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A High-Yield Fund With a Unique Approach

Shenkman Short Duration High Income takes a conservative strategy that should hold up well in a rising rate environment.

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Brian Moriarty: Shenkman Short Duration High Income offers investors a unique approach to high-yield bond investing. Like the name suggests, this is a short duration fund, which means it buys bonds with short maturities and has less interest-rate risk than peers. This means that during an interest-rate spike, when most peers would lose money, this fund should hold up relatively well.

The fund also stands out for its conservative approach to high-yield bond-picking. Analysts rank companies based on a variety of factors including free cash flow, operating trends, enterprise value, senior management, and capital structure. Only the highest-scoring companies are even considered for inclusion in the portfolio.

Brian Moriarty does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.