On Tuesday, Alternative Access Funds, LLC (“AAF”) announced that its registration for the AAF First Priority CLO Bond ETF (AAA) is currently scheduled to become effective on August 14th, 2020. Alternative Access is expected to be one of the first in the industry to give investors the ability to purchase exposure to the first-priority collateralized loan obligation (“CLO”) bonds space via an ETF product.
This is something of a milestone for those involved. After spending 17 years on Wall Street, Peter Coppa founded Alternative Access Funds in 2018 with the aim of providing broader access to financial products typically only accessible to wealthy and institutional investors.
“Alternative Access strives to level the playing field in all areas of the investment universe, particularly with credit products, giving both institutional and retail investors greater access, liquidity, and transparency,” Cappa notes. “With the recent adoption of other credit-focused ETFs, we felt that the natural evolution was for a first-priority CLO bond instrument, especially as investors are thirsting for yield, with strong capital preservation characteristics.”
The new ETF will focus its investments in US dollar-denominated first-priority AAA-rated CLO bonds with the aim of delivering returns consistent with the general broadly syndicated floating rate AAA-rated CLO bond universe. The ETF’s investment objective is to seek capital preservation and income.
Two other partners, Todd Themistocles and Steve Kim, will help manage Alternative Access’ ETF efforts. The AAA ETF is expected to begin trading in early September if all approvals and launch objectives are met.
The AAF First Priority CLO Bond ETF is distributed by Quasar Distributors, LLC.
To learn more about the fund or AAF, visit their website, https://altacfunds.com/.
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