Prospect Fund Extends Fee Waiver
The fund locks in zero advisory fees through 2026 while maintaining a 10% annualized yield target.
July 28, 2025
Prospect Floating Rate and Alternative Income Fund Backs Shareholders with Cost Relief and Distributions
Prospect Floating Rate and Alternative Income Fund, Inc. is holding firm on cost control. The fund has extended its expense waiver through the end of 2026, keeping its advisory fee at zero percent. That waiver also covers certain operating expenses, with no future reimbursement to the adviser—so the cost savings stay with shareholders.
At the same time, the fund is moving ahead with monthly cash distributions. For July and August 2025, shareholders will receive:
- $0.03428 per share in July
- $0.04285 per share in August
These amounts apply to both Class A and Class I shares and reflect a 10% annualized distribution target, based on the fund’s net asset value for the quarter ending March 31.
Each payout has a record date tied to the last Friday of the month, with payments issued the following week. The fund will continue updating shareholders quarterly with estimates on the taxable portion of each distribution. Final tax details will come via Form 1099-DIV after year-end.
Distribution Sources and Flexibility
There’s flexibility in how these distributions get funded. The fund may use:
- Net investment income
- Capital gains
- Borrowings
- Proceeds from asset sales
- Reimbursements from Prospect Capital Management
Some distributions may ultimately include a return of capital , depending on how earnings align across the fiscal year.
Taken together, the expense waiver and monthly payouts give shareholders a clear picture: Prospect is focused on controlling costs and maintaining consistent income.
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