Mutual Funds

Invesco Floating Rate Fund

Alternatives | Bank Loans

Objective & Strategy

The fund seeks total return, comprised of current income and capital appreciation by investing at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in senior secured floating rate loans made by banks and other financial institutions and in senior secured floating rate debt instruments.

Taxable noninvestment grade

Invesco Floating Rate Fund seeks to provide a high level of current income and capital appreciation by investing in senior loans made to corporations (usually rated below investment grade) by large banks and other financial institutions.

Distinct structure may help mitigate risk

We believe the unique structure of senior secured loans typically helps mitigate credit and interest rate risk and the growing popularity of these loans has helped to reduce liquidity risk.

Senior Secured Loans Are A Priority of Repayment in the Event of Default
Senior secured loans rank highest in the capital structure

There is a risk that the value of the collateral required on investments in senior secured floating rate loans and debt securities may not be sufficient to cover the amount owed, may be found invalid, may be used to pay other outstanding obligations of the borrower or may be difficult to liquidate.

This unique asset class behaves differently from traditional fixed income investments.

  • Floating Rates. The rate of return for loans is usually determined by a fixed credit spread over the London Interbank Offering Rate (LIBOR). As interest rates (and LIBOR) move, the absolute return for the loan will self-adjust to changes in market interest rates. Returns on senior secured loans typically increase in a rising rate environment and decrease in declining interest rate environment.
  • Current Income. Senior secured loans, like traditional bond funds, generate current income as companies pay their contractual interest on (at least) a quarterly basis.
  • Low Correlation. Due to their unique structure senior secured loans have historically had a low correlation with other types of fixed income investments such as government bonds, municipal and investment grade bonds as well as equities. Incorporating senior secured loans can complement other investments as well as provide diversification to a portfolio.

Diversification does not guarantee a profit or eliminate the risk of loss

Correlation indicates the degree to which two investments have historically moved in the same direction and magnitude.

Strong yield relative to other Income options

Senior secured loans have provided a very competitive yield relative to other traditional income investments. With senior secured loans this income stream comes with the added benefits of short duration while being senior in the priority of payments and secured by assets of the borrower.

Loans continued to offer investors a high level of current income with short duration

Source: Bloomberg L.P., Barclays, BAML, S&P LCD as of Dec. 31, 2015. Investment grade corporate bonds represented by a subset of Barclays U.S. Aggregate Index; the senior secured loan asset class is represented by S&P/LSTA Leveraged Loan Index; and high yield corporate bonds represented by BAML High Yield Master Index. Past performance cannot guarantee comparable future results. An investment cannot be made directly in an index. Diversification does not guarantee a profit or eliminate the risk of loss.

  $ Price Yield (%) Spread
to worst
At forward
5 Year Treasury 99-30 1.76     4.77
10 Year Treasury 99-26 2.27     8.84
Barclays US Agg Index 103.10 2.59 T + 0.78   5.68
Barclays IG Index 102.74 3.54 T + 1.62   6.90
ML US HY Index 88.82 8.77 T + 6.98   4.23
S&P/LSTA Index 91.72 L + 7.14 T + 6.00 7.30 45–60 Days
Source: Bloomberg L.P., Barclays, BAML and S&P LCD as of Dec. 31, 2015. Loan yields incorporate LIBOR forward curve as of Dec. 31, 2015. Loan "spread to worst" and "At Forward LIBOR" incorporate LIBOR forward curve as of Dec. 31, 2015.

Duration is the measure of a debt security's price sensitivity to interest rate changes, expressed in terms of years. Securities with longer durations usually are more sensitive to interest rate movements than those with shorter durations. Should interest rates change, the value of a fund that invests in securities with longer durations will fluctuate more than the value of a fund that invests in securities with shorter durations.

Index Definitions:
The Barclays U.S. Aggregate (Barclays US Agg) Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the US investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

The Barclays U.S. Corporate Investment Grade (Barclays IG) Index represents investment-grade corporate securities within the Barclays U.S. Aggregate Index.

