Destra Interval Fund Posts Record Year Despite 2022 Market Turmoil

Destra Capital Advisors LLC, (“Destra”) the Advisor to the BlueBay Destra International Event-Driven Credit Fund (the “Fund”), today announced performance results of the Fund for 2022.

The Fund’s Class I Shares (available under the symbol CEDIX) closed out 2022 with a Total Return of a positive 21.07% in a year where the Bloomberg Global Aggregate Bond Index was down -16.25%.

“This unique investment strategy proved its mettle in the worst bond market on record,” said Fund President, Robert A. Watson, CFP®. “Since the inception of the Bloomberg Global Agg, there has never been as poor a year to be invested globally in bonds as last year. Despite debt markets melting all around the world in 2022, this Fund delivered on its investment proposition.”

The BlueBay Destra International Event-Driven Credit Fund is a continuously offered closed-end interval fund that seeks total return from a combination of current income and the potential for capital appreciation. The Fund pursues its objective through an “event-driven credit” strategy, developed and implemented by its sub-advisor, BlueBay Asset Management LLP, out of London.

“At BlueBay we look across the whole of global credit markets in search of businesses we believe have strong merit, but where there are stresses in financing, debt service, capital structure or other variables,” said Fund Portfolio Manager, Duncan Farley, “we strive to identify events that can unlock value up and down the capital stack and we are extremely particular about the points of entry and exit into these trades. Always, we start with the mindset, ‘what must we do to limit our risk of loss’. Only after we have crystalized our views there, do we then look to the opportunity that might be achievable.”

This stringent “risk first” approach has led the Fund to outstanding returns for the 1-year period, ended December 31, 2022. In fact, the Fund remains the Top Performing Interval Fund on a 1-Year, 4-Year, and Since Fund Inception basis and also remains the Top Performing Credit Interval Fund for the 1-Year, 2-Year, 3-Year, 4-Year, and Since Fund Inception time periods.

The Fund returns are illustrated in the table below.

Source: Morningstar Direct

Returns shown are for the Fund’s Class I Shares. Other classes may have different performance characteristics.

Data presented reflects past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Returns for period of less than one year are not annualized and include reinvestment of all distributions. The Fund’s Gross/Net Expense ratios, without the Fund’s use of leverage, are as follows: I Shares 3.02%/2.25%, A Shares 3.27%/2.50%, L Shares 3.52%/2.75%, and T Shares 3.77%/3.00%. Performance information is reported net of the Fund’s fees and expenses.

Destra and the Fund have entered into the Expense Limitation Agreement under which Destra has agreed to reimburse and/or pay or absorb, on a quarterly basis, the “ordinary operating expenses” (as defined below) of the Fund to the extent that such expenses exceed 0.50% per annum of the Fund’s average daily net assets (the “Expense Limitation”). The Expense Limitation may be adjusted for different classes of Shares to account for class-specific expenses. In consideration of Destra’s agreement to limit the Fund’s expenses, the Fund has agreed to repay Destra pro rata in the amount of any Fund expense paid or waived by it, subject to the limitations that: (1) the reimbursement for expenses will be made only if payable not more than three years following the time such payment or waiver was made; and (2) the reimbursement may not be made if it would cause the Fund’s then-current Expense Limitation, if any, and the Expense Limitation that was in effect at the time when Destra reimbursed, paid or absorbed the ordinary operating expenses that are the subject of the repayment, to be exceeded. Unless earlier terminated by the Board, the Expense Limitation Agreement will remain in effect until January 31, 2032 and will automatically continue in effect for successive twelve-month periods thereafter. Destra may not terminate the Expense Limitation Agreement during the initial term. After the initial term, either the Board or Destra may terminate the Expense Limitation Agreement upon 30 days’ written notice. Class A, L and T shares have a shareholder servicing fee of up to 0.25% and distribution fee of 0.25% for Class L and 0.50% for Class T Shares.

*The Since Inception returns are based on the inception date of the Fund I Share on 5/09/2018.

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

About Destra Capital

Founded in 2008, Destra Capital was purposefully built to help independent thought leaders achieve better wealth outcomes by sourcing the next generation of investment solutions.

To achieve these goals, Destra helps place unique asset management strategies into the appropriate vehicles to address clients’ needs. Separate accounts, mutual funds, closed-end funds, interval funds - all are tools that the team uses to help investors and advisors grow their wealth outcomes, gradually, over time.

More than 15 years later, the firm has helped thousands of investors break away from the pack and blaze their own investing trail. We continue to encourage our clients to challenge the conventional and explore new ways of delivering financial freedom.

About BlueBay

BlueBay is a global specialist fixed income manager uniquely positioned at the convergence point between traditional and alternative asset managers. Headquartered in London with a strong European presence, BlueBay invests over US$95 billion for institutional investors and financial institutions across the fixed income on a global scale, from active benchmarked portfolios to alternative strategies and private debt.

As a firm, BlueBay seeks to deliver optimal outcomes for clients and promote a culture of strong performance, coupled with innovation and collaboration.

BlueBay’s purpose is to be a respected, leading asset manager for their clients. They do this by embracing their values of integrity, transparency and respect that have been the backbone of the firm since inception in 2001.

BlueBay has offices in the UK, Switzerland, Spain, Italy, Netherlands, Germany, Luxembourg, Stamford (US), Japan and Australia. BlueBay Asset Management LLP is wholly-owned by Royal Bank of Canada and part of RBC Global Asset Management. BlueBay Asset Management LLP is authorized and regulated by the Financial Conduct Authority.

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains these and other important information about the Fund, visit www.destracapital.com. Read the prospectus carefully before investing.

The Fund’s Class I shares are sold at net asset value and have investment minimum requirements. Destra Capital Investments LLC, the Fund’s distributor, offers multiple share classes, not all necessarily available through all firms, and the share class performance may vary. Contact your financial advisor for more details.

© 2023 Destra Capital Advisors LLC. All rights reserved.

Important Risk Information

Pursuant to Rule 23c-3 of the 1940 Act, the Fund must make a quarterly repurchase offer of at least 5% of the Fund’s outstanding shares. The Fund’s Board of Directors will set the actual level of the quarterly repurchase offers. It is possible that a repurchase offer may be oversubscribed, in which case shareholders may only have a portion of their shares repurchased.

Please read the prospectus for more complete information, including risks and objectives before investing. Investing in the Shares involves certain risks, including loss of principal, that are described in the “Risks” section of the prospectus, including the following:

The Fund’s Shares will not be immediately listed on an exchange in the foreseeable future, if at all. It is not anticipated that a secondary market for the Shares will develop unless the Shares are listed on an exchange. Thus, an investment in the Fund is not suitable for investors who might need access to the money they invest for several years or longer.

The Fund may decline to accept any subscription requests for any reason regardless of the order in which such subscription request was submitted to the Fund in a particular subscription period.

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