U.S. High Yield Fund - I Classa

The fund normally invests at least 80% of its net assets in U.S. high yield instruments (below investment grade) corporate debt securities. The fund focuses its investments on high yield corporate bonds but may also invest in other income producing instruments including bank loans, convertible securities, and preferred stocks. In selecting bonds, the portfolio manager utilizes a disciplined, fundamental, bottom-up credit selection process, combined with forward-looking research to identify a concentration of high conviction total return opportunities. The income provided by the bond and the bond's appreciation potential, as well as the issuer's ability to make coupon and principal payments are also evaluated.

All investments are subject to risk, including the possible loss of principal. Fixed-income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall. Investments in high-yield bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.

TUHIXCUSIP 741481600
Prospectus

Morningstar (Category)

Morningstar
(Overall Rating)1

High Yield Bond
  (620 funds)

Data as of 09/30/2020

Data as of 09/30/2020

Fund Manager Tenurea

Net Assets3
(USD)

7yrs
$383.0m

Data as of 09/30/2020

Data as of 09/30/2020

Price
(USD)

Daily Price Change

$9.58
$0.00

Data as of 10/30/2020

Data as of 10/30/2020

Morningstar Ratings™ are based on risk-adjusted returns. Click on "Overall Rating" for the fund's 3-, 5-, and 10-year (if applicable) Morningstar Ratings™.

Kevin Loome, CFA
Kevin Loome, CFA, Portfolio Manager

Kevin Loome is a portfolio manager in the Fixed Income Division. He has lead portfolio management responsibilities for the US High Yield Bond Strategy. He is an executive vice president of the High Yield Fund, Inc., and a member of the Investment Advisory Committee for the U.S. High Yield Fund. Kevin also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

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Strategy

Investment Objective

The fund seeks total return, and secondarily, current income.

Morningstar Fixed Income Style

Low / Limited

Data as of 09/30/2020

The Morningstar Style Box™, a proprietary Morningstar data point, is a 9-square grid that provides a graphical representation of the "investment style" of stocks and mutual funds. See disclaimer at bottom of page for more information.

Morningstar Rating

Period Rating Funds In Category (High Yield Bond)
Overall 620
3 Years 620
5 Years 534
10 Years N/A 350

The Morningstar Rating™ for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.

Yields & Dividends (I Class)

30-Day SEC Standardized Yield
with waiver
5.71%

Data as of 09/30/2020

without waiver
5.65%

Data as of 09/30/2020

30-Day Annualized Dividend Yield
with waiver
5.94%

Data as of 10/30/2020

Monthly Dividend
(USD)
$0.048642279

Data as of 09/30/2020

Monthly Dividend
Rate
0.05%

Data as of 10/30/2020

Average Annual Total Returns (I Class)*

1 YR
4.09%
Benchmark
2.22%
Value
1.87% 1.87%

Data as of 09/30/2020

3 YR
4.42%
Benchmark
3.81%
Value
0.61% 0.61%
5 YR
7.22%
Benchmark
6.60%
Value
0.62% 0.62%
Since Inception
6.08%
Benchmark
4.74%
Value
1.34% 1.34%

Expense Ratio

Gross
0.72%
Net
0.64%
Limitation Type
Contractual
expires 09/30/2021

Benchmark: ICE BofAML US High Yield Constrained Index

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when you sell your shares. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions.

*The Fund commenced operations on May 19, 2017.  Performance prior to that date reflects the performance of the Class I of the Predecessor Fund.  Predecessor Fund performance reflects its actual operating expense at the time and was not adjusted to reflect the impact of the Fund’s current fees.  Since inception returns are shown from the inception date of the Predecessor Fund, April 30, 2013.

The 30-day dividend yield represents the average daily dividends for the 30-day period, annualized and divided by the net asset values per share at the end of the period; it is available the first quarter after the fund's inception. The SEC standardized yield is computed under an SEC standardized formula and reflects an estimated yield to maturity (assuming all portfolio securities are held to maturity); it is available the first month after the fund's inception.

The gross expense ratio reflects the fund expenses as stated in the fee table of the fund's prospectus prior to the deduction of any waiver or reimbursement. The net expense ratio reflects fund expenses after the deduction of any waiver or reimbursement.  If a fund has an active contractual expense limitation, the expiration date is shown below the gross and net expense ratio values above.  Expense ratios are as of the most recent prospectus.

Current Year Performance (I Class)*

Daily YTD
1.30%
Benchmark
0.07%
Value
1.23%

Data as of 10/30/2020

Monthly YTD
0.88%
Benchmark
-0.38%
Value
1.26%

Data as of 09/30/2020

One Month
-1.24%
Benchmark
-1.04%
Value
-0.20%
Three Months
4.69%
Benchmark
4.70%
Value
-0.01%

Benchmark: ICE BofAML US High Yield Constrained Index

*The Fund commenced operations on May 19, 2017.  Performance prior to that date reflects the performance of the Class I of the Predecessor Fund.  Predecessor Fund performance reflects its actual operating expense at the time and was not adjusted to reflect the impact of the Fund’s current fees.  Since inception returns are shown from the inception date of the Predecessor Fund, April 30, 2013.

