Portfolio Overview as of 6/30/2021

Asset Allocation (% of Total Portfolio)

Equities 71.2%
Fixed Income 27.6
Cash & Equivalents 1.2

Fixed Income Portfolio Allocation (% of Fixed Income)

High Yield+ 80.4%
Equity Sensitive Convertibles 15.5
Busted Convertibles 2.5
Non-Agency MBS/CMO 1.1
Investment Grade 0.5

Equity Sector Exposure (% of Equities)

Industrials 17.8%
Information Technology 17.3
Consumer Discretionary 11.9
Health Care 11.5
Financials 11.4
Communication Services 9.8
Real Estate 6.0
Materials 5.6
Energy 3.4
Consumer Staples 3.4
Utilities 2.0

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

MBS/CMO = Mortgage Backed Securities/Collateralized Mortgage Obligations

Portfolio Characteristics (Fixed Income)

Weighted Average Coupon (%) 5.66
Weighted Average Effective Duration 2.60
Weighted Average Years to Maturity 5.28
Weighted Average Yield to Maturity (%) 4.70
30 Day SEC Yield (Entire Fund)(%) 0.98

Click here for standardized fund performance.

Performance data quoted represent 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.

The characteristics are calculated only on the Fund’s fixed income holdings and cash. This information is believed to be reliable, but it is not guaranteed. Weighted averages are by security market value. Average yield to maturity excludes all bonds with yields at or above 50% and that are maturing within a year or have been called, all equity-sensitive convertibles whose price is at or above $135, and all bonds that are maturing within 5 calendar days. Effective Duration is from Bloomberg.

Maturity (% of Fixed Income)

<1 Year 4.8%
1-3 Years 12.0
3-5 Years 35.2
>5 Years 47.9

Effective Duration (% of Fixed Income)

< 1 Year 28.6%
1-3 Years 31.5
3-5 Years 22.5
>5 Years 17.4

Credit Quality Exposure (% of Fixed Income)

Government 0.0%
AAA 0.0
AA 0.0
A 0.0
BBB 2.0
BB 26.8
B 44.5
Below B 6.9
Not Rated Securities 19.8

Geographic Allocation (% of Total Portfolio)

United States (including cash & equivalents) 94.7%
Switzerland 2.3
France 1.5
Canada 0.9
Great Britain 0.2
Singapore 0.2
Mexico 0.2

Number of Holdings

Equities 45
Fixed Income 103

Top 10 Equity Holdings (% of Total Portfolio)

Microsoft Corp 4.6 
Alphabet Inc-CL C 4.5 
JPMorgan Chase & Co 3.0 
FedEx Corp 2.7 
Chevron Corp. 2.4 
Home Depot Inc 2.3 
Johnson & Johnson 2.2 
Union Pacific Corp 2.2 
Sysco Corp 2.2 
Waste Connections Inc 2.2 
Total 28.2

Top 10 Fixed Income Holdings (% of Total Portfolio)

Carnival Corp 5.750% 4/1/23 0.7
Donnelley Financial Solutions 8.250% 10/15/24 0.6
Tutor Perini Corp 144A 6.875% 5/1/25 0.6
Caleres Inc 6.250% 8/15/23 0.6
Consolidated Energy Fin 144A 3.869% 6/15/22 0.6
Alliance Data Systems Co 144A 7.000% 1/15/26 0.5
Oppenheimer Holdings Inc 5.500% 10/1/25 0.5
Navistar Intl Corp 144A 6.625% 11/1/25 0.5
Ford Motor Company 9.625% 4/22/30 0.4
Michael Baker Intl 8.750% 3/1/23 0.4
Total 5.5

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

The Growth & Income 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
2021 51%
2020 51
2019 47
2018 55
2017 53
2016 44
2015 43
2014 61
2013 129
2012 160
2011* 134

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

Investment Team

John S. Osterweis

Founder, Chairman & Co-Chief Investment Officer – Core Equity

John S. Osterweis

John S. Osterweis

Founder, Chairman & Co-Chief Investment Officer – Core Equity

John Osterweis graduated from Bowdoin College (B.A. in Philosophy, cum laude), and Stanford Graduate School of Business (M.B.A. with top honors in Finance).

After graduating from business school, he served as a Senior Analyst concentrating on the forest products and paper industry for several regional brokerage firms and later for E.F. Hutton & Company, Inc. In addition to his activities as an analyst, Mr. Osterweis served as Director of Research for two firms and managed equity portfolios for over ten years.

In late 1982, Mr. Osterweis decided to devote full time to his portfolio management activities, and in April of 1983 launched Osterweis Capital Management.

For a number of years Mr. Osterweis served as Director of the Lucas Museum of Narrative Art, Director on the Stanford Alumni Association Executive Board, Trustee of Bowdoin College, Director and Vice Chairman of Mt. Zion Hospital and Medical Center, and President of the Board of Directors for Summer Search Foundation. He currently serves as a Trustee of the San Francisco Ballet Association Director of the San Francisco Free Clinic, and President Emeritus of the San Francisco Ballet Endowment Foundation, as well as Trustee Emeritus of Summer Search Foundation and of Bowdoin College.

Mr. Osterweis is a member of the firm’s Management Committee, a principal of the firm and the co-lead Portfolio Manager for the core equity and flexible balanced strategies.

