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Memos from Howard Marks: Cockroaches in the Coal MineFund’s Liquidity
The Fund is a continuously offered, diversified, unlisted closed-end management investment company that is structured as an “interval fund.”
In order to provide liquidity to shareholders, the Fund has adopted a fundamental investment policy, which may only be changed with shareholder approval, to make quarterly offers to repurchase between 5% and 25% of its outstanding Shares at NAV. Subject to applicable law and approval of the Fund’s Board of Directors, for each quarterly repurchase offer, the Fund currently expects to offer to repurchase at least 5% of the Fund’s outstanding shares at NAV.2 Shares are not otherwise redeemable. Shares will not be listed on any national securities exchange.
Shares repurchased by the Fund are subject to an early withdrawal charge of 2.00% for withdrawals made within one year of an investor’s investment date. There is no guarantee that shareholders will be able to sell all of the shares they desire in a repurchase offer.
1 There is no guarantee that the investment strategy described above will be successful or lead to positive performance of the Fund. See the Fund’s prospectus for additional information regarding investment strategies and risks.
2 There is no assurance monthly distributions will be maintained at the current level or paid at all.
3 This amount may be adjusted by the Board at any time to an amount no less than 5% nor more than 25% of the Fund’s outstanding shares. Shares are not otherwise redeemable. Shares will not be listed on any national securities exchange.
