TORONTO, ONTARIO--(Marketwired - Oct. 28, 2016) - Further to its press release dated August 10, 2016, Brompton Funds Limited (the "Manager"), as manager of Symphony Floating Rate Senior Loan Fund (the "Fund") (TSX:SSF.UN), announces that the Fund's forward agreements (the "Forward Agreement") with The Bank of Nova Scotia were terminated on October 27, 2016 (the "Termination Date"). The Fund now invests directly in the securities portfolio. The Fund will continue to pursue its investment strategy directly without the Forward Agreement.
Based on the October 26, 2016 net asset value per Class A unit and Class U unit of the Fund, respectively, the Manager estimates that the 2016 distributions paid to Class A unitholders and Class U unitholders will be characterized as return of capital. This estimate is based on several assumptions including the estimates of income, gains and losses, fees and expenses of the Fund to the end of 2016. Changes in assumptions could affect the estimate.
In subsequent years, 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.
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.
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 21-member team of experienced credit investment professionals, Symphony manages approximately US$14.9 billion in senior loans and has approximately US$18.2 billion in total assets under management, as at September 30, 2016. Funds sub-advised by Symphony are the top three ranked funds by Lipper over a ten-year period as at September 30, 2016(1) for the senior loan asset class. Symphony is a wholly-owned subsidiary of Nuveen Investments Inc.
(1) Source: Lipper September 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.