FLRN provides solid exposure to broad investment-grade floating-rate notes. FLRN holds floating-rate notes that mature in five years or less, a majority of which are based on the 3-month LIBOR, with a fixed spread. As would be expected from a portfolio of floating-rate notes, the fund has minimal exposure to interest-rate move. FLRN excludes bonds with equity-linked features, such as warrants and convertibles, as well as inflation-linked bonds and securitized bonds. The market-value-weighted index is rebalanced monthly. FLRN is subject to LIBOR risk, this benchmark rate is intended to be phased out by the end of 2021 and there remains uncertainty regarding the LIBOR and the nature of any replacement rate.