Barrow Hanley Credit Opportunities Fund I Shares (BCONX)

Overview

The fund described is a specialized investment vehicle that dedicates the majority of its resources to credit instruments. By focusing on allocating at least 80% of its net assets, along with any funds borrowed for investment purposes, this fund specializes in a diverse range of debt securities and instruments that have debt-like characteristics. Its investment approach is designed to capitalize on the opportunities within the credit markets, targeting instruments that yield higher returns, which often come with higher risks. This strategic allocation covers a wide spectrum of credit instruments to diversify its portfolio and manage risk effectively.

Products and Services

The fund offers a comprehensive range of investment products and services, focusing on various credit instruments to meet the different investment objectives of its clients. Each product or service is specially designed to capitalize on the opportunities within the credit markets while managing the inherent risks of investing in high yield and other debt instruments.

• High Yield Bonds - These are bonds that offer higher interest rates because they have a lower credit rating compared to investment-grade bonds. High yield bonds present an opportunity for higher returns, albeit with an increased risk of default.
• Bank Loans and Loan Participations and Assignments - This category includes secured and unsecured loans made to businesses. Loan participations allow investors to purchase a share of a loan, while assignments involve the transfer of a loan from one lender to another.
• Collateralized Loan Obligations (CLOs) - CLOs are a type of structured credit instrument that pools together loans and then slices the pool into tranches with different risk levels, offering an array of risk/return investment options.
• Mortgage- and Asset-Backed Securities - These securities are backed by mortgage loans or other financial assets. The income from these underlying assets is used to pay investors, making them an appealing investment for those seeking regular income.
• Structured Notes - Structured notes are debt securities whose return is linked to the performance of a specific asset, index, or interest rate. They can be tailored to offer protection of principal while also providing upside potential.
• Convertible Securities - These are bonds or preferred stock that can be converted into a predetermined number of the company's shares, usually at the discretion of the holder. Convertible securities blend features of both debt and equity investments.
• Preferred Stock - Preferred stock is a type of equity that often offers a fixed dividend and has priority over common stock in dividend payments and upon liquidation. However, preferred shareholders typically do not have voting rights.
• Shares of Investment Companies - This includes investments in other mutual funds or investment companies that primarily focus on credit instruments. It allows investors to diversify their portfolios across various credit investments managed by different teams.