T. Rowe Price T. Rowe Price Trusty Logo

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)

3.70%
$556.8m

1YR Return
(View Total Returns)

Manager Tenure

7.51%
14yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.25
2.37%

Inception Date 31-Dec-2004

Performance figures calculated in USD

Other Literature

30-Sep-2019 - Michael Conelius, Portfolio Manager,
Uncertainty has weighed on markets recently, driving up volatility. Concerns about slowing global growth, uncertain monetary policy, inflated equity market valuations, trade wars, and geopolitical risks, have made markets jittery. While emerging markets are not insulated from the global risk environment, we remain cautiously optimistic on the asset class as it offers one of the highest yielding opportunities in the fixed income market and credit fundamentals remain generally healthy.
Michael J.  Conelius
Michael J. Conelius, Portfolio Manager

Michael Conelius is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Conelius is lead manager of T. Rowe Price's Emerging Markets Bond Strategy. He 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.

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 % 7.51% 3.70% 5.14% 6.27% 6.63%
Indicative Benchmark % 11.57% 4.61% 5.74% 6.88% 7.26%
Excess Return % -4.06% -0.91% -0.60% -0.61% -0.63%

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-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 7.51% 3.70% 5.14% 6.27%
Indicative Benchmark % 11.57% 4.61% 5.74% 6.88%
Excess Return % -4.06% -0.91% -0.60% -0.61%

Inception Date 31-Dec-2004

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

Data as of  30-Sep-2019

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 22-Oct-2019 Quarter to DateData as of 22-Oct-2019 Year to DateData as of 22-Oct-2019 1 MonthData as of 30-Sep-2019 3 MonthsData as of 30-Sep-2019
Fund % 0.16% 0.16% 10.82% 0.08% -1.04%
Indicative Benchmark % 0.08% 0.08% 13.07% -0.46% 1.50%
Excess Return % 0.08% 0.08% -2.25% 0.54% -2.54%

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.

30-Sep-2019 - Michael Conelius, Portfolio Manager,
Emerging markets debt generated slightly negative returns in September. Concerns about potential weakness in global growth stemming from trade disputes and increased geopolitical tensions weighed on assets. Within the portfolio, our overweight allocation to Argentina contributed to relative performance as the country’s assets partially recovered from recent weakness. Security selection in Brazil was also beneficial. Our positions in quasi-sovereign oil company Petrobras outperformed as the company successfully refinanced some of its outstanding debt and extended maturities. Conversely, an overweight allocation to Venezuela held back relative returns. The distressed country’s bonds declined amid pricing write-downs by the index, as it lowered Venezuela’s weight by reducing prices. An out-of-benchmark position in the Bahamas dented relative performance further; a hurricane created significant damage that could adversely affect growth due to a decline in tourism.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 38.65% Was (31-Aug-2019) 37.94%
Other View Top 10 Issuers

Monthly data as of 30-Sep-2019

Holdings

Total
Holdings
258
Largest Holding Petrobras Global Finance BV 3.90% Was (30-Jun-2019) 3.55%
Top 10 Holdings 19.69%
Other View Full Holdings Quarterly data as of 30-Sep-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating B A
By % 10.95% -13.38%
Fund 37.09% 4.36%
Indicative Benchmark 26.14% 17.74%

Average Credit Quality

BB-

Monthly Data as of 30-Sep-2019
Indicative Benchmark:  J.P. Morgan Emerging Markets Bond Index Global Diversified

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 7-10 Years 10+ Years
By % 6.26% -10.72%
Fund 26.75% 24.49%
Indicative Benchmark 20.49% 35.21%

Weighted Average Maturity

10.59 Years

Monthly Data as of 30-Sep-2019
Indicative Benchmark:  J.P. Morgan Emerging Markets Bond Index Global Diversified

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 5-7 Years 1-3 Years
By % 10.43% -4.94%
Fund 32.07% 9.15%
Indicative Benchmark 21.64% 14.09%

Weighted Average Duration

7.50 Years

Monthly Data as of 30-Sep-2019
Indicative Benchmark:  J.P. Morgan Emerging Markets Bond Index Global Diversified

30-Jun-2019 - Michael Conelius, Portfolio Manager,

We are overweight countries pursuing reform agendas that target long-term growth.

Brazil

Brazil remains our largest overweight. We added to our overweight throughout the quarter, with a preference for bonds from quasi-sovereign oil company Petrobras as the company continues to improve its credit profile. In addition to quasi-sovereign debt, the fund holds sovereign bonds, both dollar-denominated and partially hedged local currency sovereign bonds. We also invest in debt from several corporate issuers in the consumer-oriented sectors that benefit from domestic economic recovery.

South Africa

We added to our overweight position in South Africa with positions favoring quasi-sovereign utility company Eskom. Reform momentum could increase following the reelection of President Ramaphosa and his appointment of new cabinet members. The country's assets offer attractive relative value.

