Symphony Floating Rate Senior Loan Fund Announces Distributions
TORONTO, Jan. 24, 2025 (GLOBE NEWSWIRE) -- (TSX: SSF.UN) – Brompton Funds (the “Manager”) announces monthly distributions for record dates from January to March 2025 for the class A units (the “Class A Units”) and class U units (the “Class U Units”) of Symphony Floating Rate Senior Loan Fund (the “Fund”):
Ticker |
Amount Per Class A Unit |
|
Symphony Floating Rate Senior Loan Fund (Class A Unit) | SSF.UN | $0.045 |
Record Dates and Payment Dates are as follows:
Record Date | Payment Date |
January 31, 2025 | February 14, 2025 |
February 28, 2025 | March 14, 2025 |
March 31, 2025 | April 14, 2025 |
The new distribution rate for the Class A Units of the Fund amounts to $0.54 per annum, or a 7.8% yield based on the TSX closing price of $6.95 on January 23, 2025. The Manager believes that the new distribution level is still very attractive and better reflects the current environment for senior loans and fixed income more broadly. Income earned from senior loans in the Fund’s portfolio is impacted by changes to the secured overnight financing rate (SOFR), a reference rate for interest payments on floating rate senior loans, which has declined by 1.03% from 5.38% on September 16, 2024 to 4.35% on January 23, 2025.
The Fund announces a distribution in the amount of US$0.045 per Class U Unit for the above noted record and payment dates, representing a distribution rate of 7.7% of net asset value (“NAV”) per annum based on a NAV of US$7.04 on January 23, 2025.
Senior loans continue to deliver high levels of current income while insulating investors from traditional interest rate risk. In 2024, the Class A Units returned 11.5%, and the Class U Units returned 11.8% outperforming the Credit Suisse Leveraged Loan Index by 2.4% and 2.7%, respectively.
The Class A Units have paid 158 consecutive monthly distributions since inception on November 1, 2011 for total distributions of $8.07 per Class A Unit. The Class U Units have paid 158 consecutive monthly distributions since inception on November 1, 2011 for total distributions of US$7.99 per Class U Unit. Unitholders are reminded that the Fund offers a distribution reinvestment plan (“DRIP”) on the Class A Units and Class U Units which provide unitholders with the ability to automatically reinvest distributions, commission free, and realize the benefits of compound growth. Unitholders can enroll in a DRIP program by contacting their investment advisor.