DJIA: The Dow Jones Industrial Average is a price-weighted average of 30 actively traded blue-chip stocks. DJIA covers all industries with the exception of transportation and utilities.
S&P 500 Index: The S&P 500 Index is an unmanaged market capitalization-weighted index used to measure 500 companies chosen for market size, liquidity and industry grouping, among other factors.
Dividend-Paying vs. Non-Dividend-Paying Stocks: Each stock’s dividend policy is determined by its indicated annual dividend. Ned Davis Research classifies a stock as a dividend- paying stock if the company indicates that it is going to be paying a dividend within the year. A stock is classified as a non-payer if the stock’s indicated annual dividend is zero.
The index returns are calculated using monthly equal-weighted geometric averages of the total returns of all dividend-paying (or non-paying) stocks. A stock’s return is only included during the period it is a component of the S&P 500 Index. The dividend figure used to categorize the stock is the company’s indicated annual dividend, which may be different from the actual dividends paid in a particular month.Dividend-Growing, No-Change-In-Dividend, and Dividend-Cutting: Dividend Growers and Initiators include stocks that increased their dividend anytime in the last 12 months. Once an increase occurs, it remains classified as a Grower for 12 months or until another change in dividend policy. No-Change stocks are those that maintained their existing indicated annual dividend for the last 12 months (i.e., companies that have a static, non-zero dividend). Dividend Cutters and Eliminators are companies that have lowered or eliminated their dividend anytime in the last 12 months. Once a decrease occurs, it remains classified as a Cutter for 12 months or until another change in dividend policy.
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund's prospectus and summary prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund's prospectus and summary prospectus by calling 888.966.9661.
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisers.
Unless otherwise stated, all information and opinions were produced by sources we believe to be accurate and are subject to change. Additional information may be required to make an informed investment decision. AAM may make a market in or have other financial interests in any given security with which this analysis suggests may be benefited from its conclusions. AAM does not offer tax advice. Past performance does not guarantee future results. Any forward looking statements are not to be considered as forecasts but rather are presented for your consideration.
Not FDIC Insured. Not Bank Guaranteed. May Lose Value.
Distributed by IMST Distributors, LLC | (866) 966-9661 | www.aamlive.com
Advisors Asset Management, Inc. (AAM) is an SEC-registered investment advisor and member FINRA/SIPC.
The performance data quoted represents past performance and is not a guarantee of future results. It is not possible to investin an index.
Dividend Payment Risk: An issuer of a security may be unwilling or unable to pay income on a security. Common stocks do not assure dividend payments and are paid only when declared by an issuer’s board of directors. The amount of any dividend may vary over time.
An investment in the Fund is subject to risks and you could lose money on your investment in the Fund. The principal risks of investing in the Fund include, but are not limited to, investing in foreign securities, investing in small-and mid-cap companies, and focused risk. The prices of foreign securities may be more volatile than the securities of U.S. issuers because of economic conditions abroad, political developments, and changes in the regulatory environment of foreign countries. Investments in small and mid-cap companies involve greater risks including increased price volatility compared to the market or larger companies. Although the Fund is diversified, the Sub-advisor intends to focus its investments in the securities of a comparatively small number of issuers. Investment in securities of a limited number of issuers exposes the Fund to greater market risk and potential losses than if its assets were diversified among the securities of a greater number of issuers. More information about these risks may be found in the Fund’s prospectus.
1 Source: Ned Davis Research. The return of the price index is referred to as capital appreciation. Income return is assumed to be the Index’s total return minus its capital appreciation. Total Return = Capital appreciation plus reinvested dividends during the time period. Time period from stats above = 12/31/1929–3/31/2018
2 Source: Ned Davis Research. Based on equal-weighted geometric average of total returns (including dividends) of dividend-paying and non-dividend-paying historical S&P 500 Stocks. Uses Indicated Annual Dividends to identify dividend- paying stocks on a rolling 12-month basis.
[Source]
Definitions:
IMPORTANT INFORMATION:
Sources and Disclosures
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For more information on the AAM/Insight Select Income Fund, please contact your Financial Advisor or complete the form below and we will be in touch shortly.
About insight investment
The Case for Extending Duration
Q&A With
Gautam Khanna
Presentation
Power of Dividend Growth
Presentation
Fact Card
Fact Card
Resources
Resources
Minimum Investment (Class I)
$25,000 initial/$5,000 subsequent
Minimum Investment (Class A/C)
$2,500 initial/$500 subsequent
Inception Date
April 19, 2013
Investment Style
Intermediate-Term Bond
Benchmark
Bloomberg U.S. Credit Bond Index
Strategy Overview
Opportunistic, income-oriented approach that seeks to identify opportunities with the overall goal of maintaining and increasing income for investors.
