Download

Audience for the document: Share Class: Language of the document:

Download

Share Class: Language of the document:

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest

Please enter valid search characters

SICAV

Diversified Income Bond Fund

Formerly Global Multi-Sector Bond Fund

The fund invests mainly in a diversified portfolio of high yield corporate bonds from issuers around the world, including emerging markets.

ISIN LU1244139405 Bloomberg TRPGMSQ:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

4.77%
$149.4m

1YR Return
(View Total Returns)

Manager Tenure

3.91%
2yrs

Information Ratio
(3 Years)

Tracking Error
(3 Years)

-0.06
6.85%

Inception Date 15-Dec-2016

Performance figures calculated in USD

Other Literature

30-Nov-2020 - Ken Orchard, Portfolio Manager ,
Opinions have notably changed over the past month with many market participants convinced that we will return to normality at some point in mid-2021. However, there is still much uncertainty about how quickly vaccines will be rolled out and how people will behave once social mobility restrictions are removed. Uncertainty around additional fiscal stimulus in the U.S., vaccination rollouts, and the ensuing pace of the economic recovery serve as key risks.
Kenneth A.  Orchard
Kenneth A. Orchard, Portfolio Manager

Kenneth Orchard is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment team. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

 

Strategy

Investment Objective

To maximise the value of its shares through both growth in the value of, and income from, its investments. The fund invests mainly in a diversified portfolio of bonds of all types from issuers around the world, including emerging markets.

Investment Approach

  • To seek diversified sources of income and return by utilizing the full global opportunity set and managing risk.
    • Active tactical allocation across an expanded global opportunity set of 14 fixed income sectors, 80+ countries, and 40+ currencies.
    • Best ideas security selection from proprietary global research platform.
    • Actively diversify risk across both quantitative risk factors and qualitative investment themes.
    • Avoid concentration in any one sector or interest rate cycle.
    • Focus on risk-adjusted returns over a medium to long-term horizon.
  • Target tracking error range: 100-500 basis points

Portfolio Construction

  • Up to 50% of assets may be unhedged to exploit currency valuation opportunities
  • 40% of bonds may be invested outside of the U.S.
  • High Yield: Max 50%, excluding securitized assets
  • Emerging Markets: Max 25% Hard Currency, Max 25% Local Currency
  • Portfolio Average Credit Quality: Target Investment Grade
  • Duration range: 0 to 8 years
  • Number of securities: 200-500

Performance (Class Q)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 3.91% 4.77% N/A 5.67% 7.58%
Indicative Benchmark % 5.58% 5.15% N/A 4.81% 7.29%
Excess Return % -1.67% -0.38% N/A 0.86% 0.29%

Inception Date 15-Dec-2016

Manager Inception Date 31-Oct-2018

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Data as of 31-Dec-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 3.91% 4.77% N/A 5.67%
Indicative Benchmark % 5.58% 5.15% N/A 4.81%
Excess Return % -1.67% -0.38% N/A 0.86%

Inception Date 15-Dec-2016

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Data as of 31-Dec-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 15-Jan-2021 Quarter to DateData as of 15-Jan-2021 Year to DateData as of 15-Jan-2021 1 MonthData as of 31-Dec-2020 3 MonthsData as of 31-Dec-2020
Fund % -0.08% -0.08% -0.08% 1.13% 4.17%
Indicative Benchmark % -0.43% -0.43% -0.43% 0.31% 0.89%
Excess Return % 0.35% 0.35% 0.35% 0.82% 3.28%

Inception Date 15-Dec-2016

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Performance figures calculated in USD

Past performance is not a reliable indicator of future performance.  Source for fund performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures. 

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

30-Nov-2020 - Ken Orchard, Portfolio Manager ,
Global fixed income markets generated positive total returns in U.S. dollar-hedged terms in November. Spread sectors outperformed sovereign bonds. The DXY, a U.S. dollar currency index returned approximately -2.31%. The portfolio posted positive returns in November, driven mostly by our exposure to global credit sectors. Our positions in global corporate credit, investment-grade, high yield, and emerging market (EM) sectors, all significantly added to results. Appetite for yield and risk sentiment remained high in November, which translated into strong demand and narrowing spreads for corporate sectors. Higher oil prices and a weakening U.S. dollar were also tailwinds for EM. In contrast, the main drags on relative performance were our duration exposure in low beta EM countries, such as Chile, Korea, and Malaysia, where less central bank support in the form of quantitative easing and pension withdrawals weakened local support for sovereign bonds.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 27.86% Was (30-Nov-2020) 19.65%
Other View Top 10 Issuers

Monthly data as of31-Dec-2020

Holdings

Total
Holdings
387
Largest Holding Bonos de la Tesoreria de la Republica en pesos 3.42% Was (30-Sep-2020) 3.22%
Top 10 Holdings 16.09%
Other View Full Holdings Quarterly data as of  31-Dec-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB US Government Agency Securities
By % 18.43% -10.17%
Fund 18.73% 0.00%
Indicative Benchmark 0.30% 10.17%

Average Credit Quality

BBB+

Monthly Data as of  31-Dec-2020
Indicative Benchmark:  Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Sources for Credit Quality Diversification: Moody's Investors Service and Standard & Poor's (S&P) split ratings (i.e. BB/B and B/CCC) are assigned when the Moody's and S&P ratings differ. Short-Term holdings are not rated.

