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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

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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T. Rowe Price

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SICAV

Global High Income Bond Fund

A concentrated, high-income portfolio of primarily global high yield corporate bond opportunities supported by stringent risk management.

ISIN LU1216622727 WKN A14UB4

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

6.87%
$717.4m

1YR Return
(View Total Returns)

Manager Tenure

14.43%
6yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.10
2.59%

Inception Date 04-Jun-2015

Performance figures calculated in USD

30-Jun-2021 - Michael Della Vedova, Portfolio Manager ,
High yield spreads are near historic lows and have already priced in a strong economic recovery. Even with more muted return expectations, in our view, high yield is well positioned compared with other fixed income sectors and offers a lower duration profile relative to higher-quality segments of the market. We believe our globally diverse approach, as well as our rigorous fundamental research process, leave us well positioned to deliver attractive risk-adjusted returns for our investors.
Michael Della Vedova
Michael Della Vedova, Co-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 from issuers around the world, including emerging markets.

Investment Approach

  • Integrates fundamental research and holistic capital structure analysis while focusing on global diversification targeting high yield companies from North American, European and emerging markets regions.
  • 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 drives independent credit and conviction ratings.^^~~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.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

Portfolio Construction

  • High-conviction, concentrated approach targeting approximately 125-150 credit issuers across the globe with the flexibility to take meaningful over- and underweight
  • 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%
  • Neutralize currency risk by hedging back into the base currency

Performance (Class Q)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 14.43% 6.87% 7.14% 6.03% 4.19%
Indicative Benchmark % 14.46% 7.57% 7.39% 6.39% 6.56%
Excess Return % -0.03% -0.70% -0.25% -0.36% -2.37%

Inception Date 04-Jun-2015

Manager Inception Date 31-Dec-2019

Indicative Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Data as of 30-Jun-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 14.43% 6.87% 7.14% 6.03%
Indicative Benchmark % 14.46% 7.57% 7.39% 6.39%
Excess Return % -0.03% -0.70% -0.25% -0.36%

Inception Date 04-Jun-2015

Indicative Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Data as of 30-Jun-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 23-Jul-2021 Quarter to DateData as of 23-Jul-2021 Year to DateData as of 23-Jul-2021 1 MonthData as of 30-Jun-2021 3 MonthsData as of 30-Jun-2021
Fund % 0.14% 0.14% 3.63% 0.92% 2.44%
Indicative Benchmark % 0.13% 0.13% 3.28% 0.93% 2.42%
Excess Return % 0.01% 0.01% 0.35% -0.01% 0.02%

Inception Date 04-Jun-2015

Indicative Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Indicative Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Performance figures calculated in USD

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. 

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

30-Jun-2021 - Michael Della Vedova, Portfolio Manager ,
High yield bonds across the globe generated positive results in June. Continued strength in economic recoveries and assurances from central bank officials that inflationary pressure will be short-lived supported the performance of risk assets in the U.S. and Europe. A decrease in longer-term U.S. Treasury yields bolstered the returns of emerging markets high yield corporate bonds. Within the portfolio, credit selection in the building and real estate segment contributed to relative performance. Security selection in the broadcasting segment benefitted, although the portfolio’s overweight allocation partly offset the contribution. Credit selection in the energy industry held back relative results, as did our overweight allocation and security selection in the cable operators segment.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 11.61% Was (31-May-2021) 11.81%
Other View Top 10 Issuers

Monthly data as of30-Jun-2021

Holdings

Total
Holdings
245
Largest Holding Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons 1.22% Was (31-Mar-2021) 0.83%
Top 10 Holdings 8.97%
Other View Full Holdings Quarterly data as of  30-Jun-2021

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB/B Rated BB Rated
By % 12.62% -29.49%
Fund 12.62% 30.78%
Indicative Benchmark 0.00% 60.27%

Average Credit Quality

B+

Monthly Data as of  30-Jun-2021
Indicative Benchmark:  ICE BofAML Global High Yield Index

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 1-3 Years
By % 10.15% -13.29%
Fund 29.82% 4.49%
Indicative Benchmark 19.67% 17.78%

Weighted Average Maturity

6.52 Years

Monthly Data as of  30-Jun-2021
Indicative Benchmark:  ICE BofAML Global High Yield Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 3-5 Years Over 10 Years
By % 4.82% -3.43%
Fund 33.41% 0.75%
Indicative Benchmark 28.59% 4.19%

Weighted Average Duration

3.16 Years

Monthly Data as of  30-Jun-2021
Indicative Benchmark: ICE BofAML Global High Yield Index

Industry

Total
Industries
32
Largest Industry Financial 11.17% Was (31-May-2021) 10.03%
Other View complete Industry Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: ICE BofAML Global High Yield Index

Largest Overweight

Cable Operators
By6.14%
Fund 9.22%
Indicative Benchmark 3.08%

Largest Underweight

Energy
By-3.91%
Fund 9.79%
Indicative Benchmark 13.70%

Monthly Data as of 30-Jun-2021

30-Jun-2021 - Michael Della Vedova, Portfolio Manager ,
We trimmed our overweight position in cable operators and other names that have benefitted from pandemic-related shifts in the economy. We also selectively increased our exposure within services, health care, and building. However, we maintained an overweight position in several key defensive sectors, such as food and supermarkets, which we believe should hold up relatively well, even in a more difficult macroeconomic backdrop.

