Nicholas High Income Fund, Inc.

NCINX - (Class I)

NNHIX - (Class N)

High Yield Corporate Bond



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.
 


 

  • Snapshot
  • Objective
  • Performance
  • Portfolio Manager
  • Distribution History
  • Documents &
    Forms

Investment Approach

Nicholas High Income Fund seeks to provide a high level of current income by investing in a diversified portfolio of primarily high yield corporate bonds. The Fund’s secondary objective of capital appreciation is pursued by investing in securities that offer the opportunity for price appreciation in addition to high income. The Fund is typically benchmarked against the BofA Merrill Lynch US High Yield Constrained Index.


 

Fund Facts

Portfolio Manager: Lawrence J. Pavelec
Style: High Yield Corporate Bond
Fund Inception: 11/21/1977
Fund Assets (millions):  
    Class I $97.5*
    Class N $3.5*
Number of Holdings: 87*
   
* as of 06/30/2016  
Min. Initial Investment Class I: $100,000
Min. Initial Investment Class N: $500
Fiscal Year-End: December 31
Prospectus Date Class I: April
Prospectus Date Class N: January & April
Cusip Class I: 653741108
Cusip Class N: 653741207
Ticker Class I: NCINX
Ticker Class N: NNHIX

 

Characteristics*

Weighted Avg Price: 94.98
Weighted Avg Years to Maturity: 5.88
Weighted Avg Effective Duration: 3.67
Weighted Avg Spread Over Treasury: 534
Weighted Avg Option Adjusted Spread: 472
Number of Holdings: 87
Turnover Rate (12/31/2015): 41.30%
   
   

*As of 06/30/2016
Source: Factset


 

Ratings Breakout*

Top Ten Holdings*

Holdings % Net Assets
CDW LLC 2.74%
CCO Holding, LLC 2.54%
Florida East Coast Holdings Corp. 2.39%
PetSmart, Inc. 2.26%
Kinder Morgan, Inc. 2.19%
DaVita Inc. 2.07%
CyrusOne LP 2.06%
Zayo Group, LLC 2.01%
GEO Group, Inc. (The) 2.00%
CNH Industrial Capital LLC. 1.94%
Total 22.20%

Ratings breakout based on Moody’s. If not rated by Moody’s, then S&P; or if not rated by either Moody’s or S&P, then Fitch. No holdings in unrated securities.

*Data as of 06/30/16 unless stated otherwise.

 


 

Morningstar Ratings

Class I    
  Rating # of Funds
Overall 653
3 Year 653
5 Year 5 stars 529
10 Year 5 star 371

Morningstar Category: High Yield Bond
Source: Morningstar, as of June 30, 2016.
The Overall Morningstar Rating™ for a fund is derived from a weighted average
of the risk-adjusted performance figures associated with its three-,five- and ten year (if applicable) Morningstar Rating™ metrics. (3)

 

Class N    
  Rating # of Funds
Overall 653
3 Year 653
5 Year 2 stars 529
10 Year 2 star 371

(3) © [2016] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or loses arising from any use of this information. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating ™ (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance, including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) One cannot invest directly in an index. Fund holdings and/or sector weightings are subject to change at any time and are not recommendations to buy or sell any security. 

Past performance does not guarantee future results.

 

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.

Diversification does not assure a profit nor protect against loss in a declining market.

Nicholas Funds are distributed by Quasar Distributors, LLC

  •  Quarter-End Performance
  • Month-End Performance
  • Quarterly Performance Presentation

