Yielding a difference
For use with accredited investors only
The Fund intends to invest in a wide range of opportunities across three core impact objectives.
Financial
Inclusion
To increase access to financial services for underserved markets and beneficiaries.
— Financial Inclusion
— Gender Lens
— Racial Equity
Equitable
Growth
To enhance quality and equity of essential services that enable economic growth in underserved communities.
— Access to Quality Education
— Affordable Quality Housing
— Green Buildings
— Quality Jobs
Responsible
Consumption
To minimize environmental impact and promote more sustainable resource consumption.
— Clean Energy
— Climate Change Mitigation
— Energy Efficiency
— Sustainable Agriculture
— Waste Management
| As of October 31, 2024 |
Inception date = November 1, 2021
Past performance is not indicative of future results
Year to date
return
5.23%
1-year
return
8.08%
Since
inception
10.67%
1-year distribution rate
7.69%
Overview
The Variant Impact Fund offers investors efficient access to a diversified portfolio of unconventional income-generating assets that are aligned with the United Nations Sustainable Development Goals (“UN SDGs”). 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. The Fund will also seek to generate positive social and environmental impact by targeting investment opportunities that are both aligned with the UN SDGs and consistent with the Fund’s impact investing framework. The Fund intends to invest in a wide range of opportunities across three core impact objectives: (i) financial inclusion; (ii) equitable growth; and (iii) responsible consumption. 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 (excluding cash) by IRIS+ Impact Themes
Performance
| As of October 31, 2024 |
Inception date = November 1, 2021
Since inception return
Net performance
| 1 yr | SI | |
|---|---|---|
| Variant | IMPCX | 8.08% | 10.67% |
| IG bonds | BBG Agg | 10.55% | -2.20% |
| High yield | BBG HY | 16.47% | 2.97% |
| Equity | S&P 500 | 37.99% | 9.06% |
Monthly returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 0.56 | 0.70 | 1.27 | ||||||||||
| 2022 | 0.76 | 0.67 | 0.83 | 0.75 | 2.87 | 0.68 | 0.42 | 0.88 | 1.49 | 0.49 | 0.60 | 1.49 | 12.59 |
| 2023 | 0.64 | 0.41 | 0.97 | 0.71 | 0.82 | 0.78 | 1.59 | 1.46 | 0.75 | 1.44 | 0.64 | 2.05 | 12.96 |
| 2024 | 0.82 | 0.11 | 0.62 | 0.93 | 0.43 | 0.73 | 0.28 | -0.25 | 0.73 | 0.72 | 5.23 |
Year to date returns
| IMPCX | BBG Agg | BBG HY | S&P 500 | |
|---|---|---|---|---|
| 2021 | 1.27 | 0.04 | 0.88 | 3.75 |
| 2022 | 12.59 | -13.01 | -11.19 | -18.13 |
| 2023 | 12.96 | 5.53 | 13.45 | 26.26 |
| 2024 | 5.23 | 1.86 | 7.42 | 20.96 |
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 October 31, 2024 |
| Fund structure | Interval closed-end fund |
| Fund assets | $88.6 million |
| Qualifications | Accredited Investor |
| Subscriptions / NAV | Daily |
| Redemptions | Qtrly 5% of Fund NAV |
| Management fee | 1.25% |
| Share class | Institutional |
| Ticker / CUSIP | IMPCX / 922210109 |
| Fund launch | November 1, 2021 |
| Min. investment | $1,000,000 (Fund level) |
| Gross expense ratio | 2.47% |
| Net expense ratio | 2.08% |
| Administrator | UMB Fund Services |
| Counsel | Faegre Drinker |
| Auditor | Cohen & Company |
| Distributor | UMB Distribution Services, LLC |
| Distributions | Quarterly |
| Tax reporting | 1099 |
Impact Partners
Principles for Responsible Investing is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. Variant became a signatory on January 27, 2022.
The Global Impact Investing Network (Variant became a member of the GIIN in May 2021) is the global champion of impact investing, dedicated to increasing its scale and effectiveness around the world. Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.
Variant engaged Tideline, a leading consultant in impact investing, to advise on the design & operationalization of its impact management strategy. Tideline is a specialist, women-owned consulting firm that works with asset managers and allocators to design and implement best-in-class impact management systems.
Impact Capital Managers (ICM) is a network of private capital fund managers investing for superior returns and meaningful impact. Their mission is to accelerate the performance of members and scale the private capital impact investing marketplace with integrity and authenticity. Variant became a member in 2023.
Documents
2024 Annual Impact Report
Account Application
IRA Account Application
Fact Sheet
Distribution History
Prospectus
2024 Redemption Dates
Statement of Additional Information
Semi-Annual Report October 31, 2023
Annual Report April 30, 2024
The 17 United Nations Sustainable Development Goals
The Sustainable Development Goals are a universal call to action to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere. The 17 Goals were adopted by all UN Member States in 2015, as part of the 2030 Agenda for Sustainable Development which set out a 15-year plan to achieve the Goals.
See all
The Variant Impact Fund (the “Fund”) is a continuously-offered, non-diversified, registered closed-end fund with limited liquidity. The investment objective of the Fund is to seek to provide a high level of current income. Capital appreciation is considered a secondary objective. The Fund will also seek to generate positive social and environmental impact by targeting investment opportunities that are both aligned with the United Nations Sustainable Development Goals (“UN SDGs”) and consistent with the Fund’s impact investing framework. 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: In implementing the Fund’s impact investment strategy, the Investment Manager may select or exclude certain investments for reasons other than investment performance. For this reason, the Fund’s impact strategy could cause it to perform differently compared to funds that do not have such strategy. There is no guarantee that the Investment Manager’s definition of impact investing, security selection criteria or investment judgment will reflect the beliefs or values of any particular investor.
Currently, there is a lack of common industry standards relating to the development and application of environmental, social and governance (ESG) criteria, which may make it difficult to compare the Funds’ principal investment strategies with the investment strategies of other funds that integrate certain “impact” criteria. The substantial investment by the Fund in private securities, there is no reliable liquid market available for the purposes of valuing the majority of the Fund’s investments. There can be no guarantee that the basis of calculation of the value of the Fund’s investments used in the valuation process will reflect the actual value on realization of those investments. 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. The 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 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