SICAV
Global High Income Bond Fund
A concentrated, high-income portfolio of primarily global high yield corporate bond opportunities supported by stringent risk management.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(3 Years)
Tracking Error
(3 Years)
Inception Date 04-Jun-2015
Performance figures calculated in USD
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.
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 % | 11.15% | 7.24% | N/A | 6.43% | 6.43% |
| Indicative Benchmark % | 9.53% | 6.29% | N/A | 6.03% | 6.03% |
| Excess Return % | 1.62% | 0.95% | N/A | 0.40% | 0.40% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 9.72% | 7.25% | N/A | 6.45% |
| Indicative Benchmark % | 7.56% | 6.25% | N/A | 6.01% |
| Excess Return % | 2.16% | 1.00% | N/A | 0.44% |
Recent Performance
| Month to DateData as of 15-Nov-2019 | Quarter to DateData as of 15-Nov-2019 | Year to DateData as of 15-Nov-2019 | 1 MonthData as of 31-Oct-2019 | 3 MonthsData as of 31-Oct-2019 | |
|---|---|---|---|---|---|
| Fund % | -0.15% | 0.31% | 13.08% | 0.46% | 2.09% |
| Indicative Benchmark % | 0.18% | 0.73% | 12.12% | 0.54% | 1.09% |
| Excess Return % | -0.33% | -0.42% | 0.96% | -0.08% | 1.00% |
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.
Holdings
Holdings
Total
Holdings
230
Quality Rating View quality analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Quality Rating | BB/B Rated | BB Rated |
| By % | 16.29% | -36.00% |
| Fund | 16.29% | 19.21% |
| Indicative Benchmark | 0.00% | 55.21% |
Average Credit Quality
B+Maturity View maturity analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Maturity | 7-10 Years | 1-3 Years |
| By % | 9.74% | -15.02% |
| Fund | 24.64% | 5.43% |
| Indicative Benchmark | 14.90% | 20.45% |
Weighted Average Maturity
5.99 YearsDuration View duration analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Duration | Cash Holdings | Under 1 Year |
| By % | 5.58% | -6.51% |
| Fund | 5.58% | 8.50% |
| Indicative Benchmark | 0.00% | 15.01% |
Weighted Average Duration
3.21 YearsIndustry
Total
Industries
29
Largest Overweight
Cable Operators
Largest Underweight
Financial
Countries
Total
Countries
28
Largest Overweight
Netherlands
Largest Underweight
Italy
Currency
Total
Currencies
3
Largest Overweight
U.S. dollar
Largest Underweight
euro
Team (As of 31-Aug-2019)
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.
- Fund manager2015
since - Years at31
T. Rowe Price - Years investment35
experience
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.
- Fund manager2015
since - Years at10
T. Rowe Price - Years investment26
experience
Gregor Dannacher is a global corporate credit portfolio specialist in the Fixed Income Division of T. Rowe Price. He supports the Global High Income, Global High Yield, U.S. High Yield, Global Loan, Credit Opportunities, and U.S. Investment-Grade Strategies, working closely with clients, prospects, and consultants. Mr. Dannacher is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Mr. Dannacher has 27 years of investment experience, four of which have been with T. Rowe Price. Prior to joining the firm in 2015, he was a portfolio manager and senior analyst at Guggenheim Global Trading, a division of Guggenheim Partners. Prior to that, Mr. Dannacher was director of investment research and a senior analyst at Kamunting Street Capital Management. He also worked at CIBC World Markets as a senior equity research analyst.
Mr. Dannacher 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, Leonard N. Stern School of Business. He also has earned the Chartered Financial Analyst designation.
- Years at4
T. Rowe Price - Years investment27
experience
Fee Schedule
| Share Class | Minimum Initial Investment and Holding Amount | Minimum Subsequent Investment | Minimum Redemption Amount | Sales Charge (up to) | Investment Management Fee (up to) | Ongoing Charges |
|---|---|---|---|---|---|---|
| Class A | $15,000 | $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 | $15,000 | $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.
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.