June 30, 2017 – Lucia Capital Management, the San Diego-based investment adviser, announced the latest monthly distribution of its interval fund, the Multi-Strategy Growth & Income Fund (the “Fund”). The Fund’s board of directors declared a monthly distribution representing a 6% annualized rate per share class, as follows:
- $0.0771 for Class A-shares
- $0.0756 for Class C-shares
- $0.0780 for Class I-shares
- $0.0761 for Class L-shares
As of the close of trading on June 28, 2017, the distribution was payable to shareholders of record on June 29, 2017. Class A-share distributions now represent 29.6% in total distributions since inception.
Fund performance is made up of two aspects: distributions received and growth of principle. For the Class A-share, total return performance for the month of June was (1.05)%; calendar year-to-date performance was 0.88%. Trailing 1-year performance is 4.02%, 3-year is 2.53%, 5-year is 6.27%, and since inception is 5.78%.
For further detail on performance (including since inception) and distribution history, click here.
About the Multi-Strategy Growth & Income Fund
The Multi-Strategy Growth & Income Fund is registered as a continuously offered, closed-end interval fund that offers quarterly redemptions of up to 5% of shares outstanding. It allows investors diversification in several potentially income-producing alternative strategies at a low minimum investment while providing limited liquidity.
The Fund seeks a multi-strategy approach to investing by diversifying assets across various alternative investments, including real estate investment trusts (REITs), equity income investments, and business development companies (BDCs), with the overall goal of providing a consistent quarterly distribution. However, there is no assurance that the Fund will achieve its objectives, generate profits, or avoid losses.
The Fund gives investors access to alternative income strategies that may provide greater yields and growth opportunities than traditional investment strategies. The primary objective of the Fund is current income generation. The secondary objective of the Fund is to achieve long-term growth.
The Fund intends to make a distribution to its shareholders each month of the net investment income of the Fund after payment of the Fund’s operating expenses.
To learn more about the Multi-Strategy Growth & Income Fund (855) 601-3841 or visit Multi-Strategy Growth & Income Fund.
There is no assurance that the Fund will achieve its investment objective.
The Fund’s distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that an unanticipated change in market conditions or other unforeseen factors will not result in a change in the Fund’s distribution rate at a future time. The Fund’s distribution amounts were calculated based on the ordinary income received from the underlying investments, including short-term capital gains realized from the disposition of such investments. A portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily real estate investment trusts.
Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers of up to 5% of the shares outstanding at net asset value. Volatility is a statistical measure of the dispersion of returns for a given security or market index. Commonly, the higher the volatility, the riskier the security. Volatility is unpredictable, and as a result the investments listed above are subject to market fluctuations and risks.
Closed-end funds involve risk, including the possible loss of principal. Alternative investment funds, ETFs, mutual funds, and closed-end funds are subject to management and other expenses, which will be indirectly paid by the Fund. Issuers of debt securities may not make scheduled interest and principal payments, resulting in losses to the Fund. Typically, a rise in interest rates causes a decline in the value of fixed-income securities. Lower-quality debt securities, known as “high-yield” or “junk” bonds, present greater risk than bonds of higher quality, including increased default risk and non-diversification risk, as the funds are more vulnerable to events affecting a single issuer. The use of leverage, such as borrowing money to purchase securities, will cause the Fund to incur additional expenses and will magnify the Fund’s gains or losses. There currently is no secondary market for the Fund’s shares, and the Fund expects that no secondary market will develop. Very limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers. Investments in lesser-known, small- and medium-capitalization companies may be more vulnerable than those in larger, more established organizations. The Fund will not invest in real estate directly, but, because the Fund will concentrate its investments in securities of REITs, its portfolio will be significantly impacted by the performance of the real estate market. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s NAV. The value of a structured note will be influenced by time to maturity; type of note; market volatility; changes in the issuer’s credit quality rating; and economic, legal, political, or geographic events that affect the reference index.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Multi-Strategy Growth & Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (855) 601-3841. The prospectus should be read carefully before investing.
The Multi-Strategy Growth & Income Fund is distributed by Northern Lights Distributors, LLC, member FINRA. Raymond J. Lucia Jr. and Lucia Capital Management are not affiliated with Northern Lights Distributors, LLC.
[i] Interval Fund: An interval fund is a type of investment company that periodically offers to repurchase its shares from shareholders. That is, the fund periodically offers to buy back a stated portion of its shares from shareholders. Shareholders are not required to accept these offers and sell their shares back to the fund. (Source)