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The described company is a fund that primarily focuses on investing in high-yield or junk bond fixed income securities. These are traditionally non-investment grade securities that the adviser believes have the potential to offer a high level of total return. By concentrating at least 80% of its assets in these types of investments, the fund is aimed at investors looking for high returns through more aggressive fixed income strategies. The fund also maintains the flexibility to invest up to 20% of its assets in other types of securities, including those that are investment grade, to potentially balance the higher risk associated with high-yield investments.
This product focuses on investing at least 80% of the fund's assets in non-investment grade (high-yield/junk bond) fixed income securities. These investments are selected based on their potential to provide significant total returns. This strategy is ideal for investors looking for higher income yields and who are prepared to accept the increased risks associated with high-yield investments.
As part of its diversified investment approach, the fund allows for up to 20% of its total assets to be invested in other securities, which can include investment grade securities. This flexibility enables the fund to potentially mitigate some risks associated with a portfolio heavily invested in high-yield securities by diversifying into lower risk areas. This option is tailored for investors seeking a balance between high-yield returns and investment security.