Barrow Hanley Floating Rate Fund I Shares (BFRNX)

Overview

The fund described is focused on investing a significant portion of its assets into floating rate instruments. This investment strategy is aimed at taking advantage of the periodic interest rate adjustments these instruments undergo to adapt to market conditions. By maintaining at least 80% of its net assets, in addition to any borrowings for investment purposes, in these instruments, the fund seeks to provide investors with potential income that aligns with current interest rate environments. This approach can offer a degree of protection against the risk of rising interest rates, as the payouts from the securities it holds will generally increase along with interest rates, potentially mitigating the depreciation in the value of the securities.

Products and Services

• Floating Rate Instruments:

  These are the primary offerings of the fund, comprising debt instruments issued by corporations or other entities. The defining characteristic of floating rate instruments is their variable interest rates, which are adjusted at predetermined intervals—daily, monthly, quarterly, or semi-annually—based on changes in a specified benchmark interest rate. This feature makes them an attractive option for investors looking to benefit from a rising interest rate environment or to obtain higher yields than what might be available from fixed-rate securities under certain market conditions.