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Strategy

High Yield Bond

The High Yield Master Bond Composite combines accounts included in the High Yield Core Composite and the High Yield Strategy Composite. The master composite seeks high current income and capital appreciation primarily through investment in fixed income securities rated below investment grade (BB or below) by S&P, Moody's, or another nationally recognized securities rating organization (NRSRO). Emerging market sovereign and corporate securities are excluded from this strategy.

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

Tracking Error
(5 Years)

7.13%
1.03%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

7.97%
0.02

Inception Date 30-Jun-1985

Performance figures calculated in USD

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Mark J. Vaselkiv
Mark J. Vaselkiv, Portfolio Manager

Mark Vaselkiv is chief investment officer of Fixed Income at T. Rowe Price. He is lead portfolio manager of the firm's Global High Yield and Global High Income Strategies as well as head of the Global High Yield team in the Fixed Income Division. He is additionally a member of both the Fixed Income Steering Committee and the firm's Asset Allocation Committee. Mr. Vaselkiv is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

 

Strategy

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.

Portfolio Construction

  • Diversified portfolio structure of high yield corporate bonds: typically 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

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 17.38% Was (31-Mar-2019) 17.20%
Other View Top 10 Issuers

Monthly data as of 30-Jun-2019

Holdings

Total
Holdings
426
Largest Holding U.S. Treasury Notes 1.80% Was (31-Mar-2019) 0.00%
Top 10 Holdings 10.44%
Other View Full Holdings Quarterly data as of 30-Jun-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating B Rated BB Rated
By % 4.55% -13.46%
Portfolio 33.28% 22.56%
Benchmark 28.74% 36.02%

Average Credit Quality

B+

Monthly Data as of 30-Jun-2019
Benchmark:  J.P. Morgan Global High Yield Index

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. Short-Term holdings are not rated.

Maturity View maturity analysis

  Largest Overweight Largest Underweight
Maturity Cash Equivalents 1-3 Years
By % 4.25% -9.53%
Portfolio 4.25% 4.02%
Benchmark 0.00% 13.54%

Weighted Average Maturity

6.17 Years

Monthly Data as of 30-Jun-2019
Benchmark:  J.P. Morgan Global High Yield Index

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Under 1 Year 1-3 Years
By % 9.85% -6.74%
Portfolio 20.57% 22.33%
Benchmark 10.72% 29.07%

Weighted Average Duration

3.09 Years

Monthly Data as of 30-Jun-2019
Benchmark:  J.P. Morgan Global High Yield Index

Industry

Total
Industries
31
Largest Industry Energy 12.56% Was (31-Mar-2019) 14.65%
Other View complete Industry Diversification

Monthly Data as of 30-Jun-2019

Benchmark: J.P. Morgan Global High Yield Index

Largest Overweight

Cable Operators
By4.74%
Portfolio 9.48%
Benchmark 4.74%

Largest Underweight

Energy
By-2.41%
Portfolio 12.56%
Benchmark 14.97%

Monthly Data as of 30-Jun-2019

Currency

Total
Currencies
4
Largest Currency U.S. dollar 99.98% Was (31-Mar-2019) 99.95%
Other View complete Currency Diversification

Monthly Data as of 30-Jun-2019

Benchmark : J.P. Morgan Global High Yield Index

Largest Overweight

Canadian dollar
By 0.01%
Portfolio 0.01%
Benchmark 0.00%

Largest Underweight

U.S. dollar
By -0.02%
Portfolio 99.98%
Benchmark 100.00%

Monthly Data as of 30-Jun-2019

Team (As of 31-Aug-2019)

Mark J. Vaselkiv

Mark Vaselkiv is chief investment officer of Fixed Income at T. Rowe Price. He is lead portfolio manager of the firm's Global High Yield and Global High Income Strategies as well as head of the Global High Yield team in the Fixed Income Division. He is additionally a member of both the Fixed Income Steering Committee and the firm's Asset Allocation Committee. Mr. Vaselkiv is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price Trust Company.

Mr. Vaselkiv has 35 years of investment experience, 31 of which have been at T. Rowe Price. He started at the firm in 1988 as a high yield corporate credit analyst with a special focus on forest products and gaming and was appointed to the high yield portfolio management team in 1996. He began his investment career in 1984 as a credit analyst for Prudential Insurance Company. In 1986, he became a credit analyst and vice president at Shenkman Capital Management.

Mr. Vaselkiv earned a B.A. in political science from Wheaton College, Illinois, and an M.B.A. in finance from New York University, Leonard N. Stern School of Business.

  • Portfolio manager
    since
    2003
  • Years at
    T. Rowe Price
    31
  • Years investment
    experience
    35
Rodney M.  Rayburn

Rodney Rayburn is a portfolio manager responsible for the Credit Opportunities Strategy in the Fixed Income Division at T. Rowe Price. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Rayburn has 20 years of investment experience, five of which has been at T. Rowe Price. Prior to joining the firm in 2014, he spent five years as a managing director at Värde Partners in Minneapolis, where he was actively involved in performing and nonperforming loans, bonds, and reorganized equities across a variety of industries. Prior to that, Mr. Rayburn was a senior investment analyst at Stark Investments in Milwaukee.

Mr. Rayburn 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. He also has earned the Chartered Financial Analyst designation.

  • Portfolio manager
    since
    2019
  • Years at
    T. Rowe Price
    5
  • Years investment
    experience
    20
Michael Della Vedova

Michael Della Vedova is a global high yield portfolio manager in the Fixed Income Division at T. Rowe Price. Mr. Della Vedova is a portfolio manager of the European High Yield Strategy and co-portfolio manager for the firm's Global High Yield Strategy. He is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price International Ltd.

Mr. Della Vedova has 26 years of investment experience, 10 of which have been with T. Rowe Price. Prior to joining the firm in 2009, he was a cofounder and partner of Four Quarter Capital, a credit hedge fund focusing on below investment-grade European corporate debt. Mr. Della Vedova also spent six years as a senior analyst and assistant portfolio manager with Muzinich & Company Limited in London.

Mr. Della Vedova earned both an LL.B. and a B.Com. in finance from the University of New South Wales and a G.D.L.P. from the University of Technology, Sydney, Australia. He also was admitted as a solicitor to the Supreme Court of New South Wales, Sydney.

  • Portfolio manager
    since
    2010
  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    26
Michael Lesesne

Michael Lesesne is a global high yield portfolio specialist in the Fixed Income Division at T. Rowe Price. He supports the High Yield, Bank Loan, and Credit Opportunities Strategies, working closely with clients, prospects, and consultants. Mr. Lesesne is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Lesesne has 28 years of investment experience, seven of which have been with T. Rowe Price. Prior to joining the firm in 2012, Mr. Lesesne was a partner and director of credit research at Lord Abbett and, before that, a senior high yield credit analyst at Weiss, Peck & Greer and TIAA-CREF.

Mr. Lesesne earned a B.A. in business economics from Brown University  and an M.B.A. in finance from Columbia Business School.

  • Years at
    T. Rowe Price
    7
  • Years investment
    experience
    28
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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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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