high-yield bond fund

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High-Yield Bond Fund

A mutual fund that invests predominantly or exclusively in junk bonds. Because junk bonds have low credit ratings, they offer a comparatively high return. High-yield bond funds generally have portfolios containing at least two-thirds junk bonds. They provide a way for investors to take advantage of the return offered by a junk bond while also avoiding the risk of investing in a single bond at a high risk of default. See also: Investment grade.

high-yield bond fund

An investment company that attempts to produce unusually high income for its shareholders by maintaining a corporate bond portfolio that contains at minimum two thirds lower-rated bonds (Baa by Moody's; BBB by S&P).
References in periodicals archive ?
In this market generating 7%-8% per annum, over 20 years is significant; $100,000 invested in a high-yield fund 20 years ago is worth $400,000 today.
For example, Hoff noted the volatility caused by a possible Brexit hasn't affected his key investments in health care and cable company high-yield funds. Also, his fund only invests in products that are dollar denominated, so they don't have any currency risk.
According to Gabelli, the fund is a high-yield fund created for non-US and non-taxable US investors in the corporate bond strategy managed by portfolio manager and director of fixed income, Wayne Plewniak.
Although the average high-yield fund expenses about 1.3% of its assets, we looked to better that by limiting our sights to funds with a 1.0% ratio or less.
Morningstar senior analyst Bradley Sweeney reasons that in this environment, the scales tip slightly in favor of high-yield funds. The reason: A shrewd portfolio manager should be able to shield a fund from credit-quality woes, even in the thorniest of times, whereas a sharp rise in rates will clobber government bond portfolios run by the best of minds.
The alternative investment partnership group of GAMCO Investors Inc (NYSE:GBL), Gabelli & Partners, revealed on Thursday that it will create a high-yield fund for non-US and non-taxable US investors in the corporate bond strategy, Gabelli Intermediate Credit Fund Ltd that will managed by portfolio manager and director of Fixed Income, Wayne Plewniak.
"I can watch my investments as they grow, and learn along with them," says Pugh, who altered the investment mix in her 401(k), which is valued at around $7,200, to include the Excelsior Blended Equity Fund (UMEQX); the Excelsior NY Intermediate Fund (UMNYX), a high-yield fund; and the Excelsior Value & Restructuring Fund (UMBIX), a growth fund.
In second place is Loomis Sayles High-Yield Fund, which had a total return of 11.73% and yielded 12% through June 30.
* High-yield funds. These funds typically invest in corporate bonds that are unrated or low rated by specialized agencies, perhaps because the issuers are not in excellent financial condition.
Global fund ranking service Morningstar has ranked the Falcon High Yield Defensive Fund amongst the best-performing funds in the US dollar high-yield funds category on a one-year, three-year, and five-year annualised return basis.
Global fund ranking service Morningstar has ranked the Falcon High Yield Defensive (FHYD) Fund amongst the best-performing funds in the US dollar high-yield funds category on a one-year, three-year, and five-year annualised return basis.
The Financial Supervisory Service on March 9, 2007 announced new supervisory measures for high-yield funds commonly known as "junk bond funds" to meet recently amended tax law provisions, which apply a reduced tax rate for funds that invest 10 percent or more of the assets on speculative-grade corporate bonds and commercial papers.