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A floating rate portfolio
that seeks to deliver
attractive income1

Hear about BGFREI from the GSO team
Symbol:

Why Blackstone / GSO Floating rate Enhanced Income Fund?

An income-oriented strategy targeting floating rate senior loans with potentially low sensitivity to rising rates.

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Hear Bennett Goodman, Co-Founder of GSO, on the creation of Blackstone/GSO Floating Rate Enhanced Income Fund

Bringing Blackstone’s leading institutional credit platform to individual investors

INCOME GENERATION

BGFREI seeks to provide attractive income primarily from floating rate senior loans

INSTITUTIONAL PLATFORM

BGFREI provides individual investors access to GSO, a leading institutional credit platform with significant scale and experience in the credit markets

POTENTIALLY LOWER VOLATILITY

BGFREI will seek to provide exposure to the floating rate senior loan market with less price volatility than comparable listed closed-end vehicles

RESILIENT TO RISING INTEREST RATES

Given their floating rate nature, senior loans typically have short duration and their performance is relatively resilient during periods of rising interest rates

EFFICIENT STRUCTURE

An interval fund structure reduces the need to hold cash and permits the use of leverage to potentially enhance yield

PORTFOLIO DIVERSIFICATION

Because floating rate senior loans have low correlation to traditional fixed income investments, we believe BGFREI can help diversify a client’s existing bond portfolio

 

 

Note: For data on the low duration of floating rate senior loans, their positive correlation to rising interest rates, and their low correlation to traditional fixed income investments, see Why Floating Rate Senior Loans below. Data provided is for informational use only. Indices are unmanaged, do not reflect the deduction of fees and expenses, and are not available for direct investment. Fees and expenses will be deducted from any investment in the Fund. The performance of the Fund will differ and may vary materially from any index. An investment in the Fund is different from a direct investment in any of the asset classes discussed in this brochure. Performance data quoted represents past performance for the asset class shown, which is no guarantee of future results.

We hope to achieve lower price volatility through the use of an “interval fund” structure. Interval funds do not trade on a secondary market and are offered for sale and repurchase at net asset value (“NAV”). The value of underlying investments may fluctuate and shares may be worth less than the original amount invested. There can be no assurance that the Fund will achieve its investment objective or avoid losses. Interval funds are closed-end funds but are different from listed closed-end funds in that their shares do not trade on the secondary market. Instead, interval fund shares are subject to periodic repurchase offers by the fund at a price based on NAV. Interval funds are also permitted to continuously offer their shares at a price based on NAV.

The Fund anticipates utilizing leverage in an amount not to exceed 33 1⁄3% of Managed Assets at the time the leverage is incurred in order to buy additional securities. “Managed Assets” means net assets plus the amount of any Borrowings and the liquidation preference of any Preferred Shares that may be outstanding. Leverage may result in greater volatility of the net asset value and distributions on shares because changes in the value of the Fund’s portfolio investments, including investments purchased with the proceeds from Borrowings, if any, are borne entirely by shareholders. In addition, the Fund’s use of leverage will result in increased operating costs. There can be no assurance that the Fund’s leveraging strategy will be successful. For more information please see the Important Disclosure Information section of this brochure.