Resource Credit Income Fund (RCIAX) Announces Quarterly Distribution
08 July 2016 - 12:00AM
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
(0.3%) N/A N/A
(0.3%) 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
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version on businesswire.com: http://www.businesswire.com/news/home/20160707005772/en/
Media Contact:Gregory FCA for Resource Real EstateJimmy
Moock, 610-228-2125jimmy@gregoryfca.comorCompany
Contact:Resource Real EstateMarianne McGuire,
267-256-5964Director of Marketingmmcguire@resourcerei.com
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