AUT

Dynamic Global Bond Fund

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

APIR ETL0398AU

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

Total Assets
(AUD)

2.60%
$731.8m

1YR Return (Net)
(View Total Returns)

Manager Tenure

8.32%
6yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.49
3.07%

Inception Date 18-Feb-2014

Performance figures calculated in AUD

Other Literature

31-Aug-2020 - Arif Husain, Head of International Fixed Income,
Overall, we believe a tactical approach is needed in the current environment. Any positive news on a coronavirus vaccine could give further support to risk sentiment but put government bonds under pressure. At the same time, we have been mindful of risks that could trigger bouts of volatility in the future. This includes the renewal of U.S.-China tensions, the upcoming U.S. presidential election, and the possibility of second waves of coronavirus cases and further shutdowns.
Arif Husain
Arif Husain, Portfolio Manager

Arif Husain is head of International Fixed Income at T. Rowe Price. He is lead portfolio manager for the Dynamic Global Bond Strategies. Mr. Husain is also co-portfolio manager for the firm's International Bond, Global Aggregate Bond and Institutional International Bond Strategies. He 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 % 8.32% 2.60% 3.16% 3.82% 3.82%
Benchmark % 0.66% 1.44% 1.66% 1.87% 1.87%
Excess Return % 7.66% 1.16% 1.50% 1.95% 1.95%

Inception Date 18-Feb-2014

Manager Inception Date 18-Feb-2014

Benchmark: Bloomberg AusBond Bank Bill Index

Data as of  31-Aug-2020

Performance figures calculated in AUD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 4.45% 2.30% 3.21% 3.70%
Benchmark % 0.85% 1.53% 1.73% 1.92%
Excess Return % 3.60% 0.77% 1.48% 1.78%

Inception Date 18-Feb-2014

Benchmark: Bloomberg AusBond Bank Bill Index

Data as of  30-Jun-2020

Performance figures calculated in AUD

Recent Performance

  Month to DateData as of 25-Sep-2020 Quarter to DateData as of 25-Sep-2020 Year to DateData as of 25-Sep-2020 1 MonthData as of 31-Aug-2020 3 MonthsData as of 31-Aug-2020
Fund % -0.80% 0.56% 5.97% -0.03% 1.42%
Benchmark % 0.01% 0.03% 0.35% 0.01% 0.03%
Excess Return % -0.81% 0.53% 5.62% -0.04% 1.39%

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.

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.

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 42.32% Was (31-Jul-2020) 43.40%
Other View Top 10 Issuers

Monthly data as of 31-Aug-2020

Holdings

Total
Holdings
162
Largest Holding U.S. Treasury Bonds 9.41% Was (31-Mar-2020) 0.00%
Top 10 Holdings 34.90%
Other View Full Holdings Quarterly data as of 30-Jun-2020

Countries

Total
Countries
36
Largest Country United States 28.92% Was (31-Jul-2020) 31.44%
Other View complete Country Diversification

Monthly Data as of 31-Aug-2020

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
30
Largest Currency Australian dollar 102.62% Was (31-Jul-2020) 101.08%
Other View complete Currency Diversification

Monthly Data as of 31-Aug-2020

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 05-Aug-2020)

Arif Husain

Arif Husain is head of International Fixed Income at T. Rowe Price. He is lead portfolio manager for the Dynamic Global Bond Strategies. Mr. Husain is also co-portfolio manager for the firm's International Bond, Global Aggregate Bond and Institutional International Bond Strategies. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Husain has 24 years of investment experience, six of which have been with T. Rowe Price. Prior to joining the firm in 2013, he spent 14 years as director of both European Fixed Income and Euro Portfolio Management at AllianceBernstein. He was also a member of the global fixed income and absolute return portfolio management teams. Mr. Husain previously worked as assistant director of European Derivatives Trading at Greenwich NatWest and also traded interest rate swaps at Bank of America National Trust & Savings Association.

Mr. Husain received a B.Sc. (hons.) in banking and international finance from the City University, London Business School. He also has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2014
  • Years at
    T. Rowe Price
    7
  • Years investment
    experience
    24

Fees

APIR Minimum Initial Investment (AUD) Minimum Subsequent Investment (AUD) Buy / Sell Spread Management Fees
ETL0398AU $650,000 $100,000 Buy +0.25%/ Sell -0.25% 0.40% p.a.

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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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