NEW YORK, Sept. 9, 2020 /PRNewswire/ -- Alternative
Access Funds, LLC ("AAF") is pleased to announce the launch of the
AAF First Priority CLO Bond ETF. The first day of trading commenced
today on the New York Stock Exchange under the ticker symbol
'AAA'.
The ETF will be one of the first of its kind in the marketplace
that gives investors the ability to purchase direct exposure to
first-priority collateralized loan obligation ("CLO") bonds. The
ETF will invest in US dollar-denominated first priority CLOs that
are rated AAA or equivalent by various nationally recognized
statistical ratings organizations ("NRSRO"). The objective of the
ETF will be to seek capital preservation and generate current
income.
Founding partner Peter Coppa
expressed, "We are excited about launching 'AAA' on the NYSE. From
the first day we started this venture almost two years ago, our
mission was to give investors access to a segment of the credit
universe that we believe is often misunderstood but in fact has the
potential to provide relatively attractive returns with a great
deal of capital preservation. The CLO market has matured to a point
where all types of investors, both institutional and retail, should
be able to invest in it. With the launch of 'AAA', we believe it
will generate additional interest in CLOs, specifically with
respect to the AAA tranches, and introduce greater transparency and
regulatory oversight into the asset class. Investors can be the
beneficiary of this".
'AAA' is the first ETF launched by AAF. After spending 17 years
on Wall Street, Coppa founded AAF in 2018 and is joined by two
partners, Todd Themistocles and Steve
Kim, who will help manage AAF's ETF rollout.
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.
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:
Collateralized Loan Obligations (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.
Contact: Peter Coppa,
pcoppa@altacfunds.com
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SOURCE Alternative Access Funds