Arif Husain CIO, Head of International Fixed Income, Lead Portfolio Manager, discusses how Dynamic Global Bond Strategy may help investors in this challenging environment.
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Dynamic Global Bond seeks consistent performance throughout different market environments
- An actively managed, diversified global bond portfolio with opportunistic currency and credit allocations
- Emphasises negative or low correlation to equity markets, especially during periods of heightened volatility, and downside risk
- Aims to produce modest and repeatable performance, regardless of the direction of interest rate movements
Why Now
Why now for Dynamic Global Bond?
Investors can no longer rely on the steady capital gains produced by global bonds during a four-decade-long bull market. Today, generating performance from global bonds requires a flexible approach and the ability to take opportunistic positions, including short exposure, across currency and credit markets.
The T. Rowe Price Dynamic Global Bond Strategy combines the key benefits of a traditional fixed income strategy with a flexible and dynamic approach. It aims to generate performance, regardless of the interest rate environment.
A Flexible Bond Approach to Help Navigate Volatile Markets
T. Rowe Price Funds SICAV - Dynamic Global Bond Fund
Consistent returns through fixed income market cycles
The fund aims to deliver positive returns (after the deduction of costs and charges), comprising of income and growth, over rolling 3-year periods.
Risks - The following risks are materially relevant to the fund: ABS and MBS risk, Contingent convertible bond risk, Credit risk, Currency risk, Default risk, Derivatives risk, Emerging markets risk, High yield bond risk, Interest rate risk, Issuer concentration risk, Liquidity risk, Prepayment and extension risk, Sector concentration risk, Total return swap risk, Country (China) risk, Country (Russia and Ukraine) risk
The risk indicator shown if the risk of this product is small or high through a scale from 1 to 7 and is based on the SRI scale. Please read the Key Information Document. Past performance is not a reliable indicator of future performance.
Morningstar star rating applies to T. Rowe Price Funds SICAV Dynamic Global Bond Fund as at 31 December 2022.
* The manager is not constrained by the fund’s benchmark, which is used for performance comparison purposes only.
SICAV inception date
June 2015
BENCHMARK *
ICE BofA US 3-Month Treasury Bill Index
Lead Portfolio Manager
Arif Husain
STYLE
Defensive, moderate income
N◦ OF HOLDINGS
100-150
Morningstar star rating applies to T. Rowe Price Funds SICAV Dynamic Global Bond Fund as at 31 December 2022.
* The manager is not constrained by the fund’s benchmark, which is used for performance comparison purposes only.
THE TEAM
Arif Husain
Lead Portfolio Manager
Amanda Stitt
Portfolio Specialist
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If you have questions or would like more information about T. Rowe Price please contact us.
Key Fund risks - The following risks are materially relevant to the fund (refer to prospectus for further details): ABS and MBS - Asset-Backed Securities (ABS) and Mortgage-Backed Securities (MBS) may be subject to greater liquidity, credit, default and interest rate risk compared to other bonds. They are often exposed to extension and prepayment risk. Contingent convertible bond - Contingent Convertible Bonds may be subject to additional risks linked to: capital structure inversion, trigger levels, coupon cancellations, call extensions, yield/valuation, conversions, write downs, industry concentration and liquidity, among others. Credit - Credit risk arises when an issuer's financial health deteriorates and/or it fails to fulfill its financial obligations to the fund. Currency - Currency exchange rate movements could reduce investment gains or increase investment losses. Default - Default risk may occur if the issuers of certain bonds become unable or unwilling to make payments on their bonds. Derivatives - derivatives may result in losses that are significantly greater than the cost of the derivative. Emerging markets - Emerging markets are less established than developed markets and therefore involve higher risks. High yield bond - High yield debt securities are generally subject to greater risk of issuer debt restructuring or default, higher liquidity risk and greater sensitivity to market conditions. Interest rate - Interest rate risk is the potential for losses in fixed-income investments as a result of unexpected changes in interest rates. Issuer concentration - Issuer concentration risk may result in performance being more strongly affected by any business, industry, economic, financial or market conditions affecting those issuers in which the fund's assets are concentrated. Liquidity - Liquidity risk may result in securities becoming hard to value or trade within a desired timeframe at a fair price. Prepayment and extension - Mortgage- and asset-backed securities could increase the fund's sensitivity to unexpected changes in interest rates. Sector concentration - Sector concentration risk may result in performance being more strongly affected by any business, industry, economic, financial or market conditions affecting a particular sector in which the fund's assets are concentrated. Total return swap - Total return swap contracts may expose the fund to additional risks, including market, counterparty and operational risks as well as risks linked to the use of collateral arrangements. Country (China) - Chinese investments may be subject to higher levels of risks such as liquidity, currency, regulatory and legal risks due to the structure of the local market. Country (Russia and Ukraine) - Russian and Ukrainian investments may be subject to higher risks associated with custody and counterparties, liquidity, market disruptions, as well as strong or sudden political risks.
General fund risks - to be read in conjunction with the fund specific risks above. Counterparty - Counterparty risk may materialise if an entity with which the fund does business becomes unwilling or unable to meet its obligations to the fund. ESG and sustainability - ESG and Sustainability risk may result in a material negative impact on the value of an investment and performance of the fund. Geographic concentration - Geographic concentration risk may result in performance being more strongly affected by any social, political, economic, environmental or market conditions affecting those countries or regions in which the Fund’s assets are concentrated. Hedging - Hedging measures involve costs and may work imperfectly, may not be feasible at times, or may fail completely. Investment fund - Investing in funds involves certain risks an investor would not face if investing in markets directly. Management - Management risk may result in potential conflicts of interest relating to the obligations of the investment manager. Market - Market risk may subject the fund to experience losses caused by unexpected changes in a wide variety of factors. Operational - Operational risk may cause losses as a result of incidents caused by people, systems, and/or processes.
Important Information
This marketing communication is for investment professionals only. Not for retail distribution.
The SICAV 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”). The OEIC Funds are sub-funds of the T. Rowe Price Funds OEIC, an investment company with variable capital incorporated in England and Wales which is registered with the UK Financial Conduct Authority and which qualifies as a UCITS. Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents (KIID) 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 and via www.troweprice.com. A summary of investor rights for the T. Rowe Price Funds SICAV is available in English at www.troweprice.com . The Management Company reserves the right to terminate marketing arrangements.
This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision.
T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. 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.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
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It is not intended for distribution to retail investors in any jurisdiction.
Morningstar star rating applies to T. Rowe Price Funds SICAV – Dynamic Global Bond Fund as at 31 December 2022. The Morningstar Rating is updated on a monthly basis. For the latest ratings information please visit the Morningstar website.
Source & Copyright: Citywire. The Fund manager is rated by Citywire based on the manager’s 3 year risk adjusted performance. For further information on ratings methodology please visit www.aboutcitywire.com.
©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.
The risk indicator shown is applicable to the I class. Where the fund has no I class, the risk indicator for the Q class is shown. Please refer to the applicable KID for the current published risk profile.
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