PHILADELPHIA--(BUSINESS WIRE)--Today, Resource Credit Income Fund (the “Fund,” ticker RCIAX) announced its quarterly distribution of $0.175* as of June 30, 2016. This represents a 7.2 percent distribution and is the fund’s first quarterly distribution, placing it slightly in excess of the Fund’s initial annualized distribution target of 7 percent.** The Fund began trading on April 17, 2015 and closed the quarter as of June 30, 2016 with an inception-to-date total net return of (0.25) percent.
The Fund seeks current income, risk diversification and capital preservation by investing in corporate credit, institutional credit funds, traded business development companies, and structured credit.
Fund Performance as of 6/30/16.
|As of 6/30/16||1-year||3-year||5-year||Since Inception (4/17/15)|
|The Fund with MOP***||(6.3%)||N/A||N/A||(6.8%)|
The Fund’s expense ratio has been deducted from the Fund performance. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. The advisor and the Fund have entered into an Expense Limitation Agreement under which the advisor has agreed contractually to waive its management fees (excluding any incentive fee) and to pay or absorb the ordinary annual operating expenses of the Fund (excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses), to the extent that their management fees plus the Fund’s annual operating expenses exceed respective fees per annum of the Fund’s average daily net assets attributable to 2.59%. For performance information current to the most recent month-end, please call toll-free (866) 773-4120.
This distribution policy is subject to change. The Fund may make distributions that are treated as return of capital. A return of capital may occur for example, when some or all of the money that you invested in a Fund is paid back to you. A return of capital distribution does not necessarily reflect a 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. The final determination of the source and tax characteristics of all distributions in 2016 will be made after the end of the year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates.
*To calculate the quarterly distribution, the Fund’s management will take the income received from the Fund’s portfolio, subtract expenses and divide the result by the total number of shares the Fund’s investors own.
**Target annualized distribution is measured at the Fund level and is not equal to actual returns for an investor. As portfolio and market conditions change, future distributions will vary and target yields may not be obtained in the future. Distributions are not guaranteed.
*** Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 6.5%.
About Resource America
Resource America, Inc. is an asset management company that specializes in real estate and credit investments. The Company's objective is to be best in class among asset managers in the real estate and credit sectors as measured by returns to investors and the quality of the funds and businesses it manages. Resource America's investments emphasize consistent value and long-term returns with an income orientation. Resource America has $22.4 billion in gross assets under management as of March 31, 2016.
A portion of the distributions consist 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 2016 will be made after the end of the year. Shareholders should note that 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 and ALPS Distributors, Inc. are not tax experts and do not offer legal or tax advice. It is recommended that the client consult with an accountant, tax advisor and/or lawyer. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates. There can be no assurance that any investment will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
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.ResourceCreditIncome.com. Read the prospectus carefully before you invest.
The Fund is distributed by ALPS Distributors, Inc. Resource Financial Fund Management, Inc. is a subsidiary of Resource America, a NASDAQ Global Select traded company (NASDAQ: REXI). Resource Financial Management, Inc. 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, exchange-traded funds, interval funds and closed-end funds are subject to management and other expenses, which will be indirectly paid by the Fund. Debt securities are subject to credit risk and interest rate risk. 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. 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. 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 larger, more established organizations.
RRE000368 – 10/31/2016