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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

Dynamic Global Bond Fund

Formerly Global Unconstrained Bond Fund

Seeks to generate positive returns from global fixed income with a focus on downside risk and diversification from equity markets.

ISIN LU1216622214 Bloomberg TRGUIAU:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

2.93%
$1.3b

1YR Return
(View Total Returns)

Manager Tenure

11.15%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.29
3.18%

Inception Date 10-Jun-2015

Performance figures calculated in USD

31-Jan-2021 - Arif Husain, Head of International Fixed Income,
Overall, we maintain a constructive risk view against a backdrop of ultra-accommodative monetary policy, expansionary fiscal policy, vaccines, and significant pent up demand for services. Accordingly, we have kept overall duration toward the low end of our permitted range and we expressed a positive bias in credit markets during January. We will be monitoring these themes closely, standing ready to take any action should we see signs any one of them is reversing.
Arif Husain, CFA
Arif Husain, CFA, Portfolio Manager

Arif Husain is the head of the International Fixed Income Division. He is a co-portfolio manager for the International Bond and Institutional International Bond Strategies and the lead portfolio manager for the Global Aggregate Bond Strategy. Arif also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

 

Strategy

Investment Objective

To generate income while offering some protection against rising interest rates and a low correlation with equity markets. The fund invests mainly in a portfolio of bonds of all types from issuers around the world, including emerging markets.

Investment Approach

  • The Dynamic Global Bond Fund seeks to provide attractive, stable income and downside risk management through dynamic and flexible portfolio management. The fund is not benchmark sensitive and invests in fixed income securities from a broad opportunity set, looking for best opportunities but also for defensive investments to manage downside risk.
    • Seeks performance through income and capital gains
    • Seeks to generate consistent and sustainable performance through diversification across geography and markets
    • Controlled risk profile with bond-like volatility
    • Focus on downside risk from potential rise in interest rates
    • Tactical management of duration profile and country selection
    • Based on high conviction views driven by extensive research platform
    • Low correlation with risky markets during periods of risk aversion
    • Focus on government allocation as opposed to credit risk
  • Target value added: seeks to outperform the U.S. 3 month Libor over a full market cycle (Not a formal objective and it can be changed without prior notice. Please reference prospectus for formal objective.)
  • Target tracking error: between 2% and 5% tracking error annualized
  • Fund offering different types of share classes currency hedged.

Portfolio Construction

  • Total duration between -1 and 6 years
  • Minimum 50% currency hedged
  • Minimum 50% in non-USD securities
    • Ability to go long and short individual countries and currencies
  • Up to 100% allowed in government bond securities
  • Up to 30% allowed in High Yield

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 11.15% 2.93% 2.39% 2.60% 2.60%
Indicative Benchmark % 0.53% 1.74% 1.47% 1.34% 1.34%
Excess Return % 10.62% 1.19% 0.92% 1.26% 1.26%

Inception Date 10-Jun-2015

Manager Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Data as of 31-Jan-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 8.62% 2.86% 2.35% 2.50%
Indicative Benchmark % 0.66% 1.79% 1.48% 1.36%
Excess Return % 7.96% 1.07% 0.87% 1.14%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Data as of 31-Dec-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 23-Feb-2021 Quarter to DateData as of 23-Feb-2021 Year to DateData as of 23-Feb-2021 1 MonthData as of 31-Jan-2021 3 MonthsData as of 31-Jan-2021
Fund % 1.56% 2.35% 2.35% 0.78% 3.31%
Indicative Benchmark % 0.01% 0.03% 0.03% 0.02% 0.06%
Excess Return % 1.55% 2.32% 2.32% 0.76% 3.25%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Indicative Benchmark: 3 Month LIBOR in USD

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-Jan-2021 - Arif Husain, Head of International Fixed Income,
Core government bond curves mostly steepened during January, driven by rising global growth and inflation expectations. In the U.S., the prospects for additional fiscal stimulus and higher inflation lifted intermediate- and long long-term Treasury yields higher. Within the eurozone, core government bond yields also rose in line with U.S. Treasuries. At the portfolio level, gains were made from short duration stances in the U.S., Germany, Poland, Canada, and the UK. An allocation to U.S. inflation-linked bonds also had positive impact on performance, as did our exposure to local currency Romanian and Serbian government bonds. In the currency sphere, our short bias in the U.S. dollar weighed on returns in January with losses from long positions in the Brazilian real, Australian dollar, and the Russian rouble.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 53.43% Was (31-Dec-2020) 52.36%
Other View Top 10 Issuers

