Matisse Discounted Bond CEF Strategy Institutional Class (MDFIX)

Overview

This investment fund focuses on acquiring assets primarily through investing in discounted closed-end funds that target bond investments. By channeling at least 80% of its net assets, along with any borrowed funds, into such vehicles, the company seeks to capitalize on the bond market's opportunities. These targeted closed-end funds further diversify their investments into a variety of financial instruments including loans, preferred securities, convertible securities, and foreign income securities. Derivatives are also utilized, both for investment gains and for hedging purposes. Moreover, leveraging is a strategic tool employed by these funds to augment their investment capacity in securing their portfolio assets.

Products and Services

• Discounted Closed-End Fund Investments

  Primarily focusing on bonds, these investments are chosen for their potential to offer favorable returns at reduced prices. By investing a core portion of its assets in these funds, the company eyes the bond market for growth and income generation opportunities.

• Loans and Preferred Securities

  Part of the diversified strategy includes investing in loans and preferred securities. These instruments provide an avenue for income while offering a different risk profile compared to traditional bond investments. This diversification aims to improve the fund's income potential and stability.

• Convertible Securities and Foreign Income Securities

  The fund also allocates investments to convertible securities and foreign income securities, expanding its potential for growth and income beyond domestic markets. Convertible securities offer the potential for capital appreciation while foreign income securities can provide exposure to global income-generating assets.

• Derivative Instruments

  For both investment and hedging purposes, derivative instruments are utilized. This not only aims at enhancing the fund's returns through strategic investment moves but also at protecting the portfolio from potential market downturns through hedging.

• Leverage Utilization

  The strategic use of leverage to acquire underlying portfolio investments is a hallmark of this fund's approach. Through borrowing, the fund seeks to amplify its investment capacity and potential returns, albeit with a higher risk level.