Asset Allocation

Net Assets
(USD)
$383.0m
Largest US Bonds 84.02% $321.8m
Other View complete Asset Allocation

Data as of 09/30/2020

Holdings

Total
Holdings
127
Largest Holding Targa Resources Partners LP / Targa Resources Partners Finance 2.00% Was (06/30/2020) 1.96%
Other View complete Full Holdings
Top 10 Issuers 15.42% View the latest Top 10 Issuers

Data as of 09/30/2020

Quality

N/A

Maturity

Weighted Average

5.55 Years

Duration

Weighted Average

3.40 Years

Top

B Rated
29.15%
Was (08/31/2020) 26.80%

Top

5-7 Years
31.23%
Was (08/31/2020) 31.23%

Top

3-5 Years
38.77%
Was (08/31/2020) 37.77%

Over

CCC and Below
By 12.03%
Fund 23.74%
Benchmark 11.71%

Over

7-10 Years
By 4.92%
Fund 25.66%
Benchmark 20.74%

Over

3-5 Years
By 4.80%
Fund 38.77%
Benchmark 33.97%

Under

BB Rated
By -33.66%
Fund 21.59%
Benchmark 55.25%

Under

10+ Years
By -6.88%
Fund 1.15%
Benchmark 8.03%

Under

Under 1 Year
By -5.89%
Fund 5.84%
Benchmark 11.73%

Data as of 09/30/2020

Benchmark: ICE BofAML US High Yield Constrained Index

Industry

Total
Industries
18
Largest Industry Energy 14.80% Was (08/31/2020) 15.77%
Other View complete Industry Diversification

Data as of 09/30/2020

Benchmark: ICE BofAML US High Yield Constrained Index

Over

Retail
By 4.18%
Fund 9.09%
Benchmark 4.92%

Under

Healthcare
By -3.69%
Fund 5.47%
Benchmark 9.16%

Data as of 09/30/2020

Currency

Total
Currencies
1
Largest Currency U.S. dollar 100.00% Was (08/31/2020) 100.00%
Other View complete Currency Diversification

Data as of 09/30/2020

Benchmark: ICE BofAML US High Yield Constrained Index

Over

U.S. dollar
By 0.00%
Fund 100.00%
Benchmark 100.00%

Under

U.S. dollar
By 0.00%
Fund 100.00%
Benchmark 100.00%

Data as of 09/30/2020

Numbers may not total due to rounding; all numbers are percentages.

Team (As of )

Kevin Loome, CFA

Kevin Loome, CFA
Portfolio Manager

Kevin Loome is a portfolio manager in the Fixed Income Division. He has lead portfolio management responsibilities for the US High Yield Bond Strategy. He is an executive vice president of the High Yield Fund, Inc., and a member of the Investment Advisory Committee for the U.S. High Yield Fund. Kevin also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

  • Fund manager
    since 2013
  • Years at
    T. Rowe Price 14
  • Years investment
    experience 27
Gregor T. Dannacher, CFA

Gregor T. Dannacher, CFA
Portfolio Specialist

Gregor Dannacher is a global credit portfolio specialist in the Fixed Income Division. He supports the Multi-Asset Credit, Global High Income, Global High Yield, US High Yield, Global Loan, and US Investment-Grade Strategies, working closely with clients, prospects, and consultants. Gregor is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

  • Years at
    T. Rowe Price 5
  • Years investment
    experience 28

For a complete list of the members of the fund's Investment Advisory Committee, please refer to the fund's prospectus.

How to Invest

View platform information
Share Class Min Initial Investment (USD) Min Subsequent Investment (USD) 12b-1 Fee Expense Ratio
Gross Net Limitation Type Limitation Expiration Date
I Class
Cusip 741481600
$1,000,000* N/A 0.00% 0.72% 0.64% Contractual 09/30/2021
Advisor Class
Cusip 741481501
$2,500 $100 0.25% 1.12% 0.94% Contractual
09/30/2021
Investor Class
Cusip 741481402
$2,500 $100 0.00% 0.87% 0.79% Contractual
09/30/2021

* Minimum initial investment $1,000,000. Minimum is generally waived for intermediaries, certain retirement plans, and certain institutional client accounts.

1

© 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

2

Number of years managing the fund.  In the case of co-portfolio management, the longer tenure is displayed.

3

Figure applies to all share classes.

a

The T. Rowe Price US High Yield Fund (“Fund”) commenced operations on May 19, 2017.  At that time, the Fund received all of the assets and liabilities of the Henderson High Yield Opportunities Fund (the “Predecessor Fund”) and adopted its performance and accounting history.  The Fund and the Predecessor Fund have substantially similar investment objectives and strategies.  The Predecessor Fund was managed by the same portfolio manager as the Fund.

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