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Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

The listed funds are not an exhaustive list of funds available. Visit to see the full range of funds offered by T. Rowe Price, including those that consider environmental and social characteristics as part of their investment process.  For up to date information regarding any T. Rowe Price fund's investment strategy, please see the relevant fund KID and prospectus. 

European High Yield Bond Fund
An actively managed and research-driven diversified portfolio of primarily European currency denominated high-yield corporate debt issued by below-investment-grade companies. Environmental, Social and Governance (ESG) considerations are integrated into the investment process as a component of the investment decision. The fund is categorised as Article 8 under Sustainable Finance Disclosure Regulation (SFDR).
ISIN LU0596125814
View more information on risks
30-Apr-2024 - Mike Della Vedova, Portfolio Manager,
We remain cautiously optimistic on the asset class. Though defaults could increase slightly amid challenges to economic growth, we believe they will remain around long-term averages as fundamentals are relatively resilient with many issuers prefunded at low interest rates. The European Central Bank easing monetary policy, potentially in the summer, could also lift risk sentiment.

Fund Summary
The fund invests mainly in BB and B rated bonds, with the ability to purchase lower-quality securities when compelling valuation and risk/reward opportunities arise. The strategy integrates fundamental proprietary research at the corporate bond, sovereign and equity levels, thus providing a holistic view of a company’s capital structure and management team. The promotion of environmental and/or social characteristics is achieved through the fund's commitment to maintain at least 10% of the value of its portfolio invested in Sustainable Investments, as defined by the SFDR. Additionally, we apply a proprietary responsible screen (exclusion list). The manager is not constrained by the fund’s benchmark, which is used for performance comparison purposes only.
Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

30-Apr-2024 - Mike Della Vedova, Portfolio Manager,
European high yield bonds posted slightly negative returns in euro terms in April. Spreads originally widened on higher-than expected US inflation, which revived the higher-for-longer interest rates narrative, and escalating tensions in the Middle East, before tightening in the second half of the month. Within the portfolio, our security selection decisions hindered the most while our asset allocation contributed modestly. Our holdings within the non-banking financial services and basic industry sectors dragged, led by a debt collector and aluminium product manufacturer. Our selection within wirelines and technology/electronics also detracted, although our exposures within forestry/paper and cable/satellite TV were supportive. Regarding asset allocation, our exposure to index derivatives added value given the spread widening in the first half of the month, as did our overweight positions in non-banking financial services and technology/electronics. Respective underweight and overweight stances in real estate and forestry/paper hurt, however, with the former continuing its year-to-date rally.
30-Jun-2022 - Michael Della Vedova, Portfolio Manager,

We continued to draw on our bottom-up fundamental research to identify names that we felt continued to offer long-term potential. Given limited issuance in primary markets over the period and the uncertain environment, we were more active in the secondary market. However, we remained selective, focusing on credits with stable fundamentals that have the potential to withstand uncertain economic environments. �

Long-term credit convictions drive industry allocation

With the ongoing macroeconomic and geopolitical uncertainties, including those arising from the Russia-Ukraine war, we continue to evaluate� potential implications on issuers in specific industries.� However, our research-based, flexible approach will remain important going forward as we expect to see greater market emphasis on fundamentals over the longer term.

The cable and satellite TV sector remained one of the portfolio's largest sector overweight positions. We remain positive on the overall outlook for this sector as it stands to benefit over the long term from trends in media consumption and stable, recurring revenue business models. We also remained overweight leisure and consumer-oriented service companies as we continue to return to normal pre-pandemic behavior in the region. However, we reduced this slightly over the period as rising costs could weigh on consumer demand, especially in a rising rate environment.�

By contrast, we maintain a corresponding underweight to wirelines, as many of the issuers face secularly declining businesses. We also maintained our underweight allocation to the traditional banking sector as we see less value in European banks compared with other segments of the European high yield market given the relatively lower interest rate outlook for Europe compared with the U.S.

In other moves, we also became overweight the building and construction sector and increased an underweight to transportation; however, this was mostly because of security-specific transactions.

B rated names continue to offer attractive relative value

Our overall rating allocation is a byproduct of our bottom-up security selection. While the near term could see further swings in market direction, we continue to identify names within the B rated category that offer attractive valuations relative to favorable fundamentals. These convictions drive our overweight exposure to the rating segment. We hold a corresponding underweight to the BB bracket, although we made efforts during the period to reduce this as many high-quality names have traded lower and now offer significant relative value.

Sovereign views and policies are a key input to risk assessment

Proprietary sovereign views serve as a key input in our overall risk assessment. Our research-based, flexible approach will be particularly important going forward. As different fiscal, monetary, political, and health responses play out between countries, our ability to capture dislocations can help reduce volatility in the portfolio while being best positioned for a continued post-pandemic recovery over the long term.

Divergent bankrupt policies and recovery rates across countries adds an additional layer of complexity, highlighting the importance of an active approach to high yield investing. We believe our research in this area helps us account for the different levels of risk related to variance in default and recovery policies and where spread levels offer the best compensation for these risks. Our holistic view of capital structures and willingness to invest in holding companies is reflected in an allocation to companies domiciled in Luxembourg. Any non-euro-denominated bonds are fully hedged back to the euro.

31-Dec-2023 - Mike Della Vedova, Portfolio Manager,
We remain overweight non-cyclical sectors, such as cable, with stable, recurring revenue models that could be supportive in a deepening economic slowdown. We are also overweight entertainment and leisure, on an idiosyncratic basis due to our preference for specific names. We also maintained our underweight exposure to the banking sector although we see value in non-banking financials as they continue to demonstrate an improved risk-reward profile, in our view. Our underweight to real estate was also increased slightly on an idiosyncratic basis.
31-Jul-2017 - Michael Della Vedova, Portfolio Manager,
We do not expect to add value via currency management and typically hedge our non-euro exposure back to euros to limit volatility, keeping the focus on credit selection.

Indicative Benchmark Data Source: ICE BofA Merrill Lynch

Past performance is not a reliable indicator of future performance.

Source for performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. 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. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures.

Daily performance data is based on the latest available NAV.  

The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents and/or key information document (KID) in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors. They can also be found along with a summary of investor rights in English at The Management Company reserves the right to terminate marketing arrangements.

Please note that the Fund typically has a risk of high volatility.

Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class.  The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.

The specific securities identified and described in this website do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.  


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Citywire Data Source: Citywire – where the fund manager is rated by Citywire, the rating is based on the manager’s 3-year risk adjusted performance. For further information on ratings methodology, please visit