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Delivering Alpha: AAM Dividend Sustainability Portfolio Strategy


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UIT Historical Connection Performance uses a custom algorithm developed by UIT Investing that employs a defined process to re-create an invested return of a strategy. For a client who invested in the AAM Dividend Sustainability Strategy on 1/31/2016, their invested return would be composed of two series whose performance delivered alpha on an annualized basis. The figures below show how each series can contribute to a client’s overall invested return:

  • AAM Dividend Sustainability Series 2015-2 (Terminated): Cumulative Total Return 36.03%, Alpha (annualized) 3.79%
  • AAM Dividend Sustainability Series 2017-4Q: Cumulative Total Return 9.54%, Alpha (annualized) 3.75%

Data Sources: Bloomberg, YCharts, Advisors Asset Management.  Performance data 3 years through 01/31/2019.

Cumulative returns of the unit investment trust strategy are based on distributions received in cash and assume income and principal distributions are paid out on the payable date during the life of the unit investment trust.  All distributions from the series are reinvested at the time of purchase into the following series utilized in the historical chain of the strategy.  The following series of a strategy is determined by utilizing the series intended for the investment continuation of the strategy upon termination.  If no series intended for investment continuation of a strategy exists, the existing primary, if available, at time of termination is utilized.  Returns are calculated excluding the Transactional Sales Charges for each unit investment trust series but does reflect the Creation & Development Fee and trust operating expenses as incurred for each unit investment trust series included in the calculation.  The returns do not adjust for taxes. If adjusted or taxes, the effects of taxation would reduce the performance depicted.

Past performance is no indicator of future results.  Investment return and principal value will fluctuate with changes in market conditions.  We make no assurance that any investment product based on an index will accurately track index performance or provide positive investment returns.  An investment in units of a unit investment trust and continuing the investment in units of subsequent series of a unit investment trust strategy, when redeemed may be worth more or less than their original investment.

The Russell 3000 Index is a market-capitalization-weighted equity index maintained by the FTSE Russell that provides exposure to the entire U.S. stock market. The index tracks the performance of the 3,000 largest U.S.-traded stocks which represent about 98% of all U.S incorporated equity securities.

Any written analysis appearing herein are statements of opinion and not statements of fact.  The data and information contained herein has been obtained from sources believed to be reliable.  However, we do not warrant the accuracy or completeness of any information, data or analysis contained herein and we provide no assurance that the content of this material is, in fact, accurate.  This information, data, analysis and any opinions contained herein are for informational purposes only and does not constitute investment advice or a recommendation to buy, sell or hold a securities product or strategy.  UIT Investing, Inc. does not provide investment advice and is not responsible for trading decisions, suitability determinations, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use.

All investments carry a certain degree of risk and there is no assurance that an investment will provide positive performance over any time period.  Past performance is not indicative of future results and should never be relied upon in making an investment decision or recommendation.

Investors should consider the investment objectives, risks, charges and expenses of the unit investment trust(s) carefully before investing.  The prospectus contains this and other information about the unit investment trust(s).  This may not contain a complete discussion of investment terms or risks and you should only rely on the information contained in relevant prospectus and/or offering documentation prior to purchasing an investment product or making a recommendation to a customer.  To obtain a prospectus, investors should contact their financial advisor. Please read the prospectus carefully before investing.

Photo by Karsten Würth (@inf1783) on Unsplash

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