Neuberger Berman High Income Bond Fund (NHINX) Investor Class

Neuberger Berman High Income Bond fund (NHINX) is a high yield bond mutual fund. It provides high yield income for investors. The fund review can be found in this article.

Neuberger Berman High Income Bond Investor (Ticker: NHINX)

The investment aim of Neuberger Berman High Income Bond fund is to seek high total return consistent with capital preservation. The fund typically invests >80% of its net assets in High-Yield Bonds. It normally expects to have a weighted average maturity between 5 and 10 years. Ann Benjamin has been managing this fund since October 2005. She is assisted by Thomas O’Reilly and Russ Covode.

Fund Profile

Neuberger Berman High Income Bond

• Fund Inception Date: January 30, 1992
• Ticker Symbol: NHINX
• CUSIP: 64128K850
• Beta (3yr): -0.05
• Rank in category (YTD): 65%
• Category: High Yield Bond
• Yield: 6.46%
• Capital Gains: 0%
• Expense Ratio: 0.86%
• Net Assets: $ 2.83 billion
• Number of Years Up: 18 years
• Number of Years Down: 1 year
• Average maturity: 6.6 years
• Average Duration: 4.0 years
• Annual Turnover Rate: 88.00%

updated on 8/14/2012

This Neuberger Berman fund has total net assets of $2.83 billion. It has 12-month dividend yield of 6.46%. Investors of this fund have just received their dividend on April 29, 2012 in the amount of $0.05. The annual expense ratio of this fund (0.86%) is lower compared to the average ratio in the High Yield Bond category (1.16%). This NHINX is a no-load fund.

previous: Best No Load High Yield Bond Mutual Funds of 2012

Ranked with 4 stars by Morningstar, this high yield bond mutual fund has YTD return of 5.94%. It also has Bronze rating from Morningstar. Since its inception in 1992, the only year this fund achieved negative return was in 2008 with -19.09%. The best return within 18 years of positive returns was occurred in 2009 with 51.58%. The 3-year beta risk is -0.05. The performance of this no load fund based on the load adjusted returns is as follow:

• 1-year: 3.59%
• 3-year: 17.73%
• 5-year: 8.35%
• 10-year: 7.86%

This taxable bond fund is available in many other classes, such as Class A (NHIAX), Class C (NHICX), Class R3 (NHIRX) and Institutional Class (NHILX). The fund is available in 89 brokerages, such as E Trade Financial, Merrill Lynch, T Rowe Price, Vanguard, JP Morgan, Schwab Retail, Pershing Fund Center, Ameriprise Brokerage, etc. The minimum first purchase to open a brokerage account in this fund is $2,000 with $100 minimum next purchase. There is no retirement (IRA) account available.

The top 10 holdings as of March 2012 are MGM Resorts International (1.6%), CIT Group Inc (1.5%), Berry Plastics Corp (1.4%), Ford Motor Credit Co. (1.2%), Ally Financial Inc (1.1%), Momentive Performance (1.0%), Case New Holland Inc (1.0%)FMG Resources (1.0%), Lyondellbasell IND NV (1.0%) and Sears Holding Corp (0.9%).

Principal investment risks are market volatility, issuer-specific risk, interest rate risk, prepayment risk, call risk, credit risk, lower-rated debt securities risk, loan interest risks, sector risk, restricted securities risk, illiquid investments risk and recent market conditions.

Other good high yield bond fund alternative is USAA High Yield Opportunities fund.

Pros:

• No sales load
• Good track record
• High yield for income

Cons:

• High portfolio turnover rate

Disclosure: No Position