Northern High Yield Fixed Income Fund (NHFIX)

Overview

The fund primarily focuses on investing in lower quality bonds and other fixed-income securities, often referred to as "junk bonds." These are securities that carry a higher risk of default compared to more highly rated, investment-grade bonds. The fund targets securities rated BB, Ba, or lower by a Nationally Recognized Statistical Rating Organization (NRSRO) or those unrated but deemed of comparable quality by the fund's investment adviser. By concentrating on lower-quality bonds, the fund seeks to provide investors with higher yield opportunities compared to investment-grade fixed-income securities, albeit at a higher risk.

Products and Services

• Lower Quality Bonds Investment

This service focuses on investing a significant portion of the fund's net assets in bonds and fixed-income securities that are rated BB, Ba, or lower. The target securities are those that are considered to carry a higher risk and potentially offer higher returns than investment-grade bonds. By investing in lower quality bonds, the fund aims to capitalize on the opportunities these securities may present, despite their increased risk of default.

• Investment in Other Fixed-Income Securities

In addition to lower quality bonds, the fund diversifies its investments by including other types of fixed-income securities in its portfolio. These can include, but are not limited to, corporate debt securities, government bonds, and asset-backed securities that are unrated or rated at the lower end of the credit quality spectrum. This strategy is designed to spread risk and potentially enhance the overall yield of the fund's investments, catering to investors seeking higher returns from their fixed-income investments.