T. Rowe Price T. Rowe Price Trusty Logo

Strategy

Global High Income Bond

The Global High Income Bond Hedged to USD Composite seeks high current income and capital appreciation primarily through the investment in global fixed income securities rated below investment grade (BB or below) by S&P, Moody's, or another nationally recognized securities rating organization (NRSRO). The composite seeks global diversification by targeting North American and European high yield and emerging markets corporate issuers.

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

Tracking Error
(3 Years)

6.80%
0.75%

1YR Return (Net)
(View Total Returns)

Information Ratio
(3 Years)

8.94%
1.44

Inception Date 31-Jan-2015

Performance figures calculated in USD

Other Literature

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

  • Integrates fundamental research and holistic capital structure considerations with a focus on global diversification targeting high yield companies from North American and European regions plus issuers located in emerging markets countries.
  • 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 that drives independent credit and conviction ratings.
    • Global diversification of high yield corporate issuers.
    • 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 underweights to countries, regions, industries, ratings and individual credits.
  • 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%
  • Single country exposure maximum of 15% excluding the U.S.
  • Sovereign debt up to 10%
  • Investment-grade corporates up to 15%
  • Bank loans up to 20%
  • Neutralize currency risk by hedging back into the base currency

Holdings

Issuers

Top
Issuers
10
Top 10 Issuers 13.53% Was (30-Jun-2019) 15.05%
Other View Top 10 Issuers

Monthly data as of 30-Sep-2019

Holdings

Total
Holdings
248
Largest Holding Banco do Brasil SA/Cayman 1.08% Was (30-Jun-2019) 1.19%
Top 10 Holdings 9.35%
Other View Full Holdings Quarterly data as of 30-Sep-2019

Quality Rating View quality analysis

  Largest Overweight Largest Underweight
Quality Rating BB/B Rated BB Rated
By % 16.69% -36.08%
Portfolio 16.69% 18.96%
Benchmark 0.00% 55.04%

Average Credit Quality

B

Monthly Data as of 30-Sep-2019
Benchmark:  ICE BofAML Global High Yield Index Hedged to USD

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 5-7 Years 1-3 Years
By % 11.49% -14.29%
Portfolio 40.71% 6.27%
Benchmark 29.22% 20.56%

Weighted Average Maturity

5.88 Years

Monthly Data as of 30-Sep-2019
Benchmark:  ICE BofAML Global High Yield Index Hedged to USD

Duration View duration analysis

  Largest Overweight Largest Underweight
Duration Cash Holdings 1-3 Years
By % 3.94% -6.38%
Portfolio 3.94% 29.57%
Benchmark 0.00% 35.95%

Weighted Average Duration

2.89 Years

Monthly Data as of 30-Sep-2019
Benchmark:  ICE BofAML Global High Yield Index Hedged to USD

Industry

Total
Industries
29
Largest Industry Energy 13.20% Was (30-Jun-2019) 12.85%
Other View complete Industry Diversification

Monthly Data as of 30-Sep-2019

Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Largest Overweight

Cable Operators
By5.29%
Portfolio 9.19%
Benchmark 3.90%

Largest Underweight

Other Telecommunications
By-3.22%
Portfolio 2.50%
Benchmark 5.72%

Monthly Data as of 30-Sep-2019

Countries

Total
Countries
27
Largest Country United States 53.16% Was (30-Jun-2019) 50.99%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Benchmark: ICE BofAML Global High Yield Index Hedged to USD

Largest Overweight

Netherlands
By2.36%
Portfolio 3.69%
Benchmark 1.33%

Largest Underweight

Italy
By-1.50%
Portfolio 1.89%
Benchmark 3.39%

Monthly Data as of 30-Sep-2019

Currency

Total
Currencies
3
Largest Currency U.S. dollar 100.06% Was (30-Jun-2019) 99.96%
Other View complete Currency Diversification

Monthly Data as of 30-Sep-2019

Benchmark : ICE BofAML Global High Yield Index Hedged to USD

Largest Overweight

U.S. dollar
By 17.68%
Portfolio 100.06%
Benchmark 82.38%

Largest Underweight

euro
By -15.37%
Portfolio -0.06%
Benchmark 15.30%

Monthly Data as of 30-Sep-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
    2015
  • Years at
    T. Rowe Price
    31
  • Years investment
    experience
    35
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
    2015
  • Years at
    T. Rowe Price
    10
  • Years investment
    experience
    26
Samy Muaddi

Samy Muaddi is a portfolio manager in the Fixed Income Division of T. Rowe Price. Mr. Muaddi is the lead manager and executive vice president of the Emerging Markets Corporate Bond Strategy and chairman of the strategy's Investment Advisory Committee. He also manages the Asia Credit Strategy and is co-portfolio manager of the Global High Income Strategy. Mr. Muaddi is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

Mr. Muaddi has 13 years of investment experience, all of which have been with T. Rowe Price. He joined the firm in 2006.

Mr. Muaddi earned a B.A., summa cum laude, in economics from the University of Maryland. He also has earned the Chartered Financial Analyst designation. Mr. Muaddi is an adjunct professor at Georgetown University in the Walsh Graduate School of Foreign Service.

  • Portfolio manager
    since
    2015
  • Years at
    T. Rowe Price
    13
  • Years investment
    experience
    13
Gregor T. Dannacher, CFA

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 at
    T. Rowe Price
    4
  • Years investment
    experience
    27
Dismiss
Tap to dismiss

Download

Latest Date Range
Audience for the document: Share Class: Language of the document:
Download Cancel

Download

Share Class: Language of the document:
Download Cancel
Sign in to manage subscriptions for products, insights and email updates.
Continue with sign in?
To complete sign in and be redirected to your registered country, please select continue. Select cancel to remain on the current site.
Continue Cancel
Once registered, you'll be able to start subscribing.

By clicking the Continue button, I acknowledge that I have read and accepted the Privacy Notice

Continue Back

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

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

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest