The board of trustees of the Blackstone/GSO Long-Short Credit Income Fund (BGX) has approved a change in the fund’s investment guidelines.
The change will increase the fund’s ability to invest in long investments while maintaining the limit of the fund’s short investments as a percentage of net assets.
The new investment guidelines will not specifically limit the fund’s long investments. The fund’s short positions, either directly or through the use of derivatives, will continue to be limited to up to 30 per cent of the fund’s net assets.
These guidelines will replace the fund’s previous guidelines, which limited the fund’s long positions to 150 per cent of the fund’s net assets and the fund’s aggregate long and short positions to 160 per cent of the fund’s net assets.
In considering the approval of the new investment guidelines, the fund’s board of trustees noted that the fund’s exposure to long investments will still be effectively limited by the leverage limitations set forth in the fund’s prospectus. Specifically, the fund’s total leverage and short sales exposure will not exceed 40 per cent of the fund’s total assets (the equivalent of 67 per cent of the fund’s net assets).
The change in the fund’s investment guidelines is currently intended to take effect on 3 January 2017.