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JHYRX

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High-Yield Fund

Core High-Yield Fixed Income
NAV As of 02/14/19 $8.10

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Fund Facts

Details Yields Morningstar (As of 01/31/19)
12/29/95 Inception Date
$1.33B Total Net Assets (As of 01/31/19)
GROSS 1.45%
NET 1.45%
Annual Expense Ratio
(As of fiscal year end 06/30/18)
4.62% Distribution Yield at NAV
(As of 01/31/19)
30 Day SEC Yield (As of 01/31/19)
With Waivers 5.20%
Without Waivers 5.04%
Monthly Distribution Frequency
Performance (As of 02/14/19)
0.14% 1 Day Return %
4.97% YTD Return
Category
High Yield Bond
HIGH LIMITED
HIGH MODERATE
HIGH EXTENSIVE
MEDIUM LIMITED
MEDIUM MODERATE
MEDIUM EXTENSIVE
LOW LIMITED
LOW MODERATE
LOW EXTENSIVE
Fixed Income Style Box *
Important Morningstar Information

Overview

Client Commitment

The Fund’s core high-yield strategy seeks strong, risk-adjusted results by investing in transformational balance sheet opportunities. Driven by a fundamentally based investment process, this dynamic, risk-aware approach seeks to temper the downside risks associated with the high-yield asset class over a full market cycle.

Why Invest in the Fund

    Core High Yield

  1. The Fund seeks to identify high-yield corporate bonds from companies committed to transforming and improving their capital structure. Our fixed income team is structured around credit industries with fundamental credit analysis driving decision-making at every level of the investment process.
  2. Integrated Research

  3. Partnership and fluid communication between fixed income and equity analysts promote idea generation. Credit research emphasizes free-cash-flow generation, quality of management and security valuation.
  4. Sophisticated Risk Management

  5. Our proprietary fixed income portfolio and risk-management system, Quantum Global, is integrated into the investment process at each step. We identify and measure sources of risk in the portfolio at multiple levels to confirm that the portfolio is positioned as intended.

Featured Insights

Performance

RETURNS

(As of 12/31/2018)
(As of 01/31/2019)
Inception: Dec 29, 1995 3M YTD 1YR 3YR 5YR 10YR Since Inception
High-Yield Fund – R Shares -4.62% -3.66% -3.66% 4.51% 2.30% 8.42% 6.43%
Bloomberg Barclays U.S. Corporate High Yield Bond Index -4.53% -2.08% -2.08% 7.23% 3.83% 11.12% 6.81%
Inception: Dec 29, 1995 3M YTD 1YR 3YR 5YR 10YR Since Inception
High-Yield Fund – R Shares 1.11% 4.14% -0.30% 6.43% 3.01% 8.35% 6.60%
Bloomberg Barclays U.S. Corporate High Yield Bond Index 1.40% 4.52% 1.73% 9.41% 4.61% 10.97% 6.99%
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold.
View Fees and Expenses
Performance for Class R Shares that includes periods prior to 7/6/09 reflects the performance of one or more share classes of the Fund or a predecessor fund, adjusted, where applicable and permitted, for differing fees and expenses. See the Fund’s prospectus for further details concerning historical performance.

MORNINGSTAR PERCENTILE

(As of 12/31/2018)
(As of 01/31/2019)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 74 81 72 77 21
High Yield Bond Category
Rank/Count
506/713 544/669 435/605 379/468 42/205
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 82 78 72 76 20
High Yield Bond Category
Rank/Count
579/720 534/672 441/608 387/470 42/205

CALENDAR YEAR PERFORMANCE

GROWTH OF A $10,000 HYPOTHETICAL INVESTMENT

Source: Morningstar, Inc.
This graph compares fund performance to that of the fund’s Morningstar category average and benchmark(s).

RETURNS-BASED STATISTICS

(As of 01/31/19 CLASS I SHARES)

RISK / REWARD
VS. BLOOMBERG BARCLAYS U.S. CORPORATE HIGH YIELD BOND INDEX

3 YEAR 5 YEAR
Information Ratio -1.46 -0.54
Alpha -0.34 0.00
Tracking Error 1.52 1.62
Beta 0.81 0.81
R-Squared (%) 92.11 92.55

