Fund Description
Overview
- Designed to provide investors with a high level of monthly income
- Invests in ultra-short duration floating rate loans that reset every 30, 60 or 90 days, making the fund less affected by rising interest rates than many other fixed income funds
- Typically invests in senior secured asset-backed loans that are generally first in line to be repaid in the event of financial difficulty
Investment Objective
The Fund seeks to provide investors with a high level of monthly income.
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Management Team
Jeffrey A. Bakalar
Senior Vice President
& Group Head,
ING Senior Loan Group
Managed Fund since 2001
Daniel A. Norman
Senior Vice President
& Group Head,
ING Senior Loan Group
Managed Fund since 2001
View Detailed Information
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Most Recent Month-End
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Most Recent Quarter-End
| As of 06/30/2010 |
YTD |
1 YR |
3 YR |
5 YR |
10 YR |
Inception
(04/2001) |
Gross
Exp. |
Net
Exp.1 |
| Net Asset Value |
+2.11 |
+19.37 |
-1.09 |
+1.79 |
— |
+3.53 |
2.11% |
2.07% |
| With Sales Charge |
-0.45 |
+16.39 |
-1.93 |
+1.27 |
— |
+3.53 |
|
|
| As of 06/30/2010 |
YTD |
1 YR |
3 YR |
5 YR |
10 YR |
Inception
(04/2001) |
Gross
Exp. |
Net
Exp.1 |
| Net Asset Value |
+2.11 |
+19.37 |
-1.09 |
+1.79 |
— |
+3.53 |
2.11% |
2.07% |
| With Sales Charge |
-0.45 |
+16.39 |
-1.93 |
+1.27 |
— |
+3.53 |
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* Return calculations for the period beginning April 2, 2001 through June 30, 2002, reflect no deduction of a front-end sales charge. Return calculations for the period beginning July 1, 2002 through October 10, 2004, reflect the deduction of the maximum Class A sales charge of 4.75%. Effective, October 11, 2004, return calculations with a starting date on or after October 11, 2004 are based on a 2.50% sales charge.
View Detailed Performance
Current Maximum Sales Charge: 2.50%
1 The Adviser has contractually agreed to limit expenses of the Fund. This expense limitation agreement excludes interest, taxes, brokerage, and extraordinary expenses and is subject to possible recoupment. Please see the Fund's prospectus for more information.
The expense limits will continue through at least July 1, 2010. The Fund is operating under the contractual expense limits. If the Fund were not to borrow, or the interest expense on the borrowings is excluded from the expenses of the Fund, the net annual expenses for Class A, Class B, Class C, Class I, and Class W shares would be 1.45%, 1.95%, 1.95%, 1.20%, and 1.20%, respectively.
Past performance is no guarantee of future results. The performance quoted represents past performance. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.
SEC fund returns assume the reinvestment of dividends and capital gain distributions and include a sales charge. Net Asset Value fund returns assume the reinvestment of dividends and capital gain distributions. Total return for less than one year is not annualized. Results would have been less favorable if the sales charge were included.
Principal Risks
The Fund invests primarily in below investment grade, floating rate senior loans that carry a higher than normal risk that borrowers may default in the timely payment of principal and interest on their loans, which would likely cause the value of the Fund's Common Shares to decrease. Changes in short-term market interest rates will directly affect the yield on the Fund's Common Shares. If such rates fall, the Fund's yield will also fall. If interest rate spreads on Fund's loans decline in general, the yield on the Fund's loans will fall and the value of the Fund's loans may decrease. When short-term market interest rates rise, because of the lag between changes in such short term rates and the resetting of the floating rates on loans in the Fund's portfolio, the impact of rising rates will be delayed to the extent of such lag. Because of the limited secondary market for floating rate senior bank loans, the Fund's ability to sell its loans in a timely fashion and/or at a favorable price may be limited. An increase in the demand for loans may adversely affect the rate of interest payable on new loans acquired by the Fund, and it may also increase the price of loans purchased by the Fund in the secondary market. A decrease in the demand for loans may adversely affect the price of loans in the Fund's portfolio, which would cause the Fund's NAV to decrease. The Fund's use of leverage through borrowings or issuance of preferred shares can adversely affect the yield on the Fund's Common Shares. Due to Limited Liquidity for Investors the Fund does not repurchase its shares on a daily basis and no market for the Fund's Common Shares is expected to exist. If more than 5% of Common Shares are tendered in any month, investors may not be able to completely liquidate their holdings in that month. The Fund may invest up to 20% of its assets in loans to borrowers in countries outside of the U.S. and Canada. Investment in foreign borrowers involves special risks, including potentially less rigorous accounting requirements, differing legal systems and potential political, social and economic adversity. The Fund may invest up to 15% of its assets in loans that are denominated in certain foreign currencies, however, the Fund will engage in currency exchange transactions to seek to hedge, as closely as practicable, 100% of the economic impact to the Fund arising from foreign currency fluctuations. Other risks of the Fund include but are not limited to: Borrowings; Preferred Shares; Diversification Risks; and Concentration Risks. Investors should consult the Fund's Prospectus and Statement of Additional Information for a more detailed discussion of the Fund's risks.