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Strategy

Investment Objective

To generate income while offering some protection against rising interest rates and a low correlation with equity markets. The fund invests mainly in a portfolio of bonds of all types from issuers around the world, including emerging markets.

Investment Approach

  • The Dynamic Global Bond Fund seeks to provide attractive, stable income and downside risk management through dynamic and flexible portfolio management. The fund is not benchmark sensitive and invests in fixed income securities from a broad opportunity set, looking for best opportunities but also for defensive investments to manage downside risk.
    • Seeks performance through income and capital gains
    • Seeks to generate consistent and sustainable performance through diversification across geography and markets
    • Controlled risk profile with bond-like volatility
    • Focus on downside risk from potential rise in interest rates
    • Tactical management of duration profile and country selection
    • Based on high conviction views driven by extensive research platform
    • Low correlation with risky markets during periods of risk aversion
    • Focus on government allocation as opposed to credit risk
  • Target value added: seeks to outperform the U.S. 3 month Libor over a full market cycle (Not a formal objective and it can be changed without prior notice. Please reference prospectus for formal objective.)
  • Target tracking error: between 2% and 5% tracking error annualized
  • Fund offering different types of share classes currency hedged.

Past performance is not a reliable indicator of future performance.

Annualised Performance

Current Year Performance

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30-Apr-2025 - Scott Solomon, Co-Portfolio Manager

Global government bonds gained as US tariff announcements led to concerns over growth. Within active duration management, our positioning for the US Treasury yield curve to steepen—whereby short-dated yields outperform relative to longer-dated yields—worked well reflecting concerns that tariffs could weigh on growth while also potentially fueling inflationary pressures. Our long duration exposures in Brazil and New Zealand added value amid falling global yields, although our overall short US duration exposure detracted. Currency returns were marginally positive as we kept exposure limited. Our long position in the Japanese yen benefited from haven demand. In credit, our long U.S. high yield and investment grade exposure detracted. Spreads widened amid fears over tariffs and a potential trade war. Our equity risk hedges cost performance as US stocks rallied in the second half of the month after the US announced a delay to the implementation of tariffs.

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GIPS® Information

T. Rowe Price (“TRP”) claims compliance with the Global Investment Performance Standards (GIPS®).

A complete list and description 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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