T. Rowe Price Dynamic Global Bond (ETL0398AU) Report & Performance

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For T. Rowe Price Dynamic Global Bond

T. Rowe Price Dynamic Global Bond Fund Commentary September 30, 2023

Global government bond markets endured a torrid month as bond yields broadly climbed as resilient labor markets fueled expectations that interest rates would have to remain higher for longer to bring core inflationary pressures back to target. Within duration management, our U.S. Treasury curve steepening position and a short duration bias supported performance as yields climbed due to growing fiscal concerns and as investors focused on the higher-for-longer theme for policy interest rates. A Moody’s warning that a U.S. government shutdown, which was narrowly averted with a last-minute stopgap bill, could hurt the country’s AAA sovereign credit rating also weighed on bond markets. A short Italian duration bias also supported performance after policymakers flagged a wider fiscal deficit due to promised tax cuts. However, a long duration bias to Mexican and Colombian local currency government bonds and New Zealand duration weighed on performance amid a rising yield backdrop.

In foreign exchange markets, the U.S. dollar enjoyed a positive month, amid an upside surprise in core consumer price index inflation, better-thanexpected retail and services activity data and a revised Fed dot plot suggesting fewer interest rate cuts in 2024. The developments resulted in gains for our short positions in currencies including the euro, British pound, and the Polish zloty. However, a short position in the Swedish krona weighed on performance after the central bank raised interest rates.

Our defensive positioning in credit markets had a negative impact on performance as underlying government bond yields broadly climbed during the period. Within sectors, our select exposures to U.S. investment grade and high yield bonds weighed on performance. However, our short exposures to U.S. high yield and U.S. investment grade via credit derivatives supported performance in the latter half of the period as risk markets declined.

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Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
T. Rowe Price Dynamic Global BondETL0398AUManaged FundsFixed IncomeBonds - GlobalFixed Income - Bonds - Global IndexGlobal Aggregate Hdg Index744.97 M0.4%00.41%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
T. Rowe Price Dynamic Global Bond0.05%-0.42%-5.09%-0.45%2.51%3.63%4.25%3.35%-5.27%-7.93%-7.93%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
T. Rowe Price Dynamic Global BondFixed Income - Bonds - Global Index-10.03%0.03%-0.74%0.09%0.09%-0.157.85%5.81%-0.24-0.27

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
T. Rowe Price Dynamic Global BondYes-https://www.troweprice.com/corporate/us/en/home.html-

Product Due Diligence

What is T. Rowe Price Dynamic Global Bond

T. Rowe Price Dynamic Global Bond is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Bonds - Global Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The T. Rowe Price Dynamic Global Bond has Assets Under Management of 744.97 M with a management fee of 0.4%, a performance fee of 0 and a buy/sell spread fee of 0.41%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the T. Rowe Price Dynamic Global Bond has returned 0.05% in the last month. The previous three years have returned -0.45% annualised and 3.35% each year since inception, which is when the T. Rowe Price Dynamic Global Bond first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since T. Rowe Price Dynamic Global Bond first started, the Sharpe ratio is 0.28 with an annualised volatility of 3.35%. The maximum drawdown of the investment product in the last 12 months is -5.27% and -7.93% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The T. Rowe Price Dynamic Global Bond has a 12-month excess return when compared to the Fixed Income - Bonds - Global Index of -10.03% and 0.03% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. T. Rowe Price Dynamic Global Bond has produced Alpha over the Fixed Income - Bonds - Global Index of -0.74% in the last 12 months and 0.09% since inception.

What are similar investment products?

For a full list of investment products in the Fixed Income - Bonds - Global Index category, you can click here for the Peer Investment Report.

What level of diversification will T. Rowe Price Dynamic Global Bond provide?

T. Rowe Price Dynamic Global Bond has a correlation coefficient of -0.27 and a beta of -0.15 when compared to the Fixed Income - Bonds - Global Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on T. Rowe Price Dynamic Global Bond and its peer investments, you can click here for the Peer Investment Report.

How do I compare the T. Rowe Price Dynamic Global Bond with the Global Aggregate Hdg Index?

For a full quantitative report on T. Rowe Price Dynamic Global Bond compared to the Global Aggregate Hdg Index, you can click here.

Can I sort and compare the T. Rowe Price Dynamic Global Bond to do my own analysis?

To sort and compare the T. Rowe Price Dynamic Global Bond financial metrics, please refer to the table above.

Has the T. Rowe Price Dynamic Global Bond been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in T. Rowe Price Dynamic Global Bond?

If you or your self managed super fund would like to invest in the T. Rowe Price Dynamic Global Bond please contact via phone or via email .

How do I get in contact with the T. Rowe Price Dynamic Global Bond?

If you would like to get in contact with the T. Rowe Price Dynamic Global Bond manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the T. Rowe Price Dynamic Global Bond. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

The portfolio’s duration ended the period with a neutral bias, lower than the previous month. This was driven mainly by decreasing our U.S. duration bias, particularly in the medium and the longer-end of the curve due to the prospect of increased supplies amid a worsening fiscal backdrop. Broadly, we maintained a steepening bias.

In the eurozone, we broadly moved to a neutral duration bias in Germany from a short position on expectations that the European Central Bank is nearing the end of its policy tightening campaign. This was offset to some extent by increasing our short duration bias in Italy.

In the UK, we neutralised our short duration exposures in the gilt yield curve as economic data pointed to increasing economic headwinds.

Among other high-quality countries, we dynamically managed our exposure to Australian duration and moved towards a long duration stance at the end of the period as the central bank paused raising interest rates amid signs of slowing inflation. Elsewhere, we maintained our long duration stance in New Zealand and our short duration exposure in Japan.

We maintained exposures to inflation-linked bonds and swaps in the U.S. and the UK, where we believe core inflationary pressures are likely to remain sticky.

In emerging markets, we trimmed our long duration positions in Mexican local currency government debt as the central bank kept a cautious outlook on inflation. Elsewhere, we trimmed a long duration position in South Africa. Long positions were maintained in the local currency government bond markets of South Korea, Thailand, Brazil, Colombia, Serbia, Chile, and Indonesia.

In currencies, we dynamically managed our tactical long position on the U.S. dollar by increasing it earlier before trimming the size of the position later in the period. Among key moves, we closed our short euro position as inflationary pressures showed further signs of receding. We also initiated a short position on the Chinese yuan due to widening signs of weakness in the domestic economy and switched to a short position on the Canadian dollar.

Within sectors, we increased our defensive positions in the portfolio due to increased signs of weakness in the global economy. Accordingly, at the end of August, we removed a tactical long bias on European high-yield and increased our credit protection on U.S. high-yield debt via derivatives.

Performance Commentary - July 31, 2023

The portfolio’s duration ended the period at around three years, lower than the previous month.

This was driven mainly by decreasing our long duration bias in the U.S., particularly in the front end and the intermediate segment of the curve due to strong growth data. Broadly, we maintained a steepening bias in U.S. longer-dated maturities.

In the eurozone, we broadly moved to a neutral stance on eurozone duration and implemented a steepening bias on the yield curve due to a mixed macro landscape and as policymakers committed to a “datadependent approach” to future rate decisions.

In the UK, we reduced our short duration bias, mainly via trimming our short duration exposures at the long end of the gilt yield curve due to lower-than-expected inflation data.

Among other high-quality countries, we added to a short duration stance in Japan on expectations that the Bank of Japan’s policy change will pressure bond yields higher. Elsewhere, we reduced our long duration stance in Australia and removed a long duration position in Canada.

We maintained exposures to inflation-linked bonds and swaps in the U.S., the UK, and Germany where we believe core inflationary pressures are likely to remain sticky.

