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T. Rowe Price Hong Kong / All Funds / Emerging Markets Bond Fund
Fund Range Documents

Risk Considerations

  1. The Fund is actively managed and invests mainly in a diversified portfolio of debt securities of all types from emerging market issuers.
  2. Investment in the Fund involves risks, including general investment risk, emerging markets risk,  geographic concentration risk, currency risk, exclusion criteria risk and issuer concentration risk which may result in loss of a part or the entire amount of your investment.  
  3. The investment in emerging market debt securities is also subject to credit/counterparty risk, interest rate risk, volatility/liquidity risk in emerging markets, downgrading risk, credit rating risk,  risk associated with high yield debt securities which are generally rated below investment grade or unrated, sovereign debt risk, risk associated with investments in debt instruments with loss-absorption features and valuation risk.
  4. The Fund may use derivatives for hedging, efficient portfolio management and investment purposes or to create synthetic short positions in currencies and debt securities, and is subject to derivatives risk. The Fund may also implement active currency position and is subject to relevant risks. Exposure to derivatives may also lead to a risk of significant loss to the Fund.
  5. For Class Ax, dividends are paid on a discretionary basis. Dividend may be paid directly out of capital and/or effectively out of the capital of the share class by distributing all gross income prior to the deduction of any fees and expenses attributable to the share class. Payment of dividends directly out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distribution may result in an immediate reduction of net asset value per share. This could also erode capital and constrain future growth.
  6. The value of the Fund can be volatile and could go down substantially.
  7. Investors should not invest in the Fund solely based on this website.

Investment involves 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.

SICAV
Emerging Markets Bond Fund
This is our flagship hard currency emerging markets debt portfolio. Actively managed, it offers broad exposure across emerging markets debt, with a credit-orientated approach that is broadly representative of external sovereign and corporate markets. The fund is categorised as Article 8 under Sustainable Finance Disclosure Regulation (SFDR).
ISIN LU0207127084
FACTSHEET
KFS
SFDR DISCLOSURE
30-Nov-2023 - Samy Muaddi, Portfolio Manager,
We believe emerging markets (EM) debt continues to offer a substantial yield premium over many fixed income assets and broadly sound fundamentals. However, we remain cautious in the near term due to exogenous risks, including geopolitical conflict, lingering inflation, slower global growth, and tighter financial conditions in developed markets.

Overview
Strategy
Fund Summary
We follow a bottom-up selection process grounded in individual credit fundamentals, guided by selected top-down themes. Proprietary credit research is integrated with relative value analysis. We utilise our emerging markets sovereign and corporate bond analysts as well as collaborating with our emerging markets equity analysts. 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.
Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

30-Nov-2023 - Samy Muaddi, Portfolio Manager,
Emerging markets debt advanced in November amid large yield declines and narrowing credit spreads. Within the portfolio, our holdings in Venezuela gave back some of their gains following last month’s outperformance and detracted significantly from relative returns. Our underweight allocation to Argentina also hindered as the country’s bonds rallied amid President-elect Javier Milei’s orthodox choices for key ministerial appointments. Our positioning in Chile held back relative performance further as the country’s longer-duration sovereign bonds outperformed most corporates for the month. Conversely, our significant underweight exposure to China lifted relative results amid a sluggish economic recovery and continued woes in the property market. Euro-denominated sovereign bonds in Côte d'Ivoire as well as our holdings in the Dominican Republic were beneficial as both countries benefited from credit spread compression.
30-Nov-2023 - Samy Muaddi, Portfolio Manager,
At the sector level, we continue to find value in quasi-sovereigns and corporates in higher-quality mainstream markets, such as Mexico, India, and Indonesia, that offer yield premiums over the sovereign as well as in dislocated BBB/BB rated corporates that have attractive fundamentals in the broader emerging market.
30-Nov-2023 - Samy Muaddi, Portfolio Manager,
As liquidity remained challenged, we made modest portfolio changes over the month. We remain overweight frontier countries that score well in our anchoring framework, such as Côte d’Ivoire and Angola, although we trimmed our position in the Dominican Republic on strength. We are structurally underweight higher-rated mainstream emerging markets (United Arab Emirates, Malaysia, and Uruguay), but we maintain overweight positions in some defensive countries, such as South Korea. We remain underweight select countries, such as Nigeria, that lack fundamental anchors.
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.