Nomura Capital Management
Unlocking Value Across Public and Private Credit

1 NAIFX Prospectus

Correlation: A statistic that measures the degree to which two securities move in relation to each other. Correlation measures association, but doesn’t show if x causes y or vice versa – or if the association is caused by a third factor. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.

Diversification: A risk management strategy that creates a mix of various investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt to limit exposure to any single asset or risk.

K-1: An tax form issued annually to the individuals in business partnerships. The purpose of Schedule K-1 is to report each partner’s share of the partnership’s earnings, losses, deductions, and credits. While a partnership itself is generally not subject to income tax, individual partners are liable to be taxed on their share of the partnership income, whether or not it is distributed. A K-1 is also commonly issued to taxpayers who have invested in limited partnerships (LPs) and some exchange-traded funds (ETFs), such as those that invest in commodities.

1099: A form issued to taxpayers so they may provide information to the Internal Revenue Service (IRS) about different types of non-employment income received during the tax year. This income may include interest from your bank, dividends from investments, or compensation for freelance work. Issuers of 1099 forms must send one copy to the IRS and another to the taxpayer, the income recipient.

As of October 1, 2024. Current Distribution Rate has been calculated by multiplying the last posted dividend by 4 to annualize, and then dividing by the NAV per share on pay date. Distribution payments are not guaranteed. May pay distributions from sources other than net investment income and capital gains, including, without limitation, the sale of assets, borrowings, return of capital (ROC) or offering proceeds, and advances or the deferral of fees and expense reimbursements. Based on current estimates, it is expected that amounts distributed to investors would include a return of capital. ROC should not be confused with yield or income. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund distribution rate at a future time

The Fund’s investment program is speculative and entails substantial risks. There can be no assurance that the Fund’s investment objectives will be achieved or that its investment program will be successful. Investors should consider the Fund as a supplement to an overall investment program and should invest only if they are willing to undertake the risks involved. Investors could lose some or all of their investment.

The shares are not listed on any stock exchange, and we do not expect a secondary market in the Shares to develop.

You should generally not expect to be able to sell your Shares (other than through the limited repurchase process), regardless of how we perform.

Although we are required to and have implemented a Share repurchase program, only a limited number of Shares will be eligible for repurchase by us.

You should consider that you may not have access to the money you invest for an indefinite period of time.

An investment in the Shares is not suitable for you if you have foreseeable need to access the money you invest.

Because you will be unable to sell your Shares or have them repurchased immediately, you will find it difficult to reduce your exposure on a timely basis during a market downturn.
An investment in the Fund involves risk. The Fund may use leverage its investments by borrowing. The use of leverage increases both risk of loss and profit potential. Alternative investments provide limited liquidity and include, among other things, the risks inherent in investing in securities, futures, commodities and derivatives, using leverage and engaging in short sales. The Fund’s investment performance depends, at least in part, on how its assets are allocated and reallocated among asset classes and strategies. Such allocation could result in the Fund holding asset classes or investments that perform poorly or underperform.

Distributions are not guaranteed.

Shares are an illiquid investment.

Investors should consider the Fund’s investment objectives, risks, charges, and expenses before investing. This information is included in the Fund Prospectus and can be accessed by calling 833-836-0206. Read the prospectus carefully before you invest.

The Nomura Alternative Income Fund is distributed by Foreside Financial Services, LLC.