The Flat Rock Core Income Fund (CORFX) provides exposure to investments focused on first lien, floating rate loans to middle market companies. The Fund’s objective is the preservation of capital while generating current income from its debt investments and seeking to maximize the portfolio’s total return.
All data as of 9/30/24. Distribution rate is defined as next monthly declared distribution * 12 divided by the share price. These distributions do not include a return of principal. Average loan to value is for direct loan investments.
| FUND PERFORMANCEFUND PERF | 1-YEAR RETURN1-YR RET | 3-YEAR RETURN3-YR RET | 5-YEAR RETURN5-YR RET | RETURN SINCE INCEPTIONRET FROM INCEP |
SINCE INCEPTION |
| Flat Rock Core Income FundCORFX | 11.39% | 8.31% | 8.88% | 8.08% | |
| Bloomberg US Aggregate Bond IndexBlmbrg. US Agg. Bond Index | 11.54% | -1.39% | 0.33% | 1.54% | |
| Bloomberg US Corporate High Yield IndexBlmbrg. US Corp. HY Index | 15.70% | 3.10% | 4.71% | 4.82% | |
| Morningstar Leveraged Loan IndexMstar. Lev. Loan Index | 9.57% | 6.46% | 5.74% | 5.24% |
CORFX fund inception 7/2/17
Performance data as of 9/30/24
Gross Expense Ratio: 8.48%, including fee waivers and excluding interest on credit facility and distributions on mandatorily redeemable preferred stock. Since inception, Fund distributions have not included a return of principal.
Past performance is not indicative of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past Performance is no guarantee of future results. A Fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. All historical performance prior to 11/23/2020 is of the Predecessor Fund, Flat Rock Capital Corp. Flat Rock Core Income Fund is a newly launched fund with the same assets, Advisor, and investment strategy as the Predecessor Fund. One cannot invest in an index. Total Annual Expense ratio: 7.37% . In 2017, 2018, 2019, and 2020, the Adviser had voluntarily agreed to waive all or a portion of its management fee and incentive fee (and to the extent necessary, bear other expenses of or make payments to the Fund) to limit net expenses throughout the periods. The waiver was not contractual and could be terminated at any time and was not subject to recoupment by the Adviser. The expense waiver is no longer in effect. Quotations of performance reflect the fee waiver and performance would have been lower had the waiver not been in effect. For performance as of the most recent month, please call (307) 500-5200.
Review the literature on CORFX below.
As of September 30, 2023; We intend to make a distribution each month to our shareholders of the net investment income of the Fund after payment of Fund operating expenses. The distribution rate may be modified from time to time. Distribution yield calculated by most recent distribution/most recent NAV* 12.
The 3/31/2020 portfolio is of the predecessor fund, Flat Rock Capital Corp.
The Alt Credit US Awards recognize the best alternative credit funds across liquid and private credit, covering the period June 2020 through June 2021. Funds were shortlisted based on a one year performance and Sharpe ratio, then a panel of industry expert judges examined that performance, as well as detailed entries including longer term performance, testimonials and the development of the Fund’s strategy and management company. View performance winners and categories here.
Glossary: Standard Deviation is the measure that provides the dispersion around a mean. The S&P / LSTA Loan Index is a market value weighted index designed to measure the performance of the U.S. leveraged loan market. The Bloomberg Barclays US Aggregate Bond Index, or the Agg, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. EBITDA is earnings before the deduction of interest, taxes, depreciation, and amortization. It is a non-GAAP calculation based on data from a company’s income statement used to measure a company’s operating profitability. LIBOR is London Interbank Offering Rate. Sharpe Ratio measures the performance of an investment (e.g., a security or portfolio) compared to a risk-free asset, after adjusting for its risk.
Investors should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may be obtained at flatrockglobal.com. The Fund is distributed by Ultimus Fund Distributors, Inc.
The Fund is suitable for investors who can bear the risks associated with the Fund’s limited liquidity and should be viewed as a long-term investment. There is no secondary market for the Fund’s shares, and it is not anticipated that a secondary market will develop. Thus, an investment in the Fund may not be suitable for investors who may need the money they invest in a specified timeframe. The shares of the Fund are not redeemable. Although the Fund will offer to repurchase at least 5% of outstanding shares on a quarterly basis in accordance with the Fund’s repurchase policy, the Fund will not be required to repurchase shares at a shareholder’s option nor will shares be exchangeable for units, interests or shares of any security. The Fund is not required to extend, and shareholders should not expect the Fund’s Board of Trustees to authorize, repurchase offers in excess of 5% of outstanding shares. Regardless of how the Fund performs, an investor may not be able to sell or otherwise liquidate his or her shares whenever such investor would prefer. The Fund’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses. The amounts and timing of distributions that the Fund may pay, if any, is uncertain. A return of capital to shareholders is a return of a portion of their original investment in the Fund, thereby reducing the tax basis of their investment. As a result of such reduction in tax basis, shareholders maybe subject to tax in connection with the sale of Shares, even if such Shares are sold at a loss relative to the shareholder’s original investment. Shares are speculative and involve a high degree of risk, including the risk associated with below-investment grade securities and leverage.