Unexpected tremors in the banking system roiled markets during the first quarter, further complicating the economic outlook. The good news is that the recent volatility has created a buying opportunity, with many bonds in our market trading at historically attractive valuations.
Portfolio Overview as of 6/30/2023
Portfolio Allocation (% of Total Portfolio)
|Cash & Equivalents||25.4|
Sector Exposure (% of Portfolio excluding Cash)
|Weighted Average Coupon (%)||5.64|
|Weighted Average Effective Duration||1.41|
|Yield to Worst (%)||8.76|
|30 Day SEC Yield (%)||13.46|
|Income Distribution Yield (%)||8.42|
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.
The income distribution yield is based on the prior 12 month’s distributions divided by the net asset value of the date of the calculation.
Average Life reflects the shorter of Average Life or Years to Workout.
Credit Quality Exposure (% of Total Portfolio)
|Cash & Equivalents||25.4|
|Not Rated Securities||9.7|
Secured credits account for 29% of portfolio holdings.
Number of Holdings
Top 10 Holdings (% of Total Portfolio)
|Cimpress PLC 7.000% 6/15/26||9.2|
|Getty Images Inc 144A 9.750% 3/1/27||7.7|
|Bread Financial Holdings Inc 144A 7.000% 1/15/26||6.8|
|Arrow Bidco LLC 144A 9.500% 3/15/24||6.1|
|American Greetings Corp 144A 8.750% 4/15/25||5.5|
|Michaels Cos Inc/The 144A 5.250% 5/1/28||5.5|
|Brundage-Bone Concrete 144A 6.000% 2/1/26||4.7|
|Millennium Escrow Corp 144A 6.625% 8/1/26||4.5|
|Magenta Buyer LLC 10.030% 7/27/28||3.7|
|Patrick Industries Inc 144A 7.500% 10/15/27||3.6|
Complete holdings are generally available ten business days following quarter end.
The Osterweis Strategic 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.
Certain portfolio data may be available as of month-end. To make a request, please email us.
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 the literature page. 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 Short Duration Credit 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. The Fund may invest more than 5% of its total assets in the securities of one or more issuers. Fundamental investing that integrates sustainability factors will entail deviations from the benchmark, potentially without resulting in favorable Environmental, Social, or Governance (ESG) outcomes.
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.