Mutual Funds

Invesco Senior Loan Fund

Alternatives | Bank Loans

Objective & Strategy

The fund seeks to provide a high level of current income, consistent with preservation of capital by investing at least 80% of its net assets in adjustable-rate senior loans.

as of 02/28/2014

Morningstar Rating

Overall Rating - Bank Loan Category

As of 02/28/2014 the Fund had an overall rating of 5 stars out of 146 funds and was rated 4 stars out of 146 funds, 5 stars out of 123 funds and N/A stars out of 44 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. ©2014 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 06/30/2016

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
Texas Competitive Electric Holdings Company LLC 2.52
Asurion LLC 1.96
Avago Technologies Cayman Finance Ltd. 1.71
Twin River Management Group, Inc. 1.56
First Data Corporation 1.53
iHeartCommunications, Inc. 1.52
Transdigm Inc. 1.47
Dell International LLC 1.45
Federal-Mogul Holdings Corporation 1.42
Sears Roebuck Acceptance Corp. 1.40

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

as of 06/30/2016 06/30/2016

Average Annual Returns (%)

Load (%)
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 02/18/2005 N/A 2.86 5.97 -0.77 2.40 4.50 2.65
Load 02/18/2005 3.25 2.55 2.59 -3.93 1.28 3.83 2.32
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.

Performance figures reflect reinvested distributions and changes in net asset value (NAV) and the effect of the maximum sales charge unless otherwise stated.

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

as of 06/30/2016 06/30/2016

Annualized Benchmark Returns

Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
CS Leveraged Loan IX TR 0.03 2.86 0.93 3.04 4.00 4.17
CS Leveraged Loan IX TR 0.03 2.86 0.93 3.04 4.00 4.17
CS Leveraged Loan IX TR 0.03 2.86 0.93 3.04 4.00 4.17
CS Leveraged Loan IX TR 0.03 2.86 0.93 3.04 4.00 4.17

Source: Bloomberg LP

Source: Bloomberg LP

An investment cannot be made directly in an index.

