Destra Multi-Alternative Fund, a closed-end interval fund, plans to hold a special meeting of shareholders to facilitate listing on the New York Stock Exchange or other national securities exchange.
The fund is seeking shareholder approval to modify its policy of conducting quarterly repurchase offers to repurchasing shares on an annual basis. Annual repurchases are expected to be 20 percent of the fund’s shares outstanding, compared to the current quarterly repurchase offers of no less than 5 percent of its outstanding shares.
Destra Multi-Alternative Fund said that moving to an annual schedule would provide time to position its portfolio for listing on a national securities exchange, noting that the modified annual repurchase offers would be eliminated once the shares are listed.
Also contingent on the listing, the fund is seeking to amend its investment advisory and sub-advisory agreements to include borrowing for investment purposes in the calculation of the advisory and sub-advisory fees.
The fund also seeks approval of the early termination and replacement of its current expense limitation agreement between the Fund and Destra Capital Advisors LLC that would limit the total non-management and non-investment fees that the fund may pay to 0.53 percent. If approved, the expense limitation agreement would have a term of five years from the listing date.
The current expense limitation agreement limits each share class’ total operating expenses after fee waiver and/or reimbursement so the total does not exceed 1.95 percent of Class A shares’ net assets, 2.45 percent of Class T shares’ net assets, 2.70 percent of Class C shares’ net assets, and 1.70 percent of Class I shares’ net assets.
Lastly, the fund is seeking shareholder approval to revise its policy that currently requires that it concentrate its investments in the real estate investment trust (REIT) industry to include investments in the broader real estate industry.
The Destra Multi-Alternative Fund oversees a $172.2 million investment portfolio, as of November 30, 2019. The interval fund launched in 2012 and was acquired by Destra Capital Advisors in January 2019.