T. Rowe Price has announced the launch of its new Global High Income fund which will be available for institutional, retail and advised investors in Australia and New Zealand.
The fund, which would focus on high-yield corporate bonds and would be highly complimentary to the T. Rowe Price Dynamic Global Bond Fund, would aim to capitalise on market inefficiencies, sector positioning and idiosyncratic events, the firm said.
Benchmarked against the ICE BoFA Global High Yield Index (hedged to AUD), the fund would be managed by London-based Australian portfolio manager Michael Della Vedova and Baltimore-based portfolio managers Michael Connelly and Sammy Muaddi.
Darren Hall, head of intermediary for Australia at T. Rowe Price, said that the fund was extremely compelling in today’s prevailing market conditions where the search for income is of paramount focus for clients.
Given the substantial falls in dividend income seen in equity markets, he said, this was driving demand for high-conviction investments that could generate equity-like returns with less volatility over the long term.
“The fund’s high-conviction approach to high yield bonds provides a more growth-oriented play within portfolios, benefiting from fundamental research and risk analysis as well as technical tailwinds, such as supportive liquidity policies of central banks and a migration of the investible universe well beyond the US,” he said.
“We are delighted to broaden our range of fixed income investment solutions with the Global High Income fund that leverages a truly global approach, which is critical to sourcing the best new investment ideas in today’s ever expanding high yield bond market.”