AS OF 3/31/2015
FACTSHEET
AR Capital BDC Income Fund
Class A Shares
Class C Shares
Ticker
BDCAX
BDCCX
CUSIP
756076402
756076857
Fund Information
Inception Date
May 2, 2014
Minimum Initial/
Subsequent Investment
$2,500/$250
Dividend Frequency
Quarterly
Fees and Expenses (Class A Shares)
6.61%
Gross Expense Ratio
Expense Reimbursement
(0.66)%
Net Expense Ratio
5.95%
Net Expense Ratio excluding AFFE2
1.50%
1
Fees and Expenses (Class C Shares)
Investment Objective
The AR Capital BDC Income Fund’s (the “Fund”) investment objective is to provide a high
level of income with the potential for capital appreciation. The Fund will invest substantially
all (and under normal market conditions, at least 80%) of its net assets in common stocks and
other equity securities of business development companies (“BDCs”) that are traded on one or
more nationally recognized securities exchanges.
A Distinct Approach
In selecting BDCs for investment, BDCA Adviser, the Fund’s sub-adviser, seeks to identify
BDCs that, in its view, are paying attractive rates of distribution and appear capable of
sustaining that distribution level over time. BDCA Adviser follows an investment process that
identifies and seeks to avoid BDCs with “red flag” concerns, focuses on value driving criteria,
overweights BDCs with the best management teams and feathers in the preferreds.
• Distinct focus on traded BDCs
• Experienced management team
Performance (as of March 31, 2015)
Total Returns
1M
3M
6M
Y TD Since Inception3
Class A Shares without Sales Charge
0.24%
4.28%
1.76%
4.28%
1.56%
Class A Shares with Max 4.50% Sales Charge4
-4.26%
-0.37%
-2.82%
-0.37%
-3.00%
Gross Expense Ratio
7.36%
Wells Fargo BDC Index
-0.17%
4.80%
1.02%
4.80%
0.17%
Expense Reimbursement1
(0.66)%
S&P 500 Index
-1.58%
0.95%
5.93%
0.95%
12.06%
Net Expense Ratio
6.70%
Net Expense Ratio excluding AFFE2
2.25%
Advisers
Investment Adviser
National Fund Advisors, LLC (“NFA”)
Sub-Adviser
BDCA Adviser, LLC (“BDCA Adviser”)
5
6
Performance Commentary
For the one month ending March 31, 2015, Class A shares were up 0.2% outperforming
the Wells Fargo BDC Index by 41 basis points during that same time period. For the three
months ending March 31, 2015, Class A shares were up 4.3% compared to 4.8% for the Wells
Fargo BDC Index. For the six months ending March 31, 2015, Class A shares were up 1.8%
outperforming the Wells Fargo BDC Index by 74 basis points during that same time period.
Since Fund inception on May 2, 2014 through March 31, 2015, the Class A shares were up 1.6%
outperforming the Wells Fargo BDC Index by 139 basis points during that same time period.
Investment Team
Robert Grunewald
Portfolio Manager, BDCA Adviser
James Soltesz
Analyst, BDCA Adviser
Performance data quoted herein represents past performance, and past performance does not guarantee future results. The investment return
and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original
cost. Current performance may be lower or higher than the performance data quoted.
(1) NFA, the Fund’s investment adviser (the “Adviser”), has contractually agreed to waive a portion or all of its management fees and pay Fund
expenses (excluding acquired fund fees and expenses, interest, taxes and extraordinary expenses) in order to limit other expenses to 0.35% of
average daily net assets of the Fund’s shares (the ‘‘Expense Cap’’). The Expense Cap will remain in effect through at least August 31, 2015, and
may be terminated before that date only by the Board of Trustees of the Realty Capital Income Funds Trust. The Adviser may recoup any previously
waived fees and paid expenses from the Fund pursuant to this agreement for three years from the date they were waived or paid. (2) Because the
Fund is new, acquired fund fees and expenses, which are the indirect costs of investing in other investment companies, are based on estimated
amounts for the current fiscal year. (3) Inception date is May 2, 2014. (4) Class A Shares have a 1% CDSC for redemptions within less than one year for
investments of $1 million or more, which is not reflected in the returns. (5) The Wells Fargo Business Development Company Index is a float-adjusted,
capitalization-weighted index that is intended to measure the performance of all BDCs that are listed on the New York Stock Exchange (“NYSE
AMEX”) or NASDAQ and satisfy specified market capitalization and other eligibility requirements. The Index was created in January 2011 and has
no performance history prior to that date. (6) Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to
measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
One cannot invest directly in the index.
