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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Pioneer Floating Rate Fund Inc | NYSE:PHD | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.0227 | 0.23% | 9.7527 | 9.77 | 9.73 | 9.73 | 47,866 | 01:00:00 |
Ticker Symbol: PHD |
Q | How did the Fund perform during the six-month period ended May 31, 2023? |
A | Pioneer Floating Rate Fund, Inc. returned 4.66% at net asset value (NAV) and -0.78% at market price during the six-month period ended May 31, 2023, while the Fund’s benchmark, the Morningstar Loan Syndications & Trading Association Leveraged Loan Index (the Morningstar/LSTA Index), returned 4.55%. Unlike the Fund, the Morningstar/LSTA Index does not use leverage. While the use of leverage increases investment opportunity, it also increases investment risk. |
During the same six-month period, the average return at NAV of the 69 closed end funds in Morningstar’s Bank Loan Closed End Funds category (which may or may not be leveraged), was 3.44%, and the average return at market price of the closed-end funds in the same Morningstar category was 0.03%. | |
The shares of the Fund were selling at a 13.83% discount to NAV on May 31, 2023. Comparatively, the shares of the Fund were selling at a 9.10% discount to NAV on November 30, 2022. | |
The Fund’s standardized, 30 day SEC yield was 11.16% on May 31, 2023*. | |
Q | How would you describe the environment for investing in bank loans during the six-month period? |
A | As the period opened in December 2022, with inflation showing signs of modest easing, investors began to anticipate a pivot by the US Federal Reserve (Fed) to a more dovish policy stance despite another 75 basis point fed funds rate hike in early November. However, the market soon turned its attention to the potential recessionary impact of the higher fed funds target range |
* | The 30-day SEC yield is a standardized formula that is based on the hypothetical annualized earning power (investment income only) of the Fund’s portfolio securities during the period indicated. |
implemented by the Fed, leading risk assets including leveraged loans to give-up some of the fourth quarter’s gains in December. The Fed implemented a more modest 50 basis point rate increase at its December meeting, leaving the fed funds target range at 4.25% to 4.50% at the end of 2022. | |
Entering 2023, risk assets rallied amid growing optimism that the Fed and other leading central banks were poised to stop raising interest rates. January saw Treasury yields ease off their highs on the prospect of easier monetary policy, boosting performance of bonds generally. In addition, the reopening of China’s economy as the government unwound its zero-Covid policy eased concerns about slowing global growth. Against this backdrop, areas of the market that had lagged during the 2022 sell-off, such as leveraged loans and corporate credit, outperformed. On February 1, 2023, the Fed raised its benchmark overnight lending rate by 25 basis points, to a target range of 4.50% to 4.75%. | |
In March, the failure of two U.S. banks and collapse of European giant Credit Suisse raised fears of a financial crisis, leading investors to flee leveraged loans and other credit sensitive assets. In response to the bank failures, the Fed implemented a new lending program to support bank liquidity, while the market began to anticipate Fed rate cuts over the second half of the year. The prospect of easier monetary policy and a flight to safety spurred by the banking concerns drove Treasury yields sharply lower. At its March 23 meeting the Fed went forward with another modest quarter-point increase in the fed funds target to a range of 4.75%-5.0%. The increase was largely received by financial markets as an indication that the Fed believed the financial system remained sound overall. The fed funds rate target finished the period at 5.0%-5.25% following another increase on May 3rd. | |
Loan issuance was relatively weak during the six months ended May 31, 2023, given higher interest rates and recession fears, and driven mostly by refinancings. At the same time, collateralized loan obligation issuance remained strong, supporting demand for loans. Returns for the asset class were buoyed over the period by increases in the LIBOR and SOFR reference rates (London Interbank Offer Rate and Secured Overnight Financing Rate, respectively) driven by the Fed’s rate hikes. In addition, loan |
returns benefited from credit spread tightening, although some of this was given back in the wake of the bank crisis. Outflows continued for loans during the period despite positive investment returns for the asset class. | |
Q | What factors had the biggest effects on the Fund’s performance relative to the benchmark during the six-month period? |
A | With respect to the Fund’s allocation across loan rating categories, an overweight to the single-B credit quality tier contributed to the Fund's positive benchmark-relative performance during the period. However, this impact was more than offset by an overweight to the lower-rated CCC segment, which underperformed. Security selection proved additive within the entertainment, technology hardware and specialty retail sectors. Security selection was most detrimental within the software sector, where the Fund mantains a significant underweight relative to the benchmark and which is the largest segment in the loan universe. Security selection also weighed on return within IT services and household products. Sector allocations which helped performance included underweights to media, diversified telecommunications and real estate management. On the downside, overweights to health care providers and technology hardware detracted, along with the underweight to software. |
With respect to individual positions, a loan for movie theater chain AMC outperformed due to an improved outlook for theater attendance given a number of major movie releases in the pipeline. A loan for Michael’s Stores also performed well, as results for the arts and crafts supplies retailer have rebounded with the normalization of economic activity. A loan for sustainable construction solutions company Groupe Solmax was a notable contributor as well. On the downside, sentiment with respect to GoTo (formerly LogMeIn) suffered as the company experienced a pair of data breaches and workers returned to the office. Results for kitchenware provider Instant Brands suffered from a post-COVID slump in demand and supply chain issues, leading to the structural subordination of some company assets. During the period, customer loyalty program provider Loyalty Ventures filed for bankruptcy, having failed to renegotiate its |
debt on a timely basis after incurring operational losses driven by the loss of a large customer and supply chain issues. | |
The Fund typically maintains moderate out-of-benchmark exposure to high yield corporate bonds in an effort to attain yield as well to gain access to faster settling instruments to provide flexibility in managing the fund. The high yield allocation of approximately 7% detracted from the Fund's benchmark-relative performance due to the higher interest rate sensitivity of the asset class relative to loans in a rising rate environment. The Fund’s small exposure to insurance-linked securities, issued by insurers to help spread the risk of large settlements in the wake of natural disasters. weighed modestly on Fund performance due to final settlements for storms that occurred in 2022. On the positive side, the Fund’s roughly 4% out-of-benchmark exposure to residential mortgage-backed securities aided the Fund's benchmark-relative return. | |
Q | Did the Fund have any investments in any derivative securities during the six-month period? If so, did the derivatives have any material effect on results? |
A | The Fund had some exposure to forward foreign currency exchange contracts (currency forwards) during the six-month period. We utilized the currency forwards as a hedge against the portfolio's foreign exchange exposure for a credit denominated in the Mexican peso. The currency forwards had no material effect on the Fund's performance. |
Q | How did the level of leverage in the Fund change over the six-month period ended May 31, 2023? |
A | The Fund employs leverage through a credit agreement. (See Note 9 to the Financial Statements.) |
As of May 31, 2023, 32.7% of the Fund’s total managed assets were financed by leverage (or borrowed funds), compared with 32.4% of the Fund’s total managed assets financed by leverage at the start of the six-month period on December 1, 2022. The slight change in the percentage of the Fund’s total managed assets financed by leverage during the six-month period was the result of a decrease in the value of the Fund’s net assets. |
Q | Did the Fund’s distributions to stockholders change during the six-month period? |
A | The Fund’s monthly distribution rate increased from $0.0775 per share/per month, to $0.0900 per share/per month over the six-month period, as loan payments to the Fund re-set higher with the general increase in short-term interest rates. |
Q | What is your investment outlook? |
A | The default rate on loans for the six months ended May 31, 2023 was 1.58% by loan volume, above the 10-year lows seen six months earlier but still well below the historical average of slightly under 3%. The default rate by number of issuers was 1.60%. While recovery rates for defaulted loans have been below historical norms in recent years, they improved notably over the 12-month period. |
With elevated inflation proving to be sticky and the Fed committed to bringing inflation down to its two percent long-term target, we believe the fed funds rate will stay higher for longer, contrary to market expectations, which continue to price in rate cuts in the latter part of 2023. We believe financial conditions will become more restrictive, and that the likelihood of recession has risen as banks tighten lending standards and as the Fed maintains higher rates. Consequently, we expect to remain in a relatively defensive posture as recession risk increases over the course of the year. Given the large percentage of loans in the B3 category (below investment-grade, highly speculative) we could anticipate an uptick in defaults if interest rates stay higher for longer or that the economy hits a hard landing. | |
As always during a recession, some borrowers will end up in trouble, leading to increased defaults. However, we do not expect a deep recession, such as during the Global Financial Crisis (GFC) of 2007-2008. In our view, the economy will likely be on the upswing with the default rate headed higher at first and then lower at some point in 2024. There is a reasonable probability that by the end of 2024 inflation will have fallen to the Fed’s targeted 2% area and that Treasury yields will be lower than today’s levels. |
(As a percentage of total investments)* | ||
1. | Traverse Midstream Partners LLC, Advance, 8.997% (1 Month Term SOFR + 375.0 bps), 2/16/28 | 1.69% |
2. | Team Health Holdings, Inc., Extended Term Loan, 10.403% (Term SOFR + 525 bps), 3/2/27 | 1.22 |
3. | Clear Channel Outdoor Holdings, Inc., Term B Loan, Term Loan, 8.807% (Term SOFR + 350 bps), 8/21/26 | 1.11 |
4. | Garda World Security Corp., Term B-2 Loan, Term Loan, 9.444% (Term SOFR + 425 bps), 10/30/26 | 1.11 |
5. | Verscend Holding Corp., Term B-1 Loan, Term Loan, 9.154% (LIBOR + 400 bps), 8/27/25 | 1.07 |
6. | Upstream Newco, Inc., First Lien August 2021 Incremental Term Loan, Term Loan, 9.41% (Term SOFR + 425 bps), 11/20/26 | 1.00 |
7. | Chobani LLC., 2020 New Term Loan, Term Loan, 8.768% (Term SOFR + 350 bps), 10/25/27 | 0.97 |
8. | First Brands Group LLC, First Lien 2021 Term Loan, Term Loan, 10.252% (Term SOFR + 500 bps), 3/30/27 | 0.94 |
9. | Numericable U.S. LLC, USD TLB-[14] Loan, 10.486% (Term SOFR + 550 bps), 8/15/28 | 0.93 |
10. | Carnival Corp., Initial Advance, Term Loan, 8.154% (LIBOR + 300 bps), 6/30/25 | 0.91 |
* | Excludes short-term investments and all derivative contracts except for options purchased. The Fund is actively managed, and current holdings may be different. The holdings listed should not be considered recommendations to buy or sell any securities. |
5/31/23 | 11/30/22 | |
Market Value | $ |
$ |
Discount | ( |
( |
5/31/23 | 11/30/22 | |
Net Asset Value | $ |
$ |
Net Investment Income |
Short-Term Capital Gains |
Long-Term Capital Gains | |
12/1/22 – 5/31/23 | $0.5200 | $— | $— |
5/31/23 | 11/30/22 | |
30-Day SEC Yield | 11.16% | 10.36% |
Principal Amount USD ($) |
Value | |||||
UNAFFILIATED ISSUERS — 151.3% | ||||||
Senior Secured Floating Rate Loan Interests — 125.7% of Net Assets*(a) |
||||||
Advanced Materials — 2.1% | ||||||
905,452 | Gemini HDPE LLC, 2027 Advance, 8.307% (Term SOFR + 300 bps), 12/31/27 | $ 903,997 | ||||
1,376,485 | Groupe Solmax, Inc., Initial Term Loan, 9.909% (LIBOR + 475 bps), 5/29/28 | 1,249,160 | ||||
375,000 | Momentive Performance Materials Inc., Initial Term Loan, 9.653% (Term SOFR + 450 bps), 3/29/28 | 367,500 | ||||
Total Advanced Materials | $2,520,657 | |||||
Advertising Sales — 1.6% | ||||||
2,054,244 | Clear Channel Outdoor Holdings, Inc., Term B Loan, 8.807% (Term SOFR + 350 bps), 8/21/26 | $ 1,938,109 | ||||
Total Advertising Sales | $1,938,109 | |||||
Advertising Services — 1.5% | ||||||
457,689 | CB Poly US Holdings, Inc., Initial Term Loan, 10.653% (Term SOFR + 550 bps), 5/18/29 | $ 424,315 | ||||
492,500 | Dotdash Meredith, Inc., Term Loan B, 9.119% (Term SOFR + 400 bps), 12/1/28 | 455,563 | ||||
985,000 | Summer BC Holdco B LLC, USD Additional Facility B2, 9.659% (LIBOR + 450 bps), 12/4/26 | 917,281 | ||||
Total Advertising Services | $1,797,159 | |||||
Aerospace & Defense — 2.2% | ||||||
855,000 | ADS Tactical, Inc., Initial Term Loan, 10.904% (LIBOR + 575 bps), 3/19/26 | $ 807,975 | ||||
500,000 | Spirit Aerosystems, Inc. (fka Mid-Western Aircraft Systems, Inc and Onex Wind Finance LP.), 2022 Refinancing Term Loan, 9.545% (Term SOFR + 450 bps), 1/15/27 | 500,125 | ||||
1,522,554 | WP CPP Holdings LLC, First Lien Initial Term Loan, 9.03% (LIBOR + 375 bps), 4/30/25 | 1,343,654 | ||||
Total Aerospace & Defense | $2,651,754 | |||||
Airlines — 1.9% | ||||||
500,000 | AAdvantage Loyality IP, Ltd. (American Airlines, Inc.), Initial Term Loan, 10.00% (LIBOR + 475 bps), 4/20/28 | $ 503,063 | ||||
417,284 | Castlelake Aviation One Designated Activity Company, 2023 Incremental Term Loan, 7.783% (Term SOFR + 275 bps), 10/22/27 | 409,982 |
Principal Amount USD ($) |
Value | |||||
Airlines — (continued) | ||||||
1,062,500 | Mileage Plus Holdings LLC (Mileage Plus Intellectual Property Assets, Ltd.), Initial Term Loan, 10.213% (LIBOR + 525 bps), 6/21/27 | $ 1,101,215 | ||||
306,000 | SkyMiles IP, Ltd. (Delta Air Lines, Inc.), Initial Term Loan, 8.798% (Term SOFR + 375 bps), 10/20/27 | 317,494 | ||||
Total Airlines | $2,331,754 | |||||
Apparel Manufacturers — 0.6% | ||||||
725,000 | Hanesbrands Inc., Initial Term Loan B, 8.903% (Term SOFR + 375 bps), 3/8/30 | $ 720,469 | ||||
Total Apparel Manufacturers | $720,469 | |||||
Applications Software — 1.6% | ||||||
832,913 | Central Parent Inc., First Lien Initial Term Loan, 9.148% (Term SOFR + 425 bps), 7/6/29 | $ 821,649 | ||||
547,500 | EP Purchaser LLC, First Lien Closing Date Term Loan, 8.659% (LIBOR + 350 bps), 11/6/28 | 528,337 | ||||
925,000(b) | Loyalty Ventures, Inc., Term B Loan, 9.689% (LIBOR + 450 bps), 11/3/27 | 104,063 | ||||
500,000 | RealPage, Inc., First Lien Initial Term Loan, 8.154% (LIBOR + 300 bps), 4/24/28 | 481,250 | ||||
Total Applications Software | $1,935,299 | |||||
Auction House & Art Dealer — 0.4% | ||||||
491,250 | Sotheby's, 2021 Second Refinancing Term Loan, 9.76% (LIBOR + 450 bps), 1/15/27 | $ 481,016 | ||||
Total Auction House & Art Dealer | $481,016 | |||||
Auto Parts & Equipment — 3.5% | ||||||
412,750 | Adient US LLC, Term B-1 Loan, 8.518% (Term SOFR + 325 bps), 4/10/28 | $ 412,363 | ||||
939,500(c) | Autokiniton US Holdings, Inc., Closing Date Term B Loan, 4/6/28 | 920,794 | ||||
