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SICAV

Global Investment Grade Corporate Bond Fund

Seeks to maximise returns through investment in a portfolio of global corporate bonds.

ISIN LU1216623295 WKN A14UB6

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

4.70%
$45.8m

1YR Return
(View Total Returns)

Manager Tenure

11.64%
4yrs

Information Ratio
(3 Years)

Tracking Error
(3 Years)

0.12
1.16%

Inception Date 08-Jun-2015

Performance figures calculated in USD

Other Literature

30-Sep-2019 - Steven Boothe, Portfolio Manager,
We have a mixed view on the outlook for global investment-grade corporate bonds. Increasingly accommodative moves by major central banks in recent months will likely continue to support risk sentiment. A favourable technical backdrop amid a low-yield environment and stabilising corporate fundamentals should also boost the asset class. However, we are cognisant that market volatility could return. With this in mind, we continue to rely on our bottom-up research to identify any long-term opportunities and potential market dislocations.
Steven Boothe
Steven Boothe, Portfolio Manager

Steve Boothe is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Boothe has lead portfolio management responsibilities for the Global Investment Grade and U.S. Investment Grade Corporate Bond Strategies. He is a member of the Global Multi-Sector and U.S. Taxable Bond teams, with a focus on global and U.S. investment-grade corporate bond portfolios. Mr. Boothe is an executive vice president and cochairman of the Investment Advisory Committee of the Corporate Bond Strategy. He is also a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

 

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 investment-grade corporate bonds from issuers around the world, including emerging markets.

Investment Approach

  • The investment manager’s approach is based on proprietary fundamental research harvested by our global research platform.
  • The investment process places a strong emphasis on risk management practices and portfolio diversification to manage the overall risk profile.

Portfolio Construction

  • Duration is managed within +/- 20% of benchmark
  • Non-Corporate Credit: 0-20%
  • Below Investment Grade: 0-20%, BB- minimum credit quality at time of purchase
  • Return target and expect vol are +125 bps and 100-300 bps
  • Holdings: typically 75-150 Issuers

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 11.64% 4.70% N/A 5.62% 5.62%
Indicative Benchmark % 11.70% 4.56% N/A 5.17% 5.17%
Excess Return % -0.06% 0.14% N/A 0.45% 0.45%

Inception Date 08-Jun-2015

Manager Inception Date 08-Jun-2015

Indicative Benchmark: Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Data as of  30-Sep-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 11.64% 4.70% N/A 5.62%
Indicative Benchmark % 11.70% 4.56% N/A 5.17%
Excess Return % -0.06% 0.14% N/A 0.45%

Inception Date 08-Jun-2015

Indicative Benchmark: Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Data as of  30-Sep-2019

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 16-Oct-2019 Quarter to DateData as of 16-Oct-2019 Year to DateData as of 16-Oct-2019 1 MonthData as of 30-Sep-2019 3 MonthsData as of 30-Sep-2019
Fund % -0.32% -0.32% 10.80% -0.47% 3.09%
Indicative Benchmark % -0.31% -0.31% 11.25% -0.51% 2.71%
Excess Return % -0.01% -0.01% -0.45% 0.04% 0.38%

Inception Date 08-Jun-2015

Indicative Benchmark: Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Indicative Benchmark: Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

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-Sep-2019 - Steven Boothe, Portfolio Manager,
Global investment-grade corporate bonds posted a negative return overall in September. Excess returns were positive in the period, however. Spreads tightened through the month as positive growth and progress in U.S.-China relations led market participants to increase their appetites for risk. Within the portfolio, our security selection added to relative returns over September, mainly via our choices in the banking, non-cyclicals, capital goods, and electric utilities sectors. European banks in particular benefitted from supportive measures introduced by the European Central Bank during the month, including alterations to its Targeted Long-Term Refinancing Operation. Our asset allocation, meanwhile, had a broadly flat impact on performance. An overweight to financials and underweight to energy both added to relative returns. However, our systematic risk hedging positions weighed slightly.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 21.14% Was (31-Aug-2019) 21.23%
Other View Top 10 Issuers

Monthly data as of 30-Sep-2019

Holdings

Total
Holdings
167
Largest Holding Morgan Stanley 1.73% Was (30-Jun-2019) 0.00%
Top 10 Holdings 15.05%
Other View Full Holdings Quarterly data as of 30-Sep-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BBB A
By % 10.54% -14.30%
Fund 58.56% 22.86%
Indicative Benchmark 48.02% 37.16%

Average Credit Quality

BBB

Monthly Data as of 30-Sep-2019
Indicative Benchmark:  Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

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 3-5 Years 1-3 Years
By % 11.13% -17.01%
Fund 31.78% 4.59%
Indicative Benchmark 20.65% 21.61%

Weighted Average Maturity

7.26 Years

Monthly Data as of 30-Sep-2019
Indicative Benchmark:  Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 3-5 Years Over 10 Years
By % 15.10% -16.30%
Fund 37.62% 6.72%
Indicative Benchmark 22.52% 23.02%

Weighted Average Duration

6.59 Years

Monthly Data as of 30-Sep-2019
Indicative Benchmark:  Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Countries

Total
Countries
26
Largest Country United States 51.00% Was (31-Aug-2019) 54.45%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Largest Overweight

China
By5.94%
Fund 6.96%
Indicative Benchmark 1.02%

Largest Underweight

France
By-5.24%
Fund 1.34%
Indicative Benchmark 6.58%

Monthly Data as of 30-Sep-2019

30-Sep-2019 - Steven Boothe, Portfolio Manager,
We retain an overweight to emerging markets and see potentially attractive value opportunities in our high-conviction names. While cognisant of trade tensions, we hold a positive view of the Asia Pacific region and see the potential for China stimulus to add further support. We are also overweight to Europe and underweight to the U.S.

Currency

Total
Currencies
5
Largest Currency U.S. dollar 99.75% Was (31-Aug-2019) 99.70%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark : Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Largest Overweight

U.S. dollar
By 33.36%
Fund 99.75%
Indicative Benchmark 66.39%

Largest Underweight

euro
By -23.36%
Fund -0.01%
Indicative Benchmark 23.35%

Monthly Data as of 30-Sep-2019

30-Apr-2016 - Steven Boothe, Portfolio Manager,
Nearly all of the Fund’s holdings are U.S. dollar-denominated.

Team (As of 31-Aug-2019)

Steven Boothe

Steve Boothe is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Boothe has lead portfolio management responsibilities for the Global Investment Grade and U.S. Investment Grade Corporate Bond Strategies. He is a member of the Global Multi-Sector and U.S. Taxable Bond teams, with a focus on global and U.S. investment-grade corporate bond portfolios. Mr. Boothe is an executive vice president and cochairman of the Investment Advisory Committee of the Corporate Bond Strategy. He is also a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Boothe has 21 years of investment experience, 19 of which have been at T. Rowe Price. He joined the firm in 1999 and was a credit research analyst, covering the global telecommunications and technology industries, and an investment-grade corporate portfolio manager/analyst prior to assuming his current role in 2014.

Mr. Boothe earned a B.A. in economics/mathematics from Columbia University. He also has earned the Chartered Financial Analyst designation and is a Series 7 and 63 registered representative.

  • Fund manager
    since
    2015
  • Years at
    T. Rowe Price
    20
  • Years investment
    experience
    22

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% 75 basis points 1.07%
Class I $2,500,000 $100,000 $0 0.00% 40 basis points 0.50%
Class Q $15,000 $100 $100 0.00% 40 basis points 0.57%

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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