Aristotle Short Duration Income Fund Class I (PLSDX)

Overview

The fund presented operates as a "fund of funds," aiming to reach its investment objectives by allocating its resources across a diverse portfolio of underlying funds. This strategy allows for a broad spread of investment risk and opportunity across various asset classes. The specific investment approach places an emphasis on maintaining an allocation balance between debt and equity, with debt exposure targeted within the range of 30%-50% and equity exposure aimed to be between 50%-70%. This balanced approach is designed to offer investors a blend of growth potential through equities and income generation through debt instruments, with the flexibility to adjust the actual allocations within these specified ranges based on market conditions and investment opportunities.

Products and Services

• Investment in Underlying Funds

This product allows investors to gain exposure to a diversified portfolio of investments through a single fund. The "fund of funds" model aggregates the performance of various underlying funds, which may include both equity and debt instruments, spreading risk while seeking to capitalize on the growth potential of various market segments. By investing in a mix of underlying funds, investors benefit from diversified management expertise and investment strategies.

• Debt Exposure

Debt instruments within the fund's portfolio are managed to maintain an exposure level of 30%-50%. This allocation to debt aims to provide a steady income stream to the fund while also contributing to the overall stability of the investment. The focus on debt securities includes but is not limited to corporate bonds, government securities, and other debt offerings, targeting a balance between yield and security.

• Equity Exposure

The fund commits 50%-70% of its assets to equities, aiming to harness the growth potential of the stock market. This substantial allocation towards equity investments reflects the fund’s strategy to achieve long-term capital appreciation by tapping into the dynamism of the equity markets. The diversity of equity holdings is designed to mitigate individual stock volatility while participating in the upward momentum of the broader market.

• Liquidity Reserves

In recognizing the importance of liquidity management, the fund maintains reserves to meet investor redemption requests without compromising the investment strategy. The maintenance of liquidity reserves ensures that the fund can respond appropriately to redemption pressures, preserving the integrity of the investment process and avoiding forced sales of holdings at inopportune times.