T. Rowe Price Global High Income Fund
Exciting companies. Compelling income.
If you don't think fixed income is exciting, think again.
The high yield universe is full of exciting opportunities both established and growing. The likes of Hilton, Chobani, Avis and Land Rover are all high yield issuers.1
And, with an average return of 8%2 over the last 40+ years, it's not just exciting but compelling too.
How a great connection can help clients achieve their income objectives
Watch Co-Portfolio Managers Michael Connelly and Sami Muaddi share some stories of their investment careers and how they work together to find the right income opportunities for clients.
Global High Income Strategy
Hi, my name is Michael Connelly, I'm Samy Muaddi and we are Co-Portfolio managers of the T. Rowe Price Global High Income Strategy.
So I'm originally from Wisconsin, but I've been at T. Rowe for over 20 years.
I started out as an analyst in the US high yield and but split my time between London and Baltimore covering US high yield and European high yield.
So that really gave me a global perspective on investing in high yield bonds.
So I've spent my entire 20 year career in T. Rowe Price emerging market debt.
It would be disingenuous if I said that was the plan.
I was a first generation college grad and didn't know much about the industry, but T. Rowe took me in and developed me.
My primary interest was economic development and I quickly realised that emerging market debt sits at the intersection between capital markets and development.
So that's what attracted me into the industry and why I've stayed here this long.
I started here when I was hired as the first emerging market corporate analyst at T. Rowe, right?
And so we've been in that industry now over my career of 20 years.
But what was really important to me early on is being able to draw on lessons from your team because we've been doing high yield bond investing for over 40 years.
So a lot of those corporate balance sheet lessons in the developed world have really translated over my career into early lessons on the emerging market side.
But I would say we both at our heart our analysts and that's how we approach a lot of our investing is with an analyst hat on.
That's what we're we grew up doing, that's what we're known for and that's what makes us successful.
One is it's global focused.
If you look at the high yield bond market, it started off as primarily a US bond market, but over the last 20 plus years the US opportunity set is really only about half of your opportunity set and if you include bank loans in that, it's only about 1/3.
So if you are excluding about 2/3 of your opportunity set, you're leaving potential performance on the table.
So I think global high incomes, global opportunity set really sets it apart.
The second one is portfolio construction.
We focus on our highest conviction ideas and focus on credits that have a clear catalyst for our performance.
We've run a little bit more of a concentrated portfolio and letting those highest conviction ideas really drive performances is unique.
So I think what's important too is that global research platform in the pursuit of excess return gives us a lot of tools to work with.
So we don't have to rely on just carry or out yielding the benchmark as a source of excess return.
And because we're focused on the actual bottom up ideas rather than just putting more yield in the portfolio, it allows the strategy to be more resilient on the draw down.
I think that's an important distinguishing factor.
So I think a good example of where our process made a difference is, is right now with the chemical sector, it's undergoing a difficult fundamental period of time and which is usually when you want to buy some of those cyclical industries.
However, our analysts both in high yield and emerging markets identified that companies are seeing some really weak fundamentals.
We reached out to our equity energy analyst who was in the Middle East and talked about Middle East companies moving downstream, which means more chemical production capacity that's negative for the supply environment.
We also reached out to our sovereign analyst who covers China and he was talking about how they are building more capacity in chemicals ahead of 2029 environmental standards, which all of this paints a really negative supply market that formed our opinion on chemicals.
And we're, we're underweight under risk, but I think that's a good example of how we can pull together all these resources to create better outcomes for our clients.
And that collaboration with the sovereign team that you highlight, that's especially critical in emerging market debt because 25% to 30% of the companies that we invest in have some degree of state ownership.
I go back, one, you know, important Inflexion point in my industry was during the Russia Ukraine war.
And it was our sovereign analysts who actually foresaw the sanctions risk that could happen if the war were to arrive and keep us out of Russia, out of Ukraine, which really preserved capital in a very important time in 2022.
On behalf of Samy Muaddi and myself, we thank you for your interest in Global High Income.
1 As of 31 December 2025. The above represents examples of high yield issuers in Bloomberg US Corporate High Yield Index USD Unhedged. The specific securities identified and described are for informational purposes only and do not represent recommendations.
2 Past performance is not a guarantee or a reliable indicator of future results. Market return is represented by the US High Yield market, which has the longest track record, Bloomberg US Corporate High Yield Bond Index, Annualised index returns from 30 June 1983 to 31 December 2025.
Upcoming webinar
Solving the income problem for clients in 2026
Join our 26 March webinar to hear the latest insights and opportunities from the high yield universe with Baltimore-based Portfolio Manager, Michael Connelly. And, why high yield can be the right solution for investors seeking regular and stable income.
Date: Tuesday, 26 March 2026
Time: 11:00 AM AEDT
Duration: 30 minutes
Why T. Rowe Price Global High Income Fund?
Exciting companies
Includes established companies like Avis, Chobani, Nissan Motor Acceptance and TUI Cruises3
Compelling income
Current yield of 7.70% p.a.4
Powerful compounding
Grow your investment through compounding returns
Low defaults
Actively managed with significantly lower defaults than market average
3 As of 31 December 2025. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable.
4 As of 31 January 2026. Past performance is not a guarantee or a reliable indicator of future results. The current yield of the Fund reflects the market-weighted average of coupon divided by price per security.
Strong market performance over time
Average return of
8%
over the last 40+ years*
U.S. High Yield Return (Rolling 36-Month, Annualised)*
As of 30 June 2025
Past performance is not a guarantee or a reliable indicator of future results.