The S&P/LSTA Leveraged Loan Index Leveraged Loan Index is a weekly total return index that tracks the current outstanding balance and spread over Libor for fully funded term loans.

The BofA Merrill Lynch High Yield Master (ML US HY) Index tracks the performance of below investment grade US dollar-denominated corporate bonds publicly issued in the US domestic market.

Invesco Senior Secured Management, Inc. ("Invesco"), with $30 billion under management, is one of the largest institutional managers of senior loans. Invesco developed one of the first institutional senior loan platforms and, ultimately, helped foster the maturation of the syndicated senior loan market. Invesco takes a long term, consistent approach to managing the senior loan market using active, bottom-up research and our senior loan platform is supported by global resources of Invesco Ltd., one of the world’s largest asset management companies.

Key highlights of Invesco Senior Secured Management

  • One of the leading pure-play investment managers with exclusive focus on senior secured senior loans
  • $27 billion under management across retail and institutional senior loans
  • Global team with local coverage in the US and Europe
  • Managing the asset class since 1989
  • 30 investment professionals with more than 16 years experience
  • Market experts through multiple stages of credit cycles
  • Multi-faceted product suite of strategic open-end and tactical closed-end funds
  • Ability to deliver customized and/or opportunistic loan strategies

Deep and experienced senior loan team

Invesco has 43 professionals exclusively dedicated to its senior loan platform.

Managing Director
Head of Global Senior Loans
Scott Baskind
Investment Research and Portfolio Management
Senior Portfolio Manager Senior Portfolio Manager Senior Portfolio Manager
Joe Rotondo Kevin Egan Tom Ewald
Product Support
Product Management Director Client Portfolio Management Senior Loan Administration
Brian Mitchell Kevin Petrovcik Robert Drobny

As of December 31, 2015. Subject to change.

as of 03/31/2016

Morningstar Rating

Overall Rating - Bank Loan Category

As of 03/31/2016 the Fund had an overall rating of 2 stars out of 212 funds and was rated 2 stars out of 212 funds, 2 stars out of 151 funds and 2 stars out of 63 funds for the 3-, 5- and 10- year periods, respectively.

Morningstar details

Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effect of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable. ©2016 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. A fund is eligible for a Morningstar Rating three years after inception. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Ratings for other share classes may differ due to different performance characteristics.

Management team

as of 03/31/2016

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
Asurion LLC 2.43
Level 3 Financing Inc. 2.16
Calpine Corporation 1.96
Texas Competitive Electric Holdings Company, LLC 1.88
Avago Technologies Cayman Ltd. 1.85
iHeartCommunications, Inc. 1.78
First Data Corporation 1.68
Delta 2 (LUX) S.a.r.l. 1.47
Federal-Mogul Holdings Corporation 1.45
Sears Roebuck Acceptance Corp. 1.32

Holdings are subject to change and are not buy/sell recommendations.

as of 03/31/2016 03/31/2016

Average Annual Returns (%)

Load (%)
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 05/01/1997 N/A 3.83 1.39 -3.36 0.84 2.84 3.00
Load 05/01/1997 2.50 3.69 -1.10 -5.78 0.02 2.33 2.74
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares.

Performance shown at NAV does not include applicable front-end or CDSC sales charges, which would have reduced the performance.

Had fees not been waived and/or expenses reimbursed currently or in the past, returns would have been lower.

as of 03/31/2016 03/31/2016

Annualized Benchmark Returns

Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
CS Leveraged Loan IX TR 2.64 1.33 -1.11 2.22 3.49 4.01
Barclays US Aggregate TR 0.92 3.03 1.96 2.50 3.78 4.90
CS Leveraged Loan IX TR 2.64 1.33 -1.11 2.22 3.49 4.01
Barclays US Aggregate TR 0.92 3.03 1.96 2.50 3.78 4.90

Source: Bloomberg LP

Source: FactSet Research Systems Inc.

