First Investors Floating Rate Fund
Data updated: 2019-12-13
C000130522 — First Investors Floating Rate Fund. Bank Loans / Floating Rate Bond · $105.29M AUM. Holdings, fees, performance and SEC filings.
C000130522 Fund Overview
First Investors Floating Rate Fund is a US mutual fund managed by First Investors Income Funds, categorised as Bank Loans / Floating Rate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: First Investors Income Funds
- Category: Bank Loans / Floating Rate Bond
- Assets under management: $105.29M
- SEC CIK: 0000740967
- SEC series ID: S000042009
- Share class ID: C000130522
C000130522 Investment Objective and Strategy
First Investors Floating Rate Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by First Investors Income Funds.
Investment objective
The Fund seeks a high level of current income.
Principal investment strategy
Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in floating rate loans and/or bonds. Floating rate loans represent amounts borrowed by companies or other entities from banks and other lenders, which have interest rates that reset periodically (annually or more frequently), generally based on a common interest rate index or another base rate. In many cases, they are issued in connection with recapitalizations, acquisitions, leveraged buyouts and refinancings. The Fund will normally invest the majority of its assets in U.S. dollar denominated senior secured floating rate loans and/or bonds. A senior floating rate loan typically has priority with respect to payment (to the extent assets are available) in the event of bankruptcy.
The Fund generally will acquire floating rate loans as assignments from lenders. The Fund may invest in floating rate loans and/or bonds of any maturity or credit quality, but typically will invest in short duration, below investment grade floating rate loans and/or bonds (commonly referred to as high-yield or junk bonds) that the subadviser believes have attractive risk/reward characteristics and which are issued by U.S. corporations and/or foreign corporations in U.S. dollars. The Fund generally invests in below investment grade securities that are rated from BB+ to B- by Standard & Poors Ratings Services, Ba1 through B3 by Moodys Investors Service, Inc., or which are deemed to be of equivalent credit quality by the subadviser. To a lesser extent, the Fund may invest in below investment grade securities below these ranges.
The Fund will primarily invest in high yield floating rate loans and/or bonds, and may invest, to a lesser degree, in fixed-rate bonds. The subadviser generally attempts to reduce the impact on the Fund from changing interest rates by investing in securities with shorter durations. Duration is a measurement of a loans or bonds sensitivity to changes in interest rates. In general, the longer the duration of loans and/or bonds, the greater the likelihood that an increase in interest rates would cause a decline in the price of the Funds shares. The subadviser believes that the Funds short duration approach potentially reduces interest rate risk. Although the subadviser will consider ratings assigned by ratings agencies in selecting floating rate loans and/or bonds, it relies principally on its own research and analysis.
The subadviser selects a loan and/or bond based on a bottom-up evaluation of each company and each loan or security. The subadviser considers both company-specific quantitative and qualitative factors, including: a companys managerial strength and commitment to debt repayment; anticipated cash flow; debt maturity schedules; borrowing requirements; use of borrowing proceeds; asset coverage; earnings prospects; applicable legislation, regulation, or litigation; and the strength and depth of the protections afforded to the lender through the documentation governing the bank loan or bond issuance. The Fund may sell a holding when it has fulfilled the portfolio managers expectations, no longer offers compelling relative value, shows deteriorating fundamentals, or if it falls short of the portfolio managers expectations.
The portfolio managers may also decide to continue to hold a loan or bond (or related securities) after a default.
C000130522 Costs and Fees
C000130522 costs about $90 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.90%
- Gross expense ratio: 0.86%
- Portfolio turnover: 60%
- Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)
C000130522 Cashflows
Over the 12 months to 2019-09, First Investors Floating Rate Fund had net outflows of $10.41M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2019-09 | $4.27M |
| 2019-08 | $2.38M |
| 2019-07 | −$17.06M |
C000130522 Debt Constituents
No individual debt constituents are reported in First Investors Floating Rate Fund's latest SEC N-PORT filing.
C000130522 Prospectus and SEC Filings
Official First Investors Floating Rate Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.