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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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Home / Products / SICAV / Emerging Markets Corporate Bond Fund
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SICAV

Emerging Markets Corporate Bond Fund

Accessing diversified emerging market corporate debt.

ISIN LU0596126465 WKN A1JA8L
View more information on risks
Factsheet
KIID
Fund Commentary

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

6.11%
$269.8m
Data as of 31-Dec-2020
Data as of 31-Dec-2020

1YR Return
(View Total Returns)

Manager Tenure

6.67%
5yrs
Data as of 31-Dec-2020
Data as of 15-Jan-2021

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.26
2.19%
Data as of 31-Dec-2020
Data as of 31-Dec-2020

Inception Date 18-May-2011

Performance figures calculated in USD

Other Literature

footerPhoto
31-Dec-2020 - Samy Muaddi, Portfolio Manager ,
While the global economic slowdown has weighed on corporate fundamentals in emerging markets, we remain encouraged by the fiscal and monetary steps taken by both developed and emerging nations to support the recovery. The high carry profile of emerging markets corporate debt should continue to attract investors in an environment of record-low global yields and elevated equity valuations. However, COVID-19 remains a risk to the global economic recovery, balancing out our view.
Samy Muaddi, CFA
Samy Muaddi, CFA, Co-Portfolio Manager

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.

 
  • This product's strategy also available as
  • a Strategy

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 corporate bonds from emerging market issuers.

Investment Approach

  • Focus primarily on corporate debt issued by companies domiciled within emerging market countries.
  • Integrate proprietary credit research and relative value analysis.
  • Establish independent credit rating for each company and country.
  • Add value primarily through individual security selection decisions.
  • Limit risk through diversification.
  • Employ long-term investment horizon combined with low portfolio turnover.
  • Utilize collaboration across macroeconomic, equity and corporate debt teams to take a comprehensive view of corporate debt securities.
  • Diversification cannot assure a profit or protect against loss in a declining market.

Portfolio Construction

  • Diversified portfolio structure: typically 100-150 securities
  • Duration bands: managed within +/- 1 year of the benchmark
  • Expected average credit quality: BB
  • Maximum corporate issuer exposure of 3%
  • Country exposure will range between +/- 20% of index
  • Corporate sector exposure will range between +/- 20% of index
  • Expected tracking error will range between 250 - 450 bps

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised		 5 YR
Annualised		 Since Inception
Annualised		 Since Manager Inception
Annualised
Fund % 6.67% 6.11% 7.70% 5.74% 7.56%
Indicative Benchmark % 7.13% 6.02% 7.12% 5.63% 6.86%
Excess Return % -0.46% 0.09% 0.58% 0.11% 0.70%

Inception Date 18-May-2011

Manager Inception Date 30-Sep-2015

Indicative Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Data as of 31-Dec-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised		 5 YR
Annualised		 Since Inception
Annualised
Fund % 6.67% 6.11% 7.70% 5.74%
Indicative Benchmark % 7.13% 6.02% 7.12% 5.63%
Excess Return % -0.46% 0.09% 0.58% 0.11%

Inception Date 18-May-2011

Indicative Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad 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 % -0.35% -0.35% -0.35% 1.72% 6.21%
Indicative Benchmark % -0.31% -0.31% -0.31% 1.47% 4.44%
Excess Return % -0.04% -0.04% -0.04% 0.25% 1.77%

Inception Date 18-May-2011

Indicative Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Indicative Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad 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.

footerPhoto
31-Dec-2020 - Samy Muaddi, Portfolio Manager ,
Emerging markets corporate debt generated strong total returns in December as higher-yielding assets were in demand. Expectations for an uptick in global growth were fuelled by vaccine deployments in several countries. Within the portfolio, our selection of higher-yielding issuers within the financial sector was beneficial, led by strong performance from BBVA Bancomer, Kuwait Projects, and Grupo Aval. Our security choices elections in the utilities sector, most notably Mexican gas provider IENOVA, were also helpful. The announcement that its investment-grade parent company would acquire IENOVA drove bonds higher. Our investments within the metals and mining sector, however, held back relative performance. Our higher-quality, more defensive, selections lagged advances in lower quality, higher-yielding securities amid increased risk appetite.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 13.29% Was (30-Nov-2020) 13.62%
Other View Top 10 Issuers

