What tax implications does the investment have?
Like nearly all fixed-income or credit investments, the Strategic Credit Fund’s target investments are taxed at an investor’s ordinary income tax rate. Select investments may incur phantom income without corresponding distributions, which will require a tax payment by the investor. The ideal investment vehicle for the investment is a tax-deferred account such as a 401(k) or IRA. The Fund’s REIT subsidiary is expected to block all unrelated business taxable income (UBTI) and effectively connected income (ECI).