Monthly data as of31-Jan-2021

Holdings

Total
Holdings
155
Largest Holding United Kingdom Gilt 7.65% Was (30-Sep-2020) 6.76%
Top 10 Holdings 39.67%
Other View Full Holdings Quarterly data as of  31-Dec-2020

Maturity

N/A

Duration

N/A

Sectors

Total
Sectors
6
Largest Sector Government 74.85% Was (31-Dec-2020) 72.03%
Other View complete Sector Diversification

Monthly Data as of 31-Jan-2021

Top Contributor

N/A

Top Detractor

N/A
31-Jan-2021 - Arif Husain, Head of International Fixed Income,
Within sectors, we expressed an overall positive bias in credit markets at the end of January. This was driven in part by long positions expressed using synthetic credit instruments in U.S. investment-grade credit markets and, to a lesser extent, U.S. and European high yield credit markets.

Countries

Total
Countries
43
Largest Country Japan 17.15% Was (31-Dec-2020) 15.85%
Other View complete Country Diversification

Monthly Data as of 31-Jan-2021

Top Contributor

N/A

Top Detractor

N/A
31-Jan-2021 - Arif Husain, Head of International Fixed Income,
We continued to keep portfolio duration at the low end of the permitted range during January. This was driven largely by short duration stances in core countries, such as the U.S. and Germany, as we remained concerned about their ability to offer diversification in the current environment. Elsewhere, we maintained our allocation to U.S. inflation-linked bonds- and swaps on anticipation that price pressures could rise in the future as result of base effects and consumption rebounding.

Team (As of 15-Jan-2021)

Arif Husain, CFA

Arif Husain is the head of the International Fixed Income Division. He is a co-portfolio manager for the International Bond and Institutional International Bond Strategies and the lead portfolio manager for the Global Aggregate Bond Strategy. Arif also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd. 

Arif’s investment experience began in 1995, and he has been with T. Rowe Price since 2013. Prior to this, Arif was employed by AllianceBernstein in the area of European Fixed Income and Euro Portfolio Management. He also was a member of the global fixed income and absolute return portfolio management teams. Arif also was employed by Greenwich NatWest as an assistant director of European Derivatives Trading and by the Bank of America National Trust and Savings Association.  

Arif earned a B.Sc. (honors) in banking and international finance from City University London, Cass Business School. He also has earned the Chartered Financial Analyst® designation.

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

  • Fund manager
    since
    2015
  • Years at
    T. Rowe Price
    7
  • Years investment
    experience
    25
Stephane Fertat, CFA

Stephane Fertat is the EMEA head of the Investment Specialists Group and a portfolio specialist in the Fixed Income Division. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd. 

Stephane’s investment experience began in 1998, and he has been with T. Rowe Price since 2007, beginning in the Fixed Income Division. Prior to this, Stephane was employed by Fischer Francis Trees and Watts, a global fixed income asset management company, where he worked as a European fixed income fund manager before moving to a product manager role. Stephane also was a director of client service and business development for the southern European distribution team at Fischer Francis Trees and Watts. He also was employed by Société Générale Fimat Investment Management in Chicago.

Stephane earned a master’s degree in finance from Ecole Superieure de Commerce de Paris.

  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    23
Christopher Dillon, CFA

Chris Dillon is an investment specialist in the Multi-Asset Division. He is also a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Chris’s investment experience began in 1993, and he has been with T. Rowe Price since 2006, beginning in the Fixed Income Division. Prior to this, Chris was employed by PNC Advisors as an investment advisory research consultant. He also directed fixed income management research with Smith Barney Consulting Group.

Chris earned a B.A., cum laude, in history/economics from the University of Delaware and an M.B.A. from Wilmington University. 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
    15
  • Years investment
    experience
    24
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% Yes
Class Q $1,000 $100 $100 0.00% 50 basis points 0.67% Yes
Class Sd $10,000,000 $0 $0 0.00% 0 basis points 0.10% 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.