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Tactical Income Closed-End Fund (CEF) Strategy

Overview

The Tactical Income Closed-End Fund (CEF) Strategy seeks to provide a high-level of after-tax total return for US taxable investors. Our multi-sector tactical asset allocation approach results in a cross-asset diversified income stream that is tax–advantaged. We believe that a customizable, multi-asset class approach provides the greatest flexibility to exploit closed-end fund opportunities. We specialize in identifying and capitalizing on discount movements and pricing anomalies to seek to provide above average, long-term outperformance versus the appropriate index whilst seeking to manage exposure to realized short term capital gains.

Tactical Income CEF Composite Performance Ending 30-Sep-22*

Inception Date: January 1, 2014. Performance results reflect the reinvestment of dividends and other earnings. Returns are net of fees and reflect the deduction of the 0.90% investment management fee. Past performance is no guarantee of future results. Periods over one year are annualized.

*Composite Description: The Tactical Income Closed-End Fund Composite was created in January 2014, and is an equity composite focused on US Markets, managed by City of London Investment Management. The investment objective is a high-level of post-tax total return, with a substantial component of tax-advantaged income. The strategy focuses on providing a tax-efficient portfolio for US-domiciled taxable investors. The Composite seeks to provide diversified income through a multi-sector tactical asset allocation approach. The Composite seeks to maintain low correlation to any major asset class. The strategy does not employ hedging or leverage at the fund level. The Composite employs listed funds, including closed-end funds and ETFs. The strategy is measured against a blended index composed of 50% S&P 500 net total return and 50% Bloomberg US Aggregate Bond Index total return, rebalanced daily.

**Index Description: The 50/50 S&P 500/Bloomberg US Aggregate Bond benchmark is a custom blended index calculated daily by City of London Investment Management by applying a 50% weighting to the S&P 500 Index (net total return) and 50% weighting to the Bloomberg US Aggregate Bond Index (total return).

The S&P 500 Index includes 500 leading companies and covers approximately 80% of the U.S. equity market’s available market cap. The Bloomberg US Aggregate Bond Index measures the investment grade, US dollar denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, fixed rate agency MBS, ABS and CMBS (agency and non-agency). Each index is unmanaged and has no fees. One cannot invest directly in an index. The holdings of the portfolio differ significantly from the securities that comprise each index.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (S&P); and this trademark has been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by CLIM. CLIM’s financial products are not sponsored, endorsed, sold or promoted by S&P, its respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

BLOOMBERG, BLOOMBERG INDICES and Bloomberg Fixed Income Indices (the “Indices”) are trademarks or service marks of Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Indices (collectively, “Bloomberg”) or Bloomberg's licensors own all proprietary rights in the Indices. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the Indices. Bloomberg makes no warranty, express or implied, as to the Indices or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. Back-tested performance is not actual performance. To the maximum extent allowed by law, Bloomberg, its licensors, and its and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any injury or damages - whether direct, indirect, consequential, incidental, punitive or otherwise - arising in connection with the Indices or any data or values relating thereto - whether arising from their negligence or otherwise.

The investment objective is a high-level of post-tax total return, with a substantial component of tax-advantaged income. The strategy focuses on providing a tax-efficient portfolio for US-domiciled taxable investors. The Composite seeks to provide diversified income through a multi-sector tactical asset allocation approach. The Composite seeks to maintain low correlation to any major asset class. The strategy does not employ hedging or leverage at the fund level. The Composite employs listed funds, including closed-end funds and ETFs. CEFs often trade at significant discounts from underlying NAV, and these discounts can increase significantly during certain market conditions. Investing in non-U.S. securities involves special risks and considerations not typically associated with investing in U.S. securities. These include risks associated with political and economic developments, higher operating expenses, non-U.S. withholding and other taxes that may reduce investment return, reduced availability of public information concerning issuers and the fact that non-U.S. issuers are not generally subject to uniform accounting, auditing and financial reporting standards or to other regulatory practices and requirements comparable to those applicable to U.S. issuers. Non-U.S. securities may trade with less frequency and volume than U.S. securities and therefore may exhibit greater price volatility.

Source: City of London Investment Management, S&P, Bloomberg

Definition of the Firm

City of London Investment Management Company Limited is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority and registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC).

CLIM claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

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City of London Investment Management Company Limited (“CLIM”) is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority (FCA) and is registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC).
Registered in England and Wales No. 2851236. Registered Office: 77 Gracechurch Street, London, EC3V 0AS, England.

© 2022 City of London Investment Management Company Limited.
All rights reserved.

City of London Investment Management Company Limited (“CLIM”) is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority (FCA) and is registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC). Registered in England and Wales No. 2851236. Registered Office: 77 Gracechurch Street, London, EC3V 0AS, England.

© 2022 City of London Investment Management Company Limited. All rights reserved.