By T. Rowe Price | May 21, 2021

With Canadian bond yields having been close to record lows, investors may need to consider broadening their horizons for potentially higher yields and/or diversify away from the local interest rate cycle. Ken Orchard, Samy Muaddi and Terry Moore, portfolio specialists with T. Rowe Price’s Fixed Income Division, believe Canadian investors will need to increase their exposure to global fixed income to gain access to a historically reliable source of uncorrelated returns and add some protection against Canadian inflation and interest rate risk. 

Venturing into foreign markets, however, is no simple task. Investing in a wider range of markets and instruments brings additional risks, which means that credit, rates and currency exposures must be carefully managed. As Moore points out, managing currency risk is a key requirement of a global fixed income strategy that can add considerable value. This is also why T. Rowe places great emphasis on intensive research, careful selection and rigorous risk management. Read the short article below to learn more about how T. Rowe Price navigates through the breadth and complexity of the global fixed income market. 

Investors can see their active, highly selective and flexible approach in action with the new Canada Life™ Global Multi-Sector Bond and Global Growth Balanced Funds.

The views expressed in this commentary are those of this fund manager as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Prospective investors should review the offering documents relating to any investment carefully before making an investment decision and should ask their financial advisor for advice based on their specific circumstances. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.

Canada Life and design, and Canada Life Investment Management and design are trademarks of The Canada Life Assurance Company.