Investment Objective
Current Income
Ticker Symbols
Fund Facts
Class A: CPUAX / Class C: CPUCX / Class I: CPUIX
May work as a standalone investment or as a complement to other active and passive fixed income strategies
6/6
%
6
Sub-advised by Insight Investment, a global specialist asset manager with deep experience and resources in fixed income management
5/6
$
minimum
1B
Aims to achieve the most attractive
risk-adjusted yields
3/6
%
>2
Aims to add value through a credit-focused security selection process, and active management of duration, yield curve, and market allocations
2/6
Actively managed, diversified bond fund focused on total return and income generation by opportunistically blending all sectors of the fixed income universe
1/6
Highlights of the Fund's Investment Approach
tactical trades
with
income generation
Insight looks to achieve its goals
by complementing
Explore three main reasons for the AAM/Insight Select Income Fund.
The Federal Reserve (Fed) embarked on an aggressive tightening campaign in 2022 which has continued into 2023, in an effort to tame inflation that has remained higher than expected, for longer than expected. In fact, it is widely anticipated that in order to achieve their goal of bringing inflation in line with their 2% target, the Fed will need to raise rates above 5% and keep them there for an extended time. In contrast to some Wall Street analysts, Insight expects rates to remain at these peak levels for the rest of 2023, and potentially even all of 2024.
ready for a fixed income revival?
See how
Insight Investment’s process aims to take advantage of opportunities today, while positioning for tomorrow.
select
income
fund
AAM/INSIGHT
Ticker symbols Class A: cpuax / Class C: cpucx / Class I: cpuix
CRN: 2018-0702-6743 R
Dynamic Process
High Conviction Approach
Diversified Beyond the US Aggregate*
Dynamic Process
Flexible, active investment process is designed to potentially provide a high rate of current income, long-term outperformance and diversification.
Insight’s active total return approach seeks to capture yield opportunities from a diverse range of fixed income sectors.
Robust, repeatable investment process within a risk-aware framework.
High Conviction Approach
Diversified Beyond the US Aggregate*
About the AAM/Insight
Select Income Fund
Insight believes a more benchmark-agnostic approach that combines “smart” income generation with an active total return credit strategy may maximize the earnings potential of an investment grade credit portfolio over time. Insight puts this belief into action when managing the Fund, seeking to differentiate itself from other investment grade bond funds by being:
Highlights
4/6
Launched in 2013, supported by a 18-year institutional strategy track record, tested through a full market cycle against the Bloomberg U.S. Credit Index.
18
-year
Sources and Disclosures
1 Includes employees of Insight North America LLC and its affiliates, which provide asset management services as part of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML).
Important Disclosures
View the AAM/Insight Select Income Fund’s prospectus.
Past performance and is not a guarantee of future results. Diversification does not assure a profit or protect against a loss in a declining market.
Investment Risks: All investments are subject to risks including the potential loss of principal. The Fund’s principal risks are outlined below. More information about these risks may be found in the Fund’s prospectus.
Fixed income securities decrease in value if interest rates rise. The Fund may not be able to sell some or all of the investments that it holds or may only be able to sell those investments at less than desired prices. High yield bonds (“junk bonds”) involve greater risks of default, downgrade, or price declines. Convertible securities and warrants are subject to potentially greater volatility than the general market. Foreign securities may be more volatile than the securities of U.S. issuers because of economic and other conditions. These risks are heightened in emerging markets. Investments denominated in foreign currencies are subject to changes in value relative to the U.S. dollar. Real Estate Investment Trusts (REITs) are subject to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. Master Limited Partnership Units (MLPs) risk includes the risks associated with a similar investment in equity securities.
Additional risks include cash flow risk, tax risk, risk associated with a potential conflict of interest between unit holders and the MLP’s general partner, and capital markets risk. Securities lending involves certain potential risks, primarily counterparty, market, liquidity and reinvestment risks. Additionally, the Fund may employ hedging techniques that involve a variety of derivative transactions, including futures contracts, swaps, exchange-listed and over-the-counter put and call options on securities or on financial indices, and various interest rate and foreign-exchange transactions (collectively, “Hedging Instruments”). Hedging Instrument Risks involves certain potential risks, primarily counterparty, market, liquidity and reinvestment risks. Investing in an ETF will provide the Fund with exposure to the securities comprising the index on which the ETF is based and will expose the Fund to risks similar to those of investing directly in those securities.
Interest rate risk is the risk that the value of securities will fall if interest rates increase. Securities typically fall in value when interest rates rise and rise in value when interest rates fall. Additionally, securities held with longer periods before maturity are often more sensitive to interest rate changes.
