Published on March 3, 2020
The fund’s Sharpe Ratio is in the top 1% of its Core Fixed Income Lipper peer group.
San Francisco, CA – Osterweis Capital Management, an independently owned asset manager, recently celebrated the three-year anniversary of its investment grade fixed income strategy, the Osterweis Total Return Fund (OSTRX).
According to data provided by eVestment, during its inaugural three-year period (ending 12/31/2019), the fund’s Sharpe Ratio was in the top 1% of its Core Fixed Income Lipper peer group, which is comprised of 454 mutual funds. (Sharpe Ratio is a measure of risk-adjusted performance.) In addition, the fund’s volatility (i.e., standard deviation) was in the lowest 4% and its annualized returns (based on total return) were in the top 14% of the same Lipper peer group.
Regarding the rankings, Eddy Vataru, CFA, lead portfolio manager for the Osterweis Total Return Fund, said:
“It’s gratifying to deliver results that are not only in line with our strategic objectives, but that are among the best in our peer group. We are particularly excited about our Sharpe Ratio, as we feel that statistic best reflects our commitment to managing risk without sacrificing returns.”
Osterweis Co-CEO Carl Kaufman, who is also the lead portfolio manager of the firm’s flagship Strategic Income Fund (OSTIX), had the following comment:
“This is a great start for the Total Return Fund and we are thrilled with the results. We launched this strategy three years ago because we wanted to give our clients exposure to the investment grade market without taking on the risks inherent in more traditional approaches. Eddy and the team have done a fantastic job of realizing that goal. ”
About the Osterweis Total Return Fund
The Osterweis Total Return Fund is an actively managed strategy that seeks to preserve capital and attain long-term total returns through a combination of security selection, sector rotation, and interest rate management. The fund invests in investment grade corporates, agency mortgages, and both nominal and inflation-protected Treasuries, and uses futures to hedge interest rate exposure. It is managed by Eddy Vataru, CFA, John Sheehan, CFA, and Daniel Oh. For more information about the fund, click here.
Michelle A. Swager
Vice President & Director of Communications & Marketing
The Fund was rated 4 Stars against 270 funds Overall, 4 Stars against 270 funds over 3 Years in the Nontraditional Bond category based on total returns as of 3/31/21.
The Morningstar Rating™ for funds, or “star rating,” is calculated for mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period has the greatest impact because it is included in all three rating periods.
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The Sharpe Ratio represents the added value over the risk-free rate per unit of volatility risk.
Volatility is based on standard deviation, which is a statistical measure of the dispersion of returns for a given security or index.
Mutual fund investing involves risk. Principal loss is possible.
The Osterweis Total Return Fund may invest in fixed income securities which are subject to credit, default, extension, interest rate and prepayment risks. It may also make investments in derivatives that may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. The Fund may invest in 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 foreign and emerging market securities involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks may increase for emerging markets. Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used. Investments in preferred securities have an inverse relationship with changes in the prevailing interest rate. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. It may also make investments in derivatives that may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. The Fund may invest in municipal securities which are subject to the risk of default.
Past performance is not a guarantee of future results. Index performance is not illustrative of fund performance. One cannot invest directly in an index. Please call (866) 236-0050for fund performance.
Lipper rankings represent a fund’s total-return percentile rank relative to all funds that have the same Lipper category. It is based on Lipper total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Lipper Rankings (Absolute) represent a fund’s total-return rank relative to all funds that have the same Morningstar Category. The highest rank is 1 and the lowest is based on the total number of funds ranked in the category. Past performance does not guarantee future results.
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.
Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC.