Symphony Floating Rate Senior Loan Fund
TSX : SSF.UN

Symphony Floating Rate Senior Loan Fund

August 10, 2016 17:04 ET

Symphony Floating Rate Senior Loan Fund Announces Plan for Termination of Its Forward Agreement and Changes to Investment Objectives

TORONTO, ONTARIO--(Marketwired - Aug. 10, 2016) - (TSX:SSF.UN) Further to its press release dated March 26, 2013, Brompton Funds Limited (the "Manager"), as manager of Symphony Floating Rate Senior Loan Fund (the "Fund"), announces that as a result of changes to the Income Tax Act (Canada), the Fund's forward agreements (the "Forward Agreement") with The Bank of Nova Scotia will terminate on or about October 27, 2016, its scheduled termination date (the "Termination Date"). Currently, the Fund obtains exposure to SSF Trust through the Forward Agreement and, following the Termination Date, the Fund will invest directly in the securities currently held in the underlying portfolio held by SSF Trust. The Manager intends to continue to pursue the Fund's investment strategy directly without the Forward Agreement.

As a result of the termination of the Forward Agreement, subject to regulatory approval, the Fund's investment objectives will be amended to delete references to "tax-advantaged" distributions.

Subject to regulatory approval, the Manager expects, on or about the Termination Date, that the Fund will amend its declaration of trust and other related documents to reflect the termination of the Forward Agreement, including the investment objectives of the Fund which are expected to be: (i) to provide monthly distributions; and (ii) to preserve capital through investment in an actively managed, diversified portfolio consisting primarily of short-duration floating rate senior corporate debt instruments, including senior secured loans and other senior debt obligations of North American non-investment grade corporate borrowers.

Following the Termination Date, distributions paid by the Fund are no longer expected to be characterized primarily as capital gains or returns of capital but rather a portion of distributions will be characterized as ordinary income, although the Fund may still distribute capital gains or returns of capital in the future even without exposure to forward contracts. The termination of the Forward Agreement will not affect the status of the Fund as a "mutual fund trust" under the Income Tax Act (Canada). Assuming that the Forward Agreement is terminated based on the June 30, 2016 net asset value per Class A unit and Class U unit of the Fund, respectively, the Manager estimates that the 2016 distributions to Class A unitholders will be comprised of return of capital and the 2016 distributions to Class U unitholders will be comprised of capital gains and will include a special distribution of approximately US$0.93 per Class U unit. This estimate is based on several assumptions including the net asset value of SSF Trust on the Termination Date and estimates of income, gains and losses, fees and expenses of the Fund to the end of 2016. Changes in assumptions could significantly affect the estimate.

The termination of the Forward Agreement will save the Fund 0.45% annually in fees which will be available to grow the net asset value or for increased distributions. All other fees remain the same.

About Brompton Funds

Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2.0 billion in assets under management. Brompton's investment solutions include TSX listed closed-end funds, mutual funds, hedge funds and flow-through limited partnerships. 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 info@bromptongroup.com or visit our website at www.bromptongroup.com.

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 22-member team of experienced credit investment professionals, Symphony manages approximately US$14.3 billion in senior loans and has approximately US$17.5 billion in total assets under management, as at June 30, 2016. Funds sub-advised by Symphony are the top three ranked funds by Lipper over a ten-year period as at June 30, 2016(1) for the senior loan asset class. Symphony is a wholly-owned subsidiary of Nuveen Investments Inc.

(1) Source: Lipper June 30, 2016 Monthly Report provided to Nuveen Investments Inc. Rankings should not be construed as a statement of client experience or endorsement. Ranking is based on annual total returns across the 15 funds in the Loans Participation Fund category which had at least 10 years of operating history as at the date of the ranking.

You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an "exchange"). If the units 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 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 the Fund in the public filings available at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. 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.

Contact Information