Denali Structured Return Strategy Fund (DNLIX)
Primary focus on income-generating investments, with the income used to create potential capital appreciation
Overview
Seeks equity upside participation with capital appreciation
Uses income from direct and indirect investments to fund upside participation on S&P 500 Index
Resets quarterly, seeking to harvest equity upside
Interval fund structure provides daily access with quarterly redemptions
Fund Information
1The Fund’s shares require a minimum initial investment of $1,000 and $100 for subsequent investments.
2Distributions are not guaranteed. Although the Fund will offer to repurchase at least 5% of outstanding shares on a quarterly basis in accordance with the Fund’s repurchase policy, the Fund will not be required to repurchase shares at a shareholder’s option nor will shares be exchangeable for units, interests or shares of any security. As a RIC, the Fund must distribute an amount equal to at least 90% of its taxable investment income, annually. There is no assurance a change in market conditions or other factors will not result in a change in future distributions.
3Total annual expenses are 3.16%. The adviser has contractually agreed to waive fees through July 31, 2025. The Adviser attempts to structure the return profile of the Fund to produce income and the potential for partial participation in positive equity market returns without the potential for significant equity market losses by investing a small portion of the Fund's assets in call option spreads on the S&P 500® Index.
Risk Factors
An investment in the Fund’s shares is subject to risks. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. You could lose money by investing in the Fund. By itself, the Fund does not constitute a complete investment program. Before investing in the Fund, you should consider carefully the following risks the Fund faces, together with the other information contained in the prospectus.
Since the Fund is non-diversified, it is subject to higher reduction of capital and volatility than a fund more proportionately allocated among a large number of securities. An investment in the Fund involves risk. The Fund is new with no significant operating history by which to evaluate its potential performance. There can be no assurance that the Fund’s strategy will be successful. The Fund may use leverage in its investments by “borrowing.” The use of leverage increases both risk of loss and profit potential.
- Shares of the Fund are not listed on any securities exchange, which makes them inherently illiquid.
There is no secondary market for the Fund’s shares, and it is not anticipated that a secondary market will develop. - Shares of the Fund are not redeemable. Thus, an investment in the Fund may not be suitable for investors who may need the money they invest in a specified time frame.
- Although the Fund will offer to repurchase at least 5% of outstanding shares on a quarterly basis in accordance with the Fund’s repurchase policy, the Fund will not be required to repurchase shares at a shareholder’s option nor will shares be exchangeable for units, interests or shares of any security.
- The Fund is not required to extend, and shareholders should not expect the Fund’s Board of Trustees to authorize, repurchase offers in excess of 5% of outstanding shares.
- Regardless of how the Fund performs, an investor may not be able to sell or otherwise liquidate his, her or its shares whenever such investor would prefer and, except to the extent permitted under the quarterly repurchase offer, will be unable to reduce the shareholder’s exposure on any market downturn.
Fund Performance
Data as of 03/31/2025
| 1MO | 3MO | YTD | Since Inception | |
| Denali Structured Return Strategy Fund | -1.55% | -0.27% | -0.27% | 14.31% |
| S&P 500 TR | -5.63% | -4.28% | -4.28% | 11.22% |
| Inception Date | Fund NAV | QTD Return | SPX Return | Max Option Value | Current Option Value | Option Value Remaining | Credit Accrual Remaining | Credit Accrual to Date | Remaining Outcome Period |
| 03/11/2024 | $10.87 | 2.35% | 5.14% | 4.88% | 1.89% | 3.47% | 1.41% | 1.21% | 46 |
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Returns are net total returns.
Performance of less than one year is cumulative. You cannot invest directly in an index.
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. For the most recent month-end performance, please call 1-800-632-4027.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the investment company. For a prospectus or summary prospectus with this and other important information about the Fund, please visit the Documents section of this website or call 1-800-632-4027. Read the prospectus carefully before investing.
Shareholder Services: 1-800-632-4027
Investment Professionals: 770-350-8700 or info@LSfunds.com
Distributed by Foreside Fund Services, LLC, which is not affiliated with the Adviser.
Call Option Spreads: The Adviser uses call option spreads to capture a portion of positive equity market returns without exposing the Fund to significant equity market losses. Call options can expire worthless in a flat or down equity market, but are not further linked to equity losses. By using a call spread strategy, the Fund does not hold the constituents of the S&P 500® Index and therefore is not exposed to equity market losses beyond the net cost of the call options. The Adviser anticipates investing in call spreads on a quarterly basis by investing primarily in call options with three-month maturities and strike prices that are near (within one percent above) the then-current level of the S&P 500® Index while writing the same amount of call options with three-month maturities and strike prices that are approximately 5% higher than the then-current level of the index. The Fund's purchases of call spreads are intended to allow the Fund to participate in increases in the S&P 500® Index up to approximately 5°/o during the term of the call spread. The purchased call options are commonly referred to as being at-the-money if the strike price is at the then-current level of the index, or out-of-the money if the strike price is above the then-current level of the index. The Adviser considers relative call prices when fine tuning the strike prices selected. The Fund's Adviser attempts to use strike prices of purchased and written options that will result in a net cost to the Fund of approximately one and a half to three percent of total assets. The Adviser may purchase over-the-counter options, but only from counterparties it considers credit worthy. The Adviser considers a counterparty credit worthy if rated at least Baa3 by Moody's or at least BBB by S&P, or,. if unrated, determined by the Adviser to be of similar credit quality.
"Characteristics and Risks of Standardized Options”, which outlines the purposes and risks of options transactions. You can download this document at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Max Option Value: Amount of maximum upside value of call spread when entered
Current Option Value: Current Value of Call Spread
Upside Optional Value Remaining: Amount of upside call spread has remaining in the outcome period
Credit Accrual Remaining: Amount of income accrual remaining during the outcome period
Credit Accrual to Date: Amount the income the fund has accrued to date during the outcome period
Fund Documents
Section 16 Filings
How to Invest
The Denali Structured Return Strategy Fund is traded on major stock exchanges.
The Denali Structured Return Strategy Fund does not require a subscription agreement or have investor qualification standards. RIAs and institutional investors can purchase fund shares daily through Fidelity and Pershing using the ticker symbol DNLIX, and Charles Schwab upon request.