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Having trouble finding a High Yield - Bonds fund? Well, Macquarie High Income R6 (IHIFX - Free Report) would not be a good potential starting point right now. IHIFX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
IHIFX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as "junk" bonds,High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.
History of Fund/Manager
Nomura is based in New York, NY, and is the manager of IHIFX. Macquarie High Income R6 debuted in July of 2014. Since then, IHIFX has accumulated assets of about $32.37 million, according to the most recently available information. The fund's current manager, John McCarthy, has been in charge of the fund since November of 2021.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 2.99%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 6.67%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 10.03%, the standard deviation of IHIFX over the past three years is 5.37%. Over the past 5 years, the standard deviation of the fund is 7.31% compared to the category average of 11.5%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
If you believe interest rates will rise, this is an important factor to look at. IHIFX has a modified duration of 2.96, which suggests that the fund will decline 2.96% for every hundred-basis-point increase in interest rates.
Income
Since income is, of course, a big reason for purchasing a fixed income security, it is always important to consider the fund's average coupon. A fund's average coupon is simply its average payout in a given year. For example, this fund's average coupon of 7.34% means that a $10,000 investment should result in a yearly payout of $734.
A higher coupon is good for those seeking a strong level of current income, but it could also pose a reinvestment risk if rates are lower in the future when compared to the initial purchase date of the bond. Income is only one part of the bond picture, investors also need to consider risk relative to broad benchmarks.
With a beta of 0.17, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, IHIFX has a positive alpha of 2.29 , which measures performance on a risk-adjusted basis.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, IHIFX is a no load fund and it has an expense ratio of 0.54%.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
With a 'strong sell' rank, Macquarie High Income R6 is in the bottom 20% of all mutual funds we cover. This means that our models suggest it is one of the worst options for investors in High Yield - Bonds right now, though this could change if the performance of the fund and the Zacks Ranks of the equities in IHIFX turnaround in the next data release.
Don't stop here for your research on High Yield - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare IHIFX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is IHIFX a Strong Bond Fund Right Now?
Having trouble finding a High Yield - Bonds fund? Well, Macquarie High Income R6 (IHIFX - Free Report) would not be a good potential starting point right now. IHIFX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
IHIFX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as "junk" bonds,High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.
History of Fund/Manager
Nomura is based in New York, NY, and is the manager of IHIFX. Macquarie High Income R6 debuted in July of 2014. Since then, IHIFX has accumulated assets of about $32.37 million, according to the most recently available information. The fund's current manager, John McCarthy, has been in charge of the fund since November of 2021.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 2.99%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 6.67%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 10.03%, the standard deviation of IHIFX over the past three years is 5.37%. Over the past 5 years, the standard deviation of the fund is 7.31% compared to the category average of 11.5%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
If you believe interest rates will rise, this is an important factor to look at. IHIFX has a modified duration of 2.96, which suggests that the fund will decline 2.96% for every hundred-basis-point increase in interest rates.
Income
Since income is, of course, a big reason for purchasing a fixed income security, it is always important to consider the fund's average coupon. A fund's average coupon is simply its average payout in a given year. For example, this fund's average coupon of 7.34% means that a $10,000 investment should result in a yearly payout of $734.
A higher coupon is good for those seeking a strong level of current income, but it could also pose a reinvestment risk if rates are lower in the future when compared to the initial purchase date of the bond. Income is only one part of the bond picture, investors also need to consider risk relative to broad benchmarks.
With a beta of 0.17, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, IHIFX has a positive alpha of 2.29 , which measures performance on a risk-adjusted basis.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, IHIFX is a no load fund and it has an expense ratio of 0.54%.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
With a 'strong sell' rank, Macquarie High Income R6 is in the bottom 20% of all mutual funds we cover. This means that our models suggest it is one of the worst options for investors in High Yield - Bonds right now, though this could change if the performance of the fund and the Zacks Ranks of the equities in IHIFX turnaround in the next data release.
Don't stop here for your research on High Yield - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare IHIFX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.