PIA High Yield Fund (PHYSX) Investor Class

PIA High Yield Fund is a taxable bond mutual fund. This high yield bond fund focuses its investment in domestic and foreign high yield debts. The fund review can be found in this post.

PIA High Yield Investor (Ticker: PHYSX)

The investment objective of PIA High Yield fund is to seek a high current income level and capital growth. This fund utilizes majority of its assets to purchase a diversified portfolio of domestic and foreign high yield instruments. They include junk bonds, forward commitments, loan participations and assignments, and preferred stocks. It may invest in foreign currencies and emerging market countries bonds.

Fund Profile

PIA High Yield fund

• Fund Inception Date: 02/26/1999
• Ticker Symbol: PHYSX
• CUSIP: 007989163
• Beta (3yr): N/A
• Rank in category (YTD): 48 %
• Category: High Yield Bond
• Yield: 5.60%
• Capital Gains: 0%
• Expense Ratio: 0.98%
• Net Assets: $ 27.48 million
• Number of Years Up: 10 years
• Number of Years Down: 2 years
• Annual Turnover Rate: N/A

Updated on 7/11/2012

This high yield bond fund has a small amount of total net assets of $27.48 million. Its 12-month dividend yield is 5.60%. The latest distribution was given on March 28, 2012 ($0.05). The portfolio managers are Robert E. Sydow, Kevin S. Buckle and James Lisko. Three of them are the Senior Vice Presidents in Pacific Income Advisers and having investment experiences over 15 years.

Since this taxable bond fund is still new, it hasn’t got any rating from Morningstar yet. It has its best 1-year return in 2009 with 44.43%. The worst return was occurred in 2008 with -17.78%. The YTD return is 5.46% (as of May 2012). This taxable bond fund has returned 6.84% over the past 1-year, 10.01% over the past 5-year and 12.30% over the past 10-year. It uses Barclays U.S. Corporate High Yield Index as its benchmark. It also has an average duration of 4.01 years and an average maturity of 5.91 years.

more: Best High Yield Bond Mutual Funds 2012

The minimum initial investment for brokerage account is $1,000 and the minimum subsequent investment is $100. There are around 19 brokerages that provide the sale of this fund, such as JPMorgan, Vanguard NTF, Pershing Fund Center, Fidelity Retail Funds Network, Scottrade NTF, Common Wealth PPS, etc.

The top 10 holdings as of March 2012 are Roofing Supply Group LLC (2.3%), Nexeo Solutions LLC (2.0%), Transunion Holding Co (2.0%), First Data Corp (1.9%), Gulfmark Offshore Inc (1.9%), Evertec Inc (1.6%), Sealed Air Corp (1.6%), American Tire Distrs Inc (1.6%), RBS Global Inc (1.6%) and Bway Parent Co Inc (1.5%). The top industry weightings are Basic Industry (21%), Capital Goods (19%), Consumer Cyclical (11%), Consumer Non-Cyclical (8%) and Energy (4%).

According to the fund prospectus, the principal risks of investing in this fixed income fund are High Yield Securities risk, Credit Risk, Market Risk, Management Risk, Interest Rate Risk, Liquidity Risk, Derivatives Risk, Leverage Risk, Preferred Stock Risk, Foreign Securities and Emerging Markets Risk, Currency Risk, etc.

Pros:

• There is no sales load 
• Low portfolio turnover rate
• Low initial investment requirement

Disclosure: No Position

Other bond fund:

• Federated High-Income Bond Fund