What is the projected timeline and process for liquidating the fund's assets, and how might this affect the fund's net asset value leading up to the termination date?

Projected timeline & liquidation process

BNY Mellon Alcentra Global Multi‑Strategy Credit Fund (XALCX) has set the fund’s termination date for the close of business on or about August 29 2025 – roughly the sixth anniversary of its IPO. In accordance with the charter, the board will begin the orderly wind‑down of the portfolio shortly after that date. The typical fund‑closure sequence is a step‑down sale of the underlying credit positions over a 3‑ to 6‑month window, using block‑trade executions, secondary‑market “soft‑sell” windows and, where necessary, outright purchases by the fund’s liquidity‑provider. The goal is to avoid market‑impact costs and to preserve value, so the liquidation will be paced rather than a rapid fire‑sale.

Impact on Net Asset Value (NAV)

During the wind‑down, the NAV will be subject to two opposing forces. First, the realisation of the portfolio’s fair value – as the fund sells assets at market or slightly discounted prices – will gradually pull the NAV toward the cash‑equivalent level. Second, the transaction‑cost drag and price‑fluctuation risk inherent in credit‑instrument sales (especially in less‑liquid high‑yield or structured‑credit holdings) can create a modest downward bias, often widening the discount to the fund’s closing price. Historically, funds in a similar termination phase see NAV erosion of 1‑3 % over the final 6‑month period, with occasional short‑term spikes if a large position must be liquidated under stressed market conditions.

Trading implications

- Short‑term volatility: Expect modest price swings in the weeks leading up to the August 2025 close as the fund’s managers execute block trades.

- Potential discount: If the market anticipates a larger‑than‑expected NAV drag, the share price may trade at a discount to the disclosed NAV, presenting a relative‑value entry for credit‑biased investors.

- Liquidity‑driven buying pressure: As the fund converts securities to cash, the market may absorb a steady flow of credit assets, providing support to the broader credit market and limiting any sharp price drops.

Actionable take‑away: Monitor the fund’s disclosed liquidation schedule and periodic NAV updates. If the share price consistently trades below the disclosed NAV by more than the historical 1‑3 % wind‑down discount, a cautious long position could capture the eventual cash‑settlement premium at termination. Conversely, if the discount widens dramatically, consider a short‑position or hedging strategy to profit from the anticipated NAV compression as the fund’s assets are fully liquidated.