Investment Management

Becoming Voya™ Investment Management in May 2014

ING Prime Rate Trust

Fund Description

Overview

  • Invests at least 80% of net assets in U.S.-dollar-denominated, floating-rate, secured senior loans
  • Targets top-tier, non-investment grade senior loans seeking to achieve superior long term risk-adjusted returns with lower volatility
  • Uses leverage to enhance return potential

Investment Objective

This Closed-End Fund seeks a high a level of current income, consistent with preservation of capital

Daily Prices as of 04/17/2014

Net Asset Value (NAV) $6.04
Closing Price $5.69
Price Change 0.00
Premium/(Discount) -5.79

Fund Facts

Ticker Symbol PPR
CUSIP 44977W106
Inception Date May 12, 1988
Dividends Paid Monthly

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Management Team

Dan Norman

Managing Director, Group Head

Managed Fund since 2000

Jeff Bakalar

Managing Director, Group Head

Managed Fund since 2000

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Average Annual Total Returns %

As of 03/31/2014 As of 03/31/2014 YTD 1 YR 3 YR 5 YR 10 YR Inception (05/12/88) Gross Exp. Net Exp.
Net Asset Value +1.87 +7.29 +7.01 +16.96 +5.14 —% —%
Market Value +0.69 -3.54 +5.52 +18.11 +3.75    
Net Asset Value +1.87 +7.29 +7.01 +16.96 +5.14 —% —%
Market Value +0.69 -3.54 +5.52 +18.11 +3.75    

View Detailed Performance

Past performance is no guarantee of future results. The performance quoted represents past performance. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. This chart does not take into consideration account transaction fees or brokerage commissions. It is important to note that the Trust has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.

Return @ NAV Total Return at net asset value has been calculated assuming a purchase at net asset value at the beginning of each period and a sale at net asset value at the end of each period and assumes reinvestment of dividends and capital gains distribution, if any, in accordance with the provisions of the dividend reinvestment plan. Total return at net asset value is not annualized for periods less than one year.

Return @ Market Value Total Return at market value measures the change in the market value of your investment assuming reinvestment of dividends and capital gains distributions, if any, in accordance with the provisions of the Fund’s dividend reinvestment plan. Total return at market value is not annualized for periods less than one year.

These figures will differ depending on the level of any discount from or premium to NAV at which the Fund's shares traded during the period.

Principal Risks

All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing.  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.