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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 Yield Bond Fund

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

ISIN LU0133082254 Bloomberg TRPGHBA:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

5.33%
$1.4b

1YR Return
(View Total Returns)

Manager Tenure

21.59%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-1.21
1.51%

Inception Date 17-Aug-2001

Performance figures calculated in USD

31-Jan-2020 - Michael Della Vedova, Portfolio Manager,
We believe high yield bonds appear attractively positioned compared to many other fixed income sectors in the current environment, given their relatively low duration profile and higher income. Continued economic growth, even slow growth, is supportive for high yield issuers, as they are typically more sensitive to macroeconomic factors. Corporate fundamentals remain largely stable, and we expect default activity to remain below the historical average this year.
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.

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 A)

Annualised Performance

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Since Manager Inception
Annualised
Fund % 21.59% 5.33% 6.34% 5.16% 3.60%
Indicative Benchmark % 25.46% 6.33% 8.16% 6.55% 5.35%
Excess Return % -3.87% -1.00% -1.82% -1.39% -1.75%

Inception Date 17-Aug-2001

Manager Inception Date 31-Dec-2019

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

Data as of 31-Mar-2021

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 21.59% 5.33% 6.34% 5.16%
Indicative Benchmark % 25.46% 6.33% 8.16% 6.55%
Excess Return % -3.87% -1.00% -1.82% -1.39%

Inception Date 17-Aug-2001

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

Data as of 31-Mar-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 21-Apr-2021 Quarter to DateData as of 21-Apr-2021 Year to DateData as of 21-Apr-2021 1 MonthData as of 31-Mar-2021 3 MonthsData as of 31-Mar-2021
Fund % 0.84% 0.84% 1.45% 0.30% 0.60%
Indicative Benchmark % 0.75% 0.75% 1.99% 0.22% 1.23%
Excess Return % 0.09% 0.09% -0.54% 0.08% -0.63%

Inception Date 17-Aug-2001

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.

31-Mar-2021 - Michael Della Vedova, Portfolio Manager,
High yield bonds posted modestly positive returns in March. Encouraging economic signals and the approval of a new round of fiscal stimulus seemed to partly offset investors’ concerns about a sharp increase in longer-term Treasury yields and the potential for higher inflation. Rising long-term rates and the increased selling of lower-coupon, duration-sensitive bonds caused the CCC rating tier to significantly outperform higher qualities. High yield industries produced mixed results, and cyclical industries more closely tied to the overall economic recovery were among the top performers. Within the portfolio, credit selection in the utilities and financials segments aided relative performance. However, credit selection in the CCC rating tier held back gains as the portfolio did not hold many of the more speculative names that rallied. Security selection and our underweight allocation in the services segment dragged.

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 16.67% Was (28-Feb-2021) 16.16%
Other View Top 10 Issuers

Monthly data as of31-Mar-2021

Holdings

Total
Holdings
514
Largest Holding iHeartCommunications 1.09% Was (31-Dec-2020) 1.04%
Top 10 Holdings 8.00%
Other View Full Holdings Quarterly data as of  31-Mar-2021

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB/B Rated BB Rated
By % 6.26% -9.69%
Fund 20.12% 26.77%
Indicative Benchmark 13.85% 36.46%

Average Credit Quality

B+

Monthly Data as of  31-Mar-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 1-3 Years
By % 7.75% -4.78%
Fund 35.74% 6.50%
Indicative Benchmark 27.99% 11.28%

Weighted Average Maturity

6.16 Years

Monthly Data as of  31-Mar-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 % 6.99% -4.72%
Fund 22.81% 25.80%
Indicative Benchmark 15.82% 30.52%

Weighted Average Duration

3.04 Years

Monthly Data as of  31-Mar-2021
Indicative Benchmark: J.P. Morgan Global High Yield Index

31-Dec-2020 - Michael Della Vedova, Portfolio Manager,

We continued to cautiously shift toward more cyclical industries during the period as we became more constructive on the effectiveness of vaccines and broad public inoculation in the medium term. Consistent with our management style, we outperformed amid significant volatility in the first quarter, but have gradually given back some of that excess return during the second half of 2020 when risk has been indiscriminately rewarded, as evidenced by the CCC rating tier's strong outperformance during the third and fourth quarters.

Cautiously Adjusted Industry Allocations

Overall, we maintained our disciplined, risk-aware positioning. For example, the portfolio remained overweight in the cable operators and utilities industries. However, we trimmed these overweight positions during the quarter to fund purchases that have reduced the portfolio's underweight allocations to cyclical segments such as airlines, entertainment and leisure, gaming, and restaurants, where companies can benefit from a more permanent reopening of the economy and broad public inoculation.

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 allocation to large, diversified, and well-capitalized midstream companies that tend to have contractual-based revenue models and to high-quality exploration and production (E&P) names. Our investments in fallen angels such as Occidental Petroleum, whose size and scale is unmatched in a high yield market that has become unwilling to finance weaker cash burning E&Ps, have broadly benefited relative performance.

Industry

Total
Industries
32
Largest Industry Energy 12.40% Was (28-Feb-2021) 12.36%
Other View complete Industry Diversification

Monthly Data as of 31-Mar-2021

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

Largest Overweight

Cable Operators
By6.17%
Fund 10.36%
Indicative Benchmark 4.19%

Largest Underweight

Services
By-2.23%
Fund 5.42%
Indicative Benchmark 7.65%

Monthly Data as of 31-Mar-2021

31-Mar-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 85.40% Was (28-Feb-2021) 83.80%
Other View complete Country Diversification

Monthly Data as of 31-Mar-2021

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

Largest Overweight

United States
By12.07%
Fund 85.40%
Indicative Benchmark 73.32%

Largest Underweight

Brazil
By-3.43%
Fund 0.96%
Indicative Benchmark 4.39%

Monthly Data as of 31-Mar-2021

Currency

Total
Currencies
10
Largest Currency 99.92% Was (28-Feb-2021) 99.94%
Other View completeCurrency Diversification

Monthly Data as of  31-Mar-2021

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

Largest Overweight

euro
By 0.06%
Fund 0.06%
Indicative Benchmark 0.00%

Largest Underweight

U.S. dollar
By -0.08%
Fund 99.92%
Indicative Benchmark 100.00%

Monthly Data as of  31-Mar-2021

Team (As of 16-Apr-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
    11
  • Years investment
    experience
    27
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.