Lucia Capital Management Celebrates 5-Year Anniversary of the Multi-Strategy Growth & Income Fund

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Since its inception on March 17, 2012, the Fund has achieved superior risk-adjusted returns as compared to the Barclays U.S. Aggregate Bond Index and the S&P 500 Index

MSGI 5-Year Performance

MSGI Performance

Lucia Capital Management (“LCM”), an institutional money manager with more than $500 million in equity, fixed income, and alternative assets under management, announced today the five-year anniversary of the Multi-Strategy Growth and Income Fund (the “Fund”) (NASDAQ: MSFDX). Since its inception on March 17, 2012, the Fund has achieved superior risk-adjusted returns as compared to the Barclays U.S. Aggregate Bond Index and the S&P 500 Index, as shown in the included table. The Fund has also delivered a return in between that of these two indices in all five of its completed fiscal years, demonstrating the consistency experienced by investors to date. During that same time period, MSFDX has realized less than 36%(a) of the volatility of the S&P 500 Index.

“When we think about how we measure the achievements of the Fund, we pay a great deal of attention to risk-adjusted metrics such as Sharpe and Sortino ratios, and correlations to traditional asset classes,” said Portfolio Manager Mark Scalzo. “These speak to the accomplishments we have had in meeting, and in many cases exceeding, our stated goals.” The value of the non-traditional return stream generated by the Fund is further demonstrated in the metrics featured in the included table.

With more than $200 million in net assets, the Multi-Strategy Growth & Income Fund invests in a diversified combination of various institutional, private and public investments across the alternative investment landscape. These include real estate, private debt and equity, hedge funds, and other alternative asset classes. The Fund’s investment team utilizes its extensive experience to implement a rigorous investment process and proprietary scoring methodology to identify value-added opportunities, and actively manages the portfolio on a day-to-day basis to maximize shareholder value. Through this process, the Fund seeks to maximize long-term performance, non-correlated to the broad stock and bond markets, while delivering shareholders monthly distributions.

LCM is a pioneer in the burgeoning closed-end interval fund industry, which has quickly grown to $11.2 billion in AUM through September 30, 2016(c), and is now one of only a very select few with track records of more than five years. Ray Lucia Jr., founder of Lucia Capital Management and the Fund, stated, “I couldn’t be more proud of what we have accomplished here for our investors. I believe this milestone speaks to the value that the Fund provides, and I am confident in its continued success going forward.”

The Fund features four total share classes. In addition to the A share class (NASDAQ: MSFDX), the Fund is available in Class C (NASDAQ: MCFDX), Class I (NASDAQ: MSFIX), and Class L (NASDAQ: MSFYX) shares. All three additional share classes were added after the Fund’s inception to provide investors with alternative fee structures and entry price points.

About the Multi-Strategy Growth & Income Fund

The Multi-Strategy Growth & Income Fund is a continuously offered, closed-end interval fund featuring monthly distributions and quarterly redemption offers of no less than 5% of shares outstanding. The Fund seeks to achieve long-term performance non-correlated to the broad stock and bond markets. It allows investors diversification in several potentially income-producing alternative strategies at a low minimum investment while providing limited liquidity.

The Fund gives investors access to alternative income strategies that may provide greater yields and growth opportunities than traditional investment strategies. It invests primarily in real estate, both private and public debt and equity income securities, and alternative investment funds. The primary objective of the Fund is current income generation, with a secondary objective of achieving long-term growth.

To learn more about the Multi-Strategy Growth & Income Fund call (855) 601-3841 or visit http://www.growthandincomefund.com.

Definitions

Standard Deviation: A statistical measurement of the variation of returns from an average historical return as a percentage. A high standard deviation generally indicates higher volatility of returns.

Sharpe Ratio: A risk-adjusted measure used to determine reward per unit of risk. The Sharpe Ratio is calculated by dividing annualized excess returns over the risk-free rate by its annualized standard deviation. Generally, the higher the Sharpe Ratio, the better the risk-adjusted return.
Sortino Ratio: A measure that is similar to Sharpe Ratio except it uses downside risk (downside deviation) in the denominator instead of standard deviation. Since upside variability is not necessarily a bad thing, Sortino ratio is sometimes more preferable than Sharpe ratio.
Beta: A measure of a fund's sensitivity to market movements. The beta of the market or index (being used for comparative purposes) is 1.00 by definition. It is important to note that a low beta for a fund does not necessarily imply that the fund has a low level of volatility. A low beta signifies only that the fund's market-related risk is low.

