Advisors Asset Management Introduces AAM SLC Low Duration Income ETF
Advisors Asset Management (AAM) has launched its fourth ETF of the year, the AAM SLC Low Duration Income ETF (NYSE: LODI), sub-advised by SLC Fixed Income. The actively managed ETF employs a bottom-up selection process focusing on investment grade corporate and securitized investments.
LODI aims to outperform the Bloomberg U.S. 1-3 Yr Govt/Credit Index while providing higher income. The fund is designed to reduce fixed income portfolio volatility through duration reduction while potentially enhancing income and total return. It strategically manages sector rotations and focuses on short duration credit and securitized opportunities to offer attractive yields with lower interest rate sensitivity.
Advisors Asset Management (AAM) ha lanciato il suo quarto ETF dell'anno, il AAM SLC Low Duration Income ETF (NYSE: LODI), gestito sotto consulenza di SLC Fixed Income. L'ETF attivamente gestito utilizza un processo di selezione dal basso verso l'alto, concentrandosi su investimenti societari e cartolarizzati di grado d'investimento.
LODI mira a sovraperformare il Bloomberg U.S. 1-3 Yr Govt/Credit Index mentre fornisce un reddito più elevato. Il fondo è progettato per ridurre la volatilità del portafoglio obbligazionario attraverso una riduzione della duration, potenziando simultaneamente il reddito e il rendimento totale. Gestisce strategicamente le rotazioni settoriali e si concentra su opportunità di credito a breve termine e cartolarizzate per offrire rendimenti interessanti con una minore sensibilità ai tassi d'interesse.
Advisors Asset Management (AAM) ha lanzado su cuarto ETF del año, el AAM SLC Low Duration Income ETF (NYSE: LODI), asesorado por SLC Fixed Income. El ETF gestionado activamente emplea un proceso de selección de abajo hacia arriba, enfocándose en inversiones corporativas y titulizadas de grado de inversión.
LODI busca superar el Bloomberg U.S. 1-3 Yr Govt/Credit Index al mismo tiempo que proporciona un ingreso más alto. El fondo está diseñado para reducir la volatilidad de la cartera de renta fija mediante la reducción de la duración, mientras potencialmente mejora el ingreso y el rendimiento total. Maneja estratégicamente las rotaciones sectoriales y se enfoca en oportunidades de crédito de corta duración y titulizaciones para ofrecer rendimientos atractivos con menor sensibilidad a las tasas de interés.
Advisors Asset Management (AAM)는 올해 네 번째 ETF인 AAM SLC Low Duration Income ETF (NYSE: LODI)를 SLC Fixed Income의 자문으로 출시했습니다. 이 적극적으로 관리되는 ETF는 투자 등급의 기업 및 증권화 투자에 집중하는 아래에서 위로의 선택 프로세스를 사용합니다.
LODI는 Bloomberg U.S. 1-3 Yr Govt/Credit Index를 초과 성과를 목표로 하면서 더 높은 수익을 제공합니다. 이 펀드는 고정 수익 포트폴리오의 변동성을 줄이는 동시에 수익 및 총 수익을 향상시키기 위해 설계되었습니다. 전략적으로 섹터 회전을 관리하고 단기 신용 및 증권화 기회에 집중하여 낮은 금리 민감도로 매력적인 수익률을 제공합니다.
Advisors Asset Management (AAM) a lancé son quatrième ETF de l'année, le AAM SLC Low Duration Income ETF (NYSE: LODI), conseillé par SLC Fixed Income. L'ETF géré activement utilise un processus de sélection de bas en haut, axé sur les investissements d'entreprises de qualité d'investissement et les investissements titrisés.
LODI vise à surperformer le Bloomberg U.S. 1-3 Yr Govt/Credit Index tout en offrant un revenu plus élevé. Le fonds est conçu pour réduire la volatilité du portefeuille obligataire par une réduction de la duration, tout en améliorant potentiellement le revenu et le rendement total. Il gère stratégiquement les rotations sectorielles et se concentre sur les opportunités de crédit à court terme et titrisées pour offrir des rendements attrayants avec une sensibilité plus faible aux taux d'intérêt.
Advisors Asset Management (AAM) hat sein viertes ETF des Jahres aufgelegt, das AAM SLC Low Duration Income ETF (NYSE: LODI), das von SLC Fixed Income beraten wird. Der aktiv verwaltete ETF verwendet einen Bottom-up-Auswahlprozess, der sich auf Investitionsbewertungswerte und besicherte Anlagen konzentriert.
LODI zielt darauf ab, den Bloomberg U.S. 1-3 Yr Govt/Credit Index zu übertreffen, während er höhere Einkünfte bietet. Der Fonds wurde konzipiert, um die Volatilität des festverzinslichen Portfolios durch Reduzierung der Duration zu verringern, während gleichzeitig das Einkommen und die Gesamtrendite potenziell erhöht werden. Er verwaltet strategisch Sektorrotationen und konzentriert sich auf kurzfristige Kredit- und besicherte Anlagemöglichkeiten, um attraktive Renditen mit geringerer Zinsrisikoempfindlichkeit zu bieten.
