The Asia Credit Bond Strategy seeks to maximise total return through income generation and capital appreciation, consistent with prudent investment management. The strategy invests mainly in a diversified portfolio of transferable US dollar denominated fixed income securities of issuers domiciled, or exercising the predominant part of their economic activity, in Asian countries including emerging markets, excluding Japan.
The DNA of the T. Rowe Price Asia Credit Bond Strategy

Risk aware

A comprehensive risk management process utilizing bottom-up research, diversification and ESG parameters and quantitative analysis.

Collaborative approach

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

Deep research

The breadth and depth of our global research provides a critical information edge.

Specialist expertise

Over 25 years of experience1 investing in emerging market debt through various market cycles.

1 T. Rowe Price began investing in emerging market debt in 1990.

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Strategy Profile – Asia Credit Bond Representative Portfolio

As of 31 December 2020.

Benchmark
J.P. Morgan Asia Credit Index Diversified
Risk Objectives
Tracking Error (average) 175-325 bps per annum
Expected Value Added
Security Selection 80%
Sector Selection 20%
Other Parameters
Duration ±1 year versus the benchmark
Country/Sector/Rating ±20% versus the benchmark
Non-USD Allocation Max 10%

The representative portfolio is an account in the composite we believe most closely reflects current portfolio management style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio shown may differ from those of other accounts in the strategy. Please see the GIPS®Composite Report for additional information on the composite.

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 1.75%–3.25% 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

There is no guarantee that the portfolio will remain within the anticipated ranges of exposure. The risk management guidelines are for informational purposes only and they can be changed without prior notice at any time.

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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.

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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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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