Aristotle Core Income Fund Class I (PLIIX)

Overview

The fund is an investment entity primarily focused on generating income through debt instruments. It seeks to provide returns to investors by allocating its resources to various debt securities. With a strategy to invest a significant portion of its assets in investment grade debt instruments, the fund aims to balance risk and return efficiently. It has the flexibility to diversify its portfolio by including a mix of corporate debt securities, asset-backed securities, mortgage-related securities, U.S. government securities, and agency securities. Additionally, the fund explores opportunities within non-investment grade debt instruments and floating rate senior loans to potentially enhance yields, acknowledging the higher risk associated with such investments.

Products and Services

• Investment Grade Debt Instruments - The fund prioritizes stability and reliability by investing at least 60% of its assets in investment grade debt instruments. These include a variety of securities such as corporate bonds, government and agency securities, which are deemed to have a low risk of default. This forms the core of the fund's investment strategy, aimed at providing a steady income stream to investors.

• Corporate Debt Securities - A significant portion of the fund's assets is allocated to corporate debt securities. This includes bonds issued by corporations which are used to raise capital for expansion or operational needs. The focus is on high credit quality issuers to mitigate the risk of default, while seeking to earn returns higher than government securities.

• Asset-Backed Securities (ABS) - The fund invests in ABS, which are securities backed by loan portfolios, leases, or receivables. This diversification strategy aims to capitalize on the stable cash flows generated from a pool of assets, offering a balance between risk and return.

• Mortgage-Related Securities - Including investments in both residential and commercial mortgage-backed securities, the fund leverages the income generated from mortgage payments. This adds another layer of diversification, as these securities tend to offer higher yields compared to treasury securities, albeit with greater risk.

• U.S. Government Securities and Agency Securities - To ensure a part of the portfolio is allocated to highly secure investments, the fund invests in U.S. government and agency securities. These investments provide a reliable stream of income, backed by the U.S. government's credit, making them among the safest investment options available.

• Non-Investment Grade Debt Instruments - Up to 35% of the fund’s assets may be invested in non-investment grade debt instruments, also known as "junk bonds". These are higher yield, higher risk securities that offer the potential for significant returns but come with an increased risk of default. This strategy is employed with the aim of enhancing the fund's overall yield.

• Floating Rate Senior Loans - The fund may allocate a portion of its assets to floating rate senior loans. These loans usually have interest rates that reset periodically, based on market interest rates. This allows the fund to benefit from rising interest rates while assuming seniority in the borrower’s capital structure, hence potentially reducing risk.