Expense Ratio per Prospectus

Management Fee 0.88
12b-1 Fee 0.25
Other Expenses 0.55
Interest/Dividend Exp 0.30
Total Other Expenses 0.85
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.00
Total Annual Fund Operating Expenses 1.98
Contractual Waivers/Reimbursements N/A
Net Expenses - PER PROSPECTUS 1.98
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 1.98
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
06/30/2016 0.0272 N/A N/A 6.24
05/31/2016 0.0272 N/A N/A 6.21
04/29/2016 0.0308 N/A N/A 6.18
03/31/2016 0.0330 N/A N/A 6.02
02/29/2016 0.0329 N/A N/A 5.81
01/29/2016 0.0328 N/A N/A 5.91
12/31/2015 0.0328 N/A N/A 6.07
11/30/2015 0.0328 N/A N/A 6.22
10/30/2015 0.0309 N/A N/A 6.35
09/30/2015 0.0309 N/A N/A 6.38
08/31/2015 0.0309 N/A N/A 6.52
07/31/2015 0.0308 N/A N/A 6.65
06/30/2015 0.0308 N/A N/A 6.69
05/29/2015 0.0308 N/A N/A 6.78
04/30/2015 0.0308 N/A N/A 6.78
03/31/2015 0.0309 N/A N/A 6.75
02/27/2015 0.0309 N/A N/A 6.76
01/30/2015 0.0308 N/A N/A 6.68
12/31/2014 0.0308 N/A N/A 6.74
11/28/2014 0.0308 N/A N/A 6.88
10/31/2014 0.0281 N/A N/A 6.89
09/30/2014 0.0281 N/A N/A 6.91
08/29/2014 0.0281 N/A N/A 7.02
07/31/2014 0.0281 N/A N/A 7.01
06/30/2014 0.0281 N/A N/A 7.04
05/30/2014 0.0281 N/A N/A 7.01
04/30/2014 0.0281 N/A N/A 7.00
03/31/2014 0.0281 N/A N/A 7.01
02/28/2014 0.0281 N/A N/A 6.99
01/31/2014 0.0281 N/A N/A 7.00
12/31/2013 0.0282 N/A N/A 6.97
11/29/2013 0.0361 N/A N/A 6.95
10/31/2013 0.0360 N/A N/A 6.94
09/30/2013 0.0360 N/A N/A 6.91
08/30/2013 0.0360 N/A N/A 6.93
07/31/2013 0.0360 N/A N/A 6.96
06/28/2013 0.0360 N/A N/A 6.89
05/31/2013 0.0360 N/A N/A 6.98
04/30/2013 0.0361 N/A N/A 7.00
03/28/2013 0.0361 N/A N/A 6.94
02/28/2013 0.0361 N/A N/A 6.89
01/31/2013 0.0374 N/A N/A 6.89
12/31/2012 0.0733 N/A N/A 6.82
11/30/2012 0.0374 N/A N/A 6.82
10/31/2012 0.0315 N/A N/A 6.79
09/28/2012 0.0315 N/A N/A 6.77
08/31/2012 0.0315 N/A N/A 6.71
07/31/2012 0.0300 N/A N/A 6.66
06/29/2012 0.0300 N/A N/A 6.59
05/31/2012 0.0300 N/A N/A 6.56
04/30/2012 0.0300 N/A N/A 6.65
03/30/2012 0.0300 N/A N/A 6.60
02/29/2012 0.0275 N/A N/A 6.58
01/31/2012 0.0275 N/A N/A 6.54
12/30/2011 0.0275 N/A N/A 6.38
11/30/2011 0.0275 N/A N/A 6.35
10/31/2011 0.0275 N/A N/A 6.40
09/30/2011 0.0275 N/A N/A 6.23
08/31/2011 0.0275 N/A N/A 6.26
07/29/2011 0.0275 N/A N/A 6.66
06/30/2011 0.0275 N/A N/A 6.68
05/31/2011 0.0275 N/A N/A 6.73
04/29/2011 0.0275 N/A N/A 6.76
03/31/2011 0.0250 N/A N/A 6.72
02/28/2011 0.0250 N/A N/A 6.73
01/31/2011 0.0250 N/A N/A 6.69
12/31/2010 0.0250 N/A N/A 6.54
11/30/2010 0.0250 N/A N/A 6.48
10/29/2010 0.0250 N/A N/A 6.45
09/30/2010 0.0269 N/A N/A 6.36
08/31/2010 0.0269 N/A N/A 6.29
07/30/2010 0.0295 N/A N/A 6.29
06/30/2010 0.0333 N/A N/A 6.23
05/27/2010 0.0257 N/A N/A 6.30
04/30/2010 0.0295 N/A N/A 6.49
03/31/2010 0.0295 N/A N/A 6.40
02/26/2010 0.0295 N/A N/A 6.25
01/29/2010 0.0295 N/A N/A 6.26
12/31/2009 0.0067 N/A N/A 6.16
12/24/2009 0.0295 N/A N/A 6.14
11/25/2009 0.0270 N/A N/A 6.02
10/23/2009 0.0282 N/A N/A 6.02
09/25/2009 0.0270 N/A N/A 5.94
08/25/2009 0.0270 N/A N/A 5.70
07/24/2009 0.0270 N/A N/A 5.48
06/25/2009 0.0270 N/A N/A 5.30
05/22/2009 0.0270 N/A N/A 4.98
04/24/2009 0.0270 N/A N/A 4.61
03/25/2009 0.0270 N/A N/A 4.25
02/25/2009 0.0307 N/A N/A 4.35
01/23/2009 0.0337 N/A N/A 4.23
12/31/2008 0.0102 N/A N/A 4.09
12/24/2008 0.0439 N/A N/A 4.10
11/25/2008 0.0439 N/A N/A 4.61
10/24/2008 0.0416 N/A N/A 5.43
09/25/2008 0.0392 N/A N/A 6.97
08/25/2008 0.0392 N/A N/A 7.39
07/25/2008 0.0392 N/A N/A 7.48
06/25/2008 0.0392 N/A N/A 7.66
05/23/2008 0.0392 N/A N/A 7.59
04/25/2008 0.0549 N/A N/A 7.56
03/25/2008 0.0549 N/A N/A 7.35
02/25/2008 0.0549 N/A N/A 7.50
01/25/2008 0.0429 N/A N/A 8.05
12/31/2007 0.0120 N/A N/A 8.37
12/24/2007 0.0549 N/A N/A 8.38
11/23/2007 0.0549 N/A N/A 8.46
10/25/2007 0.0549 N/A N/A 8.66
09/25/2007 0.0549 N/A N/A 8.62
08/24/2007 0.0549 N/A N/A 8.58
07/25/2007 0.0564 N/A N/A 8.86
06/25/2007 0.0564 N/A N/A 9.06
05/25/2007 0.0575 N/A N/A 9.08
04/25/2007 0.0575 N/A N/A 9.07
03/23/2007 0.0605 N/A N/A 9.08
02/23/2007 0.0605 N/A N/A 9.10
01/25/2007 0.0445 N/A N/A 9.03
12/29/2006 0.0160 N/A N/A 9.01
12/22/2006 0.0605 N/A N/A 9.01
11/24/2006 0.0605 N/A N/A 9.01
10/25/2006 0.0590 N/A N/A 9.01
09/25/2006 0.0590 N/A N/A 9.02
08/25/2006 0.0520 N/A N/A 9.02
07/25/2006 0.0497 N/A N/A 9.00
06/23/2006 0.0497 N/A N/A 9.01
05/25/2006 0.0474 N/A N/A 9.05
04/25/2006 0.0450 N/A N/A 9.06
03/24/2006 0.0450 N/A N/A 9.07
02/24/2006 0.0415 N/A N/A 9.07
01/25/2006 0.0300 N/A N/A 9.03
12/30/2005 0.0096 N/A N/A 9.03
12/23/2005 0.0396 N/A N/A 9.04
11/25/2005 0.0370 N/A N/A 9.05
10/25/2005 0.0362 N/A N/A 9.06
09/23/2005 0.0362 N/A N/A 9.08
08/25/2005 0.0349 N/A N/A 9.08
07/25/2005 0.0334 N/A N/A 9.11
06/24/2005 0.0334 N/A N/A 9.10
05/25/2005 0.0315 N/A N/A 9.08
04/25/2005 0.0296 N/A N/A 9.15
03/24/2005 0.0296 N/A N/A 9.13
02/25/2005 0.0038 N/A N/A 9.13
as of 06/30/2016

