Fund Evaluator:

T. Rowe Price Emerging Markets Bond Z Overview

T. Rowe Price Emerging Markets Bond Z (TREZX) is an actively managed Taxable Bond Emerging Markets Bond fund. T. Rowe Price launched the fund in 2020.

The investment seeks to provide high income and capital appreciation. The fund will normally invest at least 80% (and potentially all) of its net assets (including any borrowings for investment purposes) in debt securities of emerging market governments or companies located in emerging market countries. The fund’s investments in debt securities typically consist of a mix of both sovereign bonds and corporate bonds. The advisor considers frontier markets to be a subset of emerging markets and any investments in frontier markets will be counted toward the fund's 80% investment policy. The fund is non-diversified.

About T. Rowe Price Emerging Markets Bond Z (TREZX)

There are 2 members of the management team with an average tenure of 3.59 years: Samy Muaddi (2020), Richard Hall (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: JPM EMBI Global Diversified TR USD index with a weighting of 100% and Lipper EM Hard Currency Debt Funds index with a weighting of 100%. T. Rowe Price Emerging Markets Bond Z has 450 securities in its portfolio. The top 10 holdings constitute 13.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

T. Rowe Price Emerging Markets Bond Z is part of the Fixed Income global asset class and is within the Taxable Bond fund group. T. Rowe Price Emerging Markets Bond Z has 92.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 92.4% (0.3% domestic bond, 92.2% foreign bond and 0.1% convertible bond). T. Rowe Price Emerging Markets Bond Z has 7.3% of the portfolio in cash.

Assets Under Management

The fund has $3 billion in total assets, which is above the $325 million average for the Emerging Markets Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

TREZX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The T. Rowe Price Emerging Markets Bond Z expense ratio is low compared to funds in the Emerging Markets Bond category. T. Rowe Price Emerging Markets Bond Z has an expense ratio of 0.00%, which is 100% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. T. Rowe Price Emerging Markets Bond Z has a portfolio turnover rate of 53%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 83% for the Emerging Markets Bond category.

Recently, in the month of July 2026, T. Rowe Price Emerging Markets Bond Z returned -1.2%, which earned it a grade of D, as the Emerging Markets Bond category had an average return of -0.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

T. Rowe Price Emerging Markets Bond Z has a trailing yield of 6.79%, which is above the 5.99% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

T. Rowe Price Emerging Markets Bond Z Grades

Year to date, the fund has returned 2.9%, 0.4 percentage points better than the category, which translates into a grade of B. The fund has returned 10.8% over the past year (grade of A), 10.9% over the past three years (grade of A) and 3.4% per year over the past five years (grade of B) and 3.6% per year over the past 10 years (grade of C).

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