Aristotle Floating Rate Income Fund Class I (PLFRX)

Overview

The fund primarily focuses on generating income through investments in floating rate loans and floating rate debt securities. By predominantly investing in these financial instruments, the fund aims to provide investors with exposure to income-generating assets that have interest payments which adjust periodically based on market interest rates. This strategy is designed to potentially reduce the impact of rising interest rates on the portfolio, making it an attractive option for income-focused investors in various interest rate environments. The fund operates with a flexible investment mandate, allowing it to allocate a portion of its assets towards foreign investments, predominantly in developed markets, and also to invest in other types of debt instruments, including high yield/"junk bonds", under certain conditions.

Products and Services

• Floating Rate Loans

  These are loans issued by corporations that have variable interest rates. The fund invests at least 80% of its assets in these loans, seeking to benefit from the interest payments that adjust with market rates. This approach aims to provide a consistent income stream while mitigating the risk associated with fixed-rate bonds in a rising interest rate environment.

• Floating Rate Debt Securities

  Similar to floating rate loans, these debt securities have interest payments that vary over time. By investing in floating rate debt securities, the fund increases its exposure to instruments that can potentially offer stable returns in fluctuating interest rate scenarios, contributing to the fund's overall income generation objectives.

• U.S. Dollar Denominated Foreign Investments

  Up to 25% of the fund's assets may be allocated to foreign investments that are denominated in U.S. dollars, primarily in developed markets. This diversification strategy allows the fund to explore income-generating opportunities beyond domestic markets while managing potential currency exchange risks by focusing on U.S. dollar-denominated assets.

• Other Types of Debt Instruments

  The fund may allocate up to 20% of its assets in various other types of debt instruments, including non-investment grade debt instruments, commonly known as high yield or "junk bonds". These investments can offer higher yields compared to investment-grade securities, aiming to enhance the overall income potential of the fund's portfolio, albeit with a higher risk profile.