AGF Floating Rate Income Fund is managed by Eaton Vance Investment Managers - the largest floating-rate manager by assets in North America.
The last 20 years have undoubtedly been a bond bull market. Falling interest rates have helped investors return more in fixed income investments than in equities. However, times are changing. Interest rates won't be low forever and it's time to position your clients' portfolios to take advantage of rising rates.
Source: Eaton Vance, September 30, 2014.
Loans are senior and secured. Typically, floating-rate loans hold the most senior position in a borrower's capital structure. This is important to loan investors because loans normally provide for the highest priority of claims on a borrower's cash flows and assets in the case of a default. Loans most often achieve this seniority by being "secured" by specific assets and/or stock pledged as collateral.
Because floating-rate loans have many unique investment characteristics, they often perform differently from the traditional asset classes most common to investment portfolios. The illustration shows how floating-rate loans have historically exhibited low correlation with stocks and many fixed-income asset classes, such as government, municipal and investment-grade corporate bonds.
Source: Morningstar Direct, Credit Suisse Leveraged Loan Index, September 30, 2014.
For more on the importance of getting in front of rising rates, visit www.agf.com/rethinkrisk.
The information contained in this fund profile is designed to provide you with general information related to investment alternatives and strategies and is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you to consult with a financial advisor prior to making any investment decisions. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share and/or unit value and reinvestment of all dividends and/or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. The payment of distributions should not be confused with a fund's performance, rate of return or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund, are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base falls below zero, you will have to pay capital gains tax on the amount below zero. The performance of a Fund may have been different had events such as mergers, portfolio manager changes and investment objective changes not taken place.
The Fund provides monthly income (that floats with changing interest rates) and capital growth by investing in U.S. senior secured bank loans. This asset class provides protection against interest-rate risk and offers low correlation to typical fixed-income and equity securities.
Eaton Vance, the largest floating-rate loan manager by assets in North America, uses a bottom-up, research-driven investment approach, utilizing the expertise of 29 investment professionals to build a portfolio of senior floating-rate loans, diversified by sector, issuer and credit tier.
|DATE||$ CLOSE||PREV. $ CLOSE||$ CHANGE||YTD % CHANGE|
|AS OF FEB 27, 2017||9.92||9.91||+0.01||+0.7|
|FUND||1 MO.||3 MO.||6 MO.||YTD||1 YR.||2 YR.||3 YR.||5 YR.||10 YR.||PSD^|
|Sinclair Television Group Term Loan January 3, 2024||1.0%|
|EIG Investors Corp. Term Loan B November 9, 2019||1.0%|
|Guggenheim Partners 1L Term Loan B July 22, 2020||1.0%|
|Restaurant Brands International Inc. Term Loan December 12, 2021||1.0%|
|Ineos US Finance LLC Term Loan B May 4, 2018||1.0%|
|Valeant Pharmaceuticals International Inc. Term Loan B April 1, 2022||1.0%|
|Univision Communications Inc. 1L Term Loan C3 March 1, 2020||0.8%|
|Axalta Coating Systems Term Loan February 1, 2023||0.8%|
|Virgin Media Investment Holdings Ltd. Term Loan January 31, 2025||0.8%|
|MacDermid Inc. Term Loan June 7, 2020||0.8%|
|Cash & Cash Equivalents||5.6%|
|INVESTED MAY 31, 2012|
|CCC or Lower||6.5%|
|TTM Distribution Yield*||3.07%|
|Modified Duration (Years)||0.37|
|Average Term (Years)||4.65|
|Fund type:||Floating rate debt|
|Fund start date:||April 19, 2012|
|Performance start date:||May 1, 2012|
|Total net assets:||$274.5 million|