A bond rating is a grade typically given by a private independent rating service that indicates a security’s credit quality, which is intended to evaluate a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. AAA, AA, A, and BBB are considered investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. U.S. Government or agency securities are generally considered to be of the highest quality. Below investment-grade or high-yield bonds involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged, broad based index composed of U.S. dollar denominated, investment grade, fixed-rate taxable bonds with at least $250 million par amount outstanding and at least one year to final maturity.
Bloomberg U.S. Credit Bond Index measures the performance of investment grade corporate debt and agency bonds that are dollar denominated and have a remaining maturity of greater than one year. It is not possible to invest directly in an index.
Alpha measures the excess return of an investment relative to a benchmark index.
Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. It measures how long it takes, in years, for an investor to be repaid the bond’s price by the bond’s total cash flows.
A yield curve is a graph in which the yield of fixed-interest securities with equal credit quality is plotted against the length of time to maturity from shortest to longest.
Not FDIC Insured - Not Bank Guaranteed - May Lose Value.
Distributed by IMST Distributors, LLC. Advisors Asset Management, Inc. (AAM) is an SEC-registered investment advisor and member FINRA / SIPC. SEC registration does not imply a certain level of skill or training; nor does it imply that the SEC has sponsored, recommended or otherwise approved of AAM. Insight is not affiliated with IMST Distributors, LLC.
CRN: 2023-0413-10796 R Link 9184
This form is for use by financial professionals only who reside in the U.S. We're unable to act on any requests to buy, sell or exchange securities included in the submission of this form. AAM will never share your contact information outside of AAM. By completing this form, you're agreeing to be contacted via email.
A global specialist asset manager with deep experience and resources in fixed income management. Insight Investment is the largest autonomous subsidiary of Bank of New York Mellon.
As of 12/31/2023
1/4
Extensive, highly experienced, specialized resources across all aspects of fixed income investing; research, portfolio management and operations
2/4
Aims to add value through a credit-focused security selection process, and active management of duration, yield curve, and market allocations
Investment Professionals
275+
3/4
Aims to add value through a credit-focused security selection process, and active management of duration, yield curve, and market allocations
Strong team of global specialists spanning all major sub-sectors of the fixed income markets (NY, Boston, San Francisco & London)
150+
4/4
May work as a standalone investment or as a complement to other active and passive fixed income strategies
employees
1
1,000+
Meet the investment team
Erin Spalsbury
Head of U.S. Credit, North America, Portfolio Manager
James DiChiaro,
Senior Portfolio Manager
Eleanor K. Moffat
Vice President
and Principal
While higher rates could make life difficult for equity investors, it potentially creates a sweet spot for fixed income. In fact, Insight views TARA (“there are reasonable alternatives” to equities) as the new watchword, as opposed to TINA (“there is no alternative” to equities), which had been the story over the last few years.
Regardless of the current “story,” fixed income is a critical allocation in many investors’ portfolios. When investing in fixed income, we believe a flexible, diversified approach that seeks to identify market inefficiencies while actively focusing on risk and return is critical to success.
Figures illustrate the ending value of a hypothetical investment. An investment may be worth more or less than the initial principal investment at sale. Actual returns will vary over time and may not always be positive. The amounts shown above are hypothetical and do not relate to the Shenkman Capital Short Duration High Income Fund or any AAM product and are for illustrative purposes only.
1/3
SELECTIVE
The size of the fund helps enable it to remain selective with credits and consistently monitor the portfolio to maintain a high level of conviction in each individual investment.
2/3
3/3
The index excludes high yield bonds, leveraged loans, municipal bonds, inflation-indexed bonds and foreign currency bonds, among others, which we view as missed opportunities given their potential to deliver a high level of income and potentially aid in improving total return.
Top-down sector rotation and bottom-up security selection are expected to be the primary drivers of performance.
PERFORMANCE DRIVERS
BEST IDEAS
*Bloomberg US Aggregate Bond Index
Highlights
BENCHMARK AGNOSTIC
The Fund is intentionally not tied to benchmark weights in an effort to provide the flexibility to potentially exploit security mispricing and market inefficiencies across global credit markets.
GLOBAL & BROADLY DIVERSIFED
Actively allocates across all sectors of the credit and fixed income sectors, including asset backed securities, high yield and emerging markets. Relative value focused emphasis across full breadth of credit instruments.
DILIGENT RESEARCH
Extensive specialized resources across all aspects of fixed income investing including research, portfolio management and operations.
The Bloomberg US Aggregate Bond Index, which is often used as representative of the broad fixed income market, is heavily concentrated in Treasuries and Agency securities.
Tactically positioning the Fund in Insight's collective "best ideas" may be particularly beneficial in a volatile environment, especially compared to larger, often macro-focused strategies.
The fund may work as a standalone investment or as a complement to other active and passive fixed income strategies.