Osterweis Capital Management

Strategic Investment Fund

Portfolio Overview (as of 3/31/2016)

Asset Allocation (% of Total Portfolio)

Equities 49.2%
Fixed Income 44.1
Cash & Equivalents 6.7

Equity Sector Exposure (% of Equities)

Health Care 25.0%
Consumer Discretionary 16.5
Industrials 12.1
Materials 11.4
Energy 8.1
Utilities 8.0
Information Technology 7.4
Financials 6.9
Consumer Staples 4.6

Fixed Income Portfolio Allocation (% of Fixed Income)

High Yield 95.5%
Busted Convertibles 2.7
Equity Sensitive Convertibles 1.8

Securities not included in the high yield category (e.g., convertible bonds, floating rate notes, preferred stocks) may also be rated below investment grade.

Portfolio Characteristics (Fixed Income)

Weighted Average Coupon 7.37%
Weighted Average Effective Duration 2.29
Weighted Average Years to Maturity 3.52 yrs.
Weighted Average Yield to Maturity 9.32%
30 Day SEC Yield (Entire Fund) 3.49%

Click here for standardized fund performance.

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by calling shareholder services toll free at (866) 236-0050.

Portfolio characteristics are generally updated within 30 days after quarter end. The characteristics are calculated only on the Fund’s fixed income holdings. This information is believed to be reliable, but it is not guaranteed. Weighted averages are by security market value. Effective Duration is from Bloomberg.

Maturity (% of Fixed Income)

< 1 Year 6.5%
1-3 Years 39.2
3-5 Years 34.2
> 5 Years 20.1

Effective Duration (% of Fixed Income)

<1 20.8%
1-3 49.2
3-5 22.4
> 5 7.6

Credit Quality Exposure (% of Fixed Income)

Government 0.0%
AAA 0.0
AA 0.0
A 0.0
BBB 4.2
BB 19.6
B 55.1
Below B 12.5
Not Rated 8.6

Geographic Allocation (% of Total Portfolio)

United States (including cash) 82.4%
Great Britain 7.2
Canada 2.7
Ireland 2.5
Switzerland 1.6
Germany 1.4
Australia 1.0
Luxembourg 0.9
Singapore 0.2
Cayman Islands 0.1

Number of Holdings

Equities 32
Fixed Income 90

Top 10 Equity Holdings (% of Total Portfolio)

Charter Communication-A 3.06 
Alphabet Inc. 2.59 
Crown Holdings Inc. 2.46 
American Water Works Co. Inc. 2.45 
Owens-Illinois Inc. 2.29 
GlaxoSmithKline - Plc-ADR 2.28 
Diageo Plc-ADR 2.26 
Cinemark Holdings Inc. 2.22 
Allergan Plc 2.09 
Air Lease Corp. 2.06 

Top 10 Fixed Income Holdings (% of Total Portfolio)

Boyd Gaming Corp. 9.00% 1.17
Oppenheimer Holdings Inc. 8.75% 0.96
Rite Aid Corp. 9.25% 0.95
Transfield Services Ltd. 144A 8.375% 0.95
Hertz Corp. 7.50% 0.95
US Foods Inc. 8.50% 0.95
XPO Logistics Inc. 144A 7.875% 0.94
Cit Group Inc. 5.00% 0.94
Tops Holding Ii Corp. 8.75% 0.93
T-Mobile USA Inc. 6.464% 0.93

Complete Holdings (as of 3/31/2016)

Complete holdings are generally available ten business days following quarter end.

The Strategic Investment Fund’s holdings and sector allocations may change at any time due to ongoing portfolio management. References to specific investments should not be construed as a recommendation to buy or sell the securities by the Fund or Osterweis Capital Management.

Fiscal Year Turnover

Year Ended
March 31
2015 43%
2014 61
2013 129
2012 160
2011* 134

Not a full year, only covers 8/31/10-3/31/11

Credit Quality weights by rating were derived from the most recent data available as determined by Standard and Poor’s. Grades are assigned to bonds by private independent rating services such as Standard & Poor’s and these grades represent their credit quality. The issues are evaluated based on such factors as the bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. In situations where Standard & Poor’s has not issued a formal rating, the security is classified as not rated (NR).

Duration measures the sensitivity of a bond’s price (or the aggregate market value of a portfolio of bonds) to changes in interest rates. Bonds with longer durations generally have more volatile prices than bonds of comparable quality with shorter durations. Effective Duration is a duration calculation for bonds with embedded options and takes into account that expected cash flows will fluctuate as interest rates change. Effective duration is calculated only on the Fund’s fixed income holdings and cash.

The Osterweis Funds are available by prospectus only. The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the Funds. You may obtain a summary or statutory prospectus by calling toll free at (866) 236-0050, or by visiting www.osterweis.com/statpro. Please read the prospectus carefully before investing to ensure the Fund is appropriate for your goals and risk tolerance.

Mutual fund investing involves risk. Principal loss is possible.

The Osterweis Strategic Investment Fund may invest in small- and mid-capitalization companies, which tend to have limited liquidity and greater price volatility than large-capitalization companies. The Fund may invest in foreign and emerging market securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks may increase for emerging markets. The Fund may invest in Master Limited Partnerships, which involve risk related to energy prices, demand and changes in tax code. The Fund may invest in debt securities that are un-rated or rated below investment grade. Lower-rated securities may present an increased possibility of default, price volatility or illiquidity compared to higher-rated securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Higher turnover rates may result in increased transaction costs, which could impact performance. From time to time, the Fund may have concentrated positions in one or more sectors subjecting the Fund to sector emphasis risk.

While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for more information.

Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC.