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Destra Multi-Alternative Fund

A Shares

  • ticker: MSFDX
  • cusip: 250 65A 106

    I Shares

    • ticker: MSFIX
    • cusip: 250 65A 205

C Shares

  • ticker: MCFDX
  • cusip: 250 65A 403

T Shares

  • ticker: MSFYX
  • cusip: 250 65A 304

Portfolio Managers

Pinhook Capital, LLC is an SEC registered investment advisor specializing in multi-asset investment solutions with an emphasis on alternative strategies. In total, Pinhook manages roughly $600 million in discretionary and non-discretionary assets under management.

Investment Objective

The Multi-Alternative Fund (“the Fund”) is a continuously offered, diversified, closed-end interval fund featuring a monthly distribution and quarterly redemption offers of no less than 5% of shares outstanding*. The Fund seeks to achieve long-term performance non-correlated to the broad stock and bond markets. It invests primarily in real estate investment trusts, debt and equity income securities, and alternative investment funds.

Investment Process

Risk Management

Available in four unique share classes, the Fund gives investors access to alternative income strategies that may provide greater yields and growth opportunities than traditional investments without requiring the high minimum investment that such strategies often entail.

The Fund aims to maximize risk-adjusted returns and therefore does not try to directly compete with stocks or bonds. Instead, it consists of investments with low correlations to these traditional asset classes, seeking to lower overall volatility and add value to an investor’s existing investment portfolio across a variety of market cycles.

There is no guarantee that the Fund will achieve its objectives, generate profits, or avoid losses. Alternative investments typically have a different return profile and different risks than traditional investments.

Asset allocation among investment categories and specific securities is determined according to a risk budgeting process that categorizes each security as core, value-added, or opportunistic.

  • Core allocations are essential to delivering non-correlated returns; holding periods are expected to be three to five years.
  • Value-added allocations are expected to have shorter holding periods and may be over-weights of core allocations.
  • Opportunistic allocations take advantage of short-term inefficiencies; holding periods are expected to be approximately twelve months.

Performance

Monthly

as of 9/30/19

ticker 3 MO YTD 1YR 3YR 5 YR from
incep.
distribution
MSFDX1 A at NAV 1.21 6.51 1.02 0.82 1.68 4.12 monthly
MSFDX A -4.59 0.36 -4.77 -1.15 0.49 3.34 monthly
MSFYX L at NAV 1.05 6.64 1.24 1.05 2.05 1.86 monthly
MSFYX L -0.97 3.98 -1.53 -0.36 0.41 0.35 monthly
MCFDX C 0.97 5.84 0.17 0.03 0.91 0.82 monthly
MSFIX I 1.22 6.64 1.24 1.05 2.05 1.86 monthly
S&P 500 Total Return2* 1.70 20.55 4.25 13.39 10.84 12.82
Barclays Aggregate Bond Index
Total Return2*
2.27 8.52 10.30 2.92 3.38 3.06

Quarterly

as of 6/30/19

ticker 3 MO YTD 1YR 3YR 5 YR from
incep.
distribution
MSFDX1 A at NAV 0.32 5.24 -1.54 1.16 1.41 4.09 monthly
MSFDX A -5.43 -0.84 -7.21 -0.82 0.27 3.29 monthly
MSFYX L at NAV 1.35 4.96 -1.98 0.66 - 0.92 monthly
MSFYX L -1.83 2.90 -3.93 -0.61 - 0.16 monthly
MCFDX C 0.13 4.82 -2.27 0.41 - 0.66 monthly
MSFIX I 0.42 5.36 -1.22 1.58 - 1.71 monthly
S&P 500 Total Return2* 4.30 18.54 10.42 14.19 10.71 10.56
Barclays Aggregate Bond Index
Total Return2*
0.67 1.30 2.39 1.38 0.89 0.89

Portfolio Characteristics

Asset Allocation

as of 6/30/19

Top 10 Holdings (% of total assets)

as of 6/30/19

Collins Masters Access Fund, Ltd. 16.10%
Treehouse Real Estate Investment Trust 9.14%
Clarion Lion Properties Fund 8.74%
Clarion Lion Industrials Trust 8.46%
Owl Rock Capital Corp 7.12%
Mosaic Real Estate Group, LLC 5.90%
NorthStar Healthcare Income, Inc. 4.74%
Ovation Alternative Income Fund 4.52%
Healthcare Trust, Inc. 3.10%
Hospitality Investors Trust, Inc. 2.53%

Holdings are subject to change without notice. There is no assurance that the investment process will lead to successful investing.

All compositions are subject to daily changes with market actions.

Literature

Marketing Materials

Fund Forms

Forms for the Destra Multi-Alternative Fund are available by request by calling 844-9DESTRA (844-933-7872)

News

CHICAGO--(BUSINESS WIRE)--Destra Capital Investments LLC (“Destra”) and LCM Investment Management LLC (“LCM”) today announced an agreement for Destra to sub-distribute the Multi-Strategy Growth & Income Fund (the “Fund”) to the wholesale channel effective immediately.

Glossary

Interval Fund: A type of investment company that periodically offers to repurchase its shares from shareholders.

Alternative Investment: An investment that is not one of the three traditional asset types (stocks, bonds, or cash). Most alternative investment assets are held by institutional investors or accredited, highnet-worth individuals because of their complex nature, limited regulations, and relative lack of liquidity. Alternative investments include hedge funds, managed futures, real estate, commodities, and derivatives contracts.

Barclays Aggregate Bond Index: An index commonly used as a benchmark by both passive and active investors to measure portfolio performance relative to the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market. It is also an informational measure of broad market returns commonly applied to fixed-income instruments.

S&P 500: An index of 500 stocks chosen for market size, liquidity, and industry grouping (among other factors). It is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large-cap universe. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses, or sales charges.

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.

Income Distribution: Net earnings of the Fund distributed to its shareholders. These earnings are usually paid monthly as cash or reinvested at the choice of the shareholder. Income distributions are taxable income.

Return of Capital: A return from an investment that is not considered income. A return of capital is when some or all of the money an investor has in an investment is paid back to him or her, thus decreasing the value of the investment.

Risks

Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for up to 5% of the shares outstanding at net asset value.

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 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. Very 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 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.

Investments in companies that are the subject of a publicly announced transaction carry the risk that the proposed or expected transaction may not be completed or may be completed on less favorable terms than originally expected, which may lower the portfolio’s performance.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Multi-Alternative Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (855) 601-3841. The prospectus should be read carefully before investing.