An investment cannot be made directly in an index.

Expense Ratio per Prospectus

Management Fee 0.61
12b-1 Fee 0.25
Other Expenses 0.17
Interest/Dividend Exp 0.03
Total Other Expenses 0.20
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.01
Total Annual Fund Operating Expenses 1.07
Contractual Waivers/Reimbursements N/A
Net Expenses - PER PROSPECTUS 1.07
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 1.07
This information is updated per the most recent prospectus.

Historical Prices

From   to
No history records found for this date range


From   to
    Capital Gains Reinvestment
Price ($)
Ex-Date Income Short Term Long Term
03/31/2016 0.0291 N/A N/A 7.15
02/29/2016 0.0284 N/A N/A 6.93
01/31/2016 0.0302 N/A N/A 7.01
12/31/2015 0.0327 N/A N/A 7.14
11/30/2015 0.0403 N/A N/A 7.28
10/31/2015 0.0321 N/A N/A 7.39
09/30/2015 0.0308 N/A N/A 7.42
08/31/2015 0.0313 N/A N/A 7.56
07/31/2015 0.0295 N/A N/A 7.67
06/30/2015 0.0292 N/A N/A 7.71
05/31/2015 0.0287 N/A N/A 7.80
04/30/2015 0.0300 N/A N/A 7.81
03/31/2015 0.0303 N/A N/A 7.78
02/28/2015 0.0277 N/A N/A 7.78
01/31/2015 0.0307 N/A N/A 7.69
12/31/2014 0.0320 N/A N/A 7.72
11/30/2014 0.0291 N/A N/A 7.86
10/31/2014 0.0302 N/A N/A 7.86
09/30/2014 0.0294 N/A N/A 7.86
08/31/2014 0.0295 N/A N/A 7.95
07/31/2014 0.0289 N/A N/A 7.95
06/30/2014 0.0265 N/A N/A 7.99
05/31/2014 0.0264 N/A N/A 7.97
04/30/2014 0.0262 N/A N/A 7.96
03/31/2014 0.0281 N/A N/A 7.98
02/28/2014 0.0251 N/A N/A 7.98
01/31/2014 0.0290 N/A N/A 8.01
12/31/2013 0.0264 N/A N/A 7.99
11/30/2013 0.0254 N/A N/A 7.97
10/31/2013 0.0267 N/A N/A 7.96
09/30/2013 0.0279 N/A N/A 7.92
08/31/2013 0.0270 N/A N/A 7.94
07/31/2013 0.0259 N/A N/A 7.97
06/30/2013 0.0259 N/A N/A 7.91
05/31/2013 0.0289 N/A N/A 8.00
04/30/2013 0.0288 N/A N/A 8.01
03/31/2013 0.0324 N/A N/A 7.98
02/28/2013 0.0288 N/A N/A 7.94
01/31/2013 0.0317 N/A N/A 7.94
12/31/2012 0.0334 N/A N/A 7.87
11/30/2012 0.0327 N/A N/A 7.85
10/31/2012 0.0346 N/A N/A 7.84
09/30/2012 0.0326 N/A N/A 7.82
08/31/2012 0.0327 N/A N/A 7.77
07/31/2012 0.0321 N/A N/A 7.72
06/30/2012 0.0319 N/A N/A 7.67
05/31/2012 0.0322 N/A N/A 7.639
04/30/2012 0.0308 N/A N/A 7.726
03/31/2012 0.0318 N/A N/A 7.696
02/29/2012 0.0295 N/A N/A 7.674
01/31/2012 0.0306 N/A N/A 7.648
12/31/2011 0.0297 N/A N/A 7.512
11/30/2011 0.0276 N/A N/A 7.484
10/31/2011 0.0289 N/A N/A 7.547
09/30/2011 0.0284 N/A N/A 7.356
08/31/2011 0.0309 N/A N/A 7.356
07/31/2011 0.0299 N/A N/A 7.742
06/30/2011 0.0290 N/A N/A 7.758
05/31/2011 0.0304 N/A N/A 7.821
04/30/2011 0.0297 N/A N/A 7.851
03/31/2011 0.0311 N/A N/A 7.832
02/28/2011 0.0261 N/A N/A 7.858
01/31/2011 0.0281 N/A N/A 7.852
12/31/2010 0.0281 N/A N/A 7.74
