Variant Alternative Income Fund (NICHX)

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