FLBL

About FLBL

Under normal market conditions, the Fund invests at least 80% of its net assetsin senior loans and investments that provide exposure to senior loans. Senior loans include loans referredto as leveraged loans, bank loans and/or floating rate loans. The Fund invests predominantly in income-producingsenior floating interest rate corporate loans made to or issued by U.S. companies, non-U.S. entitiesand U.S. subsidiaries of non-U.S. entities. Floating interest rates vary with and are periodically adjustedto a generally recognized base interest rate such as the Secured Overnight Financing Rate (SOFR) or thePrime Rate. The Fund may invest in companies whose financial condition is troubled or uncertain and thatmay be involved in bankruptcy proceedings, reorganizations or financial restructurings.Senior loans generallyhave credit ratings below investment grade and may be subject to restrictions on resale. Under normalmarket conditions, the Fund invests at least 75% of its net assets in senior loans that are rated B-or higher at the time of purchase by a nationally recognized statistical rating organization (NRSRO)or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Undernormal market conditions, the Fund may invest up to 25% of its net assets in senior loans that are ratedbelow B- by an NRSRO or, if unrated, are determined to be of comparable quality by the investment manager.TheFund’s senior loans typically hold the most senior position in the capitalization structure ofa company and are generally secured by specific collateral. Such senior position means that, in casethe company becomes insolvent, the lenders or security holders in a senior position like the Fund’sposition will typically be paid before other unsecured or subordinated creditors of the company fromthe assets of the company.The Fund typically invests in a corporate loan if the investment manager judgesthat the borrower can meet the scheduled payments on the obligation and the risk adjusted return meetsthe portfolio criteria. The investment manager performs its own independent credit analysis of each borrower/issuerand of the collateral structure securing the Fund’s investment.The Fund may invest in “covenant lite”loans. Certain financial institutions may define “covenant lite” loans differently. Covenantlite loans may have tranches that contain fewer or no restrictive covenants. The tranche of the covenantlite loan that has fewer restrictions typically does not include the legal clauses which allow an investorto proactively enforce financial tests or prevent or restrict undesired actions taken by the companyor sponsor. Covenant lite loans also generally give theborrower/issuer more flexibility if they have met certain loan terms and provide fewer investor protectionsif certain criteria are breached. The Fund may experience relatively greater realized or unrealized lossesor delays in enforcing its rights on its holdings of certain covenant lite loans than its holdings ofloans with the usual covenants.The Fund currently limits its investments in debt obligations of non-U.S. entitiesto no more than 25% of its total assets. The Fund currently invests predominantly in debt obligationsthat are U.S. dollar-denominated or otherwise provide for payment in U.S. dollars.The Fund currently doesnot intend to invest more than 25% of its net assets in the obligations of borrowers in any single industry,except that, under normal market conditions, the Fund invests more than 25% of its net assets in debtobligations of companies operating in the industry group consisting of financial institutions and theirholding companies, including commercial banks, thrift institutions, insurance companies and finance companies.These firms, or “agent banks,” may serve as administrators of corporate loans issued by othercompanies. For purposes of this restriction, the Fund currently considers such companies to include theborrower, the agent bank and any intermediate participant. The Fund may invest up to 100% of its netassets in loans where firms in such industry group are borrowers, agent banks or intermediate participants.TheFund may invest in structured fixed income securities, including collateralized loan obligations (CLOs).The Fund considers the CLOs that it holds "loans" for purposes of its 80% policy. The Fund may also investa portion of its assets in cash or cash equivalents.To pursue its investment goals, the Fundmay enter into certain derivative transactions, principally high yield credit default index swaps. TheFund may use credit default index swaps to obtain net long or net short exposures to selected creditrisks or durations, for the purposes of enhancing Fund returns, increasing liquidity and/or gaining exposureto particular instruments in more efficient or less expensive ways, and to hedge risks related to changesin credit risks and other market factors. Derivatives that provide exposure to senior loans may be usedto satisfy the Fund’s 80% policy.In addition to the Fund's main investments, the Fund may investup to 20% of its net assets in certain other types of debt obligations and equity or debt securities,including, but not limited to, other secured, second lien, subordinated or unsecured corporate loansand corporate debt securities, fixed rate obligations of U.S. companies, non-U.S. entities and U.S. subsidiariesof non-U.S. entities and equity securities (including convertible securities, warrants and rights) tothe extent that they are acquired in connection with or incidental to the Fund's other investment activities.Theinvestment manager may consider selling a security when it believes the security has become fully valueddue to either its price appreciation or changes in the issuer’s fundamentals, or when the investmentmanager believes another security is a more attractive investment opportunity.