AlphaCentric Premium Opportunity Fund Class C · NASDAQ:HMXCX
AlphaCentric Premium Opportunity Fund Class C — AlphaCentric Prime Meridian Income Fund — Investor Presentation (September 2022)
20 slides from AlphaCentric Premium Opportunity Fund Class C's investor presentation, Sep 30, 2022
Slide 1: AlphaCentric Prime Meridian Income Fund
AlphaCentric Prime Meridian Income Fund , The Fund may provide: Access to the direct lending marketplace for retail investors who require less liquidity PMIFX Enhanced yields historically only available to banks and other institutions Different credit exposures compared to traditional fixed in
Slide 2: Fund Overview
Fund Overview The Fund is managed by Prime Meridian Capital Management, who has built a proven track record Who of managing a family of private debt income funds for institutional investors The Fund seeks to achieve its investment objective (current income) primarily by purchasing marketplace The
Slide 3: Potential Investment Advantages
Potential Investment Advantages Advantages of an interval structure: daily subscriptions, enhanced liquidity, minimal cash drag, broad portfolio diversification Short duration to minimize interest rate and credit risk Low volatility and low correlation relative to other investments Access to institu
Slide 4: Marketplace Lending
Marketplace Lending Marketplace Lending, also known as “Peer-to-Peer (P2P) Lending”, is a method of financing. Consumers or businesses, who seek to obtain loans, can connect with investors who will buy or invest in the loan. By lending directly to these borrowers’ investors have the potential to cap
Slide 5: What's Driving Marketplace Lending?
What's Driving Marketplace Lending? Likelihood of suppressed Uncooperative, future economic archaic lending growth institutions Portends low returns and high Investors face volatility for most Borrowers a difficult asset classes Lender Restricted, face a difficult environment and limited access to e
Slide 6: Marketplace Lending Has Solved Many Problems & Unlocked Investor Opportunity
Marketplace Lending Has Solved Many Problems & Unlocked Investor Opportunity Prime Meridian, sub-advisor Unlocked an untapped market for underserved borrowers to PMIFX, is committed to only working with established Provides broad diversification to portfolio and well capitalized online Access
Slide 7: Marketplace Lending Growth
Marketplace Lending Growth Projected Annual Originations by Digital Lending Platform Focus ($B) 100 90 Personal-Focused Lenders SME-Focused Lenders Projected Future Growth 80 Student-Focused Lenders 32.8 70 29.9 S&P Global Market Intelligence expects U.S. 60 23.3 15.8 50 13.0 14.4 digital lender ori
Slide 8: Three Growing Verticals
Three Growing Verticals Consumer Real Estate Lending Small Business Loans 8 | ALPHACENTRIC PRIME MERIDIAN INCOME FUND | PMIFX
Slide 9: The Consumer Lending Opportunity
The Consumer Lending Opportunity Consumer credit has been a large, consistently profitable asset class. Investment managers looking to take advantage of the benefits of technology and consistent positive returns observed in unsecured consumer lending, PMIFX offers access to three private fund struct
Slide 10: Real Estate Lending - A Historical Perspective
Real Estate Lending - A Historical Perspective Charge-Off Rate on Single Family Residential Mortgages Booked in Domestic Offices, All Commercial Banks, Jan 1991 to Jan 2022 3.0% Charge-Off Rate U.S. Recessions Despite the 2001 2.5% Recession and 2008 Great Recession, real 2.0% estate loan charge-off
Slide 11: Traditional Real Estate Lending
Traditional Real Estate Lending Investor Pain Points Archaic Lending Processes Opaque Policy, Regulation Hurdles High Fee Mutual Funds, REITs Lengthy Decision Making Less Diversification Commercial Banks (Public, Private) Fragmented Process Liquidity Constraints Frictional Transactio
Slide 12: The Real Estate Lending Opportunity
The Real Estate Lending Opportunity Private real estate lending is a $1.5 trillion market, dominated by banks and private lenders Banks: Policies and regulations make borrowing harder, and the associated pace can often hinder deals Hard Money Lenders: Small, obscure, private lenders have historicall
Slide 13: Real Estate Lending Platforms
Real Estate Lending Platforms $2.52bn funded across 2,058 Loans, in 35 states Sharestates (as of January 2021) Strong underwriting – Total principal loss to date is 0.09% $1.78bn funded as 204 loans, in 38 states Money360 (as of December 2020) Strong underwriting Platforms* $7.8bn loans fu
Slide 14: Small Business Lending
Small Business Lending APR Commercial Banks have drastically decreased Alternative Lenders lending to small-to-mid sized 50% APR: ~ 55% businesses (SMB’s). Archaic Terms: 6-12 months operational processes and Loan: $30k high underwriting costs make 40% SMB loans unattractive for large traditional fi
Slide 15: Small Business Lending Platforms
Small Business Lending Platforms Loan originations have been on the decline since the Great Recession. Today, traditional brick-and-mortar banks continue to dominate business lending for the $1mm (+) market while turning their attention away from small businesses. Because of this, online small busin
Slide 16: Fund Performance
Fund Performance Fund Performance as of 9/30/22 (Annualized if greater than 1 year) Performance & Risk Statistics as of 9/30/22 Sharpe Inception Date: 12/31/19* QTD 6 Months YTD 1 YR 2 YR Inception Cumulative Annualized Standard Risk-Free Ratio (RF Alpha Beta R-Squared Return Return Deviation Rate 3
Slide 17: Portfolio Manager
Portfolio Manager Don Davis Chief Executive Officer & Portfolio Manager Fund Sub-Advisor Managing Partner and the lead Portfolio Manager of Prime Meridian Capital Management Prime Meridian Capital Management Seasoned industry veteran and skilled portfolio manager is an investment management firm
Slide 18: Key Definitions
Key Definitions Index Definitions (Indices assume reinvestment of all dividends and distributions. You cannot invest directly in an index.) Bloomberg U.S. Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Bloomberg U.S. Credit 1-3 Year Index
Slide 19: Risk Disclosure
Risk Disclosure Important Risk Information INVESTING IN THE FUND INVOLVES A HIGH DEGREE OF RISK, INCLUDING THE RISK THAT YOU MAY RECEIVE LITTLE OR NO RETURN ON YOUR INVESTMENT OR THAT YOU MAY LOSE PART OR ALL OF YOUR INVESTMENT. THIS IS A CONTINUOUSLY-OFFERED, NON-DIVERSIFIED, CLOSED-END INTERVAL FU
Slide 20: Thank you for your interest in the Fund.
Thank you for your interest in the Fund. Contact Us: +1 855 674 FUND PMIFX www.alphacentricfunds.com info@alphacentricfunds.com
AlphaCentric Prime Meridian Income Fund — Investor Presentation (September 2022) on 6ix