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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.
  • 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.

Past performance is not a reliable indicator of future performance.

Annualised Performance

Current Year Performance

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30-Apr-2025 - Mike Della Vedova, Co-Portfolio Manager

High yield bonds ended flat in April, rebounding from weakness after President Donald Trump’s harsher-than-expected reciprocal tariffs fuelled concerns about slowing economic growth, resurgent inflation, and a possible recession. Risk assets pared their losses as the President decided to pursue a more measured approach to tariff implementation. The split BB rating tier fared best amid the unsettled backdrop, and high yield industries produced mixed results. The portfolio outperformed its benchmark in April. Credit selection in the B rating tier and the retail industry contributed to relative performance. Our overweight allocation and, to a lesser extent, selection in the financials segment added further value. Conversely, security selection in the energy industry held back relative gains. Our underweight allocation in the containers segment and selection among BB rated bonds detracted.

Team

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Fees

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GIPS® Information

T. Rowe Price (“TRP”) claims compliance with the Global Investment Performance Standards (GIPS®).

A complete list and description 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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