In emerging markets, we trimmed our long duration positions in Brazilian and Hungarian local currency government bonds. Elsewhere, long positions were added in local currency government bonds in Mexico and the Czech Republic. Long positions were maintained in the local currency government bond markets of South Korea, Thailand, South Africa, Colombia, Serbia, Chile, and Indonesia.

Performance Commentary - June 30, 2023

The portfolio’s duration ended the period at around five years, higher than the previous month.

This was driven mainly by increasing our duration bias in the U.S., particularly in the belly of the curve as we believe the risks of a recession are growing. Broadly, we increased a steepening bias in longer-dated maturities.

In the eurozone, we broadly maintained our short duration stance as the European Central Bank (ECB) reaffirmed its hawkish rhetoric despite growing economic headwinds. Broadly, we maintained our short duration stance in Germany and France as we expect interest rates to remain on an upward path.

In the UK, we increased our short duration bias, mainly via closing our long duration exposures at the short end of the gilt yield curve as the Bank of England implemented a larger-than-expected interest rate increase and warned more rate hikes were needed to dampen sticky inflationary pressures.

Among other high-quality countries, we kept our long duration positions in New Zealand, Australia, Israel, and Canada on growing concerns of a broadening economic slowdown.

We maintained exposures to inflation-linked bonds and swaps in Germany, U.S., and the UK where we believe core inflationary pressures are likely to remain sticky.

In emerging markets, we trimmed our long duration positions in Brazilian and Hungarian local currency government bonds. Elsewhere, long positions were maintained in the local currency government bond markets of Mexico, South Korea, Thailand, South Africa, Colombia, Serbia, Chile, and Indonesia.

Performance Commentary - May 31, 2023

The portfolio’s overall duration ended the period long duration with exposures, mainly driven by moving to a long duration position in the U.S.

as the Federal Reserve nears the end of its monetary tightening campaign. In the eurozone, we trimmed our short duration stance by reducing our short duration in the long end of the German bund curve as headline inflation slowed in May. We opened a short duration stance in France and maintained our long duration position in Italy.

In the UK, we moved to a short duration stance by introducing a curve steepening bias as inflationary pressures remain persistent in the backdrop of an upcoming heavy issuance calendar.

Among other high-quality countries, we maintained our long duration positions in Australia, New Zealand, and Canada. We held exposures to inflation-linked bonds and swaps in Germany and the UK where core inflationary pressures are likely to remain sticky, in our view.

In emerging market bonds, we reduced our long duration position in South African local currency bonds due to geopolitical concerns and a hawkish central bank. We introduced a long duration position in Chile as President Gabriel Boric was dealt a significant setback to his progressive reform agenda. We also added to a long duration position in Colombia and introduced a short duration position in Poland. Elsewhere, long positions were maintained in the local currency government bond markets of Brazil, Romania, Serbia, India, Philippines, Hungary, and Malaysia.

In currencies, we shifted to a tactical long on the U.S. dollar given a combination of positive short-term data flow as well as positioning and technical dynamics. We continue to believe, however, in the U.S. dollar regime change and hold a bearish view on the currency in the medium term. Among key moves, we shifted to a negative bias on the euro.

Elsewhere, we closed long positions in the Brazilian real, Mexican peso and the Hungarian forint. We also opened a short Chinese yuan stance as economic data deteriorated and shifted to a short position in the South African rand.

Within sectors, we remain cautious on the credit outlook as likely weakening economic growth and tightening liquidity conditions, especially in the U.S., could weigh on fundamentals. Accordingly, at the end of May, we increased our defensive credit hedges in U.S. high yield and investment grade via synthetic credit instruments. We also increased our defensive credit hedges in European high yield.

Throughout, we continued to isolate credit selection from market beta as a potential source of alpha with short-dated investment-grade credit attractive from a risk-adjusted yield basis.

