Destra multi-alts fund moves away from real estate

Shareholders in the Destra Multi-Alternative Fund have approved changes that remove the requirement for the fund to invest more than a quarter of its assets in real estate-related companies, instead moving to liquid hedge strategies.

At a shareholder meeting held on 18 December, around 79 per cent of votes were cast in favour of a proposal revising the fund’s industry concentration policy. The change eliminates the obligation for the fund to allocate more than 25 per cent of its net assets to securities issued by companies operating in the real estate sector.

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Destra Capital Advisors, the Montana-based financial advisory firm, said the move would give the fund greater flexibility to pursue attractive investment opportunities while continuing to target its long-term objectives.

The Destra Multi-Alternative Fund is positioned as a core alternative investment vehicle, with exposure to direct private equity and alternative income strategies, including real estate and alternative credit.

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“With the passage of the proxy proposal, we can direct the portfolio to the best opportunities regardless of asset class,” said Mark Scalzo, portfolio manager and chief investment officer at Validex Global Investing, the fund’s sub-adviser. “Given our current assessment of real estate opportunities, we intend to transition a meaningful portion of this exposure into liquid hedged strategies, using our Validex Dynamic Alpha process.”

The proposal was unanimously recommended by the fund’s board of trustees before being put to shareholders.

Following approval, the revised concentration policy will come into effect, and the fund will no longer be required, under normal circumstances, to maintain a significant allocation to real estate-related investments.

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