T. Rowe Price Associates Inc. yesterday announced that William T. Reynolds, who has managed the investment company's municipal bond division since 1991, has been

elevated to director of the entire fixed-income division.

Mr. Reynolds, 46, who joined T. Rowe Price in 1981, took over the municipal bond division in 1991 after his predecessor, Peter Gordon, left the firm. At the beginning of this year, he took on the added position of assistant director of the fixed-income division.

Price President and Chief Executive Officer George Collins had been director of the fixed-income division until Mr. Reynolds' appointment.

Of Price's $54 billion in managed assets, fixed-income amounts account for about $21 billion, including $15 billion in more than 30 mutual funds and $6 billion in private assets.

Mr. Reynolds, who said he will retain some supervision over municipal investments, said the division's prospects are strong despite recent turmoil in the bond market.

"We have historically performed well in periods of rising rates, and it appears that we're continuing to do so this year," he said.