Alpha: A measure of the difference between a fund's actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates the fund's underperformance, given the expectations established by the fund's beta. Alpha can be used to directly measure the value added or subtracted by a fund's manager.

Barclays U.S. Aggregate Bond Index: An index commonly used to measure the performance of the total U.S. investment-grade bond market. The securities underlying the index include investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage and asset backed securities that are publicly offered for sale in the U.S.

S&P 500 Index: An index of 500 stocks chosen for market size, liquidity, and industry grouping (among other factors). It is designed to be an indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large-cap universe.

Investors cannot directly invest in an index, and unmanaged index returns do not reflect any fees, expenses, or sales charges.

Important Disclosures

There is no assurance that the Fund will achieve its investment objective.

The Fund’s distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that an unanticipated change in market conditions or other unforeseen factors will not result in a change in the Fund’s distribution rate at a future time. The Fund’s distribution policy is to make monthly distributions to shareholders. The level of monthly distributions (including any return of capital) is not fixed, but is expected to represent an annual rate of approximately 6.00% of the Fund’s current net asset value per share. However, this distribution policy is subject to change. Shareholders receiving periodic payments from the Fund may be under the impression that they are receiving net profits. However, all or a portion of a distribution may consist of a return of capital. Shareholders should not assume that the source of a distribution from the Fund is net profit.

Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers of up to 5% of the shares outstanding at net asset value. There currently is no secondary market for the Fund’s shares, and the Fund expects that no secondary market will develop. Very limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers. Even though the Fund will make quarterly repurchase offers, there is no guarantee that investors will be able to redeem all shares they desire, as such, investors should consider the Fund’s shares illiquid.

Volatility is a statistical measure of the dispersion of returns for a given security or market index. Commonly, the higher the volatility, the riskier the security. Volatility is unpredictable, and as a result the investments listed above are subject to market fluctuations and risks. Closed-end funds involve risk, including the possible loss of principal. Alternative investment funds, ETFs, mutual funds, and closed-end funds are subject to management and other expenses, which will be indirectly paid by the Fund. Issuers of debt securities may not make scheduled interest and principal payments, resulting in losses to the Fund. Typically, a rise in interest rates causes a decline in the value of fixed-income securities. Lower-quality debt securities, known as “high-yield” or “junk” bonds, present greater risk than bonds of higher quality, including increased default risk and non-diversification risk, as the funds are more vulnerable to events affecting a single issuer. The use of leverage, such as borrowing money to purchase securities, will cause the Fund to incur additional expenses and will magnify the Fund’s gains or losses. Investments in lesser-known, small- and medium-capitalization companies may be more vulnerable than those in larger, more established organizations. The Fund will not invest in real estate directly, but, because the Fund will concentrate its investments in securities of REITs, its portfolio will be significantly impacted by the performance of the real estate market. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s NAV. The value of a structured note will be influenced by time to maturity; type of note; market volatility; changes in the issuer’s credit quality rating; and economic, legal, political, or geographic events that affect the reference index.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Multi-Strategy Growth & Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (855) 601-3841. The prospectus should be read carefully before investing.

The Multi-Strategy Growth & Income Fund is distributed by Northern Lights Distributors, LLC, member FINRA. Raymond J. Lucia Jr., Mark Scalzo and Lucia Capital Management are not affiliated with Northern Lights Distributors, LLC.

a.) As measured by standard deviation
b.) See Definitions section at the end of this release for further context on these metrics
c.) Data from Blue Vault Interval Fund and Nontraded CEF Review, September 30, 2017

Lucia Capital Management, LLC

Assets Under Management: As of December 31, 1016 LCM reported $201,254,545 in discretionary assets under management and $307,909,868 in non-discretionary assets under management. In addition to managing the Fund on a discretionary basis, LCM firm enters into advisory contracts with program sponsors to serve as a non-discretionary investment adviser whereby the firm provides investment advice and recommendations to the sponsor subject to an asset based fee and in accordance with pre-approved investment strategies/model portfolios. In accordance with the terms of the agreement, the firm is responsible for oversight of the investment strategy/model portfolio, updating security selection, allocations or weightings and transmitting this information to the sponsor via the sponsor’s trading technology platform. Upon transmitting model allocations and/or changes, any resulting trades are executed in accordance with the model by the program sponsor. 5219-NLD-04/04/2017

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Aaron Rosen
Lucia Capital Management
+1 (800) 644-1150 Ext: 1102
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Emily Paup
Lucia Capital Management
(800) 644-1150 1060
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