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Financial Intermediary / All Funds / Emerging Local Markets Bond Fund
Fund Range Documents

Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

The listed funds are not an exhaustive list of funds available. Visit www.funds.troweprice.com to see the full range of funds offered by T. Rowe Price, including those that consider environmental and social characteristics as part of their investment process.  For up to date information regarding any T. Rowe Price fund's investment strategy, please see the relevant fund KID and prospectus. 

SICAV
Emerging Local Markets Bond Fund
An actively managed, diversified portfolio of the local-currency denominated bonds of emerging market sovereign issuers. The strategy seeks to provide generally lower levels of credit risk compared to external bonds, with meaningful opportunities in terms of local interest rate cycle and emerging markets currency exposure. Put simply, we aim to buy high quality businesses run by high quality people. The fund is categorised as Article 8 under Sustainable Finance Disclosure Regulation (SFDR).
ISIN LU0310189781
View more information on risks
FACTSHEET
KID
SFDR DISCLOSURE
31-May-2024 - Andrew Keirle, Portfolio Manager,
Recent market turbulence has been unsurprising, but it has led to improved emerging market local bond and currency valuations. Disinflation and monetary easing remain supportive, as does a potentially peak in the US dollar. Slowing global growth and geopolitical factors remain concerns; however, our active approach focused on country selection and structural themes should work well.

Overview
Strategy
Fund Summary
Our approach is to leverage our in-house global fixed income team’s views to form a baseline for emerging market debt. We then carry out fundamental research, including independent country risk assessments across more than 60 countries. We formulate short- and medium-term forecasts across the yield curve for nominal bonds, inflation-linked bonds, and currencies. The promotion of environmental and/or social characteristics is achieved through the fund's commitment to maintain at least 50% of the value of its portfolio invested in issuers and/or securities that are rated as ‘Green’ by the T. Rowe Price proprietary Responsible Investor Indicator Model (RIIM). Additionally, we apply a proprietary responsible screen (exclusion list). The manager is not constrained by the fund’s benchmark, which is used for performance comparison purposes only.
OUR VIEWS ON EMERGING MARKETS
Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

31-May-2024 - Andrew Keirle, Portfolio Manager,
Emerging markets bonds rose and most currencies appreciated versus the US dollar in May, mostly due to softer US economic data released in the first half of the month. Within the portfolio, our duration positioning contributed, particularly our overweight allocation to Hungary. Our overweight exposure to Peru and Mexico as well as an off-benchmark position in India also had a positive impact. However, our underweight position in Thai and Malaysian local bonds worked against us. In currency, our long position in the Turkish lira and off-benchmark position in the Egyptian pound lifted relative results as both currencies benefitted from positive developments among ratings agencies. Our long position in the Hungarian forint also added value as the country’s central bank lowered its key interest rate due to inflation remaining within policymakers’ tolerance band. Conversely, our long position in the Brazilian real and out-of-benchmark exposure to the Nigerian naira detracted.
31-Jan-2024 - Andrew Keirle, Portfolio Manager,
We remained overweight to duration, principally in Latin America which should continue to benefit from disinflation and falling interest rates, although we increased our underweight exposure to Chile as valuations look stretched. We stayed overweight to Central and Eastern Europe, predominantly Hungary, given monetary easing and fiscal fundamentals, but maintained an underweight to Poland reflecting expected high issuance. In Asia, we favour off-benchmark opportunities, notably India. We reduced our developed market short duration hedges in the US and Europe.
31-Jan-2024 - Andrew Keirle, Portfolio Manager,
We increased our long exposure to emerging market currencies on weakness, boosting our conviction overweight positions in the high-yielding Hungarian forint and Mexican peso, increasing overweight exposures in Central and Eastern Europe and Latin America. More opportunistically, we topped up our position in Chilean peso following its sharp underperformance and added a long position in the South African rand where interest rates remain elevated. We rotated some of our US dollar short position into other funding currencies including the euro, UK sterling and Japanese yen.

Indicative Benchmark Data Source: JP Morgan. Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The index is used with permission. The Index may not be copied, used, or distributed without J.P. Morgan’s prior written approval. Copyright © 2022, J.P. Morgan Chase & Co. All rights reserved.

Past performance is not a reliable indicator of future performance.

Source for 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.

Emerging Local Markets Bond

Effective 1 January 2011, the benchmark was changed to J. P. Morgan Government Bond Index - Emerging Markets Global Diversified Index. Prior to 1 January 2011, the benchmark was the J. P. Morgan Government Bond Index - Emerging Markets Broad Diversified Index. The benchmark change was made because the portfolio manager viewed the new benchmark to be a better representation of the investment strategy of the sub-fund. Historical benchmark representations have not been restated.

Daily performance data is based on the latest available NAV.  

The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents and/or key information document (KID) in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors. They can also be found along with a summary of investor rights in English at www.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.

Please note that the Fund typically has a risk of high volatility.

Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class.  The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.

The specific securities identified and described in this website do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.  

 

©2023 Morningstar, Inc. All rights reserved. The information  contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Citywire Data Source: Citywire – where the fund manager is rated by Citywire, the rating is based on the manager’s 3-year risk adjusted performance. For further information on ratings methodology, please visit www.aboutcitywire.com.