Royal Fund Management LLC has significantly increased its investment in the iShares Floating Rate Bond ETF (BATS:FLOT), raising its holdings by an impressive 840.3% during the second quarter of 2023. According to the firm’s most recent Form 13F filing with the U.S. Securities and Exchange Commission (SEC), Royal Fund Management now owns 52,262 shares of the ETF, having acquired an additional 46,704 shares during the period. The total value of these holdings stands at approximately $2.67 million.
This substantial increase comes amidst a broader trend among various hedge funds in the investment landscape. Other firms have also made notable adjustments to their stakes in the iShares Floating Rate Bond ETF. For instance, Northern Trust Corp raised its position by 11.0% in the first quarter, now holding 4,530,501 shares valued at around $231.28 million after adding 447,443 shares.
Franklin Resources Inc. also expanded its investment, increasing its stake by 10.8% in the second quarter. The company now owns 3,209,096 shares worth approximately $163.73 million, following the acquisition of 313,769 shares during the last quarter. Similarly, Ameriprise Financial Inc. raised its position by a remarkable 143.4% in the first quarter, owning 2,611,975 shares valued at about $133.01 million.
Additional increases came from firms such as Glenview Trust Co, which raised its stake by 4.0%, and Royal Bank of Canada, which boosted its holdings by 59.0% during the first quarter. Royal Bank now possesses 2,351,795 shares valued at $120.06 million after purchasing an additional 872,352 shares.
Current Performance of the iShares Floating Rate Bond ETF
As of the latest trading session, the iShares Floating Rate Bond ETF opened at $50.90. The fund has demonstrated stability, with a fifty-day moving average of $50.96 and a two-hundred-day moving average of $50.95. Over the past year, the ETF has experienced a low of $49.75 and a high of $51.34.
The iShares Floating Rate Bond ETF is designed to primarily invest in investment-grade fixed income securities. Specifically, it tracks a market value-weighted index of USD-denominated, investment-grade floating rate notes with maturities ranging from 0-5 years. Launched on June 14, 2011, the ETF is managed by BlackRock, a prominent player in the asset management industry.
In conclusion, the aggressive investment strategy of Royal Fund Management and other hedge funds highlights a growing interest in floating rate bonds and the potential for yield in a fluctuating interest rate environment. The continued engagement of major financial institutions in the iShares Floating Rate Bond ETF underscores its relevance in the current market landscape.
