How LODI Provides Value in a "Stagflation Light" Environment

Loi is it's an actively managed ETF.

It's subadvised by SLC fixed income who's an affiliate company of ours here at AAM.

Uh they have a vast amount of experience in managing different types of fixed income portfolios with with well over 140 billion in assets under management.

Um and the value that this particular strategy of theirs uh and what it's providing in this what we call a stagflation light environment um is its fundamental bond picking strategy.

So regarding interest rates, just to answer that part of the question, Loi actually seeks to stay duration neutral to its benchmark.

Um, so typically its duration tends to hover anywhere from one and a half to two years.

So definitely on the lower end of the duration spectrum.

Um the primary value ad from that strategy typically comes from that security selection process and the ability for the portfolio managers to stay unconstrained from a sector standpoint where they can invest in other security uh other security types outside of just your typical corporate credit sectors.

So think asset back securities, commercial mortgage back securities, collateralized loan obligations or also known as CLOS's.

Uh so right now these sectors are a bulk of the portfolio and where the managers have been taking profits where necessary and then redeploying that capital uh into higher quality uh securities within those particular sectors.

So um that's how we feel that the strategy is really able to navigate um both of those sides of the current environment.