Large American corporations need capital to sustain their operations and grow. This need spells opportunity for our Senior Floating Rate Fund, which provides companies the loans they need while seeking to benefit our investors.
Yet each company and loan merit individual attention. The attractiveness of a loan would depend on a company’s and industry’s prospects, which is why we spend a great deal of time analyzing the outlook for the businesses to which we lend and their sectors.
Senior loans are typically lower-rated and may be illiquid investments (which may not have a ready market). The Fund may invest without limit in below-investment-grade securities. The Fund may invest a variable amount in debt rated below “B.” may invest 25% or more of its assets in securities issued by companies in the financial services sector which may be susceptible to economic and regulatory events, and increased volatility. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Fixed income investing entails credit and interest rate risks. When interest rates rise, bond prices generally fall, and the Fund’s share prices can fall. Derivative instruments entail higher volatility and risk of loss compared to traditional stock or bond investments. Leverage (borrowing) involves transaction and interest costs on amounts borrowed, which may reduce performance.