Portfolio Overview as of 9/30/2021

Portfolio Allocation (% of Total Portfolio)

High Yield+ 73.6%
Cash & Equivalents 13.5
Equity Sensitive Convertibles 4.4
Common Stocks 3.4
Busted Convertibles 2.1
Preferred Stocks 1.4
Investment Grade 1.2
Non-Agency MBS/CMO 0.3

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)

Industrials 27.5%
Consumer Discretionary 21.5
Financials 10.2
Materials 9.8
Information Technology 9.8
Consumer Staples 8.1
Energy 5.2
Communication Services 5.0
Health Care 2.2
Real Estate 0.6

Portfolio Characteristics

Weighted Average Coupon (%) 5.09
Weighted Average Effective Duration 2.28
Weighted Average Years to Maturity 4.20
Weighted Average Yield to Maturity (%) 3.94
30 Day SEC Yield (%) 2.30
Income Distribution Yield (%) 4.07

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.

The distribution yield is based on the prior 12 months distributions divided by the net asset value of the date of the calculation.

Maturity (% of Fixed Income & Cash)

Cash & Equivalents 14.2%
<1 Year 5.4
1-3 Years 9.6
3-5 Years 31.9
>5 Years 39.0

Effective Duration (% of Fixed Income & Cash)

Cash & Equivalents 14.2%
< 1 Year 29.6
1-3 Years 21.2
3-5 Years 19.6
>5 Years 15.5

Credit Quality Exposure (% of Total Portfolio)

Government 0.0%
AAA 0.0
AA 0.0
A 0.0
BBB 1.6
BB 24.7
B 41.7
Below B 5.3
Not Rated Securities 13.3
Cash & Equivalents 13.5

Country Exposure (% of Total Portfolio)

United States (including cash & equivalents) 93.1%
Switzerland 2.0
Canada 1.9
Singapore 1.3
Great Britain 1.1
Germany 0.6
Mexico 0.1

Number of Holdings

Bonds 174
Equities 7

Top 10 Holdings (% of Total Portfolio)

Southeastern Grocers Inc 2.8
Donnelley Financial Solutions 8.250% 10/15/24 1.3
Xerox Holdings Corp 144A 5.000% 8/15/25 1.3
XPO Logistics Inc 144A 6.250% 5/1/25 1.3
Avation Capital SA 144A 9.000% 10/31/26 1.2
Michael Baker Intl 8.750% 3/1/23 1.2
Tutor Perini Corp 144A 6.875% 5/1/25 1.2
Hecla Mining Co 7.250% 2/15/28 1.2
Enova International Inc 144A 8.500% 9/1/24 1.1
Goodyear Tire & Rubber 9.500% 5/31/25 1.1
Total 13.8

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
2021 60%
2020 40
2019 46
2018 53
2017 37
2016 31
2015 58
2014 75
2013 82
2012 87
2011 115
2010 98
2009 89
2008 105
2007 100
2006 87
2005 77
2004 75
2003* 61

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

Investment Team

Carl Kaufman

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

Carl Kaufman

Carl 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.

Bradley M. Kane

Vice President & Portfolio Manager

Bradley M. Kane

Vice President & Portfolio Manager

Bradley Kane graduated from Lehigh University (B.S. in Business & Economics).

Prior to joining Osterweis Capital Management in 2013, Mr. Kane was a Portfolio Manager and Analyst at Newfleet Asset Management, where he managed both high yield and leveraged loan portfolios. Before that, he was a Vice President at GSC Partners, focusing on management of high yield and collateralized debt obligations. Earlier in his career, he managed high yield assets as a Vice President at Mitchell Hutchins Asset Management.

Mr. Kane is a principal of the firm and a Portfolio Manager for the strategic income strategy.

Craig Manchuck

Vice President & Portfolio Manager

Craig Manchuck

Vice President & Portfolio Manager

Craig Manchuck graduated from Lehigh University (B.S. in Finance) and NYU Stern School of Business (M.B.A.).

Prior to joining Osterweis Capital Management in 2017, Mr. Manchuck was a Managing Director of Fixed Income Sales at Stifel Nicolaus, where he was responsible for sales and origination of high yield bonds, leveraged loans and post reorg equities. Before Stifel, he held a similar role at Knight Capital. Prior to that, Mr. Manchuck was the Executive Director for Convertible Securities and then High Yield/Distressed Securities at UBS. He has previous experience in Convertible Securities Sales at Donaldson, Lufkin & Jenrette, SBC Warburg and Merrill Lynch.

Mr. Manchuck is a principal of the firm and a Portfolio Manager for the strategic income strategy.

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 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.