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. Aggregate Bond Index represents securities that are investment grade, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

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. Below investment grade securities, also known as high yield or junk securities, may be considered speculative and may be subject to greater market and credit risks. Accordingly, the risk of default may be higher than with investment grade securities. In addition, these securities may be more sensitive to interest rate changes and may be more likely to make early returns of principal. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. 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.

Alternative Income Producing investments are subject to certain risks including but limited to: An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. An issuer of a security may be unwilling or unable to pay income on a security. A company’s stock price may move up or down depending on various market conditions. BDC portfolios are relatively illiquid and tend to have high credit risk, or the risk of default, leading to increased volatility and a greater likelihood of large price declines during a market downturn. REITs are particularly vulnerable to the risks of the real estate industry including declines in real estate values, changes in interest rates, economic downturns, overbuilding and changes in zoning laws and government regulations. MLPs are generally focused on a single industry or industry segment, so have industry risk and concentrated exposure risk. Closed-end funds are actively managed investment companies and are subject to various risks, including management’s ability to meet the fund’s investment objective, risks associated with the use of leverage and borrowing, risks associated with management of the fund’s portfolio when securities are redeemed or sold, and risks associated with shares of the fund trading at a discount or premium to the fund’s net asset value.

CRN: 2022-1128-10482 R Link 7436

Portfolio Facts
Strategy Inception 7/2003
Benchmark Bloomberg U.S. Aggregate Bond Index
Objective Above Average Income
Minimum Investment $250,000
Lead Portfolio Manager

Brian Gilbert

Portfolio Manager

Years of experience: 25-plus


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