AAM/HIMCO GLOBAL ENHANCED DIVIDEND FUND

AAM/HIMCO Global Enhanced Dividend Fund

Class A: HGDAX  Class C: HGDCX  Class I: HGDIX 

Objective

The Fund’s objective is to seek to provide a high level of current income and capital appreciation.

Why AAM/HIMCO Global Enhanced Dividend Fund?

  • Attractive income potentially higher than other equity income strategies
  • Disciplined long/short approach avoids the possible downfalls of stock and sector concentration typically associated with high dividend investing
  • Diversification across country, industry and company seeks to minimize volatility and target multiple sources of income
  • Focus on companies with strong fundamentals seeks to provide sustainability of dividend income

Investment Process

Stock Selection

HIMCO’s process evaluates the same metrics as traditional fundamental stock analysts. Depending on the industry or sector, different metrics are utilized based on their historical predictive ability. These metrics are used for relative value assessment of individual stocks within sectors/industry groups. Fund Portfolio Managers generally will:

  • Overweight (buy) highly ranked stocks
  • Avoid or sell short* lower ranked stocks

Portfolio Construction: Seek High Quality Companies with Attractive Dividend Yields

HIMCO’s disciplined investment approach analyzes company fundamentals and seeks to identify the highest quality companies in the investable universe. HIMCO then seeks to invest in those companies that they believe have attractive dividend opportunities and avoid or sell short* those companies that HIMCO believes have weak fundamentals & low/no dividends.

AAM/HIMCO GLOBAL ENHANCED DIVIDEND FUND

There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including potential loss of principal.


* Short selling is the sale of a stock that has been borrowed. The seller profits if the security drops in price and can buy it back (cover) to replace the borrowed security. The profit is the difference between the original proceeds of the sale and the purchase amount.

Click to view the prospectus.

An investment in the Fund is subject to risks and you could lose money on your investment in the Fund. The Fund may invest in derivatives, which carry different (and possibly greater) risks than direct investments in issuers, and are very dependent upon the sub-advisor’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. In connection with a short sale of a security or other instrument, the Fund is subject to the risk that instead of declining, the price of the security or other instrument sold short will rise. The prices of foreign securities may be more volatile than the securities of U.S. issuers because of economic conditions abroad, political developments, and changes in the regulatory environment of foreign countries; these risks are more pronounced for investments in issuers in developing or emerging market countries. Investments in micro-, small- and mid-cap companies involve greater risks including increased price volatility compared to the market or larger companies. An issuer may be unwilling or unable to pay dividends or may reduce the level of dividends declared. There is no guarantee that an issuer will pay a dividend. The Fund’s investment in ETFs and mutual funds generally reflects the risks of owning the underlying securities the ETF or mutual fund holds. It may also be more expensive for the Fund to invest in an ETF or mutual fund than to own the portfolio securities of these investment vehicles directly. Active trading may increase the Fund’s transaction costs, affect performance, and increase your taxable distributions. Arrangements to trade forward contracts may be made with only one or a few counterparties, and liquidity problems therefore might be greater than if such arrangements were made with numerous counterparties. The imposition of credit controls by governmental authorities might limit such forward trading to less than the amount that the Sub-Advisor would otherwise recommend, to the possible detriment of the Fund. Futures may be more volatile than direct investments in the securities underlying the futures, may not exactly correlate to the underlying securities, may involve additional costs, and may be considered illiquid. Certain Fund transactions, including taking short positions in financial instruments, may give rise to a form of leverage. Leverage can magnify the effects of changes in the value of the Fund’s investments and make the Fund more volatile. An investment in Master Limited Partnership units involves risks in addition to the risks associated with a similar investment in equity securities, such as common stock, of a corporation. The Fund’s investments in Real Estate Investment Trusts (REITs) will subject the Fund to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. The Fund may invest a larger portion of its assets in one or more sectors than many other mutual funds, and thus will be more susceptible to negative events affecting those sectors. More information about these risks may be found in the Fund’s prospectus.

Distributed by IMST Distributors, LLC.

Fund Facts
Tickers / CUSIPs
Class A:   HGDAX / 46141Q261
Class C:   HGDCX / 46141Q253
Class I:   HGDIX / 46141Q246
Inception Date
  December 26, 2017
Minimum Investment
Class A/C: $2,500 initial
  $500 subsequent
Class I: $25,000 initial
  $5,000 subsequent
Expense Ratio 1
Class A:   1.89% net
  6.42% gross
Class C:   2.64% net
  7.17% gross
Class I:   1.64% net
  6.17% gross

1The Fund’s advisor has contractually agreed to waive certain fees/expenses (including advisory fees and fund operating expenses) until October 31, 2028. The Fund’s advisor is permitted to seek reimbursement from the Fund for a period ending three full fiscal years after the date of the waiver or payment. This reimbursement may be requested from the Fund if the aggregate amount of operating expenses for such fiscal year, as accrued each month, does not exceed the lesser of (a) the limitation on Fund expenses in effect at the time of the relevant reduction in advisory fees or payment of the Fund’s expenses; or (b) the limitation on Fund expenses at the time of the request. Net Expense Ratios reflect the reduction in total fund expenses given the fee/expense waiver described above. For more details, please refer to the prospectus.

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