Today, Resource Credit Income Fund (the “Fund”), a closed-end
interval fund managed by Resource Alternative Advisor, LLC
(“Resource”), celebrates its third anniversary, distinguishing its
track record in the credit interval fund universe. The Fund also
exceeded $100 million in assets under management (AUM), with $102.4
million AUM as of March 31, 2018.
As investors re-think their fixed-income allocation amid
heightening market volatility and rising interest rates, the Fund
offers a core portfolio replacement for traditional credit
products, which may continue to struggle in the current market
backdrop. With the majority of assets invested in senior secured,
floating-rate loans,* the Fund seeks to generate incremental
interest income as interest rates rise.
The Fund’s actively-managed, income-focused strategy aims to
capture opportunities across the credit universe, including
corporate loans and bonds, private credit funds, and traded
business development companies. The Fund seeks to offer income,
capital preservation, diversification, and low-to-moderate
correlation with quarterly liquidity.**
“The surge of volatility this year has reminded investors of the
need for fixed income in their portfolio. Fixed income produces
current income, but also provides a ballast against the ups and
downs of the stock market. However, with Fed policy and government
deficit spending pressuring global interest rates, it would be hard
to craft a more challenging backdrop for traditional fixed-income
products,” noted the Fund’s Portfolio Manager Mike Terwilliger.
“The Resource Credit Income Fund seeks to deliver what investors
may be missing from traditional bonds: risk mitigation in relation
to rising interest rates. Additionally, the Fund’s interval fund
structure may help generate higher returns and better preservation
of principal through quarterly redemptions.”
Per Annum Fund Performance as of 3/31/18.
As of 3/31/18 1-year Since 10/27/15*** Since
Inception (4/17/15) The Fund 5.24 % 9.88 % 7.97 % The Fund with
MOP**** -0.82 % 6.89 % 5.53 % S&P/LSTA 4.43 % 5.56 % 4.05 %
Barclays US Agg 1.20 % 1.43 % 1.05 %
ALPS Fund Services, Inc. Resource Credit Income Fund Class A
shares; Bloomberg. S&P/LSTA Leveraged Loan Total Return Index,
Barclays U.S. Aggregate Total Return Value Index.
Performance data quoted represents past performance. Past
performance is no guarantee of future results and investment
returns and principal value of the Fund will fluctuate so that
shares, when redeemed, may be worth more or less than their
original cost. Current performance may be lower or higher than
the performance data quoted above. Performance information is
reported net of the Fund’s fees and expenses. The Fund’s gross
expenses are 6.25% and net expenses are 3.94%. Net fees are based
on a contractual fee waiver and reimbursement agreement of 17.01%
through at least January 31, 2019. Please review the Fund’s
prospectus for more information regarding the Fund’s fees and
expenses. Performance and expenses shown are for Class A shares
(please see the Fund’s prospectus for information about other share
classes). For performance information current to the most recent
month-end, please call toll-free (866) 773-4120 or visit
www.ResourceAlts.com.
* Data as of 3/31/18. 80% of the Fund is invested in senior
secured assets, and 78% of the Fund is allocated to floating-rate
assets.
** The Resource Credit Income Fund’s investment objectives are
to produce current income and achieve capital preservation with
moderate volatility and low to moderate correlation to the broader
equity markets.
*** Data represents performance since the date the Fund began
actively investing in non-cash holdings.
**** Maximum Offering Price (MOP) for Class A shares includes
the Fund’s maximum sales charge of 5.75%.
Definitions
The S&P/LSTA Leveraged Loan Total Return Index is a
market value-weighted index designed to measure the performance of
the U.S. leveraged loan market based upon market weightings,
spreads, and interest payments.
The Barclays U.S. Aggregate Total Return Value Index is a
broad-based flagship benchmark that measures the investment grade,
U.S. dollar-denominated, fixed-rate taxable bond market. The index
includes Treasuries, government-related and corporate securities,
MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS
(agency and non-agency).
Resource Credit Income Fund Risk Disclosures
An investor should consider the investment objectives, risks,
charges and expenses of the Fund carefully before investing. To
obtain a prospectus containing this and other information, please
call (866) 773-4120 or download the file from
www.ResourceAlts.com. Read the prospectus carefully
before you invest.
Investing involves risk. Investment return and principal value
of an investment will fluctuate, and an investor’s shares, when
redeemed, may be worth more or less than their original cost.
Alternative investment funds, ETFs, interval funds, and closed-end
funds are subject to management and other expenses, which will be
indirectly paid by the Fund. Debt instruments are subject to credit
risk and interest rate risk and may be subordinated to more senior
debt instruments. BDCs often use leverage to enhance returns and
are subject to interest rate risk, credit risk, and liquidity risk.
CLOs are debt instruments but also carry additional risks related
to the complexity and leverage inherent in the CLO structure. The
use of leverage, such as borrowing money to purchase securities,
will cause the Fund to incur additional expenses and 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. Shares of
the Fund will not be listed on any securities exchange, which makes
them inherently illiquid. An investment in the Fund’s shares is not
suitable for investors who cannot tolerate risk of loss or who
require liquidity, other than the liquidity provided through the
Fund’s repurchase policy. The Fund’s distributions policy may,
under certain circumstances, have certain adverse consequences to
the Fund and its shareholders because it may result in a return of
capital, resulting in less of a shareholder’s assets being invested
in the Fund, and, over time, increase the Fund’s expense ratio. Any
invested capital that is returned to the shareholder will be
reduced by the Fund’s fees and expenses, as well as the applicable
sales load. Limited liquidity is provided to shareholders only
through the Fund’s quarterly repurchase offers, regardless of how
the Fund performs. Investments in lesser-known, small and medium
capitalization companies may be more vulnerable than larger, more
established organizations. The sales of securities to fund
repurchases could reduce the market price of those securities,
which in turn would reduce the Fund’s NAV.
Private Investment Funds and Public Investment Funds in which
the Fund invests will use derivatives (consisting of forwards,
options, repurchase agreements, futures, warrants, and swaps) to
enhance returns or hedge against market declines, and the Fund may
also invest in options of Public Investment Funds to hedge against
market declines.
The Fund is distributed by ALPS Distributors, Inc. (ALPS
Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203).
Resource Alternative Advisor, LLC is a subsidiary of Resource
America, Inc. Resource Alternative Advisor, LLC is not affiliated
with ALPS Distributors, Inc.
About Resource
Resource, the parent company of Resource Alternative Advisor,
LLC, the Fund’s investment advisor, is an asset management company
that specializes in real estate and credit investments. Resource’s
main objective is to be a best-in-class asset manager as measured
by risk-adjusted returns to investors and the quality of the funds
and businesses it manages. The company’s investments emphasize
consistent value and long-term returns with an income orientation.
Resource is a wholly-owned subsidiary of C-III Capital Partners
LLC, a leading real estate investment management and commercial
property services company, with over $8.8 billion in assets under
management as of December 31, 2018.
RRE000838– 6/30/18
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version on businesswire.com: https://www.businesswire.com/news/home/20180417005471/en/
Media Contact:Kevin InfantePhone: 212-729-2442Email:
Kevin.Infante@edelman.comorCompany Contact:Jared
TrexlerPhone: 215-988-6787Email: jtrexler@resourcealts.com
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