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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

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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Emerging Local Markets Bond Fund

Research-driven investment in emerging market local currency sovereign bonds.

ISIN LU0310189781 Bloomberg TRPELMI:LX

3YR Return Annualised
(View Total Returns)

Total Assets


1YR Return
(View Total Returns)

Manager Tenure


Information Ratio
(5 Years)

Tracking Error
(5 Years)


Inception Date 09-Aug-2007

Performance figures calculated in USD

31-Oct-2021 - Andrew Keirle, Portfolio Manager,
Emerging markets (EMs)face several near-term headwinds, including fiscal imbalances, U.S. debt ceiling concerns, and shifting central bank policies. Energy market conditions and the outlook in China are additional concerns. However, we believe the worst could be behind us soon, which could open up a more constructive outlook toward year-end and into 2022.
Andrew Keirle
Andrew Keirle, Portfolio Manager

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.

Click for Manager Outlook


Manager's Outlook

After rebounding in the second quarter, EM local debt retreated through the third quarter as global growth expectations deteriorated given the Federal Reserve's hawkish tilt, uncertainty over the delta coronavirus variant, and the anticipated slowdown in China. Furthermore, emerging market countries continued to lag in the vaccine rollout relative to developed markets, which weighed on EM fundamentals.

Going forward, however, we expect some of these headwinds to fade once the Chinese economy stabilizes and vaccinations in EM countries catches up to developed markets, potentially allowing for a broad improvement in EM growth over the medium term.

Growth recoveries are also slowing in some developed markets�as inflation pressures build and�the�monetary�policy trajectory is�now�less accommodative for growth. On the other hand, while global liquidity conditions are becoming less accommodative, many EM central banks have already begun tightening their policies, which should act as a buffer when the U.S. begins its muchly anticipated policy tightening and tapering process.

In terms of valuations, we believe the relative value of emerging markets local debt and currencies versus other developed markets is still compelling. The recent fall in growth expectations due to concerns over China's macroeconomic and regulatory outlook have also led to more appropriate market pricing, which should better support a distribution of potential growth outcomes in the future, in our view.

Overall, given our constructive outlook on the asset class, emerging markets with stronger balance sheets and medium-term growth prospects are likely to outperform. We also remain mindful of further bouts of volatility; therefore, the importance of security selection and active management remains imperative.

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 emerging market issuers, with a focus on bonds that are denominated in the local currency.

Investment Approach

  • Focus primarily on sovereign debt denominated in the currencies of the respective emerging countries.
  • Integrate proprietary credit research and relative value analysis.
  • Establish independent credit rating by country.
  • Add value through active country, currency and individual security selection decisions.
  • Limit risk through diversification.
  • Employ long-term investment horizon combined with low portfolio turnover.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

Portfolio Construction

  • Higher concentration portfolio structure: typically 100-150 securities
  • Duration bands: managed within +/- 2 years of the benchmark
  • Average Credit Quality: BBB
  • Country exposure maximum 30% per country
  • Target tracking error: 200-400 bps

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % 1.77% 4.45% 2.21% 0.54% -0.23%
Indicative Benchmark % 0.84% 3.89% 1.96% 0.37% -0.37%
Excess Return % 0.93% 0.56% 0.25% 0.17% 0.14%

Inception Date 09-Aug-2007

Manager Inception Date 31-Oct-2012

Indicative Benchmark: Linked Benchmark

Data as of 31-Oct-2021

Performance figures calculated in USD

  1 YR 3 YR
5 YR
10 YR
Fund % 3.87% 4.05% 2.36% 1.31%
Indicative Benchmark % 2.63% 3.66% 2.06% 1.05%
Excess Return % 1.24% 0.39% 0.30% 0.26%

Inception Date 09-Aug-2007

Indicative Benchmark: Linked Benchmark

Data as of 30-Sep-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 26-Nov-2021 Quarter to DateData as of 26-Nov-2021 Year to DateData as of 26-Nov-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % -3.69% -4.80% -11.51% -1.15% -4.30%
Indicative Benchmark % -3.33% -4.61% -10.69% -1.33% -3.98%
Excess Return % -0.36% -0.19% -0.82% 0.18% -0.32%

Inception Date 09-Aug-2007

Indicative Benchmark: Linked Benchmark

Indicative Benchmark: Linked Benchmark

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.

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

Effective 1 January 2011, the benchmark for the sub-fund was changed to J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified. Prior to 1 January 2011, the benchmark was the J.P. Morgan Government Bond Index-Emerging Markets Broad Diversified Index. The benchmark change was made because the firm viewed the new benchmark to be a better representation of the investment strategy of the sub-fund. Historical benchmark representations have not been restated.

31-Oct-2021 - Andrew Keirle, Portfolio Manager,
EM local currency bonds generated a negative return in October, primarily due to falling bond prices and rising core rates. At the portfolio level, our currency selection contributed while our bond allocation added modest gains. Several of our currency exposures were supportive, led by our overweight position to the Russian ruble, which benefited from rising oil prices. Our off-benchmark exposures to the Egyptian pound and Ukrainian hryvnia also added. Elsewhere, a short position in the Japanese yen supported performance given Japan’s relatively dovish policy stance while other central banks turned hawkish. In country and duration positioning, a surprise rate hike in Poland after inflation reached a 20-year high notably supported our underweight position. By contrast, inflationary pressures and rate hikes in Russia and Brazil dragged on our overweight duration exposures to the two countries.



