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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

Diversified Income Bond Fund

Formerly Global Multi-Sector Bond Fund

The fund invests mainly in a diversified portfolio of high yield corporate bonds from issuers around the world, including emerging markets.

ISIN LU1244139405 Bloomberg TRPGMSQ:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

4.95%
$149.4m

1YR Return
(View Total Returns)

Manager Tenure

12.78%
2yrs

Inception Date 15-Dec-2016

Performance figures calculated in USD

31-Mar-2021 - Ken Orchard, Portfolio Manager ,
Looking into the summer, strengthening economic growth, fuelled by unprecedented fiscal and monetary stimulus and improved vaccination rollouts, may reassert its influence over markets. Rising inflation expectations could continue to drive global yields higher and yield curves steeper. Cash balances have grown, and there will be pressure to put them to work. It is important to remain disciplined around credit exposures amid growing market euphoria as sentiment and valuations could get extreme.
Kenneth A.  Orchard
Kenneth A. Orchard, Portfolio Manager

Kenneth Orchard is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment team. 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 issuers around the world, including emerging markets.

Investment Approach

  • To seek diversified sources of income and return by utilizing the full global opportunity set and managing risk.
    • Active tactical allocation across an expanded global opportunity set of 14 fixed income sectors, 80+ countries, and 40+ currencies.
    • Best ideas security selection from proprietary global research platform.
    • Actively diversify risk across both quantitative risk factors and qualitative investment themes.
    • Avoid concentration in any one sector or interest rate cycle.
    • Focus on risk-adjusted returns over a medium to long-term horizon.
  • Target tracking error range: 100-500 basis points
  • 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

  • Up to 50% of assets may be unhedged to exploit currency valuation opportunities
  • 40% of bonds may be invested outside of the U.S.
  • High Yield: Max 50%, excluding securitized assets
  • Emerging Markets: Max 25% Hard Currency, Max 25% Local Currency
  • Portfolio Average Credit Quality: Target Investment Grade
  • Duration range: 0 to 8 years
  • Number of securities: 200-500

Performance (Class Q)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 12.78% 4.95% N/A 5.29% 6.65%
Indicative Benchmark % 0.15% 4.54% N/A 3.90% 5.35%
Excess Return % 12.63% 0.41% N/A 1.39% 1.30%

Inception Date 15-Dec-2016

Manager Inception Date 31-Oct-2018

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Data as of 30-Apr-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 16.82% 4.57% N/A 5.20%
Indicative Benchmark % 1.50% 4.32% N/A 3.92%
Excess Return % 15.32% 0.25% N/A 1.28%

Inception Date 15-Dec-2016

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Data as of 31-Mar-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 12-May-2021 Quarter to DateData as of 12-May-2021 Year to DateData as of 12-May-2021 1 MonthData as of 30-Apr-2021 3 MonthsData as of 30-Apr-2021
Fund % 0.16% 0.97% 0.40% 0.80% 0.00%
Indicative Benchmark % -0.32% -0.06% -2.53% 0.26% -1.69%
Excess Return % 0.48% 1.03% 2.93% 0.54% 1.69%

Inception Date 15-Dec-2016

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Indicative Benchmark: Bloomberg Barclays Global Aggregate 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.

31-Mar-2021 - Ken Orchard, Portfolio Manager ,
Global fixed income markets, as measured by the Bloomberg Barclays Global Aggregate Index, produced negative total returns in U.S. dollar-hedged terms. Rising U.S. Treasury yields weighed on absolute performance for sectors priced off the U.S. Treasury curve. However, spreads largely held firm or tightened modestly, leading to marginally positive excess returns for most spread sectors. The DXY, a U.S. dollar currency index, returned approximately 2.59%. The portfolio posted negative total returns. Exposure to U.S. investment-grade corporate bonds weighed on performance as rising U.S Treasury yields led to negative total returns for the sector. However, exposure to U.S. inflation-linked debt helped as inflation expectations remain elevated. Exposure to the European high yield market and European investment-grade corporates also benefited performance as absolute returns were strong in both sectors.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 18.00% Was (31-Mar-2021) 21.74%
Other View Top 10 Issuers

Monthly data as of30-Apr-2021

Holdings

Total
Holdings
362
Largest Holding Bonos de la Tesoreria de la Republica en pesos 3.12% Was (31-Dec-2020) 3.42%
Top 10 Holdings 14.36%
Other View Full Holdings Quarterly data as of  31-Mar-2021

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB AA
By % 21.71% -11.01%
Fund 21.98% 3.43%
Indicative Benchmark 0.27% 14.44%

Average Credit Quality

BBB-

Monthly Data as of  30-Apr-2021
Indicative Benchmark:  Bloomberg Barclays Global Aggregate 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 0-1 Years 1-3 Years
By % 8.87% -11.01%
Fund 8.87% 10.24%
Indicative Benchmark 0.00% 21.25%

Weighted Average Maturity

5.80 Years

Monthly Data as of  30-Apr-2021
Indicative Benchmark:  Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Under 1 Year Over 10 Years
By % 14.12% -16.64%
Fund 14.50% 6.06%
Indicative Benchmark 0.38% 22.70%

Weighted Average Duration

4.90 Years

Monthly Data as of  30-Apr-2021
Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Sectors

Total
Sectors
7
Largest Sector Global Sovereign 35.42% Was (31-Mar-2021) 39.47%
Other View complete Sector Diversification

Monthly Data as of 30-Apr-2021

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

Global High Yield
By17.37%
Fund 17.37%
Indicative Benchmark 0.00%

Largest Underweight

Global Sovereign
By-32.56%
Fund 35.42%
Indicative Benchmark 67.98%

Monthly Data as of 30-Apr-2021

31-Mar-2021 - Ken Orchard, Portfolio Manager ,
We added to the portfolio’s overall risk exposure with increased allocation to credit sectors, specifically in global investment-grade and high yield corporate bonds. In turn, we reduced exposure to agency mortgage-backed securities (MBS) as valuations have looked increasingly stretched.

