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Strategy

Euro Corporate Bond

The Euro Corporate Bond Composite seeks current income and capital appreciation primarily through investment in corporate fixed income securities denominated in Euros. The strategy may invest in preferred stock and other transferable debt securities including those issued by the governments of countries participating in the Euro.

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

Tracking Error
(5 Years)

2.89%
0.81%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

4.79%
0.65

Inception Date 31-Jul-2001

Performance figures calculated in EUR

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David Stanley
David Stanley, Portfolio Manager

David Stanley is a portfolio manager in the Fixed Income Division at T. Rowe Price, responsible for European corporate bond selection. Mr. Stanley is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

 

Valuations and performance are computed in USD and converted to EUR. When converting U.S. Dollar composite returns, benchmarks, dispersion and asset data, the same exchange rate source is used consistently. Total returns in non-U.S. Dollar currencies are calculated by adjusting U.S. Dollar performance by the percent change in the U.S. Dollar/foreign currency exchange rate (as determined by an independent third party) for the time periods selected. Net of fees performance is calculated using the currency-converted gross performance and then deducting the highest applicable EUR fee without the benefit of breakpoints. 

Strategy

Investment Approach

  • Focus primarily on corporate bonds denominated in euros.
  • Integrate proprietary credit and capital markets research to identify market inefficiencies.
  • Add value primarily through individual security selection, sector rotation and term-structure positioning.
  • Credit research is the most important element of our corporate bond process and includes credit analysis and relative value assessment.
  • Risk management is central to our process with diversification by issuer and industry the most important elements in our approach to risk management.

Portfolio Construction

  • Fully hedged back to euro
  • Duration is maintained within a range of +/- 0.25 of a year from the benchmark
  • Diversified sector exposure
  • Maximum 3% overweight per issuer
  • Maximum of 20% of the portfolio can be invested in non-investment grade issues
  • Average tracking error expected to range between 100 and 150 bps per annum

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 18.44% Was (31-Mar-2019) 17.97%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2019

Holdings

Total
Holdings
210
Largest Holding Tele2 1.40% Was (31-Mar-2019) 0.55%
Top 10 Holdings 10.31%
Other View Full Holdings Quarterly data as of 30-Jun-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BBB A
By % 11.92% -18.14%
Portfolio 61.98% 18.88%
Benchmark 50.06% 37.01%

Average Credit Quality

BBB+

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays Euro-Aggregate: Corporates Bond Index EUR

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. 

U.S. Treasury securities are issued by the U.S. Treasury and are backed by the full faith and credit of the U.S. government. The ratings of U.S. Treasury securities are derived from the ratings on the U.S. government. 

Maturity View maturity analysis

  Largest Overweight
Maturity 3-5 Years
By % 25.50%
Portfolio 25.50%
Benchmark 0.00%

Weighted Average Maturity

5.37 Years

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays Euro-Aggregate: Corporates Bond Index EUR

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Under 1 Year 1-3 Years
By % 3.64% -3.20%
Portfolio 3.98% 22.40%
Benchmark 0.34% 25.60%

Weighted Average Duration

N/A

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays Euro-Aggregate: Corporates Bond Index EUR

Sectors

Total
Sectors
4
Largest Sector Corporate 92.37% Was (31-Mar-2019) 89.27%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2019

Benchmark: Bloomberg Barclays Euro-Aggregate: Corporates Bond Index EUR

Largest Overweight

Sub Investment Grade
By3.69%
Portfolio 3.69%
Benchmark 0.00%

Largest Underweight

Corporate
By-7.63%
Portfolio 92.37%
Benchmark 100.00%

Monthly Data as of 30-Jun-2019

Team (As of 31-Aug-2019)

David Stanley

David Stanley is a portfolio manager in the Fixed Income Division at T. Rowe Price, responsible for European corporate bond selection. Mr. Stanley is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Stanley has 32 years of investment experience, 16 of which have been at T. Rowe Price. Prior to joining the London team in 2003, he was employed by Bank of America Capital Management, where he was a director and portfolio manager responsible for the analysis of international corporate bonds and cash investments. Prior to working for Bank of America, Mr. Stanley was employed for eight years in Morgan Stanley Asset Management's London office, where he served as a fixed income fund manager responsible for international corporate bonds.

Mr. Stanley earned a B.A. in economics and social studies from the University of Manchester.

  • Portfolio manager
    since
    2002
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    32
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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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