The Emerging Markets Corporate Bond Full-Authority Composite is comprised of portfolios seeking current income and capital appreciation primarily through investment in a broader universe of fixed income corporate debt securities and quasi-sovereign debt securities issued by companies located or having a business activity in emerging/developing countries.
While largely focused on dollar-denominated corporate bonds, the composite has the ability to invest in local currency corporates as well as dollar-denominated sovereigns. The Full-Authority composite maintains broader discretion seeking to invest in the entire emerging markets corporate universe.
The DNA of the T. Rowe Price Emerging Markets Corporate Bond Strategy

Specialist expertise

Proprietary credit research and relative value analysis.

Risk aware

Well diversified across the emerging market opportunity set.

Collaborative approach

Across macroeconomic, equity and corporate debt teams to take a comprehensive view of corporate debt securities.

High conviction

A concentrated portfolio which showcases around 200 best investment ideas.

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Strategy Profile – Emerging Markets Corporate Bond Strategy

As of 30-Sep-2020

Benchmark
J.P. Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified
Risk Objectives
Tracking Error (average) 100-300 bps per annum
Expected Value Added
Security Selection 80%
Sector Selection 20%
Off-Index Parameters
Sovereign Debt Max 15%
Local Currency-Denominated Debt Max 10%

Risk Management Guidelines

Exposure and Liquidity Guidelines:

  • Country exposure will typically range ±20% from index.
  • Industry exposure will typically range ±20% from index.
  • Maximum of 3% per corporate issuer; 5% per quasi-sovereign issuer.
  • Own no more than 10% of an issuer’s debt.
  • Duration band target ±1 year of index.
  • No leverage.


Tracking Error Guidelines:

  • Expected tracking error range between 1.0%–3.0% per annum.
  • No more than 20% of tracking error sourced from any one industry.


Downside Risk Management:

  • Portfolio level scenario analysis.
  • Empirical duration stress testing.
  • Regular attribution analysis.

The above expected investment parameters and risk management guidelines are relative to the corresponding benchmark of strategy and represent anticipated ranges of exposure at the time of purchase. Market fluctuations may cause actual exposure to fall outside these ranges. Actual results may vary, and the information should not be considered or relied upon as a projection of future performance.

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Information contained in the T. Rowe Price website is not intended for investors in any jurisdiction in which distribution or purchase is not authorised, including the jurisdiction of the reader of this information, where applicable. For example, the information herein is not for distribution to and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America to or for the benefit of United States persons. In certain jurisdictions, such as Australia, an investor must qualify as a wholesale client. Information contained in this website is not for retail investors. Information obtained from this site is intended specifically for the individuals who have agreed to these Terms and Conditions and may not be redistributed without prior consent from the T. Rowe Price Legal department.

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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 website 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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Important Legal Information

This site is intended for Wholesale Clients. I have read the terms detailed below and confirm that I am a Wholesale Client and that I wish to proceed.

By accessing this website, you acknowledge that you have read the TERMS AND CONDITIONS (“T&Cs”) and agreed to the provisions set out in the T&Cs. In addition, you also consent to T. Rowe Price collecting information by way of cookies.

Information contained in the T. Rowe Price website is not intended for investors in any jurisdiction in which distribution or purchase is not authorised, including the jurisdiction of the reader of this information, where applicable. For example, the information herein is not for distribution to and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America to or for the benefit of United States persons. In certain jurisdictions, such as Australia, an investor must qualify as a wholesale client. Information contained in this website is not for retail investors. Information obtained from this site is intended specifically for the individuals who have agreed to these Terms and Conditions and may not be redistributed without prior consent from the T. Rowe Price Legal department.

The information is designed for wholesale clients in accordance with the definition set out in Australian Corporations Act, including financial intermediaries, and is published for informational purposes only.

Persons who do not fall into the definition of wholesale client should not act upon the information contained herein.

This website is for general informational purposes only. This does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and 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.

This website 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. This 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 website 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.

It is not intended for distribution to retail investors in any jurisdiction.

Issued in Australia by T. Rowe Price Australia Limited (ABN: 13 620 668 895 and AFSL: 503741), Level 50, Governor Phillip Tower, 1 Farrer Place, Suite 50B, Sydney, NSW 2000, Australia. For Wholesale Clients only.

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