Invico | IDIF 2018 Special Distribution

09/05/19

INVICO DIVERSIFIED INCOME FUND UPDATE:
Invico Capital Corporation is pleased to announce our audit is complete and 2018 has proven to be one of the Trusts most successful years. The Invico Diversified Income Fund has declared a special profit-sharing distribution for the 2018 calendar year end ranging from 0.65% to 5.25%. The result is an overall total annualized return ranging from 9.2% to 13.25% on the applicable profit-sharing units.

PLEASE NOTE:
· Annual special profit-sharing distributions, ranging from 0.65% to 5.25%, are being paid to clients on Thursday May 16, 2019. The actual special profit-sharing distributions are pro-rated for all partial year unitholders.
The following tables outline the specific details of the special profit sharing distribution for 2018 by unit class:

IDIF NAV – After Affect of Special Distribution:

Variance in Special Distribution:

There were three main contributing factors for the profit sharing variance between classes of units.

1) The difference between the target preferred return is the largest contributor to the variance in special distribution. Class D units, prior to the special distribution, cumulated an additional 6% over the last three years, since our last special distribution was paid. Class D remains the highest return EMD unit when measured on a cumulative basis.

2) In December 2015, we rolled over the Invico Pure Yield Fund into the Invico Diversified Income Fund Class C units. New commissions were not paid for the rollover as compared to a new sale and as a result these reductions in expenses resulted in a higher class C NAV. The Class C units had the highest NAV prior to the profit sharing and this facilitated the largest profit sharing declaration.

3) Class G units carry the highest commission load and a smaller profit share was declared to ensure the units remain above the initial issue price of $10.00. Most of the profit accretion is used to offset these issue costs and, of note, unit holder NAV are above the $10 issue price.

Note the profit sharing accounting is also audited by PWC.

December 2018 marked the 63rd month for the Invico Diversified Income Fund. Over this period, the Trust experienced very challenging energy markets from 2015-2017. We are pleased with the track record that we have established. The Trust has never missed a distribution or redemption in 63 months, and the trend continues into 2019.

As energy markets strengthened, IDIF US energy focused assets performed at record levels in 2018, which has diversified the Trust away from the flat Canadian energy market. US energy assets have significantly outperformed Canadian energy assets, and this has continued into 2019. The actions taken by the manager in the downtown are now being rewarded.

With this announcement of our special distribution for 2018, this marks four of the six years that Invico has declared and paid a special distribution to our ~5,000 investors.
We look forward to a prosperous 2019 and your support is truly appreciated.

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