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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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T. Rowe Price

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SICAV

Emerging Markets Bond Fund

Active investment in mainly sovereign emerging-market bonds.

ISIN LU0207127753 WKN A0DP3A

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

2.86%
$296.6m

1YR Return
(View Total Returns)

Manager Tenure

2.12%
16yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.16
3.45%

Inception Date 31-Dec-2004

Performance figures calculated in USD

Other Literature

30-Nov-2020 - Michael Conelius, Portfolio Manager ,
While the global economic slowdown and health care crisis have weighed on fundamentals in emerging markets (EM), we remain encouraged by fiscal and monetary steps taken by both developed and emerging nations to support a recovery in global economic activity. The high carry provided by EM debt should continue to attract investors in an environment of record-low global yields and elevated equity valuations. However, valuations have moderated in recent months and technicals are now more balanced.
Michael J.  Conelius, CFA
Michael J. Conelius, CFA, Co-Portfolio Manager

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.

 

Strategy

Investment Objective

To maximise the value of its shares through both growth in the value of, and income from, its investments. The fund invests mainly in a diversified portfolio of bonds of all types from emerging market issuers.

Investment Approach

  • Focus primarily on sovereign debt.
  • Integrate proprietary credit research and relative value analysis.
  • Establish independent credit rating at the country and corporate issuer level.
  • Add value through active country allocation and individual security selection decisions.
  • Limit risk through diversification.
  • Employ long-term investment horizon.

Portfolio Construction

  • Diversified portfolio structure: typically 200-300 securities
  • Duration bands: managed within +/- 1 year of the benchmark
  • Average credit quality: BB
  • Country exposure will range between 0% and 10%
  • Expected tracking error: 200-400 bps

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 2.12% 2.86% 6.51% 5.15% 6.40%
Indicative Benchmark % 5.26% 5.05% 7.08% 6.22% 7.14%
Excess Return % -3.14% -2.19% -0.57% -1.07% -0.74%

Inception Date 31-Dec-2004

Manager Inception Date 31-Dec-2004

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Data as of 31-Dec-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 2.12% 2.86% 6.51% 5.15%
Indicative Benchmark % 5.26% 5.05% 7.08% 6.22%
Excess Return % -3.14% -2.19% -0.57% -1.07%

Inception Date 31-Dec-2004

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Data as of 31-Dec-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 15-Jan-2021 Quarter to DateData as of 15-Jan-2021 Year to DateData as of 15-Jan-2021 1 MonthData as of 31-Dec-2020 3 MonthsData as of 31-Dec-2020
Fund % -1.33% -1.33% -1.33% 2.51% 8.27%
Indicative Benchmark % -1.46% -1.46% -1.46% 1.90% 5.80%
Excess Return % 0.13% 0.13% 0.13% 0.61% 2.47%

Inception Date 31-Dec-2004

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

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.

30-Nov-2020 - Michael Conelius, Portfolio Manager ,
EM debt generated strong total returns in November. Encouraging news about coronavirus vaccines led to exuberance in the markets as concerns about renewed shutdowns began to fade. Within the portfolio, our effective security selection and preference for quasi sovereigns in Mexico added to results. Positions in Mexico City Airport Trust and Petroleos Mexicanos outperformed the sovereign, supported by higher yields. Our overweight allocation to Sri Lanka added further to returns; the frontier sovereign advanced as risk appetites increased. A better-than-expected recovery in exports coupled with low imports improved the current account balance. Argentina was another source of strength due to our overweight allocation and selection of corporates, led by advances in YPF. Our out-of-benchmark holdings in Venezuela, however, held back relative performance, as did our overweight allocation to Ecuador. Increased uncertainty about Ecuador's upcoming presidential election led to underperformance despite the country's assets' higher yields.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 29.04% Was (30-Nov-2020) 29.53%
Other View Top 10 Issuers

Monthly data as of31-Dec-2020

Holdings

Total
Holdings
217
Largest Holding Bahamas Government International Bond 2.47% Was (30-Sep-2020) 2.42%
Top 10 Holdings 20.73%
Other View Full Holdings Quarterly data as of  31-Dec-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB A
By % 9.66% -12.47%
Fund 27.23% 3.61%
Indicative Benchmark 17.56% 16.08%

Average Credit Quality

BB-

Monthly Data as of  31-Dec-2020
Indicative Benchmark:  J.P. Morgan Emerging Markets Bond Index Global Diversified

Sources for Credit Quality Diversification: Moody's Investors Service and Standard & Poor's (S&P) split ratings (i.e. BB/B and B/CCC) are assigned when the Moody's and S&P ratings differ. Short-Term holdings are not rated.

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity Cash Equivalents 3-5 Years
By % 4.33% -4.90%
Fund 4.33% 9.65%
Indicative Benchmark 0.00% 14.55%

Weighted Average Maturity

12.82 Years

Monthly Data as of  31-Dec-2020
Indicative Benchmark:  J.P. Morgan Emerging Markets Bond Index Global Diversified

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Cash Equivalents 1-3 Years
By % 4.26% -10.82%
Fund 4.26% 5.25%
Indicative Benchmark 0.00% 16.07%

Weighted Average Duration

7.98 Years

Monthly Data as of  31-Dec-2020
Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

30-Sep-2020 - Michael Conelius, Portfolio Manager ,

We are overweight countries pursuing reform agendas that target long-term growth.

Brazil

While we remain overweight Brazil, political and fiscal challenges caused us to trim holdings. We pared a position in corporate issuer Rumo ahead of new supply, and we remain underweight the sovereign. However, we still find attractive relative value in many corporate issuers.�

Mexico

Mexico remains an overweight in the portfolio. We continue to find attractive relative value in quasi-sovereign issuers Petroleos Mexicanos and Mexico City Airport Trust. We reduced our holdings in corporate issuer Sixsigma Networks on reduced analyst conviction.

Ukraine

Ukraine is a meaningful overweight in the portfolio, though we trimmed our position to lock in gains following a period of strong performance as the frontier sovereign recovered from oversold levels. Ukraine's new IMF program was designed to support the progress that has been made in economic reforms.

We remain underweight countries that offer limited risk-adjusted return potential.

Malaysia

We remain underweight Malaysia and the Philippines as the higher-quality Asian issuers' external debt provides generally uninspiring relative value due to its lower yields.

Kazakhstan

We remain underweight Kazakhstan amid political changes. While these changes could be an indication that the country is moving to a more open economy, spreads are tight with limited upside and valuations versus similar oil-exporting peers are uninspiring.

Panama and Peru

We are significantly underweight Panama and Peru as the high-quality sovereigns are relatively low yielding, and we see better relative value elsewhere.

Sectors

Total
Sectors
4
Largest Sector Sovereign 65.76% Was (30-Nov-2020) 63.85%
Other View complete Sector Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Largest Overweight

Corporate
By17.21%
Fund 17.28%
Indicative Benchmark 0.07%

Largest Underweight

Sovereign
By-16.85%
Fund 65.76%
Indicative Benchmark 82.62%

Monthly Data as of 31-Dec-2020

30-Nov-2020 - Michael Conelius, Portfolio Manager ,
We are finding value in fundamentally attractive quasi-sovereigns and select corporates in mainstream markets that offer yield premiums over their respective sovereign. We maintained our local currency exposure at near zero as EM currencies are likely to remain volatile in the near term.

Countries

Total
Countries
59
Largest Country Mexico 8.64% Was (30-Nov-2020) 8.74%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Largest Overweight

Mexico
By4.53%
Fund 8.64%
Indicative Benchmark 4.11%

Largest Underweight

Malaysia
By-2.69%
Fund 0.00%
Indicative Benchmark 2.69%

Monthly Data as of 31-Dec-2020

30-Nov-2020 - Michael Conelius, Portfolio Manager ,
We maintain conviction in select frontier names that have been excessively punished, such as Ukraine and Ghana. On the other hand, we remain cautious about more structurally vulnerable names, such as South Africa and Kenya. We have also trimmed our overweight positions in Egypt and Ecuador, locking in some gains. We maintain our structural underweight positions in low-beta countries, such as Russia, China, and the Gulf States, although we have added to some Gulf States.

Currency

Total
Currencies
10
Largest Currency 97.63% Was (30-Nov-2020) 97.65%
Other View completeCurrency Diversification

Monthly Data as of  31-Dec-2020

Indicative Benchmark :

Largest Overweight

Chinese renminbi
By 0.96%
Fund 0.96%
Indicative Benchmark 0.00%

Largest Underweight

U.S. dollar
By -2.37%
Fund 97.63%
Indicative Benchmark 100.00%

Monthly Data as of  31-Dec-2020

31-Oct-2015 - Michael Conelius, Portfolio Manager ,
Given our expectations for continued U.S. dollar strength, we maintained a low and defensive level of non-benchmark currency exposure.

Team (As of 15-Jan-2021)

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.

  • Fund manager
    since
    2004
  • 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.

  • Fund manager
    since
    2020
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    14

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% 125 basis points 1.42%
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.73%
Class Q $1,000 $100 $100 0.00% 65 basis points 0.81%
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.