1,697,919 | First Brands Group LLC, First Lien 2021 Term Loan, 10.252% (Term SOFR + 500 bps), 3/30/27 | 1,641,323 | ||||
1,561,135 | IXS Holdings, Inc., Initial Term Loan, 9.479% (Term SOFR + 425 bps), 3/5/27 | 1,310,377 | ||||
Total Auto Parts & Equipment | $4,284,857 | |||||
Principal Amount USD ($) |
Value | |||||
Auto-Truck Trailers — 1.0% | ||||||
343,306 | American Trailer World Corp., First Lien Initial Term Loan, 9.003% (Term SOFR + 375 bps), 3/3/28 | $ 298,301 | ||||
990,000 | Novae LLC, Tranche B Term Loan, 10.338% (Term SOFR + 500 bps), 12/22/28 | 851,400 | ||||
Total Auto-Truck Trailers | $1,149,701 | |||||
Beverages — 0.5% | ||||||
165,417 | Naked Juice LLC, First Lien Initial Term Loan, 8.248% (Term SOFR + 325 bps), 1/24/29 | $ 151,494 | ||||
498,750 | Pegasus BidCo BV, Initial Dollar Term Loan, 9.336% (Term SOFR + 425 bps), 7/12/29 | 492,516 | ||||
Total Beverages | $644,010 | |||||
Broadcast Service & Programing — 0.6% | ||||||
742,500 | Univision Communications, Inc., First Lien Initial Term Loan, 8.404% (LIBOR + 325 bps), 1/31/29 | $ 708,159 | ||||
Total Broadcast Service & Programing | $708,159 | |||||
Building & Construction — 1.2% | ||||||
500,000 | DG Investment Intermediate Holdings 2, Inc., Second Lien Initial Term Loan, 12.018% (Term SOFR + 675 bps), 3/30/29 | $ 442,500 | ||||
981,448 | Service Logic Acquisition, Inc., First Lien Closing Date Initial Term Loan, 9.273% (LIBOR + 400 bps), 10/29/27 | 952,005 | ||||
Total Building & Construction | $1,394,505 | |||||
Building & Construction Products — 2.5% | ||||||
1,451,345 | Cornerstone Building Brands, Inc., Tranche B Term Loan, 8.409% (Term SOFR + 325 bps), 4/12/28 | $ 1,324,805 | ||||
564,459 | CP Atlas Buyer, Inc., Term B Loan, 9.003% (Term SOFR + 375 bps), 11/23/27 | 510,643 | ||||
448,858(c) | Jeld-Wen, Inc., Replacement Term Loan, 7/28/28 | 447,525 | ||||
990,000 | LHS Borrower LLC, Initial Term Loan, 10.003% (Term SOFR + 475 bps), 2/16/29 | 772,200 | ||||
Total Building & Construction Products | $3,055,173 | |||||
Building Production — 1.7% | ||||||
493,750 | Chariot Buyer LLC., First Lien Initial Term Loan, 8.503% (Term SOFR + 325 bps), 11/3/28 | $ 469,474 |
Principal Amount USD ($) |
Value | |||||
Building Production — (continued) | ||||||
750,000 | Koppers Inc., Initial Term Loan, 8.91% (Term SOFR + 400 bps), 4/10/30 | $ 748,125 | ||||
839,375 | Vector WP MidCo, Inc. (Vector Canada Acquisition ULC), Initial Term B Loan, 10.188% (LIBOR + 500 bps), 10/12/28 | 828,883 | ||||
Total Building Production | $2,046,482 | |||||
Building-Air & Heating — 0.3% | ||||||
333,945(c) | Emerald Borrower LP, Initial Term Loan B, 5/31/30 | $ 330,553 | ||||
Total Building-Air & Heating | $330,553 | |||||
Building-Heavy Construction — 0.6% | ||||||
744,332 | Osmose Utilities Services, Inc., First Lien Initial Term Loan, 8.154% (LIBOR + 300 bps), 6/23/28 | $ 710,217 | ||||
Total Building-Heavy Construction | $710,217 | |||||
Building-Maintenance & Service — 0.6% | ||||||
738,750 | ArchKey Holdings, Inc., First Lien Initial Term Loan, 10.404% (LIBOR + 525 bps), 6/29/28 | $ 726,745 | ||||
Total Building-Maintenance & Service | $726,745 | |||||
Cable & Satellite Television — 2.9% | ||||||
519,000 | DIRECTV Financing LLC, Closing Date Term Loan, 10.154% (LIBOR + 500 bps), 8/2/27 | $ 493,915 | ||||
1,931,801 | Numericable U.S. LLC, USD TLB-[14] Loan, 10.486% (Term SOFR + 550 bps), 8/15/28 | 1,620,298 | ||||
1,036,999 | Radiate Holdco LLC, Amendment No. 6 Term Loan, 8.404% (LIBOR + 325 bps), 9/25/26 | 864,454 | ||||
500,000 | Virgin Media Bristol LLC, Facility Q, 8.357% (LIBOR + 325 bps), 1/31/29 | 486,250 | ||||
Total Cable & Satellite Television | $3,464,917 | |||||
Casino Hotels — 0.4% | ||||||
495,000 | Century Casinos, Inc., Term B Facility Loan, 11.093% (Term SOFR + 600 bps), 4/2/29 | $ 475,200 | ||||
Total Casino Hotels | $475,200 | |||||
Casino Services — 0.6% | ||||||
535,799 | Everi Holdings, Inc., Term B Loan, 7.654% (LIBOR + 250 bps), 8/3/28 | $ 531,981 | ||||
566,159(b) | Lucky Bucks LLC, Initial Term Loan, 10.67% (LIBOR + 550 bps), 7/30/27 | 180,227 | ||||
Total Casino Services | $712,208 | |||||
Principal Amount USD ($) |
Value | |||||
Cellular Telecom — 1.8% | ||||||
543,073 | CCI Buyer, Inc., First Lien Initial Term Loan, 8.898% (Term SOFR + 400 bps), 12/17/27 | $ 517,899 | ||||
847,760 | Gogo Intermediate Holdings LLC, Initial Term Loan, 9.018% (Term SOFR + 375 bps), 4/30/28 | 840,541 | ||||
738,750 | Xplornet Communications, Inc., First Lien Refinancing Term Loan, 9.154% (LIBOR + 400 bps), 10/2/28 | 599,311 | ||||
350,000 | Xplornet Communications, Inc., Second Lien Initial Term Loan, 12.268% (Term SOFR + 700 bps), 10/1/29 | 215,250 | ||||
Total Cellular Telecom | $2,173,001 | |||||
Chemicals-Diversified — 2.6% | ||||||
1,000,000 | ARC Falcon I, Inc., Second Lien Initial Term Loan, 12.154% (LIBOR + 700 bps), 9/30/29 | $ 853,750 | ||||
441,662 | Hexion Holdings Corp., First Lien Initial Term Loan, 9.779% (Term SOFR + 450 bps), 3/15/29 | 398,785 | ||||
300,000 | Ineos US Finance LLC, 2030 Dollar Term Loan, 8.753% (Term SOFR + 350 bps), 2/18/30 | 298,187 | ||||
162,500 | LSF11 A5 Holdco LLC, Fourth Amendment Incremental Term Loan, 9.504% (Term SOFR + 425 bps), 10/15/28 | 159,555 | ||||
498,741 | LSF11 A5 HoldCo LLC, Term Loan, 8.768% (Term SOFR + 350 bps), 10/15/28 | 482,905 | ||||
982,500 | Mativ Holdings, Inc., Term B Loan, 8.938% (Term SOFR + 375 bps), 4/20/28 | 940,744 | ||||
Total Chemicals-Diversified | $3,133,926 | |||||
Chemicals-Specialty — 2.9% | ||||||
351,895 | Avient Corp., Term B-6 Loan, 8.295% (Term SOFR + 325 bps), 8/29/29 | $ 353,178 | ||||
956,293 | CPC Acquisition Corp., First Lien Initial Term Loan, 8.91% (Term SOFR + 375 bps), 12/29/27 | 747,503 | ||||
250,000 | H.B. Fuller Company, Term Loan B, 7.653% (Term SOFR + 250 bps), 2/15/30 | 251,339 | ||||
300,000 | Ineos Quattro Holdings UK Limited, 2030 Tranche B Dollar Term Loan, 9.003% (Term SOFR + 375 bps), 3/14/30 | 298,688 | ||||
400,000 | Nouryon Finance B.V., 2023 Term Loan, 8.99% (Term SOFR + 400 bps), 4/3/28 | 394,000 | ||||
450,000(c) | Nouryon Finance B.V., Extended Dollar Term Loan, 4/3/28 | 443,025 | ||||
18,598 | Nouryon Finance B.V., Initial Dollar Term Loan, 7.895% (Term SOFR + 275 bps), 10/1/25 | 18,563 |
Principal Amount USD ($) |
Value | |||||
Chemicals-Specialty — (continued) | ||||||
400,000(c) | Olympus Water US Holding Corp., Incremental Term Loan, 11/9/28 | $ 380,583 | ||||
651,688 | Olympus Water US Holding Corp., Initial Dollar Term Loan, 8.938% (LIBOR + 375 bps), 11/9/28 | 609,898 | ||||
Total Chemicals-Specialty | $3,496,777 | |||||
Commercial Services — 3.0% | ||||||
537,809 | CoreLogic, Inc. (fka First American Corporation), First Lien Initial Term Loan, 8.688% (LIBOR + 350 bps), 6/2/28 | $ 482,539 | ||||
478,750 | Corporation Service Company, Term Loan B, 8.503% (Term SOFR + 325 bps), 11/2/29 | 478,930 | ||||
588,045 | Nielsen Consumer, Inc., 2021 Refinancing Dollar Term Loan, 8.904% (LIBOR + 375 bps), 3/6/28 | 508,169 | ||||
228,383 | Pre-Paid Legal Services, Inc., First Lien Initial Term Loan, 8.904% (LIBOR + 375 bps), 12/15/28 | 221,417 | ||||
1,881,715 | Verscend Holding Corp., Term B-1 Loan, 9.154% (LIBOR + 400 bps), 8/27/25 | 1,880,393 | ||||
Total Commercial Services | $3,571,448 | |||||
Computer Data Security — 1.1% | ||||||
1,132,750 | Magenta Buyer LLC, First Lien Initial Term Loan, 10.03% (LIBOR + 475 bps), 7/27/28 | $ 807,792 | ||||
612,937 | Vision Solutions, Inc. (Precisely Software Incorporated), First Lien Third Amendment Term Loan, 9.255% (LIBOR + 400 bps), 4/24/28 | 555,538 | ||||
Total Computer Data Security | $1,363,330 | |||||
Computer Services — 2.6% | ||||||
1,115,138 | Ahead DB Holdings LLC, First Lien Term B Loan, 8.909% (LIBOR + 375 bps), 10/18/27 | $ 1,056,128 | ||||
715,635 | MAG DS Corp., Initial Term Loan, 10.498% (Term SOFR + 550 bps), 4/1/27 | 658,385 | ||||
962,112 | Peraton Corp., First Lien Term B Loan, 9.003% (Term SOFR + 375 bps), 2/1/28 | 917,700 | ||||
591,000 | Sitel Group, Initial Dollar Term Loan, 8.91% (LIBOR + 375 bps), 8/28/28 | 566,252 | ||||
Total Computer Services | $3,198,465 | |||||
Computer Software — 2.4% | ||||||
1,237,500 | Cornerstone OnDemand, Inc., First Lien Initial Term Loan, 8.904% (LIBOR + 375 bps), 10/16/28 | $ 1,117,617 | ||||
993,639(c) | Help/Systems Holdings, Inc., Term Loan, 11/19/26 | 872,167 |
Principal Amount USD ($) |
Value | |||||
Computer Software — (continued) | ||||||
492,462 | Idera, Inc., First Lien Term B-1 Loan, 8.884% (Term SOFR + 375 bps), 3/2/28 | $ 473,441 | ||||
1,029,000 | Rackspace Technology Global, Inc., First Lien 2021 Term B Loan, 7.915% (Term SOFR + 275 bps), 2/15/28 | 405,651 | ||||
Total Computer Software | $2,868,876 | |||||
Computers-Integrated Systems — 0.5% | ||||||
551,100 | Atlas CC Acquisition Corp., First Lien Term B Loan, 9.775% (Term SOFR + 425 bps), 5/25/28 | $ 489,388 | ||||
112,088 | Atlas CC Acquisition Corp., First Lien Term C Loan, 9.775% (Term SOFR + 425 bps), 5/25/28 | 99,536 | ||||
Total Computers-Integrated Systems | $588,924 | |||||
Consulting Services — 0.8% | ||||||
1,031,991 | Ankura Consulting Group LLC, First Lien Closing Date Term Loan, 9.768% (Term SOFR + 450 bps), 3/17/28 | $ 990,712 | ||||
Total Consulting Services | $990,712 | |||||
Consumer Products — 0.2% | ||||||
1,246,656 | Instant Brands Holdings, Inc., Initial Loan, 10.218% (LIBOR + 500 bps), 4/12/28 | $ 199,465 | ||||
Total Consumer Products | $199,465 | |||||
Containers-Metal & Glass — 0.7% | ||||||
975,056 | Plaze, Inc., 2021-1 Term Loan, 10.75% (Term SOFR + 375 bps), 8/3/26 | $ 887,301 | ||||
Total Containers-Metal & Glass | $887,301 | |||||
Containers-Paper & Plastic — 2.8% | ||||||
489,975 | Charter Next Generation, Inc., First Lien 2021 Initial Term Loan, 9.018% (Term SOFR + 375 bps), 12/1/27 | $ 477,358 | ||||
273,094(c) | Pactiv Evergreen, Inc., Tranche B-2 U.S. Term Loan, 2/5/26 | 271,494 | ||||
777,265 | Pregis TopCo LLC, First Lien Initial Term Loan, 9.018% (Term SOFR + 375 bps), 7/31/26 | 763,940 | ||||
1,284,696 | ProAmpac PG Borrower LLC, First Lien 2020-1 Term Loan, 8.927% (Term SOFR + 375 bps), 11/3/25 | 1,260,073 | ||||
689,897 | Trident TPI Holdings, Inc., Tranche B-3 Initial Term Loan, 9.159% (LIBOR + 400 bps), 9/15/28 | 660,231 | ||||
Total Containers-Paper & Plastic | $3,433,096 | |||||
Principal Amount USD ($) |
Value | |||||
Cruise Lines — 1.3% | ||||||
1,604,625 | Carnival Corp., Initial Advance, 8.154% (LIBOR + 300 bps), 6/30/25 | $ 1,594,596 | ||||
Total Cruise Lines | $1,594,596 | |||||
Diagnostic Equipment — 0.4% | ||||||
497,468 | Curia Global, Inc., First Lien 2021 Term Loan, 9.003% (Term SOFR + 375 bps), 8/30/26 | $ 422,102 | ||||
Total Diagnostic Equipment | $422,102 | |||||
Dialysis Centers — 0.9% | ||||||
2,028,149 | US Renal Care, Inc., Initial Term Loan, 10.188% (LIBOR + 500 bps), 6/26/26 | $ 1,098,582 | ||||
Total Dialysis Centers | $1,098,582 | |||||
Distribution & Wholesale — 1.9% | ||||||
250,000 | AIP RD Buyer Corp., 2023 First Lien Incremental Term Loan, 10.153% (Term SOFR + 500 bps), 12/22/28 | $ 244,375 | ||||
594,000 | AIP RD Buyer Corp., First Lien Term Loan B, 9.403% (Term SOFR + 425 bps), 12/22/28 | 568,013 | ||||
864,328 | Patriot Container Corp. (aka Wastequip), First Lien Closing Date Term Loan, 9.003% (Term SOFR + 375 bps), 3/20/25 | 792,660 | ||||
687,750 | SRS Distribution, Inc., 2021 Refinancing Term Loan, 8.654% (LIBOR + 350 bps), 6/2/28 | 653,117 | ||||
Total Distribution & Wholesale | $2,258,165 | |||||
E-Commerce — 0.8% | ||||||
490,000 | CNT Holdings I Corp., First Lien Initial Term Loan, 8.459% (Term SOFR + 350 bps), 11/8/27 | $ 477,597 | ||||
497,500 | TA TT Buyer LLC, First Lien Initial Term Loan, 9.898% (Term SOFR + 500 bps), 4/2/29 | 484,441 | ||||
Total E-Commerce | $962,038 | |||||
Electric-Generation — 2.0% | ||||||
954,374 | Compass Power Generation, L.L.C., Tranche B-2 Term Loan, 9.517% (Term SOFR + 425 bps), 4/14/29 | $ 948,112 | ||||
691,793 | Eastern Power LLC (Eastern Covert Midco LLC), Term Loan, 8.909% (LIBOR + 375 bps), 10/2/25 | 659,624 | ||||
877,111 | Hamilton Projects Acquiror LLC, Term Loan, 9.659% (Term SOFR + 450 bps), 6/17/27 | 863,954 | ||||
Total Electric-Generation | $2,471,690 | |||||
Electric-Integrated — 2.3% | ||||||
1,087,433 | Constellation Renewables LLC, Loan, 8.057% (3 Month USD LIBOR + 250.0 bps), 12/15/27 | $ 1,081,122 |
Principal Amount USD ($) |
Value | |||||
Electric-Integrated — (continued) | ||||||
1,414,988 | PG&E Corp., Term Loan, 8.188% (LIBOR + 300 bps), 6/23/25 | $ 1,407,028 | ||||
138,095 | Talen Energy Supply, LLC, Initial Term Loan B, 9.59% (Term SOFR + 450 bps), 5/17/30 | 135,143 | ||||
111,905 | Talen Energy Supply, LLC, Initial Term Loan C, 9.59% (Term SOFR + 450 bps), 5/17/30 | 109,513 | ||||
Total Electric-Integrated | $2,732,806 | |||||
Electronic Composition — 2.5% | ||||||
1,691,356 | Energy Acquisition LP, First Lien Initial Term Loan, 9.614% (Term SOFR + 425 bps), 6/26/25 | $ 1,582,124 | ||||
1,024,829 | Natel Engineering Co., Inc., Initial Term Loan, 11.41% (LIBOR + 625 bps), 4/30/26 | 901,849 | ||||
479,452 | Pike Corp., 2028 Initial Term Loan, 8.268% (Term SOFR + 300 bps), 1/21/28 | 475,423 | ||||
Total Electronic Composition | $2,959,396 | |||||
Engines — 1.0% | ||||||
1,300,000 | Arcline FM Holdings LLC, Second Lien Term Loan, 13.409% (LIBOR + 825 bps), 6/25/29 | $ 1,183,000 | ||||
Total Engines | $1,183,000 | |||||
Enterprise Software & Services — 1.3% | ||||||
250,000 | Applied Systems, Inc., 2026 First Lien Term Loan, 9.398% (Term SOFR + 450 bps), 9/18/26 | $ 250,094 | ||||
500,000 | First Advantage Holdings LLC, First Lien Term B-1 Loan, 7.904% (LIBOR + 275 bps), 1/31/27 | 496,146 | ||||
298,485 | Polaris Newco LLC, First Lien Dollar Term Loan, 9.159% (LIBOR + 400 bps), 6/2/28 | 268,413 | ||||
400,000(c) | Quartz Acquireco, LLC, Term Loan B, 4/14/30 | 397,000 | ||||
212,384 | Skopima Consilio Parent LLC, First Lien Initial Term Loan, 9.154% (LIBOR + 400 bps), 5/12/28 | 200,205 | ||||
Total Enterprise Software & Services | $1,611,858 | |||||
Finance-Credit Card — 0.4% | ||||||
500,000(c) | Blackhawk Network Holdings, Inc., First Lien Term Loan, 6/15/25 | $ 488,250 | ||||
Total Finance-Credit Card | $488,250 | |||||
Finance-Investment Banker — 0.5% | ||||||
696,953 | Hudson River Trading LLC, Term Loan, 8.268% (Term SOFR + 300 bps), 3/20/28 | $ 660,146 | ||||
Total Finance-Investment Banker | $660,146 | |||||
Principal Amount USD ($) |
Value | |||||
Food-Dairy Products — 1.4% | ||||||
1,706,250 | Chobani LLC., 2020 New Term Loan, 8.768% (Term SOFR + 350 bps), 10/25/27 | $ 1,690,609 | ||||
Total Food-Dairy Products | $1,690,609 | |||||
Footwear & Related Apparel — 0.4% | ||||||
480,000 | Crocs, Inc., Term Loan, 8.753% (Term SOFR + 350 bps), 2/20/29 | $ 479,782 | ||||
Total Footwear & Related Apparel | $479,782 | |||||
Gambling (Non-Hotel) — 0.7% | ||||||
398,000 | Flutter Entertainment plc, Third Amendment 2028-B Term Loan, 8.41% (Term SOFR + 325 bps), 7/22/28 | $ 399,327 | ||||
497,494 | Light and Wonder International, Inc., Initial Term B Loan, 8.159% (Term SOFR + 300 bps), 4/14/29 | 493,659 | ||||
Total Gambling (Non-Hotel) | $892,986 | |||||
Golf — 0.6% | ||||||
700,000 | Topgolf Callaway Brands Corp , Intial Term Loan, 8.753% (Term SOFR + 350 bps), 3/15/30 | $ 691,188 | ||||
Total Golf | $691,188 | |||||
Hotels & Motels — 1.0% | ||||||
699,500(c) | Playa Resorts Holding B.V., 2022 Term Loan, 1/5/29 | $ 697,606 | ||||
498,750 | Travel + Leisure Co., 2022 Incremental Term Loan, 9.159% (Term SOFR + 400 bps), 12/14/29 | 498,126 | ||||
Total Hotels & Motels | $1,195,732 | |||||
Human Resources — 0.8% | ||||||
980,000 | Ingenovis Health, Inc. (fka CCRR Parent, Inc.), First Lien Initial Term Loan, 8.91% (LIBOR + 375 bps), 3/6/28 | $ 940,800 | ||||
Total Human Resources | $940,800 | |||||
Independent Power Producer — 1.2% | ||||||
1,449,441 | EFS Cogen Holdings I LLC, Term B Advance, 8.66% (Term SOFR + 350 bps), 10/1/27 | $ 1,433,814 | ||||
Total Independent Power Producer | $1,433,814 | |||||
Internet Content — 0.2% | ||||||
300,000(c) | MH Sub I, LLC (Micro Holding Corp.), 2023 May Incremental First Lien Term Loan, 4/25/28 | $ 284,812 | ||||
