SICAV
Global High Yield Bond Fund
Seeks to capture enhanced returns from a diversified global portfolio of income bearing, high yield securities.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 14-Jan-2013
Performance figures calculated in USD
Strategy
The macroeconomic backdrop is exhibiting a significant influence on market sentiment, although individual high yield company fundamentals remain largely solid. Slowing economic growth from the first quarter, the Fed's interest rate strategy, trade tensions, and the upcoming U.S. presidential election have created a cloud of uncertainty that is likely to persist, particularly if the Fed remains on hold. Investors are eagerly anticipating an "insurance" cut that would support the performance of financial markets, but this may not occur. Nevertheless, the current environment is broadly supportive for fixed income strategies, as coupon payments provide a reliable income source that enhances the appeal of bonds amid turbulent market conditions.
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The high yield asset class continues to demonstrate its resilience. After posting a loss in 2018, the high yield market began this year with its strongest quarterly performance in 10 years, coupled with a six-month return of 10%. Steady economic growth, albeit at a slower pace, creates a healthy environment for below investment-grade companies. Growth is not too strong for rate hikes nor too slow, so companies can continue to perform, supporting issuers' fundamentals and sustaining credit quality trends. We expect default activity to remain low in the next 12 months. Renewed industry inflows in recognition of the attractive 6%-7% yield offered by the asset class are also market supportive.
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As always, we aim to deliver high current income while seeking to contain volatility inherent in this market. Our team maintains a commitment to credit research and risk-conscious investing that has led to favorable returns for our high yield clients over various market cycles.
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 Q)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
Since Manager Inception Annualised |
|
|---|---|---|---|---|---|
| Fund % | 7.83% | 5.85% | 4.37% | 5.10% | 5.36% |
| Indicative Benchmark % | 7.07% | 6.46% | 4.93% | 5.52% | 6.26% |
| Excess Return % | 0.76% | -0.61% | -0.56% | -0.42% | -0.90% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 7.63% | 6.86% | 4.01% | 4.97% |
| Indicative Benchmark % | 8.04% | 7.93% | 4.84% | 5.58% |
| Excess Return % | -0.41% | -1.07% | -0.83% | -0.61% |
Recent Performance
| Month to DateData as of 19-Sep-2019 | Quarter to DateData as of 19-Sep-2019 | Year to DateData as of 19-Sep-2019 | 1 MonthData as of 31-Aug-2019 | 3 MonthsData as of 31-Aug-2019 | |
|---|---|---|---|---|---|
| Fund % | 0.72% | 2.41% | 13.08% | 0.87% | 3.81% |
| Indicative Benchmark % | 0.87% | 1.40% | 11.62% | -0.09% | 2.92% |
| Excess Return % | -0.15% | 1.01% | 1.46% | 0.96% | 0.89% |
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
376
Quality Rating View quality analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Quality Rating | B Rated | BB Rated |
| By % | 3.74% | -11.81% |
| Fund | 32.11% | 25.21% |
| Indicative Benchmark | 28.37% | 37.02% |
Average Credit Quality
B+Maturity View maturity analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Maturity | 5-7 Years | 1-3 Years |
| By % | 6.49% | -10.22% |
| Fund | 42.04% | 4.58% |
| Indicative Benchmark | 35.55% | 14.80% |
Weighted Average Maturity
6.16 YearsDuration View duration analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Duration | Cash Holdings | 3-5 Years |
| By % | 2.78% | -5.47% |
| Fund | 2.78% | 32.17% |
| Indicative Benchmark | 0.00% | 37.64% |
Weighted Average Duration
3.10 Years
Industry
Total
Industries
31
Largest Overweight
Cable Operators
Largest Underweight
Building & Real Estate
Countries
Total
Countries
21
Largest Overweight
United States
Largest Underweight
Brazil
Currency
Total
Currencies
4
Largest Overweight
euro
Largest Underweight
U.S. dollar
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 24 years of investment experience, eight 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
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 | 1.25% |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 60 basis points | 0.66% |
| Class Jd | $10,000,000 | $0 | $0 | 0.00% | 0 basis points | 0.03% |
| Class Q | $15,000 | $100 | $100 | 0.00% | 60 basis points | 0.71% |
| 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.