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Cincinnati Asset Management, Inc., (“CAM”) was established in 1989 as a registered investment adviser with the United States Securities and Exchange Commission specializing in U.S. dollar denominated fixed income investments. CAM is an independent privately held corporation. CAM claims compliance with the Global Investment Performance Standards (GIPS®). Please contact us at the number referenced herein to obtain a GIPS Report or a list of composite descriptions. Performance examinations were conducted on the High Yield composite for the period April 1, 1989 through December 31, 2022, Investment Grade composite for the period January 1, 1993 through December 31, 2022 and Short Duration composite for the period June 1, 2004 through December 31, 2022. The Broad Market composite has been examined for the period January 1, 2007 through December 31, 2022. The Short Duration – Investment Grade composite has been examined for the period December 1, 2008 through December 31, 2022. Copies of the verification reports are available upon request.

GIPS® is a registered trademark of CFA Institute.  CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

The High Yield composite includes investments with credit ratings which average Ba3 with average maturity of four to eight years. The Investment Grade composite includes investments in fixed income securities with credit ratings averaging A3 with at least one investment grade credit rating and an average maturity of five to ten years. The Short Duration composite includes investments in fixed income securities with credit ratings averaging Baa3 and a target duration of three years. The Broad Market composite includes investments in fixed income securities with credit ratings averaging Baa2, an average duration between five and six years and an average maturity of seven to nine years. The Short Duration-Investment Grade composite includes investments in fixed income securities with credit ratings averaging A2 with at least one investment grade credit rating and an average maturity of two to four years.

The Adviser’s investment performance data conform to the following standards since inception:

1. The composites consist of all discretionary portfolios in each respective style under management, including all securities and cash held in the portfolios, appropriately weighted for the size of the portfolios. All portfolios are included after three months under management or upon reaching 65% invested by CAM, whichever occurs first.
2. Returns are calculated monthly in U.S. dollars and include reinvestment of dividends and interest.
3. Gross of fees performance results include all transaction costs and exclude management fees. When performance is compared to Lipper mutual fund averages gross performance net of CAM’s management fees is used.
4. For the period from April 1, 1989 through 1992, the High Yield composite includes all assets of all accounts that meet the above criteria, except that not all accounts were added to the composite by the beginning of the third full reporting period for which the account was under management. In addition, prior to 1990 certain diversification requirements were not met.

The indices shown for comparative purposes are based on or derived from information generally available to the public from sources believed to be reliable. No representation is made to their accuracy or completeness.

“Gross Yield Comparisons”: CAM yields are for client account purchases over the last thirty days, gross before the impact of fees or expenses.

Past performance should not be taken as an indication of future results.

High Yield bonds may not be suitable investments for all individuals.

This presentation is for informational purposes and is not an offer to solicit the purchase or sale of securities.

Cincinnati Asset Management is committed to maintaining your trust and confidence. We want you to understand how we protect your privacy when we obtain and use information about you. We also want you to understand the measures we take to safeguard that information.

We obtain nonpublic personal information about you from:

• Information we receive from you on investment advisory agreements such as your name, address and personal assets.
• Information about your investment transactions in the accounts which we manage for you.

We do not disclose any of this personal information about you to anyone without your consent except as permitted by law.

We restrict access to nonpublic personal information about you to those employees who need to know that information to provide services to you. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard nonpublic personal information.

This notice is required by federal law; however, it has always been the practice of Cincinnati Asset Management to respect and safeguard the privacy of your personal information in our possession.

“Bloomberg®” and Bloomberg US Corporate Index, Bloomberg US Corporate High Yield Index, Bloomberg US Corporate 1-5 Year Index, and Bloomberg Intermediate US Corporate High Yield Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Cincinnati Asset Management, Inc. Bloomberg is not affiliated with Cincinnati Asset Management, Inc., and Bloomberg does not approve, endorse, review, or recommend any product noted herein. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to any product noted herein.

Investors in corporate bonds generally face the following material investment risks: interest-rate risk, credit risk, currency risk, and liquidity risk.  Our investment approach constantly keeps the risk of loss in mind and mitigates the aforementioned risks as follows:

Interest-rate Risk: Fluctuations in interest rates may cause investment prices to fluctuate. For example, when interest rates rise, yields on existing bonds become less attractive, causing their market values to decline. We are interest rate agnostic, meaning we do not tactically adjust the average maturity and duration of this portfolio based on interest rate expectations.  We instead focus on assessing credit risk.  We do, however, look to minimize the impact of interest rate risk from the investment process by employing a defensive maturity structure within the portfolio.

Credit Risk: This is the risk that the issuer of a corporate bond is unable to honor its financial obligations.  Corporate bonds also carry the risk of default.  Credit risk is a greater concern for lower rated credit subsectors.  We underweight the lowest credit subsectors in this strategy.  Therefore, we expect to underperform when credit risk is driving market dynamics and outperform when credit quality is demanded.  Further, we as a manager believe that we can provide the most value in terms of assessing credit risk.  That is, employing a relative value discipline that includes a thorough analysis of downside risk versus upside potential for each issue we purchase or sell.

Currency Risk: This is the risk that the value of a security will decrease due to changes in the relative value of the U.S. dollar and a security’s underlying foreign currency.  CAM only invests in US dollar denominated issues.

Liquidity Risk: This is the risk that a particular investment cannot be sold at an advantageous time or price.  CAM avoids smaller issues with an initial issue size of less than $100 million that are generally more illiquid.