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
We remain constructive on credit risk overall as peaking monetary and fiscal accommodation should continue to support the performance of risk assets. There is ample liquidity in the market, and our companies have access to capital. We are seeing positive changes in consumer behavior, and issuers continue to report solid earnings and remain stable from a fundamental perspective.
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The market is entering an upgrade cycle as upgrades have outpaced downgrades for four consecutive quarters. Nevertheless, we are mindful of valuations and are closely monitoring the delta variant and other potential variants that could impact the reopening of economies. As such, we remain committed to controlling risk exposures despite our benign default expectations for the year ahead.
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After a period in which a record amount of fallen angels entered the high yield asset class, the market could be on the verge of a sea change. Given the rebound in earnings, balance sheet repair, and the liquidity that has been afforded the broad market, we believe rising stars could be a prominent theme in the high yield asset class over the medium term. This means identifying upgrade candidates in the higher-quality rating tier could create significant opportunities. We are cognizant that several prominent issuers exiting the high yield space would change the complexion of the asset class.
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As always, we aim to deliver high current income while seeking to contain the 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.
- Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.
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
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
Since Manager Inception Annualised |
|
|---|---|---|---|---|---|
| Fund % | 9.58% | 6.86% | 5.63% | 5.16% | 4.63% |
| Indicative Benchmark % | 10.46% | 7.02% | 6.23% | 5.65% | 5.19% |
| Excess Return % | -0.88% | -0.16% | -0.60% | -0.49% | -0.56% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 10.70% | 6.42% | 5.81% | 5.25% |
| Indicative Benchmark % | 11.48% | 6.66% | 6.46% | 5.77% |
| Excess Return % | -0.78% | -0.24% | -0.65% | -0.52% |
Recent Performance
| Month to DateData as of 26-Nov-2021 | Quarter to DateData as of 26-Nov-2021 | Year to DateData as of 26-Nov-2021 | 1 MonthData as of 31-Oct-2021 | 3 MonthsData as of 31-Oct-2021 | |
|---|---|---|---|---|---|
| Fund % | -1.09% | -1.47% | 2.87% | -0.38% | 0.13% |
| Indicative Benchmark % | -0.83% | -1.29% | 3.22% | -0.47% | 0.04% |
| Excess Return % | -0.26% | -0.18% | -0.35% | 0.09% | 0.09% |
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.
Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.
Holdings
Holdings
Total
Holdings
493
Quality Rating View quality analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Quality Rating | BB/B Rated | BB Rated |
| By % | 5.06% | -9.88% |
| Fund | 18.01% | 27.06% |
| Indicative Benchmark | 12.96% | 36.93% |
Average Credit Quality
B+Maturity View maturity analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Maturity | 5-7 Years | 1-3 Years |
| By % | 4.67% | -7.11% |
| Fund | 32.13% | 3.43% |
| Indicative Benchmark | 27.46% | 10.54% |
Weighted Average Maturity
6.52 YearsDuration View duration analysis
| Largest Overweight | Largest Underweight | |
|---|---|---|
| Duration | 5-7 Years | 3-5 Years |
| By % | 4.64% | -4.57% |
| Fund | 23.22% | 25.11% |
| Indicative Benchmark | 18.58% | 29.68% |
Weighted Average Duration
3.70 Years
Industry
Total
Industries
33
Largest Overweight
Cable Operators
Largest Underweight
Information Technology
Countries
Total
Countries
18
Largest Overweight
United States
Largest Underweight
Brazil
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.
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.