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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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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 LU1439535052 Bloomberg TRPGQSU:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

6.97%
$712.4m

1YR Return
(View Total Returns)

Manager Tenure

9.89%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.19
2.58%

Inception Date 27-Jun-2016

Performance figures calculated in USD

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

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Since Manager Inception
Annualised
Fund % 9.89% 6.97% 6.60% 7.43% 3.79%
Indicative Benchmark % 8.95% 7.04% 6.11% 7.04% 5.04%
Excess Return % 0.94% -0.07% 0.49% 0.39% -1.25%

Inception Date 27-Jun-2016

Manager Inception Date 31-Dec-2019

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

Data as of 31-Oct-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
Since Inception
Annualised
Fund % 12.79% 7.03% 6.93% 7.76%
Indicative Benchmark % 10.18% 6.84% 6.34% 7.30%
Excess Return % 2.61% 0.19% 0.59% 0.46%

Inception Date 27-Jun-2016

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

Data as of 30-Sep-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 01-Dec-2021 Quarter to DateData as of 01-Dec-2021 Year to DateData as of 01-Dec-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % 0.00% -2.32% 2.18% -1.02% -0.39%
Indicative Benchmark % 0.24% -1.51% 1.80% -0.70% -0.45%
Excess Return % -0.24% -0.81% 0.38% -0.32% 0.06%

Inception Date 27-Jun-2016

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.

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 12.62% Was (30-Sep-2021) 12.99%
Other View Top 10 Issuers

Monthly data as of31-Oct-2021

Holdings

Total
Holdings
234
Largest Holding Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons 1.27% Was (30-Jun-2021) 1.22%
Top 10 Holdings 9.50%
Other View Full Holdings Quarterly data as of  30-Sep-2021

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB/B Rated BB Rated
By % 8.29% -33.97%
Fund 8.29% 27.17%
Indicative Benchmark 0.00% 61.15%

Average Credit Quality

B+

Monthly Data as of  31-Oct-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 5-7 Years 1-3 Years
By % 10.55% -13.50%
Fund 34.49% 2.87%
Indicative Benchmark 23.95% 16.37%

Weighted Average Maturity

6.85 Years

Monthly Data as of  31-Oct-2021
Indicative Benchmark:  ICE BofAML Global High Yield Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration 5-7 Years Under 1 Year
By % 7.00% -4.77%
Fund 24.02% 9.36%
Indicative Benchmark 17.02% 14.14%

Weighted Average Duration

3.82 Years

Monthly Data as of  31-Oct-2021
Indicative Benchmark: ICE BofAML Global High Yield Index

Industry

Total
Industries
32
Largest Industry Financial 10.41% Was (30-Sep-2021) 9.57%
Other View complete Industry Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: ICE BofAML Global High Yield Index

Largest Overweight

Cable Operators
By6.33%
Fund 9.00%
Indicative Benchmark 2.67%

Largest Underweight

Energy
By-4.83%
Fund 9.16%
Indicative Benchmark 13.99%

Monthly Data as of 31-Oct-2021

Countries

Total
Countries
30
Largest Country United States 50.50% Was (30-Sep-2021) 52.89%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: ICE BofAML Global High Yield Index

Largest Overweight

United Kingdom
By3.58%
Fund 7.65%
Indicative Benchmark 4.08%

Largest Underweight

United States
By-3.56%
Fund 50.50%
Indicative Benchmark 54.06%

Monthly Data as of 31-Oct-2021

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.