Quality Breakdown

Ratings are based on S&P, Moody's or Fitch, as applicable. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. NR indicates the debtor was not rated, and should not be interpreted as indicating low quality. If securities are rated differently by the rating agencies, the higher rating is applied. Credit ratings are based largely on the rating agency's investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. For more information on the rating methodology, please visit the following NRSRO websites: and select 'Understanding Ratings' under Rating Resources on the homepage; and select 'Rating Methodologies' under Research and Ratings on the homepage; and select 'Ratings Definitions' on the homepage.

as of 06/30/2016

Fund Characteristics

3-Year Alpha -2.32%
3-Year Beta 1.60
3-Year R-Squared 0.93
3-Year Sharpe Ratio 0.52
3-Year Standard Deviation 4.49
Number of Securities 577
Total Assets $827,250,992.00

Source: Bloomberg LP, StyleADVISOR

Benchmark:  CS Leveraged Loan IX TR

as of 06/30/2016

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
Texas Competitive Electric Holdings Company LLC 2.52
Asurion LLC 1.96
Avago Technologies Cayman Finance Ltd. 1.71
Twin River Management Group, Inc. 1.56
First Data Corporation 1.53
iHeartCommunications, Inc. 1.52
Transdigm Inc. 1.47
Dell International LLC 1.45
Federal-Mogul Holdings Corporation 1.42
Sears Roebuck Acceptance Corp. 1.40

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

as of 06/30/2016

Top Industries

  % of Total Assets
Information Technology 11.81
Telecommunications 7.20
Services 6.52
Retail 6.13
Utility 5.99
Healthcare 5.67
Gaming/Leisure 5.21
Energy 4.84
Food/Tobacco 4.57
Aerospace 3.96

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.

