AFA Multi-Manager Credit Fund (AMCLX)
A closed-end interval fund that seeks to provide high levels of current income by investing in a range of private credit strategies
Overview
- Private credit interval fund with the potential for attractive income, low volatility and low correlation to public fixed income markets.
- Focused on asset-based lending, a segment of the private credit market with attractive risk-return characteristics.
- Invests in specialized niches of the private credit market that are under-served and less heavily competed by traditional lenders.
- Combines the expertise of multiple boutique managers, each with unique skills and sourcing ability in their specialty market niche.
- Leverages the deep research and due diligence expertise of AON Investments, a global pension consultant with more than $3.4 trillion in assets under advisement.
Performance
As of 2/28/2023
| YTD | 1 YR | 3 YR | Since Inception* | |
|---|---|---|---|---|
| AFA Multi-Manager Credit Fund | 1.40% | 3.65% | -- | 3.92% |
| S&P US Leveraged Loan 100 Index | 3.36% | 2.87% | -- | 2.75% |
| Bloomberg US Corp HY Bond Index | 2.47% | -5.46% | -- | -4.59% |
| Bloomberg US Aggregate Bond Index | 0.41% | -9.72% | -- | -7.76% |
Past performance is not indicative of future returns. 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. * Annualized returns since June 30, 2021 inception.
Cumulative Returns Since Inception
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 S&P LSTA US Leveraged Loan 100 Index (S&P/LSTA LL100) is designed to reflect the performance of the 100 largest facilities in the leveraged loan market. 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 3/1/2023
Sector Allocation
Holdings
Portfolio holdings are subject to change without notice. Alternative Fund Advisors and Foreside Fund Services, LLC are not affiliated with the above companies.
Management
Investment Advisor
Sub Advisor
AON Investments, a global pension consulting firm with more than $3.4 trillion in assets under advisement, provides ongoing sourcing, research, and due diligence.
Assets under advisement as of June 30, 2021.
Fund Facts
Portfolio
| Net Assets (2/28/2023) | $50 million |
| Fund Inception | June 30, 2021 |
| Ticker | AMCLX |
| CUSIP | 00123V103 |
| Distributions | Quarterly1 |
| Subscription Frequency | Daily |
| Redemptions | Quarterly 5%-25%2 |
| Qualification | Accredited Investor |
Fund Fees and Expenses3
| Management Fee | 1.10% |
| Cap on Other Operating Expenses | 0.35% |
| Net Expense Ratio (excl. Acquired Fund Fees and Expenses and interest on borrowing) | 1.45% |
| Net Expense Ratio (incl. Acquired Fund Fees and Expenses and interest on borrowing) | 3.64% |
| Gross Expense Ratio | 3.86% |
1 The Fund intends to make quarterly distributions at a constant annualized rate of 6% of the Fund’s NAV. Distributions are not guaranteed and could be zero or exceed 6%. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (ROC) of your investment in the Fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. 2 The quarterly repurchase offer is expected to be 5% but may range from 5% to 25% subject to approval by the Board of Trustees. If a repurchase offer is oversubscribed, shareholders will only be able to have a portion of their shares repurchased. There is no guarantee that shareholders will be able to tender their Shares when or in the amount they desire. 3 The Adviser has entered into a one-year expense limitation and reimbursement agreement whereby the Fund’s Other Operating Expenses (all expenses excluding the management fee, interest on borrowed funds, acquired fund fees and expenses (“AFFE”) and certain other expenses) do not exceed 0.35% of the average daily net assets. See the Fund prospectus for further detail.
Documents
Regulatory Documents
Repurchases and Distributions
Fund Literature and Reports
Direct Investor Forms
Investment Considerations and Disclosures
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.
Read the prospectus carefully before you invest.
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, 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