Strategy

Emerging Markets Local Currency Bond

The Emerging Markets Local Currency Bond Composite seeks to maximize total return by investing primarily in a widely diversified, global portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supra-national and corporate issuers established, or conducting the predominant part of their business activity, in the economically emerging countries of Latin America, Asia, Europe, Africa and the Middle East. The composite's emphasis will be on investing in securities denominated in the currencies of the respective emerging countries.

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

Tracking Error
(5 Years)

0.96%
1.19%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

-3.02%
0.61

Inception Date 30-Sep-2007

Performance figures calculated in USD

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Andrew Keirle
Andrew Keirle, Portfolio Manager

Andrew Keirle is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment Team. Mr. Keirle is the lead portfolio manager for the Emerging Markets Local Currency Bond Strategy and has important input on a number of emerging markets bond strategies and global fixed income strategies. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

 

Strategy

Investment Approach

  • Focus primarily on sovereign debt denominated in the currencies of the respective emerging countries.
  • Integrate proprietary credit research and relative value analysis.
  • Establish independent credit rating by country.
  • Add value through active country, currency and individual security selection decisions.
  • Limit risk through diversification.
  • Employ long-term investment horizon combined with low portfolio turnover.

Portfolio Construction

  • Higher concentration portfolio structure: typically 100-150 securities
  • Duration bands: managed within +/- 2 years of the benchmark
  • Average Credit Quality: BBB
  • Country exposure maximum 30% per country
  • Target tracking error: 200-400 bps

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 65.37% Was (31-Mar-2020) 65.03%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2020

Holdings

Total
Holdings
168
Largest Holding Indonesia Treasury Bond 4.43% Was (31-Mar-2020) 3.36%
Top 10 Holdings 27.83%
Other View Full Holdings Quarterly data as of 30-Jun-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating Reserves A
By % 3.62% -8.87%
Portfolio 3.62% 16.31%
Benchmark 0.00% 25.18%

Average Credit Quality

BBB

Monthly Data as of 30-Jun-2020
Benchmark:  J.P. Morgan GBI - EM Global Diversified

Sources: Moody's Investors Service; if Moody's does not rate a security, then Standard & Poor's (S&P) is used as a secondary source. When available, T. Rowe Price will use Fitch for securities that are not rated by Moody's or S&P. T. Rowe Price does not evaluate these ratings, but simply assigns them to the appropriate credit quality category as determined by the rating agency. 

U.S. Treasury securities are issued by the U.S. Treasury and are backed by the full faith and credit of the U.S. government. The ratings of U.S. Treasury securities are derived from the ratings on the U.S. government. 

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 5-7 Years 1-3 Years
By % 9.17% -14.88%
Portfolio 29.06% 8.23%
Benchmark 19.88% 23.11%

Weighted Average Duration

5.57 Years

Monthly Data as of 30-Jun-2020
Benchmark:  J.P. Morgan GBI - EM Global Diversified

Sectors

Total
Sectors
5
Largest Sector Sovereign 91.72% Was (31-Mar-2020) 92.35%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: J.P. Morgan GBI - EM Global Diversified

Largest Overweight

Reserves
By3.62%
Portfolio 3.62%
Benchmark 0.00%

Largest Underweight

Sovereign
By-8.28%
Portfolio 91.72%
Benchmark 100.00%

Monthly Data as of 30-Jun-2020

Regions

Total
Regions
5
Largest Region Latin America 28.61% Was (31-Mar-2020) 25.88%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2020

Benchmark: J.P. Morgan GBI - EM Global Diversified

Largest Overweight

Middle East & Africa
By4.79%
Portfolio 12.18%
Benchmark 7.39%

Largest Underweight

Emerging Europe
By-5.62%
Portfolio 26.49%
Benchmark 32.11%

Monthly Data as of 30-Jun-2020

Countries

Total
Countries
33
Largest Country Indonesia 10.80% Was (31-Mar-2020) 9.32%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2020

