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Full Circle Advisors, LLC Announces Launch of The BDC Income FundOpen-End Mutual Fund Which Will Primarily Invest in the Equity Securities of Publicly-Traded Business Development Companies (BDCs)

Dec 08, 2014 - Business Wire

Full Circle Advisors, LLC ("Full Circle Advisors") has announced the launch of The BDC Income Fund (the "Fund"), an open-end mutual fund which will primarily invest in equity securities of publicly-traded Business Development Companies (BDCs) and intends to make quarterly distributions to investors. The Fund's investment strategy will primarily focus on income-oriented BDCs, providing investors access to the BDC sector with the benefit of daily liquidity and active professional management.

BDCs, which were created by Congress in 1980 to increase the flow of capital to small and mid-sized U.S. businesses, are Regulated Investment Companies that are required to distribute at least 90% of their taxable income to investors. While the majority of BDCs primarily originate loans to privately-held, middle market U.S. businesses, some also make equity investments and invest in other asset classes, such as broadly syndicated loans and the equity and debt tranches of Collateralized Loan Obligations (CLOs). Similar to REITs (Real Estate Investment Trusts) and MLPs (Master Limited Partnerships), BDCs that distribute all of their taxable income are not taxed at the corporate level...