Symphony Floating Rate Senior Loan Fund Announces Distributions
TORONTO, July 24, 2020 (GLOBE NEWSWIRE) -- (TSX:SSF.UN) Symphony Floating Rate Senior Loan Fund (the “Fund”) announces monthly distributions for record dates in July through September as follows:
| Ticker | Amount Per Unit | ||
| Symphony Floating Rate Senior Loan Fund (Class A unit) | SSF.UN | $ | 0.04 |
Record Dates and Payment Dates are as follows:
| Record Date | Payment Date |
| July 31, 2020 | August 17, 2020 |
| August 31, 2020 | September 15, 2020 |
| September 30, 2020 | October 15, 2020 |
Symphony Floating Rate Senior Loan Fund announces a distribution in the amount of US$0.04 per Class U Unit for the above noted record and payment dates.
Symphony Floating Rate Senior Loan Fund announces distributions in the amount of Cdn$0.045 per Class C Unit and Class F Unit for the above noted record and payment dates.
The Fund believes that the new distribution level is more appropriate, yet still attractive, given the current market environment for senior loans. The impact of COVID-19 has resulted in a significant decline in LIBOR reducing cash yields on senior loans. Three-month LIBOR has declined by approximately 1.65%, from 1.91% as at December 31, 2019 to 0.26% as at July 21, 2020. The Fund’s portfolio includes senior loans that have LIBOR floors which set a minimum LIBOR rate for the loan and have provided some protection against falling LIBOR rates and the impact on income. This type of loan comprises approximately 36% of the portfolio. The income earned from the senior loan portfolio is impacted by changes to LIBOR and would benefit from increases in LIBOR. Symphony Asset Management (“Symphony”), the Fund’s sub-advisor, has been managing the risk/return profile of the Fund’s portfolio based on ongoing market conditions. Despite lower cash yields across the global yield spectrum, the Fund believes that senior loans continue to be an attractive asset class that offer: (i) capital preservation by being at the top of a company’s capital structure; (ii) growth in income if short-term interest rates on senior loans rise (subject to applicable portfolio senior loan LIBOR floors and credit spreads); and (iii) potential growth in net asset value from a recovery in senior loan prices.
Since inception on November 1, 2011 to June 30, 2020, the Fund’s class A units have paid total cash distributions of $5.57 per unit.
The Fund does not have a fixed distribution, but intends to set periodic distribution targets based on, among other things, the actual and expected returns on the portfolio and the Fund’s estimated expenses. The amount of distributions may fluctuate from month to month and there can be no assurance that the Fund will make any distribution in any particular month.
Unitholders are reminded that the fund offers a distribution reinvestment plan (“DRIP”) which provides holders of Class A and Class U Units with the ability to automatically reinvest distributions, commission free, and realize the benefits of compound growth. Holders can enroll in a DRIP program by contacting their investment advisor.
About Symphony
Symphony Asset Management LLC is the investment manager of Symphony Floating Rate Senior Loan Fund. Backed by an institutional-calibre integrated credit platform and supported by a 25-member team of experienced investment research professionals, Symphony manages approximately US$13.4 billion in senior loans and has approximately US$15.5 billion in total assets under management, as at June 30, 2020. Symphony is an indirect wholly-owned subsidiary of Nuveen LLC, which is a subsidiary of Teachers Insurance and Annuity Association of America.
About Brompton Funds
Founded in 2000, Brompton is an experienced investment fund manager with income focused investment solutions including TSX traded closed-end funds and exchange-traded funds. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email or visit our website at .
You will usually pay brokerage fees to your dealer if you purchase or sell units or shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the units or shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning units or shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about a fund in the public filings available at Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the funds, to the future outlook of the funds and anticipated events or results and may include statements regarding the future financial performance of the funds. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
