New York-listed T Rowe Price has launched the Ultra Short-Term Bond fund, aimed at those investors who want higher yields than a money market fund and less volatility than short-term bond funds.

The fund will invest in a portfolio of shorter-term investment-grade corporate and government securities, including mortgage- and asset-backed securities, money market securities and bank obligations.

It is managed by Joseph Lynagh, who manages the firm's taxable and municipal money market portfolios and other cash investments. 

The minimum initial investment requirement for the fund is $2,500, or $1,000 for retirement plans or gifts/transfers to a minor's account.