AS OF 3/31/2015
FACTSHEET
Portfolio Snapshot (3/31/2015)*
Top Holdings
Investment
Current Allocation
% of Total
5.05%
Equity
74.3%
Ares Capital Corp.
5.03%
Preferred
12.6%
New Mountain Finance Corp.
4.99%
Cash
13.1%
PennantPark Floating Rate Capital Ltd.
4.93%
American Capital Senior Floating Ltd.
4.56%
Garrison Capital Inc.
Solar Capital Ltd.
Dividend & Capital Gains Distributions
4.11%
Class A Shares
Apollo Investment Corp.
4.09%
Alcentra Capital Corp.
4.01%
Date
PennantPark Investment Corp.
3.85%
10/01/2014
TPG Specialty Lending Inc.
3.58%
12/22/2014 $ 0.1764
Top-10 Holdings
44.19%
Remaining Portfolio
42.73%
Cash & Equivalents
13.08%
Total Portfolio
100.0%
* Portfolio holdings and allocations subject to change without notice
and may not represent current or future portfolio composition or
allocations.
Dividend
Income
$ 0.1461
LT Capital
Gain
$
$
-
3/30/2015
$ 0.1640
$
-
Date
Dividend
Income
$ 0.1473
LT Capital
Gain
$
ST Capital
Gain
$
$
-
$
-
Return of
Capital
$
Total
Distribution
$ 0.1461
$
-
$ 0.1764
$
-
$ 0.1640
Class C Shares
10/01/2014
12/22/2014 $ 0.1637
3/30/2015
$ 0.1552
$
-
$
-
ST Capital
Gain
$
$
-
$
-
Return of
Capital
$
Total
Distribution
$ 0.1473
$
-
$ 0.1637
$
-
$ 0.1552
IMPORTANT DISCLOSURES
NATIONAL FUND ADVISORS, LLC IS AN SEC-REGISTERED INVESTMENT ADVISER THAT ADVISES THE FUND. THE
FUND IS MANAGED ON A DAY-TO-DAY BASIS BY BDCA ADVISER, WHICH IS ALSO AN SEC-REGISTERED INVESTMENT
ADVISER.
Investors should carefully consider the investment objectives, risks, charges and expenses of the AR Capital BDC Income Fund before investing.
This and other important information is contained within the Fund’s Prospectus, which can be obtained by calling (866) 271-9244, or by visiting
our website www.arcincomefunds.com. The Fund’s Prospectus should be read carefully before investing. Investing in the Fund involves risks,
including those summarized below.
• An investment in the Fund is generally subject to market risk, including the possible loss of the entire principal amount invested. An
investment in the Fund represents an indirect investment in the securities owned by the Fund, and accordingly is subject to the risks
associated with those securities.
• Like all financial instruments, the value of these securities may move up or down, sometimes rapidly and unpredictably. The value of your
investment in the Fund at any point in time may be worth less than the value of your original investment, even after taking into account any
reinvestment of dividends and distributions.
• The Fund’s portfolio will be significantly affected by the performance of the publicly-traded BDCs in which it invests and the performance
of such BDCs’ portfolio companies. BDCs typically invest in illiquid securities, make regular use of leverage and can charge higher fees
than other types of investment companies.
• The Fund may invest in medium- and small-capitalization companies, which may be newly formed or have limited product lines, distribution
channels and financial or managerial resources. The risks associated with these investments are generally greater than those associated
with investments in the securities of larger, more-established companies. This may cause the Fund’s net asset value to be more volatile when
compared to investment companies that focus only on large-capitalization companies.
• The Fund is classified as a non-diversified management investment company under the Investment Company Act of 1940, as amended. This
means that the Fund may invest a greater portion of its assets in a limited number of issuers.
Realty Capital Securities, LLC (member FINRA/SIPC), is the distributor for the AR Capital BDC Income Fund. Realty Capital Securities, LLC
is located at One Beacon Street, 14th Floor, Boston, MA 02108, phone: 877-373-2522, or visit our website: www.rcsecurities.com.
Shares of the AR Capital BDC Income Fund are not deposits or obligations of any bank, are not insured by the FDIC or any other agency.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE