Strategy

Emerging Markets Corporate Bond

The Emerging Markets Corporate Bond Full-Authority Composite is comprised of portfolios seeking current income and capital appreciation primarily through investment in a broader universe of fixed income corporate debt securities and quasi-sovereign debt securities issued by companies located or having a business activity in emerging/developing countries. While largely focused on dollar-denominated corporate bonds, the composite has the ability to invest in local currency corporates as well as dollar-denominated sovereigns. The Full-Authority composite maintains broader discretion seeking to invest in the entire emerging markets corporate universe

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

4.73%
1.61%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

3.45%
0.86

Inception Date 31-May-2011

Performance figures calculated in USD

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Samy Muaddi, CFA
Samy Muaddi, CFA, Portfolio Manager

Samy Muaddi is a portfolio manager in the International Fixed Income Division. He is the lead manager of the Emerging Markets Corporate Bond and Asia Credit Bond Strategies and co-manages the Emerging Markets Bond and Global High Income Bond Strategies. Samy also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

 

Strategy

Investment Approach

  • Focus primarily on corporate debt issued by companies domiciled within emerging market countries.
  • Integrate proprietary credit research and relative value analysis.
  • Establish independent credit rating for each company and country.
  • Add value primarily through individual security selection decisions.
  • Limit risk through diversification.
  • Employ long-term investment horizon combined with low portfolio turnover.
  • Utilize collaboration across macroeconomic, equity and corporate debt teams to take a comprehensive view of corporate debt securities.

Portfolio Construction

  • Diversified portfolio structure: typically 100-150 securities
  • Duration bands: managed within +/- 1 year of the benchmark
  • Expected average credit quality: BB
  • Maximum corporate issuer exposure of 3%
  • Country exposure will range between +/- 20% of index
  • Corporate sector exposure will range between +/- 20% of index
  • Expected tracking error will range between 250 - 450 bps

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 12.43% Was (30-Jun-2020) 14.41%
Other View Top 10 Issuers

Monthly data as of 30-Sep-2020

Holdings

Total
Holdings
208
Largest Holding Health & Happiness H&H International Holdings 1.09% Was (30-Jun-2020) 1.24%
Top 10 Holdings 10.29%
Other View Full Holdings Quarterly data as of 30-Sep-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB A
By % 14.53% -16.02%
Portfolio 33.51% 3.82%
Benchmark 18.98% 19.84%

Average Credit Quality

BB

Monthly Data as of 30-Sep-2020
Benchmark:  J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Sources: Credit Quality Ratings are obtained using Bloomberg Barclays methodology using ratings derived from Moody's Investors Service (Moody's), Standard & Poor's (S&P), and Fitch Ratings (Fitch). When ratings from all 3 agencies are available, the median rating is used. When ratings are available from 2 of the agencies, the lower rating is used. When 1 rating is available, that rating is used. T. Rowe Price does not evaluate these ratings but simply assigns them to the appropriate credit quality category as determined by the rating agency. T. Rowe Price uses the rating of the underlying investment vehicle for credit default swaps.

U.S. Treasury securities are issued by the U.S. Treasury and are backed by the full faith and credit of the U.S. government. The ratings of U.S. Treasury securities are derived from the ratings on the U.S. government. 

Sectors

Total
Sectors
14
Largest Sector TMT 17.52% Was (30-Jun-2020) 18.10%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2020

Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Largest Overweight

TMT
By6.81%
Portfolio 17.52%
Benchmark 10.72%

Largest Underweight

Financial
By-15.77%
Portfolio 14.78%
Benchmark 30.54%

Monthly Data as of 30-Sep-2020

Regions

Total
Regions
5
Largest Region Asia 40.96% Was (30-Jun-2020) 41.70%
Other View complete Region Diversification

Monthly Data as of 30-Sep-2020

Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Largest Overweight

Latin America
By4.12%
Portfolio 29.66%
Benchmark 25.53%

Largest Underweight

Middle East & Africa
By-6.76%
Portfolio 15.09%
Benchmark 21.84%

Monthly Data as of 30-Sep-2020

Countries

Total
Countries
39
Largest Country China 12.24% Was (30-Jun-2020) 15.95%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2020

Benchmark: J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Largest Overweight

India
By4.42%
Portfolio 8.51%
Benchmark 4.09%

Largest Underweight

Hong Kong
By-3.78%
Portfolio 1.01%
Benchmark 4.79%

Monthly Data as of 30-Sep-2020

Currency

Total
Currencies
2
Largest Currency U.S. dollar 99.97% Was (30-Jun-2020) 99.99%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2020

Benchmark : J.P. Morgan Corporate Emerging Market Bond Index Broad Diversified

Largest Overweight

euro
By 0.03%
Portfolio 0.03%
Benchmark 0.00%

Largest Underweight

U.S. dollar
By -0.03%
Portfolio 99.97%
Benchmark 100.00%

Monthly Data as of 30-Sep-2020

Team (As of 01-Oct-2020)

Samy Muaddi, CFA

Samy Muaddi is a portfolio manager in the International Fixed Income Division. He is the lead manager of the Emerging Markets Corporate Bond and Asia Credit Bond Strategies and co-manages the Emerging Markets Bond and Global High Income Bond Strategies. Samy also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Samy’s investment experience began in 2006 when he joined T. Rowe Price, 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.

  • Portfolio manager
    since
    2015
  • Years at
    T. Rowe Price
    14
  • Years investment
    experience
    14
Benjamin Robins, CFA

Ben Robins is a portfolio specialist in the Fixed Income Division at T. Rowe Price. He supports our emerging market debt strategies, which includes hard currency- and local currency-denominated sovereign and corporate debt, working closely with clients, consultants, and prospects. Mr. Robins is a vice president of T. Rowe Price Associates, Inc.

Mr. Robins has 19 years of investment experience. Prior to joining the firm in 2016, he worked as a senior investment consultant at Cambridge Associates, which included client relationship management and fixed income manager research. Prior to that, Mr. Robins worked in investments at Lehman Brothers.

Mr. Robins earned a B.A. in economics, with honors, from the College of William & Mary and an M.B.A. from the Tuck School of Business at Dartmouth. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    4
  • Years investment
    experience
    20

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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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