Performance Commentary - April 30, 2023

The portfolio’s overall duration ended the period with under one year of duration. We continued to have a short duration position expressed in the U.S. as still-high inflation will likely keep interest rates higher for longer, in our view. In the eurozone, we trimmed our short duration stance by shifting to a long duration stance in Italy due to attractive valuations. However, we maintained our short duration stance in Germany on expectations of more policy tightening.

In the UK, our modestly long duration position was reduced in the latter half of the period as stronger-than-expected inflation data and tight labor markets raised expectations of more interest rate increases by the Bank of England. Among other countries, we increased our long duration position in Australia as policymakers kept interest rates unchanged at a policy review in April.

In other moves, we increased our short duration position in the intermediate section of the yield curve before a policy review by the Bank of Japan. We held exposures to inflation-linked bonds and swaps in Germany where core inflationary pressures are likely to remain sticky, in our view.

Performance Commentary - March 31, 2023

Bond markets broadly rallied in March as developments in the U.S. regional banking sector and some European banks fueled demand for safe-haven assets including sovereign bonds. Within duration management, short duration stances in the U.S., the UK, Italy, and Japan had a negative impact on performance as bond yields declined broadly in the backdrop of banking sector stress. An allocation to eurozone inflation breakevens also detracted. However, our long allocations to Mexican, New Zealand, Brazilian, Hungarian, South Korean, and Australian local currency government bonds supported performance.

In currency markets, the U.S. dollar weakened as expectations grew that the Federal Reserve would signal a pause in its monetary policy tightening campaign. The dollar also failed to benefit from a broad wave of risk aversion in global markets in March. The developments resulted in gains for our long position in the Colombian peso and a long Japanese yen position expressed using options. A short position in the Taiwanese dollar also supported performance. However, our long position in the Australian dollar weighed on performance.

Within sectors, the portfolio’s risk-seeking positions expressed in credit and equity markets contributed to performance as market sentiment improved in the second half of the month. In particular, exposures to U.S. and European high yield via credit derivatives supported. However, exposures to select U.S. high yield bonds weighed on performance.

Performance Commentary - February 28, 2023

The portfolio’s overall duration ended the period in negative territory. This was driven in part by adding to a short duration position in the U.S. due to a strong labor market and still-high inflation data.

Within the eurozone, we broadly maintained our overall short duration posture as we kept short duration positions in Germany and Italy on expectations of more ECB policy tightening. In the UK, our short duration position was maintained as we see the challenging backdrop of high inflation, and increased gilt issuance driving yields higher.

Among other countries, we trimmed a long duration position in Australia. Elsewhere we opened a new Japan long adding exposure in the long end of the curve. We also added to our long duration position in New Zealand and switched to a long duration stance in Canada. Elsewhere, we maintained long duration allocations in Israel and South Korea throughout. By contrast, we held to a short duration stance in China.

We held exposures to inflation-linked bonds and swaps in Germany where core inflationary pressures are likely to remain sticky, in our view. In emerging market bonds, long positions were maintained in the local currency government bond markets of Brazil, Mexico, Romania, Serbia, India, Hungary, South Africa, Malaysia, and the Czech Republic.

In currencies, our long U.S. dollar position was reduced as we pivoted toward implementing relative value positions. Among key moves, we moved to a short position in the euro and removed a short position in the Swedish krona. We opened a long position in the Australian dollar while we maintained a short position in the New Zealand dollar. Elsewhere, we added to our short position in the British pound.

Within sectors, we remain cautious on the credit outlook, with the Fed still needing to tighten further amid persistent inflationary forces. Accordingly, at the end of February, we held defensive credit hedges in the portfolio with short positions expressed via synthetic credit instruments in U.S. and European high yield. However, we removed our defensive positions via synthetic credit instruments in U.S. investment grade.

Throughout, we continued to isolate credit selection from market beta as a potential source of alpha with short-dated investment-grade credit attractive from a risk-adjusted yield basis.

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