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Top 5 Highest Yielding Corporate Bond Funds
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ShareCorporate bond funds generally offer higher returns compared to other bond funds but also can carry higher risk. However, they are a suitable option for investors seeking relatively strong income levels on a regular basis. Since a large number of securities are part of the fund’s portfolio, losses incurred by a particular corporation are offset by gains made by other companies. By holding a well diversified portfolio with low minimum investment requirements, corporate bond funds significantly reduce the risks and costs involved for investors.
Below we will share with you the 5 highest yielding Zacks #1 ranked corporate bond funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all corporate bond funds, then click here.
| Mutual Fund | SEC Yield |
| John Hancock Bond A | 9.95% |
| Westcore Flexible Income | 7.83% |
| Earnest Partners Fixed Income | 6.55% |
| Principal Preferred Securities A | 6.43% |
| MFS Bond A | 5.94% |
John Hancock Bond A (JHNBX) invests the majority of its assets in bonds with differ ratings and maturity periods. The fund invests in corporate bonds and debentures but may also invest in U.S. government securities. Up to 10% of its assets may be used to hold cash or cash equivalents. A similar amount may be used to purchase securities which are not denominated in U.S. dollars. The corporate bond fund has a three year annualized return of 6.14%.
The Fund Manager is Barry H Evans and he has managed this corporate bond fund since 2002.
Westcore Flexible Income (WTLTX) seeks total return over the long term. At least 80% of its assets are used to purchase fixed income securities. This includes corporate bonds and notes, government securities and income generating equity securities. The fund has a ten year annualized return of 5.99%.
The corporate bond fund has an expense ratio of 0.85% compared to a category average of 1.21%.
Earnest Partners Fixed-Income (EPFTX) invests the majority of its assets in bonds rated investment grade by a renowned ratings firm or securities of similar quality. It focuses on acquiring in securities which are underpriced relative to their intrinsic value. The corporate bond has a five year annualized return of 5.72%.
As of December 2009, this corporate bond fund held 69 issues, with 3.80% of its total assets invested in Reinauer Maritime 5.875%.
Principal Preferred Securities A (PPSAX) seeks current income. The fund invests heavily in preferred securities issued by U.S. companies which are rated investment grade or higher. If the security selected is unrated, then it must be of similar quality. The corporate bond fund returned 85.54% in the last one year period.
The corporate bond fund has an expense ratio of 1.00% compared to a category average of 0.95%.
MFS Bond A (MFBFX) invests the majority of its assets in debt securities. It purchases debt securities rated investment grade as well as lower quality instruments. It also invests in foreign securities and derivatives.The corporate bond fund returned 31.24% over the last one year period and has a three year annualized return of 5.82%.
Richard O. D. Hawkins is the fund manager and he has managed this corporate bond fund since 2005.
To view the Zacks Rank and past performance of all corporate bond funds, then click here.
About Zacks Mutual Fund Rank
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. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
Read the full analyst report on JHNBX
Read the full analyst report on WTLTX
Read the full analyst report on EPFTX
Read the full analyst report on PPSAX
Read the full analyst report on MFBFX
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| Market Summary | May 26, 2012 07:58 am ET |
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