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Risk management
Inflation and rising rates remain at the forefront of fixed income investors’ minds. Since the start of 2022, fixed income investors have found themselves facing a combination of multi-decade high inflation and a hawkish shift from major central banks that has translated into rate hikes.
With the prospect of more volatility and higher interest rates, what should investors do to shield portfolios from interest rate risk and the rising cost of money?
The hunt for yield has been a major headache for investors over the past decade. The lengthy period of ultra-low interest rate has meant the so-called ‘risk-free’ component of most portfolios, developed market bonds like the US treasuries, produced results that barely matched inflation, if at all.
Managers need to be skilled in identifying pockets of value, without over-reaching for yield.
Find out how investors could manage their thirst for yield without playing into overly risky assets.
The combination of persistently high inflation, slowing growth and geopolitical unrest may be creating an almost unsolvable riddle for central banks. Are they now forced to choose between averting recession and meeting their inflation targets? Investors need managers that can identify pockets of value even in times of policy uncertainties.
The historic role of fixed income as diversifying asset class to mitigate equity risk has been challenged. A decade characterized by ultra-low rates, negative yield and muted inflation has led many to question traditional portfolio construction theory.
As we move into a new era, what alternative asset class weightings and portfolio construct need to be considered to meet client objectives?
US$171 bn
Assets under management
234
Fixed Income professionals
50+ years
Fixed Income experience
We offer a wide range of portfolios to meet clients’ needs, whether they want higher income, more diversification, or a safe pair of hands for their “sleep at night” allocation.
Fund in Focus: Dynamic Global Bond
Whenever the tide turns, make sure you have an anchorYour portfolio, anchored
Whenever the tide turns, make sure you have an anchor
Your portfolio, anchored.
INVESTMENT PHILOSOPHY
At T. Rowe Price Fixed Income we believe that empowering our teams with the freedom to think, the freedom to explore, delivers better outcomes for our clients. Hear how directly from our Portfolio Managers and Analysts.
What is “Freedom in Fixed Income”? Portfolio Manager, Mike Della Vedova, explains why our unconstrained approach helps deliver long-term results for clients.
Portfolio Manager, David Stanley, discusses the benefits of “Freedom in Fixed Income” and the attractive investment opportunities it can bring.
Hear from Razan Nasser, Emerging Markets Sovereign Analyst and Willem Visser, Associate PM Fixed Income ESG on how our unconstrained philosophy empowers our investment teams with the freedom and flexibility to seek out best opportunities across the full range of fixed income securities.
A consistent approach: tried and tested for over 50 years
Our research analysts draw on the expertise of their colleagues across Fixed Income, Equity and ESG to add perspectives, test assumptions and round out their investment thesis.
1The combined multi-asset portfolios managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates. This figure includes assets that are held outside of T. Rowe Price, but where T. Rowe Price influences trade decisions.
Risks - The following risks are materially relevant to the fund (refer to prospectus for further details):
General Fund Risks
Capital risk - the value of your investment will vary and is not guaranteed. It will be affected by changes in the exchange rate between the base currency of the fund and the currency in which you subscribed, if different. Counterparty risk - an entity with which the portfolio transacts may not meet its obligations to the fund. ESG and Sustainability risk - may result in a material negative impact on the value of investment and performance of the fund. Geographic concentration risk - to the extent that a fund invests a large portion of its assets in a particular geographic area, its performance will be more strongly affected by events within that area. Hedging risk - a fund's attempts to reduce or eliminate certain risks through hedging may not work as intended. Investment fund risk - investing in funds involves certain risks an investor would not face if investing in markets directly. Management risk - the investment manager or its designees may at times find their obligations to a fund to be in conflict with their obligations to other investment funds they manage (although in such cases, all funds will be dealt with equitably). Operational risk - operational failures could lead to disruptions of fund operations or financial losses.
Important Information
The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the articles of incorporation and the annual and semi annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors. They can also be found along with a summary of investor rights in English at www.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.
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