Aristotle Core Income Fund Class C (PLNCX)

Overview

The fund is designed to cater to investors looking for income through investment in a diversified portfolio of debt instruments. With a focus on generating income, the fund actively invests in a mix of investment grade and non-investment grade debt securities. The investment strategy emphasizes allocating a significant portion of its assets towards investment grade debt instruments, which include corporate debt securities, asset-backed securities, mortgage-related securities, as well as U.S. government and agency securities. Additionally, the fund seeks to enhance its yield potential by allocating a portion of its assets to higher yielding, non-investment grade debt instruments, commonly referred to as "junk bonds", and floating rate senior loans. This diversification strategy is aimed at balancing the fund's income generation objectives with the management of risk. The fund's flexible approach allows it to navigate through varying market conditions, aiming to provide consistent returns to its investors.

Products and Services

• Investment Grade Debt Instruments

  The fund primarily invests in investment grade debt instruments, which may include corporate debt securities, asset-backed securities, mortgage-related securities, U.S. government securities, and agency securities. These are considered lower risk compared to non-investment grade instruments and form the foundation of the fund's investment strategy, focusing on generating stable income while preserving capital.

• Corporate Debt Securities

  As part of its investment grade portfolio, the fund invests in corporate bonds issued by companies with strong financial health. These securities often offer higher yields than government securities, providing an attractive balance of risk and return for the fund's investors.

• Asset-Backed Securities

  These securities are backed by loan pools or receivables, providing additional diversification within the fund's investment grade allocation. Asset-backed securities can offer steady returns, as they are based on predictable cash flows from the underlying assets.

• Mortgage-Related Securities

  The fund also invests in mortgage-related securities, including those issued by government-sponsored enterprises. These investments provide exposure to the real estate market, with income generated from mortgage payments, further diversifying the fund's income sources.

• U.S. Government and Agency Securities

  In its pursuit of stability and low-risk income, the fund includes U.S. government and agency securities. These are considered some of the safest investments, with income backed by the full faith and credit of the U.S. government.

• Non-Investment Grade Debt Instruments

  Up to 35% of the fund's assets may be allocated to non-investment grade (high yield/high risk) debt instruments, also known as "junk bonds". These offer higher yields than investment grade securities, providing the potential for higher income but with increased risk.

• Floating Rate Senior Loans

  The fund may also invest in floating rate senior loans. These loans are generally extended to companies with lower credit ratings, offering higher yields in exchange for higher risk. The floating interest rates on these loans can provide a hedge against inflation, as rates typically adjust upward with rising interest rates.