As of June 30, 2016

Average Annual Returns

Fund 3 Month YTD  1 Year  3 Year 5 Year 10 Year
Nicholas Fund (NICSX) 1.87% 0.35% -8.53% 10.96% 12.30% 8.97%
Nicholas II - Class I (NCTWX) -0.28% 0.08% -5.72% 10.02% 9.69% 7.86%
Nicholas II - Class N (NNTWX) -0.33% -0.04% -6.04% 9.66% 9.32% 7.50%
Nicholas Limited Edition - Class I (NCLEX) 2.88% 2.70% -3.94% 7.58% 8.03% 8.16%
Nicholas Limited Edition - Class N (NNLEX) 2.75% 2.51% -4.31% 7.20% 7.65% 7.81%
Nicholas Equity Income Fund (NSEIX) 3.62% 6.30% 0.34% 8.75% 9.97% 9.65%
Nicholas High Income Fund - Class I (NCINX) 2.75% 5.13% -1.88% 2.13% 4.30% 5.14%
Nicholas High Income Fund - Class N (NNHIX) 2.64% 4.98% -2.25% 1.74% 3.94% 4.83%
             

 

  1 Year 5 Year 10 Year 7-Day Yield 7-Day
Effective
Yield
 
Nicholas Money Market (NICXX) 0.00% 0.00% 0.96% 0.00% 0.00%  

 

The 7-Day Yield quotation, rather than the Total Return quotation, more closely reflects the current earnings of the Fund.

Performance data quoted represents past performance and does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Performance current to the most recent month end may be lower or higher than the performance quoted.

As of August 31, 2016

Average Annual Returns

Fund 3 Month YTD  1 Year  3 Year 5 Year 10 Year
Nicholas Fund (NICSX) -0.49% 1.31% -3.90% 9.77% 14.23% 8.98%
Nicholas II - Class I (NCTWX) 2.24% 4.53% 2.48% 10.16% 13.25% 8.25%
Nicholas II - Class N (NNTWX) 2.15% 4.31% 2.13% 9.77% 12.85% 7.88%
Nicholas Limited Edition - Class I (NCLEX) 6.76% 9.74% 9.70% 8.37% 11.70% 8.98%
Nicholas Limited Edition - Class N (NNLEX) 6.69% 9.52% 9.34% 8.00% 11.32% 8.64%
Nicholas Equity Income Fund (NSEIX) 3.52% 9.69% 10.71% 9.19% 12.53% 9.73%
Nicholas High Income Fund - Class I (NCINX) 3.84% 8.19% 3.10% 2.78% 5.49% 5.31%
Nicholas High Income Fund - Class N (NNHIX) 3.82% 8.04% 2.72% 2.45% 5.11% 4.95%
             

 

  1 Year 5 Year 10 Year 7-Day Yield 7-Day
Effective
Yield
 
Nicholas Money Market (NICXX) 0.00% 0.00% 0.88% 0.00% 0.00%  

 

The 7-Day Yield quotation, rather than the Total Return quotation, more closely reflects the current earnings of the Fund.

Performance data quoted represents past performance and does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Performance current to the most recent month end may be lower or higher than the performance quoted.

Click the icon below to access the
Fund's Quarterly Performance Presentation

Quarterly Performance Presentation

 

Nicholas Fund's Expense Ratio: 0.72%
Nicholas II – Class I's Expense Ratio: 0.62%
Nicholas II – Class N's Expense Ratio: 0.96%
Nicholas Limited Edition – Class I's Expense Ratio: 0.86%
Nicholas Limited Edition – Class N's Expense Ratio: 1.21%
Nicholas Equity Income Fund's Expense Ratio: 0.72%
Nicholas High Income Fund – Class I's Expense Ratio: 0.71%(1)
Nicholas High Income Fund – Class N's Expense Ratio: 1.06%(1)
Nicholas Money Market Fund's Expense Ratio: 0.51%

The Adviser has agreed to voluntarily absorb management fees of 0.30% of Nicholas Money Market Fund's average net assets on an annual basis during the fiscal year ending December 31, 2016. This absorption continues today; however, the Adviser may decrease or discontinue it at any time.  The most recent expense ratios can be found in each funds current annual or semiannual report.

(1)The expense ratio may not correlate to the "Ratio of expenses to average net assets" provided in the Financial Highlights in the Fund's Annual or Semiannual Report. The information in the Financial Highlights reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses. "Acquired Fund Fees and Expenses" are those expenses incurred indirectly by the Fund as a result of acquiring investments in shares of one or more other investment companies.

