6
Data through October 31, 2015 FINRA members: For internal or institutional use only.
T. Rowe Price High Yield
Ticker
PRHYX
Yield
6.1%
SEC Yield
6.26%
Total Assets
$9,553 mil
Mstar Category
High Yield Bond
Benchmark 1:
BofAML US HY Master II TR USD
Benchmark 2:
Barclays US Agg Bond TR USD
Morningstar Analyst Rating
10-09-15
Œ
Morningstar Pillars
Process
∞
Positive
Performance
∞
Positive
People
∞
Positive
Parent
∞
Positive
Price
∞
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞
Positive
§
Negative
¶
Neutral
10.0
12.5
15.0
17.5
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Above Avg
QQQQ
Above Avg
6 6 6 6 6 3 3 3
Investment Style
Fixed Income
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
& ( & * * * ( * & * (
Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 10-15
History
6.91 7.04 6.74 4.69 6.42 6.78 6.49 6.98 7.15 6.78 6.47
NAV
3.41 9.75 3.15 -24.45 49.16 14.37 3.20 15.21 9.07 2.00 0.25
Total Return %
0.68 -1.97 0.91 1.94 -8.35 -0.83 -1.18 -0.38 1.65 -0.50 0.12
+/- Bmark 1
0.99 5.41 -3.82 -29.69 43.23 7.82 -4.64 10.99 11.09 -3.97 -0.90
+/- Bmark 2
7.53 7.73 7.67 7.43 10.78 8.37 7.70 7.45 6.43 6.19 5.01
Income Return %
-4.11 2.02 -4.52 -31.89 38.38 6.00 -4.50 7.76 2.64 -4.20 -4.76
Capital Return %
24
56
16
45
42
40
54
38
14
34
52
Total Rtn % Rank Cat
0.52 0.52 0.52 0.48 0.48 0.52 0.50 0.47 0.44 0.43 0.33
Income $
0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.01 0.09 0.00
Capital Gains $
0.77 0.77 0.77 0.76 0.80 0.76 0.74 0.75 0.74 0.75 0.74
Expense Ratio %
7.18 7.29 7.15 7.53 9.40 8.59 7.70 7.40 6.40 5.96 5.79
Income Ratio %
67
65
72
69
54
82
75
63
80
56
59
Turnover Rate %
3,175 3,943 4,033 3,280 5,162 6,297 6,897 7,902 8,865 8,379
.
Net Assets $mil
Performance
10-31-15
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2011
3.84 0.64 -7.53 6.79 3.20
2012
5.70 1.15 4.43 3.19 15.21
2013
3.74 -1.16 2.57 3.71 9.07
2014
2.92 2.63 -1.95 -1.51 2.00
2015
2.51 0.88 -5.19
— —
Trailing
Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo
-2.56 -0.86 -3.11
82 9,744
6 Mo
-3.66 -0.15 -3.56
68 9,634
1 Yr
-2.06 -0.01 -4.02
55 9,794
3 Yr Avg
4.49 0.38 2.84
19 11,407
5 Yr Avg
5.99 -0.02 2.96
23 13,373
10 Yr Avg
6.99 -0.49 2.27
19 19,654
15 Yr Avg
7.38 -0.19 1.74
12 29,079
Tax Analysis
Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
1.67
19
2.70
68
5 Yr (estimated)
3.17
24
2.65
70
10 Yr (estimated)
4.12
19
2.68
59
Potential Capital Gain Exposure: -7% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr
-2.06
3 Yr
4.49
+Avg
+Avg
QQQQ
5 Yr
5.99
+Avg
+Avg
QQQQ
10 Yr
6.99
+Avg
Avg
QQQQ
Incept
8.29
Other Measures
Standard Index
Best Fit Index
Alpha
3.7
0.3
Beta
0.49
1.01
R-Squared
8
97
Standard Deviation
5.08
Mean
4.49
Sharpe Ratio
0.88
Portfolio Analysis
09-30-15
Total Fixed Income: 498
Date of
Maturity
Amount
000
Value
$000
%
Assets
First Data 12.625%
01-15-21 83,050 94,262 0.98
Arqiva Broadcast Holdins
03-31-20 42,125 68,775 0.72
Chs / Cmnty Health Sys 6.
