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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 Yield Bond Fund

Seeks to capture enhanced returns from a diversified global portfolio of income bearing, high yield securities.

ISIN LU0133083492 WKN 767352

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

6.88%
$1.3b

1YR Return
(View Total Returns)

Manager Tenure

14.38%
6yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.55
1.34%

Inception Date 04-Mar-2002

Performance figures calculated in USD

30-Jun-2021 - Michael Della Vedova, Portfolio Manager,
We remain constructive on credit risk overall. Companies that were among the hardest hit by the pandemic shutdown are likely to experience significant recoveries as the economy continues to reopen. Many of these issuers could move from near-zero earnings to having meaningful revenues, which should create a supportive environment for taking credit risk. Nevertheless, we are mindful of valuations and remain committed to controlling risk exposures despite our benign default expectations for the year ahead.
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 from issuers around the world, including emerging markets.

Investment Approach

  • Focus on BB/B securities, with a measured allocation to lower-quality bonds when valuations are compelling.
  • Proprietary fundamental research is key — emphasis on industries that enjoy stable cash flow and rational competitive environments.
  • Extensive analyst interaction across sectors and asset classes promotes broad credit perspective.
  • Disciplined risk management practices employed in conjunction with broad portfolio diversification to manage risk profile.
  • 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

  • Diversified portfolio structure of high yield corporate bonds: 250-350 issuers
  • Industry exposure typically will range +/- 3% around benchmark weight
    • Conservative exposure guidelines to individual issuers:
    • BB issuer: 3% maximum
    • B issuer: 2% maximum
    • CCC issuer: 1% maximum

Performance (Class I)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 14.38% 6.88% 6.74% 6.04% 5.40%
Indicative Benchmark % 16.28% 7.23% 7.48% 6.70% 6.33%
Excess Return % -1.90% -0.35% -0.74% -0.66% -0.93%

Inception Date 04-Mar-2002

Manager Inception Date 31-Dec-2019

Indicative Benchmark: J.P. Morgan Global High Yield Index

Data as of 30-Jun-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 14.38% 6.88% 6.74% 6.04%
Indicative Benchmark % 16.28% 7.23% 7.48% 6.70%
Excess Return % -1.90% -0.35% -0.74% -0.66%

Inception Date 04-Mar-2002

Indicative Benchmark: J.P. Morgan Global High Yield Index

Data as of 30-Jun-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 29-Jul-2021 Quarter to DateData as of 29-Jul-2021 Year to DateData as of 29-Jul-2021 1 MonthData as of 30-Jun-2021 3 MonthsData as of 30-Jun-2021
Fund % 0.34% 0.34% 3.90% 1.18% 2.75%
Indicative Benchmark % 0.06% 0.06% 4.04% 1.10% 2.71%
Excess Return % 0.28% 0.28% -0.14% 0.08% 0.04%

Inception Date 04-Mar-2002

Indicative Benchmark: J.P. Morgan Global High Yield Index

Indicative Benchmark: J.P. Morgan Global High Yield Index

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 recorded solid gains in June despite less dovish signals from the U.S. Federal Reserve. Indications that inflationary pressure could be short-lived, encouraging economic data, and news of progress on a bipartisan infrastructure deal broadly supported risk sentiment. Interestingly, the rally seen in the rates market—where the 10-year Treasury yield declined 13 basis points—provided a tailwind to the more duration-sensitive BB rated segment of the market. However, supportive monetary policy, a strong economic recovery, higher commodity prices, and investors’ continued reach for yield helped the more speculative areas of the high yield market lead gains during the month. Within the portfolio, credit selection in the BB rating tier worked in our favour. Security selection and the portfolio’s underweight in the building and real estate segment benefitted. Conversely, our overweight exposure to the entertainment and leisure space and underweight allocation to the services segment detracted.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 17.32% Was (31-May-2021) 17.50%
Other View Top 10 Issuers

Monthly data as of30-Jun-2021

Holdings

Total
Holdings
497
Largest Holding iHeartCommunications 1.26% Was (31-Mar-2021) 1.09%
Top 10 Holdings 8.50%
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 % 5.84% -9.83%
Fund 19.75% 26.60%
Indicative Benchmark 13.90% 36.44%

Average Credit Quality

B+

Monthly Data as of  30-Jun-2021
Indicative Benchmark:  J.P. Morgan 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 5-7 Years 3-5 Years
By % 7.55% -7.93%
Fund 32.91% 23.54%
Indicative Benchmark 25.36% 31.48%

Weighted Average Maturity

6.43 Years

Monthly Data as of  30-Jun-2021
Indicative Benchmark:  J.P. Morgan Global High Yield Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Under 1 Year 3-5 Years
By % 3.17% -5.02%
Fund 22.56% 24.97%
Indicative Benchmark 19.39% 29.98%

Weighted Average Duration

3.18 Years

Monthly Data as of  30-Jun-2021
Indicative Benchmark: J.P. Morgan Global High Yield Index

31-Mar-2021 - Michael Della Vedova, Portfolio Manager,

We continued to cautiously shift toward more cyclical industries during the period and were well positioned for the selloff in rates, having taken measures to reduce duration coming into the new year as progress on public inoculation laid the groundwork for a broad economic recovery in 2021. Consistent with our management style, we have gradually given back some of the excess return from the first half of 2020 during the subsequent prolonged period of risk being indiscriminately rewarded, as evidenced by the CCC rating tier's strong outperformance since June 2020.

