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 non-U.S. dollar-denominated foreign bonds that are rated investment-grade (i.e., BBB- or equivalent, or better), as determined by at least one major credit rating agency or, if unrated, deemed to be of comparable quality by T. Rowe Price. The fund may invest up to 20% of its total assets in “junk” bonds that have received a below investment-grade rating (i.e., BB or equivalent, or lower) from each of the ratings agencies that has assigned a rating to the bond (or, if unrated, deemed to be below investment-grade quality by T. Rowe Price), including those in default or with the lowest rating. Up to 20% of total assets may be invested in U.S. dollar-denominated bonds.
Although the fund expects to maintain an intermediate- to long-term weighted average maturity, there are no maturity restrictions on the overall portfolio or on individual securities.
The fund is likely to be heavily exposed to foreign currencies and will normally purchase bonds issued in foreign currencies.
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.
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.
* Funds are placed in general risk/return categories based on their 10-year standard deviation
(as of December 2015) or, for newer funds, the standard deviation of the types of securities
in which they invest. There is no assurance past trends will continue.
See Glossary for additional details on all data elements.
The mutual funds referred to in this website are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Download a prospectus.