NEW YORK, Aug. 6, 2020 /PRNewswire/ -- Alternative Access Funds, LLC ("AAF") is pleased to announce that its registration for the AAF First Priority CLO Bond ETF is currently scheduled to become effective on August 14th 2020. Alternative Access is expected to be one of the first in the industry to give investors the ability to purchase exposure to the first-priority collateralized loan obligation ("CLO") bonds space via an exchange traded fund ("ETF") product (under the ticker 'AAA').
After spending 17 years on Wall Street, Peter Coppa, founded Alternative Access Funds in 2018 with the aim of providing broader access to financial products typically only accessible to wealthy and institutional investors.
Mr. Coppa notes, "Alternative Access strives to level the playing field in all areas of the investment universe, particularly with credit products, giving both institutional and retail investors greater access, liquidity and transparency. With the recent adoption of other credit-focused ETFs, we felt that the natural evolution was for a first-priority CLO bond instrument, especially as investors are thirsting for yield, with strong capital preservation characteristics."
The new ETF will focus its investments in US dollar denominated first-priority AAA-rated CLO bonds with the aim of delivering returns consistent with the general broadly syndicated floating rate AAA-rated CLO bond universe. The ETF's investment objective is to seek capital preservation and income.
Two other partners, Todd Themistocles and Steve Kim, will help manage Alternative Access' ETF efforts. The 'AAA' ETF is expected to begin trading in early September if all approvals and launch objectives are met.
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and once available a copy may be obtained without charge, by calling the Fund at 1-800-617-0004. Read it carefully before investing.
The information in this communication is not complete and may be changed. We may not sell these securities until the registration statement filed with the SEC is effective. This communication is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Investing involves risk. Principal loss is possible. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemed from the funds. Brokerage commissions will reduce returns.
The Fund is also subject to the following risks: CLOs are generally backed by a pool of credit-related assets that serve as collateral. Accordingly, CLO securities present risks similar to those of other types of credit investments, including default (credit), interest rate and prepayment risks. In addition, CLOs are often governed by a complex series of legal documents and contracts, which increases the risk of dispute over the interpretation and enforceability of such documents relative to other types of investments. An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. The Fund's income may decline if interest rates fall.
The Fund is a recently organized, diversified management investment company with no operating history. Additionally, the investment adviser has not previously managed a registered fund, which may increase the risks of investing in the Fund.
Credit ratings are provided by a nationally recognized statistical rating organization (NRSRO). Ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as Standard & Poor's, Moody's and Fitch. These firms evaluate a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion. Ratings are expressed as letters ranging from 'AAA', which is the highest grade, to 'D', which is the lowest grade.
The AAF First Priority CLO Bond ETF is distributed by Quasar Distributors, LLC.
SOURCE Alternative Access Funds