BlackRock Floating Rate Income Strategies Fund (NYSE:FRA) is a closed-end management investment company offered by BlackRock, Inc., a leading global asset manager headquartered in New York City. The fund’s primary objective is to seek a high level of current income, with a secondary objective of capital appreciation. It employs a portfolio strategy that targets floating-rate debt instruments, providing investors with potential protection against rising interest rates.
The fund’s investment portfolio is weighted toward senior secured floating-rate loans issued by corporations across various industries. These loans often carry interest rates that reset periodically, which can help mitigate duration risk in a rising rate environment. In addition to broadly syndicated bank loans, the fund may allocate assets to other floating-rate instruments such as collateralized loan obligations (CLOs), senior notes and securities issued by financial institutions and other credit issuers.
While the bulk of the fund’s holdings are U.S.-based credits, BlackRock Floating Rate Income Strategies Fund maintains the flexibility to invest in floating-rate instruments denominated in other major currencies, subject to regulatory and portfolio constraints. The fund may also employ leverage through borrowing or the use of derivative instruments to enhance income generation, consistent with its investment guidelines and risk management framework.
Investment decisions are made by BlackRock’s Global Credit team, a group of seasoned portfolio managers and analysts led by senior portfolio strategists with decades of experience in the floating-rate loan market. As part of BlackRock’s extensive suite of closed-end funds, FRA benefits from the firm’s robust research capabilities, proprietary risk analytics and a longstanding history of managing fixed-income strategies since the company’s founding in 1988.
AI Generated. May Contain Errors.
Free FRA Stock Alerts