Benchmark: J.P. Morgan GBI - EM Global Diversified

Largest Overweight

South Africa
By2.45%
Portfolio 9.84%
Benchmark 7.39%

Largest Underweight

Poland
By-5.71%
Portfolio 2.84%
Benchmark 8.55%

Monthly Data as of 30-Jun-2020

Currency

Total
Currencies
33
Largest Currency Mexican peso 12.43% Was (31-Mar-2020) 11.66%
Other View complete Currency Diversification

Monthly Data as of 30-Jun-2020

Benchmark : J.P. Morgan GBI - EM Global Diversified

Largest Overweight

Czech koruna
By 3.06%
Portfolio 8.06%
Benchmark 5.00%

Largest Underweight

U.S. dollar
By -5.49%
Portfolio -5.49%
Benchmark 0.00%

Monthly Data as of 30-Jun-2020

Team (As of 01-Oct-2020)

Andrew Keirle

Andrew Keirle is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment Team. Mr. Keirle is the lead portfolio manager for the Emerging Markets Local Currency Bond Strategy and has important input on a number of emerging markets bond strategies and global fixed income strategies. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Keirle has 23 years of investment experience, 14 of which have been with T. Rowe Price. Prior to joining the firm in 2005, he was a portfolio manager and analyst at Lazard Asset Management. Prior to joining Lazard, Mr. Keirle spent seven years as a global portfolio manager at Gulf International Bank in London.

Mr. Keirle is a qualified member of the Institute of Investment Management and Research, and he also holds a diploma from the Society of Technical Analysts. He graduated with a B.Sc. in economics and politics from the University of Swansea at the University of Wales.

  • Portfolio manager
    since
    2011
  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    24
Michael J.  Conelius, CFA

Michael Conelius is a portfolio manager in the International Fixed Income Division. He co-manages the Emerging Markets Bond and the Institutional Emerging Markets Bond Funds and is chairman of each fund’s Investment Advisory Committee. Michael is an executive vice president of the Global Funds and International Funds, a vice president and an Investment Advisory Committee member of the Global Multi-Sector Bond Fund, a vice president of the Institutional Income Funds and Multi-Sector Account Portfolios, and a member of the Distressed Advisory Committee. He also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price Trust Company, and T. Rowe Price International Ltd.

Michael has been with T. Rowe Price since 1988, beginning as a financial analyst in the Corporate Finance department. After that, he was a credit analyst and portfolio manager on the Emerging Markets team before assuming his current role. Prior to T. Rowe Price, he was employed by Booz Allen Hamilton as a consultant.

Michael earned a B.S. in finance from Towson University and an M.S. in finance from Loyola University Maryland. 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
    32
  • Years investment
    experience
    26
Samy Muaddi, CFA

Samy Muaddi is a portfolio manager in the International Fixed Income Division. He is the lead manager of the Emerging Markets Corporate Bond and Asia Credit Bond Strategies and co-manages the Emerging Markets Bond and Global High Income Bond Strategies. Samy also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Samy’s investment experience began in 2006 when he joined T. Rowe Price, beginning as an associate analyst in the Fixed Income Division. After that, he was a credit analyst and then an associate portfolio manager on the Emerging Markets team before assuming his current role.

Samy earned a B.A., summa cum laude, in economics from the University of Maryland. He also has earned the Chartered Financial Analyst® designation. Samy is an adjunct professor at Georgetown University in the Walsh Graduate School of Foreign Service.

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

  • Portfolio manager
    since
    2013
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    14
Benjamin Robins, CFA

Ben Robins is a portfolio specialist in the Fixed Income Division at T. Rowe Price. He supports our emerging market debt strategies, which includes hard currency- and local currency-denominated sovereign and corporate debt, working closely with clients, consultants, and prospects. Mr. Robins is a vice president of T. Rowe Price Associates, Inc.

Mr. Robins has 19 years of investment experience. Prior to joining the firm in 2016, he worked as a senior investment consultant at Cambridge Associates, which included client relationship management and fixed income manager research. Prior to that, Mr. Robins worked in investments at Lehman Brothers.

Mr. Robins earned a B.A. in economics, with honors, from the College of William & Mary and an M.B.A. from the Tuck School of Business at Dartmouth. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    4
  • Years investment
    experience
    20

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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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