1290 High Yield Bond Fund Class A (TNHAX)

Overview

The fund specializes in investing in a diverse range of high-yield, below investment-grade bonds, with a strong focus on allocating at least 80% of its net assets, in addition to borrowings for investment purposes, towards this asset class. The investment strategy is designed to leverage the potential high returns of high-yield corporate bonds, floating rate loans, and other related financial instruments, despite their lower credit ratings. This approach seeks to balance the higher risk of below investment-grade bonds with the potential for higher income and returns, catering to investors who are looking for growth opportunities beyond traditional investment-grade bonds.

Products and Services

• High-Yield Corporate Bonds

  These are bonds issued by corporations with lower credit ratings than investment-grade bonds. They offer higher interest rates to compensate for the increased risk of default. The fund predominantly invests in these instruments, seeking to capitalize on the potential for higher income and returns.

• Floating Rate Loans

  These are loans made to corporations or other entities whose interest rates adjust periodically based on market conditions. Typically, the rates are tied to a benchmark plus a spread. These instruments provide an income stream that can adjust upwards in a rising rate environment, offering potential protection against inflation and interest rate risk.

• Participations in and Assignments of Loans

  This refers to the fund's investment in portions of loans or whole loans that are sold by lenders to other investors. Participations allow the fund to invest in a portion of a loan without being the direct lender, while assignments involve the transfer of the lender’s interest in the loan to the fund. These vehicles provide additional ways to invest in the debt of corporations, potentially diversifying the fund’s income sources and reducing risk.