Investment Objective
Nicholas High Income Fund, Inc. seeks to provide high levels of current income by investing in a diversified portfolio that includes primarily high yield bonds. Its secondary objective is capital appreciation. The Fund may invest in securities of any credit quality, as well as unrated securities.

Investment Policies & Considerations
We seek to add value by capitalizing on our ability to identify undervalued companies with outstanding growth potential. Our in-depth credit analysis considers each issuer’s financial resources, sensitivity to economic trends and conditions, operating history, management, and other factors. Our expertise in equity analysis enhances our bond assessments because high yield bonds and equity securities tend to respond to market fluctuation similarly.

We do not limit the maturities of the holdings in Nicholas High Income Fund, and the Fund may invest in both long- and short-term debt and equity securities.

Mutual fund investing involves risk: loss of principal is possible.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securiites such as limited liquidity and greater volatility. The Nicholas High Income Fund invests in lower-rated and non-rated securities, which presents a greater risk of loss to principal and interest than higher-rated securities.