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Strategy

Global Aggregate Bond

The Global Aggregate Strategy (USD) Bond Composite is comprised of portfolios that seek current income and capital appreciation primarily through investment in fixed income securities issued by governments and other investment grade entities. Below investment grade issues including high yield and emerging debt securities are also permitted. The use of derivatives, including futures and options, is also permitted.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

1.45%
1.05%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

6.37%
0.30

Inception Date 31-May-2006

Performance figures calculated in USD

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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 Approach

  • To generate consistent performance over benchmark by exploiting inefficiencies in the full universe of the global fixed income and currency markets:
    • Focus on successful alpha generation.
    • Importance of effective risk management.
  • Target value added: 100-200 basis points per annum above benchmark over full economic cycle. (Not a formal objective and it can be changed without prior notice.)
  • Target average tracking error: Between 150 basis points and 300 basis points per annum.
  • Alpha generation classified under three main performance activities:
    • Currency Management: 35% Expected contribution to value added
    • Country/Duration Management: 35% Expected contribution to value added
    • Sector Allocation / Issue selection: 30%

Portfolio Construction

  • Currency limit: maximum +/- 40% relative to benchmark
  • Weighted duration limit: maximum +/- 3 years relative to benchmark
  • Sub-investment grade: maximum 20%
  • Above investment grade: not restricted (includes corporates and emerging markets)
  • Portfolio holdings: between 400 and 600 issuers
  • Average credit quality: A- or better

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 58.06% Was (30-Jun-2019) 55.81%
Other View Top 10 Issuers

Monthly data as of 30-Sep-2019

Holdings

Total
Holdings
531
Largest Holding U.S. Treasury Bonds 7.32% Was (30-Jun-2019) 5.17%
Top 10 Holdings 32.89%
Other View Full Holdings Quarterly data as of 30-Sep-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating Below Investment Grade A
By % 5.93% -9.73%
Portfolio 6.44% 15.32%
Benchmark 0.51% 25.05%

Average Credit Quality

AA-

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

Sources: Moody's Investors Service; if Moody's does not rate a security, then Standard & Poor's (S&P) is used as a secondary source. When available, T. Rowe Price will use Fitch for securities that are not rated by Moody’s or S&P. T. Rowe Price does not evaluate these ratings, but simply assigns them to the appropriate credit quality category as determined by the rating agency. 

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity 10+ Years 1-3 Years
By % 5.93% -8.77%
Portfolio 31.18% 14.56%
Benchmark 25.25% 23.33%

Weighted Average Maturity

10.94 Years

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

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 7-10 Years 1-3 Years
By % 3.90% -12.21%
Portfolio 16.34% 17.39%
Benchmark 12.45% 29.60%

Weighted Average Duration

7.92 Years

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

Sectors

Total
Sectors
6
Largest Sector Government 65.52% Was (30-Jun-2019) 64.84%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2019

Benchmark: Bloomberg Barclays Global Aggregate Bond Index

Largest Overweight

Government
By7.01%
Portfolio 65.52%
Benchmark 58.51%

Largest Underweight

Agency/Supranationals
By-7.81%
Portfolio 0.33%
Benchmark 8.14%

Monthly Data as of 30-Sep-2019

Countries

Total
Countries
48
Largest Country United States 34.52% Was (30-Jun-2019) 38.80%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Benchmark: Bloomberg Barclays Global Aggregate Bond Index

Largest Overweight

United Kingdom
By7.54%
Portfolio 12.57%
Benchmark 5.02%

Largest Underweight

Japan
By-8.10%
Portfolio 8.39%
Benchmark 16.50%

Monthly Data as of 30-Sep-2019

Currency

Total
Currencies
32
Largest Currency U.S. dollar 46.49% Was (30-Jun-2019) 42.67%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2019

Benchmark : Bloomberg Barclays Global Aggregate Bond Index

Largest Overweight

Israeli shekel
By 1.54%
Portfolio 1.67%
Benchmark 0.13%

Largest Underweight

Offshore Chinese renminbi
By -3.27%
Portfolio -3.27%
Benchmark 0.00%

Monthly Data as of 30-Sep-2019

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.

  • Portfolio manager
    since
    2014
  • Years at
    T. Rowe Price
    6
  • Years investment
    experience
    23
Quentin S. Fitzsimmons

Quentin Fitzsimmons is a senior portfolio manager in the Fixed Income Division of T. Rowe Price and a member of the global fixed income investment team. He is co-portfolio manager for the Global Aggregate Bond Strategy. He is actively involved in the discussion around country and duration positioning, currency management and sector allocation, with a particular expertise in interest rate management.

