High Income Bond Fund Class E (NHIEX)

Overview

The company is focused on the investment in diversified portfolios primarily composed of the U.S. dollar-denominated High-Yield Bonds, which are often referred to as "junk bonds" due to their ratings below investment grade. This strategic approach is aimed at pursuing the company's goal by leveraging the potential higher returns associated with these types of investments. The fund places a strong emphasis on selecting debt securities that, despite their lower credit quality, offer promising yield opportunities. By maintaining a weighted averaged maturity of five to ten years, the company aims to balance the potential for higher yields with the risks associated with longer-term debt securities.

Products and Services

• U.S. Dollar-Denominated High-Yield Bonds

  The foundation of the company's investment strategy is grounded in the acquisition of U.S. dollar-denominated High-Yield Bonds. These bonds, classified below investment grade, are selectively chosen to enhance the portfolio's yield while diligently assessing the risk-return balance. The focus on U.S. dollar-denominated assets is designed to mitigate currency risk and cater to investors seeking exposure to the U.S. credit markets.

• Diversified Portfolio Management

  In pursuit of its investment objectives, the company applies a thorough process of diversified portfolio management. This involves an intricate selection of debt securities across various issuers and sectors, aiming to spread out risk and capitalize on the diversification benefits. The strategic allocation within the portfolio is continuously reviewed and adjusted in response to market dynamics and credit assessments, ensuring an adaptive and proactive investment approach.

• Emphasis on Debt Securities Rated Below Investment Grade

  Specializing in debt securities rated below investment grade allows the company to access opportunities within the high-yield bond market that are often overlooked due to their lower credit ratings. This focus stems from a calculated strategy to pursue higher returns that these instruments can potentially offer, compared to their investment-grade counterparts. Rigorous analysis and selection criteria are employed to identify bonds that demonstrate favorable risk-adjusted return potentials.

• Weighted Averaged Maturity Strategy

  The company employs a weighted averaged maturity strategy, aiming to maintain the portfolio’s maturity between five and ten years. This approach is instrumental in managing interest rate risk and credit risk, providing a balanced exposure to medium- and long-term debt securities. The targeted maturity range is pivotal in the company’s strategy to optimize yield while being mindful of the duration risk inherent in bond investments.