The Fund has been established to provide holders of units with a stable source of tax-advantaged income through exposure to the performance of an actively managed, diversified portfolio comprised primarily of first lien floating rate senior secured loans of non-investment grade North American issuers.
The Fund will seek to achieve the following objectives:
- provide holders of units with attractive, quarterly, tax-advantaged distributions, initially targeted to be $0.125 per quarter representing an annual yield of 5% based on the original issue price of $10.00 per Unit;
- preserve capital; and
- generate enhanced returns through increasing cash flow to the portfolio as interest rates rise.
It is expected that quarterly distributions received by Unitholders will consist primarily of returns of capital for tax purposes.