UP AND DOWN MARKET CAPTURE (%)
VS. BLOOMBERG BARCLAYS U.S. CORPORATE HIGH YIELD BOND INDEX

3 YEAR 5 YEAR
Up Capture Ratio 82.21 83.99
Down Capture Ratio 105.27 87.77

STANDARD DEVIATION

3 YEAR 5 YEAR
High-Yield Fund 4.20 4.57
Bloomberg Barclays U.S. Corporate High Yield Bond Index 4.99 5.44

SHARPE RATIO

3 YEAR 5 YEAR
High-Yield Fund 1.46 0.67
Bloomberg Barclays U.S. Corporate High Yield Bond Index 1.67 0.73

ANNUAL FEES & EXPENSES

(As of Fiscal Year End, 06/30/18)

CLASS R SHARES
Management Fees 0.56%
12b-1 Fees 0.50%
Other Expenses 0.39%
Total Gross Expenses 1.45%
Waivers 0.00%
Total Net Expenses 1.45%
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 11/1/19.

Characteristics

TOP HOLDINGS

(As of 01/31/2019)

% of Fund
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, 7.25%, 05/15/24 2.06
Sprint Corp, 7.12%, 06/15/24 2.06
Golden Nugget Inc, 8.75%, 10/01/25 1.92
Allegheny Technologies Inc, 7.88%, 08/15/23 1.40
Dole Food Co Inc, 7.25%, 06/15/25 1.37
Zekelman Industries Inc, 9.88%, 06/15/23 1.20
Freeport-McMoRan Inc, 4.55%, 11/14/24 1.18
CCO Holdings LLC / CCO Holdings Capital Corp, 5.12%, 05/01/27 1.17
Cablevision Systems Corp, 5.88%, 09/15/22 1.11
Jacobs Entertainment Inc, 7.88%, 02/01/24 1.10
TOTAL 14.57

PORTFOLIO CHARACTERISTICS

(As of 01/31/19)

FUND INDEX
Number of Holdings
Debt Issues
181
1934
Portfolio Turnover Rate
(1-year trailing)
92.80%
-
Weighted Average Maturity
(years)
6.47
5.77
Effective Duration
(years)
3.37
3.66

DEVELOPED VS. EMERGING MARKET

(As of 01/31/19)

% OF FUND % OF INDEX
U.S. 85.70 85.97
Non-U.S. Developed 9.62 13.72
Non-U.S. Emerging 1.58 0.31
Cash & Equivalents 3.10 -

CREDIT QUALITY OF FIXED INCOME HOLDINGS

(As of 01/31/19)

% OF FUND % OF INDEX
A 0.33 -
Baa 5.00 1.15
Ba 28.29 44.63
B 44.48 39.68
Caa 14.56 13.62
Ca 0.24 0.60
NOT RATED 3.08 0.23
Bond credit quality ratings provided by Barclays and reflect the middle rating received from Moody's, Standard & Poor's and Fitch, where all three agencies have provided a rating. If only two agencies rate a security, the lowest rating is used. If only one agency rates a security, that rating is used. Ratings are measured on a scale that ranges from Aaa (highest) to D (lowest).

SECTOR ALLOCATION

(As of 01/31/19)

% OF FUND % OF INDEX
US Common Stock 0.81 -
Non-US Common Stock 0.11 -
Credit-High Yield 83.20 98.85
Bank Loans 4.12 -
Credit-Investment Grade 3.22 1.15
Credit Default Swap 2.26 -
Convertibles 1.65 -
ABS 1.53 -
Cash & Equivalents 3.10 -

MATURITY BREAKDOWN OF FIXED INCOME HOLDINGS

(As of 01/31/19)

% OF FUND % OF INDEX
1 - 3 yrs 6.34 14.91
3 - 5 yrs 27.37 29.11
5 - 7 yrs 38.62 31.43
7 - 10 yrs 21.11 19.86
10 - 20 yrs 0.86 3.08
> 20 yrs 1.68 1.57

REGIONAL ALLOCATION

(As of 01/31/19)

% OF FUND % OF INDEX
North America 86.64 90.16
Europe 7.70 8.94
Africa/Mideast 2.56 0.07
Cash & Equivalents 3.10 -

Commentary & Literature

4Q18 Portfolio Commentary Highlights

  • Concerns of a policy misstep by the Fed coupled with slowing global economic growth and continued trade tensions led to significant spread widening in high-yield corporate credit.
  • In a challenged quarter for risk assets, our more conservative security selection led the Fund to outperform its benchmark.
  • Valuations after the recent sell-off have become more compelling, but thorough vetting of opportunities and disciplined security avoidance are still required.

Read The Full Commentary