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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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SICAV

Dynamic Global Bond Fund

Formerly Global Unconstrained Bond Fund

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

ISIN LU1216622214 WKN A14UB9

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

1.98%
$1.1b

1YR Return
(View Total Returns)

Manager Tenure

7.60%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.16
3.09%

Inception Date 10-Jun-2015

Performance figures calculated in USD

Other Literature

31-Oct-2020 - Arif Husain, Head of International Fixed Income,
Overall, we believe that it’s important to stay flexible in the current environment so that we can adapt quickly to changes in market conditions and take advantage of any pricing anomalies and dislocations that might occur. We remain in uncharted territory with respect to the coronavirus pandemic and therefore continue to monitor events closely on this front. We are also watching for any progress on a possible new U.S. fiscal package.
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

To generate income while offering some protection against rising interest rates and a low correlation with equity markets. The fund invests mainly in a portfolio of bonds of all types from issuers around the world, including emerging markets.

Investment Approach

  • The Dynamic Global Bond Fund seeks to provide attractive, stable income and downside risk management through dynamic and flexible portfolio management. The fund is not benchmark sensitive and invests in fixed income securities from a broad opportunity set, looking for best opportunities but also for defensive investments to manage downside risk.
    • Seeks performance through income and capital gains
    • Seeks to generate consistent and sustainable performance through diversification across geography and markets
    • Controlled risk profile with bond-like volatility
    • Focus on downside risk from potential rise in interest rates
    • Tactical management of duration profile and country selection
    • Based on high conviction views driven by extensive research platform
    • Low correlation with risky markets during periods of risk aversion
    • Focus on government allocation as opposed to credit risk
  • Target value added: seeks to outperform the U.S. 3 month Libor over a full market cycle (Not a formal objective and it can be changed without prior notice. Please reference prospectus for formal objective.)
  • Target tracking error: between 2% and 5% tracking error annualized
  • Fund offering different types of share classes currency hedged.

Portfolio Construction

  • Total duration between -1 and 6 years
  • Minimum 50% currency hedged
  • Minimum 50% in non-USD securities
    • Ability to go long and short individual countries and currencies
  • Up to 100% allowed in government bond securities
  • Up to 30% allowed in High Yield

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 7.60% 1.98% 1.99% 2.11% 2.11%
Indicative Benchmark % 0.95% 1.86% 1.48% 1.40% 1.40%
Excess Return % 6.65% 0.12% 0.51% 0.71% 0.71%

Inception Date 10-Jun-2015

Manager Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Data as of  31-Oct-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 7.39% 1.89% 2.32% 2.14%
Indicative Benchmark % 1.10% 1.89% 1.48% 1.42%
Excess Return % 6.29% 0.00% 0.84% 0.72%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Data as of  30-Sep-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 20-Nov-2020 Quarter to DateData as of 20-Nov-2020 Year to DateData as of 20-Nov-2020 1 MonthData as of 31-Oct-2020 3 MonthsData as of 31-Oct-2020
Fund % 0.45% 0.45% 6.44% 0.00% -1.06%
Indicative Benchmark % 0.01% 0.03% 0.64% 0.02% 0.06%
Excess Return % 0.44% 0.42% 5.80% -0.02% -1.12%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Indicative Benchmark: 3 Month LIBOR in USD

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.

31-Oct-2020 - Arif Husain, Head of International Fixed Income,
Performance was mixed in core government bond markets during October. In the U.S., Treasuries generated a negative return as generally solid economic data and expectations for Joe Biden to win the presidential election drove yields higher and the curve steeper. In the eurozone, by contrast, core bond yields declined as coronavirus cases picked up sharply, leading some countries in the region to reinstate lockdowns and restrictive measures. At the portfolio level, our exposures to local currency government bond markets of specific emerging market countries boosted performance, with India, Serbia, and Romania all adding gains. Allocations to the eurozone periphery countries of Italy and Cyprus also aided returns. Our positioning in high-quality countries dragged on performance, however, including a long duration stance in the U.S. and a short duration position in Germany. In the currency sphere, our positioning detracted overall owing in part to losses from a short position in the South Korean won.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 55.44% Was (30-Sep-2020) 53.76%
Other View Top 10 Issuers

Monthly data as of 31-Oct-2020

Holdings

Total
Holdings
165
Largest Holding U.S. Treasury Bonds 10.19% Was (30-Jun-2020) 11.66%
Top 10 Holdings 41.74%
Other View Full Holdings Quarterly data as of 30-Sep-2020

Sectors

Total
Sectors
6
Largest Sector Government 69.60% Was (30-Sep-2020) 65.72%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2020

31-Oct-2020 - Arif Husain, Head of International Fixed Income,
In sectors, we continued to hold long positions in select corporate, securitised, and hard currency emerging market sovereign bonds identified by our bottom up research process. These were broadly offset by defensive short positions in synthetic credit instruments, primarily in the investment-grade space.

Countries

Total
Countries
39
Largest Country United States 18.91% Was (30-Sep-2020) 32.54%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2020

31-Oct-2020 - Arif Husain, Head of International Fixed Income,
We reduced the portfolio’s overall duration level significantly during October. This was driven mainly by cutting duration in high-quality countries due to our concerns around their ability to offer diversification in the current environment. Most notably, we moved from long duration stances to short positions in both the U.S. and Germany. We also opened a new short duration stance in France and trimmed our positive exposure in Australia.

Team (As of 01-Oct-2020)

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 199 5 , 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
    2015
  • Years at
    T. Rowe Price
    7
  • Years investment
    experience
    24
Stephane Fertat

Stephane Fertat is a portfolio specialist in the Fixed Income Division. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd. 

Stephane’s investment experience began in 1998, and he has been with T. Rowe Price since 2007, beginning in the Fixed Income Division. Prior to joining the firm, he was employed by Fischer Francis Trees and Watts, a global fixed income asset management company, where he worked as a European fixed income fund manager before moving to a product manager role. Stephane also was a director of client service and business development for the southern European distribution team of Fischer Francis Trees and Watts. He also was employed by Société Générale Fimat Investment Management in Chicago.

Stephane earned a master’s degree in finance from Ecole Superieure de Commerce de Paris. 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
    13
  • Years investment
    experience
    23
Christopher Dillon, CFA

Chris Dillon is an investment specialist in the Multi-Asset Division. He is also a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Chris’s investment experience began in 1993, and he has been with T. Rowe Price since 2006, beginning in the Fixed Income Division. Prior to this, Chris was employed by PNC Advisors as an investment advisory research consultant. He also directed fixed income management research with Smith Barney Consulting Group.

Chris earned a B.A., cum laude, in history/economics from the University of Delaware and an M.B.A. from Wilmington University. 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
    14
  • Years investment
    experience
    23
Terry  A.  Moore

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

Mr. Moore has 23 years of investment experience, nine of which have been at T. Rowe Price. Prior to joining the firm in 2009, he was a portfolio manager and principal with Smith Breeden Associates, where he managed a variety of fixed income portfolios with a focus on residential mortgage-backed securities. He also worked at Goldman Sachs & Co. trading asset-backed securities.

Mr. Moore earned a B.A. in economics and political science from the University of North Carolina at 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.

  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    24

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%
Class Sd $10,000,000 $0 $0 0.00% 0 basis points 0.10%

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