Matisse Discounted Closed-End Fund Strategy Institutional Class – Mutual Fund (MDCEX)

Overview

The fund described operates as a "fund of funds," aiming to meet its investment objectives primarily through holdings in unaffiliated closed-end funds. These funds, in turn, are characterized by their regular periodic cash distributions and a tendency for their interests to trade at significant discounts compared to their net asset values. This strategy, according to the fund's investment advisor, has the potential to foster capital appreciation and income generation for investors. The fund adheres to a strict investment policy, committing at least 80% of its net assets (plus any borrowings intended for investment purposes) into discounted closed-end funds. This approach highlights a specific investment focus, thereby seeking to leverage the discrepancies between market prices and underlying values to achieve its goals.

Products and Services

• Investments in Unaffiliated Closed-End Funds

This product focuses on investing a significant portion of the fund's assets into closed-end funds that are not affiliated with the fund itself. These investments aim to capitalize on the regular periodic cash distributions offered by such funds. The strategy is to invest in those closed-end funds whose shares are trading at substantial discounts relative to their underlying net asset values, theorizing that these discrepancies offer opportunities for capital appreciation and income.

• Capital Appreciation and Income Generation

Through its strategic investments in discounted closed-end funds, the fund seeks to generate both capital appreciation and income for its investors. Capital appreciation is targeted through the potential increase in the value of the underlying assets of the closed-end funds. Income is generated from the regular periodic distributions paid by these funds. This dual-focused investment approach aims to provide a balanced and potentially lucrative opportunity for investors looking for both growth and income in their portfolios.

• Adherence to Investment Policy

The fund has a clear policy of investing at least 80% of its net assets, in addition to any borrowings for investment purposes, into discounted closed-end funds. This commitment underscores the fund's strategy of focusing on these types of investments to achieve its investment objectives. It provides a level of predictability and assurance to investors regarding how their capital will be allocated within the fund's portfolio, emphasizing the fund’s specialized investment approach.