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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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Past performance is not a reliable indicator of future performance.

Strategy

Global High Income Bond

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.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

N/A
1.77%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

N/A
0.38

Inception Date 31-Jan-2015

Performance figures calculated in USD

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 Approach

  • 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.

Portfolio Construction

  • 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

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 11.53% Was (31-Mar-2021) 12.42%
Other View Top 10 Issuers

Monthly data as of30-Jun-2021

Holdings

Total
Holdings
299
Largest Holding Jerrold Finco 0.93% Was (31-Mar-2021) 0.00%
Top 10 Holdings 8.16%
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 % 11.06% -31.20%
Portfolio 11.06% 29.07%
Benchmark 0.00% 60.27%

Average Credit Quality

B+

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

Sources for credit quality: 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.  T. Rowe Price does not evaluate these ratings, but simply assigns them to the appropriate credit quality category as determined by the rating agency. T. Rowe Price uses the rating of the underlying investment vehicle for credit default swaps. All short-term holdings, regardless of ratings, are included with the cash positions.

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity 5-7 Years 1-3 Years
By % 9.52% -13.37%
Portfolio 32.79% 4.41%
Benchmark 23.26% 17.78%

Weighted Average Maturity

6.54 Years

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

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Cash Holdings 1-3 Years
By % 4.16% -6.34%
Portfolio 4.16% 25.30%
Benchmark 0.00% 31.64%

Weighted Average Duration

3.14 Years

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

Industry

Total
Industries
32
Largest Industry Financial 10.78% Was (31-Mar-2021) 8.79%
Other View complete Industry Diversification

Monthly Data as of 30-Jun-2021

Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Largest Overweight

Cable Operators
By5.95%
Portfolio 9.03%
Benchmark 3.08%

Largest Underweight

Energy
By-4.52%
Portfolio 9.18%
Benchmark 13.70%

Monthly Data as of 30-Jun-2021

Countries

Total
Countries
32
Largest Country United States 55.94% Was (31-Mar-2021) 56.82%
Other View complete Country Diversification

Monthly Data as of 30-Jun-2021

Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Largest Overweight

United States
By2.14%
Portfolio 55.94%
Benchmark 53.81%

Largest Underweight

Italy
By-3.22%
Portfolio 1.04%
Benchmark 4.25%

Monthly Data as of 30-Jun-2021

Currency

Total
Currencies
3
Largest Currency 99.83% Was (31-Mar-2021) 99.84%
Other View completeCurrency Diversification

Monthly Data as of  30-Jun-2021

Benchmark : ICE BofAML Global High Yield Index Hedged to USD

Largest Overweight

U.S. dollar
By 21.95%
Portfolio 99.83%
Benchmark 77.88%

Largest Underweight

euro
By -19.32%
Portfolio 0.12%
Benchmark 19.44%

Monthly Data as of  30-Jun-2021

Team (As of 01-Oct-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.

  • Portfolio 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.

  • Portfolio manager
    since
    2015
  • 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.

  • Portfolio manager
    since
    2015
  • 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