1290 High Yield Bond Fund Class I (TNHIX)

Overview

The company manages a fund that focuses on investing in a diverse range of high-yield, below-investment-grade bonds, leveraging its assets and borrowings towards this aim. By designating at least 80% of its net assets to these types of investments, the fund seeks to capitalize on the opportunities present in the high-yield corporate bonds market. In addition, it extends its investment strategy to include floating rate loans, along with participations in and assignments of loans, embodying a comprehensive approach to high-yield, fixed-income investing. The investment advisor plays a crucial role in guiding the fund’s strategies, steering primarily towards high-yield corporate bonds but without limiting the fund’s flexibility to explore other related financial instruments that meet its high-yield criteria.

Products and Services

• High-Yield Corporate Bonds

  The core focus of the fund lies in investing in high-yield corporate bonds, which are rated below investment grade. This strategy aims to achieve higher income for investors, albeit with a higher risk compared to investment-grade bonds. The allure of high-yield corporate bonds lies in their potential for substantial returns, especially appealing to those who are willing to navigate the complexities and inherent risks of the below-investment-grade market.

• Floating Rate Loans

  Another integral part of the fund's investment approach includes floating rate loans. These are typically bank loans whose interest rates adjust periodically based on market rates. The attraction to floating rate loans stems from their variable interest feature, which can provide a hedge against inflation and rate increases, making them an appealing choice for the fund’s portfolio in a rising rate environment.

• Participations in and Assignments of Loans

  The fund also engages in participations in and assignments of loans. This involves investing in portions of loans or taking over existing loans from other lenders. This method allows the fund to diversify its investment portfolio further and tap into opportunities that otherwise might be inaccessible. Through participating in or assigning loans, the fund can benefit from various credit profiles and interest terms, enhancing its potential to yield returns across different market conditions.