The Board of Voya Prime Rate Trust is committed to providing shareholders with a high level of current income from a pure-play senior loan investment strategy. Long-term shareholders have enjoyed the benefits of that investment program. Every month since the Fund's inception in 1988 – 383 months in total – the Fund has paid a dividend, and, for the last decade, over 99% of the Fund's distributions have been paid from a combination of income and capital gains earned by the Fund.
As of April 30th, the Fund's discount to net asset value is narrower than 81% of the funds in the Closed-End Fund Bank Loan Category and 3% narrower than the category peer median.
Your Board recognizes the Fund's strategy is particularly important during today's uncertain markets. The Fund is managed to outperform in periods of increased risk relative to more aggressively positioned peers, enabling it to maintain steady dividends even in down markets. In fact, in three periods of significantly increased volatility and market drawdowns (Q4 2018, energy sector sell-off 2014-2016, Financial Crisis 2007-2009), its performance ranked in the top quartile of its Morningstar category.
You may receive multiple letters from Saba Capital Management, a hedge fund manager trying to take control of your Fund and focused on generating short-term profits for themselves at your expense.
Here are the facts:
⬛Voya Prime Rate Trust is designed for long-term shareholders seeking current income from senior loans, not hedge funds seeking short-term profits by influencing the trading price of the Fund's shares.
⬛Your Board has extensive qualifications, experience and a fiduciary obligation to represent the interests of ALL shareholders – not just Saba.
⬛Your Board is committed to enhancing value for all shareholders and continues to consider a range of options that may potentially benefit shareholders more broadly under a greater variety of market conditions and that may well have a less disruptive effect on the Fund's shareholders and its operations.
⬛Saba has a long history of taking significant positions in closed-end investment companies and engaging in aggressive activities, such as proposing a self-tender offer, that are counter to the interests of long- term shareholders who desire continuous income.
⬛Their activist agenda is particularly self-serving in light of the current market turmoil, which has greatly affected the prices and liquidity of senior loans such as the types in which the Fund invests.