11/30/2010 0.0274 N/A N/A 7.658
10/31/2010 0.0288 N/A N/A 7.657
09/30/2010 0.0292 N/A N/A 7.554
08/31/2010 0.0333 N/A N/A 7.474
07/31/2010 0.0332 N/A N/A 7.472
06/30/2010 0.0306 N/A N/A 7.367
05/31/2010 0.0308 N/A N/A 7.451
04/30/2010 0.0277 N/A N/A 7.675
03/31/2010 0.0311 N/A N/A 7.623
02/28/2010 0.0299 N/A N/A 7.477
01/31/2010 0.0367 N/A N/A 7.486
12/31/2009 0.0398 N/A N/A 7.343
11/30/2009 0.0400 N/A N/A 7.176
10/31/2009 0.0388 N/A N/A 7.196
09/30/2009 0.0337 N/A N/A 7.25
08/31/2009 0.0330 N/A N/A 7.087
07/31/2009 0.0324 N/A N/A 6.966
06/30/2009 0.0305 N/A N/A 6.748
05/31/2009 0.0291 N/A N/A 6.485
04/30/2009 0.0333 N/A N/A 6.172
03/31/2009 0.0336 N/A N/A 5.74
02/28/2009 0.0279 N/A N/A 5.70
01/31/2009 0.0350 N/A N/A 5.692
12/31/2008 0.0429 N/A N/A 5.30
11/30/2008 0.0442 N/A N/A 5.703
10/31/2008 0.0467 N/A N/A 6.277
09/30/2008 0.0363 N/A N/A 7.449
08/31/2008 0.0368 N/A N/A 7.989
07/31/2008 0.0339 N/A N/A 8.04
06/30/2008 0.0338 N/A N/A 8.163
05/31/2008 0.0368 N/A N/A 8.167
04/30/2008 0.0368 N/A N/A 8.064
03/31/2008 0.0452 N/A N/A 7.821
02/29/2008 0.0433 N/A N/A 7.874
01/31/2008 0.0512 N/A N/A 8.193
12/31/2007 0.0520 N/A N/A 8.567
11/30/2007 0.0495 N/A N/A 8.602
10/31/2007 0.0543 N/A N/A 8.779
09/30/2007 0.0535 N/A N/A 8.755
08/31/2007 0.0524 N/A N/A 8.665
07/31/2007 0.0496 N/A N/A 8.696
06/30/2007 0.0485 N/A N/A 9.076
05/31/2007 0.0526 N/A N/A 9.115
04/30/2007 0.0494 N/A N/A 9.113
03/31/2007 0.0497 N/A N/A 9.109
02/28/2007 0.0454 N/A N/A 9.127
01/31/2007 0.0523 N/A N/A 9.105
12/31/2006 0.0530 N/A N/A 9.087
11/30/2006 0.0499 N/A N/A 9.083
10/31/2006 0.0507 N/A N/A 9.067
09/30/2006 0.0483 N/A N/A 9.052
08/31/2006 0.0510 N/A N/A 9.061
07/31/2006 0.0512 N/A N/A 9.058
06/30/2006 0.0467 N/A N/A 9.063
05/31/2006 0.0468 N/A N/A 9.096
04/30/2006 0.0452 N/A N/A 9.11
03/31/2006 0.0441 N/A N/A 9.105
02/28/2006 0.0380 N/A N/A 9.075
01/31/2006 0.0420 N/A N/A 9.05
12/31/2005 0.0415 N/A N/A 9.041
11/30/2005 0.0389 N/A N/A 9.034
10/31/2005 0.0392 N/A N/A 9.037
09/30/2005 0.0355 N/A N/A 9.054
08/31/2005 0.0350 N/A N/A 9.057
07/31/2005 0.0369 N/A N/A 9.026
06/30/2005 0.0350 N/A N/A 9.00
05/31/2005 0.0351 N/A N/A 8.977
04/30/2005 0.0329 N/A N/A 9.03
03/31/2005 0.0325 N/A N/A 9.059
02/28/2005 0.0282 N/A N/A 9.071
01/31/2005 0.0308 N/A N/A 9.026
12/31/2004 0.0300 N/A N/A 9.019
11/30/2004 0.0270 N/A N/A 9.018
10/31/2004 0.0272 N/A N/A 8.993
09/30/2004 0.0264 N/A N/A 8.975
08/31/2004 0.0255 N/A N/A 8.89
07/31/2004 0.0213 N/A N/A 8.895
06/30/2004 0.0174 N/A N/A 8.875
05/31/2004 0.0222 N/A N/A 8.85
04/30/2004 0.0232 N/A N/A 8.863
03/31/2004 0.0253 N/A N/A 8.831
02/29/2004 0.0254 N/A N/A 8.839
01/31/2004 0.0286 N/A N/A 8.818