Materials & Resources

 About risk

Borrower Credit Risk. Senior Loans, like most other debt obligations, are subject to the risk of default. Default in the payment of interest or principal on a Senior Loan will result in a reduction in income to the Fund, a reduction in the value of the Senior Loan and a potential decrease in the Fund's net asset value. The risk of default will increase in the event of an economic downturn or a substantial increase in interest rates.

The Fund may acquire Senior Loans of Borrowers that are experiencing, or are more likely to experience, financial difficulty, including Senior Loans issued in highly leveraged transactions. The Fund may even acquire and retain in its portfolio Senior Loans of Borrowers that have filed for bankruptcy protection. Because of the protective terms of Senior Loans, the Adviser believes that the Fund is more likely to recover more of its investment in a defaulted Senior Loan than would be the case for most other types of defaulted debt securities. Nevertheless, even in the case of collateralized Senior Loans, there is no assurance that sale of the collateral would raise enough cash to satisfy the Borrower's payment obligation or that the collateral can or will be liquidated. In the case of bankruptcy, liquidation may not occur and the court may not give Lenders the full benefit of their senior position. Uncollateralized Senior Loans involve a greater risk of loss.

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 "tapering" of the FRB's quantitative easing program and other similar foreign central bank actions. This tapering and 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. In addition to the normal interest rate, default and other risks of fixed income securities, collateralized loan obligations carry additional risks, including the possibility that distributions from collateral securitieswill not be adequate tomake interest or other payments, the quality of the collateral may decline in value or default, the Fund may invest in classes of collateralized loan obligations that are subordinate to other classes, values may be volatile, and disputes with the issuer may produce unexpected investment results.

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 foreign currency risk. In the case of a credit linked note created with credit default swaps, the structure will be "funded" such that the par amount of the security will represent the maximum loss that could be incurred on the investment and no leverage is introduced. 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.

Defaulted Securities Risk. Defaulted securities involve the substantial risk that principal will not be repaid. 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 leverage. There are risks associated with borrowing or issuing preferred shares in an effort to increase the yield and distributions on the Common Shares, including that the costs of the financial leverage exceed the income from investments made with such leverage, the higher volatility of the net asset value of the Common Shares, and that fluctuations in the interest rates on the borrowing or dividend rates on preferred shares may affect the yield and distributions to the Common Shareholders. The Fund's use of leverage also may impair the ability of the Fund to maintain its qualification for federal income taxes as a regulated investment company.

As long as the Fund is able to invest the proceeds of any financial leverage in senior loans or other investments that provide a higher net return than the then cost of such financial leverage (i.e., the current interest rate on any borrowing or dividend rate of any preferred shares after taking into account the expenses of any borrowing or preferred shares offering) and the Fund's operating expenses, the effect of leverage will be to cause the Common Shareholders to realize a higher current rate of return than if the Fund were not leveraged. However, if the current costs of financial leverage were to exceed the return on such proceeds after expenses (which the Adviser believes to be an unlikely scenario), the Common Shareholders would have a lower rate of return than if the Fund had an unleveraged capital structure.

During any annual period when the Fund has a net payable on the interest due on borrowings or the dividends due on any outstanding preferred shares, the failure to pay on such amounts would preclude the Fund from paying dividends on the Common Shares. The rights of lenders to the Fund to receive interest on and repayment of principal on any borrowings will be senior to those of the holders of the Common Shares, and the terms of any such borrowings may contain provisions which limit certain activities of the Fund, including the payment of dividends to holders of Common Shares in certain circumstances, and may require the Fund to pledge assets to secure such borrowings. Further, the terms of such borrowings may, and the 1940 Act does (in certain circumstances), grant to the lenders to the Fund certain voting rights in the event of default in the payment of interest on or repayment of principal. In addition, under the 1940 Act, the Fund is not permitted to declare any cash dividend or other distribution on its Common Shares unless, at the time of such declaration and after deducting the amount of such dividend or distribution, the Fund is in compliance with the asset coverage requirements of the 1940 Act. Such prohibition on the payment of dividends or distributions might impair the ability of the Fund to maintain its qualification, for federal income tax purposes, as a regulated investment company. The Fund intends, however, to the extent possible, to repay borrowings or redeem any outstanding preferred securities from time to time if necessary, which may involve the payment by the Fund of a premium and the sale by the Fund of portfolio securities at a time when it may be disadvantageous to do so, to maintain compliance with such asset coverage requirements.

If there are preferred shares issued and outstanding, holders of the preferred shares will elect two Trustees. In addition, the terms of any preferred shares or borrowing may entitle holders of the preferred shares or lenders, as the case may be, to elect a majority of the Board of Trustees in certain other circumstances.

Foreign Securities Risk. The Fund's foreign investments may be affected by changes in a foreign country's exchange rates, political and social instability, changes in economic or taxation policies, difficulties when enforcing obligations, decreased liquidity, and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

High Yield Senior Loans Risk. High yield Senior Loans (commonly referred to as "junk" investments) are considered to be speculative with respect to the issuer's ability to pay interest and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or company developments than higher rated or investment grade Senior Loans. Prices of high yield Senior Loans tend to be very volatile. These Senior Loans are less liquid than investment grade Senior Loans and may be difficult to sell at a desirable time or price, particularly in times of negative sentiment toward high yield investments. The Fund's investments in high yield Senior Loans will therefore subject the Fund to a greater risk of loss.

Industry Focus Risk. To the extent a Fund invests in securities issued or guaranteed by companies in the banking and financial services industries, the Fund's performance will depend on the overall condition of those industries, which may be affected by the following factors: the supply of short-term financing, changes in government regulation and interest rates, and the overall economy.

Interest Rate Risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on their individual characteristics, including duration.

Investment in Non-U.S. Issuers. Investment in non-U.S. issuers involves special risks, including that non-U.S. issuers may be subject to less rigorous accounting and reporting requirements than U.S. issuers, less rigorous regulatory requirements, different legal systems and laws relating to creditors' rights, the potential inability to enforce legal judgments and the potential for political, social and economic adversity. Investments by the Fund in non-U.S. dollar denominated investments will be subject to currency risk. Currency risk is the risk that fluctuations in the exchange rates between the U.S. dollar and non-U.S. currencies may negatively affect an investment. The value of investments denominated in non-U.S. currencies may fluctuate based on changes in the value of those currencies relative to the U.S. dollar, and a decline in applicable foreign exchange rates could reduce the value of such investments held by the Fund. The Fund may use foreign currency transactions including forward foreign currency contracts to mitigate the risk of foreign currency exposure. The Fund also may hold non-U.S. dollar denominated Senior Loans or other securities received as part of a reorganization or restructuring.

Liquidity Risk. The Fund may hold illiquid securities that it may be unable to sell at the preferred time or price and could lose its entire investment in such securities. The majority of the Fund's assets are likely to be invested in loans and securities that are less liquid than those traded on national exchanges. The risks of illiquidity are particularly important when the Fund's operations require cash, and may in certain circumstances require that the Fund borrow to meet short-term cash requirements. Illiquid securities are also difficult to value. In the event the Fund voluntarily or involuntarily liquidates portfolio assets during periods of infrequent trading, it may not receive full value for those assets.

Management Risk. The investment techniques and risk analysis used by the Fund's portfolio managers may not produce the desired results.

Market Risk. The prices of and the income generated by the Fund's securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations.

