AFA Asset Based Lending Fund
AMCLX Snapshot As of 4/1/2025
2.
The 1 Year Distribution Rate is the sum of the four quarterly distribution rates over the prior twelve months. Each quarterly distribution rate is calculated by dividing the actual dividend distributed by the net asset value on the prior day. The distributions over the prior twelve months included ordinary dividends and capital gains and did not include any return of capital. The 1 Year Distribution rate will vary over time, should not be confused with yield, and is not a predictor of future returns.
Overview
Why Private Credit
Attractive Income Potential
Increased bank regulation has created an opportunity for private lenders to originate loans at favorable terms.
Historically Low Volatility
Private loans have historically exhibited lower volatility than publicly traded fixed income.6
Why Asset Based Lending
Defined Source of Repayment
Loans are secured by physical and financial assets as collateral.7
Differentiated Source of Returns
Asset based loans provide diversification to other segments of the private credit market.
What Sets the AFA Asset Based Lending Fund Apart
Sourcing Premium
Specialized Expertise
Loans are originated by a select group of boutique lending platforms, each with unique skills and sourcing ability in their market niche
Diversification
The portfolio is diversified across a broad array of industries and collateral types
5.
6.
There can be no assurance that the amounts realized by liquidating collateral will be sufficient to offset any potential payment defaults.
Performance
As of 3/31/2025
| Total Return | Average Annual Return | |||||
|---|---|---|---|---|---|---|
| Month | YTD | 1YR | 2 YR | 3 YR |
Inception 6/30/2021 |
|
| AMCLX | 0.80% | 2.45% | 9.47% | 9.12% | 7.43% | 6.76% |
| CS Leveraged Loan Index | -0.26% | 0.61% | 7.01% | 9.68% | 7.10% | 6.13% |
| BBG US Corporate High Yield Index | -1.02% | 1.00% | 7.69% | 9.41% | 4.98% | 3.04% |
| BBG US Aggregate Bond Index | 0.04% | 2.78% | 4.88% | 3.28% | 0.52% | -1.19% |
Monthly Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | - | - | - | - | - | - | 0.00% | 0.30% | 0.61% | 0.50% | 0.30% | 0.51% | 2.25% |
| 2022 | 0.30% | 0.30% | 0.20% | 0.51% | -0.51% | -0.85% | -0.21% | 0.73% | 0.58% | 0.10% | 1.04% | 0.62% | 2.84% |
| 2023 | 0.86% | 0.53% | 0.66% | 0.21% | 0.53% | 0.77% | 0.96% | 0.74% | 0.88% | 0.63% | 0.74% | 0.60% | 8.44% |
| 2024 | 0.86% | 0.85% | 0.67% | 0.85% | 0.74% | 0.67% | 0.95% | 0.52% | 0.78% | 0.52% | 0.83% | 0.78% | 9.41% |
| 2025 | 0.76% | 0.86% | 0.80% | - | - | - | - | - | - | - | - | - | 2.45% |
Cumulative Performance Since Inception*
Past performance is not indicative of future results. Performance data represents past returns and future returns may be higher or lower. The value of the Fund’s shares will fluctuate, and upon redemption an investor’s shares may be worth more or less than the original cost. Total returns include reinvestment of distributions and are net of the Fund’s net expenses. The Fund’s investment program is speculative and entails substantial risks. Investors could lose some or all of their investment. Please see the Investment Considerations below. * Inception date is June 30, 2021.
Source: Bloomberg, AFA. The Bloomberg US Corporate High Yield Bond Index (BBG HY) measures the USD-denominated, high-yield, fixed-rate corporate bond market. The Credit Suisse Leveraged Loan Index (CS Lvgd Ln) represents the investable universe of USD-denominated, full-funded, broadly syndicated, term loan facilities. The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, US dollar-denominated, fixed-rate taxable bond market.
Portfolio
As of 4/1/2025
Allocations by Position Type8
Industry Allocations8
7.
Management
Investment Advisor
Alternative Fund Advisors (“AFA”) is responsible for the Fund’s investments and day-to-day management of the Fund’s portfolio. AFA was established in 2020 and is dedicated to managing interval funds.
Sub-Advisor
Atrato Consulting provides research and due diligence on custom alternative investments for wealth managers, endowments, and foundations and has over $2.1 billion in assets under advisement as of December 31, 2023.
Fund Facts
Structure
Interval Fund
Eligibility
Accredited Investors
Ticker
AMCLX
Minimum Investment
$1 million at firm level
No minimum at account level
CUSIP
00123V103
Purchases
Daily at NAV
Net Assets
$240 million (3/31/2025)
Redemptions*
Quarterly with limit of 5-25% of Fund assets each quarter
Subscription Agreement
Tax Reporting
1099
*
*The required quarterly repurchase offer is expected to be 5% of the Fund’s assets but may range from 5% to 25% subject to approval by the Board of Trustees. If a purchase offer is oversubscribed, shareholders will only be able to have a portion of their shares repurchased. The fund has limited liquidity and there is no guarantee that shareholders will be able to tender their shares when or in the amount they desire.
