PHILADELPHIA--(BUSINESS WIRE)--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