“When we think about how we measure the achievements of the Fund, we pay a great deal of attention to risk-adjusted metrics such as Sharpe and Sortino ratios, and correlations to traditional asset classes,” said Portfolio Manager
With more than
LCM is a pioneer in the burgeoning closed-end interval fund industry, which has quickly grown to
The Fund features four total share classes. In addition to the A share class (NASDAQ: MSFDX), the Fund is available in Class C (NASDAQ: MCFDX), Class I (NASDAQ: MSFIX), and Class L (NASDAQ: MSFYX) shares. All three additional share classes were added after the Fund's inception to provide investors with alternative fee structures and entry price points.
The Fund gives investors access to alternative income strategies that may provide greater yields and growth opportunities than traditional investment strategies. It invests primarily in real estate, both private and public debt and equity income securities, and alternative investment funds. The primary objective of the Fund is current income generation, with a secondary objective of achieving long-term growth.
To learn more about
Standard Deviation: A statistical measurement of the variation of returns from an average historical return as a percentage. A high standard deviation generally indicates higher volatility of returns.
Beta: A measure of a fund's sensitivity to market movements. The beta of the market or index (being used for comparative purposes) is 1.00 by definition. It is important to note that a low beta for a fund does not necessarily imply that the fund has a low level of volatility. A low beta signifies only that the fund's market-related risk is low.
Alpha: A measure of the difference between a fund's actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates the fund's underperformance, given the expectations established by the fund's beta. Alpha can be used to directly measure the value added or subtracted by a fund's manager.
S&P 500 Index: An index of 500 stocks chosen for market size, liquidity, and industry grouping (among other factors). It is designed to be an indicator of
Investors cannot directly invest in an index, and unmanaged index returns do not reflect any fees, expenses, or sales charges.
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 policy is to make monthly distributions to shareholders. The level of monthly distributions (including any return of capital) is not fixed, but is expected to represent an annual rate of approximately 6.00% of the Fund's current net asset value per share. However, this distribution policy is subject to change. Shareholders receiving periodic payments from the Fund may be under the impression that they are receiving net profits. However, all or a portion of a distribution may consist of a return of capital. Shareholders should not assume that the source of a distribution from the Fund is net profit.
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. 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. Even though the Fund will make quarterly repurchase offers, there is no guarantee that investors will be able to redeem all shares they desire, as such, investors should consider the Fund's shares illiquid.
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. 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
a.) As measured by standard deviation
b.) See Definitions section at the end of this release for further context on these metrics
c.) Data from
Assets Under Management: As of
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