Floating Rate Strategies Fund plans to expand what it can invest in

By Angela McDaniels

Tacoma, Wash., Dec. 30 - Floating Rate Strategies Fund plans to revise its investment policy to expand the types of securities that it can invest in, according to a supplement filed with the Securities and Exchange Commission by Security Income Fund.

The fund's policy is to invest at least 80% of its assets in particular investments. It plans to revise the 80% policy to also include

• Floating-rate asset-backed securities including floating-rate collateralized loan obligations, other floating-rate bonds, notes and other securities;

• Fixed-income instruments with respect to which the fund has entered into derivative instruments to effectively convert the fixed-rate interest payments into floating-rate income payments; and

• Derivative instruments that provide exposure to floating-rate or variable-rate loans, obligations or other securities.

Currently the fund is required to put at least 80% of its assets in floating-rate senior secured syndicated bank loans, floating-rate revolving credit facilities, floating-rate unsecured loans, and other floating-rate senior secured and unsecured subordinated bonds.

The fund's investment objective, other investment policies, strategies, risks, fees, expenses and portfolio management team will remain the same.

The board of directors has approved the change. Subject to necessary regulatory filings and review, the fund plans to make the change effective March 1.

Security Income Fund is based in Topeka, Kan.

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