12/31/2003 0.0240 N/A N/A 8.772
11/30/2003 0.0255 N/A N/A 8.77
10/31/2003 0.0261 N/A N/A 8.74
09/30/2003 0.0247 N/A N/A 8.735
08/31/2003 0.0266 N/A N/A 8.697
07/31/2003 0.0314 N/A N/A 8.716
06/30/2003 0.0301 N/A N/A 8.70
05/31/2003 0.0235 N/A N/A 8.654
04/30/2003 0.0209 N/A N/A 8.594
03/31/2003 0.0305 N/A N/A 8.509
02/28/2003 0.0258 N/A N/A 8.542
01/31/2003 0.0314 N/A N/A 8.543
12/31/2002 0.0316 N/A N/A 8.50
11/30/2002 0.0285 N/A N/A 8.455
10/31/2002 0.0322 N/A N/A 8.476
09/30/2002 0.0320 N/A N/A 8.59
08/31/2002 0.0329 N/A N/A 8.606
07/31/2002 0.0326 N/A N/A 8.678
06/30/2002 0.0325 N/A N/A 8.779
05/31/2002 0.0345 N/A N/A 8.788
04/30/2002 0.0314 N/A N/A 8.788
03/31/2002 0.0313 N/A N/A 8.746
02/28/2002 0.0272 N/A N/A 8.677
01/31/2002 0.0303 N/A N/A 8.693
12/31/2001 0.0343 N/A N/A 8.645
11/30/2001 0.0368 N/A N/A 8.682
10/31/2001 0.0409 N/A N/A 8.74
09/30/2001 0.0449 N/A N/A 8.919
08/31/2001 0.0482 N/A N/A 9.002
07/31/2001 0.0489 N/A N/A 9.034
06/30/2001 0.0485 N/A N/A 9.089
05/31/2001 0.0526 N/A N/A 9.108
04/30/2001 0.0563 N/A N/A 9.17
03/31/2001 0.0614 N/A N/A 9.261
02/28/2001 0.0578 N/A N/A 9.349
01/31/2001 0.0706 N/A N/A 9.32
12/31/2000 0.0713 N/A N/A 9.369
11/30/2000 0.0650 N/A N/A 9.407
10/31/2000 0.0665 N/A N/A 9.446
09/30/2000 0.0653 N/A N/A 9.496
08/31/2000 0.0677 N/A N/A 9.536
07/31/2000 0.0701 N/A N/A 9.548
06/30/2000 0.0657 N/A N/A 9.58
05/31/2000 0.0682 N/A N/A 9.581
04/30/2000 0.0606 N/A N/A 9.607
03/31/2000 0.0615 N/A N/A 9.626
02/29/2000 0.0583 N/A N/A 9.667
01/31/2000 0.0616 N/A N/A 9.676
12/31/1999 0.0659 N/A N/A 9.68
12/17/1999 N/A N/A 0.0005 9.687
11/30/1999 0.0571 N/A N/A 9.701
10/31/1999 0.0587 N/A N/A 9.726
09/30/1999 0.0577 N/A N/A 9.746
08/31/1999 0.0608 N/A N/A 9.775
07/31/1999 0.0605 N/A N/A 9.816
06/30/1999 0.0546 N/A N/A 9.817
05/31/1999 0.0577 N/A N/A 9.819
04/30/1999 0.0544 N/A N/A 9.821
03/31/1999 0.0542 N/A N/A 9.83
02/28/1999 0.0488 N/A N/A 9.83
01/31/1999 0.0548 N/A N/A 9.85
12/31/1998 0.0545 N/A N/A 9.84
11/30/1998 0.0534 N/A N/A 9.82
10/31/1998 0.0574 N/A N/A 9.85
09/30/1998 0.0567 N/A N/A 9.89
08/31/1998 0.0605 N/A N/A 10.00
07/31/1998 0.0631 N/A N/A 10.00
06/30/1998 0.0567 N/A N/A 10.00
05/31/1998 0.0574 0.0000 0.0000 10.00
04/30/1998 0.0563 N/A N/A 10.01
03/31/1998 0.0592 N/A N/A 10.01
02/28/1998 0.0541 N/A N/A 10.02
01/31/1998 0.0630 0.0000 0.0000 10.02
12/31/1997 0.0620 0.0000 0.0000 10.02
11/30/1997 0.0592 0.0000 0.0000 10.02
10/31/1997 0.0620 0.0000 0.0000 10.02
09/30/1997 0.0607 0.0000 0.0000 10.01
08/31/1997 0.0637 0.0000 0.0000 10.01
07/31/1997 0.0640 N/A N/A 10.00
06/30/1997 0.0609 N/A N/A 10.00
05/31/1997 0.0636 N/A N/A 10.00
as of 03/31/2016

