European High Yield Bond Fund

Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

The listed funds are not an exhaustive list of funds available. Visit www.funds.troweprice.com to see the full range of funds offered by T. Rowe Price, including those that consider environmental and social characteristics as part of their investment process. For up to date information regarding any T. Rowe Price fund's investment strategy, please see the relevant fund KID and prospectus.

Overview

Strategy

Fund Summary

The fund invests mainly in BB and B rated bonds, with the ability to purchase lower-quality securities when compelling valuation and risk/reward opportunities arise. The strategy integrates fundamental proprietary research at the corporate bond, sovereign and equity levels, thus providing a holistic view of a company’s capital structure and management team. The promotion of environmental and/or social characteristics is achieved through the fund's commitment to maintain at least 10% of the value of its portfolio invested in Sustainable Investments, as defined by the SFDR. Additionally, we apply a proprietary responsible screen (exclusion list). The manager is not constrained by the fund’s benchmark, which is used for performance comparison purposes only.

OUR VIEWS ON EUROPE

Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

31-Jul-2024 - Mike Della Vedova, Portfolio Manager,

European high yield bonds posted a solid gain in euro terms in July. As expected, in a unanimous decision, the European Central Bank (ECB) left policy rates unchanged, and there were no major edits to its policy statement. ECB President Christine Lagarde said that the September meeting was “wide open” for another interest rate cut, and that the central bank is focused on wage growth, corporate profits, and productivity. Within the portfolio, our security selection decisions were flat while asset allocation detracted from relative results. Our holdings in the services and basic industry segments dragged, led by a company specialising in collecting, managing, and recycling hazardous waste, and a downstream aluminium producer. Our underweight position in the banking segment and overweight in the technology and electronics industry also hurt performance. Conversely, selection in the retail and technology and electronics segments boosted returns. In terms of allocation, our overweight position in the wireline telecommunications segment added value, as did our avoidance of the gaming segment.

31-Dec-2023 - Mike Della Vedova, Portfolio Manager,

We remain overweight non-cyclical sectors, such as cable, with stable, recurring revenue models that could be supportive in a deepening economic slowdown. We are also overweight entertainment and leisure, on an idiosyncratic basis due to our preference for specific names. We also maintained our underweight exposure to the banking sector although we see value in non-banking financials as they continue to demonstrate an improved risk-reward profile, in our view. Our underweight to real estate was also increased slightly on an idiosyncratic basis.

Past performance is not a reliable indicator of future performance.

The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents and/or key information document (KID) in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors. They can also be found along with a summary of investor rights in English at www.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.

Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class. The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.

Before deciding to invest in the fund, you should read the offering document/prospectus (including its investment objectives, policies and any risk warnings) which are available and may be obtained from any appointed distributors.

The specific securities identified and described in this website do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.

Benchmark: Investors may use the benchmark to compare the fund’s performance. The benchmark has been selected because it is similar to the investment universe used by the investment manager and therefore acts as an appropriate comparator. The investment manager is not constrained by any country, sector and/or individual security weightings relative to the benchmark and has complete freedom to invest in securities that do not form part of the benchmark.

Disclosure on Vendor Indices can be found here.

Risks

Typical Investor