Nicholas Money Market Fund has fee waivers in effect. Investment performance reflects these fee waivers. In the absence of such waivers, total returns would be reduced.

 

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Lawrence J. Pavelec, CFA

Chief Operating Officer, Senior Vice President and Portfolio Manager
Industry experience: 32 years
Nicholas Company Tenure: 13 years

 

Larry Pavelec serves in a leadership position for Nicholas Company as the Chief Operating Officer and head of product distribution.  This position involves collaborating with the other senior members of the Management Committee on strategic initiatives for the Company.  He also serves as an analyst and client portfolio manager for the separately managed account equity portfolios and manager for the Nicholas High Income Fund, a high yield corporate bond fund.

As portfolio manager for the high yield corporate fund, he employs a bottom-up, value approach philosophy that focuses on companies with sufficient earnings growth and adequate asset coverage to meet debt obligations. Nicholas High Income Fund is generally positioned with a short-to-intermediate maturity structure and securities that we believe tend to provide more stability during difficult markets, while generating a market level of income consistent with the high yield corporate sector.

Larry joined Nicholas Company in 2003, to serve as the portfolio manager for the Nicholas High Income Fund and lead the product distribution effort.  Larry's career as a credit analyst and portfolio manager began in 1984 with M&I Investment Management Corp., where he focused on investment-grade corporate bonds, asset-backed securities and mortgage-backed securities. Before joining Nicholas, he was with Brandes Investment Partners as the co-manager for Brandes Fixed Income Partners, serving as portfolio manager and head of marketing for the firm.

Larry earned his B.S. in Finance from the University of Wisconsin at La Crosse. He has served on various non-profit boards over the years including the Mequon-Theinsville Education Foundation and North Shore County Club.  He has earned the right to use the CFA designation and is a member of the CFA Society Milwaukee.

 


 

NOTE: None of the distributions included income from U.S. Treasuries, U.S. Agencies, state government or municipalities.
 

Distribution Year

Share Class

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Distribution History 2016 - Class I

Pay Date Net
Investment Income
Short Term
Capital Gains
Long Term
Capital Gains
Total
Distribution
12/28/2016 TBD TBD TBD TBD
10/27/2016 TBD TBD TBD TBD
07/28/2016 0.1015 0.0000 0.0000 0.1015
04/28/2016 0.1024 0.0000 0.0000 0.1024
         

TBD = To Be Determined

 

Distribution Year
  • 2016
Share Class
  • Class I

Distribution History 2016 - Class N

Pay Date Net
Investment Income
Short Term
Capital Gains
Long Term
Capital Gains
Total
Distribution
12/28/2016 TBD TBD TBD TBD
10/27/2016 TBD TBD TBD TBD
07/28/2016 0.0950 0.0000 0.0000 0.0950
04/28/2016 0.0963 0.0000 0.0000 0.0963


TBD = To Be Determined

Distribution Year
  • 2016
Share Class
  • Class N

Please print, complete and mail to the appropriate address:

Nicholas Family Of Funds
c/o U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701

Overnight Express:

Nicholas Family Of Funds
c/o U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202


Order By Telephone

1-800-544-6547

Automated transactions are available 24 hours a day, 7 days a week.

To speak to a representative, call Monday - Friday, from 8am - 7pm, Central Time.

Shareholders calling from outside the U.S. may call collect, 414-765-4124, Monday - Friday, from 8am -7pm, Central Time.



The Nicholas Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Nicholas Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. 

An investment in the Money Market Fund, Inc. is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Please refer to each prospectus for important information about each investment company, including investment objectives, risks, charges and expenses. 

Mutual fund investing involves risk; principal loss is possible. Small- and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities such as limited liquidity and great volatility. Investment by the Funds in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. 

Past performance does not guarantee future results.

Diversification does not assure a profit nor protect against loss in a declining market.

Glossary of terms   |   Privacy & Security

Nicholas Funds are distributed by Quasar Distributors, LLC

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