Fund Characteristics

3-Year Alpha -1.97%
3-Year Beta 1.29
3-Year R-Squared 0.97
3-Year Sharpe Ratio 0.23
3-Year Standard Deviation 3.36
Number of Securities 610
Total Assets $1,802,482,214.00

Source: FactSet Research Systems Inc., StyleADVISOR

Benchmark:  CS Leveraged Loan IX TR

as of 03/31/2016

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
Asurion LLC 2.43
Level 3 Financing Inc. 2.16
Calpine Corporation 1.96
Texas Competitive Electric Holdings Company, LLC 1.88
Avago Technologies Cayman Ltd. 1.85
iHeartCommunications, Inc. 1.78
First Data Corporation 1.68
Delta 2 (LUX) S.a.r.l. 1.47
Federal-Mogul Holdings Corporation 1.45
Sears Roebuck Acceptance Corp. 1.32

Holdings are subject to change and are not buy/sell recommendations.

as of 03/31/2016

Top Industries

  % of Total Assets
Information Technology 8.64
Telecommunications 8.51
Service 7.34
Health Care 6.83
Retail 6.17
Utilities 5.86
Gaming/Leisure 4.94
Manufacturing 4.35
Diversified Media 4.22
Energy 3.91

The holdings are organized to mirror the Credit Suisse High Yield Bond Index industry classifications. These classifications are the exclusive property and service mark of Credit Suisse AG.

 About risk

Bank Loan Risk. There are a number of risks associated with an investment in bank loans including credit risk, interest rate risk, liquidity risk and prepayment risk. Lack of an active trading market, restrictions on resale, irregular trading activity, wide bid/ask spreads and extended trade settlement periods may impair the Fund's ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding bank loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. These risks could cause the Fund to lose income or principal on a particular investment, which in turn could affect the Fund's returns. The value of bank loans can be affected by and sensitive to changes in government regulation and to economic downturns in the United States and abroad. Bank loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts periodically based on changes in widely accepted reference rates.