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity 5-7 Years 10+ Years
By % 6.58% -9.68%
Fund 19.94% 16.46%
Indicative Benchmark 13.36% 26.14%

Weighted Average Maturity

7.43 Years

Monthly Data as of  31-Dec-2020
Indicative Benchmark:  Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 3-5 Years Over 10 Years
By % 7.86% -14.72%
Fund 29.19% 8.85%
Indicative Benchmark 21.34% 23.57%

Weighted Average Duration

5.17 Years

Monthly Data as of  31-Dec-2020
Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Sectors

Total
Sectors
7
Largest Sector Global Sovereign 37.91% Was (30-Nov-2020) 35.21%
Other View complete Sector Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

Global High Yield
By13.92%
Fund 13.92%
Indicative Benchmark 0.00%

Largest Underweight

Global Sovereign
By-30.07%
Fund 37.91%
Indicative Benchmark 67.98%

Monthly Data as of 31-Dec-2020

30-Nov-2020 - Ken Orchard, Portfolio Manager ,
With spreads tighter after another month of increased risk appetite fuelled by positive news about coronavirus vaccines, we moderately reduced risk in November—mostly through rotating exposure away from high yield and investment-grade credit.

Regions

Total
Regions
6
Largest Region North America 52.71% Was (30-Sep-2020) 48.02%
Other View complete Region Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

North America
By13.86%
Fund 52.71%
Indicative Benchmark 38.85%

Largest Underweight

Japan
By-12.82%
Fund 1.63%
Indicative Benchmark 14.45%

Monthly Data as of 31-Dec-2020

Countries

Total
Countries
56
Largest Country United States 51.75% Was (30-Nov-2020) 43.07%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

United States
By16.32%
Fund 51.75%
Indicative Benchmark 35.44%

Largest Underweight

Japan
By-12.82%
Fund 1.63%
Indicative Benchmark 14.45%

Monthly Data as of 31-Dec-2020

30-Nov-2020 - Ken Orchard, Portfolio Manager ,
We added significantly to U.S. duration to help hedge against potential setbacks from rising coronavirus cases in the U.S. and Europe as they enter the cooler winter months. We also increased our exposure to duration in Malaysia through long-end bonds. In contrast, we trimmed duration exposure in Australia as rates have little room to fall in the short-term after the country’s central bank cut rates in early November.

Currency

Total
Currencies
24
Largest Currency 96.80% Was (30-Nov-2020) 96.08%
Other View completeCurrency Diversification

Monthly Data as of  31-Dec-2020

Indicative Benchmark :

Largest Overweight

U.S. dollar
By 55.97%
Fund 96.80%
Indicative Benchmark 40.83%

Largest Underweight

euro
By -27.11%
Fund -2.83%
Indicative Benchmark 24.28%

Monthly Data as of  31-Dec-2020

30-Nov-2020 - Ken Orchard, Portfolio Manager ,
As part of our move to reduce overall risk, we trimmed our exposure to the Russian rouble and Indonesian rupiah while adding exposure to the U.S dollar. We also added exposure to the British pound out of the euro, which could benefit from a deal between the UK and the European Union regarding Brexit.

Team (As of 15-Jan-2021)

Kenneth A.  Orchard

Kenneth Orchard is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment team. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Kenneth’s investment experience began in 2003, and he has been with T. Rowe Price since 2010, beginning in the Fixed Income Division, with responsibility for cochairing the Fixed Income Sector Strategy Advisory Group. He is the portfolio manager for the Global Multi-Sector Bond and Diversified Income Bond Strategies and co-portfolio manager for the International Bond Strategies. Prior to this, Kenneth was employed by Moody’s Investors Service in the area of sovereign rating methodology. Before that, Kenneth was employed by Emerging Market Economics as a consulting senior economist. Kenneth also was employed by HSBC Asset Management as an assistant portfolio manager. 

Kenneth earned a B.A. in international relations from the University of British Columbia and an M.Sc. in public financial policy from the London School of Economics. Kenneth also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
    since
    2018
  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    17
Terry  A.  Moore, CFA

Terry Moore is a portfolio specialist in the Fixed Income Division. He is a member of the Global Multi-Sector, Dynamic Global Bond, Dynamic Credit Strategy, International Bond, and Customized Fixed Income Solutions teams, working closely with clients, consultants, and prospects. Terry is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Terry’s investment experience began in 1994, and he has been with T. Rowe Price since 2009, beginning in the Fixed Income Division. Prior to this, Terry was employed by Smith Breeden Associates as a portfolio manager and principal, where he led the Financial Institutions Group and managed fixed income portfolios with a focus on residential mortgage-backed securities. He also was employed by Goldman Sachs & Co., where he traded asset-backed securities.

Terry earned a B.A. in economics and political science from the University of North Carolina, Chapel Hill and an M.B.A. from Duke University, The Fuqua School of Business, where he was a Fuqua Scholar. He also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
    11
  • Years investment
    experience
    25

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (USD) Minimum Subsequent Investment (USD) Minimum Redemption Amount (USD) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $1,000 $100 $100 5.00% 100 basis points 1.17%
Class I $2,500,000 $100,000 $0 0.00% 50 basis points 0.60%
Class Q $1,000 $100 $100 0.00% 50 basis points 0.67%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.