Variant Alternative Income Fund (NICHX)

As of April 30, 2019

For use with accredited investors only  

Inception date = October 2, 2017

Past performance is not indicative of future results

Year to date
return  

3.92%

1-year
return  

9.77%

Since inception
Sharpe ratio  

4.06

Correlation to
BBG Agg  

0.44

1-year distribution rate  

6.34%

Growth of $1,000,000  

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

As of April 30, 2019

Number of asset classes: 10

Number of positions: 44

Largest position: 7.4%

Commitments less than 3 mo’s: 20%

Commitments less than 1 year: 49%

Direct investments: 48%  

1-year distribution rate: 6.34%  

Leverage: 0.00%  

Portfolio composition by asset class  
Portfolio composition by commitment length on underlying exposures  
Portfolio composition by vehicle type of underlying exposures  

Performance

As of April 30, 2019

Inception date = October 2, 2017

Since inception return  
Since inception performance  
 ReturnRiskSharpeCorrel.Beta
Variant | NICHX7.59%1.41%4.06
T-bills | BBG 1-3 Mo1.86%0.16%-0.665.89
IG bonds | BBG Agg2.12%2.98%0.090.440.21
High yield | BBG HY4.38%4.89%0.520.090.02
Hedge funds | HFRXGL-1.41%4.73%-0.69-0.02-0.01
Equity | S&P 50012.53%14.27%0.750.060.01
Monthly returns  
 JanFebMarAprMayJunJulAugSepOctNovDecYTD
20170.120.190.420.73
20180.630.310.110.480.620.870.840.440.470.640.870.747.25
20190.480.591.980.823.92
Year to date returns  
 NICHXBBG AggBBG HYHFRXGL
Q4170.730.390.471.50
20187.250.01-2.08-6.73
20193.922.978.783.28

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.

Fund Highlights  

As of April 30, 2019
Fund structureInterval closed-end fund
Fund assets$62 million
QualificationsAccredited Investor  
Subscriptions / NAVDaily
RedemptionsQtrly 5%-25% of fund NAV  
Management fee0.95%  
Share classInstitutional
TickerNICHX
Share class launchOct 1, 2018
Min. investment$1,000,000
Gross expense ratio3.05%
Net expense ratio2.83%  
AdministratorUMB Fund Services
CounselDrinker Biddle & Reath LLP
AuditorCohen & Company
DistributorForeside Fund Services, LLC
DistributionsQuarterly  
Tax reporting1099  

Fund Managers

Bob Elsasser, CFA | Variant Investments
Bob Elsasser

Principal and Co-founder

Learn more

Curt Fintel , CFA | Variant Investments
Curt Fintel, CFA

Principal and Co-founder

Learn more

J.B. Hayes, CFA | Variant Investments
JB Hayes, CFA

Principal and Co-founder

Learn more

Documents

Account Application

Fact Sheet

Prospectus and Statement of Additional Information

Semi-Annual Report October 31, 2018