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Strategy

Global Multi-Sector Bond

The Global Multi-Sector Bond Composite seeks high income and some capital appreciation primarily through investment in sectors and securities within the Bloomberg Barclays Global Aggregate Bond USD Hedged Index. The strategy may also invest in bank loans, non-agency MBS, and convertible bonds.

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

Tracking Error
(5 Years)

4.94%
2.11%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

8.86%
0.36

Inception Date 31-Dec-2008

Performance figures calculated in USD

Other Literature

Kenneth A.  Orchard
Kenneth A. Orchard, Lead Portfolio Manager

Kenneth Orchard is a senior portfolio manager in the Fixed Income Division of T. Rowe Price and a member of the Global Fixed Income Investment team, with responsibility for cochairing the Fixed Income Sector Strategy Advisory Group . He is the portfolio manager for the Global Multi-Sector Bond and Diversified Income Bond Strategies and co-portfolio manager for the International Bond Strategies . He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

 

Strategy

Investment Approach

  • Designed to generate alpha through effective combination of top-down sector allocation, currency positioning, and interest rate management with high-conviction, bottom-up security selection from our specialized global research platform.
  • Flexible investment mandate seeks to increase the potential for excess return in a diversified, multi-sector portfolio by tactically allocating across a global opportunity set of 15 sectors, including below-investment grade and non-U.S. dollar-denominated securities.
  • Actively diversify risk across both quantitative risk factors and qualitative investment themes
  • Our Global Multi-Sector Bond Strategy offers flexibility to incorporate a wide range of strategy designs and customized benchmarks, including both total return and flexible duration mandates.

Portfolio Construction

  • Base strategy target excess return: 200-300 basis points above the benchmark over a full market cycle. (Not a formal objective and it can be changed without prior notice.)
  • Base strategy target tracking error range: 200-500 basis points
  • Up to 50% of assets may be unhedged to exploit currency valuation opportunities Profile can be tailored to specific client risk tolerances
  • Benchmark Details
    • Base strategy: Bloomberg Barclays Global Aggregate USD Hedged Index
    • Ability to create custom benchmarks in a variety of base currencies and flexible duration mandates

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 23.55% Was (31-Mar-2019) 22.26%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2019

Holdings

Total
Holdings
427
Largest Holding Federal National Mortgage Assn. 2.84% Was (31-Mar-2019) 0.00%
Top 10 Holdings 17.70%
Other View Full Holdings Quarterly data as of 30-Jun-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB US Treasury
By % 14.43% -14.29%
Portfolio 14.92% 2.94%
Benchmark 0.49% 17.23%

Average Credit Quality

BBB+

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays Global Aggregate Bond USD Hedged Index

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. 

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity 0-1 Years 10+ Years
By % 16.28% -17.33%
Portfolio 16.28% 7.24%
Benchmark 0.00% 24.56%

Weighted Average Maturity

5.69 Years

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 3-5 Years Over 10 Years
By % 15.15% -9.76%
Portfolio 41.08% 12.38%
Benchmark 25.93% 22.15%

Weighted Average Duration

6.72 Years

Monthly Data as of 30-Jun-2019
Benchmark:  Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Sectors

Total
Sectors
7
Largest Sector Global Sovereign 46.40% Was (31-Mar-2019) 40.66%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2019

Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

Global High Yield
By12.86%
Portfolio 12.86%
Benchmark 0.00%

Largest Underweight

Global Sovereign
By-19.86%
Portfolio 46.40%
Benchmark 66.26%

Monthly Data as of 30-Jun-2019

Currency

Total
Currencies
26
Largest Currency U.S. dollar 78.95% Was (31-Mar-2019) 84.56%
Other View complete Currency Diversification

Monthly Data as of 30-Jun-2019

Benchmark : Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

U.S. dollar
By 34.01%
Portfolio 78.95%
Benchmark 44.94%

Largest Underweight

euro
By -22.96%
Portfolio 1.38%
Benchmark 24.34%

Monthly Data as of 30-Jun-2019

Team (As of 31-Aug-2019)

Kenneth A.  Orchard

Kenneth Orchard is a senior portfolio manager in the Fixed Income Division of T. Rowe Price and a member of the Global Fixed Income Investment team, with responsibility for cochairing the Fixed Income Sector Strategy Advisory Group . He is the portfolio manager for the Global Multi-Sector Bond and Diversified Income Bond Strategies and co-portfolio manager for the International Bond Strategies . He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Orchard has 15 years of investment experience, eight of which have been with T. Rowe Price. Prior to joining the firm in 2010, he worked as a senior credit officer for the Sovereign Risk Group at Moody's Investors Service, where he helped design and review its sovereign rating methodology. Mr. Orchard also worked as a senior economist for Emerging Market Economics in London and as an assistant portfolio manager for HSBC Asset Management in Vancouver.

Mr. Orchard earned a B.A. in international relations from the University of British Columbia and an M.Sc. in public financial policy from the London School of Economics. He also has earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    2018
  • Years at
    T. Rowe Price
    8
  • Years investment
    experience
    15
Keir Joyce, CFA

Keir Joyce is the lead portfolio manager of the US GNMA Bond Strategy as well as the MBS Multi-Sector Account Portfolio (MAP), which can be used as a building block in multi-sector bond separate account portfolios. Mr. Joyce also is a member of the U.S. Taxable Bond team, focusing on mortgage-backed securities and securitized products. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Joyce has 21 years of investment experience, 18 of which have been with T. Rowe Price. Prior to his current role, Mr. Joyce was an associate portfolio manager on the U.S. Taxable Bond team and spent eight years as a mortgage-backed securities trader. Prior to joining the firm in 2001, Mr. Joyce was a fixed income investment associate at State Street Global Advisors and an institutional money market sales assistant at Lehman Brothers.

Mr. Joyce earned a B.A. in business administration from Franklin & Marshall College and an M.B.A. from the University of Maryland, Robert H. Smith School of Business. He also has earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    2008
  • Years at
    T. Rowe Price
    18
  • Years investment
    experience
    21
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
    2018
  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    13
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
    2018
  • Years at
    T. Rowe Price
    31
  • Years investment
    experience
    31
Terry  A.  Moore

Terry Moore is a portfolio specialist in the Fixed Income Division of T. Rowe Price. He is a member of the Global Multi-Sector, Dynamic Global Bond, International Bond, and Customized Fixed Income Solutions teams, working closely with clients, consultants, and prospects. Mr. Moore is a vice president of T. Rowe Price Group, Inc.

Mr. Moore has 22 years of investment experience, eight of which have been at T. Rowe Price. Prior to joining the firm in 2009, he was a portfolio manager and principal with Smith Breeden Associates, where he managed a variety of fixed income portfolios with a focus on residential mortgage-backed securities. He also worked at Goldman Sachs & Co. trading asset-backed securities.

Mr. Moore earned a B.A. in economics and political science from the University of North Carolina at Chapel Hill and an M.B.A. from Duke University, The Fuqua School of Business, where he was a Fuqua Scholar. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    23
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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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