Metropolitan West High Yield Bond Fund (MWHIX)

Overview

This fund is designed for investors seeking high yields through investments primarily in high-risk, high-reward bonds, commonly known as "junk bonds". Such bonds are rated below investment grade or are unrated but deemed by the Adviser to possess comparable quality. This strategy involves a significant level of risk but also the potential for higher returns compared to investment-grade bonds. The fund operates with a clear strategy focused on bonds with a portfolio duration ranging from two to eight years, aiming for financial instruments whose dollar-weighted average maturity spans from two to fifteen years. This investment approach signifies that the fund is actively managed with a keen eye on market movements and credit risks, positioning it for investors who have a moderate to high-risk tolerance and a longer-term investment horizon.

Products and Services

The fund offers a specialized investment vehicle focused on generating returns through high yield bonds, with services and strategies that include:

• High Yield Bond Investments: The core of the fund's strategy revolves around investing a minimum of 80% of its net assets and any borrowed funds for investment purposes in high yield bonds. These are either rated below investment grade or are unrated but considered by the Adviser to be of similar quality. This method aims to secure potentially higher returns for investors by taking on greater risk.
• Managed Portfolio Duration: With a precise focus on maintaining a portfolio duration between two to eight years, this fund strategically selects bonds to balance the risk and return over medium-term investment periods. This disciplined approach seeks to mitigate undue risk while pursuing advantageous opportunities in the high yield bond market.
• Dollar-Weighted Average Maturity: The fund's management team targets a dollar-weighted average maturity for its bond holdings ranging from two to fifteen years. This strategy provides a broad range of investment maturities, offering investors exposure to both short-term gains and long-term income potentials, thereby encompassing a diversified investment horizon.