Regions

Total
Regions
6
Largest Region North America 48.00% Was (31-Dec-2020) 52.71%
Other View complete Region Diversification

Monthly Data as of 31-Mar-2021

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

Latin America
By11.40%
Fund 12.52%
Indicative Benchmark 1.12%

Largest Underweight

Japan
By-13.30%
Fund 0.71%
Indicative Benchmark 14.01%

Monthly Data as of 31-Mar-2021

Countries

Total
Countries
60
Largest Country United States 45.03% Was (31-Mar-2021) 46.50%
Other View complete Country Diversification

Monthly Data as of 30-Apr-2021

Indicative Benchmark: Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

United States
By8.96%
Fund 45.03%
Indicative Benchmark 36.07%

Largest Underweight

Japan
By-13.12%
Fund 0.72%
Indicative Benchmark 13.85%

Monthly Data as of 30-Apr-2021

31-Mar-2021 - Ken Orchard, Portfolio Manager ,
We added to U.S. duration during the period. Our view remains that there will be strong economic growth ahead and that rising inflation expectations should cause global yields to continue their march higher with a steeper curve. However, in the near term, we think there can be a period of consolidation given the build-up in consensus for higher rates and high inflation in the second quarter. In EM, we favour countries like Israel, Chile, and Malaysia.

Currency

Total
Currencies
25
Largest Currency 94.01% Was (31-Mar-2021) 96.23%
Other View completeCurrency Diversification

Monthly Data as of  30-Apr-2021

Indicative Benchmark : Bloomberg Barclays Global Aggregate Bond USD Hedged Index

Largest Overweight

U.S. dollar
By 52.59%
Fund 94.01%
Indicative Benchmark 41.42%

Largest Underweight

euro
By -25.96%
Fund -2.01%
Indicative Benchmark 23.95%

Monthly Data as of  30-Apr-2021

31-Mar-2021 - Ken Orchard, Portfolio Manager ,
In currencies, we added to the Mexican peso and cut in half our exposure to the Turkish lira after the president surprisingly fired the central bank chief. We moved into a short position in the Russian rouble as possible sanctions could weigh on the currency. We also added a small long position in the Japanese yen.

Team (As of 12-May-2021)

Kenneth A.  Orchard

Kenneth Orchard is a senior portfolio manager in the Fixed Income Division and a member of the Global Fixed Income Investment team. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Kenneth has been with T. Rowe Price since 2010, initially as a sovereign analyst and with responsibility for the European macro outlook and then joining the global fixed income portfolio management team in 2013. He is currently the portfolio manager for the Global Multi-Sector Bond and Diversified Income Bond Strategies and co-portfolio manager for the International Bond Strategies. He also is the cochair of the fixed income Sector Strategy Advisory Group and a member of the European and UK Asset Allocation Committees. Kenneth’s investment experience began in 1998 at HSBC Asset Management in Canada. Following a period at Emerging Markets Economics as a consulting economist, he was employed by Moody’s Investors Service as a senior credit officer in the sovereign group, and he was involved in designing and improving aspects of the sovereign rating methodology.

Kenneth 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. Kenneth also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
    since
    2018
  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    17
Terry  A.  Moore, CFA

Terry Moore is a portfolio specialist in the Fixed Income Division. 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. Terry is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Terry’s investment experience began in 1994, and he has been with T. Rowe Price since 2009, beginning in the Fixed Income Division. Prior to this, Terry was employed by Smith Breeden Associates as a portfolio manager and principal, where he led the Financial Institutions Group and managed fixed income portfolios with a focus on residential mortgage-backed securities. He also was employed by Goldman Sachs & Co., where he traded asset-backed securities.

Terry earned a B.A. in economics and political science from the University of North Carolina, 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.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
    11
  • Years investment
    experience
    25

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 UK Tax Reporting Status
Class A $1,000 $100 $100 5.00% 100 basis points 1.17% No
Class I $2,500,000 $100,000 $0 0.00% 50 basis points 0.60% No
Class Q $1,000 $100 $100 0.00% 50 basis points 0.67% No

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

T. Rowe Price Funds SICAV and its sub-funds are domiciled in Luxembourg and therefore considered offshore funds for UK tax purposes. Selected share classes of T. Rowe Price Funds SICAV have been designated “Reporting Funds” by HM Revenue & Customs (HMRC) under the guidelines of the UK Offshore Funds Regulation. These share classes report all relevant tax information to HMRC on an annual basis. Details on the information reported are outlined in the SICAV Shareholder Tax Reporting document that is available in the Fund Range Docs drop-down. Investors in “Reporting Fund” share classes who are considered United Kingdom residents for tax purposes will have any accrued gains treated as a capital gain rather than income upon sale or other disposal of their shares.