Unsecured Consumer Loans
In December 2016 Crescent Sky launched The Crescent Sky Consumer Lending Fund (“CSCLF”). The Fund has generated current income and total return by investing in a select group of short duration unsecured consumer loans at attractive yields. Crescent Sky’s proprietary algorithm has attempted to select loans that exhibit superior performance. The Fund’s data-driven model strives to select loans that capture the greatest amount of net spread (coupon less losses) but also have strong loss coverage multiples (loan interest rate divided by expected annual loss rate). The Fund also employs a frequent trading strategy mainly comprised of equity, debt securities and funds, designed to realize gains based upon short-term market fluctuations and volatility.
Growth vs. Selected Benchmarks Since Inception
1 All returns for The Crescent Sky Consumer Lending Fund are after deduction of all fees and expenses. All returns are represented as a percentage. Past performance results are not indicative of future performance. Returns shown include the reinvestment of any dividends and earnings. Returns reflect any financing or leverage utilized by the fund. Current performance may be higher or lower than the performance quoted
2 The duration of the Crescent Sky Consumer Lending Fund is the calculated duration of the underlying assets of the loan portfolio. If all cash positions were included the duration is 1.0
3 The selected ETF benchmarks are designed to track the investment results of fixed income portfolios meeting certain requirements. Such returns are provided for illustrative purposes only and do not necessarily indicate a comparable investment strategy. Such benchmarks represent investment performance of securities or other assets which are different from those in which the Crescent Sky Consumer Lending Fund invests