The fund seeks high current income and some capital appreciation from a portfolio that focuses primarily on the higher-quality range (BB and B) of the high-yield market.
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.
A long-term, risk-tolerant investor seeking the highest level of current income and some appreciation potential, who is willing to accept the possibility of significant fluctuations in principal value. The fund should not represent a significant portion of your assets. Appropriate for both regular and tax-deferred accounts, such as IRAs and Keoghs.
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.
* 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.
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