Carl P. Kaufman

Co-President, Co-Chief Executive Officer, Chief Investment Officer – Strategic Income & Managing Director – Fixed Income

Carl P. Kaufman

Carl P. Kaufman

Co-President, Co-Chief Executive Officer, Chief Investment Officer – Strategic Income & Managing Director – Fixed Income

Carl joined Osterweis Capital Management in 2002 after almost 24 years in various positions at Robertson Stephens and Merrill Lynch. He has managed the Osterweis Strategic Income Fund since its inception in 2002 and is also the Managing Director of Fixed Income and a lead Portfolio Manager for the Osterweis Strategic Investment Fund, a flexible balanced strategy.

In his management role at the firm, he is responsible primarily for investment matters and is a member of the firm’s Management Committee. Carl graduated from Harvard University and attended New York University Graduate School of Business Administration. He is a principal of Osterweis Capital Management.

Larry Cordisco

Co-Chief Investment Officer – Core Equity

Larry Cordisco

Co-Chief Investment Officer – Core Equity

Larry Cordisco graduated from the University of California, Santa Barbara (B.A. in Political Science), Georgetown University (M.P.P.) and Columbia Business School (M.B.A.).

Before joining Osterweis in 2019, he was a Co-Portfolio Manager of the Meridian Contrarian Fund at ArrowMark Partners/Meridian Funds. Prior to co-managing the Contrarian Fund, Larry was an equity analyst for 11 years, most recently as Vice President of Investment Research for the Meridian Contrarian Fund. Before that he was an analyst within the technology group at Banc of America Securities. He was also a business and technology consultant for Accenture in San Francisco and began his professional career in the public sector as local staff for a member of Congress.

Mr. Cordisco is a principal of the firm and co-lead Portfolio Manager for the core equity strategy and a portfolio manager for the flexible balanced strategy.

James L. Callinan

Chief Investment Officer – Emerging Growth

James L. Callinan

Chief Investment Officer – Emerging Growth

Jim Callinan was the Co-Founder & Chief Investment Officer at RS Investments. He also co-founded the RS Growth Group LLC in 1996 and managed the RS Emerging Growth Fund from 1996 until 2010. In 1999 Mr. Callinan was named Morningstar’s Domestic Stock Manager of the Year.*

He served as portfolio manager for the Putnam OTC Emerging Growth Fund from 1994 to 1996 and began his career at Putnam Investments as an equity research analyst in 1987. He joined Osterweis Capital Management in 2016 and brought with him the Emerging Growth Partners, LP, a concentrated small cap growth strategy he founded at RS in 2006.

Mr. Callinan is an Executive Committee member of the Weatherbie Capital (an Alger Company) Advisory Board and the Friends of Harvard Football Board.

He is equity owner in the firm and a Portfolio Manager for the emerging growth strategy. He is also a Portfolio Manager for the flexible balanced strategy.

Mr. Callinan graduated from Harvard College (B.A. Economics), New York University (M.S. Accounting) and Harvard Business School (M.B.A.). Mr. Callinan holds the CFA designation.

*Morningstar Managers of the Year are determined by a combination of qualitative research by Morningstar’s manager research analysts; risk-adjusted medium- to long-term performance track records; and performance in the calendar year.

Eddy Vataru

Chief Investment Officer – Total Return

Eddy Vataru

Chief Investment Officer – Total Return

Eddy Vataru graduated from California Institute of Technology (B.S. Chemistry & Economics) and from Olin Business School at Washington University in St. Louis (M.B.A.). Mr. Vataru holds the Chartered Financial Analyst designation.

Prior to joining Osterweis Capital Management in 2016, Mr. Vataru worked in senior management positions at Incapture, LLC and Citadel, LLC. Before that he spent over 11 years at BlackRock (formerly Barclays Global Investors), where his last position was as Managing Director and Head of U.S. Rates and Mortgages. While in this role, BGI worked with the U.S. Treasury in implementing its Agency MBS Purchase Program, buying mortgages for the U.S. government from 2008-2009.

Over the course of his career as a fixed income investor, Mr. Vataru has developed extensive experience in managing passive, active and hedge fund portfolios.

Mr. Vataru is a principal of the firm and the lead Portfolio Manager for the total return fixed income strategy. He is also a Portfolio Manager for the flexible balanced strategy.

The Fund was rated 4 Stars against 659 funds Overall, 4 Stars against 659 funds over 3 Years, 4 Stars against 601 funds over 5 Years, 4 Stars against 428 funds over 10 Years in the Allocation--50% to 70% Equity category based on total returns as of 6/30/21.

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.

© 2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results.

Investment grade and non-investment grade (high yield) categories are determined by credit ratings from Standard and Poor’s and Moody’s, which are private independent rating services that assign grades to bonds to 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. Standard and Poor’s ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. Moody’s ratings are expressed as letters and numbers ranging from ‘Aaa’, which is the highest grade, to ‘C’, which is the lowest grade. A Standard and Poor’s rating of BBB- or higher is considered investment grade. A Moody’s rating of Baa3 or higher is considered investment grade. A Standard and Poor’s rating below BBB- is considered non-investment grade. A Moody’s rating below Baa3 is considered non-investment grade. If an issue is rated by both agencies, the higher rating is used to determine the sector. Fund breakdown by credit ratings are based on Standard and Poor’s ratings. Not Rated Securities consists of securities not rated by either agency, including common stocks, if any.

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 Growth & Income 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. From time to time, the Fund may have concentrated positions in one or more sectors subjecting the Fund to sector emphasis risk. The Fund may also make investments in derivatives that may involve certain costs and risks such as those related to liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Leverage may cause 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 typically 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.

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.