Overview

Investment Objective

The Fund seeks to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation.

Investment Strategy

  • Deploy unconstrained, risk-aware strategy
  • Allocate assets strategically based on macroeconomic conditions
  • Select securities based on bottom-up, rigorous fundamental and credit analysis
  • Utilize disciplined and repeatable process
  • Leverage experienced portfolio management team

NAV as of 4/24/25

Price $11.11 Change $0.02

Fund Facts

Ticker OSTIX
CUSIP 742935489
Inception Date 8/30/2002
Net Assets
(as of 3/31/25)
$6.0 billion
Number of Holdings 166

Fund Documents

Document Date
Fact Sheet Mar 2025
Summary Prospectus Jun 2024

Morningstar Rating

★★★★ Ratings Information
Rated 4 Stars Overall in the High Yield Bond Category

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Investment Team

Carl Kaufman

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

Bradley Kane

Vice President & Portfolio Manager – Strategic Income

Craig Manchuck

Vice President & Portfolio Manager – Strategic Income

John Sheehan, CFA

Vice President & Portfolio Manager – Strategic Income

Performance

Performance

as of 3/31/25

Fund 1 MO QTD YTD 1 YR 3 YR 5 YR 10 YR 15 YR 20 YR INCEP
(8/30/2002)
OSTIX -0.54% 0.66% 0.66% 6.25% 5.47% 7.31% 4.68% 5.09% 5.62% 6.17%
Bloomberg U.S. Aggregate Bond Index 0.04% 2.78% 2.78% 4.88% 0.52% -0.40% 1.46% 2.44% 3.18% 3.31%
Swipe Table for Full Data

Gross expense ratio as of 3/31/24: 0.87%

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.


Rates of return for periods greater than one year are annualized.

as of 3/31/25

Fund 1 MO QTD YTD 1 YR 3 YR 5 YR 10 YR 15 YR 20 YR INCEP
(8/30/2002)
OSTIX -0.54% 0.66% 0.66% 6.25% 5.47% 7.31% 4.68% 5.09% 5.62% 6.17%
Bloomberg U.S. Aggregate Bond Index 0.04% 2.78% 2.78% 4.88% 0.52% -0.40% 1.46% 2.44% 3.18% 3.31%
Swipe Table for Full Data

Gross expense ratio as of 3/31/24: 0.87%

30 Day SEC Yield as of 3/31/25: 5.40%

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.


Rates of return for periods greater than one year are annualized.

Hypothetical Growth of $10,000 Since Inception to 3/31/2025

Growth of $10,000
Strategic Income Fund
(Dividends Reinvested)
Agg Index
(Dividends Reinvested)

Calendar Year Performance

Date OSTIX Agg
2025 YTD (as of 3/31/25) 0.66% 2.78%
2024 8.03% 1.25%
2023 12.30% 5.53%
2022 -5.94% -13.01%
2021 5.48% -1.54%
2020 9.02% 7.51%
2019 5.35% 8.72%
2018 -0.66% 0.01%
2017 5.99% 3.54%
2016 10.95% 2.65%

Portfolio Overview as of 3/31/2025

Portfolio Characteristics

Characteristic OSTIX
Weighted Average Coupon (%) 5.22
Weighted Average Effective Duration 1.54
Weighted Average Years to Maturity 2.22
Weighted Average Yield to Maturity (%) 6.42
30 Day SEC Yield (%) 5.40
Income Distribution Yield (%) 5.46

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. Average coupon and yield to maturity are calculated gross of fees.

The income distribution yield is based on the prior 12 months’ distributions divided by the net asset value of the period end date.

Portfolio Allocation % of Total Portfolio

Category Value
High Yield* 69.1%
Investment Grade 12.4%
Busted Convertibles 8.4%
Cash & Equivalents 8.2%
Equity Sensitive Convertibles 0.8%
Stocks 0.8%
Non-Agency MBS/CMO 0.2%
+

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

Sector Exposure % of Portfolio Excluding Cash & Equivalents

Category Value
Industrials 24.38%
Consumer Discretionary 23.40%
Financials 16.86%
Information Technology 8.29%
Materials 7.59%
Consumer Staples 6.20%
Energy 4.16%
Health Care 3.60%
Communication Services 3.45%
Utilities 1.71%
Real Estate 0.35%

Maturity % of Fixed Income & Cash

Category Value
Cash & Equivalents 8.2%
<1 Year 25.2%
1-3 Years 30.8%
3-5 Years 31.5%
>5 Years 4.3%

Effective Duration % of Fixed Income & Cash

Category Value
Cash & Equivalents 8.2%
< 1 Year 40.0%
1-3 Years 33.9%
3-5 Years 17.4%
>5 Years 0.5%

Credit Quality Exposure % of Total Portfolio

Category Value
Government 0.0%
AAA 0.0%
AA 0.0%
A 0.5%
BBB 12.0%
BB 35.0%
B 27.4%
Below B 3.9%
Not Rated Securities 13.1%
Cash & Equivalents 8.2%

Country Exposure % of Total Portfolio

Category Value
United States (including cash & equivalents) 90.8%
United Kingdom 2.0%
Ireland 1.9%
Canada 1.8%
Switzerland 0.9%
Australia 0.9%
Israel 0.8%
Japan 0.5%
France 0.3%

