Voya Diversified Floating Rate Senior Loan Fund Announces Changes to Investment Objectives on or About the Termination of the Forward Agreement on February 28, 2018


TORONTO, June 6, 2016 /CNW/ -  Further to its press release dated March 27, 2013, Aston Hill Capital Markets Inc. (the "Manager"), as the manager of Voya Diversified Floating Rate Senior Loan Fund (the "Fund") (TSX: IFL.UN) announces that, subject to regulatory approval, it will amend the investment objectives of the Fund on or about the termination date of the forward purchase and sale agreement (the "Forward Agreement") entered into between the Fund and The Bank of Nova Scotia. The termination date of the Forward Agreement is February 28, 2018 (the "Termination Date").

Currently the Fund obtains exposure to ISL Loan Trust II (the "Reference Fund") through the Forward Agreement. As a result of changes to the Income Tax Act (Canada) (the "Tax Act"), it is expected that the Forward Agreement will be terminated on or before the Termination Date and the Fund will invest directly in the Reference Fund. The Manager intends to continue to pursue the Fund's investment strategy directly without the Forward Agreement.

As a result of the termination of the Forward Agreement, subject to regulatory approval, the Fund's investment objectives will be amended to delete references to "tax-advantaged" distributions.

The investment objectives of the Fund after the proposed amendments will be to (i) provide monthly cash distributions; (ii) preserve capital; and (iii) generate increased returns in the event that short-term interest rates rise above applicable LIBOR floors, 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 Voya Investment Management Co, LLC and, if applicable, its successor.

Following the termination of the Forward Agreement, distributions paid by the Fund will be characterized primarily as income for tax purposes to the extent they exceed available non-capital losses of the Fund. The termination of the Forward Agreement will not affect the status of the Fund as a "mutual fund trust" under the Tax Act.

The Manager is a wholly-owned subsidiary of Aston Hill Financial Inc. (TSX: AHF). Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, hedge funds and segregated institutional funds. Aston Hill Financial is headquartered in Toronto.

SOURCE Aston Hill Capital Markets Inc.

For further information: please contact your financial advisor, call Aston Hill's Sales and Marketing support line at 416-583-2300 (toll-free at 1-800-513-3868), or visit our website at www.astonhill.ca

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