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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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SICAV

Responsible Global Investment Grade Corporate Bond Fund

Formerly Global Investment Grade Corporate Bond Fund

Seeks to maximise returns through investment in a portfolio of global corporate bonds.

ISIN LU1216623295 Bloomberg TRGIGBI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

6.37%
$35.2m

1YR Return
(View Total Returns)

Manager Tenure

3.28%
6yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.07
2.25%

Inception Date 08-Jun-2015

Performance figures calculated in USD

31-Oct-2021 - Steven Boothe, Portfolio Manager,
We hold a positive outlook for the asset class, underpinned by strong fundamentals and technicals. While there is potential for credit market disruption as stimulus is gradually removed and policy tightening occurs, we believe a strong technical backdrop should be supportive if spreads widen. We are confident that our bottom-up fundamental research can uncover opportunities in a newly dispersed market.
Steve Boothe, CFA
Steve Boothe, CFA, Portfolio Manager

Steve Boothe is the head of Investment Grade and a portfolio manager in the Fixed Income Division. He has lead portfolio management responsibilities for the Global Investment Grade Corporate Bond and US Investment Grade Corporate Bond Strategies. He is a member of the Sector Strategy Advisory Group, with a focus on global and U.S. investment-grade corporate bond portfolios. Steve is a co-president and cochair of the Investment Advisory Committee of the Corporate Income Fund; an executive vice president and Investment Advisory Committee chairman of the Investment-Grade Corporate Multi-Sector Account Portfolio; and a vice president and Investment Advisory Committee member of the Global Multi-Sector Bond, New Income, and Institutional International Disciplined Equity Funds. In addition, he is a vice president of the Institutional Income, International, Global, and China Evolution Equity Funds and an Investment Advisory Committee member of the Institutional Long Duration Credit, Dynamic Credit, and International Disciplined Equity Funds. Steve also is a member of the Fixed Income Steering, Global Trading, and Core/Core Plus Strategy Committees. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

 

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 investment-grade corporate bonds from issuers around the world, including emerging markets.

Investment Approach

  • The investment manager’s approach is based on proprietary fundamental research harvested by our global research platform.
  • The investment process places a strong emphasis on risk management practices and portfolio diversification to manage the overall risk profile.
  • 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

  • Duration is managed within +/- 20% of benchmark
  • Non-Corporate Credit: 0-20%
  • Below Investment Grade: 0-20%, BB- minimum credit quality at time of purchase
  • Holdings: typically 75-150 Issuers

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 3.28% 6.37% 4.33% 4.86% 4.86%
Indicative Benchmark % 1.74% 6.80% 4.50% 4.73% 4.73%
Excess Return % 1.54% -0.43% -0.17% 0.13% 0.13%

Inception Date 08-Jun-2015

Manager Inception Date 08-Jun-2015

Indicative Benchmark: Bloomberg Global Aggregate Corporates Bond USD Hedged Index

Data as of 31-Oct-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 3.81% 6.27% 4.29% 5.00%
Indicative Benchmark % 1.92% 6.53% 4.35% 4.81%
Excess Return % 1.89% -0.26% -0.06% 0.19%

Inception Date 08-Jun-2015

Indicative Benchmark: Bloomberg Global Aggregate Corporates Bond USD Hedged Index

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 % -0.30% -0.73% -0.44% -0.44% -1.31%
Indicative Benchmark % 0.01% -0.07% -0.90% -0.08% -1.27%
Excess Return % -0.31% -0.66% 0.46% -0.36% -0.04%

Inception Date 08-Jun-2015

Indicative Benchmark: Bloomberg Global Aggregate Corporates Bond USD Hedged Index

Indicative Benchmark: Bloomberg Global Aggregate Corporates Bond USD Hedged Index

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.

31-Oct-2021 - Steven Boothe, Portfolio Manager,
Global investment-grade corporate bonds posted negative returns in October. The sector faced several competing pressures during the month, battling government bond market volatility and inflation concerns while being buoyed by strong technical demand. Overall, the portfolio registered negative absolute returns and underperformed its benchmark, the Bloomberg Global Aggregate Corporates Bond USD Hedged Index. Our security selection was the main relative detractor, with holdings in the financials and industrials spaces, in particular, driving relative losses. Our exposure to the natural gas space proved supportive, however. In terms of yield curve management, the portfolio’s underweight duration bias relative to the benchmark weighed on relative performance, and its overall asset allocation also detracted at the margin. By contrast, our exposure to interest rate derivatives, held for hedging purposes, contributed.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 24.31% Was (30-Sep-2021) 23.81%
Other View Top 10 Issuers

Monthly data as of31-Oct-2021

Holdings

Total
Holdings
171
Largest Holding Goldman Sachs 1.70% Was (30-Jun-2021) 1.48%
Top 10 Holdings 13.15%
Other View Full Holdings Quarterly data as of  30-Sep-2021

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB AA
By % 7.35% -4.97%
Fund 8.49% 2.71%
Indicative Benchmark 1.14% 7.68%

Average Credit Quality

BBB+

Monthly Data as of  31-Oct-2021
Indicative Benchmark:  Bloomberg Global Aggregate Corporates Bond USD Hedged Index

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.

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity 7-10 Years 1-3 Years
By % 17.63% -15.81%
Fund 33.70% 4.01%
Indicative Benchmark 16.07% 19.82%

Weighted Average Maturity

9.08 Years

Monthly Data as of  31-Oct-2021
Indicative Benchmark:  Bloomberg Global Aggregate Corporates Bond USD Hedged Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 7-10 Years 1-3 Years
By % 10.74% -17.48%
Fund 25.18% 3.47%
Indicative Benchmark 14.45% 20.95%

Weighted Average Duration

6.77 Years

Monthly Data as of  31-Oct-2021
Indicative Benchmark: Bloomberg Global Aggregate Corporates Bond USD Hedged Index

Countries

Total
Countries
29
Largest Country United States 55.66% Was (30-Sep-2021) 52.10%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: Bloomberg Global Aggregate Corporates Bond USD Hedged Index

Largest Overweight

Qatar
By3.25%
Fund 3.32%
Indicative Benchmark 0.07%

Largest Underweight

France
By-5.72%
Fund 0.75%
Indicative Benchmark 6.47%

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Steven Boothe, Portfolio Manager,
We maintain a preference for developed markets given their relatively more favourable value and fundamentals. Considering this, we are weighted toward U.S. investment-grade names, as opposed to Asian or continental European credit. With valuations at historic tights, we have also added differentiated sources of alpha, including emerging market sovereigns, and have identified opportunities in higher-quality middle eastern names.
30-Apr-2016 - Steven Boothe, Portfolio Manager,
Nearly all of the Fund’s holdings are U.S. dollar-denominated.

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% 75 basis points 0.92%
Class I $2,500,000 $100,000 $0 0.00% 40 basis points 0.50%
Class Q $1,000 $100 $100 0.00% 40 basis points 0.57%

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