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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

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

ISIN LU1238971615 Bloomberg TRGUQHG:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

1.95%
$1.8b

1YR Return
(View Total Returns)

Manager Tenure

2.46%
6yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.01
3.16%

Inception Date 10-Jun-2015

Performance figures calculated in GBP

31-Oct-2021 - Arif Husain, Head of International Fixed Income,
We expect developed government bond curves to steepen, driven by long term inflation and terminal rates potentially settling higher. At the same time, we are mindful of further bouts of volatility given concerns around growth and the tightening of liquidity conditions. Against this backdrop, we believe the environment calls for a tactical approach.
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

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 2.46% 1.95% 0.43% 1.27% 1.27%
Indicative Benchmark % 0.07% 0.44% 0.46% 0.48% 0.48%
Excess Return % 2.39% 1.51% -0.03% 0.79% 0.79%

Inception Date 10-Jun-2015

Manager Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in GBP

Data as of 31-Oct-2021

Performance figures calculated in GBP

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 3.31% 2.40% 0.69% 1.42%
Indicative Benchmark % 0.06% 0.46% 0.47% 0.49%
Excess Return % 3.25% 1.94% 0.22% 0.93%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in GBP

Data as of 30-Sep-2021

Performance figures calculated in GBP

Recent Performance

  Month to DateData as of 29-Nov-2021 Quarter to DateData as of 29-Nov-2021 Year to DateData as of 29-Nov-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % -1.11% -1.92% -1.11% -0.82% -0.73%
Indicative Benchmark % 0.01% 0.02% 0.08% 0.01% 0.02%
Excess Return % -1.12% -1.94% -1.19% -0.83% -0.75%

Inception Date 10-Jun-2015

Indicative Benchmark: 3 Month LIBOR in GBP

Indicative Benchmark: 3 Month LIBOR in GBP

Performance figures calculated in GBP

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.

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

31-Oct-2021 - Arif Husain, Head of International Fixed Income,
Yield curves flattened across most developed government bond markets during October. Inflation concerns brought forward expectations for monetary tightening, which weighed on the short and intermediate part of curves, while growth concerns anchored the long end. At the portfolio level, our curve positioning in developed markets was a notable drag as we held short stances at the long end, which suffered from yields falling on growth concerns. In emerging markets, long exposures in the local currency government bond markets of Russia and Brazil also weighed, as central banks in both countries hiked interest rates. A short duration stance in Poland was a positive contributor, however. In the currency market, defensive short positions in the Israeli shekel and the Mexican peso dragged as these currencies strengthened against the U.S. dollar. These losses were partially offset by gains from long positions in the British pound and Norwegian krone.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 62.73% Was (30-Sep-2021) 57.12%
Other View Top 10 Issuers

Monthly data as of31-Oct-2021

Holdings

Total
Holdings
130
Largest Holding Bundesobligation 10.03% Was (30-Jun-2021) 8.50%
Top 10 Holdings 46.82%
Other View Full Holdings Quarterly data as of  30-Sep-2021

Sectors

Total
Sectors
6
Largest Sector Government 83.78% Was (30-Sep-2021) 77.43%
Other View complete Sector Diversification

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Arif Husain, Head of International Fixed Income,
In sector allocation, we held select long positions at the end of October in investment-grade and high yield corporate issuers identified as attractive by our bottom-up research process. These were offset by defensive short positions in credit indices expressed using synthetic credit instruments.

Countries

Total
Countries
43
Largest Country Germany 21.11% Was (30-Sep-2021) 19.37%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

31-Oct-2021 - Arif Husain, Head of International Fixed Income,
The portfolio retained a bias for higher interest rates in select countries where we see potential for more structural inflation, such as the U.S. and UK. By contrast, we held long duration exposures in countries where we believe there’s attractive relative value and further progress in the monetary policy tightening cycle. This included New Zealand and select emerging market countries, such as Russia, Brazil, and Mexico.

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.