Timothy Plan High Yield Bond Fund Class C (TPHCX)

Overview

The fund is structured to primarily invest in a broad range of high-yield fixed income securities, focusing on diversification to enhance returns and mitigate risks. Targeting securities which are considered below investment grade, the fund aims at achieving a high level of income. These non-investment-grade securities, known as "high yield" or "junk," include corporate bonds, convertible securities, and preferred stocks that are rated "BB" or lower. The Investment Manager plays a crucial role in selecting these securities, adhering strictly to the fund’s policy of investing at least 80% of its assets in these high-yield investments. The fund is committed to avoiding Excluded Securities, adhering to a specific investment criterion that seeks to streamline its investment focus and strategy.

Products and Services

• Corporate Bonds:

  These bonds are issued by corporations looking to raise financing for their operations, expansions, or other projects. Since they are high-yield, they typically offer higher interest rates to compensate for the higher risk of default compared to investment-grade bonds.

• Convertible Securities:

  These are hybrid securities that offer the investor the option to convert them into a predetermined amount of the issuer's equity, usually at times of the investor's choosing. This conversion feature added to the high-yield fixed income nature of the securities provides a potential for capital appreciation in addition to interest income.

• Preferred Securities:

  Preferred securities sit between debt and equity in a corporation's capital structure. These securities often offer fixed dividends, which are generally higher than those of common stock, and have priority over common stock in the event of a liquidation. However, they carry greater risk than traditional fixed income securities.