02-01-22 65,350 66,902 0.70
T Mobile Usa 6%
03-01-23 66,500 64,339 0.67
Neptune Finco 144A 10.125 01-15-23 62,975 63,605 0.66
Sirius Xm Radio 144A 5.75 08-01-21 62,535 62,691 0.65
Wind Acquisition Fin Sa 1
04-23-21 63,150 61,887 0.65
Sprint 7.125%
06-15-24 78,375 60,349 0.63
Noble Engy 5.875%
06-01-24 52,700 53,196 0.56
Engy Future Inter Hldg Co
03-01-22 51,513 51,069 0.53
Matador Res 144A 6.875% 04-15-23 52,500 50,925 0.53
Vpi Escrow 144A 6.375% 10-15-20 49,950 49,888 0.52
Formula One Tl B Bankdebt
07-30-21 50,228 49,192 0.51
Family Tree Escrow 144A 5 03-01-23 46,025 47,693 0.50
Sprint Nextel 2%
11-15-21 47,328 47,328 0.49
Asurion Llc Tl 2l Bankdeb
02-18-21 50,300 45,069 0.47
Onex Wizard Acquisition T
02-03-22 44,774 44,653 0.47
Targa Res Partners / Targ
11-15-23 53,930 44,762 0.47
Jc Penney Corp Inc Tl 1l
04-29-18 44,655 44,348 0.46
Vrx Escrow 144A 5.375% 03-15-20 44,800 43,456 0.45
Current Investment Style
Quality
High Med Low
Duration
Ltd Mod Ext
1
figure provided by
fund
Avg Eff Duration
1
3.8 Yrs
Avg Eff Maturity
6.3 Yrs
Avg Credit Quality
B
Avg Wtd Coupon
6.60%
Avg Wtd Price
96.48% of par
Coupon Range
% of Bonds
0% PIK
0.0
0% to 4%
5.8
4% to 6%
33.7
6% to 8%
40.7
8% to 10%
14.9
More than 10%
4.8
Credit Analysis
% bonds 09-30-15
AAA
3 BB
26
AA
0 B
47
A
0 Below B 20
BBB
2 Not Rated 3
Sector Breakdown
% Assets
Government
2
Government Related
0
Corporate
90
Agency MBS
0
Non-Agency Residential MBS 0
Commercial MBS
1
Covered Bond
0
Asset Backed
0
Municipal
0
Cash & Equivalents
5
Other
2
Composition - Net
Cash
4.8 Bonds
89.5
Stocks
0.7 Other
5.0
Special Securities
Restricted/Illiquid Secs
44
Emerging-Markets Secs
0
Options/Futures/Warrants
0
Morningstar's Take
by Cara Esser, CFA 10-09-15
Longtime lead manager Mark Vaselkiv has proved adept
at navigating T. Rowe Price High Yield through choppy
waters, and his experienced high-yield team has shown
aknack forsecurityselection,whichhascontributedmost
positively to the fund’s returns over the long term. The
firm and this team put shareholders first in a number of
ways, including closing the fund to new investors in April
2012 (the second time during Vaselkiv's tenure). In
addition,the fund’s74-basis-pointexpenseratio isamong
the lowest of its similarly distributed peers. The
experienced team, strong and stable process,
shareholder-friendly moves, low fees, and strong returns
earned the fund an upgrade to a Morningstar Analyst
Rating of Gold from Silver.
Vaselkiv and his team's valuation-focused process
has led the fund to a more conservative stance recently,
as he anticipates continued volatility in the high-yield
market. Vaselkiv has brought the fund’s CCC allocation
down a bit, though he still had a slight overweighting to
the benchmark as of June 2015. That said, CCCs have
performedpoorly recently,butVaselkivandhis teamhave
done a good job of picking credits. Those bonds have
added 31 basis points in return based on credit selection
versus the Credit Suisse High Yield Index over the trailing
12 months through June 2015.
Over the long term, Vaselkiv and his team have built
a strong track record. The fund’s 10-year return as of
September 2015 was better than 80% of its high-yield
peers, but the ride hasn’t always been smooth. Vaselkiv
took a more aggressive stance coming out of the 2008
market crash, and the fund lost nearly 100 basis points
more than its average peer during the third quarter of
2011 when the bond market quickly sold off. Cutting back
on some of the fund’s more aggressive positions at the
start of 2014, including a years-long underweighting to
energy firms, led to a smaller-than-average loss during
the brief high-yield sell-off in July. As the high-yield
market shows signs of stress, Vaselkiv is becoming more
defensive in both quality and sector allocation, which has
helped returns for the year to date.
Address:
T. Rowe Price High Yield Fund, Inc.
Minimum Purchase:
$2500
Add: $100 IRA: $1000
Baltimore MD 21202
Min Auto Inv Plan:
$2500
Add: $100
800-638-5660
Sales Fees:
No-load, 2.00%R
Web Address:
www.troweprice.comManagement Fee:
0.30%, 0.15%A
Inception:
12-31-84
Actual Fees:
Mgt:0.59% Dist:0.00%
Advisor:
T. Rowe Price Associates, Inc.
Expense Projections:
3Yr:$237 5Yr:$411 10Yr:$918
Subadvisor:
None
Income Distribution:
Monthly
©2015Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at
www.morningstar.com. To order reprints, call 312-696-6100.
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