SICAV
Diversified Income Bond Fund
Formerly Global Multi-Sector Bond Fund
The fund invests mainly in a diversified portfolio of high yield corporate bonds from issuers around the world, including emerging markets.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(3 Years)
Tracking Error
(3 Years)
Inception Date 15-Dec-2016
Performance figures calculated in USD
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 bonds of all types from issuers around the world, including emerging markets.Investment Approach
- To seek diversified sources of income and return by utilizing the full global opportunity set and managing risk.
- Active tactical allocation across an expanded global opportunity set of 14 fixed income sectors, 80+ countries, and 40+ currencies.
- Best ideas security selection from proprietary global research platform.
- Actively diversify risk across both quantitative risk factors and qualitative investment themes.
- Avoid concentration in any one sector or interest rate cycle.
- Focus on risk-adjusted returns over a medium to long-term horizon.
- Target tracking error range: 100-500 basis points
Portfolio Construction
- Up to 50% of assets may be unhedged to exploit currency valuation opportunities
- 40% of bonds may be invested outside of the U.S.
- High Yield: Max 50%, excluding securitized assets
- Emerging Markets: Max 25% Hard Currency, Max 25% Local Currency
- Portfolio Average Credit Quality: Target Investment Grade
- Duration range: 0 to 8 years
- Number of securities: 200-500
Performance (Class I)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
Since Manager Inception Annualised |
|
|---|---|---|---|---|---|
| Fund % | 3.98% | 4.82% | N/A | 5.74% | 7.65% |
| Indicative Benchmark % | 5.58% | 5.15% | N/A | 4.81% | 7.29% |
| Excess Return % | -1.60% | -0.33% | N/A | 0.93% | 0.36% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 3.98% | 4.82% | N/A | 5.74% |
| Indicative Benchmark % | 5.58% | 5.15% | N/A | 4.81% |
| Excess Return % | -1.60% | -0.33% | N/A | 0.93% |
Recent Performance
| Month to DateData as of 14-Jan-2021 | Quarter to DateData as of 14-Jan-2021 | Year to DateData as of 14-Jan-2021 | 1 MonthData as of 31-Dec-2020 | 3 MonthsData as of 31-Dec-2020 | |
|---|---|---|---|---|---|
| Fund % | -0.08% | -0.08% | -0.08% | 1.13% | 4.16% |
| Indicative Benchmark % | -0.47% | -0.47% | -0.47% | 0.31% | 0.89% |
| Excess Return % | 0.39% | 0.39% | 0.39% | 0.82% | 3.27% |
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.
Holdings
Holdings
Total
Holdings
387
Quality Rating View quality analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Quality Rating | BB | US Government Agency Securities |
| By % | 18.43% | -10.17% |
| Fund | 18.73% | 0.00% |
| Indicative Benchmark | 0.30% | 10.17% |
Average Credit Quality
BBB+Maturity View maturity analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Maturity | 5-7 Years | 10+ Years |
| By % | 6.58% | -9.68% |
| Fund | 19.94% | 16.46% |
| Indicative Benchmark | 13.36% | 26.14% |
Weighted Average Maturity
7.43 YearsDuration View duration analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Duration | 3-5 Years | Over 10 Years |
| By % | 7.86% | -14.72% |
| Fund | 29.19% | 8.85% |
| Indicative Benchmark | 21.34% | 23.57% |
Weighted Average Duration
5.17 YearsSectors
Total
Sectors
7
Largest Overweight
Global High Yield
Largest Underweight
Global Sovereign
Regions
Total
Regions
6
Largest Overweight
North America
Largest Underweight
Japan
Countries
Total
Countries
56
Largest Overweight
United States
Largest Underweight
Japan
Currency
Total
Currencies
24
Largest Overweight
U.S. dollar
Largest Underweight
euro
Team (As of 15-Jan-2021)
Kenneth Orchard is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment team. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Kenneth’s investment experience began in 2003, and he has been with T. Rowe Price since 2010, beginning in the Fixed Income Division, 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. Prior to this, Kenneth was employed by Moody’s Investors Service in the area of sovereign rating methodology. Before that, Kenneth was employed by Emerging Market Economics as a consulting senior economist. Kenneth also was employed by HSBC Asset Management as an assistant portfolio manager.
Kenneth 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. Kenneth also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Fund manager2018
since - Years at10
T. Rowe Price - Years investment17
experience
Terry Moore is a portfolio specialist in the Fixed Income Division. He is a member of the Global Multi-Sector, Dynamic Global Bond, Dynamic Credit Strategy, International Bond, and Customized Fixed Income Solutions teams, working closely with clients, consultants, and prospects. Terry is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Terry’s investment experience began in 1994, and he has been with T. Rowe Price since 2009, beginning in the Fixed Income Division. Prior to this, Terry was employed by Smith Breeden Associates as a portfolio manager and principal, where he led the Financial Institutions Group and managed fixed income portfolios with a focus on residential mortgage-backed securities. He also was employed by Goldman Sachs & Co., where he traded asset-backed securities.
Terry earned a B.A. in economics and political science from the University of North Carolina, Chapel Hill and an M.B.A. from Duke University, The Fuqua School of Business, where he was a Fuqua Scholar. He also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Years at11
T. Rowe Price - Years investment25
experience
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% | 100 basis points | 1.17% |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 50 basis points | 0.60% |
| Class Q | $1,000 | $100 | $100 | 0.00% | 50 basis points | 0.67% |
Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.
Kenneth Orchard is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment team. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.