AFA Private Credit Fund
Focused on Asset-Based Lending
AMCLX Snapshot 1
1.
As of 10/31/2023
Overview
Why Private Credit
Attractive Yield
Increased bank regulation has created an opportunity for private lenders to originate loans at favorable terms.
Low Volatility 2
Private loans have historically exhibited lower volatility than publicly traded fixed income.
Why Asset-Based Lending
Defined Source of Repayment
Loans are secured by physical and financial assets as collateral.
Differentiated Source of Returns
Asset-based loans provide diversification to other segments of the private credit market.
What Sets the AFA Private Credit 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
2.
Performance
As of 10/31/2023
| Month | YTD | 1 YR | Annualized* | Cumulative* | |
|---|---|---|---|---|---|
| AMCLX | 0.63% | 7.00% | 8.78% | 5.18% | 12.51% |
| CS Leveraged Loan Index | 0.03% | 9.94% | 11.56% | 4.49% | 10.80% |
| BBG US Corporate High Yield Index | -1.16% | 4.63% | 6.23% | -2.43% | -5.59% |
| BBG US Aggregate Bond Index | -1.58% | -2.77% | 0.36% | -6.90% | -15.36% |
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% | - | - | 7.00% |
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. * 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 11/1/2023
Allocations by Position Type3
Industry Allocations3
3.
Allocations shown are a percentage of net investments and may not add to 100% due to borrowing, cash or liquidity holdings and other net assets. 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.
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-Advisors
Aon Investments is a leading global pension consulting firm with more than $3.4 trillion in global assets under advisement as of June 30, 2022.
Atrato Consulting provides research and due diligence on custom alternative investments for wealth managers, endowments, and foundations and has over $1.4 billion in assets under advisement as of December 31, 2022.
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
$150 million (10/31/2023)
Redemptions
Quarterly with limit of 5-25% of Fund assets each quarter
Institutional Class (AMCLX): 1.45%
Tax Reporting
1099
4.
Excludes Acquired Fund Fees and Expenses and Interest on Borrowings of 3.64% and 0.62% respectively.
The Adviser has entered into a one-year expense limitation and reimbursement agreement whereby certain of the Fund’s expenses (all expenses excluding the management fee, interest on borrowed funds, acquired Fund fees and expenses (“AFFE”) and certain other expenses) do not exceed 0.15% of the average daily net assets. See the Fund prospectus for further detail.
Fund Materials
Regulatory Documents
Repurchases and Distributions
Fund Literature and Reports
How to Invest
The AFA Private Credit 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 Private Credit Fund for Your Clients?
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