Countries

Total
Countries
31
Largest Country United States 57.75% Was (31-May-2021) 56.30%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: ICE BofAML Global High Yield Index

Largest Overweight

United States
By3.94%
Fund 57.75%
Indicative Benchmark 53.81%

Largest Underweight

Italy
By-3.29%
Fund 0.96%
Indicative Benchmark 4.25%

Monthly Data as of 30-Jun-2021

30-Jun-2021 - Michael Della Vedova, Portfolio Manager ,
We remain positive on Europe, as we expect lower interest rate volatility across the eurozone due to the dovishness of the European Central Bank. Given the challenges facing many emerging markets countries, we have a neutral position but have less risk exposure compared with the benchmark and feel confident in that stance.

Currency

Total
Currencies
4
Largest Currency 99.88% Was (31-May-2021) 99.74%
Other View completeCurrency Diversification

Monthly Data as of  30-Jun-2021

Indicative Benchmark : ICE BofAML Global High Yield Index

Largest Overweight

U.S. dollar
By 22.00%
Fund 99.88%
Indicative Benchmark 77.88%

Largest Underweight

euro
By -19.30%
Fund 0.13%
Indicative Benchmark 19.44%

Monthly Data as of  30-Jun-2021

30-Jun-2021 - Michael Della Vedova, Portfolio Manager ,
We do not expect to add value via currency management; we typically hedge our non-U.S. dollar exposure back to U.S. dollars in order to limit volatility, keeping the focus on credit selection.

Team (As of 13-Jul-2021)

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
    2015
  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    28
Michael Connelly, CFA

Michael Connelly is a portfolio manager in the Fixed Income Division, co-managing the Global High Income Bond Strategy.  He also contributes to the U.S. Core, U.S. Core Plus, and Global Multi-Sector Bond Strategies. He is a cochairman of the Investment Advisory Committee for the Global High Income Bond Fund and a member of the Sector Strategy Advisory Group. Michael is a vice president of T. Rowe Price Associates, Inc., and T. Rowe Price Group, Inc.

Michael’s investment experience began in 1999, and he has been with T. Rowe Price since 2005, beginning in the Fixed Income Division as a high yield credit analyst. After that, he became an associate portfolio manager. Prior to this, Michael was an equity research analyst for Robert W. Baird & Co., Inc., in Milwaukee, Wisconsin.

Michael earned a B.B.A. in finance and marketing from Marquette University and an M.S. in finance from the University of Wisconsin, Madison. Michael also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
    since
    2020
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    22
Samy Muaddi, CFA

Samy Muaddi is a portfolio manager in the International Fixed Income Division. He is the portfolio manager of the Emerging Markets Bond Strategy and co-manages the Emerging Markets Corporate Bond and Global High Income Bond Strategies. He previously managed the firm’s Asia Credit Bond Strategy from its inception until 2020. Samy also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price International Ltd.

Samy has been with T. Rowe Price since 2006, beginning as an associate analyst in the Fixed Income Division. After that, he was a credit analyst and then an associate portfolio manager on the Emerging Markets team before assuming his current role.

Samy earned a B.A., summa cum laude, in economics from the University of Maryland. He also has earned the Chartered Financial Analyst® designation. Samy is an adjunct professor at Georgetown University in the Walsh Graduate School of Foreign Service.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Fund manager
    since
    2020
  • Years at
    T. Rowe Price
    15
  • Years investment
    experience
    15
Gregor T. Dannacher, CFA

Gregor Dannacher is a global credit portfolio specialist in the Fixed Income Division. He supports the Multi-Asset Credit, Global High Income, US and Global High Yield, Dynamic Credit, 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.

Gregor’s investment experience began in 1992, and he has been with T. Rowe Price since 2015, beginning in the Fixed Income Division. Prior to this, Gregor was employed by Guggenheim Global Trading, a division of Guggenheim Partners, as a portfolio manager and senior analyst, managing a global credit opportunity hedge fund portfolio. Before that, he was employed by Kamunting Street Capital Management, a global credit hedge fund, as a director of investment research. Gregor also has held various other investment roles in his career, including as a senior lead equity research analyst and a leverage finance analyst.

Gregor earned a B.S. in accounting from Villanova University and an M.B.A., with honors, in finance and international business from New York University, Stern School of Business. Gregor also has earned the Chartered Financial Analyst® designation.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
    6
  • Years investment
    experience
    29

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount (USD) Minimum Subsequent Investment (USD) Minimum Redemption Amount (USD) Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $1,000 $100 $100 5.00% 115 basis points 1.32%
Class I $2,500,000 $100,000 $0 0.00% 60 basis points 0.70%
Class Q $1,000 $100 $100 0.00% 60 basis points 0.77%
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.