Total Internet Content | $284,812 | |||||
Principal Amount USD ($) |
Value | |||||
Investment Companies — 0.7% | ||||||
751,184 | Diebold Nixdorf Holding Germany GmbH, Term Loan, 11.629% (Term SOFR + 650 bps), 7/15/25 | $ 899,542 | ||||
Total Investment Companies | $899,542 | |||||
Investment Management & Advisory Services — 1.1% | ||||||
248,744 | Allspring Buyer LLC, Initial Term Loan, 8.188% (LIBOR + 300 bps), 11/1/28 | $ 243,536 | ||||
590,996 | Edelman Financial Engines Center LLC, First Lien 2021 Initial Term Loan, 8.904% (LIBOR + 375 bps), 4/7/28 | 568,279 | ||||
492,179 | Russell Investments US Institutional Holdco, Inc., 2025 Term Loan, 8.753% (Term SOFR + 350 bps), 5/30/25 | 467,509 | ||||
Total Investment Management & Advisory Services | $1,279,324 | |||||
Lottery Services — 0.6% | ||||||
796,000 | Scientific Games Holdings LP, First Lien Initial Dollar Term Loan, 8.421% (Term SOFR + 350 bps), 4/4/29 | $ 769,632 | ||||
Total Lottery Services | $769,632 | |||||
Machinery — 1.6% | ||||||
777,857 | East West Manufacturing LLC, Initial Term Loan, 10.793% (Term SOFR + 575 bps), 12/22/28 | $ 657,289 | ||||
1,481,250 | Engineered Components & Systems LLC, First Lien Initial Term Loan, 11.108% (LIBOR + 600 bps), 8/2/28 | 1,325,719 | ||||
Total Machinery | $1,983,008 | |||||
Machinery-Pumps — 0.8% | ||||||
921,307 | Circor International, Inc., Initial Term Loan, 10.654% (LIBOR + 550 bps), 12/20/28 | $ 917,276 | ||||
Total Machinery-Pumps | $917,276 | |||||
Medical Diagnostic Imaging — 0.7% | ||||||
833,820 | US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.), Closing Date Term Loan, 10.503% (Term SOFR + 525 bps), 12/15/27 | $ 784,483 | ||||
Total Medical Diagnostic Imaging | $784,483 | |||||
Medical Information Systems — 2.3% | ||||||
796,320 | athenahealth Group, Inc., Initial Term Loan, 8.598% (Term SOFR + 350 bps), 2/15/29 | $ 752,357 | ||||
490,022 | Azalea TopCo, Inc., First Lien 2021 Term Loan, 9.018% (Term SOFR + 375 bps), 7/24/26 | 464,194 |
Principal Amount USD ($) |
Value | |||||
Medical Information Systems — (continued) | ||||||
944,733 | Gainwell Acquisition Corp., First Lien Term B Loan, 8.998% (Term SOFR + 400 bps), 10/1/27 | $ 898,913 | ||||
982,500 | One Call Corp., First Lien Term B Loan, 10.829% (Term SOFR + 550 bps), 4/22/27 | 712,312 | ||||
Total Medical Information Systems | $2,827,776 | |||||
Medical Labs & Testing Services — 2.4% | ||||||
374,063 | Charlotte Buyer, Inc., First Lien Initial Term Loan B, 10.304% (Term SOFR + 525 bps), 2/11/28 | $ 358,554 | ||||
766,124(b) | Envision Healthcare Corp., 2018 Third Out Term Loan, 8.648% (Term SOFR + 375 bps), 3/31/27 | 2,490 | ||||
489,924 | eResearchTechnology, Inc., First Lien Initial Term Loan, 9.768% (Term SOFR + 450 bps), 2/4/27 | 453,443 | ||||
1,451,588 | FC Compassus LLC, Term B-1 Loan, 9.494% (Term SOFR + 425 bps), 12/31/26 | 1,306,429 | ||||
498,728 | Phoenix Guarantor Inc., First Lien Tranche B-3 Term Loan, 8.654% (LIBOR + 350 bps), 3/5/26 | 483,766 | ||||
491,250 | Sound Inpatient Physicians, Inc., First Lien 2021 Incremental Term Loan, 8.273% (LIBOR + 300 bps), 6/27/25 | 319,108 | ||||
Total Medical Labs & Testing Services | $2,923,790 | |||||
Medical Products — 1.0% | ||||||
1,235,707 | NMN Holdings III Corp., First Lien Closing Date Term Loan, 9.018% (Term SOFR + 375 bps), 11/13/25 | $ 1,059,619 | ||||
213,500 | NMN Holdings III Corp., First Lien Delayed Draw Term Loan, 9.003% (Term SOFR + 375 bps), 11/13/25 | 183,076 | ||||
Total Medical Products | $1,242,695 | |||||
Medical-Biomedical & Generation — 0.8% | ||||||
983,510 | ANI Pharmaceuticals, Inc., Initial Term Loan, 11.154% (LIBOR + 600 bps), 11/19/27 | $ 976,748 | ||||
Total Medical-Biomedical & Generation | $976,748 | |||||
Medical-Drugs — 1.8% | ||||||
1,477,992 | Endo Luxembourg Finance Company I S.a r.l., 2021 Term Loan, 14.25% (LIBOR + 400 bps), 3/27/28 | $ 1,129,740 | ||||
442,863 | Jazz Pharmaceuticals Public Limited Company, Initial Dollar Term Loan, 8.654% (LIBOR + 350 bps), 5/5/28 | 442,482 | ||||
705,882 | Padagis LLC, Term B Loan, 9.969% (LIBOR + 475 bps), 7/6/28 | 646,324 | ||||
Total Medical-Drugs | $2,218,546 | |||||
Principal Amount USD ($) |
Value | |||||
Medical-Hospitals — 1.2% | ||||||
1,404,771 | Quorum Health Corp., Exit Term Loan, 13.245% (Term SOFR + 825 bps), 4/29/25 | $ 877,982 | ||||
586,966 | Surgery Center Holdings, Inc., 2021 New Term Loan, 8.858% (LIBOR + 375 bps), 8/31/26 | 584,031 | ||||
Total Medical-Hospitals | $1,462,013 | |||||
Medical-Outpatient & Home Medicine — 0.6% | ||||||
374,062 | EyeCare Partners, LLC, Incremental First Lien Term Loan, 9.753% (Term SOFR + 450 bps), 11/15/28 | $ 283,119 | ||||
495,386 | Medical Solutions Holdings, Inc., First Lien Initial Term Loan, 8.614% (Term SOFR + 325 bps), 11/1/28 | 461,560 | ||||
Total Medical-Outpatient & Home Medicine | $744,679 | |||||
Medical-Wholesale Drug Distribution — 0.3% | ||||||
450,000 | CVET Midco 2 LP, First Lien Initial Term Loan, 9.898% (Term SOFR + 500 bps), 10/13/29 | $ 417,281 | ||||
Total Medical-Wholesale Drug Distribution | $417,281 | |||||
Metal Processors & Fabrication — 1.6% | ||||||
492,500 | Grinding Media, Inc. (Molycop, Ltd.), First Lien Initial Term Loan, 9.199% (Term SOFR + 400 bps), 10/12/28 | $ 469,106 | ||||
736,875 | Tiger Acquisition LLC, First Lien Initial Term Loan, 8.503% (Term SOFR + 325 bps), 6/1/28 | 701,797 | ||||
780,261 | WireCo WorldGroup, Inc., Initial Term Loan, 9.375% (LIBOR + 425 bps), 11/13/28 | 771,809 | ||||
Total Metal Processors & Fabrication | $1,942,712 | |||||
Multimedia — 0.3% | ||||||
348,125 | The E.W. Scripps Company, Tranche B-3 Term Loan, 8.018% (Term SOFR + 275 bps), 1/7/28 | $ 330,229 | ||||
Total Multimedia | $330,229 | |||||
Office Automation & Equipment — 0.7% | ||||||
882,000 | Pitney Bowes, Inc., Refinancing Tranche B Term Loan, 9.268% (Term SOFR + 400 bps), 3/17/28 | $ 815,850 | ||||
Total Office Automation & Equipment | $815,850 | |||||
Oil-Field Services — 0.3% | ||||||
127,727 | ProFrac Holdings II LLC, Term Loan, 12.42% (Term SOFR + 725 bps), 3/4/25 | $ 127,009 | ||||
246,875 | ProFrac Holdings II, LLC, Delayed Draw Term A Loan, 12.148% (Term SOFR + 725 bps), 3/4/25 | 245,949 | ||||
Total Oil-Field Services | $372,958 | |||||
Principal Amount USD ($) |
Value | |||||
Pastoral & Agricultural — 0.5% | ||||||
641,875 | Alltech, Inc., Term B Loan, 9.268% (Term SOFR + 400 bps), 10/13/28 | $ 622,619 | ||||
Total Pastoral & Agricultural | $622,619 | |||||
Pharmacy Services — 0.3% | ||||||
345,625 | Option Care Health, Inc., First Lien 2021 Refinancing Term Loan, 7.904% (LIBOR + 275 bps), 10/27/28 | $ 345,085 | ||||
Total Pharmacy Services | $345,085 | |||||
Physical Practice Management — 1.8% | ||||||
3,441,548 | Team Health Holdings, Inc., Extended Term Loan, 10.403% (Term SOFR + 525 bps), 3/2/27 | $ 2,140,213 | ||||
Total Physical Practice Management | $2,140,213 | |||||
Physical Therapy & Rehabilitation Centers — 2.2% | ||||||
924,000 | Summit Behavioral Healthcare LLC, First Lien Initial Term Loan, 10.237% (Term SOFR + 475 bps), 11/24/28 | $ 910,140 | ||||
2,184,890 | Upstream Newco, Inc., First Lien August 2021 Incremental Term Loan, 9.41% (Term SOFR + 425 bps), 11/20/26 | 1,758,836 | ||||
Total Physical Therapy & Rehabilitation Centers | $2,668,976 | |||||
Pipelines — 3.7% | ||||||
600,000 | Brazos Delaware II, LLC, Initial Term Loan, 8.805% (Term SOFR + 375 bps), 2/11/30 | $ 587,125 | ||||
492,282(c) | GIP III Stetson I, L.P. (GIP III Stetson II, L.P.), Initial Term Loan, 7/18/25 | 490,231 | ||||
398,000 | M6 Etx Holdings II Midco, LLC, Term Loan B, 9.682% (Term SOFR + 450 bps), 9/19/29 | 392,428 | ||||
3,002,477 | Traverse Midstream Partners LLC, Advance, 8.997% (1 Month Term SOFR + 375.0 bps), 2/16/28 | 2,963,070 | ||||
Total Pipelines | $4,432,854 | |||||
Professional Sports — 0.4% | ||||||
500,000 | Formula One Management, Ltd. First Lien Facility B Loan, 8.153% (Term SOFR + 300 bps), 1/15/30 | $ 500,625 | ||||
Total Professional Sports | $500,625 | |||||
Property & Casualty Insurance — 2.3% | ||||||
490,000 | Asurion LLC, New B-9 Term Loan, 8.404% (LIBOR + 325 bps), 7/31/27 | $ 446,665 | ||||
1,250,000 | Asurion LLC, Second Lien New B-4 Term Loan, 10.404% (LIBOR + 525 bps), 1/20/29 | 1,026,116 | ||||
223,875 | Asurion, LLC, New B-10 Term Loan, 9.253% (Term SOFR + 400 bps), 8/19/28 | 206,357 |
Principal Amount USD ($) |
Value | |||||
Property & Casualty Insurance — (continued) | ||||||
247,409 | Asurion, LLC, New B-11 Term Loan, 9.503% (Term SOFR + 425 bps), 8/19/28 | $ 228,668 | ||||
864,194 | Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.), 2023 Term Loan, 8.903% (Term SOFR + 375 bps), 2/24/28 | 841,809 | ||||
Total Property & Casualty Insurance | $2,749,615 | |||||
Protection-Safety — 1.6% | ||||||
1,477,500 | APX Group, Inc., Initial Term Loan, 3.25% (LIBOR + 325 bps), 7/10/28 | $ 1,469,652 | ||||
496,203 | Prime Security Services Borrower LLC, First Lien 2021 Refinancing Term B-1 Loan, 7.844% (LIBOR + 275 bps), 9/23/26 | 493,747 | ||||
Total Protection-Safety | $1,963,399 | |||||
Publishing — 2.0% | ||||||
843,484 | Cengage Learning, Inc., First Lien Term B Loan, 9.88% (LIBOR + 475 bps), 7/14/26 | $ 798,463 | ||||
796,000 | Houghton Mifflin Harcourt Company, First Lien Term B Loan, 10.503% (Term SOFR + 525 bps), 4/9/29 | 702,470 | ||||
988,750 | McGraw-Hill Education, Inc., Initial Term Loan, 9.985% (LIBOR + 475 bps), 7/28/28 | 929,796 | ||||
Total Publishing | $2,430,729 | |||||
Publishing-Periodicals — 0.3% | ||||||
371,250 | MJH Healthcare Holdings LLC, Initial Term B Loan, 8.753% (Term SOFR + 350 bps), 1/28/29 | $ 361,969 | ||||
Total Publishing-Periodicals | $361,969 | |||||
Recycling — 0.6% | ||||||
835,866 | LTR Intermediate Holdings, Inc., Initial Term Loan, 9.654% (LIBOR + 450 bps), 5/5/28 | $ 706,306 | ||||
Total Recycling | $706,306 | |||||
Retail — 5.9% | ||||||
537,687 | Great Outdoors Group LLC, Term B-2 Loan, 8.904% (LIBOR + 375 bps), 3/6/28 | $ 523,461 | ||||
498,721 | Harbor Freight Tools USA, Inc., 2021 Initial Term Loan, 7.904% (LIBOR + 275 bps), 10/19/27 | 479,934 | ||||
1,012,667 | Highline Aftermarket Acquisition LLC, First Lien Initial Term Loan, 9.753% (Term SOFR + 450 bps), 11/9/27 | 972,160 | ||||
1,031,625 | Michaels Cos, Inc., The Term B Loan, 9.409% (LIBOR + 425 bps), 4/15/28 | 912,472 | ||||
473,603 | Petco Health & Wellness Co., Inc., First Lien Initial Term Loan, 8.41% (Term SOFR + 325 bps), 3/3/28 | 464,368 |
Principal Amount USD ($) |
Value | |||||
Retail — (continued) | ||||||
1,031,625 | PetSmart LLC, Initial Term Loan, 9.003% (Term SOFR + 375 bps), 2/11/28 | $ 1,019,503 | ||||
735,070 | RVR Dealership Holdings LLC, Term Loan, 8.971% (Term SOFR + 375 bps), 2/8/28 | 662,482 | ||||
916,811 | Staples, Inc., 2019 Refinancing New Term B-2 Loan, 9.799% (LIBOR + 450 bps), 9/12/24 | 903,059 | ||||
462,500 | Torrid LLC, Closing Date Term Loan, 10.768% (Term SOFR + 550 bps), 6/14/28 | 408,156 | ||||
744,347 | White Cap Supply Holdings LLC, Initial Closing Date Term Loan, 8.903% (Term SOFR + 375 bps), 10/19/27 | 732,768 | ||||
Total Retail | $7,078,363 | |||||
Rubber & Plastic Products — 1.3% | ||||||
1,127,170 | Gates Global LLC, Initial B-3 Dollar Term Loan, 7.753% (Term SOFR + 250 bps), 3/31/27 | $ 1,116,667 | ||||
497,500 | Gates Global LLC, Initial B-4 Dollar Term Loan, 8.653% (Term SOFR + 350 bps), 11/16/29 | 496,598 | ||||
Total Rubber & Plastic Products | $1,613,265 | |||||
Schools — 1.1% | ||||||
299,250 | Bach Finance Limited (aka Nord Anglia/Fugue Finance), First Lien Seventh Amendment Dollar Term Loan, 9.764% (Term SOFR + 450 bps), 1/31/28 | $ 297,754 | ||||
1,066,535 | KUEHG Corp. (fka KC MergerSub, Inc.), Term B-3 Loan, 8.909% (LIBOR + 375 bps), 2/21/25 | 1,065,963 | ||||
Total Schools | $1,363,717 | |||||
Security Services — 2.3% | ||||||
349,114 | Allied Universal Holdco LLC (f/k/a USAGM Holdco LLC), Initial U.S. Dollar Term Loan, 9.003% (Term SOFR + 375 bps), 5/12/28 | $ 328,797 | ||||
600,000(c) | Allied Universal Holdco LLC, Incremental Term Loan, 5/12/28 | 570,375 | ||||
1,964,719 | Garda World Security Corp., Term B-2 Loan, 9.444% (Term SOFR + 425 bps), 10/30/26 | 1,937,459 | ||||
Total Security Services | $2,836,631 | |||||
Semiconductor Equipment — 0.9% | ||||||
1,131,365 | Ultra Clean Holdings, Inc., Second Amendment Term B Loan, 8.904% (LIBOR + 375 bps), 8/27/25 | $ 1,132,603 | ||||
Total Semiconductor Equipment | $1,132,603 | |||||
Principal Amount USD ($) |
Value | |||||
Shipbuilding — 1.1% | ||||||
475,000(c) | LSF11 Trinity Bidco, Inc., Term Loan, 4/26/30 | $ 467,875 | ||||
843,061 | MHI Holdings LLC, Initial Term Loan, 10.154% (LIBOR + 500 bps), 9/21/26 | 843,061 | ||||
Total Shipbuilding | $1,310,936 | |||||
Soap & Cleaning Preparation — 0.4% | ||||||
987,500 | Knight Health Holdings LLC, Term B Loan, 10.404% (LIBOR + 525 bps), 12/23/28 | $ 498,687 | ||||
Total Soap & Cleaning Preparation | $498,687 | |||||
Steel Producers — 0.5% | ||||||
151,041(d) | Phoenix Services International LLC, Initial Term Loan, 17.136% (Term SOFR + 200 bps), 7/29/23 | $ 144,999 | ||||
434,414 | Phoenix Services International LLC, Roll-Up Loan (DIP), 17.136% (Term SOFR + 0 bps), 7/29/23 | 417,037 | ||||
1,156,379 | Phoenix Services International LLC, Term B Loan, 9.249% (LIBOR + 0 bps), 3/1/25 | — | ||||
Total Steel Producers | $562,036 | |||||
Telecom Services — 1.2% | ||||||
646,750 | Patagonia Holdco LLC, Amendment No.1 Term Loan, 10.789% (Term SOFR + 575 bps), 8/1/29 | $ 525,484 | ||||
1,022,020 | Windstream Services II, LLC, Initial Term Loan, 11.503% (Term SOFR + 625 bps), 9/21/27 | 928,505 | ||||
Total Telecom Services | $1,453,989 | |||||
Telephone-Integrated — 0.4% | ||||||
500,000 | Level 3 Financing, Inc., Tranche B 2027 Term Loan, 7.018% (Term SOFR + 175 bps), 3/1/27 | $ 438,750 | ||||
Total Telephone-Integrated | $438,750 | |||||
Textile-Home Furnishings — 0.6% | ||||||
990,000 | Runner Buyer, Inc., Initial Term Loan, 10.654% (LIBOR + 550 bps), 10/20/28 | $ 753,637 | ||||
Total Textile-Home Furnishings | $753,637 | |||||
Theaters — 1.0% | ||||||
522,253 | AMC Entertainment Holdings, Inc. (fka AMC Entertainment, Inc.), Term B-1 Loan, 8.107% (LIBOR + 300 bps), 4/22/26 | $ 400,422 | ||||
600,000(c) | Cinemark USA, Inc., Term Loan, 5/24/30 | 591,750 | ||||
200,000 | Cirque du Soleil Canada Inc., Initial Term Loan, 9.148% (Term SOFR + 425 bps), 3/8/30 | 198,750 | ||||
Total Theaters | $1,190,922 | |||||
Principal Amount USD ($) |
Value | |||||
Transport-Air Freight — 0.3% | ||||||
350,000 | Rand Parent LLC, First Lien Term B Loan, 9.127% (Term SOFR + 425 bps), 3/17/30 | $ 302,167 | ||||
Total Transport-Air Freight | $302,167 | |||||
Transportation - Trucks — 0.4% | ||||||
492,500 | Carriage Purchaser, Inc., Term B Loan, 9.404% (LIBOR + 425 bps), 9/30/28 | $ 483,676 | ||||
Total Transportation - Trucks | $483,676 | |||||
Transportation Services — 2.1% | ||||||
1,182,000 | AIT Worldwide Logistics Holdings, Inc., First Lien Initial Term Loan, 9.849% (LIBOR + 475 bps), 4/6/28 | $ 1,130,288 | ||||
373,091 | First Student Bidco Inc., 2022 Incremental Term B Loan, 8.998% (Term SOFR + 400 bps), 7/21/28 | 359,287 | ||||
25,974 | First Student Bidco Inc., 2022 Incremental Term C Loan, 8.998% (Term SOFR + 400 bps), 7/21/28 | 25,013 | ||||
540,932 | First Student Bidco, Inc., Initial Term B Loan, 8.143% (LIBOR + 300 bps), 7/21/28 | 504,335 | ||||
202,206 | First Student Bidco, Inc., Initial Term C Loan, 8.143% (LIBOR + 300 bps), 7/21/28 | 188,525 | ||||
344,750 | LaserShip, Inc., First Lien Initial Term Loan, 9.659% (LIBOR + 450 bps), 5/7/28 | 281,833 | ||||
Total Transportation Services | $2,489,281 | |||||
Veterinary Diagnostics — 0.4% | ||||||
500,000(c) | Southern Veterinary Partners LLC, First Lien Initial Term Loan, 10/5/27 | $ 485,000 | ||||
Total Veterinary Diagnostics | $485,000 | |||||
Total Senior Secured Floating Rate Loan Interests (Cost $166,398,821) |
$151,861,209 | |||||
Shares | ||||||
Common Stock — 0.4% of Net Assets | ||||||
Passenger Airlines — 0.4% | ||||||
40,684(e) | Grupo Aeromexico SAB de CV | $ 459,992 | ||||
