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 the upper tier of the lower-rated bond market, as well as unrated securities that the managers believe are of equivalent credit quality.

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.

Securities must be rated B or better at date of purchase to be included in our portfolio. We do not limit the maturities of the holdings in Nicholas Income Fund, and may include both long- and short-term debt and equity securities. In addition, while the portfolio will generally be diversified with regard to industry and company, it may invest up to 50% of total net assets in the securities of electric companies.

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.

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