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Strategy

Emerging Markets Local Currency Bond

The Emerging Markets Local Currency Bond Composite seeks to maximize total return by investing primarily in a widely diversified, global portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supra-national and corporate issuers established, or conducting the predominant part of their business activity, in the economically emerging countries of Latin America, Asia, Europe, Africa and the Middle East. The composite's emphasis will be on investing in securities denominated in the currencies of the respective emerging countries.

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

Tracking Error
(5 Years)

4.89%
1.04%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

9.07%
0.74

Inception Date 30-Sep-2007

Performance figures calculated in USD

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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 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.

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

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 63.85% Was (31-Mar-2019) 65.96%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2019

Holdings

Total
Holdings
157
Largest Holding Republic of South Africa Government Bond 4.12% Was (31-Mar-2019) 5.40%
Top 10 Holdings 30.65%
Other View Full Holdings Quarterly data as of 30-Jun-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating B A
By % 5.85% -6.71%
Portfolio 7.37% 26.26%
Benchmark 1.52% 32.97%

Average Credit Quality

BBB

Monthly Data as of 30-Jun-2019
Benchmark:  J.P. Morgan GBI - EM Global Diversified

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. government agency securities are issued or guaranteed by a U.S. government agency and may include conventional pass-through securities and collateralized mortgage obligations. Unlike Treasuries, government agency securities are not issued directly by the U.S. government and are generally unrated but may have credit support from the U.S. Treasury (e.g., FHLMC and FNMA issues) or a direct government guarantee (e.g., GNMA issues). Therefore, this category may include rated and unrated securities. 

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. 

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 5-7 Years 1-3 Years
By % 8.98% -10.93%
Portfolio 31.09% 15.66%
Benchmark 22.11% 26.59%

Weighted Average Duration

5.66 Years

Monthly Data as of 30-Jun-2019
Benchmark:  J.P. Morgan GBI - EM Global Diversified

Sectors

Total
Sectors
6
Largest Sector Sovereign 92.97% Was (31-Mar-2019) 94.78%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2019

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

Largest Overweight

Reserves
By3.28%
Portfolio 3.28%
Benchmark 0.00%

Largest Underweight

Sovereign
By-7.03%
Portfolio 92.97%
Benchmark 100.00%

Monthly Data as of 30-Jun-2019

Regions

Total
Regions
5
Largest Region Latin America 30.60% Was (31-Mar-2019) 32.14%
Other View complete Region Diversification

Monthly Data as of 30-Jun-2019

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

Largest Overweight

Asia
By5.27%
Portfolio 30.07%
Benchmark 24.80%

Largest Underweight

Emerging Europe
By-10.42%
Portfolio 21.36%
Benchmark 31.78%

Monthly Data as of 30-Jun-2019

Countries

Total
Countries
28
Largest Country South Africa 10.73% Was (31-Mar-2019) 11.01%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2019

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

Largest Overweight

India
By3.68%
Portfolio 3.68%
Benchmark 0.00%

Largest Underweight

Poland
By-6.10%
Portfolio 2.83%
Benchmark 8.92%

Monthly Data as of 30-Jun-2019

Currency

Total
Currencies
32
Largest Currency Brazilian real 11.57% Was (31-Mar-2019) 11.42%
Other View complete Currency Diversification

Monthly Data as of 30-Jun-2019

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

Largest Overweight

Philippine peso
By 2.48%
Portfolio 2.77%
Benchmark 0.29%

Largest Underweight

U.S. dollar
By -7.14%
Portfolio -7.14%
Benchmark 0.00%

Monthly Data as of 30-Jun-2019

Team (As of 07-Feb-2019)

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 22 years of investment experience, 13 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.

  • Portfolio manager
    since
    2011
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    23
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.

  • Years at
    T. Rowe Price
    31
  • Years investment
    experience
    31
Samy Muaddi

Samy Muaddi is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Muaddi is lead manager of T. Rowe Price's Emerging Markets Corporate Bond Strategy. He 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 at 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.

  • 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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