Creating a comprehensive portfolio that helps achieve investors' long-term financial objectives without undue exposure to market volatility can be complex and daunting. Portfolio Optimization Funds make this task easier through five turnkey strategies across risk tolerance levels that are managed by a dedicated multi-asset solutions team.
Our funds follow a rigorous process to invest across global asset classes. This diversified approach has the potential to deliver consistent performance through most market regimes and makes it a core component of meeting your financial goals.
Our investment philosophy is put into practice through three principles: maintaining a long-term focus, following facts not feelings, and avoiding market timing.
Portfolio Optimization Funds range in investment style from conservative to aggressive-growth to help match your risk tolerance and investment goals.
Seeks current income and moderate growth of capital.
Seeks long-term growth of capital and low to moderate income.
Seeks moderately high, long-term capital appreciation with low, current income.
Aristotle Funds offers five Portfolio Optimization Funds, allowing investors to match their desired return and risk tolerance to the appropriate strategy. Each fund follows the rigorous process described to invest across a diversified blend of global equity and fixed-income asset classes as appropriate for the current market regime and its target risk level. To see each fund's current allocations, please refer to its respective fact sheet.
The asset allocation funds are sub-advised by Pacific Life Fund Advisors. Established in 2007, Pacific Life Fund Advisors provides multi-asset solutions through its asset allocation, investment research, and investment risk management teams.
A Philosophy of Disciplined Diversification
Diversification is critical regardless of investors' financial objectives, whether they're nearing retirement or just embarking on a career. Although diversification or investing in uncorrelated asset classes that perform differently across market environments, does not ensure a profit or protect against losses, it can help minimize the effects of volatility without sacrificing the potential for returns.
Our investment philosophy builds upon the foundation of diversification with three principles that ensure disciplined stewardship of investor assets.
We maintain a long-term focus that allows us to avoid reactionary responses to short-term spikes in volatility.
We follow facts not feelings and base our investment decisions on thorough analysis of objective data through both quantitative and fundamental processes.
As our views are generally based on long-term trends rather than tactical trade ideas, we make adjustments gradually to avoid the pitfalls of market timing.
A Balanced and Integrated Process for Consistent Results
Aristotle Investment Services' philosophy is put into practice by three integrated teams that seek to balance consistent risk-adjusted performance with downside protection.
The Asset Allocation team formulates investment views across the funds which are developed through a combination of fundamental and quantitative research. Aristotle Investment Services' top-down fundamental research delves into macro-economic, geopolitical, and asset-class specific topics. Aristotle Investment Services' quantitative research leverages cutting-edge techniques like machine learning to forecast inflection points in economic cycles, monitor sentiment, and ascertain the relative attractiveness of global regions.
The Investment Research team seeks to increase the Funds’ alpha by selecting asset managers through a “Four P” evaluation: People, Philosophy, Process, and Performance. To determine which managers performed well while considering their unique investment style, the team runs each manager through a quantitative model that measures its style betas and breaks out the true, or net of factor, alpha. We have found that determining net-of-factor alpha is a key metric in forecasting the consistency of a manager’s outperformance.
Investment Risk Management
The Investment Risk Management team provides an independent assessment of the funds. Specifically, the team seeks to ensure the funds are taking appropriate levels of risk for their investment objectives and all risk exposures are intentional. This is achieved through continual analysis of portfolio management, portfolio construction, and security-level risk monitoring.
Asset allocation and diversification do not guarantee future results, ensure a profit or protect against loss. Although diversification among asset classes can help reduce volatility over the long term, this assumes that asset classes do not move in tandem and that positive returns in one or more asset classes will help offset negative returns in other asset classes.
There is a risk that you could achieve better returns by investing in an individual fund or multiple funds representing a single asset class rather than using asset allocation. A fund-of-funds does not guarantee gains, may incur losses and/or experience volatility, particularly during periods of broad market declines, and is subject to its own expenses along with the expenses of the underlying funds. It is typically exposed to the same risks as the underlying funds in which it invests in proportion to their allocations.
Investors should consider a fund's investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the fund and are available from your financial advisor. The prospectus and/or summary prospectus should be read carefully before investing.
Foreside Financial Services, LLC, distributor.
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