First Trust Alternative Opportunities Fund · NASDAQ:VFLEX
First Trust Alternative Opportunities Fund — Q1 2022 Earnings Presentation
18 slides from First Trust Alternative Opportunities Fund's earnings presentation, April 2022
Slide 1: VFLEX First Trust Alternative Opportunities Fund Class I Shares 1st Quarter 2022
VFLEX First Trust Alternative Opportunities Fund CLASS I SHARES 1st Quarter 2022 The Fund invests in securities with limited or no secondary market and are deemed to be illiquid. Valuation of illiquid securities is extremely limited. Portfolio holdings are priced either on a daily, monthly, and/or q
Slide 2: First Trust Capital Solutions Firm Overview
First Trust Capital Solutions (“FTCS”) Firm Overview FTCS is a newly formed joint venture between First Trust Capital Private Asset Platform Partners, LLC and VFT Holdings II L.P. FTCS offers various Various principals of FTCS have been managing alternative investments for qualified advisory clients
Slide 3: VFLEX – Impetus for the Fund
VFLEX – Impetus for the Fund What Pain Points Have We Identified Within Alternative Investments? • Private Equity, Private Credit and Real Estate operators have begun to enter the registered investment space as investment of interval funds, tender offer funds and non-traded REITs. • Investors who pr
Slide 4: VFLEX – Potential Benefits of the Interval Fund Structure
VFLEX – Potential Benefits of the Interval Fund Structure Fund Structures VFLEX Open-End Listed LP Offering: Interval Funds Mutual Funds CEFs Private Funds No Paperwork Purchase Click To Buy Click To Buy Click To Buy Sub Docs Ticker Purchasable Liquidity* Quarterly Daily Daily Varies Accessible No A
Slide 5: VFLEX – Portfolio Construction Framework
VFLEX – Portfolio Construction Framework Target Allocations • VFLEX invests in interval funds, tender offer funds, non-traded REITs and other investment structures including direct co- investments to help provide better access to institutional alternative strategies, such as Private Equity, Real Est
Slide 6: VFLEX – Sub-Strategies Review
VFLEX – Sub-Strategies Review Alternative Asset Classes The Private Equity sub-strategy seeks to provide exposure to secondary and primary investments in private equity and other private asset funds and, to a limited Private Equity degree, to direct investments in operating companies. Co-Investments
Slide 7: VFLEX Income Comparison
VFLEX Income Comparison Asset Class Current Yields versus VFLEX Distribution Rate 6% 5.49% 5.00%1 5% 4% 3% 2.40% 2.52% 2.54% 2.01% 2.08% 2% 1.68% 1% 0% Dividend Equities Municipal Bonds 7-10 Year Corporate Bonds US Public REITs Utility Equities VFLEX High Yield Bonds Treasury Bond Data as of 3/31/20
Slide 8: VFLEX – Portfolio Holdings as of 3/31/2022
VFLEX – Portfolio Holdings as of 3/31/2022 Asset Class Manager Strategy Structure Weight Private Equity Pomona Investment Fund Private Equity Tender Offer Fund 4.7% Private Equity Stepstone CPRIM Private Equity Tender Offer Fund 4.0% Real Estate JLL Income Property Trust Core Real Estate Priva
Slide 9: Direct Co-Investment Sleeve: CLO Program Example
Direct Co-Investment Sleeve: CLO Program Example To date, VFLEX has participated in fifteen static collateralized loan obligations (CLO) transactions since Program Overview 2019. The CLO deals have: • Gained anywhere from +2% to +73%, averaging a +29% gain. • Diversified pool of institutional, large
Slide 10: Performance Attribution – 2022
VFLEX Performance Attribution – 2022 Net Performance Attribution By Asset Class (as of 3/31/2022) Source: Lightkeeper Portfolio Analytics. 1/1/22 - 3/31/22.Asset Classes subject to change and should not be considered investment advice. Please note: Each of these assets have their own set of investme
Slide 11: Performance – Low Volatility Profile
VFLEX Performance – Low Volatility Profile Daily Annualized Volatility VFLEX S&P 500 Index Bloomberg U.S. Aggregate Bond Index Average Annualized Volatility 3.25% 20.10% 3.78% 120% VFLEX 100% S&P 500 Index 80% Bloomberg U.S. Aggregate Bond Index 60% 40% 20% 0% 7/17 7/18 7/19 7/20 6/12/2017-3/31/2022
Slide 12: Performance – Lack of Downside Capture to Stocks
VFLEX Performance – Lack of Downside Capture to Stocks • There have been 352 (out of 820) days in which the S&P 500 Index was down between 1/1/2019 and 3/31/2022.* On those 352 days in which equity markets were down: • The S&P 500 Index averaged down -0.91%. • VFLEX averaged a return of -0.01%. • VF
Slide 13: Performance – Differentiated Return from Bonds
VFLEX Performance – Differentiated Return from Bonds • We believe VFLEX can provide a differentiated return stream from bonds. • On down days for bond markets between 1/1/2019 and 3/31/2022*, the Bloomberg U.S. Aggregate Bond Index has lost an average of -0.20%. • On those same down days for bonds,
Slide 14: Fund Performance (%) as of 3/31/2022
Fund Performance (%) as of 3/31/2022 Since Fund Net Asset Value (NAV)* 3 Month YTD 1 Year 2 Year 3 Year Inception VFLEX – Class I Shares 1.20 1.20 10.80 16.62 8.96 6.11 Index Performance** ICE BofA 3-Month 0.04 0.04 0.06 0.09 0.81 1.15 US Treasury Index Bloomberg U.S. Aggregate -5.93 -5.93 -4.15 -1.
Slide 15: Index Definitions
Index Definitions The IDC US Treasury 7-10 Year Index measures the performance of public obligations of the U.S. Treasury that has a remaining maturity of greater than seven years and less than or equal to ten years. The Russell 1000 Value Index refers to a composite of large and mid-cap companies l
Slide 16: Risk Considerations
Risk Considerations Alternative investments may employ complex strategies, have unique investment and risk Certain underlying funds are not registered under the securities laws and their portfolio characteristics and may not be appropriate for all investors. holdings may not be disclosed. Unregister
Slide 17: Risk Considerations (Continued)
Risk Considerations (Continued) Short selling creates special risks which could result in increased To the extent a fund invests in floating or variable rate obligations A fund with significant exposure to a single sector may be more gains or losses and volatility of returns. Because losses on short
Slide 18: Contact Us
Contact Us 1-800-988-5196 | www.firsttrustcapital.com You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Capital Management at 1-800-988-5196 or visit www.firsttrustcapital.com to obtain a prospectus or summary prospect
First Trust Alternative Opportunities Fund (VFLEX) — Q1 2022 Earnings Presentation on 6ix