Blackstone / GSO Floating Rate Enhanced Income Fund Announces Initial Annual Results
Blackstone / GSO Floating Rate Enhanced Income Fund (BGFRIE with tickers: BGFLX, BGFTX and BGFDX) is a non-diversified, closed-end management investment company.
Blackstone / GSO Floating Rate Enhanced Income Fund (BGFRIE with tickers: BGFLX, BGFTX and BGFDX), an interval fund with the strategic objective to provide attractive current income with low sensitivity to rising interest rates, filed its initial annual report last week.
At the close of the third quarter, the interval fund reported net assets in excess of $305.6 million
Since its Class I shares were introduced on January 18, 2018, the fund has outperformed its benchmark, the S&P/LSTA Leveraged Loan Index, for the one-month and three-month periods.
As of September 30, 2018, the fund’s Class I shares had a total return of 3.61 percent on its net asset value of $25.00 per share, compared to the S&P LLI return of 3.5 percent. The reported annualized distribution rate for of I shares was 6.71 percent and T shares was 6.20 percent.
The fund held 90.4 percent of its managed assets in first lien loans, 7.1 percent in second lien loans, 5.1 percent in high yield bonds, 3.2 percent in CLO liabilities, and 2.7 in an exchanged traded fund. BGFREI’s investments represented the obligations of 273 companies, with an average position size representing 0.33 percent of managed assets in the fund.
By issuer, the largest contributors to performance relative to the fund’s benchmark were Carestream Health, Landesk Software and Albany Molecular Research.
Healthcare, electronics/electrical and business equipment and services represented the fund’s top sector weightings. While retailers, cable and satellite television, lodging and casinos were the fund’s lowest sector holdings.
The fund declares income dividends daily and distributes them monthly. It also offers to make monthly repurchases of shares at the net asset value.
