Portfolio Overview as of 9/30/2022

Portfolio Allocation (% of Total Portfolio)

Category Value
High Yield+ 75.1%
Cash & Equivalents 14.6
Common Stocks 3.4
Equity Sensitive Convertibles 2.8
Busted Convertibles 2.4
Preferred Stocks 1.3
Non-Agency MBS/CMO 0.2
Investment Grade 0.1
+

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)

Category Value
Industrials 26.4%
Consumer Discretionary 22.3
Financials 14.2
Information Technology 9.9
Materials 9.4
Consumer Staples 9.0
Communication Services 3.6
Energy 2.9
Health Care 1.9
Real Estate 0.4

Portfolio Characteristics

Characteristic Value
Weighted Average Coupon (%) 5.31
Weighted Average Effective Duration 2.92
Weighted Average Years to Maturity 3.76
Weighted Average Yield to Maturity (%) 8.66
30 Day SEC Yield (%) 7.09
Income Distribution Yield (%) 4.57

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)

Category Value
Cash & Equivalents 15.4%
<1 Year 1.0
1-3 Years 21.8
3-5 Years 26.9
>5 Years 35.1

Effective Duration (% of Fixed Income & Cash)

Category Value
Cash & Equivalents 15.4%
< 1 Year 2.1
1-3 Years 37.9
3-5 Years 32.3
>5 Years 12.3

Credit Quality Exposure (% of Total Portfolio)

Category Value
Government 0.0%
AAA 0.0
AA 0.0
A 0.0
BBB 0.3
BB 30.6
B 39.0
Below B 3.2
Not Rated Securities 12.2
Cash & Equivalents 14.6

Country Exposure (% of Total Portfolio)

Category Value
United States (including cash & equivalents) 94.7%
Canada 2.3
Singapore 1.5
Switzerland 0.7
Great Britain 0.7
Mexico 0.1

Number of Holdings

Holding Value
Bonds 149
Equities 7

Top 10 Holdings (% of Total Portfolio)

Holding Value
Southeastern Grocers Inc 2.3
American Airlines Inc 144A 11.750% 7/15/25 2.0
Goodyear Tire & Rubber 9.500% 5/31/25 1.9
Avation Capital SA 144A 9.000% 10/31/26 1.5
Xerox Holdings Corp 144A 5.000% 8/15/25 1.4
US Foods Inc 144A 6.250% 4/15/25 1.4
Conduent Bus Services 144A 6.000% 11/1/29 1.4
Kehe Distributors LLC/Financial 144A 8.625% 10/15/26 1.3
Hecla Mining Co 7.250% 2/15/28 1.3
Tutor Perini Corp 144A 6.875% 5/1/25 1.2
Total 15.5

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
2022 49%
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 Kaufman 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 Growth & Income Fund.

In his management role at the firm, he is responsible primarily for investment matters and is a member of the firm’s Management Committee. He is a principal of the firm.

Mr. Kaufman graduated from Harvard University and attended New York University Graduate School of Business Administration.

Bradley Kane

Vice President & Portfolio Manager

Bradley Kane

Vice President & Portfolio Manager

Prior to joining Osterweis Capital Management in 2013, Bradley 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.

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

Craig Manchuck

Vice President & Portfolio Manager

Craig Manchuck

Vice President & Portfolio Manager

Prior to joining Osterweis Capital Management in 2017, Craig 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.

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

The Fund was rated 4 Stars against 630 funds Overall, 5 Stars against 630 funds over 3 Years, 4 Stars against 576 funds over 5 Years, 4 Stars against 395 funds over 10 Years in the High Yield Bond category based on risk-adjusted returns as of 9/30/22.

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.

© 2022 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/non-investment grade (high yield) categories and credit ratings breakdowns are based on ratings from Standard and Poor’s, which is a private independent rating service that assigns grades to bonds to represent their credit quality. The issues are evaluated based on such factors as the bond issuer’s financial strength and 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. A rating of BBB- or higher is considered investment grade and a rating below BBB- is considered non-investment grade.

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.