AAM/HIMCO SHORT DURATION FUND

ASDAX • ASDCX • ASDIX

HIMCO logo

AAM/HIMCO Short Duration Fund

Objective

The Fund's investment objective is current income and long-term total return.

Morningstar Ratings as of March 31, 2024
Class I Shares, Ultrashort Bond Universe, Based on Risk-Adjusted Returns

OVERALL

203 Funds
3-YEAR

203 Funds
5-YEAR

183 Funds

Morningstar Rating is for the Class I share class only; other classes may have different performance characteristics. Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. Past performance is no guarantee of future results.

Why AAM/HIMCO Short Duration Fund?

  • Diversification across sectors provides multiple levers to seek to provide attractive current income
  • Short duration and weighted average life generally result in less volatility from moves in interest rates and credit spreads relative to traditional fixed income
  • Laddered portfolio has the potential to provide cash flow for liquidity or to be reinvested in what we believe are higher income opportunities
  • Active management and diversification seek to mitigate volatility and provide strong risk-adjusted returns
  • Experienced investment professionals who have managed through multiple economic cycles
  • Integrated risk management throughout the portfolio construction process seeks to protect clients from excess volatility

Investment Approach

HIMCO's investment philosophy employs a balanced top-down, bottom-up approach to determine underlying relative value and identify market trends and global themes.

During periods of economic expansion and rising interest rates, it may be beneficial to have greater exposure to credit risk versus interest rate risk. Consequently, during periods of economic contraction and falling interest rates, having less exposure to credit risk versus interest rate risk may be beneficial.

Investment Process

HIMCO focuses on sector rotation, security selection and duration management, driven by the firm’s top-down view of the economy.

HIMCO’s Investment Strategy Committee utilizes top-down macro strategy views from the Portfolio Strategy Group, developed using a consistent quantitative framework, in conjunction with qualitative inputs from HIMCO’s sector teams.

The Fund employs a disciplined process for selecting the Fund’s investments:

  1. Analysis from three key perspectives: fundamentals, technicals and market pricing
  2. Rigorous risk management at each stage
  3. Research analysts drive security selection through rigorous fundamental analysis and evaluation of opportunities with the potential to serve as catalysts for capital appreciation.
  4. Portfolio managers are responsible for every aspect of portfolio construction.


All products shown above may not be available within your firm. Please consult your AAM Representative for more information.

View the AAM/HIMCO Short Duration Fund prospectus.  The AAM Funds are distributed by IMST Distributors, LLC.

There is a 1.00% redemption fee imposed on shares if redeemed within 30 days of purchase.

Mutual fund investing involves risk, including the potential loss of principal. A significant percentage of the Fund’s assets may be below investment-grade securities (“high-yield securities” or “junk bonds”), which are rated lower because there is a greater possibility that the issuer may be unable to make its interest and principal payments, and involve risks beyond those inherent in solely higher-rated investments.

Read more

The Weighted Average Life of the fund is the average time to receipt of unpaid principal of each security weighted by its respective contribution to the total market value of the fund, including principal and accrued interest.

Laddered Portfolio is a portfolio of fixed income securities of varied maturity dates.

There can be no assurance that this objective will be met or that losses will be avoided. Diversification cannot assure against market loss.

Duration is a measure of the sensitivity of the price of a fixed income investment to changes in the general level of interest rates.

This Fund invests in bank loans, which carry credit risks of nonpayment of principal or interest and risks of bankruptcy, insolvency, illiquidity, prepayment, interest rate, recovery and valuation.

The Fund may invest in derivatives, such as options, futures and swaps, which carry different (and possibly greater) risks than direct investments in issuers, and are very dependent upon the sub-adviser’s judgment. In addition, investments in derivative instruments are subject to the risk that the counterparty in a transaction will be unable to honor its financial obligation to the Fund.

The Fund is subject to credit risk (the risk that the issuing company may not be able to pay interest and principal when due), interest rate risk (the risk that your investment may go down in value when interest rates rise), and risk of loss (the risk that you could lose money on your investment).

The Fund may invest in foreign securities, which can be riskier than investments in U.S. securities (risks may include currency risk, illiquidity risks, and risks from substantially lower trading volume on foreign markets). These risks are magnified in emerging markets.

This Fund is subject to liquidity risk because its investments may trade less frequently or are not readily marketable; this may adversely affect the Fund’s value or prevent the Fund from being able to meet cash obligations or take other investment opportunities.

The Fund invests in mortgage-backed, commercial mortgage-backed and asset-backed securities, which are subject to higher interest rate, extension 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.

©2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% received 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.
CONTACT US
866.606.7220

Why short duration income? learn more  
Fund Facts
Tickers / CUSIPs
Class A:   ASDAX / 461 41P 248
Class C:   ASDCX / 461 41P 230
Class I:   ASDIX / 461 41P 222
Inception Date
  June 30, 2014
Minimum Investment
Class A/C: $2,500 initial
  $500 subsequent
Class I: $25,000 initial
  $5,000 subsequent
Expense Ratio 1
Class A:   0.85% net
  0.85% gross
Class C:   1.60% net
  1.60% gross
Class I:   0.60% net
  0.60% gross

1The Fund’s advisor has contractually agreed to waive certain fees/expenses until October 31, 2033 and may recoup previously waived expenses that it assumed during the previous three-year period.