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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

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AUT

Dynamic Global Bond Fund

A portfolio of global fixed-income securities with a focus on downside risk and diversification from equity markets.

Fund Profile

APIR ETL0398AU

3YR Return Annualised (Net)
(View Total Returns)

Total Assets
(AUD)

3.49%
$755.0m

1YR Return (Net)
(View Total Returns)

Manager Tenure

3.63%
7yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.33
3.12%

Inception Date 18-Feb-2014

Performance figures calculated in AUD

30-Sep-2021 - Arif Husain, Head of International Fixed Income,
We expect developed market bond yields to rise, driven by elevated inflation and central banks moving toward removing accommodative policies. That said, we are mindful of further bouts of volatility given concerns around China slowing, inflation, and liquidity being withdrawn. Against this backdrop, we believe the environment calls for a tactical approach.
Arif Husain, CFA
Arif Husain, CFA, Portfolio Manager

Arif Husain is the head of the International Fixed Income Division. He is a co-portfolio manager for the International Bond and Institutional International Bond Strategies and the lead portfolio manager for the Global Aggregate Bond Strategy. Arif also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

 

Strategy

Investment Objective

Seeks to generate positive returns from global fixed-income with a focus on downside risk and providing diversification from equity markets.

Investment Approach

  • To generate a consistent performance over the Benchmark by exploiting inefficiencies in the global fixed income and currency markets.
  • To achieve a total return, including capital gains and income, in excess of 2% per annum above the Benchmark over the full economic cycle.
  • To control the amount of risk taken and to limit downside risk.

Portfolio Construction

  • Fund’s duration between 0 and 6 years.
  • Maximum 75% in Australian government bonds.
  • Maximum 50% in non-government bonds.
  • Maximum 20% in securities rated below investment grade.
  • Maximum 50% in cash and cash equivalent securities.
  • Minimum 80% of the currency risk hedged back to the Australian dollar.

Performance - Net of Fees 

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 3.63% 3.49% 2.24% 3.66% 3.66%
Benchmark % 0.04% 0.79% 1.20% 1.61% 1.61%
Excess Return % 3.59% 2.70% 1.04% 2.05% 2.05%

Inception Date 18-Feb-2014

Manager Inception Date 18-Feb-2014

Benchmark: Bloomberg AusBond Bank Bill Index

Data as of 30-Sep-2021

Performance figures calculated in AUD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 3.63% 3.49% 2.24% 3.66%
Benchmark % 0.04% 0.79% 1.20% 1.61%
Excess Return % 3.59% 2.70% 1.04% 2.05%

Inception Date 18-Feb-2014

Benchmark: Bloomberg AusBond Bank Bill Index

Data as of 30-Sep-2021

Performance figures calculated in AUD

Recent Performance

  Month to DateData as of 15-Oct-2021 Quarter to DateData as of 15-Oct-2021 Year to DateData as of 15-Oct-2021 1 MonthData as of 30-Sep-2021 3 MonthsData as of 30-Sep-2021
Fund % -0.07% -0.07% 1.29% 0.59% -0.10%
Benchmark % 0.00% 0.00% 0.02% 0.00% 0.01%
Excess Return % -0.07% -0.07% 1.27% 0.59% -0.11%

Inception Date 18-Feb-2014

Benchmark: Bloomberg AusBond Bank Bill Index

Benchmark: Bloomberg AusBond Bank Bill Index

Performance figures calculated in AUD

Past performance is not a reliable indicator of future performance.

Source for performance: T Rowe Price. Net of fees performance is based on end of month redemption prices after the deduction of fees and expenses and the reinvestment of all distributions. Figures include changes in principal value. Investment return and principal value will vary, and an account may be worth more or less at termination than at inception. For further details, please refer to the fund's product disclosure statement and reference guide which are available from Equity Trustees or TRPAU.

Daily performance (MTD, QTD, and YTD) data is based on the latest available NAV minus one business day.

Returns for time periods greater than one year are annualised.

Fund performance is shown in I Class.

30-Jun-2020 - Arif Husain, Head of International Fixed Income,
Core government bonds were broadly stable during June, while risk assets, such as credit and equity, continued to perform well as the outlook for growth improved. In the U.S., Treasury yields ended the month little changed amid stronger-than-expected economic data releases and a dovish outlook from the U.S. Federal Open Market Committee. In the eurozone, periphery government bonds outperformed the core, supported by the European Central Bank (ECB) expanding monetary easing measures. At the portfolio level, our positive bias toward eurozone periphery countries had a positive impact, particularly our long duration postures in Italy and Cyprus. Our allocation to U.S. inflation-linked bonds also added gains, while our long duration position in the U.S. dragged on performance. In foreign exchange markets, our long positions in the Argentine peso and Brazilian real contributed, while a short position in the South Korean won and long position in the Japanese yen held back returns.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 53.77% Was (31-Aug-2021) 49.43%
Other View Top 10 Issuers

Monthly data as of 30-Sep-2021

Holdings

Total
Holdings
114
Largest Holding Bundesobligation 7.95% Was (30-Jun-2021) 10.79%
Top 10 Holdings 44.25%
Other View Full Holdings Quarterly data as of  30-Sep-2021

Countries

Total
Countries
41
Largest Country Germany 17.47% Was (31-Aug-2021) 8.21%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2021

30-Jun-2020 - Arif Husain, Head of International Fixed Income,
Within the eurozone, we increased our overall positive bias toward the periphery during June. We believe that the combination of ongoing strong support from the ECB and positive surprises coming from domestic and EU-wide fiscal initiatives will be supportive for the region. Accordingly, we increased our long duration stance in Italy and maintained positive biases in Cyprus and Spain.

Currency

Total
Currencies
32
Largest Currency 99.95% Was (31-Aug-2021) 100.03%
Other View completeCurrency Diversification

Monthly Data as of  30-Sep-2021

30-Jun-2020 - Arif Husain, Head of International Fixed Income,
In the currency sphere, our expectations for the European economy to recover faster than peers led us to initiate a new long position in the euro during June.

Team (As of 01-Oct-2021)

Arif Husain, CFA

Arif Husain is the head of the International Fixed Income Division. He is a co-portfolio manager for the International Bond and Institutional International Bond Strategies and the lead portfolio manager for the Global Aggregate Bond Strategy. Arif also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd. 

Arif’s investment experience began in 1995, and he has been with T. Rowe Price since 2013. Prior to this, Arif was employed by AllianceBernstein in the area of European Fixed Income and Euro Portfolio Management. He also was a member of the global fixed income and absolute return portfolio management teams. Arif also was employed by Greenwich NatWest as an assistant director of European Derivatives Trading and by the Bank of America National Trust and Savings Association.  

Arif earned a B.Sc. (honors) in banking and international finance from City University London, Cass Business School. He also has earned the Chartered Financial Analyst® designation.

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

  • Fund manager
    since
    2014
  • Years at
    T. Rowe Price
    8
  • Years investment
    experience
    25

Fees

APIR Minimum Initial Investment (AUD) Minimum Subsequent Investment (AUD) Buy/Sell Spread Management Fees
ETL0398AU $500,000 $100,000 Buy +0.20%/ Sell -0.20% 0.40% p.a.