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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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SICAV

European High Yield Bond Fund

Research-driven, targeting consistent high income.

ISIN LU0596126200 Bloomberg TREHYSD:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(EUR)

1.28%
€202.1m

1YR Return
(View Total Returns)

Manager Tenure

1.59%
6yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.02
2.13%

Inception Date 14-Feb-2014

Performance figures calculated in EUR

Other Literature

Michael Della Vedova
Michael Della Vedova, Portfolio Manager

Mike Della Vedova is a global high yield portfolio manager in the Fixed Income Division. He is a portfolio manager for the Europe High Yield Bond Strategy and co-portfolio manager for the Global High Yield Bond Fund and Global High Income Bond Strategy. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

 

Strategy

Investment Objective

To maximise the value of its shares through both growth in the value of, and income from, its investments. The fund invests mainly in a diversified portfolio of high yield corporate bonds that are denominated in European currencies.

Investment Approach

  • The fund focuses primarily on European currency-denominated corporate debt issued by below investment-grade companies.
  • 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 fund integrates fundamental proprietary research at the corporate bond, sovereign, and equity levels. This integral collaboration provides a holistic view of a company’s capital structure and management team, as well as its position in the larger market environment unique to each country.
  • Research focuses on quantitative and qualitative factors that drive an independent credit rating. Analysts look to identify long-term potential for balance sheet and external rating improvements while adhering to strict risk management practices.
  • Target excess-return will be primarily driven by individual security selection and, secondarily, by relative sector and credit quality allocations.

Portfolio Construction

  • At least 80% of assets will be invested in securities denominated in European currencies—mainly the euro and the pound.
  • Currency exposure is fully hedged back to the euro.
  • Up to 20% of assets may be invested outside of European currencies, including U.S. dollar high yield and investment-grade corporate bonds.
  • Target tracking error: 200–400 basis points

Performance (Class Sd)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 1.59% 1.28% 3.86% 4.48%
Indicative Benchmark % -0.08% 1.45% 3.82% 3.74%
Excess Return % 1.67% -0.17% 0.04% 0.74%

Inception Date 14-Feb-2014

Indicative Benchmark: ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Data as of  31-Oct-2020

Performance figures calculated in EUR

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 1.05% 1.51% 4.34% 4.51%
Indicative Benchmark % -0.55% 1.67% 4.37% 3.72%
Excess Return % 1.60% -0.16% -0.03% 0.79%

Inception Date 14-Feb-2014

Indicative Benchmark: ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Data as of  30-Sep-2020

Performance figures calculated in EUR

Recent Performance

  Month to DateData as of 27-Nov-2020 Quarter to DateData as of 27-Nov-2020 Year to DateData as of 27-Nov-2020 1 MonthData as of 31-Oct-2020 3 MonthsData as of 31-Oct-2020
Fund % 4.69% 4.92% 3.87% 0.22% 1.86%
Indicative Benchmark % 4.18% 4.60% 1.92% 0.40% 1.19%
Excess Return % 0.51% 0.32% 1.95% -0.18% 0.67%

Inception Date 14-Feb-2014

Indicative Benchmark: ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Indicative Benchmark: ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Performance figures calculated in EUR

Past performance is not a reliable indicator of future performance.  Source for fund 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. 

Please note that no management fees are charged to the S and J share classes. No administration agent fees are charged to the J class. Fee arrangements for the S and J classes are made directly with the investment manager. Please see the prospectus for further information.

Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 27.99% Was (30-Sep-2020) 28.73%
Other View Top 10 Issuers

Monthly data as of31-Oct-2020

Holdings

Total
Holdings
94
Largest Holding Iceland Bondco 3.16% Was (30-Jun-2020) 2.99%
Top 10 Holdings 23.74%
Other View Full Holdings Quarterly data as of 30-Sep-2020

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating B Rated BB Rated
By % 26.64% -50.91%
Fund 48.87% 19.92%
Indicative Benchmark 22.23% 70.84%

Average Credit Quality

B

Monthly Data as of 31-Oct-2020
Indicative Benchmark:  ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Sources for Credit Quality Diversification: Moody's Investors Service and Standard & Poor's (S&P) split ratings (i.e. BB/B and B/CCC) are assigned when the Moody's and S&P ratings differ. Short-Term holdings are not rated.

