Cincinnati Asset Management
Important regulatory, privacy, index provider, and investment risk disclosures.
Performance Disclosures
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 May 1, 1989 through December 31,
2025, Investment Grade composite for the period January 1, 1993 through
December 31, 2025 and Short Duration composite for the period June 1, 2004
through December 31, 2025. The Broad Market composite has been examined for
the period January 1, 2007 through December 31, 2025. The Short Duration –
Investment Grade composite has been examined for the period December 1, 2008
through December 31, 2025.
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.
Composite Descriptions
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.
Performance Standards
The Adviser’s investment performance data conform to the following
standards since inception:
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.
Returns are calculated monthly in U.S. dollars and include
reinvestment of dividends and interest.
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.
For the period from May 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.
Performance Notes
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.
Privacy Notice
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 required by law.
We restrict access to nonpublic personal information about you to those
employees and non-affiliated third parties who need to know that information
to effect authorized transactions or fulfill legal and regulatory obligations
in your account. 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.
Index Provider Notice
“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.
Material Risks & Potential Benefits
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
believe we can provide the most value in assessing credit risk by
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 U.S. 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.