Fiscal Year End
The fund's objective is to provide high current income and capital appreciation by investing primarily in high-quality, nondollar-denominated bonds outside the U.S.
Normally, the fund will invest at least 80% of its net assets (including any borrowings for investment purposes) in foreign bonds and 65% of its net assets in foreign bonds that are rated within the three highest credit categories (i.e., A- or equivalent, or better), as determined by at least one nationally recognized credit rating agency or, if unrated, deemed to be of comparable quality by T. Rowe Price.
There are no maturity restrictions, and the fundís weighted average maturity normally ranges between five and 10 years but may vary substantially because of market conditions. The fund has wide flexibility to purchase and sell currencies and engage in hedging transactions. However, the fund will not usually attempt to cushion the impact of foreign currency fluctuations on the dollar.
Those seeking high current income and capital appreciation, as well as greater diversification for their fixed-income investments, who can accept the volatility and special risks inherent in international investing. Appropriate for both regular and tax-deferred accounts, such as IRAs.
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By investing in foreign fixed-income markets, U.S. investors can benefit from potentially higher yields than those in the U.S. Foreign bond markets often move independently of one another and the U.S. markets. Since buying foreign bonds can be difficult and costly for the individual investor, this fund gives them access to many foreign markets that few investors have the time, expertise, or resources to evaluate effectively on their own.
The fund is subject to a variety of risks including the risk of investing in foreign markets, the types of bonds purchased, the degree of currency exposure, and whether the bonds are issued by countries in developed markets, emerging markets, or both. In addition, there are the interest rate and credit risks normally associated with investing in bonds.