Voya Prime Rate TrustFind Ratings Reports
- Last Ratings Update:05/31/2017
- Price as of 05/31/2017 :$5.41
- Net Assets:$857.14 Million
- Peer Rank:25 of 30
- Investment Rating:C-
We rate Voya Prime Rate Trust at C-. Positive factors that influence this rating include a low price volatility. The fund may be considered for investors seeking a Loan Participation strategy.
POSITIVES AND RISKS
Total return ranks below peers over the last three years. The Voya Prime Rate Trust has returned an annual rate of 5.71% since inception. More recently, the fund has generated a total return of 6.22% in the last five years, 4.47% in the last three years, and 10.86% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 44% of them. It has also outpaced 47% of its competitors on a three year basis and 43% of them over the last year for the period ending 5/31/2017. On a year to date basis, PPR has returned -0.99%.
Downside risk has been below average. PPR has a draw down risk of -20.21%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 9.3%. This fund has had a low level of volatility in its monthly performance over the last 36 months. As of 5/31/2017, the fund was trading at a price of $5.41, which is 1.5% below its 52-week high of $5.49 and 0.7% above its 52-week low of $5.37.
High expense ratio hinders performance. On total assets of $857.14 million, PPR maintains a high expense ratio compared to its Loan Participation peers of 2.24% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As PPR is a closed end fund, it has no front end or back end load.
Manager tenure and performance record are net positives. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Voya Prime Rate Trust has been managed by Daniel A. Norman for the last 17 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 82% of other fund managers.