Invico Diversified Income Fund

Invico Diversified Income Fund (“IDIF” or “the Fund”) is an award-winning open-ended mutual fund trust designed to provide monthly income. With a diversified portfolio of high-yield credit strategies and energy investments across North America, IDIF focuses on generating competitive returns while mitigating risk. Since 2013, IDIF has successfully delivered results to investors through asset collateralization and direct ownership in real assets, offering diversification and monthly income.

Why

Why Choose IDIF?

Diversified Income
& Tax Efficiency

IDIF combines credit strategies and energy assets to deliver diversified, monthly income with potentially tax-efficient returns. With over eleven years of success, the Fund has served as a proven solution for consistent income.

Cross-Border
Opportunities

Tapping into Canadian and U.S. markets, IDIF provides access to high-quality mid-market investments, that offer strong credit quality and competitive returns through sector and geographic diversification.

Expertise
 & Proven Results

Backed by over 100 years of combined technical underwriting experience, IDIF’s Investment Team has a strong track record of securing high-quality investments, ensuring adaptability and resilient performance in changing markets.

Fund Overview

Fund Performance

Growth of $10,000 invested in IDIF Class F ^1,2,3

Class F Annual Compound Total Returns ^1,2,3

1-Year

5.1%

3-Year

7.3%

5-Year

10.7%

10-Year

10.1%

Since Inception¹

10.5%

Class F Historical Annual Distributions:

2014

14.3%

2015

13.1%

2016

10.5%

2017

10.5%

2018

12.6%

2019

7.1%

2020

7.3%

2021

13.2%

2022

17.2%

2023

7.5%

2024

6.0%

Fund Materials

¹ Combined returns include predecessor Class F3 from December 19, 2013, to May 25, 2021, and Class F from May 26, 2021, onward. Class F inception date: May 26, 2021; Class F3 inception date: December 19, 2013. Combined returns shown assume Class F3 units were converted at NAV to Class F at its inception on May 26, 2021. All outstanding Class F3 units were converted to Class F effective December 1, 2021.

² Class F returns assume all distributions were reinvested, are based on a NAV/unit issuance price, and are net of fees (without applicable rebates that may be available).

³ Class F3 returns are net of fees and assume all distributions were reinvested based on an issuance price of $10/unit until December 31, 2019, and NAV/unit thereafter, are shown for an investment of less than $500,000, and attribute special distributions to the year of declaration. Class F3 had different unit terms; if the current Class F terms had been applied to Class F3 units, the returns would have been different.

⁴ 2021 distributions have been annualized to provide a more relevant comparison to other years.

Portfolio Overview

Lending Strategies

IDIF offers a number of lending-based solutions for companies seeking short-term capital to assist in strategic operations, acquisitions, or expansions, including bridge loans, multi-family residential, and commercial mortgages.

Energy Working Interests

Energy working interests allow IDIF to invest in oil and natural gas production and drilling operations across North America and benefit from full participation in the profits of successful wells and lowered cost of entry without having to carry the overhead typically sustained by a traditional energy company.

Equity Yield

A subset of IDIF’s lending strategies approach, equity yield investments arise when the Fund acquires equity through loan agreements, restructurings, or secondary market opportunities to enhance value and maximize recoveries.

Fund Details

Fund Name: Invico Diversified Income Fund

Fund Type: Mutual Fund Trust

Inception Date: September 2013

Assets Under Management: $501 million as at December 31, 2024

Available Units:
Class F – ICC200F
Class A – ICC200A
Class B – ICC203B
Class FU – ICC200FU

Additional institutional, USD, and exempt market units available.

Registered Account Eligibility: Yes

Distributions: Monthly

Purchases: Monthly

Valuations: Monthly

Redemptions: Quarterly (45-day notice)

Management Fee: 1.75%, tiered rebates available starting at AUM ≥ $3 million

Please refer to the Fund Facts for additional information and disclosures.

How

How to Invest

Invico offers flexible investment options for both institutional and individual investors.

Institutional Investors & Financial Advisors

Connect with our sales team to learn more about incorporating Invico’s alternative investment funds into your portfolio.

Individual 
Investors

Speak to your financial advisor about investing in IDIF and other Invico funds.

Offering 
Documents

Request a copy of the Offering Memorandum for full details and disclosure on IDIF.

FAQ

Frequently Asked Questions

What is the Fund’s investment strategy?

IDIF is focused on generating a high level of current income with the potential for moderate capital appreciation. It achieves this by investing in a diversified portfolio that includes lending strategies and energy working interests.

What are lending strategies?

Lending strategies involve investing in debt or debt-like obligations, such as asset-backed corporate lending, commercial mortgages, syndicated credit investments, and loans for oil and gas development in Canada and the U.S. This can include secured loans, consumer financing, and other types of debt, either through direct lending or by acquiring loans in the secondary market.

What are energy working interests?

Energy working interests involve investing in oil and gas properties by owning a stake in producing or non-producing reserves or undeveloped land in Canada and the U.S. This also includes earning royalties from these properties.

What is equity yield?

Equity yield refers to returns from equity investments tied to lending strategies. This can include equity acquired through loan agreements, debt restructuring, or insolvency processes, as well as secondary market investments.

How does the Fund deal with non-performing loans?

If a loan isn’t performing, the Investment Team will update forecasts and review costs with the borrower. If issues continue, Invico may take possession of collateral or restructure the business to recover the loan.

When is a loan considered in default?

Loans are monitored regularly for compliance and payments. If a loan misses a payment or breaches its terms, it may be classified as in arrears or default. The team then pursues appropriate collection efforts.

What percentage of loans have a “paid-in-kind (PIK)” interest arrangement?

Invico has a policy of avoiding paid-in-kind loans and discloses protracted PIK loans as defaults in the portfolio.

How does Invico source new investments?

Most investment opportunities come through referrals from trusted associates. If a deal aligns with IDIF’s investment strategy and criteria, it moves to the initial evaluation stage.

Does the Fund use hedging strategies?

Yes, IDIF uses hedging to protect its value and cash flow from market volatility. This includes commodity hedges like costless collars and fixed swaps, which set price floors and allow for upside, and currency hedges to guard against changes in USD exchange rates.

Does the Fund have an Independent Review Committee?

Yes, Invico maintains an Independent Review Committee (“IRC”) with at least two independent members. You can view the current members on our IRC here.

Do I have the option to reinvest distributed income into IDIF?

Yes, investors can enroll in IDIF’s Distribution Reinvestment Plan (“DRIP”) to have their income reinvested into additional units each month.

How can investors track their personalized performance?

Investors can track their personalized performance through quarterly statements and reports, which are available on the Invico Investor Portal.

Are there any concentration limits in the Fund?

Yes, no more than 33% of the Fund can be invested in any security or related group of securities. The target is to keep exposure to any single lending arrangement below 10% of the Fund’s net asset value.