The fund seeks high current income and, secondarily, capital appreciation.
The fund normally invests at least 80% of its net assets in a broadly diversified portfolio of high yield corporate bonds, often referred to as "junk" bonds, as well as income-producing convertible securities and preferred stocks that are below investment grade. High yield bonds represent a much greater risk of default and tend to be more volatile than higher-rated bonds. The fund's weighted average maturity is normally in the 5- to 10-year range.
Click on the risk/reward spectrum below to view the funds in that category
The High Yield Fund gives aggressive investors an opportunity to earn high current income, plus capital appreciation. High-yield bonds have traditionally offered greater yields than Treasury securities and investment-grade corporate bonds. The fund can also provide effective diversification for the fixed-income portion of a portfolio since high-yield bond performance is not closely correlated with other bond asset classes.
High-yield bonds carry a greater default risk than higher-rated bonds. Yield and share price will vary with interest rate changes but to a lesser extent than a portfolio of high-quality bonds. There is also a liquidity risk, the chance that the fund may not be able to buy or sell bonds at desired prices without causing substantial price swings.
* Annually we evaluate the standard deviation of each US mutual fund listed and its resulting placement within specific risk/return categories.
Methodology: If a fund is at least 5 year old, it is generally placed in risk/return categories based on the standard deviation of its performance for the longest period of its calendar year returns;
the longest time period used for analysis is 10 years (regardless of the fund's inception). If a fund is less than 5 years old, we generally use the fund's primary benchmark disclosed in its prospectus as a proxy and follow the same process of using 10-year standard deviation of the benchmark,
or longest time period available. The firm at its sole discretion may show a fund in a higher risk category based on qualitative or other factors that may differ from this methodology.
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.