Aristotle Strategic Income Fund Class A (PLSTX)

Overview

The described company operates as an investment fund primarily focused on generating income through a diversified portfolio of debt instruments. It dynamically allocates its assets between non-investment grade debt instruments and investment grade debt instruments based on the market conditions analyzed by its sub-adviser. This strategic flexibility allows the fund to adapt its investment approach, varying its exposure to different categories of debt instruments, including non-investment grade debt instruments and floating rate loans, as well as investment grade debt instruments like corporate debt securities, asset-backed securities, mortgage-related securities, and U.S. government and agency securities. The fund's ability to invest up to 70% of its assets in non-investment grade debt instruments or up to 65% in investment grade debt instruments showcases its adaptable investment strategy to maximize income generation while managing risk.

Products and Services

• Non-Investment Grade Debt Instruments and Floating Rate Loans

  This component of the fund's portfolio includes debt instruments that are rated below investment grade. The fund may allocate up to 70% of its assets towards these higher yield, higher risk securities. They are chosen based on the sub-adviser's market outlook, aiming to optimize income in scenarios favorable to such assets. Floating rate loans, included in this category, offer interest payments that adjust with the market rates, providing a potential hedge against interest rate rises.

• Investment Grade Debt Instruments

  Up to 65% of the fund's assets may be invested in investment grade debt instruments. These include a range of securities such as corporate debt securities known for their lower risk compared to non-investment grade instruments, asset-backed securities that are secured by loan pools or other assets, and mortgage-related securities. U.S. government securities and agency securities, recognized for their high credit quality and lower risk, are also part of this investment category. The selection of investment grade debt instruments aims to provide stable income while maintaining a lower risk profile.