PHILADELPHIA, Oct. 03, 2019 (GLOBE NEWSWIRE) — Resource Credit Income Fund (the “Fund,” ticker RCIAX) today announced its quarterly distribution of $0.175* per share as of September 30, 2019. This represents a 6.48 percent annualized quarterly distribution. The Fund began trading on April 17, 2015 and closed the quarter as of September 30, 2019 with an inception-to-date cumulative total return of 35.58 percent.
The Fund is a closed-end interval fund that seeks to produce current income and achieve capital preservation with low to moderate correlation to the broader equity markets by investing in direct credit, private credit and public credit investments. To learn more about the Fund, visit www.ResourceAlts.com.
Fund Performance, as of September 30, 2019
| As of 9/30/19 | 1 YR | 3 YR | Since Inception (4/17/15) |
| Credit Income Fund | 3.91% | 8.51% | 7.07% |
ALPS Fund Services, Inc. Resource Credit Income Fund Class A shares.
Performance data quoted represents past performance. Past performance does not guarantee 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 higher or lower than the performance data quoted above. For performance information current to the most recent month-end, please call toll-free (866) 773-4120 or visit www.ResourceAlts.com. Performance information is reported net of the Fund’s fees and expense, but does not include the Fund’s maximum sales charge of 5.75% for Class A shares.
Performance would have been lower if the maximum sales load had been reflected above. Class A gross expenses are 4.40% and net expenses are 4.08%.
Net fees are based on a contractual fee waiver and reimbursement agreement by the Adviser to waive its management fees (excluding any incentive fees) and absorb the ordinary annual operating expenses of the Fund to the extent they exceed 2.59% per annum of daily net assets of Class A through at least January 31, 2021.
The Fund is subject to an incentive fee that is paid in any calendar quarter in which the Fund’s pre-incentive fee net investment income (“investment income”) exceeds 2.25%, equal to 100% of investment income less than or equal to 2.8125% and 20% of investment income, if any, that exceeds 2.8125%.
* To calculate the quarterly distribution, the Fund takes the income received from the Fund’s portfolio, subtracts expenses, and divides the result by the total number of shares owned by the Fund’s shareholders. Distributions are not guaranteed and include a return of capital.
A portion of the distributions consists of a return of capital based on the character of the distributions received from the underlying holdings. The final determination of the source and tax characteristics of all distributions in 2019 will be made after the end of the year. Shareholders should note that a return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. Resource Alternative Advisor, LLC, the Fund’s investment adviser, and ALPS Distributors, Inc. are not tax experts and do not offer legal or tax advice. It is recommended that shareholders consult with an accountant, tax advisor and/or lawyer. There is no assurance that the Fund will continue to declare distributions or that distributions will continue at these rates. There can be no assurance that any investment by the Fund will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
This distribution policy is subject to change. The Fund may make distributions that are treated as a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield,” “income,” or “profit.” The Fund’s distribution amounts were calculated based on the ordinary income received from the underlying investments, including net investment income. Shareholders should not assume that the source of a distribution from the Fund is net profit.
An interval fund is a continuously offered, closed-end fund that periodically offers to repurchase its shares from shareholders. The Fund is classified as “non-diversified” under the 1940 Act. As a result, it can invest a greater portion of its assets in obligations of a single issuer than a “diversified” fund. The Fund may therefore be more susceptible than a diversified fund to being adversely affected by any single corporate, economic, political or regulatory occurrence.
Through the interval structure, the Fund offers a liquidity feature of quarterly redemptions at NAV of no less than 5 percent of the shares outstanding made available, redeeming more frequently than other real estate and private equity investments. Regardless of how the Fund performs, there is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer.
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.
The Resource Credit Income Fund is distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203). Resource Alternative Advisor, LLC (the Fund’s investment adviser), its affiliates, and ALPS Distributors, Inc. are not affiliated.
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.
About Resource
Resource, the marketing name for Resource Alternative Advisor, LLC, the Fund’s investment adviser, and its affiliates, 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 fully integrated asset management and commercial real estate services company, with $4.6 billion in real estate and debt assets under management as of June 30, 2019.
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