ING Floating Rate Senior Loan Fund

The Fund’s investment objectives are to (i) provide tax-advantaged distributions consisting primarily of returns of capital; (ii) preserve capital; and (iii) generate increased returns in the event that short-term interest rates rise, in each case, through exposure to a diversified portfolio consisting primarily of senior, secured floating rate corporate loans and other senior debt obligations of non-investment grade North American borrowers, actively managed by ING Investment Management Co. The Portfolio will consist primarily of senior, secured floating rate corporate loans that are expected to generate increased returns in the event that short-term interest rates rise.

The Fund has two classes of Units: Class A Units and Class U Units. Class A Units (TSX: ISL.UN) are denominated and pay distributions in Canadian dollars. Class U Units (TSX: ISL.U) are denominated and pay distributions in US dollars.

The Fund will not have a fixed distribution policy, but intends to make monthly distributions based on the actual and expected returns on the Portfolio. Given that the majority of the Portfolio will be invested in Senior Loans which are floating rate, returns will vary with changes in interest rates. The Fund’s initial distribution target is expected to be $0.0417 per Unit per month (US $0.0417 in the case of the Class U Units), representing an initial yield on the Unit issue price of 5.0% per annum, consisting primarily of returns of capital which are not immediately taxable but which reduce a Unitholder’s adjusted cost base of its Units.

Performance Update

ING Floating Rate Senior Loan Fund Performance Update - First Quarter 2012
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