- Launch of new ETF product expanding company's investment solutions portfolio
- Strategic focus on low duration investments to reduce portfolio volatility
- Active management approach targeting higher income generation
- None.
Insights
The launch of AAM's LODI ETF represents a strategic entry into the low-duration fixed income space, targeting investors seeking yield with reduced interest rate risk. The actively managed approach focusing on investment-grade corporate and securitized investments differentiates it from passive alternatives in the 1-3 year duration segment.
The timing is particularly relevant given the current yield curve environment and market expectations for potential rate cuts in 2024. The fund's strategy of tactical sector rotation and bottom-up selection could provide opportunities to capture higher yields than traditional money market instruments while maintaining relatively low duration risk.
Key advantages include:
- Active management flexibility in a short-duration framework
- Focus on investment-grade securities for credit quality
- Potential for higher income versus money market funds
- Reduced interest rate sensitivity compared to longer-duration alternatives
LODI becomes AAM's fourth ETF launched this year and newest offering in growing ETF suite
The AAM SLC Low Duration Income ETF is actively managed, employs a
"AAM is proud to deepen its commitment to opportunities within the ETF space by launching LODI in partnership with an exceptional manager in SLC Management who brings decades of expertise in fixed income investing," said Cliff Corso, President, CIO, AAM. "With today's dynamic market environment—characterized by shifting interest rates and growing demand for diversified income solutions—LODI is positioned to help investors navigate uncertainty while seeking long-term stability and returns."
LODI is designed to lower fixed income portfolio volatility through duration reduction while also modestly increasing duration and credit risk away from money market and equivalent instruments to potentially enhance income and total return.
"We believe short duration credit and securitized opportunities can be advantageous to investors, offering attractive yields with lower sensitivity to interest rate volatility," said Richard Familetti, CIO,
About Advisors Asset Management
For 45 years, AAM has been a trusted resource for financial advisors and broker/dealers. The firm offers access to alternatives, exchange-traded funds, fixed income markets, managed accounts, mutual funds, structured products, and unit investment trusts. AAM is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information, visit www.aamlive.com.
For the one-year period ending September 30, 2024, AAM facilitated over
*Of the
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the investment company, and it may be obtained by calling 800.617.0004 or visiting www.aamlive.com. Read it carefully before investing.
Investing involves risk; Principal loss is possible.
Principal Risks: Fixed-income securities are subject to the ability of an issuer to make timely principal and interest payments (credit risk), changes in interest rates (interest-rate risk), the creditworthiness of the issuer and general market liquidity (market risk). In a rising interest-rate environment, bond prices may fall and may result in periods of volatility and increased portfolio redemptions. In a declining interest-rate environment, the portfolio may generate less income. Mortgage-backed and asset-backed securities are subject to higher interest rate and prepayment risk; the value of these investments may be reduced or become worthless if they are "subordinated" and receive interest or income payments only after other interests in the same mortgage or asset pool are satisfied. Active trading may increase the Fund's transaction costs, affect performance, and increase your taxable distributions. New Fund Risk: The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Management Risk: The Fund is actively managed and may not meet its investment objective based on the Adviser's success or failure to implement investment strategies for the Fund. CLO Risk: CLOs are securities backed by an underlying portfolio of loan obligations. CLOs issue classes or "tranches" that vary in risk and yield and may experience substantial losses due to actual defaults, decrease of market value due to collateral defaults and removal of subordinate tranches, market anticipation of defaults and investor aversion to CLO securities as a class. High-Yield Securities Risk: High-yield securities (also known as "junk bonds") carry a greater degree of risk and are considered speculative by the major credit rating agencies. Privately Issued Securities Risk: The Fund may invest in privately issued securities issued under Rule 144A or Regulation S under the Securities Act of 1933, as amended. Sales of privately issued securities are subject to numerous restrictions including, but not limited to, that sales of privately issued securities may typically be made only to qualified institutional buyers, in privately negotiated transactions, to a limited number of purchasers, or in limited quantities after being held for a specific period of time.
Advisors Asset Management, Inc. (AAM) is a SEC-registered investment advisor and member FINRA/SIPC. | Registration does not imply a certain level of skill or training. | 18925 Base Camp Road |
AAM ETFs are distributed by Quasar Distributors, LLC. AAM and Quasar are not affiliated.
For more information, visit www.aamlive.com | X (Twitter): @aamlive | LinkedIn: https://www.linkedin.com/company/advisors-asset-management-inc-/
CRN: 2024-1126-12139 R
CONTACT:
Matthew Bono
JConnelly
(973) 590-9110
mbono@jconnelly.com
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SOURCE Advisors Asset Management
FAQ
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