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Strategy

Emerging Markets Bond

The Emerging Markets Bond Composite seeks current income and capital appreciation primarily through investment in fixed income securities issued by emerging nations. The strategy may invest in low rated bonds, including those in default, when market conditions warrant. Absolute weightings in the Emerging Markets Bond Composite will generally be higher in the larger markets of Brazil, Mexico, and Russia than absolute weightings in the Emerging Markets Diversified Bond Composite.

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

Tracking Error
(5 Years)

2.68%
2.34%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

6.19%
0.05

Inception Date 31-Dec-1995

Performance figures calculated in USD

Other Literature

Michael J.  Conelius
Michael J. Conelius, Portfolio Manager

Michael Conelius is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Conelius is lead manager of T. Rowe Price's Emerging Markets Bond Strategy. He is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price International Ltd.

 

Strategy

Investment Approach

  • Focus primarily on sovereign debt, with smaller strategic allocations to corporate and local currency debt.
  • Integrate proprietary credit research and relative value analysis.
  • Establish independent credit rating at the country and corporate issuer level.
  • Add value through active country allocation and individual security selection decisions.
  • Limit risk through diversification.
  • Employ long-term investment horizon.

Portfolio Construction

  • Diversified portfolio structure: typically400-500 issuers
  • Duration bands: managed within +/- 1 year of the benchmark
  • Average credit quality: BB
  • Country exposure will range between 0% and a max of 10% over the benchmark
  • Expected tracking error should range between 200-400 bps

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 44.39% Was (30-Jun-2019) 45.06%
Other View Top 10 Issuers

Monthly data as of 30-Sep-2019

Holdings

Total
Holdings
419
Largest Holding Petrobras Global Finance BV 3.44% Was (30-Jun-2019) 3.19%
Top 10 Holdings 21.51%
Other View Full Holdings Quarterly data as of 30-Sep-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating B A
By % 13.65% -18.09%
Portfolio 33.56% 5.31%
Benchmark 19.91% 23.40%

Average Credit Quality

BB-

Monthly Data as of 30-Sep-2019
Benchmark:  J.P. Morgan Emerging Markets Bond Index Global

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 Largest Underweight
Maturity 5-7 Years 3-5 Years
By % 6.54% -8.04%
Portfolio 19.59% 8.85%
Benchmark 13.05% 16.89%

Weighted Average Maturity

11.77 Years

Monthly Data as of 30-Sep-2019
Benchmark:  J.P. Morgan Emerging Markets Bond Index Global

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 5-7 Years 1-3 Years
By % 10.00% -6.58%
Portfolio 30.57% 7.57%
Benchmark 20.58% 14.15%

Weighted Average Duration

7.71 Years

Monthly Data as of 30-Sep-2019
Benchmark:  J.P. Morgan Emerging Markets Bond Index Global

Regions

Total
Regions
5
Largest Region Latin America 44.77% Was (30-Jun-2019) 46.20%
Other View complete Region Diversification

Monthly Data as of 30-Sep-2019

Benchmark: J.P. Morgan Emerging Markets Bond Index Global

Largest Overweight

Latin America
By13.25%
Portfolio 44.77%
Benchmark 31.52%

Largest Underweight

Middle East & Africa
By-8.28%
Portfolio 18.45%
Benchmark 26.73%

Monthly Data as of 30-Sep-2019

Countries

Total
Countries
65
Largest Country Mexico 12.64% Was (30-Jun-2019) 11.10%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Benchmark: J.P. Morgan Emerging Markets Bond Index Global

Largest Overweight

Brazil
By7.93%
Portfolio 11.44%
Benchmark 3.50%

Largest Underweight

Saudi Arabia
By-6.27%
Portfolio 0.31%
Benchmark 6.58%

Monthly Data as of 30-Sep-2019

Currency

Total
Currencies
21
Largest Currency U.S. dollar 99.83% Was (30-Jun-2019) 97.62%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2019

Benchmark : J.P. Morgan Emerging Markets Bond Index Global

Largest Overweight

Serbia dinar
By 0.30%
Portfolio 0.30%
Benchmark 0.00%

Largest Underweight

Chilean peso
By -0.70%
Portfolio -0.70%
Benchmark 0.00%

Monthly Data as of 30-Sep-2019

Team (As of 31-Aug-2019)

Michael J.  Conelius

Michael Conelius is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Conelius is lead manager of T. Rowe Price's Emerging Markets Bond Strategy. He is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price International Ltd.

Mr. Conelius has 31 years of investment experience, all of them at T. Rowe Price. Prior to joining the firm in 1988, he was a consultant for Booz Allen Hamilton.

Mr. Conelius earned a B.S. in finance from Towson University and an M.S. in finance from Loyola University Maryland. Mr. Conelius has also earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    1994
  • Years at
    T. Rowe Price
    31
  • Years investment
    experience
    31
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.

  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    23
Samy Muaddi

Samy Muaddi is a portfolio manager in the Fixed Income Division of T. Rowe Price. Mr. Muaddi is the lead manager and executive vice president of the Emerging Markets Corporate Bond Strategy and chairman of the strategy's Investment Advisory Committee. He also manages the Asia Credit Strategy and is co-portfolio manager of the Global High Income Strategy. Mr. Muaddi is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Muaddi has 13 years of investment experience, all of which have been with T. Rowe Price. He joined the firm in 2006.

Mr. Muaddi earned a B.A., summa cum laude, in economics from the University of Maryland. He also has earned the Chartered Financial Analyst designation. Mr. Muaddi is an adjunct professor at Georgetown University in the Walsh Graduate School of Foreign Service.

  • Portfolio manager
    since
    2013
  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    13
Benjamin Robins, CFA

Ben Robins is a portfolio specialist in the Fixed Income Division at T. Rowe Price. He supports our emerging market debt strategies, which includes hard currency- and local currency-denominated sovereign and corporate debt, working closely with clients, consultants, and prospects. Mr. Robins is a vice president of T. Rowe Price Associates, Inc.

Mr. Robins has 17 years of investment experience. Prior to joining the firm in 2016, he worked as a senior investment consultant at Cambridge Associates, which included client relationship management and fixed income manager research. Prior to that, Mr. Robins worked in investments at Lehman Brothers.

Mr. Robins earned a B.A. in economics, with honors, from the College of William & Mary and an M.B.A. from the Tuck School of Business at Dartmouth. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    3
  • Years investment
    experience
    19
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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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