AAMA Income Fund (AMFIX)

Overview

The fund is a diversified investment vehicle that focuses on generating income for its investors through a broad range of fixed-income securities. It aims to provide consistent returns by investing in a wide array of income-producing securities. These include various forms of debt and fixed-income instruments such as U.S. Treasury obligations, mortgage-backed securities, corporate bonds, and more. By diversifying its investments across different sectors and types of securities, the fund seeks to mitigate risk while taking advantage of opportunities in different markets and economic conditions.

Products and Services

• U.S. Treasury Obligations & Government Agency Securities

  Investments in the safest and most liquid assets available, including bonds and securities issued by the U.S. government and its agencies. These are considered low-risk investments and are a cornerstone of the fund’s portfolio.

• Mortgage-Backed Securities

  This includes securities that are backed by mortgage portfolios. These investments can offer higher yields than government securities but come with a higher risk, as they are dependent on the performance of mortgage markets.

• Corporate Bonds

  Debt securities issued by corporations to fund operations, expansion, or other activities. Corporate bonds typically offer higher returns than government securities, balancing risk and reward within the fund’s portfolio.

• High Yield Bonds (Junk Bonds)

  These are bonds issued by companies with lower credit ratings, offering higher yields due to the increased risk of default. The fund allocates a portion of its assets to high yield bonds to enhance potential returns.

• Municipal Bonds

  Debt securities issued by states, municipalities, or counties to finance public projects. These bonds often provide tax-exempt income, making them an attractive option for certain investors.

• Preferred Stocks

  Equity securities that offer dividend payments before any dividends are distributed to common stockholders. Preferred stocks combine features of both equity and debt, providing regular income and potential for capital appreciation.

• Inflation Indexed Bonds

  Bonds that are adjusted for inflation, protecting investors from the devaluing effects of rising prices. These bonds are particularly appealing in inflationary environments.

• Money Market Instruments

  Highly liquid, short-term investments, including commercial paper, bankers’ acceptances, and marketable CDs. These provide stability and easy access to funds.

• Floating and Variable Rate Securities

  Debt securities with interest rates that adjust periodically, offering protection against rate fluctuations and an opportunity for income growth in rising rate environments.

• Zero Coupon Bonds

  Bonds that are purchased at a discount to their face value and do not pay interest until maturity. This allows investors to lock in yields with a predetermined return.

• ETFs or Mutual Funds

  Investments in funds that, in turn, invest in the types of securities the fund would normally invest in directly. This offers diversification and management expertise in specialized areas of the market.