Borrowing Risk. Borrowing money to buy securities exposes the Fund to leverage and will cause the Fund's share price to be more volatile because leverage will exaggerate the effect of any increase or decrease in the value of the Fund's portfolio securities. Borrowing money may also require the Fund to liquidate positions when it may not be advantageous to do so. In addition, the Fund will incur interest expenses and other fees on borrowed money. There can be no assurance that the Fund's borrowing strategy will enhance and not reduce the Fund's returns.

Changing Fixed Income Market Conditions Risk. The current historically low interest rate environment was created in part by the Federal Reserve Board (FRB) and certain foreign central banks keeping the federal funds and equivalent foreign rates at or near zero. There is a risk that interest rates will rise when the FRB and central banks raise these rates. This risk is heightened due to the completion of the FRB's quantitative easing program and the "tapering" of other similar foreign central bank actions. This eventual increase in the federal funds and equivalent foreign rates may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund's investments and share price may decline. Changes in central bank policies could also result in higher than normal shareholder redemptions, which could potentially increase portfolio turnover and the Fund's transaction costs.

Collateralized Loan Obligations Risk. CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if the Fund invests in CLOs that hold loans of uncreditworthy borrowers or if the Fund holds subordinate tranches of the CLO that absorbs losses from the defaults before senior tranches. In addition, CLOs are subject to interest rate risk and credit risk.

Credit Linked Notes Risk. Risks of credit linked notes include those risks associated with the underlying reference obligation including but not limited to market risk, interest rate risk, credit risk, default risk and, in some cases, foreign currency risk. An investor in a credit linked note bears counterparty risk or the risk that the issuer of the credit linked note will default or become bankrupt and not make timely payment of principal and interest of the structured security. Credit linked notes may be less liquid than other investments and therefore harder to dispose of at the desired time and price. In addition, credit linked notes may be leveraged and, as a result, small changes in the value of the underlying reference obligation may produce disproportionate losses to the Fund.

Debt Securities Risk. The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund's distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes in an issuer's financial strength, the market's perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser's credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.

Defaulted Securities Risk. Defaulted securities pose a greater risk that principal will not be repaid than non-defaulted securities. Defaulted securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

Derivatives Risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by owning the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative, which may make the Fund's returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund's ability to use certain derivatives or their cost. Also, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.

Financial Services Sector Risk. The Fund may be susceptible to adverse economic or regulatory occurrences affecting the financial services sector. Financial services companies are subject to extensive government regulation and are disproportionately affected by unstable interest rates, each of which could adversely affect the profitability of such companies. Financial services companies may also have concentrated portfolios, which makes them especially vulnerable to unstable economic conditions.

Foreign Securities Risk. The Fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.

High Yield Debt Securities (Junk Bond) Risk. Investments in high yield debt securities ("junk bonds") and other lower-rated securities will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer's ability to pay interest and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities tend to be very volatile.

Liquidity Risk. The Fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund's securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.

Management Risk. The Fund is actively managed and depends heavily on the Adviser's judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund's portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective.

Market Risk. The market values of the Fund's investments, and therefore the value of the Fund's shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.

as of 04/28/2016


NAV Change ($)
$7.29 0.01
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 04/28/2016


  • Distribution Yield
    with Sales Charge 4.66%
  • Distribution Yield
    without Sales Charge 4.79%
  • SEC 30-Day Yield 4.5%
  • Unsub. 30-Day Yield N/A

Fund Details

  • Distribution Frequency Monthly
  • WSJ Abrev. N/A
  • CUSIP 00141A867
  • Fund Type Fixed Income
  • Geography Type Domestic
  • Inception Date 05/01/1997
  • Fiscal Year End 08/31
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1595
  • Tax ID 94-3259182