Advisors Asset Management Introduces AAM SLC Low Duration Income ETF

News provided by

Dec 04, 2024, 09:08 ET

LODI becomes AAM's fourth ETF launched this year and newest offering in growing ETF suite

MONUMENT, Colo., Dec. 4, 2024 /PRNewswire/ -- Advisors Asset Management (AAM), a leading investment solutions provider, has expanded its exchange-traded fund (ETF) offerings with the launch of the AAM SLC Low Duration Income ETF, (NYSE: LODI), sub-advised by SLC Fixed Income, part of SLC Management.

The AAM SLC Low Duration Income ETF is actively managed, employs a 100% bottom-up issue selection process and tactically manages sector rotations to build a portfolio of high-conviction, investment grade corporate and securitized investments. LODI seeks to outperform the Bloomberg U.S. 1-3 Yr Govt/Credit Index on a total return basis, as well as aiming to provide a higher level of income.

"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, U.S. Total Return Fixed Income, SLC Management. "Within SLC Fixed Income, managing duration risk is a critical part of our investment strategy, and the LODI ETF can provide a unique balance of income generation and risk mitigation, making it a valuable addition to a diversified portfolio."

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 $35 billion in combined sales and investments through 16,400 financial professionals industry-wide who accessed AAM's investment solutions platform.*

*Of the $35 billion, approximately $8 billion were Exchange-Traded Fund (ETF), Managed Account (SMA), Mutual Fund, and Unit Investment Trust (UIT) assets, while $27 billion was in Fixed Income securities, including bonds and Structured Products.

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 | Monument, CO 80132

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
[email protected]

SOURCE Advisors Asset Management