Total Passenger Airlines | $459,992 | |||||
Total Common Stock (Cost $665,000) |
$459,992 | |||||
Principal Amount USD ($) |
Value | |||||
Asset Backed Securities — 2.9% of Net Assets | ||||||
1,000,000(a) | 522 Funding CLO, Ltd., Series 2019-4A, Class E, 12.25% (3 Month USD LIBOR + 700 bps), 4/20/30 (144A) | $ 870,431 | ||||
1,000,000(a) | Goldentree Loan Management US CLO 2, Ltd., Series 2017-2A, Class E, 9.95% (3 Month USD LIBOR + 470 bps), 11/28/30 (144A) | 899,378 | ||||
1,000,000 | JPMorgan Chase Bank NA - CACLN, Series 2021-3, Class G, 9.812%, 2/26/29 (144A) | 936,826 | ||||
1,000,000(a) | Octagon Investment Partners XXI, Ltd., Series 2014-1A, Class DRR, 12.321% (3 Month USD LIBOR + 700 bps), 2/14/31 (144A) | 839,806 | ||||
Total Asset Backed Securities (Cost $3,965,324) |
$3,546,441 | |||||
Collateralized Mortgage Obligations—2.4% of Net Assets |
||||||
370,000(a) | Connecticut Avenue Securities Trust, Series 2021-R01, Class 1B2, 10.973% (SOFR30A + 600 bps), 10/25/41 (144A) | $ 347,397 | ||||
750,000(a) | Freddie Mac STACR REMIC Trust, Series 2021-DNA5, Class B2, 10.473% (SOFR30A + 550 bps), 1/25/34 (144A) | 652,973 | ||||
230,000(a) | Freddie Mac STACR REMIC Trust, Series 2021-DNA7, Class B2, 12.773% (SOFR30A + 780 bps), 11/25/41 (144A) | 216,729 | ||||
490,000(a) | Freddie Mac STACR REMIC Trust, Series 2021-HQA3, Class B2, 11.223% (SOFR30A + 625 bps), 9/25/41 (144A) | 435,488 | ||||
250,000(a) | Freddie Mac STACR REMIC Trust, Series 2022-DNA1, Class B2, 12.073% (SOFR30A + 710 bps), 1/25/42 (144A) | 225,474 | ||||
320,000(a) | Freddie Mac STACR REMIC Trust, Series 2022-DNA2, Class B2, 13.473% (SOFR30A + 850 bps), 2/25/42 (144A) | 301,404 | ||||
710,000(a) | STACR Trust, Series 2018-HRP2, Class B2, 15.638% (1 Month USD LIBOR + 1,050 bps), 2/25/47 (144A) | 787,212 | ||||
Total Collateralized Mortgage Obligations (Cost $3,201,672) |
$2,966,677 | |||||
Commercial Mortgage-Backed Securities—1.3% of Net Assets |
||||||
553,088(a) | BX Trust, Series 2022-PSB, Class F, 12.392% (1 Month Term SOFR + 733 bps), 8/15/39 (144A) | $ 550,400 | ||||
315,000(a) | Capital Funding Mortgage Trust, Series 2021-8, Class B, 18.13% (1 Month USD LIBOR + 1,310 bps), 6/22/23 (144A) | 315,000 |
Principal Amount USD ($) |
Value | |||||
Commercial Mortgage-Backed Securities—(continued) |
||||||
47,473(a) | FREMF Mortgage Trust, Series 2020-KF74, Class C, 11.312% (1 Month USD LIBOR + 625 bps), 1/25/27 (144A) | $ 45,292 | ||||
1,000,000 | Wells Fargo Commercial Mortgage Trust, Series 2015-C28, Class E, 3.00%, 5/15/48 (144A) | 675,332 | ||||
Total Commercial Mortgage-Backed Securities (Cost $1,703,938) |
$1,586,024 | |||||
Corporate Bonds — 10.9% of Net Assets | ||||||
Advertising — 0.2% | ||||||
255,000 | Clear Channel Outdoor Holdings, Inc., 7.50%, 6/1/29 (144A) | $ 181,619 | ||||
Total Advertising | $181,619 | |||||
Aerospace & Defense — 0.4% | ||||||
500,000 | Bombardier, Inc., 7.125%, 6/15/26 (144A) | $ 490,336 | ||||
Total Aerospace & Defense | $490,336 | |||||
Airlines — 2.3% | ||||||
1,690,000 | Grupo Aeromexico SAB de CV, 8.50%, 3/17/27 (144A) | $ 1,516,606 | ||||
1,500,000 | VistaJet Malta Finance Plc/Vista Management Holding, Inc., 6.375%, 2/1/30 (144A) | 1,192,620 | ||||
Total Airlines | $2,709,226 | |||||
Auto Parts & Equipment — 0.2% | ||||||
250,000 | Adient Global Holdings, Ltd., 7.00%, 4/15/28 (144A) | $ 252,646 | ||||
Total Auto Parts & Equipment | $252,646 | |||||
Banks — 1.0% | ||||||
1,000,000(f)(g) | Citigroup, Inc., 4.70% (SOFR + 323 bps) | $ 867,100 | ||||
391,000 | Freedom Mortgage Corp., 8.25%, 4/15/25 (144A) | 373,531 | ||||
Total Banks | $1,240,631 | |||||
Chemicals — 0.4% | ||||||
250,000 | Element Solutions, Inc., 3.875%, 9/1/28 (144A) | $ 218,799 | ||||
300,000 | SCIL IV LLC/SCIL USA Holdings LLC, 5.375%, 11/1/26 (144A) | 276,782 | ||||
Total Chemicals | $495,581 | |||||
Commercial Services — 0.3% | ||||||
500,000 | Garda World Security Corp., 6.00%, 6/1/29 (144A) | $ 398,026 | ||||
Total Commercial Services | $398,026 | |||||
Principal Amount USD ($) |
Value | |||||
Distribution/Wholesale — 0.1% | ||||||
110,000 | Ritchie Bros Holdings, Inc., 6.75%, 3/15/28 (144A) | $ 111,308 | ||||
Total Distribution/Wholesale | $111,308 | |||||
Diversified Financial Services — 0.1% | ||||||
200,000 | Jefferies Finance LLC/JFIN Co.-Issuer Corp., 5.00%, 8/15/28 (144A) | $ 162,710 | ||||
Total Diversified Financial Services | $162,710 | |||||
Engineering & Construction — 0.4% | ||||||
590,324 | Artera Services LLC, 9.033%, 12/4/25 (144A) | $ 504,731 | ||||
Total Engineering & Construction | $504,731 | |||||
Iron & Steel — 0.4% | ||||||
500,000 | Metinvest BV, 7.75%, 10/17/29 (144A) | $ 270,000 | ||||
265,000 | TMS International Corp., 6.25%, 4/15/29 (144A) | 209,477 | ||||
Total Iron & Steel | $479,477 | |||||
Leisure Time — 0.4% | ||||||
500,000 | Viking Cruises, Ltd., 5.875%, 9/15/27 (144A) | $ 440,625 | ||||
Total Leisure Time | $440,625 | |||||
Lodging — 0.8% | ||||||
1,000,000 | Station Casinos LLC, 4.50%, 2/15/28 (144A) | $ 889,872 | ||||
Total Lodging | $889,872 | |||||
Media — 0.8% | ||||||
510,000 | McGraw-Hill Education, Inc., 8.00%, 8/1/29 (144A) | $ 425,850 | ||||
1,000,000 | Sinclair Television Group, Inc., 5.50%, 3/1/30 (144A) | 579,878 | ||||
Total Media | $1,005,728 | |||||
Mining — 1.1% | ||||||
500,000 | Coeur Mining, Inc., 5.125%, 2/15/29 (144A) | $ 421,250 | ||||
925,000 | First Quantum Minerals, Ltd., 8.625%, 6/1/31 (144A) | 912,281 | ||||
Total Mining | $1,333,531 | |||||
Oil & Gas — 1.3% | ||||||
1,500,000 | MEG Energy Corp., 7.125%, 2/1/27 (144A) | $ 1,526,849 | ||||
Total Oil & Gas | $1,526,849 | |||||
Retail — 0.3% | ||||||
500,000 | LBM Acquisition LLC, 6.25%, 1/15/29 (144A) | $ 395,905 | ||||
Total Retail | $395,905 | |||||
Principal Amount USD ($) |
Value | |||||
Telecommunications — 0.4% | ||||||
500,000 | Altice France Holding SA, 6.00%, 2/15/28 (144A) | $ 247,492 | ||||
275,000 | Level 3 Financing, Inc., 10.50%, 5/15/30 (144A) | 261,314 | ||||
Total Telecommunications | $508,806 | |||||
Total Corporate Bonds (Cost $14,999,017) |
$13,127,607 | |||||
Shares | ||||||
Preferred Stock — 0.1% of Net Assets | ||||||
Capital Markets — 0.1% | ||||||
2,870 | B Riley Financial, Inc., 6.75%, 5/31/24 | $ 70,258 | ||||
Total Capital Markets | $70,258 | |||||
Total Preferred Stock (Cost $70,513) |
$70,258 | |||||
Principal Amount USD ($) |
||||||
Insurance-Linked Securities — 1.2% of Net Assets# |
||||||
Event Linked Bonds — 1.0% | ||||||
Multiperil – U.S. — 0.6% | ||||||
250,000(a) | Matterhorn Re, 10.228%, (SOFR + 525 bps), 3/24/25 (144A) | $ 233,100 | ||||
250,000(a) | Residential Re, 10.555%, (3 Month U.S. Treasury Bill + 518 bps), 12/6/25 (144A) | 223,275 | ||||
250,000(a) | Sanders Re III, 8.858%, (3 Month U.S. Treasury Bill + 350 bps), 4/7/26 (144A) | 236,800 | ||||
$693,175 | ||||||
Windstorm – North Carolina — 0.2% | ||||||
250,000(a) | Cape Lookout Re, 10.358%, (3 Month U.S. Treasury Bill + 500 bps), 3/28/25 (144A) | $ 234,200 | ||||
Windstorm – U.S. Regional — 0.2% | ||||||
250,000(a) | Commonwealth Re, 8.858%, (3 Month U.S. Treasury Bill + 350 bps), 7/8/25 (144A) | $ 244,825 | ||||
Total Event Linked Bonds | $1,172,200 | |||||
Face Amount USD ($) |
Value | |||||
Collateralized Reinsurance — 0.0%† | ||||||
Multiperil – Worldwide — 0.0%† | ||||||
27,000(h)+ | Limestone Re 2019-2, 10/1/23 (144A) | $ — | ||||
Windstorm – Florida — 0.0%† | ||||||
250,000(e)(h)+ | Formby Re 2018, 2/29/24 | $ 8,006 | ||||
Total Collateralized Reinsurance | $8,006 | |||||
Reinsurance Sidecars — 0.2% | ||||||
Multiperil – U.S. — 0.0%† | ||||||
250,000(e)(i)+ | Harambee Re 2018, 12/31/24 | $ — | ||||
250,000(e)(i)+ | Harambee Re 2019, 12/31/24 | 425 | ||||
$425 | ||||||
Multiperil – Worldwide — 0.2% | ||||||
29,558(i)+ | Alturas Re 2020-2, 3/10/24 | $ 1,321 | ||||
12,278(e)(i)+ | Alturas Re 2022-2, 12/31/27 | 5,570 | ||||
907,913(e)(h)+ | Berwick Re 2019-1, 12/31/24 | 144,812 | ||||
199,590(e)(i)+ | Lorenz Re 2019, 6/30/23 | 2,974 | ||||
300,000(h)+ | Merion Re 2018-2, 12/31/24 | 22,766 | ||||
294,125(e)(h)+ | Pangaea Re 2019-3, 7/1/23 | 10,580 | ||||
10,000(h)+ | Sector Re V, 12/1/24 (144A) | 17,236 | ||||
253,645(e)(h)+ | Woburn Re 2018, 12/31/24 | 5,600 | ||||
244,914(e)(h)+ | Woburn Re 2019, 12/31/24 | 42,390 | ||||
$253,249 | ||||||
Total Reinsurance Sidecars | $253,674 | |||||
Total Insurance-Linked Securities (Cost $1,553,788) |
$1,433,880 | |||||
Shares | Value | |||||
SHORT TERM INVESTMENTS — 6.4% of Net Assets |
||||||
Open-End Fund — 6.4% | ||||||
7,671,248(j) | Dreyfus Government Cash Management, Institutional Shares, 4.99% |
$ 7,671,248 | ||||
$7,671,248 | ||||||
TOTAL SHORT TERM INVESTMENTS (Cost $7,671,248) |
$7,671,248 | |||||
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS — 151.3% (Cost $200,229,321) |
$182,723,336 | |||||
OTHER ASSETS AND LIABILITIES — (51.3)% | $(61,915,881) | |||||
net assets — 100.0% | $120,807,455 | |||||
bps | Basis Points. |
FREMF | Freddie Mac Multifamily Fixed-Rate Mortgage Loans. |
LIBOR | London Interbank Offered Rate. |
SOFR | Secured Overnight Financing Rate. |
SOFR30A | Secured Overnight Financing Rate 30 Day Average. |
(144A) | The resale of such security is exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold normally to qualified institutional buyers. At May 31, 2023, the value of these securities amounted to $21,549,085, or 17.8% of net assets. |
(a) | Floating rate note. Coupon rate, reference index and spread shown at May 31, 2023. |
(b) | Security is in default. |
(c) | This term loan will settle after May 31, 2023, at which time the interest rate will be determined. |
(d) | All or a portion of this position has not settled. Full contract rates do not take effect until settlement date. |
(e) | Non-income producing security. |
(f) | Security is perpetual in nature and has no stated maturity date. |
(g) | The interest rate is subject to change periodically. The interest rate and/or reference index and spread shown at May 31, 2023. |
(h) | Issued as participation notes. |
(i) | Issued as preference shares. |
(j) | Rate periodically changes. Rate disclosed is the 7-day yield at May 31, 2023. |
* | Senior secured floating rate loan interests in which the Fund invests generally pay interest at rates that are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as LIBOR or SOFR, (ii) the prime rate offered by one or more major United States banks, (iii) the rate of a certificate of deposit or (iv) other base lending rates used by commercial lenders. The interest rate shown is the rate accruing at May 31, 2023. |
† | Amount rounds to less than 0.1%. |
+ | Security is valued using significant unobservable inputs (Level 3). |
# | Securities are restricted as to resale. |
Restricted Securities | Acquisition date | Cost | Value |
Alturas Re 2020-2 | 1/1/2020 | $26,314 | $1,321 |
Alturas Re 2022-2 | 4/11/2023 | 4,620 | 5,570 |
Berwick Re 2019-1 | 12/31/2018 | 108,488 | 144,812 |
Cape Lookout Re | 3/16/2022 | 250,000 | 234,200 |
Commonwealth Re | 6/15/2022 | 250,000 | 244,825 |
Formby Re 2018 | 7/9/2018 | 776 | 8,006 |
Harambee Re 2018 | 12/19/2017 | 5,311 | — |
Harambee Re 2019 | 12/20/2018 | — | 425 |
Limestone Re 2019-2 | 6/20/2018 | 230 | — |
Lorenz Re 2019 | 6/26/2019 | 38,251 | 2,974 |
Matterhorn Re | 3/10/2022 | 250,000 | 233,100 |
Merion Re 2018-2 | 12/28/2017 | — | 22,766 |
Pangaea Re 2019-3 | 7/25/2019 | 8,824 | 10,580 |
Residential Re | 10/28/2021 | 250,000 | 223,275 |
Sanders Re III | 3/22/2022 | 250,000 | 236,800 |
Sector Re V | 1/1/2020 | 289 | 17,236 |
Woburn Re 2018 | 3/20/2018 | 76,754 | 5,600 |
Woburn Re 2019 | 1/30/2019 | 33,931 | 42,390 |
Total Restricted Securities | $1,433,880 | ||
% of Net assets | 1.2% |
Currency Purchased |
In Exchange for |
Currency Sold |
Deliver | Counterparty | Settlement Date |
Unrealized (Depreciation) |
USD | 373,478 | MXN | 6,980,000 | State Street Bank & Trust Co. | 6/29/23 | $(18,594) |
TOTAL FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS | $(18,594) |
MXN | — Mexican Peso |
USD | — United States Dollar |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $1,209,112 |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (19,096,477) |
Net unrealized depreciation | $(17,887,365) |
Level 1 | – | unadjusted quoted prices in active markets for identical securities. |
Level 2 | – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). See Notes to Financial Statements — Note 1A. |
Level 3 | – | significant unobservable inputs (including the Adviser's own assumptions in determining fair value of investments). See Notes to Financial Statements — Note 1A. |
Level 1 | Level 2 | Level 3 | Total | |
Senior Secured Floating Rate Loan Interests | $— | $151,861,209 | $— | $151,861,209 |
Common Stock | 459,992 | — | — | 459,992 |
Asset Backed Securities | — | 3,546,441 | — | 3,546,441 |
Collateralized Mortgage Obligations | — | 2,966,677 | — | 2,966,677 |
Commercial Mortgage-Backed Securities | — | 1,586,024 | — | 1,586,024 |
Corporate Bonds | — | 13,127,607 | — | 13,127,607 |
Preferred Stock | 70,258 | — | — | 70,258 |
Insurance-Linked Securities | ||||
Collateralized Reinsurance | ||||
Multiperil – Worldwide | — | — | — | — |
Windstorm – Florida | — | — | 8,006 | 8,006 |
Reinsurance Sidecars | ||||
Multiperil – U.S. | — | — | 425 | 425 |
Multiperil – Worldwide | — | — | 253,249 | 253,249 |
Level 1 | Level 2 | Level 3 | Total | |
All Other Insurance-Linked Securities | $— | $1,172,200 | $— | $1,172,200 |
Open-End Fund | 7,671,248 | — | — | 7,671,248 |
Total Investments in Securities | $8,201,498 | $174,260,158 | $261,680 | $182,723,336 |
Other Financial Instruments | ||||
Credit Agreement(a) | $— | $(58,700,000) | $— | $(58,700,000) |
Net unrealized depreciation on forward foreign currency exchange contracts | — | (18,594) | — | (18,594) |
Total Other Financial Instruments | $— | $(58,718,594) | $— | $(58,718,594) |
(a) | The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes. |
ASSETS: | |
Investments in unaffiliated issuers, at value (cost $200,229,321) | $182,723,336 |
Cash | 461,935 |
Receivables — | |
Investment securities sold | 2,211,462 |
Interest | 1,341,428 |
Other assets | 2,302 |
Total assets | $186,740,463 |
LIABILITIES: | |
Payables — | |
Credit agreement | $58,700,000 |
Investment securities purchased | 6,983,009 |
Directors' fees | 1,436 |
Interest expense | 20,097 |
Unrealized depreciation on unfunded loan commitments | 5,870 |
Unrealized depreciation on forward foreign currency exchange contracts | 18,594 |
Management fees | 20,675 |
Administrative expenses | 17,337 |
Accrued expenses | 165,990 |
Total liabilities | $65,933,008 |
NET ASSETS: | |
Paid-in capital | $207,782,680 |
Distributable earnings (loss) | (86,975,225) |
Net assets | $120,807,455 |
NET ASSET VALUE PER SHARE: | |
No par value | |
Based on $120,807,455/12,374,933 shares | $9.76 |
INVESTMENT INCOME: | ||
Interest from unaffiliated issuers | $9,005,464 | |
Dividends from unaffiliated issuers | 191,436 | |
Total Investment Income | $9,196,900 | |
EXPENSES: | ||
Management fees | $635,951 | |
Administrative expenses | 30,335 | |
Transfer agent fees | 8,650 | |
Stockholder communications expense | 10,865 | |
Custodian fees | 7,990 | |
Professional fees | 68,002 | |
Printing expense | 9,865 | |
Officers' and Directors' fees | 4,541 | |
Interest expense | 1,644,400 | |
Miscellaneous | 90,693 | |
Total expenses | $2,511,292 | |
Net investment income | $6,685,608 | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||
Net realized gain (loss) on: | ||
Investments in unaffiliated issuers | $(1,718,071) | |
Forward foreign currency exchange contracts | (70,046) | |
Other assets and liabilities denominated in foreign currencies | 3,266 | $(1,784,851) |
Change in net unrealized appreciation (depreciation) on: | ||
Investments in unaffiliated issuers | $(53,753) | |
Forward foreign currency exchange contracts | 15,526 | |
Unfunded loan commitments | 8,587 | $(29,640) |
Net realized and unrealized gain (loss) on investments | $(1,814,491) | |
Net increase in net assets resulting from operations | $4,871,117 |
Six Months Ended 5/31/23 (unaudited) |
Year Ended 11/30/22 | |
