Re: RPIEX - T. Rowe Price Dynamic Global Bond Fund. Just discovered this one. Price appears to classify it as an it as “alternative” investment. It comprises about 2% of RPGAX - so many of us have some exposure to it.
From Lipper: “The Fund seeks high current income. The Fund invests at least 80% of its net in bonds, and seeks to offer some protection against rising interest rates and provide a low correlation with the equity markets. It invests at least 40% of its net assets in foreign securities including securities of emerging market issuers.” Inception Date: 1/22/15.
M* gives it 1 star. Lipper ranks it 1 (lowest) for total return. Max Funds awards it 19 out of 100.
It appears the fund engages in short selling of bonds to hedge against (anticipated) rising rates. That probably explains a lot, as the Fed and other CBs seem to be doing everything in their power to hold the lid on still very low rates. Many alternative investment funds have struggled and disappointed. But it eludes me how what appears to be a bond fund from such a good house can be off 0.67% over 3 years.
I post only as a possible intellectual exercise for those so inclined. Not seriously considering owning this one.