1. How Payment Frequency Affects Cash Flow

Monthly distributions provide a steady stream of cash, ideal for covering ongoing expenses or creating predictable reinvestment opportunities. Quarterly payouts deliver larger lump sums, which can be useful for specific planned expenses or bulk reinvestments — but require more interim liquidity management.

2. Advantages of Monthly Income

• Predictability: Regular deposits simplify budgeting and personal cash flow planning.
• Faster compounding: Reinvesting monthly allows earnings to start working sooner.
• Investor psychology: Frequent payouts can increase investor satisfaction and perceived stability.

3. Advantages of Quarterly Income

• Administrative efficiency: Fewer payment cycles mean lower processing costs for the manager.
• Larger tranches: Bigger lump sums can be deployed into larger investments without piecemeal execution.
• Buffer building: Managers can smooth distributions by holding back reserves until the end of the quarter.

4. Which Fits Different Investor Profiles

Monthly income is often preferred by retirees, income-focused accredited investors, and those funding regular commitments. Quarterly income appeals to investors with fewer liquidity needs and a focus on compounding or lump-sum deployment.

5. Our Approach at FG Capital Advisors

Our Monthly USD Income Fund pays investors monthly in USD, mirroring the natural payout cycle of our underlying strategy. This approach provides predictable, calendar-aligned cash flow while still allowing us to manage reserves and smooth returns.