FROM OPERATIONS: | ||
Net investment income (loss) | $6,685,608 | $10,226,471 |
Net realized gain (loss) on investments | (1,784,851) | (793,192) |
Change in net unrealized appreciation (depreciation) on investments | (29,640) | (21,085,844) |
Net increase (decrease) in net assets resulting from operations | $4,871,117 | $(11,652,565) |
DISTRIBUTIONS TO STOCKHOLDERS: | ||
($0.52 and $0.75 per share, respectively) | $(6,434,965) | $(9,250,058) |
Total distributions to stockholders | $(6,434,965) | $(9,250,058) |
FROM FUND SHARE TRANSACTIONS: | ||
Reinvestment of distributions | $— | $41,061 |
Net increase in net assets resulting from Fund share transactions | $— | $41,061 |
Net decrease in net assets | $(1,563,848) | $(20,861,562) |
NET ASSETS: | ||
Beginning of period | $122,371,303 | $143,232,865 |
End of period | $120,807,455 | $122,371,303 |
Six Months Ended 5/31/23 Shares (unaudited) |
Six Months Ended 5/31/23 Amount (unaudited) |
Year Ended 11/30/22 Shares |
Year Ended 11/30/22 Amount | |
FUND SHARE TRANSACTIONS | ||||
Shares sold | — | $— | — | $— |
Reinvestment of distributions | — | — | 3,550 | 41,061 |
Less shares repurchased through tender offer (Note 10) | — | — | — | — |
Net increase | — | $— | 3,550 | $41,061 |
Cash Flows From Operating Activities | |
Net increase in net assets resulting from operations | $4,871,117 |
Adjustments to reconcile net decrease in net assets resulting from operations to net cash: | |
Purchases of investment securities | $(28,019,948) |
Proceeds from disposition and maturity of investment securities | 30,782,993 |
Net purchases of short term investments | (2,021,793) |
Net accretion and amortization of discount/premium on investment securities | (445,536) |
Net realized loss on investments in unaffiliated issuers | 1,718,071 |
Change in unrealized depreciation on investments in unaffiliated issuers | 53,753 |
Change in unrealized appreciation on forward foreign currency exchange contracts | (15,526) |
Increase in interest receivable | (62,016) |
Increase in other assets | (554) |
Increase in management fees payable | 3,314 |
Decrease in directors' fees payable | (166) |
Increase in administrative expenses payable | 1,165 |
Decrease in accrued expenses payable | (19,610) |
Change in unrealized depreciation on unfunded loan commitments | (8,587) |
Net cash from operating activities | $6,836,677 |
Cash Flows Used In Financing Activities: | |
Increase in interest expense payable | 4,231 |
Distributions to stockholders | (6,434,965) |
Net cash flows used in financing activities | $(6,430,734) |
NET INCREASE (DECREASE) IN CASH, RESTRICTED CASH AND FOREIGN CURRENCIES | $405,943 |
Cash, Restricted Cash and Foreign Currencies: | |
Beginning of period* | $55,992 |
End of period | $461,935 |
Cash Flow Information: | |
Cash paid for interest | $1,640,169 |
* | The following table provides a reconciliation of cash, restricted cash and foreign currencies reported in the Statement of Assets and Liabilities that sum to the total of the same such amounts shown in the Statement of Cash Flows: |
Six Months Ended 5/31/23 |
Year Ended 11/30/22 | |
Cash | $461,935 | $55,992 |
Total cash, restricted cash and foreign currencies shown in the Statement of Cash Flows | $461,935 | $55,992 |
Six Months Ended 5/31/23 (unaudited) |
Year Ended 11/30/22 |
Year Ended 11/30/21 |
Year Ended 11/30/20 |
Year Ended 11/30/19 |
Year Ended 11/30/18 | |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $9.89 | $11.58 | $11.17 | $11.83 | $12.04 | $12.42 |
Increase (decrease) from investment operations:(a) | ||||||
Net investment income (loss) | $0.54 | $0.83 | $0.73 | $0.68 | $0.73 | $0.74 |
Net realized and unrealized gain (loss) on investments | (0.15) | (1.77) | 0.24 | (0.60) | (0.20) | (0.40) |
Net increase (decrease) from investment operations | $0.39 | $(0.94) | $0.97 | $0.08 | $0.53 | $0.34 |
Accretion to net asset value due to tender offer | — | — | 0.17(b) | — | — | — |
Distributions to stockholders: | ||||||
Net investment income and previously undistributed net investment income | $(0.52) | $(0.75) | $(0.70) | $(0.74)(c) | $(0.74)(c) | $(0.72) |
Tax return of capital | — | — | (0.03) | — | — | — |
Total distributions | $(0.52) | $(0.75) | $(0.73) | $(0.74) | $(0.74) | $(0.72) |
Net increase (decrease) in net asset value | $(0.13) | $(1.69) | $0.41 | $(0.66) | $(0.21) | $(0.38) |
Net asset value, end of period | $9.76 | $9.89 | $11.58 | $11.17 | $11.83 | $12.04 |
Market value end of period | $8.41 | $8.99 | $11.90 | $10.73 | $10.53 | $10.40 |
Total return at net asset value(d) | 4.66%(e) | (7.72)% | 10.54% | 1.89% | 5.38% | 3.34% |
Total return at market value(d) | (0.78)%(e) | (18.38)% | 18.25% | 9.96% | 8.59% | (3.34)% |
Ratios to average net assets of stockholders: | ||||||
Total expenses plus interest expense(f) | 4.08%(g) | 2.45% | 1.97% | 2.58% | 2.90% | 2.56% |
Net investment income available to stockholders | 10.86%(g) | 7.70% | 6.25% | 6.26% | 6.08% | 5.98% |
Portfolio turnover rate | 17%(e) | 23% | 51% | 73% | 48% | 34% |
Net assets, end of period (in thousands) | $120,807 | $122,371 | $143,233 | $276,234 | $292,730 | $297,903 |
Ratios with no waiver of fees and assumption of expenses by the Adviser and no reduction for fees paid indirectly: | ||||||
Total expenses to average net assets | 4.08%(g) | 2.45% | 1.97% | 2.58% | 2.90% | 2.56% |
Net investment income (loss) to average net assets | 10.86%(g) | 7.70% | 6.25% | 6.26% | 6.08% | 5.98% |
Total amount of debt outstanding (in thousands) | $58,700 | $58,700 | $69,450 | $105,450 | $139,450 | $143,450 |
Six Months Ended 5/31/23 (unaudited) |
Year Ended 11/30/22 |
Year Ended 11/30/21 |
Year Ended 11/30/20 |
Year Ended 11/30/19 |
Year Ended 11/30/18 | |
Asset coverage per $1,000 of indebtedness | $3,058 | $3,085 | $3,062 | $3,620 | $3,099 | $3,077 |
(a) | The common share data presented above is based on the average shares outstanding for the period presented. |
(b) | See Notes to the Financial Statements Note 10. for additional information. |
(c) | The amount of distributions made to stockholders during the year was in excess of the net investment income earned by the Fund during the year. The Fund has accumulated undistributed net investment income which is part of the Fund’s net asset value (“NAV”). A portion of the accumulated net investment income was distributed to stockholders during the year. |
(d) | Total investment return is calculated assuming a purchase of common shares at the current net asset value or market value on the first day and a sale at the current net asset value or market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. |
(e) | Not annualized. |
(f) | Includes interest expense of 2.67%, 1.11%, 0.47%, 0.70%, 1.60% and 1.35%, respectively. |
(g) | Annualized. |
A. | Security Valuation |
The net asset value of the Fund is computed once daily, on each day the New York Stock Exchange (“NYSE”) is open, as of the close of regular trading on the NYSE. | |
Loan interests are valued at the mean between the last available bid and asked prices from one or more brokers or dealers as obtained from Loan Pricing Corporation, an independent third party pricing service. If price information is not available from Loan Pricing Corporation, or if the price information is deemed to be unreliable, price information will be obtained from an alternative loan interest pricing service. If no reliable price quotes are available from either the primary or alternative pricing service, broker quotes will be solicited. | |
Fixed-income securities are valued by using prices supplied by independent pricing services, which consider such factors as market prices, market events, quotations from one or more brokers, Treasury spreads, yields, maturities and ratings, or may use a pricing matrix or other fair value methods or techniques to provide an estimated value of the security or instrument. A pricing matrix is a means of valuing a debt security on the basis of current market prices for other debt securities, historical trading patterns in the market for fixed-income securities and/or other factors. Non-U.S. debt securities that are listed on an exchange will be valued at the bid price obtained from an independent third party pricing service. When independent third party pricing services are unable to supply prices, or when prices or market quotations are considered to be unreliable, the value of that security may be determined using quotations from one or more broker-dealers. |
Event-linked bonds are valued at the bid price obtained from an independent third party pricing service. Other insurance-linked securities (including reinsurance sidecars, collateralized reinsurance and industry loss warranties) may be valued at the bid price obtained from an independent pricing service, or through a third party using a pricing matrix, insurance valuation models, or other fair value methods or techniques to provide an estimated value of the instrument. | |
Equity securities that have traded on an exchange are valued by using the last sale price on the principal exchange where they are traded. Equity securities that have not traded on the date of valuation, or securities for which sale prices are not available, generally are valued using the mean between the last bid and asked prices or, if both last bid and asked prices are not available, at the last quoted bid price. Last sale and bid and asked prices are provided by independent third party pricing services. In the case of equity securities not traded on an exchange, prices are typically determined by independent third party pricing services using a variety of techniques and methods. | |
Forward foreign currency exchange contracts are valued daily using the foreign exchange rate or, for longer term forward contract positions, the spot currency rate and the forward points on a daily basis, in each case provided by a third party pricing service. Contracts whose forward settlement date falls between two quoted days are valued by interpolation. | |
Shares of open-end registered investment companies (including money market mutual funds) are valued at such funds’ net asset value. | |
Securities or loan interests for which independent pricing services or broker-dealers are unable to supply prices or for which market prices and/or quotations are not readily available or are considered to be unreliable are valued by a fair valuation team comprised of certain personnel of the Adviser. The Adviser is designated as the valuation designee for the Fund pursuant to Rule 2a-5 under the 1940 Act. The Adviser’s fair valuation team is responsible for monitoring developments that may impact fair valued securities. | |
Inputs used when applying fair value methods to value a security may include credit ratings, the financial condition of the company, current market conditions and comparable securities. The Adviser may use fair value methods if it is determined that a significant event has occurred after the close of the exchange or market on which the security trades and prior to the determination of the Fund's net asset value. Examples of a significant event might include political or economic news, corporate restructurings, natural disasters, terrorist activity or trading |
halts. Thus, the valuation of the Fund's securities may differ significantly from exchange prices, and such differences could be material. | |
B. | Investment Income and Transactions |
Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as the Fund becomes aware of the ex-dividend data in the exercise of reasonable diligence. | |
Interest income, including interest on income-bearing cash accounts, is recorded on the accrual basis. Dividend and interest income are reported net of unrecoverable foreign taxes withheld at the applicable country rates and net of income accrued on defaulted securities. | |
Interest and dividend income payable by delivery of additional shares is reclassified as PIK (payment-in-kind) income upon receipt and is included in interest and dividend income, respectively. | |
Principal amounts of mortgage-backed securities are adjusted for monthly paydowns. Premiums and discounts related to certain mortgage-backed securities are amortized or accreted in proportion to the monthly paydowns. All discounts/premiums on purchase prices of debt securities are accreted/amortized for financial reporting purposes over the life of the respective securities, and such accretion/amortization is included in interest income. | |
Security transactions are recorded as of trade date. Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes. | |
C. | Foreign Currency Translation |
The books and records of the Fund are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars using current exchange rates. | |
Net realized gains and losses on foreign currency transactions, if any, represent, among other things, the net realized gains and losses on foreign currency exchange contracts, disposition of foreign currencies and the difference between the amount of income accrued and the U.S. dollars actually received. Further, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statement of Operations from the effects of changes in the market prices of those securities, but are included with the net realized and unrealized gain or loss on investments. |
D. | Federal Income Taxes |
It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net taxable income and net realized capital gains, if any, to its stockholders. Therefore, no provision for federal income taxes is required. As of May 31, 2023, the Fund did not accrue any interest or penalties with respect to uncertain tax positions, which, if applicable, would be recorded as an income tax expense on the Statement of Operations. Tax returns filed within the prior three years remain subject to examination by federal and state tax authorities. | |
The amount and character of income and capital gain distributions to stockholders are determined in accordance with federal income tax rules, which may differ from U.S. GAAP. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes. Capital accounts within the financial statements are adjusted for permanent book/tax differences to reflect tax character, but are not adjusted for temporary differences. | |
The tax character of current year distributions payable will be determined at the end of the current taxable year. The tax character of distributions paid during the year ended November 30, 2022 was as follows: |
2022 | |
Distributions paid from: | |
Ordinary income | $9,250,058 |
Total | $9,250,058 |
2022 | |
Distributable earnings/(losses): | |
Undistributed ordinary income | $239,639 |
Capital loss carryforward | (67,787,421) |
Net unrealized depreciation | (17,863,595) |
Total | $(85,411,377) |
E. | Risks |
The value of securities held by the Fund may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, recessions, the spread of infectious illness or other public health issues, inflation, changes in interest rates, armed conflict including Russia's military invasion of Ukraine, sanctions against Russia, other nations or individuals or companies and possible countermeasures, lack of liquidity in the bond markets or adverse investor sentiment. In the past several years, financial markets have experienced increased volatility, depressed valuations, decreased liquidity and heightened uncertainty. These conditions may continue, recur, worsen or spread. Inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the Fund's investments and negatively impact the Fund's performance. | |
The global pandemic of the novel coronavirus respiratory disease designated COVID-19 has resulted in major disruption to economies and markets around the world, including the United States. Global financial markets have experienced extreme volatility and severe losses, and trading in many instruments has been disrupted. Liquidity for many instruments has been greatly reduced for periods of time. Some sectors of the economy and individual issuers have experienced particularly large losses. These circumstances may continue to affect adversely the value and liquidity of the Fund’s investments. Following Russia’s invasion of Ukraine, Russian securities have lost all, or nearly all, their market value. Other securities or markets could be similarly affected by past or future geopolitical or other events or conditions. | |
Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time. | |
The U.S. and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the U.S. has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the U.S. and its trading partners, as well as companies directly or indirectly affected and |
financial markets generally. If the political climate between the U.S. and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Fund's assets may go down. | |
At times, the Fund’s investments may represent industries or industry sectors that are interrelated or have common risks, making the Fund more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors. | |
The market prices of the Fund's fixed income securities may fluctuate significantly when interest rates change. The value of your investment will generally go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities. For example, if interest rates increase by 1%, the value of a Fund's portfolio with a portfolio duration of ten years would be expected to decrease by 10%, all other things being equal. In recent years interest rates and credit spreads in the U.S. have been at historic lows. The U.S. Federal Reserve has raised certain interest rates, and interest rates may continue to go up. A general rise in interest rates could adversely affect the price and liquidity of fixed income securities. The maturity of a security may be significantly longer than its effective duration. A security's maturity and other features may be more relevant than its effective duration in determining the security's sensitivity to other factors affecting the issuer or markets generally, such as changes in credit quality or in the yield premium that the market may establish for certain types of securities (sometimes called "credit spread"). In general, the longer its maturity the more a security may be susceptible to these factors. When the credit spread for a fixed income security goes up, or "widens," the value of the security will generally go down. | |
If an issuer or guarantor of a security held by the Fund or a counterparty to a financial contract with the Fund defaults on its obligation to pay principal and/or interest, has its credit rating downgraded or is perceived to be less creditworthy, or the credit quality or value of any underlying assets declines, the value of your investment will typically decline. Changes in actual or perceived creditworthiness may occur quickly. The Fund could be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty. | |
The Fund’s investments in foreign markets and countries with limited developing markets may subject the Fund to a greater degree of risk than investments in a developed market. These risks include disruptive |
political or economic conditions, military conflicts and sanctions, terrorism, sustained economic downturns, financial instability, reduction of government or central bank support, inadequate accounting standards, tariffs, tax disputes or other tax burdens, nationalization or expropriation of assets, and the imposition of adverse governmental laws, arbitrary application of laws and regulations or lack of rule of law, or currency exchange restrictions. Lack of information and less market regulation also may affect the value of these securities. Withholding and other non-U.S. taxes may decrease the Fund's return. Non-U.S. issuers may be located in parts of the world that have historically been prone to natural disasters. Investing in depositary receipts is subject to many of the same risks as investing directly in non-U.S. issuers. Depositary receipts may involve higher expenses and may trade at a discount (or premium) to the underlying security. | |
Russia launched a large-scale invasion of Ukraine on February 24, 2022. In response to the military action by Russia, various countries, including the U.S., the United Kingdom, and European Union issued broad-ranging economic sanctions against Russia and Belarus and certain companies and individuals. Since then, Russian securities have lost all, or nearly all, their market value, and many other issuers, securities and markets have been adversely affected. The United States and other countries may impose sanctions on other countries, companies and individuals in light of Russia’s military invasion. The extent and duration of the impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted. These and any related events could have a significant impact on the value and liquidity of certain Fund investments, on Fund performance and the value of an investment in the Fund, particularly with respect to securities and commodities, such as oil, natural gas and food commodities, as well as other sectors with exposure to Russian issuers or issuers in other countries affected by the invasion, and are likely to have collateral impacts on market sectors globally. | |
The Fund invests primarily in floating rate loans and other floating rate investments. Floating rate loans typically are rated below investment grade. Debt securities rated below-investment-grade are commonly referred to as “junk bonds” and are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. Below investment grade securities, including floating rate loans, involve greater risk of loss, are subject to greater price volatility, and may be less liquid and more difficult to value, especially during periods of economic uncertainty or change, than higher rated debt securities. |
Under normal market conditions, the Fund seeks to achieve its investment objectives by investing at least 80% of its assets (net assets plus borrowings for investment purposes) in senior floating rate loans. For purposes of the Fund’s investment policies, senior floating rate loans include funds that invest primarily in senior floating rate loans. Floating rate loans and similar investments may be illiquid or less liquid than other investments and difficult to value. Market quotations for these securities may be volatile and/or subject to large spreads between bid and ask prices. | |
Certain securities in which the Fund invests, including floating rate loans, once sold, may not settle for an extended period (for example, several weeks or even longer). The Fund will not receive its sale proceeds until that time, which may constrain the Fund’s ability to meet its obligations. The Fund may invest in securities of issuers that are in default or that are in bankruptcy. The value of collateral, if any, securing a floating rate loan can decline or may be insufficient to meet the issuer’s obligations or may be difficult to liquidate. No active trading market may exist for many floating rate loans, and many loans are subject to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended settlement periods. There is less readily available, reliable information about most floating rate loans than is the case for many other types of securities. Normally, the Adviser will seek to avoid receiving material, nonpublic information about the issuer of a loan either held by, or considered for investment by, the Fund, and this decision could adversely affect the Fund’s investment performance. Loans may not be considered “securities,” and purchasers, such as the Fund, therefore may not be entitled to rely on the anti-fraud protections afforded by federal securities laws. | |
The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR (London Interbank Offered Rate) or SOFR (Secured Overnight Financing Rate). ICE Benchmark Administration, the administrator of LIBOR, has ceased publication of most LIBOR settings on a representative basis and is expected to cease publication of the remaining U.S. dollar LIBOR settings on a representative basis after September 30, 2024. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. In the U.S., the recommended benchmark replacement is based on the SOFR published by the Federal Reserve Bank of New York, including certain spread adjustments and benchmark replacement conforming changes. Various financial groups have been |
planning for the transition away from LIBOR, but there remains uncertainty regarding the impact of the transition from LIBOR on the Fund's transactions and financial markets generally. The transition away from LIBOR may involve, among other things, increased volatility or illiquidity in markets for instruments that rely on LIBOR and may adversely affect the Fund's performance. The transition may also result in a reduction in the value of certain LIBOR-based investments held by the Fund or reduce the effectiveness of related transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses for the Fund. Because the usefulness of LIBOR as a benchmark may deteriorate during the transition period, these effects could occur at any time. | |
The Fund is not limited in the percentage of its assets that may be invested in illiquid securities. Illiquid securities are securities that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the securities. | |
With the increased use of technologies such as the Internet to conduct business, the Fund is susceptible to operational, information security and related risks. While the Fund’s Adviser has established business continuity plans in the event of, and risk management systems to prevent, limit or mitigate, such cyber-attacks, there are inherent limitations in such plans and systems, including the possibility that certain risks have not been identified. Furthermore, the Fund cannot control the cybersecurity plans and systems put in place by service providers to the Fund such as the Fund’s custodian and accounting agent, and the Fund’s transfer agent. In addition, many beneficial owners of Fund shares hold them through accounts at broker-dealers, retirement platforms and other financial market participants over which neither the Fund nor the Adviser exercises control. Each of these may in turn rely on service providers to them, which are also subject to the risk of cyberattacks. Cybersecurity failures or breaches at the Adviser or the Fund’s service providers or intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, interference with the Fund’s ability to calculate its net asset value, impediments to trading, the inability of Fund stockholders to effect share purchases, or sales or receive distributions, loss of or unauthorized access to private stockholder information and violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, or additional compliance costs. Such costs and losses may not be covered under any insurance. In addition, maintaining |
F. | Restricted Securities |
Restricted Securities are subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. | |
Disposal of restricted investments may involve negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Fund at May 31, 2023 are listed in the Schedule of Investments. | |
G. | Insurance-Linked Securities (“ILS”) |
The Fund invests in ILS. The Fund could lose a portion or all of the principal it has invested in an ILS, and the right to additional interest or dividend payments with respect to the security, upon the occurrence of one or more trigger events, as defined within the terms of an insurance-linked security. Trigger events, generally, are hurricanes, earthquakes, or other natural events of a specific size or magnitude that occur in a designated geographic region during a specified time period, and/or that involve losses or other metrics that exceed a specific amount. There is no way to accurately predict whether a trigger event will occur, and accordingly, ILS carry significant risk. The Fund is entitled to receive principal, and interest and/or dividend payments so long as no trigger event occurs of the description and magnitude specified by the instrument. In addition to the specified trigger events, ILS may expose the Fund to other risks, including but not limited to issuer (credit) default, adverse regulatory or jurisdictional interpretations and adverse tax consequences. | |
The Fund’s investments in ILS may include event-linked bonds. ILS also may include special purpose vehicles (“SPVs”) or similar instruments structured to comprise a portion of a reinsurer’s catastrophe-oriented business, known as quota share instruments (sometimes referred to as reinsurance sidecars), or to provide reinsurance relating to specific risks to insurance or reinsurance companies through a collateralized instrument, known as collateralized reinsurance. Structured reinsurance investments also may include industry loss warranties (“ILWs”). A traditional ILW takes the form of a bilateral reinsurance contract, but |
there are also products that take the form of derivatives, collateralized structures, or exchange-traded instruments. | |
Where the ILS are based on the performance of underlying reinsurance contracts, the Fund has limited transparency into the individual underlying contracts, and therefore must rely upon the risk assessment and sound underwriting practices of the issuer. Accordingly, it may be more difficult for the Adviser to fully evaluate the underlying risk profile of the Fund’s structured reinsurance investments, and therefore the Fund’s assets are placed at greater risk of loss than if the Adviser had more complete information. Structured reinsurance instruments generally will be considered illiquid securities by the Fund. These securities may be difficult to purchase, sell or unwind. Illiquid securities also may be difficult to value. If the Fund is forced to sell an illiquid asset, the Fund may be forced to sell at a loss. | |
H. | Automatic Dividend Reinvestment Plan |
All stockholders whose shares are registered in their own names automatically participate in the Automatic Dividend Reinvestment Plan (the "Plan"), under which participants receive all dividends and capital gain distributions (collectively, dividends) in full and fractional shares of the Fund in lieu of cash. Stockholders may elect not to participate in the Plan. Stockholders not participating in the Plan receive all dividends and capital gain distributions in cash. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notifying American Stock Transfer & Trust Company, the agent for stockholders in administering the Plan (the "Plan Agent"), in writing prior to any dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution. | |
If a stockholder's shares are held in the name of a brokerage firm, bank or other nominee, the stockholder can ask the firm or nominee to participate in the Plan on the stockholder's behalf. If the firm or nominee does not offer the Plan, dividends will be paid in cash to the stockholder of record. A firm or nominee may reinvest a stockholder's cash dividends in shares of the Fund on terms that differ from the terms of the Plan. | |
Whenever the Fund declares a dividend on shares payable in cash, participants in the Plan will receive the equivalent in shares acquired by the Plan Agent either (i) through receipt of additional unissued but authorized shares from the Fund or (ii) by purchase of outstanding shares on the NYSE or elsewhere. If, on the payment date for any dividend, the net asset value per share is equal to or less than the |
market price per share plus estimated brokerage trading fees (market premium), the Plan Agent will invest the dividend amount in newly issued shares. The number of newly issued shares to be credited to each account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current market price per share on the date of issuance does not exceed 5%. If, on the payment date for any dividend, the net asset value per share is greater than the market value (market discount), the Plan Agent will invest the dividend amount in shares acquired in open-market purchases. There are no brokerage charges with respect to newly issued shares. However, each participant will pay a pro rata share of brokerage trading fees incurred with respect to the Plan Agent's open-market purchases. Participating in the Plan does not relieve stockholders from any federal, state or local taxes which may be due on dividends paid in any taxable year. Stockholders holding Plan shares in a brokerage account may be able to transfer the shares to another broker and continue to participate in the Plan. | |
