Download

Audience for the document: Share Class: Language of the document:

Download

Share Class: Language of the document:

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

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

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest

Please enter valid search characters

SICAV

Emerging Local Markets Bond Fund

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

ISIN LU1629937985 Bloomberg TRPELBI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

2.84%
$143.2m

1YR Return
(View Total Returns)

Manager Tenure

-1.83%
4yrs

Information Ratio
(3 Years)

Tracking Error
(3 Years)

0.30
1.99%

Inception Date 16-Jun-2017

Performance figures calculated in EUR

31-Dec-2021 - Andrew Keirle, Portfolio Manager,
We remain constructive on emerging market (EM) local assets due to attractive valuations and favourable technical factors. That said, we are mindful of near-term headwinds, including the omicron variant and inflation. However, early indications of the variant being less severe than initially thought boosts 2022 global growth forecasts, which should be supportive for EM’s.
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.

 

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 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

Regions

Total
Regions
5
Largest Region Asia 34.95% Was (30-Nov-2021) 35.94%
Other View complete Region Diversification

Monthly Data as of 31-Dec-2021

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

Largest Overweight

Other
By4.86%
Fund 4.86%
Indicative Benchmark 0.00%

Largest Underweight

Emerging Europe
By-10.61%
Fund 16.41%
Indicative Benchmark 27.03%

Monthly Data as of 31-Dec-2021

Countries

Total
Countries
31
Largest Country China 11.21% Was (30-Nov-2021) 11.93%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2021

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

Largest Overweight

United States
By4.13%
Fund 4.13%
Indicative Benchmark 0.00%

Largest Underweight

Poland
By-5.82%
Fund 1.36%
Indicative Benchmark 7.18%

Monthly Data as of 31-Dec-2021

31-Dec-2021 - Andrew Keirle, Portfolio Manager,
We reduced the portfolio’s duration position in December but remain modestly long. We moved further underweight Central and Eastern Europe (CEE) on expensive valuations and reduced an overweight to Russia given heightened geopolitical risks and scope for tighter monetary policy. We also reduced exposure to Brazil and Mexico given fiscal concerns and our expectations of faster rate hikes, respectively. However, we remained cognisant of the potential for core rates to rise and kept defensive short positions in U.S. Treasuries and German Bunds.
31-Dec-2021 - Andrew Keirle, Portfolio Manager,
We hold a constructive, albeit reduced, view towards EM currencies, which remain principally funded by a basket of developed market currencies, most notably the U.S. dollar and euro. However, given market consensus for a stronger greenback, we reduced our short position in the dollar. Elsewhere, we added selectively to our overweight allocation to CEE to generate carry and remained overweight Latin America where we expect relatively faster hiking cycles. However, we moved underweight the Mexican peso due to concerns over central bank independence.