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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

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)

4.52%
$45.6m

1YR Return
(View Total Returns)

Manager Tenure

3.31%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.07
2.25%

Inception Date 08-Jun-2015

Performance figures calculated in USD

Other Literature

31-Oct-2020 - Steven Boothe, Portfolio Manager,
Rising coronavirus infections in the developed world could cause volatility in the near term. Politics could add an additional layer of uncertainty as legal challenges continue in the U.S following the presidential elections. Elsewhere, U.S.-China tensions and the ramifications of Brexit remain at the forefront of concerns. After a strong recovery over the summer, we feel it is unlikely that the pace of returns for risk assets will continue. With this in mind, we continue with a more cautious approach while relying on our fundamental research to uncover opportunities.
Steve Boothe
Steve 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
  • 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 % 3.31% 4.52% 5.41% 5.16% 5.16%
Indicative Benchmark % 5.89% 5.70% 5.57% 5.30% 5.30%
Excess Return % -2.58% -1.18% -0.16% -0.14% -0.14%

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  31-Oct-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 3.55% 4.74% 5.59% 5.23%
Indicative Benchmark % 6.20% 5.89% 5.68% 5.36%
Excess Return % -2.65% -1.15% -0.09% -0.13%

Inception Date 08-Jun-2015

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

Data as of  30-Sep-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 27-Nov-2020 Quarter to DateData as of 27-Nov-2020 Year to DateData as of 27-Nov-2020 1 MonthData as of 31-Oct-2020 3 MonthsData as of 31-Oct-2020
Fund % 2.29% 2.36% 4.76% 0.08% -0.53%
Indicative Benchmark % 2.03% 2.14% 7.59% 0.11% -0.68%
Excess Return % 0.26% 0.22% -2.83% -0.03% 0.15%

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.

31-Oct-2020 - Steven Boothe, Portfolio Manager,
Global investment grade corporate bonds posted modest positive returns for the period. Despite a rise in volatility toward the end of the month as parts of Europe instituted a fresh set of lockdown measures to combat the coronavirus pandemic. Strong technical demand helped spreads tighten overall. Ongoing central bank dovishness and some positive economic data also supported the asset class. The portfolio underperformed the benchmark during the period, with overall asset allocation weighing on relative returns. In particular, our exposure to credit derivatives used for hedging purposes detracted from relative gains as spreads tightened over the period. By contrast, the portfolio’s security selection supported relative returns. This was aided chiefly by our selections in the banking sector, which outperformed. Selections in the REIT and consumer non-cyclicals space also supported relative gains.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 18.39% Was (30-Sep-2020) 18.09%
Other View Top 10 Issuers

Monthly data as of31-Oct-2020

Holdings

Total
Holdings
227
Largest Holding DB Master Finance 1.48% Was (30-Jun-2020) 1.57%
Top 10 Holdings 11.47%
Other View Full Holdings Quarterly data as of 30-Sep-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB A
By % 9.94% -11.00%
Fund 11.22% 27.88%
Indicative Benchmark 1.27% 38.88%

Average Credit Quality

BBB+

Monthly Data as of 31-Oct-2020
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 % 4.01% -10.69%
Fund 24.09% 8.95%
Indicative Benchmark 20.08% 19.65%

Weighted Average Maturity

9.00 Years

Monthly Data as of 31-Oct-2020
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 % 8.21% -9.82%
Fund 30.50% 15.28%
Indicative Benchmark 22.28% 25.10%

Weighted Average Duration

7.51 Years

Monthly Data as of 31-Oct-2020
Indicative Benchmark: Bloomberg Barclays Global Aggregate Corporates Bond USD Hedged Index

Countries

Total
Countries
30
Largest Country United States 61.57% Was (30-Sep-2020) 58.74%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2020

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

Largest Overweight

United States
By6.41%
Fund 61.57%
Indicative Benchmark 55.15%

Largest Underweight

France
By-6.19%
Fund 0.53%
Indicative Benchmark 6.72%

Monthly Data as of 31-Oct-2020

31-Oct-2020 - Steven Boothe, Portfolio Manager,
We continue to favour developed markets given their relative value and fundamentals. In light of this, we are weighted towards U.S. investment grade names, as opposed to Asian or continental European credit. This positioning is based on the view that the asset class has become part of the U.S. Federal Reserve’s policy toolkit for the future.

Currency

Total
Currencies
5
Largest Currency 99.05% Was (30-Sep-2020) 99.27%
Other View completeCurrency Diversification

Monthly Data as of 31-Oct-2020

Indicative Benchmark :

Largest Overweight

U.S. dollar
By 32.76%
Fund 99.05%
Indicative Benchmark 66.29%

Largest Underweight

euro
By -23.91%
Fund 0.14%
Indicative Benchmark 24.05%

Monthly Data as of 31-Oct-2020

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

Team (As of 01-Oct-2020)

Steve 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 22 years of investment experience, 20 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
    21
  • Years investment
    experience
    23

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% 75 basis points 0.92%
Class I $2,500,000 $100,000 $0 0.00% 40 basis points 0.50%
Class Q $1,000 $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.