Top Performing High Yield Bond Mutual Funds January 2013

The top performing high yield bond mutual funds January 2013 are John Hancock High-Yield Fund, MainStay High Yield Opportunities, Nuveen High Income Bond, etc.

Top High Yield Bond Mutual Funds

High bond mutual fund provides higher yield income to investors. It focuses its investment on lower-quality bonds, which are riskier than higher-quality companies bonds. This fund invests mainly in U.S. high income debts or also known as junk bonds. The bond assets are typically rated at the BB level or not rated.

You can find this top performer list is sorted based on its 1 year performance up to January 2013. You may find the fund review information such as expense ratio, turnover rate, yield rate, average duration, management, fund’s shares price, etc.

The top performing high yield bond mutual funds January 2013 are:

1. John Hancock High-Yield Fund
2. Loomis Sayles High Income Fund
3. American Beacon SiM High Yield Opportunities Fund
4. Waddell & Reed High-Income Fund
5. MainStay High Yield Opportunities Fund
6. Western Asset Global High Yield Bond fund
7. Nuveen High Income Bond Fund
8. PACE High Yield Fund
9. Third Avenue Focused Credit Fund
10. PIMCO High Yield Spectrum Fund
11. Western Asset High Income Fund
12. Invesco High-Yield Securities Fund
13. Hotchkis and Wiley High Yield Fund
14. Delaware High-Yield Opportunities Fund
15. Ivy High Income Fund
16. Fidelity Global High Income fund
17. Fidelity Advisor High Income Advantage Fund
18. USAA High Income Fund
19. Invesco High Yield Fund

Updated on 1/19/2013

John Hancock High-Yield Fund (JHHBX)

John Hancock High-Yield Fund utilizes its assets to purchase U.S. and foreign fixed-income securities rated BB/Ba or lower and their unrated equivalents. It has 6.00% yield. This class A fund has a front end sales load of 4.50%. The expense ratio is 1.07%. The current fund’s NAV is $3.81 (1/21/2013).

This top performing high yield bond mutual fund has an YTD return of 25.27% in 2012. It has returned 9.85% over the past 3 year, and 8.15 % over the past decade. You can buy this fixed income fund with $2,500 initial funding. This bond fund also has an average effective duration of 3.60 years.

As of December 2012, the top 3 bond holdings are Continental Airls Fin Tr Ii Cv, Xm Satellite Radio 144A 7%, and Mohegan Tribal Gaming Authority 144A 10.5%. The top 3 bond sectors are corporate bond (70.30%), preferred (14.12%), and bank loan (3.08%).

MainStay High Yield Opportunities Fund (MYHNX)

This MainStay High Yield Opportunities Fund has a high yield of 5.74%. It invests mainly in high-yield domestic and foreign corporate debt securities. The fund lead manager is Dan Roberts. The total net assets are $1.1 billion. Its expense ratio is 1.25% per year. The portfolio turnover rate is 23%.

In 2012, it has an annualized return of 19.07%. It has a 3 year average return of 10.05%. Morningstar has ranked this best performing high yield bond mutual fund with 1 star rating. For the past 4 year, the fund performance is as follow:

• Year 2012: 19.07%
• Year 2011: -1.23%
• Year 2010: 14.33%
• Year 2009: 54.13%

Nuveen High Income Bond Fund (FJSIX)

Nuveen High Income Bond Fund objective is to provide high level of current income. It has dividend yield of 7.74%. The fund’s NAV is $9.24. John T. Fruit and Jeffrey T. Schmitz are the fund’s managers. This class A fund has a sales load of 4.75%. Its total assets are $770 million.

This top performing high yield bond mutual fund is ranked 2 stars rating by Morningstar. If you invest $10,000 in this bond fund 10 years ago, your capital would have grown to $23,841. The average effective maturity is 7.91 years. The average credit quality is not rated.

As of December 2012, the top 3 holdings are First Data 144A 8.75%, Energy Future Holdings 10.875%, and Realogy 12%. The top 2 bond sectors are corporate bond (87.43%), and preferred (7.47%).

PIMCO High Yield Spectrum Fund (PHSAX)

PIMCO High Yield Spectrum Fund is the bronze rated bond mutual fund. It has a high yield of 6.42%. The total assets are $2.4 billion. Its sales load is 3.75% and its expense ratio fee is 0.90%. It invests mainly in a diversified portfolio of high yield securities through convertibles, warrants, forwards or derivatives. The shares price is $11.04. It is managed by Andrew Jessop.

Other classes of this top performing high yield bond mutual fund are: Class C (PHSCX) Class D (PHSDX), Class P (PHSPX), Class R (PSMRX), and Institutional Class (PHSIX). The minimum initial investment is $1,000.

Disclosure: No Position

Fund Performance

No	Fund Description	Ticker	Yield	YTD Return %	1 Year Return %	3 Year Return %
1	JHancock High-Yield A	JHHBX	6.00%	1.91	22.67	9.85
2	Loomis Sayles High Income A	NEFHX	5.36%	2.56	20.63	10.37
3	American Beacon SiM High Yld Opps A	SHOAX	7.14%	2.19	19.55	--
4	Waddell & Reed High-Income A	UNHIX	7.62%	1.75	19.16	12.8
5	MainStay High Yield Opportunities Inv	MYHNX	5.74%	2.16	19	10.05
6	Western Asset Global High Yield Bd A	SAHYX	7.29%	1.9	18.93	10.8
7	Nuveen High Income Bond A	FJSIX	7.74%	2.07	18.3	11.11
8	PACE High Yield A	PHIAX	6.25%	2	18.28	10.28
9	Third Avenue Focused Credit Investor	TFCVX	6.86%	3.08	18.28	9.13
10	PIMCO High Yield Spectrum A	PHSAX	6.42%	1.7	18.12	--
11	Western Asset High Income A	SHIAX	6.79%	1.96	18.05	11.49
12	Invesco High-Yield Secs A	HYLAX	5.70%	1.37	18.04	10.11
13	Hotchkis and Wiley High Yield A	HWHAX	6.71%	1.43	17.54	12.24
14	Delaware High-Yield Opportunities A	DHOAX	7.01%	1.77	17.52	11.46
15	Ivy High Income A	WHIAX	7.28%	1.7	17.32	12.7
16	Fidelity Global High Income	FGHNX	4.92%	1.41	17.31	--
17	Fidelity Advisor High Income Advantage A	FAHDX	4.73%	1.78	17.27	10.93
18	USAA High Income	USHYX	6.36%	1.96	17.22	11.63
19	Invesco High Yield A	AMHYX	5.74%	1.43	17.1	10.45