Senior Loan Funds
A senior loan closed end fund is one of the taxable bond fund categories. This senior loan fund utilizes its assets to purchase a floating-rate bank loans instead of bonds. This bond fund provides high interest income for investors. It does have a higher investment risk than typical short term bond fund.The investment risks for this senior loan or bank loan funds are interest rate risk, market risk, issuer’s risk, etc. You can buy these funds for your retirement account or brokerage account.
Top Closed End Funds
The list is sorted based on the funds’ YTD performance in 2014. You can find fund review and information in this article. Other information such as expense ratio, management, top holdings, top sector, and shares price can be found as well.Top performing senior loan closed end funds 2014 are:
- NexPoint Credit Strategies Fund
- Oxford Lane Capital Corp
- Avenue Income Credit Strategy
- Ares Dynamic Credit Allocation
- Nuveen Floating Rate Income Opportunities
- Invesco VK Dynamic Credit Opportunities
- BlackRock Floating Rate Income Trust
- THL Credit Senior Loan Fund
- Blackstone/GSO LS Credit Income
- Apollo Senior Floating Rate
- BlackRock Defined Opportunities Credit
- Nuveen Floating Rate Income
- Invesco Senior Income
- Nuveen Short Duration Credit Opportunities
- EV Floating-Rate Income Plus Fund
NexPoint Credit Strategies Fund (NHF)
Managed by James Dondero, NexPoint Credit Strategies Fund use its assets to buy floating and fixed rate loans, bonds, debt obligations, mortgage backed and asset backed securities, collateralized debt obligations and equities. This closed end fund is currently traded at 11.40% discount from its NAV. The distribution yield is 6.00% per year. It annual expense ratio is 2.74%. The total net assets are $1.2 billion.This NHF fund has YTD return of 26.48% in 2014. The 5-year annualized return is 5.18% and the 10-year annualized return is 29.13%.
As of June 2014, this senior loan fund has a total of 197 holdings. The top 3 holdings American Airlines Group Inc, Media General Inc. A, and Freedom Reit. The top sectors are general equity, asset backed securities, and senior loans.
Ares Dynamic Credit Allocation Fund (ARDC)
The objective of this Ares Dynamic Credit Allocation Fund is to achieve total return through investment in secured loans made primarily to companies whose debt is rated below investment grade, corporate bonds that are expected to be primarily high yield issues and debt securities issued by collateralized l. It uses the leverage to enhance the return potential. The fund managers are Keith Ashton and Seth Brufsky. It has 2.21% of annual expense ratio. The effective leverage is 29.08%. The fund has total net assets of $137 million.More: Top 25 Highest Yield Closed End Funds
As of July 2014, the top holdings are Hertz Corporation, Transunion Holding Co, Hillman Company, Gxs Worldwide, and Dae Aviation Holdings. It has weighted average maturity of 46.60 years. This top senior loan closed end fund has a YTD return of 3.51% in 2014.
Invesco Van Kampen Dynamic Credit Opportunities (VTA)
This Invesco Dynamic Credit Opportunities fund was introduced to investors in June 2007. The fund’s CUSIP is 46132R104. The fund managers are Scott Baskind, Greg Stoeckle, and Philip Yarrow. This best senior loan fund is currently traded at 7.51% discount from its NAV. It has distribution rate of 6.96%. The fund also has an expense ratio of 2.25% per year. In 2014, Its YTD return is 3.46%. This taxable bond fund has returned 10.81% in 2013 and 27.26% in 2012.More: Best MLP Stock Closed End Funds
The top 5 sectors as of June 2014 are Business equipment & service, health care, telecommunications, oil & gas, and chemical & plastics. Top 2 holdings are Nobina Ab, and Asurion Llc term loan B.
CEF Fund Performance
| No | Fund Name | Ticker | NAV Price | Yield | Assets | YTD Return % |
|---|---|---|---|---|---|---|
| 1 | NexPoint Credit Strategies Fund | NHF | $13.18 | 6.20% | $742M | 26.48% |
| 2 | Oxford Lane Capital Corp | OXLC | $16.26 | 13.68% | $267M | 7.16% |
| 3 | Avenue Income Credit Strategy | ACP | $19.17 | 8.04% | $234M | 5.40% |
| 4 | Ares Dynamic Credit Allocation | ARDC | $19.67 | 7.70% | $313M | 4.68% |
| 5 | Nuveen Floating Rate Inc Opps | JRO | $12.76 | 6.15% | $473M | 4.15% |
| 6 | Invesco VK Dynamic Cred Opps | VTA | $13.93 | 6.98% | $955M | 3.46% |
| 7 | BlackRock Floating Rate Inc Tr | BGT | $14.91 | 5.90% | $335M | 3.34% |
| 8 | THL Credit Senior Loan Fund | TSLF | $19.60 | 7.79% | $121M | 3.20% |
| 9 | Blackstone/GSO LS Credit Inc. | BGX | $19.09 | 6.59% | $227M | 2.72% |
| 10 | Apollo Senior Floating Rate | AFT | $19.20 | 6.36% | $281M | 2.46% |
| 11 | BlackRock Defined Opps Credit | BHL | $14.55 | 5.30% | $124M | 2.41% |
| 12 | Nuveen Floating Rate Income | JFR | $12.67 | 6.15% | $646M | 1.32% |
| 13 | Invesco Senior Income | VVR | $5.25 | 6.32% | $889M | 1.32% |
| 14 | Nuveen Shrt Duration Cred Opps | JSD | $19.59 | 6.33% | $186M | 1.17% |
| 15 | EV Floating-Rate Inc Plus Fund | EFF | $19.64 | 6.22% | $137M | 0.97% |
| 16 | BlackRock Float Rate Strat | FRA | $15.52 | 5.82% | $538M | 0.81% |
| 17 | Nuveen Senior Income | NSL | $7.55 | 6.03% | $269M | 0.62% |
| 18 | EV Senior Income Trust | EVF | $7.32 | 5.66% | $257M | 0.52% |
| 19 | EV Senior Floating Rate | EFR | $15.75 | 6.08% | $545M | 0.28% |
| 20 | Voya Prime Rate Trust | PPR | $6.04 | 6.13% | $839M | 0.17% |
| 21 | EV Floating Rate Income | EFT | $16.14 | 5.77% | $597M | -0.09% |
| 22 | LMP Corporate Loan Fund | TLI | $12.90 | 7.36% | $117M | -0.42% |
| 23 | Pioneer Floating Rate Trust | PHD | $13.06 | 6.30% | $306M | -0.47% |
| 24 | First Trust Senior FR Inc II | FCT | $14.93 | 6.14% | $372M | -0.98% |
| 25 | Blackstone/GSO Senior Floating | BSL | $19.13 | 6.69% | $273M | -2.09% |
| 26 | Nuveen Credit Strat. Income | JQC | $10.31 | 5.68% | $1,252M | -2.41% |
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