Variant Alternative Income Fund (NICHX): Positive Returns, Shrinking NAV
How distributions and write-downs explain the paradox (and what to watch for)
Oxymoron, interval-fund style:
The Variant Alternative Income Fund has posted positive fiscal year returns every single year since inception. FY2022: +11.79%. FY2023: +8.28%. FY2024: +9.62%. Even FY2025, which included a brutal write-down, still came in at +3.70%.
Now here's the other number: NAV per share has fallen from $28.93 in April 2023 to $26.68 by October 2025. That's a decline of ~7.8% over roughly two and a half years.
Positive returns every year and a slowly declining NAV. How can this be?
Today, we’ll talk about how a fund can show positive returns every year while losing value underneath (and why looking at returns alone will mislead you).
If you invest in semi-liquid funds, start here:
And if you need a refresher on interval vs tender offer funds, read this:
Disclosure: This case study is provided for educational and informational purposes only and should not be construed as investment, legal, tax, or financial advice. The views expressed are solely those of the author. All examples are illustrative in nature and not guarantees of future outcomes. Readers should conduct their own independent research and consult with qualified professionals before making any investment or financial decisions.
The Distribution Mechanic
The answer starts with distributions (but doesn’t end there).
Let me show you the math from the fund's own per-share data. Note the fund reports annual performance on a calendar year basis, but the fund's fiscal year ends on April 30th. I did the math for you and converted everything to the same time period (so reported returns are on a fiscal year basis):