Past performance is not a reliable indicator of future performance.
The Global High Income Bond Hedged to USD Composite seeks high current income and capital appreciation primarily through the investment in global fixed income securities rated below investment grade (BB or below) by S&P, Moody's, or another nationally recognized securities rating organization (NRSRO). The composite seeks global diversification by targeting North American and European high yield and emerging markets corporate issuers.
- Integrates fundamental research and holistic capital structure considerations with a focus on global diversification targeting high yield companies from North American and European regions plus issuers located in emerging markets countries.
- Represents the natural evolution of T. Rowe Price’s core high yield credit competency and recognizes the global growth of the high yield market that is expected to continue.
- Invests primarily in global issuers rated below investment-grade and focuses on:
- Proprietary fundamental analysis that drives independent credit and conviction ratings.
- Global diversification of high yield corporate issuers.
- Credits with long-term potential for balance sheet and external rating improvements.
- Strict risk management practices.
- Utilizes active management in the high yield market where credit selection is critical.
- High-conviction, concentrated approach targeting approximately 180 credit issuers across the globe with the flexibility to take meaningful over- and underweights to countries, regions, industries, ratings and individual credits.
- Incorporates a truly global corporate composition using a top-down overlay based on relative and absolute valuation characteristics across regions, countries, credit qualities and industries to complement core bottom-up position selections targeting the following regional allocations:
- U.S. high yield: range of 30%-70%
- European high yield: range of 10% to 50%
- Emerging markets: range of 0% to 40%
- Single country exposure maximum of 15% excluding the U.S.
- Sovereign debt up to 10%
- Investment-grade corporates up to 15%
- Bank loans up to 20%
- Neutralize currency risk by hedging back into the base currency