fund since October 2000. She has been replaced by an experienced hire, Andrew McCormick. McCormick worked as a Wall Street mortgage trader for 13 years before joining Fannie Mae in 1995, where he spent a decade and managed a portfolio of mortgage assets.  Read more 

This fund is under new management and saw a mandate change that broadens its investing universe.  Read more