Today, we are featuring top-performing “Corporate High Yield” mutual funds, which primarily seek high current income through investment in lower-rated corporate bonds.
Investors can find such funds by checking out the entire list of the Zacks #1 Rank Corporate High Yield Funds list.
3 Excellent Picks
Rydex/SGI High Yield A (SIHAX) was incepted in August 1996. It seeks high current income with capital appreciation as a secondary objective.
The fund invests at least 80% of its assets in a broad range of high-yield, high risk debt securities rated in medium or lower rating categories. The debt securities in which the fund invests are primarily domestic securities. However, it may also invest in dollar denominated foreign securities.
The fund pays dividends monthly. Capital gains are distributed at least annually. As of June 2009, its portfolio turnover was 29%.
David G. Toussaint has been lead manager of the fund since April 2000. Toussaint is a Chartered Financial Analyst and also holds the Certified Public Accountant designation.
Nuveen Preferred Securities Fund A (NPSAX) was incepted in June 2007 and seeks high current income and total return. It is non-diversified.
The fund invests at least 80% of net assets in preferred securities. It invests up to 35% of net assets in dollar denominated securities of non-U.S. issuers and up to 10% of net assets in other open or closed send funds that invest in similar types of securities.
Shareholders have to make a minimum initial investment of $3,000 to enter this Zacks#1 Rank (“Strong Buy”) fund. It has an expense ratio of 0.95%.
Douglas M. Baker has been lead manager of the fund since July 2007. Baker is a Chartered Financial Analyst and spent three years at Lehman Brothers before his current assignment.
Aegis High Yield (AHYFX) seeks maximum total return with an emphasis on high current income. It was incepted in June 2004.
The fund invests at least 80% of assets in high-yield fixed-income securities. It may invest up to 20% of its net assets in common stocks, warrants, and investment-grade bonds as well as other securities.
Shareholders have to make a minimum initial investment of $10,000 to enter this Zacks#1 Rank (“Strong Buy”) fund. As of June 2009, its portfolio turnover was 92%.
Scott L. Barbee has been lead manager of the fund since October 2008. Barbee is a Chartered Financial Analyst and has been with AFC since 1997.
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By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.
