LCPMX Repurchase Offer, Nov 27, 2026: NAV $8.37, 15 Offers

What the fund is

LCPMX is a small interval fund. Its stated aim is “high current income from investments in municipal securities exempt from federal income tax and capital preservation,” and it buys mainly high-yield bonds, which the prospectus calls “below investment grade” or “junk” bonds, from smaller issuers, with fixed-rate maturities of 10 to 30 years. The prospectus lists senior living, education (including charter schools) and healthcare among the main sectors. It began operations on February 2, 2022 after taking over the assets of a private partnership that started on June 1, 2017.

It is not a large fund. Net assets were $16.2 million at January 31, 2023, $23.6 million in 2024, $34.3 million in 2025, $66.5 million in 2026 and $66.9 million at July 31, 2026 (financial highlights). In the year to January 31, 2026 the fund sold $35.1 million of new shares and paid $4.4 million for repurchased ones. In the six months to July 31, 2026 the two figures were $2.4 million sold and $3.1 million redeemed, so redemptions were larger than new sales (statement of changes in net assets).

For how this structure differs from a fund that only offers tenders at its board's discretion, see what an interval fund is; the fund is row 133 in our list of interval funds. The N-PORT shows net assets of $66,668,971.69 at July 31, 2026, about $0.19 million less than the N-CSRS figure of $66,861,794 because it carries $391,602 of liabilities against $198,501 in the semi-annual report; our list uses the N-PORT number.

The offer in one table

Three details decide how the offer works. First, tendering and pricing happen on the same day, so no one knows the price when they decide; the notice itself says the NAV on the pricing date “may be higher or lower than the NAV stated above.” Second, a holder whose broker handles the request must meet the broker's own cutoff, which is earlier than 4:00 p.m.; the notice says to give your adviser “all of the information that they require on or prior to the Repurchase Request Deadline.” Third, a request of $100,000 or more can need a Medallion signature guarantee, and a retirement account that does not say otherwise has 10% federal tax withheld.

One drafting slip: paragraph 5 says the fund “will not charge a repurchase fee, except as set forth in paragraph 10 below,” and paragraph 10 sets no fee. The prospectus also describes the price as NAV “reduced by any applicable repurchase fee” and charges a wire fee on proceeds, shown as $15 in the fee table and $25 in the repurchase section. We read the offer as carrying no repurchase fee, but the wire fee is a real cost for a holder who asks for a wire.

What the NAV has done

The N-23c-3 notice must quote a NAV from within seven days before the notice. Twelve quarterly notices give a series, and the semi-annual reports give the price actually used on each pricing date.

The price at pricing differed from the quoted one by as much as $0.16 (January 2026 to February 2026, +1.8%) and by as little as nothing (April to May 2026, our arithmetic). The new $8.37 is $0.31 below that, 3.6%, and 6.9% below the high of $8.99 priced on November 25, 2024 (our arithmetic).

The fund's reports do not say why. The financial highlights show only that in the six months to July 31, 2026 the fund earned $0.23 a share of net investment income, paid $0.22 and lost $0.01 a share on the value of its bonds, which left the NAV at $8.68, the same as at January 31, 2026; the October drop falls after the last report. Distributions of $0.22 per share for six months are about $0.11 for three months (our arithmetic), so if payouts continued at that rate they would cover roughly a third of a $0.31 fall. The fund has filed nothing since the semi-annual report that gives October's payout.

Fifteen offers: who sold, and how much

Each annual and semi-annual report lists the results of the completed offers. The table gives the share of outstanding shares the fund repurchased at the base offer of 5%.

What the table shows:

• The base 5% has been enough 13 times out of 15. Two offers went above it: 6.03% on November 27, 2023 and 7.00% on February 26, 2024. The second equals the 5% plus the optional 2%, so requests may have exceeded what the fund could take. The reports do not say whether those requests were prorated, so we do not know what holders who asked to sell more got.
• Requests have grown with the fund. In dollars, the four largest are $2.26 million (May 2026), $2.22 million (August 2025), $1.70 million (February 2024) and $1.39 million (November 2023). The $1.7 million repurchased in February 2024 was 7.00% of a much smaller fund, which is why the percentage is so high.
• A 5% offer today is about $3.2 million. That is 385,217 shares at $8.37 (our arithmetic, July 31 share count). The largest request on file, $2.26 million, would be about 70% of that. A request of that size in a falling market would not fill the offer, but it would use most of it.
• Averages mislead. The 15 offers average 2.08% of shares (our arithmetic), but the figure is a simple average of percentages from a fund that has more than quadrupled since February 2023.

Worked example of proration (our arithmetic): if holders tendered 10% of the shares, the fund would take 7% at most, so a holder who tendered $250,000 would get about $175,000 if the fund used its extra 2%, or $125,000 if it held to 5%, and would have to ask again next quarter for the rest, with no priority.