Cautiously Adjusted Industry Allocations

Overall, we maintained our disciplined, risk-aware positioning, including the portfolio's overweight allocations to cable operators and utilities, and a high-quality bias within energy. However, we selectively trimmed some higher-quality, lower-yielding names during the quarter to help fund purchases in pro-cyclical sectors such as energy, entertainment and leisure, broadcasting, consumer products, and aerospace and defense.

Defensively Positioned in Energy

We upheld our high-quality bias within energy. Specifically, we broadly avoided distressed names in favor of issuers with larger asset bases and more durable business models. We maintained an overweight to large, diversified, and well-capitalized midstream companies that tend to have contractual-based revenue models and high-quality exploration and production (E&P) names.

Industry

Total
Industries
33
Largest Industry Energy 11.74% Was (31-May-2021) 11.59%
Other View complete Industry Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: J.P. Morgan Global High Yield Index

Largest Overweight

Cable Operators
By6.71%
Fund 10.77%
Indicative Benchmark 4.06%

Largest Underweight

Chemicals
By-2.30%
Fund 1.78%
Indicative Benchmark 4.08%

Monthly Data as of 30-Jun-2021

30-Jun-2021 - Michael Della Vedova, Portfolio Manager,
We are overweight cable operators, relative to the market index, because these issuers generally exhibit durable fundamentals due to subscription-based, recurring-revenue business models. We are also overweight utilities, a more defensive industry given relatively tight valuations across most segments of the high yield market. Conversely, we are overweight select segments such as airlines, gaming, and entertainment and leisure that we think could continue to benefit from further easing of pandemic-related restrictions and broad public inoculation.

Countries

Total
Countries
17
Largest Country United States 85.23% Was (31-May-2021) 84.35%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2021

Indicative Benchmark: J.P. Morgan Global High Yield Index

Largest Overweight

United States
By11.00%
Fund 85.23%
Indicative Benchmark 74.22%

Largest Underweight

Brazil
By-2.96%
Fund 1.00%
Indicative Benchmark 3.96%

Monthly Data as of 30-Jun-2021

Currency

Total
Currencies
3
Largest Currency 99.96% Was (31-May-2021) 99.97%
Other View completeCurrency Diversification

Monthly Data as of  30-Jun-2021

Indicative Benchmark : J.P. Morgan Global High Yield Index

Largest Overweight

British pound sterling
By 0.03%
Fund 0.03%
Indicative Benchmark 0.00%

Largest Underweight

U.S. dollar
By -0.04%
Fund 99.96%
Indicative Benchmark 100.00%

Monthly Data as of  30-Jun-2021

Team (As of 27-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
Rodney M.  Rayburn, CFA

Rodney Rayburn is a portfolio manager in the Fixed Income Division, managing the Credit Opportunities and High Yield Bond Strategies. He is president of the Credit Opportunities Fund, Inc. He also is executive vice president of the High Yield Fund, Inc., and Institutional Income Funds, Inc., and chairman of their respective Investment Advisory Committees. He is a member of the Investment Advisory Committee for the Balance Fund. Rodney is a vice president of T. Rowe Price Associates, Inc., T. Rowe Price Group, Inc., and T. Rowe Price Trust Company.

Rodney’s investment experience began in 1999, and he has been with T. Rowe Price since 2014, beginning in the Fixed Income Division as a high yield analyst focused on distressed and special situations. In 2015, he was promoted to portfolio manager on the High Yield team. Prior to T. Rowe Price, Rodney was employed by Värde Partners as a managing director, and he was actively involved in performing and nonperforming loans, bonds, and reorganized equities across a variety of industries. He also was a senior investment analyst at Stark Investments.

Rodney earned a B.S. in economics from the Georgia Institute of Technology and an M.B.A. in finance and economics from The University of Chicago, Booth School of Business. Rodney 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
    6
  • Years investment
    experience
    21

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 1.24%
Class I $2,500,000 $100,000 $0 0.00% 60 basis points 0.64%
Class Jd $10,000,000 $0 $0 0.00% 0 basis points 0.02%
Class Q $1,000 $100 $100 0.00% 60 basis points 0.68%
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.