Index referred to is Bloomberg US Corporate High Yield Index USD Unhedged.
Source: Bloomberg. Data from Jan-1987 to Jun-2025. Returns in U.S. dollars.
*Assumes reinvestment of coupon. Total return since 30 June 1983 to 31 December 2025.
Want to better position high yield in your clients' portfolios?
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T. Rowe Price Global High Income Fund - I class
APIR: ETL0793AU
| Inception date | 4 May 2020 |
| Benchmark | ICE BofA Global High Yield Index Hedged to AUD |
| Management fee | 0.62% pa6 |
| Ratings | Lonsec: 4 - Recommended Zenith: Recommended |
Fund literature
When you usually head down the path of fixed income investments like bonds, you probably expect to find more defensive investments designed to balance or protect a portfolio of growth assets like equities.
But did you know there is a universe of bonds which are issued by successful global companies, many of which you would have heard of which have also historically delivered strong income and attractive risk-adjusted returns.
The T. Rowe Price Global High Income Fund is made up of around 150 to 200 high yield securities issued by high potential companies and diversified across countries, regions and industries. By investing in these securities, the Fund aims to seek income, grow your capital and help diversify your portfolio.
High yield bonds while riskier than government or investment grade bonds tend to perform in a similar style to equity markets while historically exhibiting around half of the volatility. So they can be a very effective addition for investors looking to find additional sources of return.
As you can imagine, in a truly global high yield portfolio, there are thousands of bonds around the world to choose from, with around 50% in the U.S., 30% in Europe and 20% across the rest of the world. So finding the right securities is a massive task and requires a lot of expertise and skill. That's why the fund is managed by three portfolio managers. Each one an expert in a specific high yield market. And of course, they are supported by the T Rowe Price global research platform with over 800 investment professionals around the world, sharing insight and analysis, including over 240 fixed income specialists and global high yield analysts.
So if you're looking for a clear path to an investment that's expertly managed and designed to seek income for investors, the T. Rowe Price Global High Income Fund could be just what you're looking for.
202402-3400021
Invest via platform
The T. Rowe Price Global High Income Fund is available via BT Panorama, Hub24, Netwealth, CFS Edge, North and Macquarie Wrap.
Past performance is not a guarantee or a reliable indicator of future results.
6 The Management Fee for the T. Rowe Price Global High Income Fund - I Class is 0.62% p.a. and the Indirect Cost is 0.00% p.a. Full details of other fees and charges are available within the Fund's Product Disclosure Statement and Reference Guide.
Position your client portfolios to thrive in changing markets
Set up a one-on-one consultation with a dedicated adviser relationship manager to better understand how a high yield allocation fits in your clients' portfolios.
Helping clients stay informed
Our insights show you what's ahead, what's most important, and how our investment teams are responding now - so you have the full picture.
Feb 2026
From the Field
How the new AI economy is reshaping global credit markets
Aug 2025
From the Field
A new era of global high yield: Stronger, larger, and more diverse
Jul 2025
Monthly Market Playbook
Taking a measured approach with high yield bonds
Jun 2025
From the Field
High yield — the name says it all
Jun 2025
On the Horizon
Bonds with credit risk may outperform government debt
Risk (please read the PDS for further details)
Medium. The following risks are materially relevant to the Fund.
High yield bond risk: a bond or debt security rated below BBB- by Standard & Poor’s or an equivalent rating, also termed ‘below investment grade’, is generally subject to higher yields but to greater risks too.
Geographic concentration risk: to the extent that a fund invests a large portion of its assets in a particular geographic area, its performance will be more strongly affected by events within that area.
Emerging markets risk: emerging markets are less established than developed markets and therefore involve higher risks.
Investor profile
The Fund may be suitable for investors who:
- Want to generate income and investment growth over the long term.
- Gain global exposure to corporate issuers primarily rated below investment grade.
- Wish to capitalise on an expanding global opportunity set with potential to profit from market efficiencies and volatility between regions.
- The Fund may be suitable for investors seeking the potential for a high level of current income and some appreciation over time and can accept the risk associated with investments in global fixed income securities as well as those associated with the use of derivatives.
The Fund may not be suitable for investors who:
- Are unable to accept the risk associated with investments in global fixed income securities as well as those associated with the use of derivatives.
- Have an investment time horizon of less than five years.
Additional Information
The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the portfolio, and no assumptions should be made that the securities identified and discussed were or will be profitable.
Bloomberg and ICE BofA do not accept any liability for any errors or omissions in the indexes or data, and hereby expressly disclaim all warranties of originality, accuracy, completeness timeliness, merchantability and fitness for a particular purpose. No party may rely on any indexes or data contained in this communication. Visit https://www.troweprice.com/en/au/market-data-disclosures for additional legal notices & disclaimers.
Important Information
Available in Australia for Wholesale Clients only. Not for further distribution.
Equity Trustees Limited (“Equity Trustees”) (ABN: 46 004 031 298, AFSL: 240975), is the Responsible Entity for the T. Rowe Price Australian Unit Trusts (""the Fund""). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN: 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).
This material has been prepared by T. Rowe Price Australia Limited (""TRPAU"") (ABN: 13 620 668 895, AFSL: 503741) to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither TRPAU, Equity Trustees nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.
Past performance is not a guarantee or a reliable indicator of future results. You should obtain a copy of the Product Disclosure Statement, which is available from Equity Trustees (www.eqt.com.au/insto) or TRPAU (www.troweprice.com.au), before making a decision about whether to invest in the Fund named in this material.
The Fund’s Target Market Determination is available here. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.
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 material 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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