What is in the portfolio

At July 31, 2026 the schedule of investments lists 142 municipal bonds with a fair value of $64,747,687, which is 96.9% of net assets, across 35 state headings (our count). Wisconsin is 18.5% of net assets, Arizona 10.7%, Texas 8.9%, Michigan 5.9% and Colorado 5.2%. The fair-value-weighted coupon is 5.97% (our arithmetic). All the bonds are Level 2 prices from a pricing service and the fund reports no Level 3 holdings; 22.8% of net assets are Rule 144A securities that trade among institutions.

Four bonds carry footnote (b), “Represents issuer in default on interest payments”:

The four total $1,003,049, or 1.50% of net assets (our arithmetic). The tax-basis table shows $820,908 of net unrealized depreciation, which is 1.2% of net assets (our arithmetic). A portfolio of 142 small issuers, many of them unrated, is priced by an outside pricing service, with fair-value judgment by the adviser where it disagrees; a fund that wants to meet a 5% request in a quarter when prices fall may have to sell the more liquid bonds first. Nothing in the filings says that has happened.

What it costs, and what it paid

The prospectus dated May 31, 2026 shows total annual expenses of 1.76% of net assets: a 1.00% management fee, 0.75% other expenses and 0.01% acquired fund fees. A contractual waiver cuts that to 1.26%, and the ratio in the financial highlights is 1.25% net and 1.63% gross for the six months to July 31, 2026. The waiver is in force “through May 31, 2027”; the adviser can recoup what it waived for 36 months, and $876,119 was recoverable at July 31, 2026. There is no sales load.

Income and returns, from the semi-annual report:

For the year to July 31, 2026 the fund returned 10.19%, against 6.99% for the Bloomberg Municipal High Yield Index; over five years it returned 1.80% a year against 1.24% (semi-annual report). Those figures stop on July 31, before the fall to $8.37.

The six-month distribution of $0.22 a share is 5.07% a year on the $8.68 NAV (our arithmetic: $0.44 / $8.68). Because the payouts are tax-exempt income, the equivalent taxable yield at the top federal rates is 8.56% if you count the 3.8% net investment income tax (40.8% in all) and 8.05% at 37% alone (our arithmetic). State tax depends on where the bonds are; the fund holds bonds in 35 state headings. Our tax-equivalent yield page sets out the formula, the 2026 brackets and the state layer.

What a reader can do with this

This is the decision, not a recommendation either way.

1. If you hold shares and need the cash, the deadline is 4:00 p.m. Eastern on November 27, 2026, and your broker's cutoff may be earlier. You can withdraw until then. Do not count on a price: it is the November 27 NAV.
2. If you do not need the cash, the notice says to disregard it. Next quarter's notice should arrive near the end of January 2027 (our inference: the last twelve notices were each filed on the 30th or 31st of the month before the offer).
3. If you sell at a loss, watch the wash-sale rule. The prospectus says a loss realized on a sale or exchange of shares “will be disallowed” if you acquire shares, “whether through the automatic reinvestment of dividends or otherwise,” within 61 days beginning 30 days before and ending 30 days after the sale. A holder who keeps reinvesting monthly distributions may fall inside that window. We cover this in wash-sale rules for REIT, BDC and interval fund tenders.
4. If you are comparing deadlines, see the other repurchase windows this quarter in Q4 2026 redemption and tender deadlines.

FAQ

All figures are from the fund's SEC filings, read on EDGAR on October 31, 2026: Form N-23c-3 of October 30, 2026 (accession 0001580642-26-007267) and the eleven earlier notices filed January 31, April 30, July 31 and October 31, 2024, January 31, April 30, July 31 and October 31, 2025, and January 30, April 30 and July 31, 2026 (0001580642-24-000640, -24-002380, -24-004018, -24-006475, -25-000613, -25-002638, -25-004632, -25-006876, -26-000585, -26-002766, -26-004747); Form N-CSRS for July 31, 2026 (0001580642-26-006735); Forms N-CSR for January 31, 2026 (0001580642-26-002432), January 31, 2025 (0001580642-25-002268) and January 31, 2024 (0001580642-24-002063); the prospectus and statement of additional information of May 31, 2026 (Form 486BPOS, 0001580642-26-003348); and Form N-PORT for July 31, 2026 (0000910472-26-014634). Percent changes, day counts, the 5% share and dollar amounts, the average of the 15 offers, bond counts and weighted coupon, the defaulted-bond total, the annualized distribution, tax-equivalent yields and the proration example are our arithmetic. The timing of the next notice is our inference. This is analysis of public documents, not investment, legal or tax advice.