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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-Jun-2025 - Mike Della Vedova, Co-Portfolio Manager

High yield bonds advanced in June, posting the strongest gains since July 2024 amid several encouraging developments, generally favourable economic data, and supportive technical conditions. The de-escalation of Middle East tensions, dovish statements from some Federal Reserve policymakers, a new trade deal between the U.S. and China, and comments from several U.S. government officials about potential agreements with other countries buoyed investor sentiment. Inflows to the asset class continued, and most new deals were met with solid demand. All credit qualities and below investment-grade industries produced positive results. The portfolio performed in line with its benchmark in June. Credit selection in the energy and media segments contributed to relative performance. Security selection in the information technology segment added further value. Conversely, our allocation to reserves, which is necessary for portfolio liquidity, held back relative gains amid the strong performance environment. Credit selection in the automotive and healthcare segments detracted.

Discrete Rolling Performance

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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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