30-Day SEC Yield
The 30-Day SEC Yield is a standardized yield calculation required by the Securities and Exchange Commission that reflects the fund’s net investment income earned over the most recent 30-day period, annualized. It is a historical measure intended for comparison purposes and is not a forecast of future distributions or returns.
Anchor Investors
Anchor Investors are investors that make a significant initial commitment to a fund, often during its formation or early fundraising period. The participation of anchor investors may help establish scale for the fund but does not constitute an endorsement, guarantee performance, or ensure participation by other investors.
Annualized Distribution Rate
The Annualized Distribution Rate represents the most recent distribution paid by the fund, expressed on an annualized basis. The rate may include income, capital gains, or return of capital and does not reflect the fund’s total return or guarantee future distributions, which may vary or be suspended.
Asset-Backed Securities (ABS)
Asset-Backed Securities (ABS) are securities backed by pools of underlying financial assets, such as consumer or commercial receivables. Payments on ABS depend on the performance of the underlying assets and are subject to credit risk, as well as prepayment and extension risk.
BB Rated CLO Debt Tranches
BB Rated CLO Debt Tranches are debt securities issued by collateralized loan obligations that were initially rated “BB” by a nationally recognized statistical rating organization, indicating below-investment-grade credit quality. These tranches generally offer higher yields than higher-rated tranches but carry greater credit risk and a higher likelihood of loss.
Bloomberg US High Yield Index
The Bloomberg US High Yield Index is a market-value-weighted index designed to measure the performance of U.S. dollar-denominated, below-investment-grade corporate bonds publicly issued in the U.S. domestic market. The index is unmanaged, does not reflect fees or expenses, and is not available for direct investment.
Broadly Syndicated Loans (BSL)
Broadly Syndicated Loans are large corporate loans arranged by one or more financial institutions and syndicated to a broad group of institutional investors. Although these loans may trade in a secondary market, such markets may be limited or illiquid, particularly during periods of market stress.
Collateralized Loan Obligations (CLOs)
Collateralized Loan Obligations are structured investment vehicles that hold portfolios of senior secured corporate loans and issue multiple classes, or tranches, of securities with differing priorities of payment, credit exposure, and risk profiles.
Corporate Bonds
Corporate Bonds are debt securities issued by corporations that typically pay periodic interest and return principal at maturity, subject to the issuer’s creditworthiness, interest rate risk, and market conditions.
Duration Risk
Duration Risk is the risk that the value of a fixed-income investment will decline due to changes in interest rates. In general, securities with longer durations are more sensitive to interest rate changes than securities with shorter durations.
Enhanced Economics
Enhanced Economics refers to negotiated investment terms or structures that may provide the fund with additional potential economic benefits relative to standard investment terms, such as fees, discounts, or other contractual arrangements. There can be no assurance that enhanced economics will be realized, and such arrangements may involve additional risks.
First Lien Loans
First Lien Loans are secured loans that have a first-priority claim on specified collateral in a borrower’s capital structure. While they generally rank ahead of other debt obligations, they remain subject to credit risk and the possibility that collateral values may be insufficient in a default.
Floating Rate Loans
Floating Rate Loans are loans that pay interest at rates that periodically reset based on a reference rate, such as Secured Overnight Financing Rate (SOFR), plus a stated spread. As a result, income from these loans may fluctuate with changes in short-term interest rates, and the loans remain subject to credit and liquidity risks.
Interval Fund
An interval fund is a type of registered closed-end investment company that does not trade on an exchange and offers to repurchase a portion of its outstanding shares from shareholders at net asset value at specified intervals, typically quarterly. Liquidity is limited to these periodic repurchase offers.
Middle Market Loans
Middle Market Loans are loans made to companies that are generally smaller than large, publicly traded companies, as defined by the Adviser using financial metrics such as Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). These loans may involve higher credit, liquidity, and valuation risks than loans to larger companies.
Monthly Income Distributions
Monthly Income Distributions are payments made by the fund to shareholders that represent a portion of the fund’s current income. Distributions are determined by the fund’s board of trustees and are not guaranteed as to amount or frequency.
Morningstar LSTA US Leveraged Loan Index
The Morningstar LSTA US Leveraged Loan Index is a market-value-weighted index designed to measure the performance of the U.S. leveraged loan market, including broadly syndicated, senior secured, floating-rate loans. The index is unmanaged and does not reflect fees or expenses.
Net Asset Value (NAV)
Net Asset Value represents the value of the fund’s total assets minus its liabilities, divided by the number of outstanding shares. NAV is calculated in accordance with the fund’s valuation policies, which may involve fair-value determinations for less liquid investments, and may fluctuate over time.
Repurchase Offer / Limited Liquidity
A Repurchase Offer is a periodic offer by the fund to repurchase a portion of its outstanding shares at net asset value. Because interval funds do not trade on an exchange, repurchase offers are the primary means of shareholder liquidity and are limited in amount and frequency.
Senior Secured Corporate Loans
Senior Secured Corporate Loans are loans made to corporations that are secured by collateral and rank senior in the borrower’s capital structure to unsecured or subordinated debt. These loans generally have priority in repayment but are still subject to credit, collateral, and liquidity risks.
Share Class / Ticker
A Share Class represents a category of fund shares that may have different expenses, minimum investment requirements, or other characteristics. A Ticker is a unique symbol used to identify a particular share class on financial platforms and does not imply performance or liquidity.
Structured Products
Structured Products are financial instruments whose value and cash flows are derived from underlying assets, indices, or reference rates. These instruments often involve complex structures, may be illiquid, and may be more sensitive to credit and market risks than traditional fixed-income securities.
Tranches (CLO Debt and CLO Equity)
Tranches are classes of securities issued by a collateralized loan obligation that have different priorities of payment and risk exposure. CLO debt tranches generally receive payments before CLO equity tranches, while CLO equity represents the most junior interest and is subject to the highest risk of loss.