Monthly data as of31-Dec-2020

Holdings

Total
Holdings
195
Largest Holding Globo Comunicacao E Participacoes 1.14% Was (30-Sep-2020) 1.12%
Top 10 Holdings 10.65%
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 % 19.03% -15.89%
Fund 37.30% 3.45%
Indicative Benchmark 18.26% 19.34%

Average Credit Quality

BB

Monthly Data as of  31-Dec-2020
Indicative Benchmark:  J.P. Morgan Corporate Emerging Market Bond Index Broad 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 7-10 Years 1-3 Years
By % 9.08% -9.15%
Fund 26.72% 11.73%
Indicative Benchmark 17.64% 20.88%

Weighted Average Maturity

8.26 Years

Monthly Data as of  31-Dec-2020
Indicative Benchmark:  J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 5-7 Years 1-3 Years
By % 8.98% -12.97%
Fund 25.60% 12.40%
Indicative Benchmark 16.62% 25.38%

Weighted Average Duration

5.93 Years

Monthly Data as of  31-Dec-2020
Indicative Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

footerPhoto
30-Sep-2020 - Samy Muaddi, Portfolio Manager ,

Overweight Domestically Oriented Sectors

The technology, media, and telecommunications sector remained the largest overweight, although we allowed allocation to this sector to fall. We added to core holdings of Globo Comunicacoes, Tower Bersama, and Telfon Celuar.

�

We added to utilities holdings in companies that offered attractive risk-adjusted value following recent market volatility, making it our significant overweight. We added to higher-quality ACWA and Cometa. We also added to higher-yielding AES Generacion.

�

We minimized our overweight allocation to the real estate sector by reducing exposure to Chinese high yield property developers. We trimmed CIFI, Times China, Kaisa, Country Garden, and Evergrande.

�

We have grown our holdings within the industrial sector and are overweight. We added to high quality Israel Chemicals and Indorama.

Underweight Lower-Yielding and Less-Attractive Risk-Adjusted Relative Value

The financials sector remains the largest underweight, and we further reduced financial holdings during the quarter. We trimmed holdings in South African bank FirstRand.

�

We remain underweight the oil and gas sector but added to higher-quality names Leviathan and HPCL Mittal. The portfolio remains focused on quasi-sovereigns, adding to Petroleos Mexicanos and PTTEP.

�

We added to the metals and mining sector but are underweight. We added to higher-yielding Hudbay. The Peruvian miner has ample liquidity and offers attractive yields.

Credit Quality Considerations

From a secular perspective, we find the most value in BBB and BB credits. These segments generally offer opportunities to identify companies with improving fundamentals that are rating upgrade candidates or provide a stable and attractive risk-adjusted yield.

�

We increased our holdings of BBB rated names that offer attractive risk-adjusted value, such as Equate Petrochemical, the sole operator of the petrochemical complex in Kuwait. The bonds have lagged advances in other comparable names and offer improved relative value. We also added to BB rated quasi-sovereign Georgian Railway. The vertically integrated railroad company is the largest employer in the country and indirectly owned by the state. We continue to generally avoid distressed issuers in the CCC and below segment given their increased volatility, history of poor risk-adjusted returns and elevated default risk in the current environment.

Sectors

Total
Sectors
14
Largest Sector Financial 18.12% Was (30-Nov-2020) 16.97%
Other View complete Sector Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Largest Overweight

TMT
By4.82%
Fund 15.30%
Indicative Benchmark 10.48%

Largest Underweight

Financial
By-12.11%
Fund 18.12%
Indicative Benchmark 30.23%

Monthly Data as of 31-Dec-2020

footerPhoto
31-Dec-2020 - Samy Muaddi, Portfolio Manager ,
Our focus is on companies that we believe are well positioned to benefit from domestic economic growth, such as those in consumer related sectors, including technology, media, and telecommunications, utilities, and real estate. In contrast, we continue to have a lower exposure to financials given rich valuations in some areas and poor transparency. We also maintain a significant underweight exposure to the oil and gas sector.

