FCT - PHD: This Floater Fund Is Increasing Its Appeal To Risk-Averse Investors
2024-05-30 06:33:12 ET
Summary
- The Pioneer Floating Rate Fund offers a high level of income with an 11.54% yield, comparable to its peers.
- The fund lacks inflation protection, which may be a concern for investors looking to preserve the purchasing power of their assets.
- The fund has outperformed investment-grade and junk bonds since early January, providing a total return of 9.33% for investors.
- The fund appears to be reducing the credit risk of its portfolio, which should reduce default losses in a "higher for longer" environment.
- The distribution is fully covered with NII and the fund's shares are trading at a discount on NAV.
The Pioneer Floating Rate Fund ( PHD ) is a closed-end fund that income-seeking investors can purchase as a means of achieving their goals of earning a high level of income from their portfolios. The fund does fairly well at this, as it boasts an 11.54% yield at the current share price. This yield compares reasonably well with that of the fund’s peers:
| Fund Name |
| Morningstar Classification |
| Current Yield |
| Pioneer Floating Rate Fund |
| Fixed Income-Taxable-Senior Loans |
| 11.54% |
| Apollo Senior Floating Rate Fund ( AFT ) |
| Fixed Income-Taxable-Senior Loans |
| 11.41% |
| BlackRock Floating Rate Income Trust ( BGT ) |
| Fixed Income-Taxable-Senior Loans |
| 11.15% |
| Eaton Vance Floating Rate Income Trust ( EFT ) |
| Fixed Income-Taxable-Senior Loans |
| 10.65% |
| First Trust Senior Floating Rate Income Fund II ( FCT ) |
| Fixed Income-Taxable-Senior Loans |
| 11.28% |
| Nuveen Floating Rate Income Fund ( JFR ) |
| Fixed Income-Taxable-Senior Loans |
| 11.74% |