Generate a higher level of income than a typical fixed income fund, with an increased level of risk.
Timothy Plan’s High Yield Bond fund seeks to provide its investors with higher than average income in fixed security investment vehicles. The primary investments are debt securities that may offer a higher level of risk, but are also poised to deliver greater returns. Commonly referred to as junk bonds, the fund’s manager acquires debt securities after determining the potential for return balances with the stated risk tolerance. Call 1.800.846.7526 or chat online if you need any assistance.
The Fund's objective is to generate a high level of current income consistent with prudent investment risk. To achieve this goal, the Fund normally invests in a diversified portfolio of debt securities. These include corporate bonds, convertible securities and preferred securities. The investment manager will generally purchase securities for the Fund that are not investment grade, meaning securities with a rating of "BB" or lower as rated by Standard & Poor's or a comparable rating by another nationally recognized rating agency.
In managing its portfolio, the Fund concentrates on sector analysis, industry allocation and securities selection deciding which types of bonds and industries to emphasize at a given time, and then which individual bonds to buy. The Fund attempts to anticipate shifts in the business cycle in determining types of bonds and industry sectors to target. In choosing individual securities, after considering the moral screens, the Fund seeks out securities that appear to be undervalued within the emphasized industry sector.