To provide monthly tax-advantaged distributions consisting primarily of return of capital, and to preserve capital.
The Fund was created to invest in an actively managed, diversified portfolio consisting primarily of short-duration floating rate senior corporate instruments, including senior loans and other senior debt obligations of North American non-investment grade corporate borrowers.
A diversified portfolio consisting primarily of short-duration floating rate senior secured loans from 100 – 150 issuers, with broad investor following and support from top-tier underwriters, from approximately 20 industries. Up to 20% of the portfolio may be invested in other non-investment grade corporate debt instruments including second lien loans and high-yield bonds.
- Focus on Liquid Loans: Excess returns through active trading in the larger more liquid segment of the loan market.
- Fully Integrated Platform: Industry specialists conduct research across the entire capital structure.
Identify and Avoid Risk: Seek out attractive investments; also actively avoid unattractive sectors and companies.
The Fund may borrow up to 40% of total assets for the purpose of acquiring assets for the portfolio. Initially, the Fund is expected to employ leverage of approximately 35% of total assets.
Annually on the second last business day of March, beginning in 2013, provided units are tendered by the last business day of January. Units may be redeemed at the option of unitholder by tendering units of the Fund by the last business day of January, beginning in 2013, for redemption on the second last business day of March ("Redemption Valuation Date"). Redemption of tendered units will be settled based on net assets per unit per unit on the Redemption Valuation Date, less associated costs of the redemption, including brokerage costs. Units tendered for redemption will be redeemed effective the Redemption Valuation Date and will be settled on or before the tenth business day of April, subject to the Manager's right to suspend redemptions in certain circumstances. For purposes of calculating the net asset value per unit, the value of any debt obligations comprising the portfolio will be equal to the bid price on the Valuation Date and the value of any equities will be equal to the weighted average trading price of such securities over the last three business days of March.