Fund Materials
Regulatory Documents
Repurchases and Distributions
Fund Literature and Reports
How to Invest
The AFA Asset Based Lending Fund is an interval fund that makes it easy for investment professionals to invest without the need for subscription agreements. It features point-and-click trading using the ticker AMCLX, 1099 tax reporting, and daily subscriptions.
Interested in AFA Asset Based Lending Fund for Your Clients?
- For an individual bond or loan (each an “Instrument”), the Yield to Maturity is the overall interest rate earned by an investor who buys the Instrument at the market price and holds it until maturity. Average Yield to Maturity of the Fund is the weighted average of all the Instruments held by the Fund after subtracting the Fund’s net expenses. It should not be construed as a predictor of future returns and will fluctuate with market conditions.
- Performance as of 3/31/2025.
- The Distribution Rate represents the annualized distribution rate as of the most recent quarter-end, calculated by dividing the actual dividend distributed by the net asset value on the prior day. The tax character of the distributions will be finalized at year-end and may include ordinary dividends, capital gains and return of capital. Distributions are not guaranteed and may vary over time. The Distribution Rate should not be confused with yield and is not a predictor of future returns.
- Median Loan Size is calculated as the weighted median using the relative weight of each loan in the Fund as of the most recent holdings information from the underlying managers.
- Fund Leverage represents Fund level borrowings net of cash (if any) as a percentage of the Fund’s net assets as of 4/1/2025. Underlying Fund holdings may utilize additional leverage as part of their investment strategy.
- Based on the standard deviation of returns of the Cliffwater Direct Lending Index (“CDLI Index”, an index or private loans) compared to the CS Leveraged Loan Index (“CSLL Index”, an index of publicly traded bank loans) from 10/1/2015 to 6/30/2023, which were 3.16% and 7.12% respectively. Standard deviation measures the range of an investment’s performance. The greater the standard deviation, the greater the investment’s volatility. Private loans are less liquid and may have greater risk than traded bank loans since, unlike traded bank loans, private loans are not tradeable and are generally held to maturity. The CDLI Index measures the performance of U.S. middle market corporate loans as represented by the underlying loans of exchange-traded and unlisted Business Development Companies, subject to certain eligibility criteria. The CSLL Index measures the performance of publicly traded bank loans, as represented by the investable universe of USD-denominated, fully-funded, broadly syndicated, term loan facilities.
- There can be no assurance that the amounts realized by liquidating collateral will be sufficient to offset any potential payment defaults.
- Allocations are shown as a percentage of gross assets excluding fund liquidity as of 4/1/2025. This analysis looks through any fund holding to the underlying asset. Allocation percentages will change over time and may not be representative of future allocations. The Fund may stop allocating to the sectors consistent with the Fund’s prospectus without notice.
Investment Considerations and Disclosures
Read the prospectus carefully before you invest.
Investors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This information is included in the Fund Prospectus and a copy may be obtained by calling 800-452-6804 or by contacting us here.
An investment in the Fund involves a high degree of risk. An investment in the Fund should be viewed only as part of an overall investment program and you should invest only if you can sustain a complete loss of your principal. Please read the prospectus carefully. An investment in the Fund is subject to, among others, the following risks:
- The Fund is not intended as a complete investment program but rather the Fund is designed to help investors diversify into private credit investments.
- The Fund is a “nondiversified” management investment company registered under the Investment Company Act of 1940. Since the Fund is non-diversified, it is subject to higher reduction of capital and volatility than a fund more proportionately allocated among a large number of securities.
- An investment in the Fund involves risk. The Fund is new with no significant operating history by which to evaluate its potential performance. There can be no assurance that the Fund’s strategy will be successful.
- The Fund may use leverage its investments by “borrowing.” The use of leverage increases both risk of loss and profit potential.
- The Fund is subject to large shareholder transaction risks which may cause the Fund to sell portfolio securities at times when it would not otherwise do to so satisfy large shareholder redemptions.
- Shares of the Fund are not listed on any securities exchange and it is not anticipated that a secondary market for shares will develop.
- Shares are appropriate only for those investors who can tolerate a high degree of risk, and do not require a liquid investment.
- There is no assurance that you will be able to tender your shares when or in the amount that you desire. Although the Fund will offer quarterly liquidity through a quarterly repurchase process, an investor may not be able to sell or otherwise liquidate all their shares tendered during a quarterly repurchase offer.
- The Fund’s investment in private credit companies is speculative and involves a high degree of risk, including the risk associated with leverage.
The Fund has an interval fund structure pursuant to which the Fund, subject to applicable law, conducts quarterly repurchase offers for no less than 5% of the Fund’s Shares outstanding at NAV. While the quarterly repurchase offer is expected to be 5%, the amount of each quarterly repurchase offer may be 5% to 25% subject to approval of the Board of Trustees (the “Board” and each of the trustees on the Board, a “Trustee”). It is also possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion of their Shares repurchased. There is no assurance that you will be able to tender your Shares when or in the amount that you desire.
Distributed by Foreside Fund Services, LLC
