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:

Record Dates and Payment Dates are as follows:

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 [email protected] or visit our website at www.bromptongroup.com.

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