Shenkman Capital Floating Rate High Income Fund Institutional Class (SFHIX)

Overview

The fund is an investment vehicle focusing on generating returns through a diversified portfolio primarily composed of floating rate financial instruments. Significant emphasis is placed on investing in senior secured and unsecured floating rate bank loans, encompassing a broad spectrum of corporate debt securities. Such an investment strategy allows the fund to leverage the dynamic nature of floating rate instruments, aiming to provide a hedge against inflation and interest rate fluctuations. This approach is grounded in allocating at least 80% of the fund's net assets, including any borrowed funds for investment purposes, to these financial instruments, ensuring a focused yet diversified investment exposure.

Products and Services

• Senior Secured and Unsecured Floating Rate Bank Loans

These are loans provided to corporate borrowers that offer interest payments which adjust according to the market interest rates. Secured loans are backed by collateral, reducing investment risk, while unsecured loans are not, offering potentially higher yields.

• Traditional Corporate Bonds, Notes, Debentures, and Zero-Coupon Bonds

These fixed-income securities are issued by corporations to finance their operations, expansions, or other projects. They offer a fixed (or, in the case of zero-coupon bonds, accruing) return over their lifespan and meet the fund's criteria for floating rate exposure through selected instruments.

• Collateralized Loan Obligations (CLOs)

CLOs are structured financial instruments that pool together multiple loans, usually senior secured loans, creating tranches with different risk levels. Investing in these allows the fund to diversify its risk while targeting higher returns compared to individual loans.

• Other Corporate Debt Securities

This category includes a wide variety of debt instruments issued by corporations, offering the fund flexibility in adjusting its portfolio according to market conditions and investment objectives.

• Obligations of the U.S. Government and Government-Sponsored Entities

Investments in securities issued or guaranteed by the U.S. government or its agencies and sponsored entities offer a lower-risk option within the portfolio. While typically offering lower yields, they provide stability and liquidity to the fund's overall investment strategy.