Income done differently
| As of September 30, 2024 |
For use with accredited investors only
Inception date = October 2, 2017
Past performance is not indicative of future results
Year to date
return
2.56%
1-year
return
5.35%
3-year
return
7.65%
5-year
return
8.30%
Since
inception
8.41%
1-year distribution
rate
12.14%
Overview
The Variant Alternative Income Fund, a closed-end interval fund, offers investors efficient access to a diversified portfolio of unconventional income-generating assets. The Fund invests in niche market opportunities with strong cash flow characteristics and low correlations to public equity and bond markets. The Fund’s primary objective is to provide a high level of current income. Capital appreciation will be considered a secondary objective. Variant, an innovator in alternative income investing, is led by an investment team with decades of experience investing in market niches. Interval funds provide investors such features as daily pricing, 1099 tax reporting, and quarterly liquidity with a fund-level gate of 5-25% of NAV. The interval fund structure allows accredited investors the opportunity to access less liquid, potentially higher yielding alternative investments.
Portfolio
Portfolio composition by asset class
Performance
| As of September 30, 2024 |
Inception date = October 2, 2017
Since inception return
Net performance
| 1 yr | 3 yr | 5 yr | SI | |
|---|---|---|---|---|
| Variant | NICHX | 5.35% | 7.65% | 8.30% | 8.41% |
| T-bills | BBG 1-3 Mo | 5.56% | 3.49% | 2.33% | 2.23% |
| IG bonds | BBG Agg | 11.57% | -1.39% | 0.33% | 1.47% |
| High yield | BBG HY | 15.74% | 3.10% | 4.72% | 4.71% |
| Equity | S&P 500 | 36.33% | 11.89% | 15.96% | 14.48% |
Monthly returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 0.12 | 0.19 | 0.42 | 0.73 | |||||||||
| 2018 | 0.63 | 0.31 | 0.11 | 0.48 | 0.62 | 0.87 | 0.84 | 0.44 | 0.47 | 0.64 | 0.87 | 0.74 | 7.26 |
| 2019 | 0.48 | 0.59 | 1.98 | 0.82 | 1.05 | 1.07 | 1.35 | 1.07 | 0.52 | 0.76 | 0.64 | 1.24 | 12.22 |
| 2020 | 1.17 | 0.48 | -0.50 | -0.27 | 0.87 | 0.34 | 0.76 | 0.08 | 0.56 | 0.72 | 0.45 | 1.06 | 5.87 |
| 2021 | 1.10 | 0.94 | 0.92 | 0.90 | 1.59 | 0.96 | 1.72 | 0.72 | 0.65 | 0.72 | 0.72 | 0.72 | 12.29 |
| 2022 | 0.68 | 0.60 | 0.72 | 0.86 | 0.49 | 0.63 | 0.57 | 0.88 | 0.77 | 0.81 | 0.49 | 0.89 | 8.71 |
| 2023 | 0.77 | 0.69 | 0.61 | 0.59 | 0.76 | 0.71 | 0.93 | 0.58 | 0.76 | 0.82 | 0.78 | 1.09 | 9.50 |
| 2024 | 0.60 | 0.67 | 0.91 | 0.81 | -3.19 | 0.78 | 0.81 | 0.58 | 0.63 | 2.56 |
Year to date returns
| NICHX | BBG Agg | BBG HY | S&P 500 | |
|---|---|---|---|---|
| Q417 | 0.73 | 0.39 | 0.47 | 6.64 |
| 2018 | 7.26 | 0.01 | -2.08 | -4.39 |
| 2019 | 12.22 | 8.72 | 14.32 | 31.48 |
| 2020 | 5.87 | 7.51 | 7.11 | 18.39 |
| 2021 | 12.29 | -1.54 | 5.28 | 28.68 |
| 2022 | 8.71 | -13.01 | -11.19 | -18.13 |
| 2023 | 9.50 | 5.53 | 13.45 | 26.26 |
| 2024 | 2.56 | 4.45 | 8.00 | 22.08 |
The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s 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. Returns assume reinvestment of dividends and capital gains.
Fund Highlights
| As of September 30, 2024 |
| Fund structure | Interval closed-end fund |
| Fund assets | $2,831 million |
| Qualifications | Accredited Investor |
| Subscriptions / NAV | Daily |
| Redemptions | Qtrly 5% of Fund NAV |
| Management fee | 0.95% |
| Share class | Institutional |
| Ticker / CUSIP | NICHX / 92220Q103 |
| Fund launch | October 1, 2018 |
| Min. investment | $1,000,000 (Firm level) |
| Gross expense ratio | 1.72% |
| Net expense ratio | 1.72% |
| Administrator | UMB Fund Services |
| Counsel | Faegre Drinker |
| Auditor | Cohen & Company |
| Distributor | UMB Distribution Services, LLC |
| Distributions | Quarterly |
| Tax reporting | 1099 |
Documents
Account Application
IRA Account Application
Fact Sheet
Distribution History
2024 Redemption Dates
Prospectus
Statement of Additional Information
Semi-Annual Report October 31, 2023
Annual Report April 30, 2024
California Lender License Number: 60DBO-185300
The Variant Alternative Income Fund (the “Fund”) is a continuously-offered, non-diversified, registered closed-end fund with limited liquidity. There is no guarantee the Fund will achieve its objective. An investment in the Fund should only be made by investors who understand the risks involved, who are able to withstand the loss of the entire amount invested and who can bear the risks associated with the limited liquidity of Shares. A prospective investor must meet the definition of “accredited investor” under Regulation D under the Securities Act of 1933.
Important Risks: Shares are an illiquid investment. You should generally not expect to be able to sell your Shares (other than through the repurchase process), regardless of how the Fund performs. Although the Fund is required to implement a Share repurchase program only a limited number of Shares will be eligible for repurchase by the Fund.
An investment in the Fund is speculative, involves substantial risks, including the risk that the entire amount invested may be lost, and should not constitute a complete investment program. The Fund may leverage its investments by borrowing, use of swap agreements, options or other derivative instruments. The Fund is a non-diversified, closed-end management investment company, meaning it may be more susceptible to any single economic or regulatory occurrence than a diversified investment company. In addition, the fund is subject to investment related risks of the underlying funds, general economic and market condition risk.
Alternative investments provide limited liquidity and include, among other things, the risks inherent in investing in securities, futures, commodities and derivatives, using leverage and engaging in short sales. The Fund’s investment performance depends, at least in part, on how its assets are allocated and reallocated among asset classes and strategies. Such allocation could result in the Fund holding asset classes or investments that perform poorly or underperform. Investments and investment transactions are subject to various counterparty risks. The counterparties to transactions in over the-counter or “inter-dealer” markets are typically subject to lesser credit evaluation and regulatory oversight compared to members of “exchange-based” markets. This may increase the risk that a counterparty will not settle a transaction because of a credit or liquidity problem, thus causing the Fund to suffer losses. The Fund and its service providers may be prone to operational and information security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption, or lose operational capacity.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM (877) 770-7717 OR WWW.VARIANTINVESTMENTS.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
Funds Distributed by UMB Distribution Services, LLC. Not affiliated with Variant Investments