Download

Audience for the document: Share Class: Language of the document:

Download

Share Class: Language of the document:

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

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

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest

Please enter valid search characters

SICAV

Emerging Markets Bond Fund

Active investment in mainly sovereign emerging-market bonds.

ISIN LU0207127753 Bloomberg TRPGEBI:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

4.00%
$247.8m

1YR Return
(View Total Returns)

Manager Tenure

8.15%
1yr

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.22
3.38%

Inception Date 31-Dec-2004

Performance figures calculated in USD

30-Sep-2021 - Samy Muaddi, Portfolio Manager ,
Potential volatility in U.S. Treasury rates combined with absolute valuations below historic averages are reasons for caution. However, we believe the relative value of emerging markets (EM) debt versus other asset classes is still compelling. EM debt’s yield premium remains intact, and the coupon compounding opportunity and a benign default outlook will likely continue to attract investors.
Samy Muaddi, CFA
Samy Muaddi, CFA, Portfolio Manager

Samy Muaddi is a portfolio manager in the International Fixed Income Division. He is the portfolio manager of the Emerging Markets Bond Strategy and co-manages the Emerging Markets Corporate Bond and Global High Income Bond Strategies. He previously managed the firm’s Asia Credit Bond Strategy from its inception until 2020. Samy also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, 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 emerging market issuers.

Investment Approach

  • Focus primarily on sovereign debt.
  • Integrate proprietary credit research and relative value analysis.
  • Establish independent credit rating at the country and corporate issuer level.
  • Add value through active country allocation and individual security selection decisions.
  • Limit risk through diversification.
  • Employ long-term investment horizon.
  • 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

  • Diversified portfolio structure: typically 200-300 securities
  • Duration bands: managed within +/- 1 year of the benchmark
  • Average credit quality: BB
  • Country exposure will range between 0% and 10%
  • Expected tracking error: 200-400 bps

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 8.15% 4.00% 3.13% 5.23% 6.10%
Indicative Benchmark % 4.36% 5.65% 3.89% 5.80% 6.72%
Excess Return % 3.79% -1.65% -0.76% -0.57% -0.62%

Inception Date 31-Dec-2004

Manager Inception Date 31-Dec-2004

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Data as of 30-Sep-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 8.15% 4.00% 3.13% 5.23%
Indicative Benchmark % 4.36% 5.65% 3.89% 5.80%
Excess Return % 3.79% -1.65% -0.76% -0.57%

Inception Date 31-Dec-2004

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Data as of 30-Sep-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 21-Oct-2021 Quarter to DateData as of 21-Oct-2021 Year to DateData as of 21-Oct-2021 1 MonthData as of 30-Sep-2021 3 MonthsData as of 30-Sep-2021
Fund % -0.74% -0.74% -0.85% -2.00% -0.41%
Indicative Benchmark % -0.60% -0.60% -1.95% -2.07% -0.70%
Excess Return % -0.14% -0.14% 1.10% 0.07% 0.29%

Inception Date 31-Dec-2004

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

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.

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

30-Sep-2021 - Samy Muaddi, Portfolio Manager ,
Emerging markets (EM) debt produced negative total returns in September. Concerns about rising inflation and energy shortages weighed on investors’ risk sentiment. Within the portfolio, our out-of-benchmark holdings in Venezuela added to gains due to small movements at low U.S. dollar prices. Venezuelan bonds are sanctioned and largely do not trade, yet mark-to-market pricing is ongoing. We see long-term upside potential in an eventual restructuring, although ongoing volatility is anticipated until this time. Security selection in Mexico also supported relative performance due to our lack of exposure to duration-sensitive Mexican sovereign bonds in favour of quasi-sovereigns. Conversely, our out-of-benchmark holdings in the Bahamas weighed on low trading volumes amid political uncertainty as recent elections ushered in a new prime minister. Our selections of higher-yielding property developers in China hindered results further, dragged lower by concerns stemming from tightening regulatory conditions and severe distress in heavily indebted Evergrande, which we do not own but affected overall sentiment.

Sectors

Total
Sectors
4
Largest Sector Sovereign 60.34% Was (31-Aug-2021) 60.08%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Largest Overweight

Corporate
By21.40%
Fund 21.84%
Indicative Benchmark 0.44%

Largest Underweight

Sovereign
By-21.08%
Fund 60.34%
Indicative Benchmark 81.41%

Monthly Data as of 30-Sep-2021

30-Sep-2021 - Samy Muaddi, Portfolio Manager ,
We continue to find value in fundamentally attractive quasi-sovereigns and corporates in mainstream markets such as Mexico that offer yield premiums over the sovereign.

Countries

Total
Countries
58
Largest Country Mexico 10.88% Was (31-Aug-2021) 10.17%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: J.P. Morgan Emerging Markets Bond Index Global Diversified

Largest Overweight

Mexico
By6.05%
Fund 10.88%
Indicative Benchmark 4.83%

Largest Underweight

Malaysia
By-2.67%
Fund 0.00%
Indicative Benchmark 2.67%

Monthly Data as of 30-Sep-2021

30-Sep-2021 - Samy Muaddi, Portfolio Manager ,
We added to investment grade mainstream markets, such as Indonesia and Russia, on improved valuations. However, we are underweight both high yield Turkey and Brazil due to deteriorating credit profiles and institutional quality. In the frontier space, we remain overweight in a variety of countries, such as Oman, Egypt, and Angola, with improving macroeconomic and reform outlooks. That said, we reduced our larger active weights and trimmed more vulnerable issuers in this space. We maintain our structural underweight exposures to low-beta, investment-grade countries.

Currency

Total
Currencies
6
Largest Currency 98.13% Was (31-Aug-2021) 98.91%
Other View completeCurrency Diversification

Monthly Data as of  30-Sep-2021

Indicative Benchmark : J.P. Morgan Emerging Markets Bond Index Global Diversified

Largest Overweight

Chinese renminbi
By 1.33%
Fund 1.33%
Indicative Benchmark 0.00%

Largest Underweight

U.S. dollar
By -1.87%
Fund 98.13%
Indicative Benchmark 100.00%

Monthly Data as of  30-Sep-2021

31-Oct-2015 - Michael Conelius, Portfolio Manager ,
Given our expectations for continued U.S. dollar strength, we maintained a low and defensive level of non-benchmark currency exposure.

Team (As of 01-Oct-2021)

Samy Muaddi, CFA

Samy Muaddi is a portfolio manager in the International Fixed Income Division. He is the portfolio manager of the Emerging Markets Bond Strategy and co-manages the Emerging Markets Corporate Bond and Global High Income Bond Strategies. He previously managed the firm’s Asia Credit Bond Strategy from its inception until 2020. Samy also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price International Ltd.

Samy has been with T. Rowe Price since 2006, beginning as an associate analyst in the Fixed Income Division. After that, he was a credit analyst and then an associate portfolio manager on the Emerging Markets team before assuming his current role.

Samy earned a B.A., summa cum laude, in economics from the University of Maryland. He also has earned the Chartered Financial Analyst® designation. Samy is an adjunct professor at Georgetown University in the Walsh Graduate School of Foreign Service.

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

  • Fund manager
    since
    2020
  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    15

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% 125 basis points 1.42% No
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.73% No
Class Q $1,000 $100 $100 0.00% 65 basis points 0.81% No
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.