m+ funds | Contingent Income Fund
Contingent Income funds aim to generate monthly income while managing downside risk.
Contingent Income Fund Goal:
Intended to generate contingent monthly income while managing downside risk.
Who should consider a Contingent Income Fund?
“I am seeking a diversified monthly contingent income stream and am willing to assume equity risk while managing downside exposure.”
How does a Contingent Income Fund work?
- Diversified exposure: The fund provides diversified exposure to a basket of structured notes; each linked to a basket of three large-cap US stocks. Notes are diversified across multiple issuers to help manage credit risk.
- Income: Contingent coupons with memory features* provide the opportunity for consistent income, even when prior observations are missed—designed for income-focused investors.
- Principal preservation at maturity: Downside barriers at maturity help protect principal, addressing the needs of investors with capital preservation goals.
*For select Notes with Memory, missed coupons are not lost—if the condition is met in a later month, past income is paid retroactively.
-
*Selected Investment Risks
- An investment in units of m+ funds may not be appropriate for all investors. Units in any m+ fund are offered only by prospectus. You should read carefully the prospectus for any fund before investing, including the risks described therein.
- Investors purchasing units are subject to upfront sales charges and organization costs which vary per fund and depend on the type of account purchasing the units, all described in the corresponding prospectus.
- The value of the fund will decrease by ongoing fees and expenses.
- The trusts are designed for investors who intend to hold the units until the trust mandatory dissolution date.
- The structure of these securities may be complex and the suitability of an investment should be considered based on your investment objective, risk tolerance, financial goals and time horizons.
- Diversification does not ensure profit or protect against loss. There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses.
- Auto-callable yield notes can stop paying income or be called based on the performance of the underlier. It is possible that zero coupons are received during the life of the investment.
- Unlike corporate bonds or treasuries, auto-callable yield notes expose principal to risk of loss based on the performance of the underlier.
- Investors who hold auto-callable yield notes are exposed to the credit risk of the issuer and must be comfortable with the issuer’s creditworthiness for the life of the investment.
- Auto-callable yield notes are buy-and-hold investments, which means that investors must be comfortable holding the note until maturity in order to receive any return of principal. There is no guaranteed secondary market. Issuing firms may offer to buy back a structured investment before maturity, typically at a discount to statement value, however they are under no legal obligation to do so.
- You should consider the portfolio’s investment objective, risks, charges and expenses carefully before investing. Contact your financial advisor to request a prospectus, which will contain this and other information about the portfolio. Read it carefully before you invest.
Securities products and services are offered by iCapital Markets LLC, a registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Alaia Capital LLC and m+ funds are affiliated with iCapital Markets LLC. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc.