Destra Multi-Alternative Fund

Under applicable law, an investment company may not concentrate its investments in any particular industry or particular group of industries, unless it does so pursuant to a fundamental policy that can be changed only with shareholder approval. In addition, the investment company must concentrate its investments consistent with any policy to do so, and an investment company must specifically have a fundamental policy governing investments in real estate. Although “concentration” is not defined in the 1940 Act, the SEC has generally regarded a fund as concentrating its investments in an industry if the fund invests 25% or more of its assets in securities of issuers in that industry.

The Fund’s existing fundamental concentration policy requires that, under normal circumstances, the Fund invests over 25% of its net assets in the securities of companies in the real estate industry, which the Fund defines to include interests, debt or equity of both publicly traded and private companies engaged in the real estate industry, including, but not limited to, real estate investment trusts (“REITs”), mortgage backed securities, interest in pooled investment entities, and other forms of securities relating to or involving real estate. This policy is fundamental and may not be changed without stockholder approval.

If approved by stockholders, the new policy would be revised so that the Fund would no longer invest over 25% of its net assets in the securities of companies in the real estate industry.

Destra and Validex believe that the current investment requirement is not necessary for the Fund to achieve its investment objective and that the proposed change will give Destra and Validex more flexibility to seek to achieve the Fund’s investment objective and could improve risk-adjusted returns.

Destra and Validex believe, and the Board of Trustees agrees, that the proposed change in concentration policy will benefit the Fund and its stockholders.