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity 7-10 Years 3-5 Years
By % 8.48% -8.78%
Fund 19.92% 33.15%
Indicative Benchmark 11.44% 41.93%

Weighted Average Maturity

5.18 Years

Monthly Data as of 31-Oct-2020
Indicative Benchmark:  ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Under 1 Year 5-7 Years
By % 10.13% -7.61%
Fund 12.88% 8.17%
Indicative Benchmark 2.74% 15.77%

Weighted Average Duration

3.37 Years

Monthly Data as of 31-Oct-2020
Indicative Benchmark: ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Industry

Total
Industries
26
Largest Industry Financial Services 12.20% Was (30-Sep-2020) 14.21%
Other View complete Industry Diversification

Monthly Data as of 31-Oct-2020

Indicative Benchmark: ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Largest Overweight

Financial Services
By7.37%
Fund 12.20%
Indicative Benchmark 4.83%

Largest Underweight

Automotive
By-5.88%
Fund 6.45%
Indicative Benchmark 12.32%

Monthly Data as of 31-Oct-2020

Countries

Total
Countries
19
Largest Country United States 23.20% Was (30-Sep-2020) 22.09%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2020

Indicative Benchmark: ICE BofAML European Currency High Yield Constrained Excluding Subordinated Financials Index Hedged to EUR

Largest Overweight

United States
By8.44%
Fund 23.20%
Indicative Benchmark 14.75%

Largest Underweight

Italy
By-6.91%
Fund 5.16%
Indicative Benchmark 12.07%

Monthly Data as of 31-Oct-2020

Currency

Total
Currencies
5
Largest Currency 100.14% Was (30-Sep-2020) 99.91%
Other View completeCurrency Diversification

Monthly Data as of 31-Oct-2020

Indicative Benchmark :

Largest Overweight

euro
By 10.13%
Fund 100.14%
Indicative Benchmark 90.01%

Largest Underweight

British pound sterling
By -10.07%
Fund -0.08%
Indicative Benchmark 9.99%

Monthly Data as of 31-Oct-2020

The fund is fully hedged back to euro, although direct exposure may total less than 100%. It is important to note that there can be no assurances that the currency hedging employed will fully eliminate the shareholder's exposure to exchange rate fluctuations.

Team (As of 01-Oct-2020)

Michael Della Vedova

Mike Della Vedova is a global high yield portfolio manager in the Fixed Income Division. He is a portfolio manager for the Europe High Yield Bond Strategy and co-portfolio manager for the Global High Yield Bond Fund and Global High Income Bond Strategy. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.

Mike’s investment experience began in 1994, and he has been with T. Rowe Price since 2009, beginning in the Fixed Income department. Prior to this, Mike was cofounder and partner of Four Quarter Capital, a credit hedge fund focusing on below investment-grade European corporate debt. Mike also was employed by Muzinich & Company as a senior analyst and assistant portfolio manager in London.

Mike earned an LL.B. and a B.Com. in finance from the University of New South Wales and a Graduate Diploma in Legal Practice (GDLP) from the University of Technology, Sydney. He also was admitted as a solicitor to the Supreme Court of New South Wales.

  • Fund manager
    since
    2014
  • Years at
    T. Rowe Price
    11
  • Years investment
    experience
    27
Michael Lesesne

Michael Lesesne is a global high yield portfolio specialist in the Fixed Income Division. He supports the High Yield, Floating Rate Bank Loan, and Credit Opportunities Strategies, working closely with clients, prospects, and consultants. Michael is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Michael’s investment experience began in 1991, and he has been with T. Rowe Price since 2012, beginning as a global high yield portfolio specialist in the Fixed Income Investment Specialists department. Prior to T. Rowe Price, Michael was employed by Lord Abbett as a partner and director of credit research. Before that, Michael was a senior high yield credit analyst at Weiss, Peck & Greer and at TIAA-CREF.

Michael earned a B.A. in business economics from Brown University and an M.B.A. in finance from Columbia Business School.

  • Years at
    T. Rowe Price
    8
  • Years investment
    experience
    29

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (EUR) Minimum Subsequent Investment (EUR) Minimum Redemption Amount (EUR) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A €1,000 €100 €100 5.00% 115 basis points 1.28%
Class I €2,500,000 €100,000 €0 0.00% 60 basis points 0.67%
Class Q €1,000 €100 €100 0.00% 60 basis points 0.71%
Class Sd €10,000,000 €0 €0 0.00% 0 basis points 0.10%

Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.