I. | Statement of Cash Flows |
Information on financial transactions which have been settled through the receipt or disbursement of cash or restricted cash is presented in the Statement of Cash Flows. Cash as presented in the Fund's Statement of Assets and Liabilities includes cash on hand at the Fund's custodian bank and does not include any short-term investments. As of and for the six months ended May 31, 2023, the Fund had no restricted cash presented on the Statement of Assets and Liabilities. | |
J. | Forward Foreign Currency Exchange Contracts |
The Fund may enter into forward foreign currency exchange contracts ("contracts") for the purchase or sale of a specific foreign currency at a fixed price on a future date. All contracts are marked-to-market daily at the applicable exchange rates, and any resulting unrealized appreciation or depreciation is recorded in the Fund's financial statements. The Fund records realized gains and losses at the time a contract is offset by entry into a closing transaction or extinguished by delivery of the currency. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of the contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar (see Note 6). | |
During the six months ended May 31, 2023, the Fund had entered into various forward foreign currency exchange contracts that obligated the |
Fund to deliver or take delivery of currencies at specified future maturity dates. Alternatively, prior to the settlement date of a forward foreign currency exchange contract, the Fund may close out such contract by entering into an offsetting contract. | |
The average market value of forward foreign currency exchange contracts open during the six months ended May 31, 2023 was $126,631 and $624,486 for buys and sells, respectively. Open forward foreign currency exchange contracts outstanding at May 31, 2023 are listed in the Schedule of Investments. |
Counterparty | Derivative Assets Subject to Master Netting Agreement |
Derivatives Available for Offset |
Non-Cash Collateral Received (a) |
Cash Collateral Received (a) |
Net Amount of Derivative Assets (b) |
State Street Bank & Trust Co. | $— | $— | $— | $— | $— |
Total | $— | $— | $— | $— | $— |
Counterparty | Derivative Liabilities Subject to Master Netting Agreement |
Derivatives Available for Offset |
Non-Cash Collateral Received (a) |
Cash Collateral Received (a) |
Net Amount of Derivative Assets (b) |
State Street Bank & Trust Co. | $(18,594) | $— | $— | $— | $(18,594) |
Total | $(18,594) | $— | $— | $— | $(18,594) |
Statement of Assets and Liabilities |
Interest Rate Risk |
Credit Risk |
Foreign Exchange Rate Risk |
Equity Risk |
Commodity Risk |
Liabilities | |||||
Unrealized depreciation on forward foreign currency exchange contracts | $— | $— | $18,594 | $— | $— |
Total Value | $— | $— | $18,594 | $— | $— |
Statement of Operations / Statement of Cash Flows | Interest Rate Risk |
Credit Risk |
Foreign Exchange Rate Risk |
Equity Risk |
Commodity Risk |
Net Realized Gain (Loss) on | |||||
Forward foreign currency exchange contracts | $— | $— | $(70,046) | $— | $— |
Total Value | $— | $— | $(70,046) | $— | $— |
Change in Net Unrealized Appreciation (Depreciation) on | |||||
Forward foreign currency exchange contracts | $— | $— | $15,526 | $— | $— |
Total Value | $— | $— | $15,526 | $— | $— |
Loan | Principal | Cost | Value | Unrealized Appreciation (Depreciation) |
athenahealth Group, Inc., Initial DDTL | $97,826 | $97,826 | $92,425 | $(5,401) |
Phoenix Services International LLC, Initial Term Loan | 11,729 | 11,729 | 11,260 | (469) |
Total Value | $109,555 | $109,555 | $103,685 | $(5,870) |
5/31/23 | 11/30/22 | |
Shares outstanding at beginning of period | 12,374,933 | 12,371,383 |
Shares outstanding at end of period | 12,374,933 | 12,374,933 |
You can call American Stock Transfer & Trust Company (AST) for: | |
Account Information | 1-800-710-0935 |
Or write to AST: | |
For | Write to |
General inquiries, lost dividend checks, American Stock change of address, lost stock certificates, Transfer & Trust stock transfer | American Stock Transfer & Trust Operations Center 6201 15th Ave. Brooklyn, NY 11219 |
Dividend reinvestment plan (DRIP) | American Stock Transfer & Trust Wall Street Station P.O. Box 922 New York, NY 10269-0560 |
Website | www.amstock.com |
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so.
The registrant has adopted, as of the end of the period covered by this report, a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and regulations;
(4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period covered by this report.
(d) If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from, a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller,
or persons performing similar functions and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item by posting such information on its Internet website, disclose the registrant’s Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, as an exhibit to its annual report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and disclose, in its most recent report on this Form N-CSR, its Internet address and the fact that it has posted such code of ethics on its Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to any person without charge, upon request, a copy of such code of ethics and explain the manner in which such request may be made. See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant’s Board of Directors has determined that the registrant either:
(i) Has at least one audit committee financial expert serving on its audit committee; or
(ii) Does not have an audit committee financial expert serving on its audit committee.
The registrant’s Board of Directors has determined that the registrant has at least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is “independent.” In order to be considered “independent” for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the Board of Directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or
(ii) Be an “interested person” of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Mr. Fred J. Ricciardi, an independent Director, is such an audit committee financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1) (ii) of this Item, it must explain why it does not have an audit committee financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of their outside auditors. Maintaining independence is a shared responsibility involving Amundi Asset Management US, Inc., the audit committee and the independent auditors.
The Funds recognize that a Fund’s independent auditors: 1) possess knowledge of the Funds, 2) are able to incorporate certain services into the scope of the audit, thereby avoiding redundant work, cost and disruption of Fund personnel and processes, and 3) have expertise that has value to the Funds. As a result, there are situations where it is desirable to use the Fund’s independent auditors for services in addition to the annual audit and where the potential for conflicts of interests are minimal. Consequently, this policy, which is intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and procedures to be followed by the Funds when retaining the independent audit firm to perform audit, audit-related tax and other services under those circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also constitute approval for any other Fund whose pre-approval is required pursuant to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services that may be provided consistently with Rule 210.2-01 may be approved by the Audit Committee itself and any pre-approval that may be waived in accordance with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund’s independent auditors and their compensation shall be determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY | ||||
SERVICE |
SERVICE CATEGORY DESCRIPTION |
SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES | ||
I. AUDIT SERVICES | Services that are directly related to performing the independent audit of the Funds | • Accounting research assistance
• SEC consultation, registration statements, and reporting
• Tax accrual related matters
• Implementation of new accounting standards
• Compliance letters (e.g. rating agency letters)
• Regulatory reviews and assistance regarding financial matters
• Semi-annual reviews (if requested)
• Comfort letters for closed end offerings | ||
II. AUDIT-RELATED SERVICES | Services which are not prohibited under Rule 210.2-01(C)(4) (the “Rule”) and are related extensions of the audit services support the audit, or use the knowledge/expertise gained from the audit procedures as a foundation to complete the project. In most cases, if the Audit-Related Services are not performed by the Audit firm, the scope of the Audit Services would likely increase. The Services are typically well-defined and governed by accounting professional standards (AICPA, SEC, etc.) | • AICPA attest and agreed-upon procedures
• Technology control assessments
• Financial reporting control assessments
• Enterprise security architecture assessment |
AUDIT COMMITTEE APPROVAL POLICY |
AUDIT COMMITTEE REPORTING POLICY | |
• “One-time” pre-approval for the audit period for all pre-approved specific service subcategories. Approval of the independent auditors as auditors for a Fund shall constitute pre approval for these services. |
• A summary of all such services and related fees reported at each regularly scheduled Audit Committee meeting. | |
• “One-time” pre-approval for the fund fiscal year within a specified dollar limit for all pre-approved specific service subcategories |
• A summary of all such services and related fees (including comparison to specified dollar limits) reported quarterly. |
• Specific approval is needed to exceed the pre-approved dollar limit for these services (see general Audit Committee approval policy below for details on obtaining specific approvals) |
||
• Specific approval is needed to use the Fund’s auditors for Audit-Related Services not denoted as “pre-approved”, or to add a specific service subcategory as “pre-approved” |
SECTION III - POLICY DETAIL, CONTINUED
SERVICE CATEGORY |
SERVICE CATEGORY DESCRIPTION |
SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES | ||
III. TAX SERVICES | Services which are not prohibited by the Rule, if an officer of the Fund determines that using the Fund’s auditor to provide these services creates significant synergy in the form of efficiency, minimized disruption, or the ability to maintain a desired level of confidentiality. | • Tax planning and support
• Tax controversy assistance
• Tax compliance, tax returns, excise tax returns and support
• Tax opinions |
AUDIT COMMITTEE APPROVAL POLICY |
AUDIT COMMITTEE REPORTING POLICY | |
• “One-time” pre-approval for the fund fiscal year within a specified dollar limit
• Specific approval is needed to exceed the pre-approved dollar limits for these services (see general Audit Committee approval policy below for details on obtaining specific approvals)
• Specific approval is needed to use the Fund’s auditors for tax services not denoted as pre-approved, or to add a specific service subcategory as “pre-approved” |
• A summary of all such services and related fees (including comparison to specified dollar limits) reported quarterly. |
SECTION III - POLICY DETAIL, CONTINUED
SERVICE CATEGORY |
SERVICE CATEGORY DESCRIPTION |
SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES | ||
IV. OTHER SERVICES
A. SYNERGISTIC, UNIQUE QUALIFICATIONS |
Services which are not prohibited by the Rule, if an officer of the Fund determines that using the Fund’s auditor to provide these services creates significant synergy in the form of efficiency, minimized disruption, the ability to maintain a desired level of confidentiality, or where the Fund’s auditors posses unique or superior qualifications to provide these services, resulting in superior value and results for the Fund. | • Business Risk Management support
• Other control and regulatory compliance projects |
AUDIT COMMITTEE APPROVAL POLICY |
AUDIT COMMITTEE REPORTING POLICY | |
• “One-time” pre-approval for the fund fiscal year within a specified dollar limit
• Specific approval is needed to exceed the pre-approved dollar limits for these services (see general Audit Committee approval policy below for details on obtaining specific approvals)
• Specific approval is needed to use the Fund’s auditors for “Synergistic” or “Unique Qualifications” Other Services not denoted as pre-approved to the left, or to add a specific service subcategory as “pre-approved” |
• A summary of all such services and related fees (including comparison to specified dollar limits) reported quarterly. |
SECTION III - POLICY DETAIL, CONTINUED
SERVICE CATEGORY |
SERVICE CATEGORY DESCRIPTION |
SPECIFIC PROHIBITED SERVICE SUBCATEGORIES | ||
PROHIBITED SERVICES | Services which result in the auditors losing independence status under the Rule. | 1. Bookkeeping or other services related to the accounting records or financial statements of the audit client*
2. Financial information systems design and implementation*
3. Appraisal or valuation services, fairness* opinions, or contribution-in-kind reports
4. Actuarial services (i.e., setting actuarial reserves versus actuarial audit work)*
5. Internal audit outsourcing services*
6. Management functions or human resources
7. Broker or dealer, investment advisor, or investment banking services
8. Legal services and expert services unrelated to the audit
9. Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible |
AUDIT COMMITTEE APPROVAL POLICY |
AUDIT COMMITTEE REPORTING POLICY | |
• These services are not to be performed with the exception of the(*) services that may be permitted if they would not be subject to audit procedures at the audit client (as defined in rule 2-01(f)(4)) level the firm providing the service. |
• A summary of all services and related fees reported at each regularly scheduled Audit Committee meeting will serve as continual confirmation that has not provided any restricted services. |
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
• | For all projects, the officers of the Funds and the Fund’s auditors will each make an assessment to determine that any proposed projects will not impair independence. |
• | Potential services will be classified into the four non-restricted service categories and the “Approval of Audit, Audit-Related, Tax and Other Services” Policy above will be applied. Any services outside the specific pre-approved service subcategories set forth above must be specifically approved by the Audit Committee. |
• | At least quarterly, the Audit Committee shall review a report summarizing the services by service category, including fees, provided by the Audit firm as set forth in the above policy. |
(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountants engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant for services rendered to the registrant, and rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrants investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
The Fund’s audit committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the Affiliates (as defined) that were not pre- approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire Board of Directors is acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in 210.1212 of Regulation S-X [17 CFR 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company’s investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company’s investment adviser, or any other third party, that the company uses, or that are used on the company’s behalf, to determine how to vote proxies relating to portfolio securities.
