The Yieldstreet Prism Fund allows investors to have exposure to numerous alternative asset classes with just a single investment allocation. The Fund is also the first Yieldstreet investment product that is available to all investors (regardless of net worth or accreditation status). But, unlike Yieldstreet’s single asset class offerings, when investing in the Fund, you’re purchasing shares in what is known as a Closed-End Fund (CEF). In order to calculate the per-share value of the Fund, we’ll be using what is known as Net Asset Value (NAV). Let’s take a closer look at NAV, how it is used, and how it will relate to the Yieldstreet Prism Fund.
NAV is determined by dividing the difference between a fund’s total assets and liabilities by the number of outstanding shares.
As a formula, NAV is represented as:
NAV = (Assets – Liabilities) / Total number of outstanding shares
For the Yieldstreet Prism Fund, the NAV will be determined on at least a quarterly basis, as well as when the Fund is reopened for shareholder subscriptions.
A share price is what people buy and sell shares for on an open market. For example, when you purchase stock in a company, the share price of a stock may rise and fall continuously throughout the day. The NAV price of a fund, however, is the per-share value of a fund’s assets (minus its liabilities) and is not continuously recalculated throughout the day. As we mentioned above, the NAV for the Yieldstreet Prism Fund will be determined on at least a quarterly basis.
NAV is essentially the value at which investors can buy shares of the Fund. For the Yieldstreet Prism Fund, shares won’t be traded on an open market, therefore the NAV will be calculated as the fair value for the Yieldstreet Prism Fund, allowing investors to purchase shares from the Fund at the determined NAV price. Because the NAV will include accrued interest, the timing of distribution payments has the potential to affect the NAV.
Yes the NAV fluctuates with the value of the assets in the Fund and with the income earned by the Fund. But over the long term, the NAV is expected to remain close to its initial value as the Fund expects to distribute income received to shareholders on a quarterly basis.
If you’re looking to learn more about distributions or the distribution rate of the Yieldstreet Prism Fund, please read our article on distribution rates and how they relate to the Yieldstreet Prism Fund.
If you would like to learn more about the Yieldstreet Prism Fund, please see the following resources:
To familiarize yourself with the details of the Yieldstreet Prism Fund, it’s important that you review the prospectus, available for download on this page. Still have additional questions regarding the Yieldstreet Prism Fund? Email the Yieldstreet Team at [email protected].
Investors should carefully consider the investment objectives, risks, charges and expenses of the YieldStreet Prism Fund before investing.
The prospectus for the YieldStreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund.
Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.
The securities described in the prospectus are not offered for sale in the states of Nebraska or, North Dakota or to persons resident or located in such states at this time. No subscription for the sale of shares will be accepted from any person resident or located in Nebraska or North Dakota at this time.
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.