Argentina

Argentina remains a meaningful overweight. The fund holds sovereign bonds, both dollar-denominated and hedged local currency sovereign bonds. We also invest in debt from several corporate issuers in the consumer-oriented sectors that could benefit from potential domestic economic recovery.�

We remain underweight countries that offer limited risk-adjusted return potential.

Russia

We maintained the fund's lack of exposure to Russia, due to increased risk of additional sanctions. While the country's credit profile is largely solid, supported by its conservative fiscal policy, and oil prices, these had largely been priced in.

Philippines

The Philippines is a notable underweight, primarily due to the unattractive relative value of its external sovereign debt. The country is supported by strong local ownership causing it to consistently trade rich to peers.

Hungary, Malaysia, and Chile

We have underweight allocations to Hungary, Malaysia, and Chile as these higher-rated sovereigns offer low yields and offer asymmetric returns in the face of potential macroeconomic missteps. We sought better value elsewhere.

Sectors

Total
Sectors
5
Largest Sector Sovereign 63.35% Was (31-Aug-2019) 62.95%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2019

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

Largest Overweight

Corporate
By16.92%
Fund 16.92%
Indicative Benchmark 0.00%

Largest Underweight

Sovereign
By-18.53%
Fund 63.35%
Indicative Benchmark 81.87%

Monthly Data as of 30-Sep-2019

30-Sep-2019 - Michael Conelius, Portfolio Manager,
Fundamentals, such as stable underlying economic growth, remain broadly supportive. In the near term, we think macroeconomic risks along with several idiosyncratic factors within emerging markets will likely be the key drivers through to the end of this year. We are overweight select quasi-sovereign companies, including Eskom and Petrobras, that will likely benefit from reforms and offer attractive carry pickup versus the sovereign. We have also added to our corporate exposure on more attractive relative value, focussing on consumer-oriented companies in higher-quality markets.

Countries

Total
Countries
53
Largest Country Brazil 11.16% Was (31-Aug-2019) 10.93%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

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

Largest Overweight

Brazil
By8.19%
Fund 11.16%
Indicative Benchmark 2.97%

Largest Underweight

Russia
By-3.28%
Fund 0.00%
Indicative Benchmark 3.28%

Monthly Data as of 30-Sep-2019

30-Sep-2019 - Michael Conelius, Portfolio Manager,
We are somewhat cautiously positioned, focussing on idiosyncratic opportunities with positive reform momentum, such as Brazil and South Africa, as well as smaller markets that are underpriced relative to their fundamental risks (Ukraine, Sri Lanka) or offer diversification benefits (Jamaica, Serbia). Despite their strong recent performance, we maintained our structural underweight to low yielding investment grade countries including China and the Gulf states.

Currency

Total
Currencies
13
Largest Currency U.S. dollar 99.90% Was (31-Aug-2019) 100.63%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2019

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

Largest Overweight

Brazilian real
By 0.30%
Fund 0.30%
Indicative Benchmark 0.00%

Largest Underweight

Chilean peso
By -0.75%
Fund -0.75%
Indicative Benchmark 0.00%

Monthly Data as of 30-Sep-2019

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 31-Aug-2019)

Michael J.  Conelius

Michael Conelius is a portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Conelius is lead manager of T. Rowe Price's Emerging Markets Bond Strategy. He is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price International Ltd.

Mr. Conelius has 31 years of investment experience, all of them at T. Rowe Price. Prior to joining the firm in 1988, he was a consultant for Booz Allen Hamilton.

Mr. Conelius earned a B.S. in finance from Towson University and an M.S. in finance from Loyola University Maryland. Mr. Conelius has also earned the Chartered Financial Analyst designation.

  • Fund manager
    since
    2004
  • Years at
    T. Rowe Price
    31
  • Years investment
    experience
    31

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount Minimum Subsequent Investment Minimum Redemption Amount Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges UK Tax Reporting Status
Class A $15,000 $100 $100 5.00% 125 basis points 1.42% No
Class I $2,500,000 $100,000 $0 0.00% 65 basis points 0.75% No
Class Q $15,000 $100 $100 0.00% 65 basis points 0.82% 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. 

Dismiss
Tap to dismiss

Download

Latest Date Range
Audience for the document: Share Class: Language of the document:
Download Cancel

Download

Share Class: Language of the document:
Download Cancel
Sign in to manage subscriptions for products, insights and email updates.
Continue with sign in?
To complete sign in and be redirected to your registered country, please select continue. Select cancel to remain on the current site.
Continue Cancel
Once registered, you'll be able to start subscribing.

By clicking the Continue button, I acknowledge that I have read and accepted the Privacy Notice

Continue Back

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®). 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

Other Literature

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