N/A
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR, provide the following information:
(1) State the name, title, and length of service of the person or persons employed by or associated with the registrant or an investment adviser of the registrant who are primarily responsible for the day-to-day management of the registrant’s portfolio (“Portfolio Manager”). Also state each Portfolio Manager’s business experience during the past 5 years.
N/A
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company, in the following tabular format, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any affiliated purchaser, as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).
N/A
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15)) of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Directors since the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A) in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant’s principal executive and principal financials officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are effective based on the evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) If the registrant is a closed-end management investment company, provide the following dollar amounts of income and compensation related to the securities lending activities of the registrant during its most recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities lending activities and related services: any share of revenue generated by the securities lending program paid to the securities lending agent(s) (revenue split); fees paid for cash collateral management services (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split; administrative fees that are not included in the revenue split; fees for indemnification that are not included in the revenue split; rebates paid to borrowers; and any other fees relating to the securities lending program that are not included in the revenue split, including a description of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe the services provided to the registrant by the securities lending agent in the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Floating Rate Fund, Inc.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President and Chief Executive Officer
Date August 1, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President and Chief Executive Officer
Date August 1, 2023
By (Signature and Title)* /s/ Anthony J. Koenig, Jr.
Anthony J. Koenig, Jr., Managing Director, Chief Operations Officer & Treasurer of the Funds
Date August 1, 2023
* | Print the name and title of each signing officer under his or her signature. |
CODE OF ETHICS
FOR
SENIOR OFFICERS
POLICY
This Code of Ethics for Senior Officers (this Code) sets forth the policies, practices and values expected to be exhibited by Senior Officers of the Pioneer Funds (collectively, the Funds and each, a Fund). This Code does not apply generally to officers and employees of service providers to the Funds, including Amundi Asset Management US, Inc., and Amundi Distributor US, Inc. (collectively, Amundi US), unless such officers and employees are also Senior Officers.
The term Senior Officers shall mean the principal executive officer, principal financial officer, principal accounting officer and controller of the Funds, although one person may occupy more than one such office. Each Senior Officer is identified by title in Exhibit A to this Code.
The Chief Compliance Officer (CCO) of the Pioneer Funds is primarily responsible for implementing and monitoring compliance with this Code, subject to the overall supervision of the Board of Directors of the Funds (the Board). The CCO has the authority to interpret this Code and its applicability to particular situations. Any questions about this Code should be directed to the CCO or his or her designee.
PURPOSE
The purposes of this Code are to:
| Promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
| Promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission (SEC) and in other public communications made by the Fund; |
| Promote compliance with applicable laws and governmental rules and regulations; |
1 | Last revised January 2021 |
| Promote the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and |
| Establish accountability for adherence to the Code. |
Each Senior Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
RESPONSIBILITIES OF SENIOR OFFICERS
Conflicts of Interest
A conflict of interest occurs when a Senior Officers private interests interfere in any way or even appear to interfere with the interests of or his/her service to a Fund. A conflict can arise when a Senior Officer takes actions or has interests that may make it difficult to perform his or her Fund work objectively and effectively. Conflicts of interest also arise when a Senior Officer or a member of his/her family receives improper personal benefits as a result of the Senior Officers position with the Fund.
Certain conflicts of interest arise out of the relationships between Senior Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the ICA), and the Investment Advisers Act of 1940, as amended (the IAA). For example, Senior Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Funds because of their status as affiliated persons of the Funds. The Funds and Amundi US compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace such policies and procedures, and such conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit, conflicts arise as a result of the contractual relationship between the Fund and Amundi US because the Senior Officers are officers or employees of both. As a result, this Code recognizes that Senior Officers will, in the normal course of their duties (whether formally for a Fund or for Amundi US, or for both), be involved in establishing policies and implementing decisions that will have different effects on Amundi US and the Fund. The participation of Senior Officers in such activities is inherent in the contractual relationship between a Fund and Amundi US and is consistent with the performance by the Senior Officers of their duties as officers of the Fund and, if addressed in conformity with the provisions of the ICA and the IAA, will be deemed to have been handled ethically. In addition, it is recognized by the Board that Senior Officers may also be officers of investment companies other than the Pioneer Funds.
Other conflicts of interest are covered by this Code, even if such conflicts of interest are not subject to provisions of the ICA or the IAA. In reading the following examples of conflicts of interest under this Code, Senior Officers should keep in mind that such a list cannot ever be exhaustive or cover every possible scenario. It follows that the overarching principle is that the personal interest of a Senior Officer should not be placed improperly before the interest of a Fund.
2 | Last revised January 2021 |
Each Senior Officer must:
| Not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund whereby the Senior Officer would benefit personally to the detriment of the Fund; |
| Not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Senior Officer rather than the benefit of the Fund; and |
| Report at least annually any affiliations or other relationships that give rise to conflicts of interest. |
Any material conflict of interest situation should be approved by the CCO, his or her designee or the Board. Examples of these include:
| Service as a director on the board of any public or private company; |
| The receipt of any gift with a value in excess of an amount established from time to time by Amundi US Business Gift and Entertainment Policy from any single non-relative person or entity. Customary business lunches, dinners and entertainment at which both the Senior Officer and the giver are present, and promotional items of insignificant value are exempt from this prohibition; |
| The receipt of any entertainment from any company with which a Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; |
| Any ownership interest in, or any consulting or employment relationship with, any of a Funds service providers other than its investment adviser, principal underwriter, administrator or any affiliated person thereof; and |
| A direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officers employment, such as compensation or equity ownership. |
Corporate Opportunities
Senior Officers may not (a) take for themselves personally opportunities that are discovered through the use of a Funds property, information or position; (b) use a Funds property, information, or position for personal gain; or (c) compete with a Fund. Senior Officers owe a duty to the Funds to advance their legitimate interests when the opportunity to do so arises.
3 | Last revised January 2021 |
Confidentiality
Senior Officers should maintain the confidentiality of information entrusted to them by the Funds, except when disclosure is authorized or legally mandated. Confidential information includes all non-public information that might be of use to competitors, or harmful to the Funds, if disclosed.
Fair dealing with Fund shareholders, suppliers, and competitors
Senior Officers should endeavor to deal fairly with the Funds shareholders, suppliers, and competitors. Senior Officers should not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair-dealing practice. Senior Officers should not knowingly misrepresent or cause others to misrepresent facts about a Fund to others, whether within or outside the Fund, including to the Board, the Funds auditors or to governmental regulators and self-regulatory organizations.
Compliance with Law
Each Senior Officer must not knowingly violate any law, rule and regulation applicable to his or her activities as an officer of the Funds. In addition, Senior Officers are responsible for understanding and promoting compliance with the laws, rules and regulations applicable to his or her particular position and by persons under the Senior Officers supervision. Senior Officers should endeavor to comply not only with the letter of the law, but also with the spirit of the law.
Disclosure
Each Senior Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Funds. Each Senior Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers of the Funds and Amundi US with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents a Fund files with, or submits to, the SEC and in other public communications made by the Funds.
INITIAL AND ANNUAL CERTIFICATIONS
Upon becoming a Senior Officer the Senior Officer is required to certify that he or she has received, read, and understands this Code. On an annual basis, each Senior Officer must certify that he or she has complied with all of the applicable requirements of this Code.
ADMINISTRATION AND ENFORCEMENT OF THE CODE
Report of Violations
Amundi US relies on each Senior Officer to report promptly if he or she knows of any conduct by a Senior Officer in violation of this Code. All violations or suspected violations of this Code must be reported to the CCO or a member of Amundi US Legal and Compliance Department. Failure to do so is itself a violation of this Code.
4 | Last revised January 2021 |
Investigation of Violations
Upon notification of a violation or suspected violation, the CCO or other members of Amundi US Compliance Department will take all appropriate action to investigate the potential violation reported. If, after such investigation, the CCO believes that no violation has occurred, the CCO and Compliance Department is not required to take no further action. Any matter the CCO believes is a violation will be reported to the Independent Directors. If the Independent Directors concur that a violation has occurred, they will inform and make a recommendation to the full Board. The Board shall be responsible for determining appropriate action. The Funds, their officers and employees, will not retaliate against any Senior Officer for reports of potential violations that are made in good faith and without malicious intent.
The CCO or his or her designee is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. The CCO or his or her designee shall make inquiries regarding any potential conflict of interest.
Violations and Sanctions
Compliance with this Code is expected and violations of its provisions will be taken seriously and could result in disciplinary action. In response to violations of the Code, the Board may impose such sanctions as it deems appropriate within the scope of its authority over Senior Officers, including termination as an officer of the Funds.
Waivers from the Code
The Independent Directors will consider any approval or waiver sought by any Senior Officer.
The Independent Directors will be responsible for granting waivers, as appropriate. Any change to or waiver of this Code will, to the extent required, be disclosed as provided by SEC rules.
OTHER POLICIES AND PROCEDURES
This Code shall be the sole Code of Ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. The Funds and Amundi US Codes of Ethics under Rule 17j-1 under the ICA and Rule 204A-1 of the IAA are separate requirements applying to the Senior Officers and others, and are not a part of this Code. To the extent any other policies and procedures of the Funds or Amundi US overlap or conflict with the provisions of the Code, they are superseded by this Code.
SCOPE OF RESPONSIBILITIES
A Senior Officers responsibilities under this Code are limited to Fund matters over which the Senior Officer has direct responsibility or control, matters in which the Senior Officer routinely participates, and matters with which the Senior Officer is otherwise involved. In addition, a Senior Officer is responsible for matters of which the Senior Officer has actual knowledge.
5 | Last revised January 2021 |
AMENDMENTS
This Code other than Exhibit A may not be amended except in a writing that is specifically approved or ratified by a majority vote of the Board, including a majority of the Independent Directors.
CONFIDENTIALITY
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board and their counsel, or to Amundi US Legal and Compliance Department.
INTERNAL USE
This Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion.
6 | Last revised January 2021 |
EXHIBIT A SENIOR OFFICERS OF THE PIONEER FUNDS (EFFECTIVE AS OF AUGUST 14, 2008)
President (Principal Executive Officer)
Treasurer (Principal Financial Officer)
Code of Ethics for Senior Officers
CERTIFICATION PURSUANT TO RULE 30a-2(a)
UNDER THE 1940 ACT AND SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Lisa M. Jones, certify that:
1. I have reviewed this report on Form N-CSR of Pioneer Floating Rate Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d. Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a. All significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: August 1, 2023 |
/s/ Lisa M. Jones |
Lisa M. Jones |
President and Chief Executive Officer |
CERTIFICATION PURSUANT TO RULE 30a-2(a)
UNDER THE 1940 ACT AND SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Anthony J. Koenig, Jr., certify that:
1. I have reviewed this report on Form N-CSR of Pioneer Floating Rate Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d. Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a. All significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: August 1, 2023 |
/s/ Anthony J. Koenig, Jr |
Anthony J. Koenig, Jr. |
Managing Director, Chief Operations Officer & Treasurer of the Funds |
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
I, Lisa M. Jones, certify that, to the best of my knowledge:
1. The Form N-CSR (the Report) of Pioneer Floating Rate Fund, Inc. fully complies for the period covered by the Report with the requirements of Section 13(a) or 15 (d), as applicable, of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Fund.
Date: August 1, 2023
/s/ Lisa M. Jones |
Lisa M. Jones |
President and Chief Executive Officer |
This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. section 1350 and is not being filed as part of the Report with the Securities and Exchange Commission.
A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the Securities Exchange Commission or its staff upon request.
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
I, Anthony J. Koenig, Jr., certify that, to the best of my knowledge:
1. The Form N-CSR (the Report) of Pioneer Floating Rate Fund, Inc. fully complies for the period covered by the Report with the requirements of Section 13(a) or 15 (d), as applicable, of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Fund.
Date: August 1, 2023
/s/ Anthony J. Koenig, Jr. |
Anthony J. Koenig, Jr. |
Managing Director, Chief Operations Officer & Treasurer of the Funds |
This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. section 1350 and is not being filed as part of the Report with the Securities and Exchange Commission.
A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the Securities Exchange Commission or its staff upon request.
N-2 - $ / shares |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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May 31, 2023 |
Nov. 30, 2022 |
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Cover [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Entity Central Index Key | 0001305767 | ||||||||||||||||||||||||||||||||||||||||
Amendment Flag | false | ||||||||||||||||||||||||||||||||||||||||
Document Type | N-CSRS | ||||||||||||||||||||||||||||||||||||||||
Entity Registrant Name | Pioneer Floating Rate Fund, Inc. | ||||||||||||||||||||||||||||||||||||||||
General Description of Registrant [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Investment Objectives and Practices [Text Block] | The investment objective of the Fund is to seek a high level of current income and the Fund may, as a secondary objective, also seek capital appreciation to the extent that it is consistent with its investment objective. | ||||||||||||||||||||||||||||||||||||||||
Risk Factors [Table Text Block] |
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Share Price [Table Text Block] | Prices and Distributions | 5/31/23 Market Value per Share^
Net Asset Value per Share^
Distributions per Share
Yields
The data shown above represents past performance, which is no guarantee of future results. ^ Net asset value and market value are published in Barron's on Saturday, The Wall Street Journal on Monday and The New York Times on Monday and Saturday. Net asset value and market value are published daily on the Fund's website at www.amundi.com/us.
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Latest Share Price | [1] | $ 8.41 | $ 8.99 | ||||||||||||||||||||||||||||||||||||||
Latest Premium (Discount) to NAV [Percent] | [1] | (13.83%) | (9.10%) | ||||||||||||||||||||||||||||||||||||||
Latest NAV | [1] | $ 9.76 | $ 9.89 | ||||||||||||||||||||||||||||||||||||||
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1 Year Pioneer Floating Rate Chart |
1 Month Pioneer Floating Rate Chart |
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