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)

2.48%
$810.1m

1YR Return
(View Total Returns)

Manager Tenure

6.70%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.31
3.14%

Inception Date 10-Jun-2015

Performance figures calculated in USD

Other Literature

30-Jun-2020 - Arif Husain, Head of International Fixed Income,
We are taking a wait-and-see approach given the current market uncertainties. While signs of a rebound in economic activity are encouraging, we are mindful of risks, such as the renewal of the China-U.S. trade tensions. The upcoming U.S. election, Brexit talks, and the possibility of more local shutdowns could also trigger future bouts of volatility. As a result, we have kept in place our defensive positioning in equity and credit markets.
Arif Husain
Arif Husain, Portfolio Manager

Arif Husain is head of International Fixed Income at T. Rowe Price. He is lead portfolio manager for the Dynamic Global Bond Strategies. Mr. Husain is also co-portfolio manager for the firm's International Bond, Global Aggregate Bond and Institutional International Bond Strategies. He 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 % 6.70% 2.48% 2.47% 2.42% 2.42%
Indicative Benchmark % 1.42% 1.95% 1.49% 1.45% 1.45%
Excess Return % 5.28% 0.53% 0.98% 0.97% 0.97%

Inception Date 10-Jun-2015

Manager Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Data as of  31-Jul-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 4.79% 1.99% 2.32% 2.20%
Indicative Benchmark % 1.60% 1.98% 1.49% 1.47%
Excess Return % 3.19% 0.01% 0.83% 0.73%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in USD

Data as of  30-Jun-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 10-Aug-2020 Quarter to DateData as of 10-Aug-2020 Year to DateData as of 10-Aug-2020 1 MonthData as of 31-Jul-2020 3 MonthsData as of 31-Jul-2020
Fund % 0.18% 1.52% 7.29% 1.34% 2.82%
Indicative Benchmark % 0.01% 0.03% 0.57% 0.02% 0.08%
Excess Return % 0.17% 1.49% 6.72% 1.32% 2.74%

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.

30-Jun-2020 - Arif Husain, Head of International Fixed Income,
Core government bonds were broadly stable during June, while risk assets, such as credit and equity, continued to perform well as the outlook for growth improved. In the U.S., Treasury yields ended the month little changed amid stronger-than-expected economic data releases and a dovish outlook from the U.S. Federal Open Market Committee. In the eurozone, periphery government bonds outperformed the core, supported by the European Central Bank (ECB) expanding monetary easing measures. At the portfolio level, our positive bias toward eurozone periphery countries had a positive impact, particularly our long duration postures in Italy and Cyprus. Our allocation to U.S. inflation-linked bonds also added gains, while our long duration position in the U.S. dragged on performance. In foreign exchange markets, our long positions in the Argentine peso and Brazilian real contributed, while a short position in the South Korean won and long position in the Japanese yen held back returns.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 46.84% Was (30-Jun-2020) 48.94%
Other View Top 10 Issuers

Monthly data as of 31-Jul-2020

Holdings

Total
Holdings
190
Largest Holding U.S. Treasury Bonds 11.66% Was (31-Mar-2020) 0.23%
Top 10 Holdings 36.47%
Other View Full Holdings Quarterly data as of 30-Jun-2020

Maturity

N/A

Duration

N/A

Sectors

Total
Sectors
7
Largest Sector Government 61.45% Was (30-Jun-2020) 64.53%
Other View complete Sector Diversification

Monthly Data as of 31-Jul-2020

Top Contributor

N/A

Top Detractor

N/A
30-Jun-2020 - Arif Husain, Head of International Fixed Income,
In sectors, the credit profile of the portfolio expressed a modest positive bias at the end of June where we hold positions in corporate issuers where our analysts have strong convictions. To help mitigate some of the risks, we also held defensive credit positions.

Countries

Total
Countries
39
Largest Country United States 28.53% Was (30-Jun-2020) 31.72%
Other View complete Country Diversification

Monthly Data as of 31-Jul-2020

Top Contributor

N/A

Top Detractor

N/A
30-Jun-2020 - Arif Husain, Head of International Fixed Income,
Within the eurozone, we increased our overall positive bias toward the periphery during June. We believe that the combination of ongoing strong support from the ECB and positive surprises coming from domestic and EU-wide fiscal initiatives will be supportive for the region. Accordingly, we increased our long duration stance in Italy and maintained positive biases in Cyprus and Spain.

Team (As of 05-Aug-2020)

Arif Husain

Arif Husain is head of International Fixed Income at T. Rowe Price. He is lead portfolio manager for the Dynamic Global Bond Strategies. Mr. Husain is also co-portfolio manager for the firm's International Bond, Global Aggregate Bond and Institutional International Bond Strategies. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Husain has 24 years of investment experience, six of which have been with T. Rowe Price. Prior to joining the firm in 2013, he spent 14 years as director of both European Fixed Income and Euro Portfolio Management at AllianceBernstein. He was also a member of the global fixed income and absolute return portfolio management teams. Mr. Husain previously worked as assistant director of European Derivatives Trading at Greenwich NatWest and also traded interest rate swaps at Bank of America National Trust & Savings Association.

Mr. Husain received a B.Sc. (hons.) in banking and international finance from the City University, London Business School. He also has earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2015
  • Years at
    T. Rowe Price
    6
  • Years investment
    experience
    24
Stephane Fertat

Stephane Fertat is a portfolio specialist in the Fixed Income Division. He supports all global/international fixed income strategies. He also represents the portfolio management team in meetings and conferences, presenting strategies and market outlooks. Stephane has broad knowledge of fixed income, currency, credit, and derivative instruments, which allows him to assist in the development of customized fixed income solutions. He also has helped launch a number of new strategies. Stephane 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 as a European fixed income fund manager, later moving into a product manager role. Stephane also was employed by Southern Europe as a director of client service and business development. 

Stephane earned a master’s degree in finance from Ecole Superieure de Commerce de Paris. Stephane 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
    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
    14
  • Years investment
    experience
    23
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 23 years of investment experience, nine 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
    10
  • Years investment
    experience
    24

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. 

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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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