Voya Prime Rate Trust (NYSE: PPR), a diversified closed-end management
investment company listed on the New York Stock Exchange, declared 2.50
cents per share monthly dividend on July 31, 2018 for the 31 days of
July, payable on August 22, 2018 to shareholders of record on August 10,
2018. This represents the 363rd consecutive monthly dividend since the
Trust’s inception in May 1988.
The following are annualized distribution rate calculations based on the
declared dividend for the month, Net Asset Value (“NAV”) at month-end
and the month-end NYSE composite closing price (“Market”).
Voya Prime Rate Trust was the first Fund to invest in a portfolio of
floating rate senior bank loans. The Trust seeks to provide as high a
level of current income as is consistent with the preservation of
capital.
The Trust is managed by Voya Investments, LLC and sub-advised by Voya
Investment Management Co. LLC , and its shares are distributed by Voya
Investments Distributor, LLC. The adviser, the sub-adviser and the
distributor are indirect, wholly-owned subsidiaries of Voya Financial,
Inc. (NYSE: VOYA). The Trust’s operations are based in Scottsdale,
Arizona.
Distribution Rates are calculated by annualizing dividends
declared during the period (i.e., divide the monthly dividend
amount by the number of days in the related month and multiply by the
number of days in the fiscal year) and then dividing the resulting
annualized dividend by the month-ending NAV (in the case of NAV) or the
month-end closing price on the NYSE composite (in the case of Market).
The distribution rate is based solely on actual dividends and
distributions, which are made at the discretion of management. The
distribution rate may or may not include all investment income, and
ordinarily will not include capital gains.
Past performance is no assurance of future results. Investment
return and principal value of an investment in the Trust will fluctuate.
Shares, when sold, may be worth more or less than their original cost.
Principal Risk Factor(s): The Trust invests primarily in below
investment grade, floating rate senior loans that carry a higher
than normal risk that borrowers may default in the timely payment of
principal and interest on their loans, which would likely cause the
value of the Trust’s Common Shares to decrease. Changes in short-term
market interest rates will directly affect the yield on the Trust’s
Common Shares. If such rates fall, the Trust’s yield will also fall. If
interest rate spreads on Trust’s loans decline in general, the yield on
the Trust’s loans will fall and the value of the Trust’s loans may
decrease. When short-term market interest rates rise, because of the lag
between changes in such short term rates and the resetting of the
floating rates on loans in the Trust’s portfolio, the impact of rising
rates will be delayed to the extent of such lag. Because of the limited
secondary market for floating rate senior bank loans, the Trust’s
ability to sell its loans in a timely fashion and/or at a favorable
price may be limited. An increase in the demand for loans may adversely
affect the rate of interest payable on new loans acquired by the Trust,
and it may also increase the price of loans purchased by the Trust in
the secondary market. A decrease in the demand for loans may adversely
affect the price of loans in the Trust’s portfolio, which would cause
the Trust’s NAV to decrease. The Trust’s use of leverage through
borrowings or issuance of preferred shares can adversely affect the
yield on the Trust’s Common Shares. The Trust may invest up to 20% of
its assets in loans to borrowers in countries outside of the U.S. and
Canada. Investment in foreign borrowers involves special risks,
including potentially less rigorous accounting requirements, differing
legal systems and potential political, social and economic adversity.
The Trust may invest up to 15% of its assets in loans that are
denominated in certain foreign currencies, however, the Trust will
engage in currency exchange transactions to seek to hedge, as
closely as practicable, 100% of the economic impact to the Trust arising
from foreign currency fluctuations. Other risks include but are not
limited to: Borrowings; Preferred Shares; Diversification Risks; and
Concentration Risks. Investors should consult the Trust’s
prospectus and Statement of Additional Information for a more detailed
discussion of the Trust’s risks.
For more complete information, or to obtain a prospectus on Voya
Prime Rate Trust, please contact your investment professional or Voya
Investments Distributor, LLC at (800) 992-0180 or www.investments.voya.com.
The prospectus should be read carefully before investing. Consider
the investment objectives, risks, and charges and expenses carefully
before investing. The prospectus contains this information and other
information about the fund.
If you would like to receive this press release via email, please
contact Bonnie Dacier at Bonnie.Dacier@voya.com
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