Aristotle Ultra Short Income Fund Class A (PLUAX)

Overview

This fund is distinguished by its focus on investment-grade, U.S. dollar-denominated short-term fixed and floating rate debt securities. Its portfolio encompasses a wide array of financial instruments, including corporate debt securities, mortgage-related securities, asset-backed securities, U.S. government securities, agency securities, and various money market instruments like commercial paper, certificates of deposit, time deposits, deposit notes, and bank notes. An important aspect of the fund's strategy involves adjusting the weighted average duration of its investments primarily based on market forecasts made by the fund's sub-adviser. The fund's duration does not normally exceed one year, ensuring it maintains a short-term investment focus designed to manage risk and capitalize on immediate market opportunities.

Products and Services

• Corporate Debt Securities

These are bonds or other forms of debt issued by corporations to finance their operations, growth, or other financial needs. These instruments typically offer higher yields compared to government bonds, reflecting the increased risk.

• Mortgage-Related Securities

These securities are tied to mortgage loans, including both residential and commercial mortgages. They may involve direct mortgage-backed securities (MBS) or structured products derived from pools of mortgages. These instruments aim to provide income through interest payments derived from the underlying mortgages.

• Asset-Backed Securities

Similar to mortgage-related securities, these are bonds or notes backed by financial assets other than mortgages, such as auto loans, credit card debt, or student loans. The cash flows from these underlying assets generate income for investors.

• U.S. Government Securities

These are debt instruments issued by the U.S. government, considered to be among the safest investments. They include Treasury bonds, notes, bills, and other securities backed by the full faith and credit of the U.S. government.

• Agency Securities

Issued by government-sponsored enterprises (GSEs) such as Fannie Mae or Freddie Mac, these securities also carry a low risk but typically offer higher yields than direct government bonds due to the slightly higher risk associated with GSE debt.

• Money Market Instruments

This category includes various short-term, highly liquid financial instruments such as commercial paper, certificates of deposit, time deposits, deposit notes, and bank notes. They are designed for investors seeking minimal risk and a place to park cash with a modest interest return.