The Dreyfus Corporation, a BNY Mellon company has launched the Dreyfus Floating Rate Income Fund, an actively managed mutual fund to seek high current income by investing in floating rate loans and other floating rate securities.
The fund is sub-advised by Alcentra NY, a BNY Mellon global investment firm specializing in sub-investment grade credit.
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The primary portfolio managers for the fund are William Lemberg, head of Alcentra’s US loan platform and Chris Barris, head of global high yield at Alcentra.
Lemberg is the fund’s portfolio manager principally responsible for floating rate loans and other floating rate securities while Barris is principally responsible for high yield, fixed-rate securities.
The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in floating rate loans and other floating rate securities.
The investments will include senior secured and unsecured loans, second lien loans, subordinated loans, senior and subordinated corporate debt obligations, debt obligations issued by U.S and foreign governments and fixed-rate loans.
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By GlobalDataThe fund may also invest up to 20% of its net assets in the securities of foreign issuers and up to 20% of its net assets in high yield instruments.
Dreyfus president, Charles Cardona, said: "Floating rate loans could be attractive to investors seeking an asset class with lower interest rate sensitivity, seniority in a company’s capital structure and diversification potential as floating rate loans generally exhibit low correlation to other asset classes. The new fund provides access to a broad range of investments not generally available to individual investors."
