Alternative Access Funds Launches First Priority CLO Bond ETF 'AAA'

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