Venk Reddy was featured in a recent edition of Orion’s “The Weighing Machine” podcast. During this interesting podcast, Venk discussed what sustainable investing means, how sustainable credit differs from green bonds, and what catalysts could make sustainable investments a hit.
Click on the above image to listen to the podcast, which will open in a new window.
The Osterweis Short Duration Credit Fund’s annualized total returns over the one-year, five-year, and ten-year periods ending March 31, 2023 were -6.75%, 0.64%, and 1.78%, respectively, compared to 1.74%, 2.78%, and 3.26% for the ICE BofA 0-2 Yr Duration BB-B U.S. HY Index and -4.78%, 0.91%, and 1.36% for the Bloomberg U.S. Aggregate Bond Index over the same periods.
The Osterweis Sustainable Credit Fund’s annualized total returns over the one-year and since inception periods ending March 31, 2023 were -6.43% and -0.62%, respectively, compared to -3.86% and 1.90% for the ICE BofA Single-B U.S. HY Index and -4.78% and -0.43% for the Bloomberg U.S. Aggregate Bond Index over the same periods.
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 (866) 236-0050. An investment should not be made solely on returns. The Osterweis Short Duration Credit Fund’s gross expense ratio was 0.85% as of October 10, 2022. The Osterweis Sustainable Credit Fund’s net/gross expense ratio was 0.99%/2.22% as of October 10, 2022. The Adviser has contractually agreed to waive certain fees through October 10, 2024. The net expense ratio is applicable to investors.
The ICE BofA 0-2 Yr Duration BB-B U.S. High Yield Constrained Index (ICE BofA 0-2 Yr) contains all securities in the ICE BofA U.S. High Yield Index rated BB1 through B3 with a duration-to-worst of less than two years.
The ICE BofA Single-B U.S. High Yield Index is a subset of ICE BofA U.S. High Yield Index including all securities rated B1 through B3.
The Bloomberg U.S. Aggregate Bond Index (Agg) is an unmanaged index that is widely regarded as the standard for measuring U.S. investment grade bond market performance. The index includes reinvestment of dividends and/or interest income.
These indices do not incur expenses (unless otherwise noted) and are not available for investment.
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References to specific companies, market sectors or investment themes herein do not constitute recommendations to buy or sell any particular securities.
There can be no assurance that any specific security, strategy, or product referenced directly or indirectly in this commentary will be profitable in the future or suitable for your financial circumstances. Due to various factors, including changes to market conditions and/or applicable laws, this content may no longer reflect our current advice or opinion. You should not assume any discussion or information contained herein serves as the receipt of, or as a substitute for, personalized investment advice from Osterweis Capital Management. There is no guarantee that securities investments will result in favorable Environmental Social or Governance (ESG) outcomes.
The S&P 500 Index is an unmanaged index that is widely regarded as the standard for measuring large-cap U.S. stock market performance.
The Nasdaq is an index that consists of the equities listed on the Nasdaq stock exchange. One cannot invest directly in an index.
The Dow Jones Industrial Average is a price-weighted index historically regarded as a barometer of stock market performance. It is comprised of 30 selected blue chip stocks.
Investment grade includes bonds with high and medium credit quality assigned by a rating agency.
Yield is the income return on an investment, such as the interest or dividends received from holding a particular security.
Duration measures the sensitivity of a fixed income security’s price (or the aggregate market value of a portfolio of fixed income securities) to changes in interest rates. Fixed income securities with longer durations generally have more volatile prices than those of comparable quality with shorter durations.
A basis point is a unit that is equal to 1/100th of 1%.
Fed refers to Federal Reserve.
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.
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Complete holdings of all Osterweis mutual funds (“Funds”) are generally available ten business days following quarter end. Holdings and sector allocations may change at any time due to ongoing portfolio management. Please see the following links to the most recent quarter end data.
Earnings growth is not a measure of future performance.
Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC. [OSTE-20230120-0763]