Mr. Fitzsimmons has 28 years of investment experience, four of which have been with T. Rowe Price. Prior to joining the firm in 2015, Mr. Fitzsimmons was head of liquidity portfolio investment management, Treasury markets, for the Royal Bank of Scotland Group, where he managed the liquid fixed income "tier one" capital on its balance sheet on an absolute return basis. Previously, he also worked as head of rates and as executive director of fixed income for Threadneedle Investments, where he ran global fixed income portfolios from 2002 to 2012. Prior to Threadneedle he held various fixed income portfolio management and research roles with F&C Investments, the Equitable Life Assurance Society and Sun Life Assurance Company of Canada.

Mr. Fitzsimmons earned a B.Sc. in economics and economic history from the University of Bristol.

  • Portfolio manager
    since
    2015
  • Years at
    T. Rowe Price
    4
  • Years investment
    experience
    28
Steven C.  Huber

Steve Huber is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Huber has lead portfolio management responsibilities for the Global and Institutional Global Multi-Sector Bond Strategies. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Huber has 31 years of investment experience, 11 of which have been at T. Rowe Price. Prior to joining the firm in 2006, he was chief investment officer for the Maryland State Retirement and Pension System. Prior to that, Mr. Huber spent over 15 years in money management as a director of fixed income, director of asset allocation/quantitative strategy, and portfolio manager with Aeltus Investment Management. He also served as an actuarial assistant with pension consulting firm William Mercer, Inc.

Mr. Huber earned a B.S. in mathematics from Virginia Tech and an M.B.A. from the University of North Carolina at Chapel Hill. He is a member of Phi Beta Kappa and is a Fellow of the Society of Actuaries. Mr. Huber also has earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    2014
  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    32
Ju Yen  Tan

Ju Yen Tan is a senior portfolio manager in the Fixed Income Division at T. Rowe Price and a member of the Global Fixed Income Investment Team, with a specific responsibility for leading the dollar bloc research. Since joining the firm in 2004, he has led the application of the risk and attribution analysis in global/international fixed income portfolios. He also chairs the T. Rowe Price Foreign Exchange Governance Committee. Mr. Tan is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Tan has 23 years of investment experience, 15 of which have been with T. Rowe Price. Before joining the firm, he was a global fixed income and currency manager at WestLB Asset Management (WestAM). Prior to joining WestAM, Mr. Tan spent five years with Rothschild Asset Management in the fixed income and currency group.

Mr. Tan has an M.Eng. in engineering, economics and management from Oxford University.

  • Portfolio manager
    since
    2014
  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    23
Kenneth A.  Orchard

Kenneth Orchard is a senior portfolio manager in the Fixed Income Division of T. Rowe Price and a member of the Global Fixed Income Investment team, with responsibility for cochairing the Fixed Income Sector Strategy Advisory Group . He is the portfolio manager for the Global Multi-Sector Bond and Diversified Income Bond Strategies and co-portfolio manager for the International Bond Strategies . He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Orchard has 15 years of investment experience, eight of which have been with T. Rowe Price. Prior to joining the firm in 2010, he worked as a senior credit officer for the Sovereign Risk Group at Moody's Investors Service, where he helped design and review its sovereign rating methodology. Mr. Orchard also worked as a senior economist for Emerging Market Economics in London and as an assistant portfolio manager for HSBC Asset Management in Vancouver.

Mr. Orchard earned a B.A. in international relations from the University of British Columbia and an M.Sc. in public financial policy from the London School of Economics. He also has earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    2014
  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    16
Andrew Keirle

Andrew Keirle is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment Team. Mr. Keirle is the lead portfolio manager for the Emerging Markets Local Currency Bond Strategy and has important input on a number of emerging markets bond strategies and global fixed income strategies. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Keirle has 23 years of investment experience, 14 of which have been with T. Rowe Price. Prior to joining the firm in 2005, he was a portfolio manager and analyst at Lazard Asset Management. Prior to joining Lazard, Mr. Keirle spent seven years as a global portfolio manager at Gulf International Bank in London.

Mr. Keirle is a qualified member of the Institute of Investment Management and Research, and he also holds a diploma from the Society of Technical Analysts. He graduated with a B.Sc. in economics and politics from the University of Swansea at the University of Wales.

  • Portfolio manager
    since
    2015
  • Years at
    T. Rowe Price
    14
  • 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
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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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