Top 10 Holdings % of Portfolio Excluding Cash & Equivalents

Holding Value
Lyft Inc 1.500% 5/15/25 1.4%
American Airlines Inc/AAdvantage Loyalty IP Ltd 144A 5.500% 4/20/26 1.2%
Conduent Business Services LLC / Conduent State & Local Solutions Inc 144A 6.000% 11/1/29 1.2%
OneMain Finance Corp 7.125% 3/15/26 1.2%
United Natural Foods Inc 144A 6.750% 10/15/28 1.1%
Airbnb Inc 0.000% 3/15/26 1.1%
Wells Fargo & Co 2.188% 4/30/26 1.1%
Unisys Corp 144A 6.875% 11/1/27 1.1%
Cable One Inc 0.000% 3/15/26 1.1%
Travel + Leisure Co 6.600% 10/1/25 1.1%
Total 11.6%

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.

Fiscal Year Turnover

Year Ended
March 31
Turnover
2024 24%
2023 10%
2022 49%
2021 60%
2020 40%
2019 46%
2018 53%
2017 37%
2016 31%
2015 58%
*

Not a full year, only covers 8/30/02-3/31/03

Fees & Distributions

Distribution Schedule

The Osterweis Strategic Income Fund distributes income monthly and capital gains once a year in December. (Effective October 2024, the fund is distributing income monthly, and the December income and capital gains distribution date was updated.)

Record Date Ex./Pay and Reinvest Date
January Income Distribution 1/28/25 1/29/25
February Income Distribution 2/25/25 2/26/25
March Income Distribution 3/26/25 3/27/25
April Income Distribution 4/25/25 4/28/25
May Income Distribution 5/27/25 5/28/25
June Income Distribution 6/25/25 6/26/25
July Income Distribution 7/25/25 7/28/25
August Income Distribution 8/26/25 8/27/25
September Income Distribution 9/25/25 9/26/25
October Income Distribution 10/28/25 10/29/25
November Income Distribution 11/24/25 11/25/25
December Income & Cap. Gains Distribution 12/24/25 12/26/25

Recent Distribution History

EX./PAY AND REINVEST DATE ORDINARY INCOME SHORT-TERM CAP. GAINS LONG-TERM CAP. GAINS TOTAL DISTRIBUTION REINVEST NAV
3/27/25 $0.04952 $0.00000 $0.00000 $0.04952 11.15
2/26/25 $0.04315 $0.00000 $0.00000 $0.04315 11.23
1/29/25 $0.06126 $0.00000 $0.00000 $0.06126 11.24
12/27/24 $0.03939 $0.00000 $0.00000 $0.03939 11.20
11/26/24 $0.04350 $0.00000 $0.00000 $0.04350 11.20
10/29/24 $0.07315 $0.00000 $0.00000 $0.07315 11.16
9/16/24 $0.14689 $0.00000 $0.00000 $0.14689 11.16
6/17/24 $0.15119 $0.00000 $0.00000 $0.15119 11.03
3/15/24 $0.13498 $0.00000 $0.00000 $0.13498 10.98
12/29/23 $0.01841 $0.00000 $0.00000 $0.01841 10.94
12/15/23 $0.15307 $0.00000 $0.00000 $0.15307 10.85
9/15/23 $0.14175 $0.00000 $0.00000 $0.14175 10.63
6/15/23 $0.18426 $0.00000 $0.00000 $0.18426 10.54
3/15/23 $0.12846 $0.00000 $0.00000 $0.12846 10.34
12/15/22 $0.13426 $0.00000 $0.00000 $0.13426 10.41
9/15/22 $0.12346 $0.00000 $0.00000 $0.12346 10.33
6/15/22 $0.12350 $0.00000 $0.00000 $0.12350 10.39
3/16/22 $0.10589 $0.00000 $0.00000 $0.10589 11.06
12/15/21 $0.10638 $0.00000 $0.00000 $0.10638 11.43
9/15/21 $0.13701 $0.00000 $0.00000 $0.13701 11.58
Swipe Table for Full Data

Literature

The Fund was rated 4 Stars against 586 funds Overall, 5 Stars against 586 funds over 3 Years, 4 Stars against 537 funds over 5 Years, 4 Stars against 423 funds over 10 Years in the High Yield Bond category based on risk-adjusted returns as of 3/31/25.

Where applicable, charts illustrating the performance of a hypothetical $10,000 investment made at a Fund’s inception assume the reinvestment of dividends and capital gains, but do not reflect the effect of any applicable sales charge or redemption fees. Such charts do not imply any future performance.

The Bloomberg U.S. Aggregate Bond Index (Agg) is widely regarded as the standard for measuring U.S. investment grade bond market performance. This index does not incur expenses and is not available for investment. The index includes reinvestment of dividends and/or interest income.

Source for any Bloomberg index is Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg owns all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

Certain portfolio data may be available as of month-end. To make a request, please email us. Top ten holdings exclude cash and equivalents.

Past performance does not guarantee future results.

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.


© 2025 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.

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 Income 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. 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. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Small- and mid-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. 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. The Fund may invest in municipal securities which are subject to the risk of default.

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.