Top 10 Issuers 71.47% Was (30-Sep-2021) 68.40%
Other View Top 10 Issuers

Monthly data as of31-Oct-2021


Largest Holding Brazil Notas do Tesouro Nacional Serie F 4.50% Was (30-Jun-2021) 5.22%
Top 10 Holdings 27.95%
Other View Full Holdings Quarterly data as of  30-Sep-2021

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BBB US Treasury
By % 43.93% 0.00%
Fund 43.93% 0.00%
Indicative Benchmark 0.00% 0.00%

Average Credit Quality


Monthly Data as of  31-Oct-2021
Indicative Benchmark:  J.P. Morgan GBI - EM Global Diversified

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.

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 5-7 Years 1-3 Years
By % 5.41% -9.39%
Fund 25.28% 16.16%
Indicative Benchmark 19.88% 25.55%

Weighted Average Duration

4.48 Years

Monthly Data as of  31-Oct-2021
Indicative Benchmark: J.P. Morgan GBI - EM Global Diversified

30-Sep-2021 - Andrew Keirle, Portfolio Manager,

We ended the quarter underweight duration relative to the benchmark given the near-term headwinds alluded to above. We added to our defensive short positions to core developed market bonds given the rising yield environment. Simultaneously, we reduced our exposure to select markets (e.g., South Africa) due to the deteriorating global backdrop. Elsewhere, we continued to hold a positive view on EM FX, albeit slightly reduced, primarily focused on countries with stronger local growth prospects and currencies that we believe hold attractive relative value. These positions continue to be principally funded by a basket of developed market currencies, most notably the U.S. dollar and the euro.

Bond Allocation

  • We increased our defensive short positions in core markets, primarily U.S. Treasuries and German bunds, as we remained wary of yield curves steepening on tapering concerns.
  • We reduced our overweight to Asia. In particular, we removed our overweight in Malaysia, while we reduced our overweight to Indonesia as we saw less potential for the bonds to rally further.
  • We also retained an overall overweight exposure to Latin America, focused in Brazil and Mexico, on the basis of attractive relative value.
  • We also reduced our overweight to South Africa given the deteriorating global backdrop.
  • We retained our underweight to central and Eastern Europe given our constructive growth outlook and expectation for inflation to stay elevated in the region.
  • The depth of our research process allows us to evaluate markets that are outside the benchmark in our search for value. Accordingly, we maintained off-benchmark positions in Egypt, Ukraine, and India while opening a new position in Zambia.

Currency Selection

  • We retained our overweight exposure to currencies in emerging Europe. This included the Russian ruble, where we felt valuations were attractive. We also retained our overweight positions to the Czech koruna and Hungarian forint based on our constructive outlook and the potential for further rate hikes in both countries.
  • In contrast, we closed an overweight to the Turkish lira on a valuation basis.
  • We also remained overweight Latin American currencies, primarily via the Mexican and Chilean peso. However, it's important to note that we trimmed our overweight to the Chilean peso slightly due to growing event risks from further pension withdrawals and the upcoming presidential election.
  • We shifted to an underweight in Asia, driven in part by closing the overweight position in the Malaysian ringgit on the basis of its trade surplus having peaked. We also closed our overweight position in the Philippine peso.
  • We continued to hedge some of our EM currency risk through short positions in select currencies, including the Taiwanese dollar, Japanese yen, and Swiss franc.
  • The breadth of our research process also allows us to evaluate currencies outside the benchmark where we see attractive opportunities. Accordingly, we held off-benchmark currency exposures to Ukraine, Egypt, Kazakhstan, Zambia, and India.


Largest Sector Sovereign 92.29% Was (30-Sep-2021) 89.08%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: J.P. Morgan GBI - EM Global Diversified

Largest Overweight

Fund 4.88%
Indicative Benchmark 0.00%

Largest Underweight

Fund 92.29%
Indicative Benchmark 100.00%

Monthly Data as of 31-Oct-2021

30-Nov-2015 - Andrew Keirle, Portfolio Manager,
We maintain off-benchmark allocations to selected U.S. dollar-denominated and euro-denominated sovereign and quasi-sovereign bonds that hold attractive relative value.


Largest Region Asia 35.38% Was (30-Sep-2021) 34.47%
Other View complete Region Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: J.P. Morgan GBI - EM Global Diversified

Largest Overweight

Middle East & Africa
Fund 14.04%
Indicative Benchmark 8.15%

Largest Underweight

Emerging Europe
Fund 19.19%
Indicative Benchmark 28.39%

Monthly Data as of 31-Oct-2021


Largest Country China 11.56% Was (30-Sep-2021) 11.01%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: J.P. Morgan GBI - EM Global Diversified

Largest Overweight

Fund 3.66%
Indicative Benchmark 0.00%

Largest Underweight

Fund 0.90%
Indicative Benchmark 7.52%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Andrew Keirle, Portfolio Manager,
The portfolio remained relatively underweight duration given near-term headwinds. Cognisant of rate volatility, we retained defensive short positions in core markets – primarily U.S. Treasuries and German Bunds. We also remained underweight Central and Eastern Europe given our constructive growth outlook. However, we kept our marginal overweight to Latin America, where we added to Peru given our expectations for reduced political risks. Elsewhere, we increased our overweight to South Africa as we expect a less aggressive hiking cycle than indicated in market pricing.
31-Oct-2021 - Andrew Keirle, Portfolio Manager,
We retained a positive, albeit slightly reduced, bias toward EM currencies, while using a basket of developed market currencies, most notably the U.S. dollar and euro, as funding for more attractive opportunities. We remained overweight currencies in emerging Europe, such as the Russian rouble and Hungarian forint, which could benefit from improving fiscal balances and stronger growth prospects respectively. We also remained overweight Latin America, however we closed our overweight position in the Chilean peso due to political concerns.

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 I $2,500,000 $100,000 $0 0.00% 65 basis points 0.75%
Class Q $1,000 $100 $100 0.00% 65 basis points 0.82%
Class Sd $10,000,000 $0 $0 0.00% 0 basis points 0.10%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.