CONSERVATIVE TAXABLE

Investment Objective and Strategy

AAM's Conservative Taxable Strategy seeks to offer investors income and capital preservation. The strategy invests predominantly in fixed income securities with A, AA and AAA ratings by a Nationally Recognized Statistical Ratings Organization (NRSRO).* Capital will be positioned in multiple types of securities such as, but not limited to, investment grade fixed income debt, preferred stock, exchange-traded funds and closed-end funds. Securities will be diversified according to market opportunities.

Investment Process

Well-defined investment process. Seeks to maximize risk-adjusted returns.

AAM’s Conservative Taxable Strategy is actively managed by a committee of investment professionals. Top down economic analysis is employed to determine composite duration and credit risk exposure. Bottom-up valuation is utilized for security selection with an emphasis on balance through diversification across maturity, bond structure and position size. The management team actively seeks opportunities for improving income and risk-adjusted returns through fundamental analysis, rigorous security selection, portfolio diversification, and credit monitoring.

AAM utilizes a four-step process for portfolio construction:

Duration is set based on AAM’s interest rate outlook and top-down economic cycle analysis.
Economic cycle analysis seeks to identify the optimal credit risk exposure.
Bottom-up security valuation and selection focused on maturity, credit quality and coupon.
Emphasizes balance through diversification across maturity, bond structure and position size.

Under normal conditions, AAM will seek to invest strategy assets in accordance with the investment objectives as stated above. Unusual market conditions, special instructions and/or account restrictions may cause individual accounts to exhibit characteristics outside of the stated objectives and may impact our ability to achieve stated objectives.

* The strategy will employ a minimum rating for bonds of A- by at least one NRSRO. The portfolio will be diversified according to market opportunities.

See the ADV for Advisors Asset Management, Inc. for more information about the firm, fees, strategies and related risks. The results and portfolios for individual portfolios may vary. Investment returns and principal value will fluctuate and there can be no assurance that any strategy’s objective will be achieved.

The Bloomberg U.S. Intermediate Government/Credit Index is an unmanaged index based on all publicly issued intermediate government and corporate debt securities with maturities of 1-10 years and represent the investment grade, U.S. dollar-denominated, fixed-rate, taxable corporate and government related bond markets.

Principal Risks: Fixed income securities are subject to certain risks including, but not limited to: Interest rate risk is the danger that changes in interest rates may cause a decline in the market value of an investment. Credit risk is the risk that the bond issuer may not be able to pay interest or return principal due to changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral. Market risk, or systematic risk, is the risk that results from the characteristic behavior of an entire market or asset class. Prepayment risk is the risk that debt issuers may repay or refinance their loans or obligations earlier than anticipated. Duration risk measures the sensitivity of a bond’s price to a one percent change in interest rates. The higher a bond’s duration, the greater its sensitivity to interest rates changes.

CRN: 2022-1128-10482 R Link 7436

Portfolio Facts

Strategy Inception	8/2005
Benchmark	Bloomberg U.S. Intermediate Government/Credit Bond Index
Objective	Income and Capital Preservation
Minimum Investment	$250,000