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Financial Intermediary / All Funds / Global Aggregate 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
Global Aggregate Bond Fund
A portfolio of holdings of between around 400 and 600 issuers that seeks to exploit inefficiencies in the full universe of the global fixed income and currency markets.
ISIN LU0133095660
View more information on risks
FACTSHEET
KID
31-Jan-2020 - Arif Husain, Head of Global Fixed Income and CIO,
The environment for core government bonds remains mixed. Coronavirus concerns will likely depress the wider macroeconomic environment and boost core asset prices in the short term. However, if the outbreak proves short lived, continued accommodative policies from major central banks, prior positive indicators and a release of pent-up demand could kickstart the economy later this year. We therefore continue to monitor data closely, looking for investments that can perform well in different market environments.

Overview
Strategy
Fund Summary
Our approach is to aim to generate consistent performance over the benchmark through a focus on successful alpha generation and effective risk management. The team use bottom-up market fundamental, valuation, and technical analysis to identify opportunities. These are then narrowed down by comparing them within an explicit risk/reward framework. The promotion of environmental and/or social characteristics is achieved through the fund's commitment to maintain at least 10% of the value of its portfolio invested in Sustainable Investments, as defined by the SFDR. 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-Sep-2024 - Quentin Fitzsimmons, Portfolio Manager,
Government bonds yields broadly fell in September, mostly led by short-dated US Treasuries ahead of the Federal Reserve (Fed) policy meeting, where the central bank cut interest rates by 50 basis points. In the portfolio, our overweight position to Chinese duration detracted as yields rose in response to Beijing’s announcement of stimulus measures. Our underweight exposures to the eurozone and Japan also detracted modestly given the broad decline in yields, while weak eurozone business activity data also hindered the former. Our positioning on the eurozone curve was helpful, however, with our overweight exposures at the short-end benefitting from the greater fall in shorter-dated bond yields. Elsewhere, our underweight positions in several currencies, including the Mexican peso and Indonesian rupiah, dragged as they appreciated in a weaker US dollar environment driven by Fed rate cut expectations. An overweight allocation to the Japanese yen also hurt. In sectors, our exposures to US dollar and euro-denominated government related debt contributed, while select exposures to US corporate credit hindered relative performance.
31-Dec-2018 - Arif Husain, Head of Global Fixed Income and CIO,

The portfolio's overall duration was increased over the quarter driven in part by adding to high-quality countries, such as the U.S. and Australia. We also reduced the underweight duration position in the eurozone and moved the UK up to neutral. The changes reflected our expectations that slowing global growth, geopolitics, and trade tensions could fuel a flight into high-quality government bonds.

Country/duration positioning

  • Within developed markets, we began increasing the overweight duration position in the U.S. around mid-October. This was driven by expectations for growth to moderate and the Federal Reserve to slow the pace of interest rate hikes in 2019. Overall, our bias for a flattening of the Treasury yield curve stayed in place as inflation remained well behaved. In the eurozone, we added to Germany in the 7- to 10-year part of the curve and moved Italy back to neutral as budget concerns eased. The overall underweight duration position was reduced as economic growth continued to slow. Over the medium-term, we believe eurozone government bonds are potentially vulnerable as the markets have yet to price in the European Central Bank taking a key step toward monetary policy normalization at the end of 2018 when its quantitative easing program finished.
  • Among other developed market moves, we opened a new overweight duration position in Australia on anticipation that the central bank will keep interest rates unchanged for the foreseeable future, a factor we believe should be supportive for bonds. Meanwhile, in the UK, we closed the underweight duration position in mid-November on uncertainty surrounding the country's exit from the European Union. Toward the end of the period, we opened a new underweight duration position in Canada as we felt that the market was being too pessimistic on the outlook for interest rate hikes.
  • Our allocation to local emerging market bonds remained low during the quarter. In terms of moves, we reduced overweight positions in Mexico and Thailand and took profit on the off-benchmark position in Brazil. We also added modestly to our off-benchmark exposure in domestic Romania on anticipation that inflation pressures could recede. Throughout, we maintained overweight positions in Chile, and off-benchmark exposures in India and South Africa. To balance some of the risks, we maintain a negative bias in Eastern Europe through underweight duration positions expressed in Hungary and Poland.

Currency selection

  • On the currency front, we shifted to an underweight position in the U.S. dollar toward the end of the quarter. This was driven in part by adding to the overweight position in the Swiss franc and opening a new overweight position in the Swedish krona after the central bank raised interest rates for the first time since 2011 in December. Overall, we felt that with U.S. growth slowing and the Fed potentially delivering fewer hikes in 2019, the dollar could be vulnerable to a correction. In other moves, underweight positions in the euro and Australian dollar were closed. Throughout, we maintained an overweight position in the Japanese yen and underweight allocations to the Singapore dollar and Taiwanese dollar.
  • In emerging markets, we added tentatively to a select number of currencies. This included the Mexican peso, the Argentine peso, the South African rand, and the Malaysian ringgit. These complemented existing exposures in the Romania leu and the Colombian peso. The overweight position in the Czech koruna was closed.

Sector allocation and security selection

  • We maintain an allocation to hard currency emerging market sovereign debt as the income stream remains attractive. We also hold modest exposure to European high yield bonds.
  • To reduce portfolio risk, we continue to hold defensive positions in credit markets. The majority of this is expressed through short credit default swap positions in a U.S. investment-grade bond index. In emerging markets, except for Mexico, we closed the credit default swap positions at an individual country level in Turkey, South Africa, and Indonesia.
31-Dec-2023 - Quentin Fitzsimmons, Portfolio Manager,
We closed our exposure to a US high yield credit index given the excessive rate cuts priced in by markets and potential reflation risks. However, we also retained an allocation to cash bonds in US and European high yield and investment grade credit markets, led by our security selection process. We also maintained a defensive short position in European investment grade credit in light of the ongoing economic slowdown in the region.
31-Dec-2023 - Quentin Fitzsimmons, Portfolio Manager,
The portfolio held an, albeit smaller, overweight duration stance in December. We reopened an underweight position in Japan given the risk of Bank of Japan hawkishness; however, we maintained an overweight in the US as expectations of interest rate cuts there could continue to drive yields lower. We were also overweight New Zealand and Australia in anticipation of slowing growth and receding inflation. In contrast, we increased our underweight exposure to the eurozone amid the risk of upside surprises in economic and inflation data.
31-Dec-2023 - Quentin Fitzsimmons, Portfolio Manager,
In currencies, we continued to hold a tactical underweight position in the US dollar as we saw potential for dovish Federal Reserve rhetoric to weaken demand for the currency. This was balanced by overweight exposures in several developed and emerging market currencies, including the Swiss franc, Japanese yen, Australian dollar, Indonesian rupiah and the Brazilian real. In other key moves, we closed an overweight to the Canadian dollar and increased an underweight to the Chinese offshore yuan on a relative value basis.

Past performance is not a reliable indicator of future performance.

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.

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.

Before deciding to invest in the fund, you should read the offering document/prospectus (including its investment objectives, policies and any risk warnings) which are available and may be obtained from any appointed distributors.

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.  

Benchmark: Investors may use the benchmark to compare the fund’s performance. The benchmark has been selected because it is similar to the investment universe used by the investment manager and therefore acts as an appropriate comparator. The investment manager is not constrained by any country, sector and/or individual security weightings relative to the benchmark and has complete freedom to invest in securities that do not form part of the benchmark.

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