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INCOME

A3 Alternative Income Fund (AAACX)

 

As of June 30, 2022

Past performance is not indicative of future results.

Overview 

The A3 Alternative Income Fund, a closed-end interval fund, offers investors efficient access to a portfolio of non-traditional income-generating assets. The Fund’s investment objective is to seek total return through investments that offer regular income or the potential for price appreciation. A3 Financial Investments is led by an investment team with decades of experience investing in capital markets. Interval funds provide investors such features as daily pricing, 1099 tax reporting, and quarterly repurchase offers with a fund-level redemption of 5-25% of NAV. The interval fund structure allows non accredited investors the opportunity to access less liquid, potentially higher yielding alternative investments.

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Performance Summary

Monthly Return
-3.65% 

1

Year to Date
-18.39%

1

Since Inception
-16.89%

1

30 Day SEC Yield
+8.26%
+2.74%

4

3

US Agency Exposure
21.82%

2

Fact Sheet
Screen Shot 2022-05-24 at 10.50.27 AM.png

Monthly Net Total Returns

1

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
YTD
2022
(10.77)
(0.13)
(1.17)
(2.88)
(0.99)
(3.65)
(18.89)
2021
(0.89)
(0.70)
1.40
0.50
(0.20)
(1.64)
(1.34)
1.15
(1.57)
0.00
(2.76)
(0.25)
(6.21)
2020
5.11
(1.68)
1.05
(1.24)
0.96
1.08
(1.06)
1.65
(0.97)
(5.37)
6.29
(0.53)
4.88
2019
0.60
0.40
2.49
3.52
  1. Inception date is September 30, 2019. Returns are net total returns. 

  2. U.S. Government Agency securities are considered to have an "implied AAA rating". Government National Mortgage Association issued securities carry the full faith and credit guarantee of the U.S. Government.

  3. "30-Day SEC Yield (subsidized)" is an annualization of the Fund's total net investment income per share for the 30 day period ended on the last day of the month and reflects any net fees waivers and reimbursements in effect during the yield calculations period.

  4. "30-Day SEC Yield (unsubsidized)" reflects the 30-day yield if the investment adviser were not reimbursing the fund for part of its expenses or waiving all or part of its fee.

4

1

Fund Highlights

Fund Structure

Interval closed-end fund

Share class

Institutional

Administrator

UMB Fund Services

Qualifications

Non Accredited Investor

Ticker

AAACX

Counsel

Thompson Hines LLP

Subscriptions/ NAV

Daily

Inception Date

September 30, 2019

Auditor

BBD LLP

Redemptions

Q1 2022 15% of fund NAV

Management Fee

1.50%

Distributor

Foreside Financial Services, LLC

Distributions

Quarterly

Expense Limitation

1.95%

2

3

Net Expense Ratio / Gross Expense Ratio

1.95%/7.99%

  1. The Adviser has entered into an expense limitation agreement to pay the ordinary operating expenses of the Fund that exceed 1.95% per annum.

  2. The Net expense ratio reflects the reduction of expenses from fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance. These reductions are contractual and will continue until at least 01/31/2022.

  3. The Gross Expense Ratio reflects additional expenses embedded in the Fund's performance, such as the indirect costs of investing in other investment companies.

  4. Based on the volume of repurchase requests, there is no guarantee that all repurchase requests will be honored each quarter.

Portfolio Characteristics & Composition

Year-to-Date Total Return

- 18.39%

Current Distribution Rate

7.61%

30-Day SEC Yield (subsidized)

8.26%

30 Day SEC Yield (unsubsidized)

2.74%

# of Positions

41

Largest Position

7.84%

Leverage

0.00%

Screen Shot 2022-05-24 at 10.53.31 AM.png

Credit Rating Exposure

US Govt Agency Securities

2

21.82%

AAA

31.33%

AA

0.00%

A

0.00%

BBB

0.00%

Non-Investment Grade

0.00%

Not Rated

46.11%

  1. Current Distribution Rate is expressed as a percentage equal to the projected annualized distribution amount which is calculated by annualizing the current cash distribution per share without compounding), divided by the current net asset value and does not reflect any return of capital.

  2. U.S. Government Agency securities are considered to have an "implied AAA rating". Government National Mortgage Association issued securities carry the full faith and credit of the U.S. Government. Credit Rating Exposure reflects the underlying securities nationally recognized statistical ratings organization's credit rating.

Fund Materials

Latest Monthly
 Fact Sheet
Screen Shot 2022-05-24 at 10.50.27 AM.png
Annual Report
September 30, 2021
Screen Shot 2021-11-30 at 9.01.18 AM.png
Prospectus
Screen Shot 2021-12-29 at 9.46.43 AM.png
Repurchase
Offer June 2022
Screen Shot 2022-06-01 at 9.24.17 AM.png
Semi Annual Report March 31, 2022
Screen Shot 2022-06-24 at 11.27.23 AM.png
Statement of 
Additional Information
Screen Shot 2021-12-29 at 9.45.36 AM.png
Schedule of Investments
12-31-2021
Screen Shot 2022-03-02 at 11.57.43 AM.png
Schedule of Investments
09-30-2021
Screen Shot 2021-11-30 at 10.11.00 AM.png
Schedule of Investments
06-30-2021
Screen Shot 2022-03-02 at 11.53.20 AM.png
Schedule of Investments
3-31-2022
Screen Shot 2022-07-15 at 4.56.13 PM.png
Fund Account Opening Documents
Account Application
AAACX Taxable Account Opening Doc.png
Account Application - IRA
AAACX IRA Account Doc.png
IRA Conversion & 
Transfer Form
AAACX IRA Conversion.png

Fund Account Disclosures

IRA Disclosure
Traditional IRA Disclosure.png
ROTH IRA Disclosure
Roth IRA Disclosure.png

Contact Us

90 Madison Street, Suite 303 

Denver, CO 80206

Tel: 1 (303) 997-9010

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