The Flat Rock Opportunity Fund (FROPX) provides exposure to a highly diversified pool of first lien loans through CLO Equity. The Fund’s investment objective is to generate current income and, as a secondary objective, long-term capital appreciation.
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.
| 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 Opportunity FundFROPX | 16.21% | 9.60% | 12.86% | 11.97% | |
| S&P 500 IndexS&P 500 Index | 36.24% | 11.90% | 15.96% | 14.64% | |
| Bloomberg US High Yield IndexBlmbrg. US HY Index | 15.70% | 3.10% | 4.71% | 5.22% | |
| Morningstar Leveraged Loan IndexMstar. Lev. Loan Index | 9.57% | 6.46% | 5.74% | 5.38% |
– Fund Perf. (Net): Fund Performance (Net)
– YTD: Year to date
– Ann. Ret. From Incep.: Annual Return from Inception
– STD From Incep.: Standard Deviation from Inception
– Blmbrg. US HY Index: Bloomberg US High Yield Index
– Mstar. Lev. Loan Index: Morningstar Leveraged Loan Index
FROPX fund inception 7/2/17
Performance data as of 9/30/24
Gross expense ratio: 8.47%, 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.
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. Total Annual Expense ratio: 8.73%. In 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 The expense waiver is no longer in effect.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 FROPX below.
2022 finalist award based on 2021 returns in the Creditflux database among 29 funds in the category. 2021 finalist award based on 2020 returns in the Creditflux database among 25 funds in the category. 2020 Winner based on 2019 returns in the Creditflux database among 16 funds in the category.
Crediflux conducts analysis using data submitted to their CLO-I, credit hedge funds and Funds Data databases to determine winners. 2020 award based on 2019 returns in the Creditflux CLO fund database, 2021 finalist award based on 2020 returns in the database.
Glossary: Correlation is a mutual connection or relationship between two or more variables. Standard Deviation is measure that provides the dispersion around a mean. The Bloomberg Barclays US Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. The S&P / LSTA Loan Index is a market value weighted index designed to measure the performance of the U.S. leveraged loan market.
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. This Fund is distributed by Ultimus Fund Distributors, Inc.
Risk: 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. Our shares have no history of public trading, nor is it intended that our shares will be listed on a national securities exchange at this time, if ever. No secondary market is expected to develop for our shares; liquidity for our shares will be provided only through quarterly repurchase offers for no less than 5% of and no more than 25% of our shares at net asset value, and there is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. Due to these limited restrictions, an investor should consider an investment in the Fund to be of limited liquidity. Investing in our shares may be speculative and involves a high degree of risk, including the risks associated with leverage. Investing in the Fund involves risks, including the risk that shareholder may lose part of or all of their investment. We intend to invest primarily in the equity and, to a lesser extent, in the junior debt tranches of CLOs that own a pool of senior secured loans. Our investments in the equity and junior debt tranches of CLOs are exposed to leveraged credit risk. Investments in the lowest tranches bear the highest level of risk. We may pay distributions in significant part from sources that may not be available in the future and that are unrelated to our performance, such as a returns of capital or borrowing. The amount of distributions that we may pay, if any, is uncertain.