Structure and Investment Procedures:

1.  A Capital Partner Agreement is signed with us.  The capital partner may be an institution, municipality, family office or individual.  The agreement will detail the custom strategy that fits the capital partner’s investment objective and provide an estimated return on investment given a set of investment assumptions about interest rates, market conditions, and the economic environment.

2. After passing KYC with the bank, a bank account is arranged for the investor whereas only the investor will be a signatory on the account. A member of the AFC investment team will work with the banker to provide the account with the credit lines for leverage. The leverage ratio will depend on the investment vehicle(s), corporate bonds with A to AA rating allow for 4 to 10 times leverage while U.S. Government Treasuries provide between 50- and 100-times leverage. The leverage on the treasuries is NOT on margin, as a means of mitigating interest rate risk to zero via asset liability matching.

 3. We do not take custody of any securities or cash. An AFC Asset Manager will provide the customized bonds with CUSIP/ISIN to you, showing where the funds will be invested. The bank will provide your monthly statement with daily online access for full transparency.

4. Once a bond matures, the bond issuer through their coupon paying agent (usually another bank such as Bank of New York Mellon) will ACH back the initial principal investment plus the last coupon payment to the account which the investor controls and AFC can view. The funds can be rolled over into another bond or withdrawn by the investor at that time.

Liquidity allows all portfolios the ability to exit 100% of the funds invested at any time for any reason.