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.
https://altacfunds.com/
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SOURCE Alternative Access Funds