Highlights of the judging panel’s findings include:
· The fund is managed by Prospect Capital Management, an SEC registered investment adviser since 2004, with $8.8bn of assets under management as of December 31, 2022.
· Priority Income Fund follows an investment strategy that prioritises investing in Collateralized Loan Obligations (CLOs), which are pools of first lien, floating rate, senior secured loans.
· Priority Income Fund favours disciplined underwriting practices and has selected to collaborate with only 25of the 130 CLO managers that have issued since the credit crisis.
The judging panel’s full report:
Priority Income Fund: Best CLO Closed-End Fund Investor US 2023
Priority Income Fund, a closed-end investment fund, bridges the gap between banks and financial markets to provide the capital American-based businesses need to flourish. The fund is managed by Prospect Capital Management, an SEC registered investment adviser since 2004, with $8.8bn of assets under management as of December 31, 2022.
Priority Income Fund follows an investment strategy that prioritises investing in Collateralized Loan Obligations (CLOs), which are pools of first lien, floating rate, senior secured loans. These loans benefit from a history of benign market default rates, averaging just over two percent over the past 20 years, which translates to a low 0.55 percent average annual market credit loss rate when coupled with a 75 percent historical market recovery rate.
Over the last four years, the Priority portfolio achieved a lower average default rate(0.80 percent) than the market (1.59 percent). Senior secured loans also offer collateral and lender protections through a first lien on assets of the borrower. Priority Income Fund favours disciplined underwriting practices and has selected to collaborate with only 25 of the 130 CLO managers that have issued since the credit crisis. The fund has a nine-year track record of paying consistent income to shareholders. Minimum investments start at $1,000 and the current dividend of 10.91 percent annualised is paid monthly. The CFI.co judging panel announces Priority Income Fund as the 2023 award winner for Best CLO Closed-End Fund Investor (US).
For further information, please contact:
Tel +44 (0)203 137 3679
About Prospect Capital:
Prospect Capital Management is an SEC registered investment adviser that was founded in 1988 (along with its predecessors). Prospect invests across the United States in diversified portfolios by industry, company, and situation, and its proprietary underwriting process and metrics have been developed over more than 30 years and through multiple economic cycles. Prospect has over 100 employees and $8.8 billion of assets under management as of December 31, 2022.
Prospect aims to generate long-term value for investors, portfolio companies, private equity sponsors, and employees through creativity, rigor, perseverance, integrity, and teamwork. With a buy-and-hold mentality, Prospect’s objectives are to preserve capital by making credit and equity-focused investments at reasonable multiples of recurring cashflow, earn attractive current cash yields and long-term capital appreciation while achieving consistent low-volatility returns.
CFI.co is a print journal and online resource reporting on business, economics, and finance. The journal recognises that the traditional distinction between emerging and developed markets is now far less meaningful as world economies converge. Headquartered in London, the world’s most multicultural city, CFI.co covers and analyses the drivers behind that change. Combining the views of leading multilateral and national organisations with thought leadership from some of the world’s top minds – CFI.co’s dedicated editorial team ensures that readers better understand the forces influencing and reshaping the global economy.
About the CFI.co Awards Programme
Each year, CFI.co seeks out individuals and organisations that contribute significantly to the convergence of economies and truly add value for all stakeholders. Reporting from frontlines of economies on the move, CFI.co realises that best practice is to be found throughout the world. The Awards Programme aims to identify and reward excellence wherever it is found. The programme aims to inspire others to further improve their own performance.
69 – 71 Clarendon Road
Hertfordshire WD17 1DS
Phone: +44 203 137 3679
Fax: +44 203 137 5872
Prospect Capital Management
700 S Rosemary Ave, Suite 204-162
West Palm Beach
Phone: +1 212 448-0702