OppenheimerFunds announced the extension of its senior loan investing franchise with the launch of the Oppenheimer Senior Floating Rate Plus Fund (SFR PLUS). This actively-managed fund offers investors access to the same experienced team as the firm's original Senior Floating Rate Fund (SFR).
Like SFR, SFR PLUS will invest primarily in senior loans. The difference, however, will be that there will be the added flexibility to include high yield bonds and employ leverage. SFR will continue to be managed with the same product purity focus as it has been since the fund's start in 1999.
"With ongoing interest rate uncertainty, floating rate loans continue to be an excellent option for investors looking to manage interest rate risk while seeking an income stream," said Krishna Memani, Chief Investment Officer, Fixed Income, at OppenheimerFunds, Inc. in a statement. "Our flagship Senior Floating Rate Fund has thrived since its inception 14 years ago. We are now taking that same experienced team and giving them added flexibility to take advantage of the current market environment through high yield bonds and increased return potential via leverage. We believe the new SFR PLUS fund will be attractive to investors seeking higher potential income opportunities in their portfolios."
The new SFR PLUS will be headed up by Joseph Welsh, Head of the Corporate High Yield Debt Team, and Margaret Hui, Vice President. This is not the first time the pair has worked together as they currently co-manage the $13.3 billion Oppenheimer Senior Floating Rate Fund (OOSAX), which they launched in 1999. The full SFR investment team will support Welsh and Hui, ensuring investors have access to the "bottom-up" investment.
As with the original SFR, the SFR PLUS will use a security-by-security focus in an attempt to identify the most attractively valued opportunities in the senior loan market, commensurate with risk. Risk is further managed through diversity across industries and individual holdings. Unique to the new SFR PLUS will be enhanced return potential generated by high yield bond investment and the use of leverage.