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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 LU1238971292 WKN A14UCB

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

-2.08%
$968.5m

1YR Return
(View Total Returns)

Manager Tenure

-2.82%
4yrs

Inception Date 10-Jun-2015

Performance figures calculated in GBP

Other Literature

30-Sep-2019 - Arif Husain, Portfolio Manager,
The rally in global government bonds came to a sudden stop in September as market participants appeared happy to look through the current economic weakness to position themselves for a better macro environment in 2020. In our view, data is close to bottoming and it’s possible we could see some improvement over the medium term. Looser financial conditions should be supportive of growth, as should China pursuing more fiscal stimulus.
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

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 Ih | GBP)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % -2.82% -2.08% N/A -0.05% -0.05%
Indicative Benchmark % 0.83% 0.61% N/A 0.59% 0.59%
Excess Return % -3.65% -2.69% N/A -0.64% -0.64%

Inception Date 10-Jun-2015

Manager Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in GBP

Data as of  31-Oct-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % -2.05% -1.83% N/A 0.02%
Indicative Benchmark % 0.83% 0.60% N/A 0.58%
Excess Return % -2.88% -2.43% N/A -0.56%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in GBP

Data as of  30-Sep-2019

Performance figures calculated in GBP

Recent Performance

  Month to DateData as of 12-Nov-2019 Quarter to DateData as of 12-Nov-2019 Year to DateData as of 12-Nov-2019 1 MonthData as of 31-Oct-2019 3 MonthsData as of 31-Oct-2019
Fund % 0.40% 0.10% -2.91% -0.30% -2.35%
Indicative Benchmark % 0.03% 0.09% 0.70% 0.07% 0.19%
Excess Return % 0.37% 0.01% -3.61% -0.37% -2.54%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in GBP

Indicative Benchmark: 3 Month LIBOR in GBP

Performance figures calculated in GBP

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.

30-Sep-2019 - Arif Husain, Portfolio Manager,
The easing of trade concerns drove core bond yields mostly higher and curves steeper during September. The European Central Bank was in the spotlight as it announced a package of rate cuts and new asset purchases to help revive eurozone growth. It also altered the terms of its long-term loans for banks and announced a tiering system to mitigate the effect of negative interest rates on eurozone banks. Elsewhere, the Federal Open Market Committee, as expected, cut the Fed Funds target by 25 basis points to a range of 1.75%-2%. At the portfolio level, our short-duration stances in the U.S. and France contributed positively, while a long position in Canada and short duration posture in Italy held back performance. In currency markets, renewed risk appetite in September favoured our long positions in emerging market currencies like the Russian rouble and Argentine peso but resulted in losses for our long Japanese yen position.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 49.93% Was (30-Sep-2019) 50.68%
Other View Top 10 Issuers

Monthly data as of 31-Oct-2019

Holdings

Total
Holdings
137
Largest Holding Korea Treasury Bond 6.88% Was (30-Jun-2019) 5.64%
Top 10 Holdings 36.49%
Other View Full Holdings Quarterly data as of 30-Sep-2019

Sectors

Total
Sectors
7
Largest Sector Government 65.50% Was (30-Sep-2019) 67.40%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2019

30-Sep-2019 - Arif Husain, Portfolio Manager,
In sector allocation, we moved from an overall negative credit stance to a more neutral position. This was implemented through the purchase of corporate bonds and the reduction of short positions expressed in investment-grade and U.S. high yield credit indices via derivative instruments.

Countries

Total
Countries
35
Largest Country United States 29.28% Was (30-Sep-2019) 28.91%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2019

30-Sep-2019 - Arif Husain, Portfolio Manager,
We reduced the portfolio’s overall duration level in September. This was done in part by extending the short U.S. duration position in the belly of the curve as we believe that this area is potentially most vulnerable to a correction. In the eurozone, we implemented a new negative duration stance in Germany as we felt valuations were stretched with the entire curve in negative yield territory. Elsewhere, we closed our short position in Italy amid an improvement in the political environment.

Team (As of 31-Aug-2019)

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
    2015
  • Years at
    T. Rowe Price
    6
  • Years investment
    experience
    23
Stephane Fertat

Stephane Fertat is a fixed income portfolio specialist for T. Rowe Price. He is a member of the Global Fixed Income team, supporting all global/international fixed income strategies. He represents the portfolio management team, presenting strategies as well as market outlooks in meetings and conferences. Mr. Fertat has broad knowledge of fixed income, currency, credit and derivative instruments - leading him to assist in the development of customized fixed income solutions - and he has helped launch a number of new strategies since joining the firm in 2007. Mr. Fertat is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Fertat has 22 years of investment experience, 12 of which have been at T. Rowe Price. Prior to joining the firm in 2007, 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. Mr. Fertat was also a director of client service and business development for Southern Europe and worked previously at Societe Generale Fimat Investment Management in Chicago.

Mr. Fertat holds a master's degree in finance from Ecole Superieure de Commerce de Paris (ESCP-EAP). He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    22
Christopher Dillon

Chris Dillon is an investment specialist in the Multi-Asset Division at T. Rowe Price. He provides broad insight across the various views that T. Rowe Price has across the Equity and Fixed Income Divisions. Mr. Dillon is also responsible for communicating how the firm's Multi-Asset team is allocating across asset classes from longer- and shorter-term perspectives. Mr. Dillon is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Dillon has 22 years of investment experience, 13 of which have been with T. Rowe Price. Prior to joining the firm in 2006, he was an investment advisory research consultant for PNC Advisors. Prior to that, Mr. Dillon directed fixed income management research for Smith Barney Consulting Group.

Mr. Dillon earned a B.A., cum laude, in history/economics from the University of Delaware and an M.B.A. in business administration from Wilmington University. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    22
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 22 years of investment experience, eight 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
    9
  • Years investment
    experience
    23

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount Minimum Subsequent Investment Minimum Redemption Amount Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $15,000 $100 $100 5.00% 100 basis points 1.17%
Class I $2,500,000 $100,000 $0 0.00% 50 basis points 0.58%
Class Q $15,000 $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.

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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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