Fund Evaluator:

Aristotle Floating Rate Income I-2 Overview

Aristotle Floating Rate Income I-2 (PLFDX) is an actively managed Taxable Bond Bank Loan fund. Aristotle Funds launched the fund in 2012.

The investment seeks a high level of current income. The fund invests principally in income producing floating rate loans and floating rate debt securities. Under normal circumstances, it invests at least 80% of its assets in floating rate loans and floating rate debt securities. The fund may invest up to 25% of its assets in U.S. dollar denominated foreign investments, principally in developed markets. It may invest up to 20% of its assets in other types of debt instruments or securities including non-investment grade (high yield/high risk, sometimes called "junk bonds") debt instruments.

About Aristotle Floating Rate Income I-2 (PLFDX)

There are 3 members of the management team with an average tenure of 5.89 years: C. Robert Boyd (2025), Michael Marzouk (2011), Tommy Zhang (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Morningstar LSTA US LL TR USD index with a weighting of 100%. Aristotle Floating Rate Income I-2 has 135 securities in its portfolio. The top 10 holdings constitute 25.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Aristotle Floating Rate Income I-2 is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Aristotle Floating Rate Income I-2 has 2.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 88.0% (85.2% domestic bond, 2.9% foreign bond and 0.0% convertible bond). Aristotle Floating Rate Income I-2 has 12.0% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is above the $343 million average for the Bank Loan category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PLFDX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Aristotle Floating Rate Income I-2 expense ratio is high compared to funds in the Bank Loan category. Aristotle Floating Rate Income I-2 has an expense ratio of 0.80%, which is 24% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Aristotle Floating Rate Income I-2 has a portfolio turnover rate of 170%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 64% for the Bank Loan category.

Recently, in the month of June 2026, Aristotle Floating Rate Income I-2 returned -0.0%, which earned it a grade of D, as the Bank Loan category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Aristotle Floating Rate Income I-2 has a trailing yield of 6.93%, which is above the 6.80% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Aristotle Floating Rate Income I-2 Grades

Year to date, the fund has returned 1.3%, 0.1 percentage points worse than the category, which translates into a grade of C. The fund has returned 5.0% over the past year (grade of B), 7.6% over the past three years (grade of B) and 6.0% per year over the past five years (grade of A) and 5.2% per year over the past 10 years (grade of A).

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