AIM High Yield AAMHYX

Morningstar Rating

Fund Research and Analysis

by Michael Herbst

Improvements at AIM High Yield have been a long time coming, but they appear to be taking root.

We've long had a skeptical view of this fund. Its current management took over in 2000 and 2001 during the fund's ugly meltdown. In the early years of its current bosses' tenure, the fund's strategy became a touch more moderate, yet it has remained one of the high-yield bond category's more aggressive offerings. Read more

Kudos

Upon taking the helm, management took steps to curb this fund's formerly aggressive tendencies by increasing diversification and risk monitoring.

The fund's performance has improved markedly under current management.

Fees have come down to more reasonable levels. Read more

Risks

Management faces stiff competition from rivals sporting deeper research and risk-management expertise.

The fund has tended to sustain bigger losses in down months than its typical peer.

Above-average volatility. Read more

Strategy

Comanagers Peter Ehret, Carolyn Gibbs, and Darren Hughes try to find good values and decent yields. To build the fund's yield, they also home in on riskier, higher-yielding bonds that have relatively short time periods until they mature. Read more

Management

Carolyn Gibbs and Peter Ehret became managers of this fund in 2000 and 2001, respectively. Ehret oversees the fund's day-to-day activities. Longtime analyst and trader Darren Hughes was promoted to comanager in April 2005. A group of six analysts supports the team. Read more

Inside Scoop

This fund has come a long way since its meltdown in 2000-02. In recent years, efforts by its advisor Invesco to deepen management's research and trading resources appear to be paying off. Read more

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