Countries

Total
Countries
37
Largest Country China 11.92% Was (30-Nov-2020) 13.04%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Largest Overweight

India
By5.36%
Fund 9.40%
Indicative Benchmark 4.04%

Largest Underweight

Hong Kong
By-4.37%
Fund 0.00%
Indicative Benchmark 4.37%

Monthly Data as of 31-Dec-2020

footerPhoto
31-Dec-2016 - Samy Muaddi, Portfolio Manager ,
Countries with strong reform agendas including Brazil, Argentina, and Indonesia, remain a key focus of the strategy. On the other hand, we have trimmed our exposure to Mexico, largely through longer-maturity industrials, given the uncertainties around the potential renegotiation of North American free trade agreements

Currency

Total
Currencies
3
Largest Currency 99.66% Was (30-Nov-2020) 99.65%
Other View completeCurrency Diversification

Monthly Data as of  31-Dec-2020

Indicative Benchmark :

Largest Overweight

Indian rupee
By 0.34%
Fund 0.34%
Indicative Benchmark 0.00%

Largest Underweight

U.S. dollar
By -0.34%
Fund 99.66%
Indicative Benchmark 100.00%

Monthly Data as of  31-Dec-2020

Team (As of 15-Jan-2021)

Samy Muaddi, CFA

Samy Muaddi, CFA
Co-Portfolio Manager

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
    2015
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    14
Siby Thomas, CFA

Siby Thomas, CFA
Co-Portfolio Manager

Siby Thomas is a portfolio manager co-managing the Emerging Markets Corporate Bond Strategy in the Global Fixed Income Division. He is a vice president of the Multi-Sector Account Portfolios, Inc., and the International Funds, Inc., and a member of the Investment Advisory Committees for the Emerging Markets Corporate Multi-Sector Account Portfolio and the Emerging Markets Corporate Bond Fund. Siby also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Siby has been with T. Rowe Price since 2009, beginning as an emerging markets corporate credit analyst in the Fixed Income Division. Prior to this, he was an M.B.A. intern with T. Rowe Price. Prior to his current role, he was an associate portfolio manager on the Emerging Markets team. Before joining the firm, Siby was employed by Sargent & Lundy Engineers as a mechanical associate in the nuclear power division. 

Siby earned a B.S. in mechanical engineering from the University of Illinois and an M.B.A. in finance, accounting, and international business from the University of Chicago, Booth School of Business. He also has earned the Chartered Financial Analyst® designation. 

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

  • Fund manager
    since
    2020
  • Years at
    T. Rowe Price
    11
  • Years investment
    experience
    11

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% 135 basis points 1.52%
Class I $2,500,000 $100,000 $0 0.00% 70 basis points 0.80%
Class Q $1,000 $100 $100 0.00% 70 basis points 0.87%
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.

Indicative Benchmark Data Source: JP Morgan. Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The index is used with permission. The Index may not be copied, used, or distributed without J.P. Morgan’s prior written approval. Copyright © 2019, J.P. Morgan Chase & Co. All rights reserved.

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. 

Daily performance data is based on the latest available NAV. Performance returns for share classes less than 1 year old (and associated benchmarks) are cumulative rather than annualised.

Please note that no management fees are charged to the S and J share classes. No administration agent fees are charged to the J class. Fee arrangements for the S and J classes are made directly with the investment manager. Please see the prospectus for further information.

Effective 31 December 2020, Siby Thomas assumed co-portfolio management responsibility for the Emerging Markets Corporate Bond Fund.

The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors and via www.troweprice.com.

Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class. The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.

Net Asset figure applies to all share classes.

Number of years managing the fund. In the case of co-portfolio management, the longer tenure is displayed.

The specific securities identified and described in this report do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.