Floating Rate Bank Loan Strategy
The strategy offers the potential for attractive total return and income by investing in higher quality, non-investment grade bank loans. Using extensive credit and company analysis and monitoring, the portfolio managers look for those securities with strong income potential while maintaining an emphasis on managing risk.
Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt
security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this
risk may be enhanced with longer-term maturities.
Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary
market. Loans can carry significant credit and call risk, can be difficult to value and have longer settlement times than other investments, which can
make loans relatively illiquid at times.
High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than
investment grade securities.
Leverage: When a fund leverages its portfolio, the value of its shares may be more volatile and all 102 5 Leverage other risks may be compounded.
Liquidity: Certain securities may be difficult to sell at a time and price beneficial to the fund.