No Trading Market for Shares. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle.While there is no restriction on transferring the Shares, the Fund does not intend to list the Shares for trading on any national securities exchange. There is no secondary trading market for Shares. An investment in the Shares is illiquid. There is no guarantee that you will be able to sell all of the Shares that you desire to sell in any repurchase offer by the Fund.

Prepayment Risk. An issuer's ability to prepay principal on a loan or debt security prior to maturity can limit the Fund's potential gains. Prepayments may require the Fund to replace the loan or debt security with a lower yielding security, adversely affecting the Fund's yield.

Repurchase Offer Risks. If the Fund repurchases more Shares than it is able to sell, the Fund's net assets may decline and its expense ratios may increase, and the Fund's ability to achieve its investment objective may be adversely affected. Moreover, this may force the Fund to sell assets it would not otherwise sell, and the Fund may be forced to dispose of Fund assets that may have declined in value. The Fund may borrow money to, among other things, finance repurchases of Shares. The rights of any lenders to the Fund to receive payments of interest on and repayments of principal of any borrowings will be senior to the rights of shareholders. The loan agreement for any borrowing likely will limit certain activities of the Fund, including the payment of dividends to holders of Shares in certain circumstances. Interest payments and fees incurred in connection with borrowings to finance repurchases of Shares will reduce the amount of net income available for payment to shareholders and may increase volatility of the net asset value of the Common Shares. See also the next section above on "Financial leverage" and the section of the Prospectus entitled "Repurchase of Shares."

Senior Loans. There is less readily available, reliable information about most Senior Loans than is the case for many other types of securities. In addition, there is no minimum rating or other independent evaluation of a Borrower or its securities limiting the Fund's investments, and the Adviser relies primarily on its own evaluation of Borrower credit quality rather than on any available independent sources. As a result, the Fund is particularly dependent on the analytical abilities of the Adviser.

Senior Loans generally are not listed on any national securities exchange or automated quotation system and no active trading market exists for many Senior Loans. As a result, many Senior Loans are illiquid, meaning that the Fund may not be able to sell them quickly at a fair price. The market for illiquid securities is more volatile than the market for liquid securities. The market could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Although the Adviser believes that investing in adjustable rate Senior Loans should limit fluctuations in the Fund's net asset value as a result of changes in interest rates, extraordinary and sudden changes in interest rates could nevertheless disrupt the market for Senior Loans and result in fluctuations in the Fund's net asset value. However, many Senior Loans are of a large principal amount and are held by a large number of owners. In the Adviser's opinion, this should enhance their liquidity. In addition, in recent years the number of institutional investors purchasing Senior Loans has increased. The risks of illiquidity are particularly important when the Fund's operations require cash, and may in certain circumstances require that the Fund borrow to meet short-term cash requirements. Illiquid securities are also difficult to value. See "Investment Objective and Principal Investment Strategies of the Fund."

Selling Lenders and other persons positioned between the Fund and the Borrower will likely conduct their principal business activities in the banking, finance and financial services industries. The Fund may be more at risk to any single economic, political or regulatory occurrence affecting such industries.

Warrants, equity securities and junior debt securities. Warrants, equity securities and junior debt securities have a subordinate claim on a Borrower's assets as compared with Senior Loans. As a result, the values of warrants, equity securities and junior debt securities generally are more dependent on the financial condition of the Borrower and less dependent on fluctuations in interest rates than are the values of many debt securities. The values of warrants, equity securities and junior debt securities may be more volatile than those of Senior Loans and thus may increase the volatility of the Fund's net asset value.

as of 07/27/2016


NAV Change ($)
$6.35 -0.01
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 07/27/2016


  • Distribution Yield
    with Sales Charge 4.98%
  • Distribution Yield
    without Sales Charge 5.14%
  • SEC 30-Day Yield 4.57%
  • Unsub. 30-Day Yield N/A

Fund Details

  • Distribution Frequency Monthly
  • WSJ Abrev. N/A
  • CUSIP 46131G109
  • Fund Type Alternative
  • Geography Type N/A
  • Inception Date 02/18/2005
  • Fiscal Year End 02/28
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1732
  • Tax ID 36-6911789