SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Exact name of registrant as specified in charter)
(Address of principal executive offices) (Zip code)
2020 E. Financial Way, Ste. 100
Glendora, CA 91741
(Name and address of agent for service)
(a) |
Annual Report | |||
For the Year Ended March 31, 2021 | |||
Osterweis Fund | |
Osterweis Strategic Income Fund | |
Osterweis Strategic Investment Fund | |
Osterweis Emerging Opportunity Fund | |
Osterweis Total Return Fund |
Letter from the Chief Investment Officers | 2 | |
Manager Reviews, Fund Overviews and Schedules of Investments | ||
Osterweis Fund | ||
Portfolio Managers’ Review | 4 | |
Fund Overview | 5 | |
Schedule of Investments | 6 | |
Osterweis Strategic Income Fund | ||
Portfolio Managers’ Review | 8 | |
Fund Overview | 9 | |
Schedule of Investments | 10 | |
Osterweis Strategic Investment Fund | ||
Portfolio Managers’ Review | 16 | |
Fund Overview | 18 | |
Schedule of Investments | 19 | |
Osterweis Emerging Opportunity Fund | ||
Portfolio Managers’ Review | 24 | |
Fund Overview | 25 | |
Schedule of Investments | 26 | |
Osterweis Total Return Fund | ||
Portfolio Managers’ Review | 28 | |
Fund Overview | 30 | |
Schedule of Investments | 31 | |
Financial Statements | ||
Statements of Assets and Liabilities | 37 | |
Statements of Operations | 38 | |
Statements of Changes in Net Assets | ||
Osterweis Fund | 39 | |
Osterweis Strategic Income Fund | 40 | |
Osterweis Strategic Investment Fund | 41 | |
Osterweis Emerging Opportunity Fund | 42 | |
Osterweis Total Return Fund | 43 | |
Financial Highlights | ||
Osterweis Fund | 44 | |
Osterweis Strategic Income Fund | 45 | |
Osterweis Strategic Investment Fund | 46 | |
Osterweis Emerging Opportunity Fund | 47 | |
Osterweis Total Return Fund | 48 | |
Notes to Financial Statements | 49 | |
Report of Independent Registered Public Accounting Firm | 61 | |
Expense Examples | 62 | |
Trustees and Executive Officers | 63 | |
Additional Information | 67 | |
Privacy Notice | 69 |
Jim Callinan, CFA | John Osterweis | Larry Cordisco | Carl Kaufman | Eddy Vataru, CFA | |
CIO – | Co-CIO – | Co-CIO – | CIO – | CIO – | |
Emerging Growth | Core Equity | Core Equity | Strategic Income | Total Return |
Since Inception | ||||||
1 Yr. | 3 Yr. | 5 Yr. | 10 Yr. | 15 Yr. | (October 1, 1993) | |
Osterweis Fund | 53.48% | 17.87% | 14.07% | 10.08% | 8.07% | 10.88% |
S&P 500 Index | 56.35 | 16.78 | 16.29 | 13.91 | 10.02 | 10.28 |
1 | As of most recent Prospectus dated June 30, 2020. Please see the Fund’s Financial Highlights in this report for the most recent expense ratio. The Adviser has contractually agreed to waive certain fees through June 30, 2021. The net expense ratio is applicable to investors. |
Top Ten Equity Holdings (% of Net Assets) | |||||
Alphabet, Inc. – Class C | 6.6 | % | |||
Microsoft Corp. | 5.3 | ||||
JPMorgan Chase & Co. | 4.3 | ||||
FedEx Corp. | 4.0 | ||||
Charter Communications, Inc. – Class A | 3.5 | ||||
Danaher Corp. | 3.2 | ||||
Union Pacific Corp. | 3.1 | ||||
Sysco Corp. | 3.1 | ||||
Applied Materials, Inc. | 2.9 | ||||
Visa, Inc. – Class A | 2.8 | ||||
Total | 38.8 | % |
Shares | Value | ||||||
Common Stocks: 97.1% | |||||||
Aerospace & Defense: 1.6% | |||||||
80,580 | Safran SA – ADR | $ | 2,742,943 | ||||
Air Freight & Logistics: 4.0% | |||||||
23,960 | FedEx Corp. | 6,805,598 | |||||
Auto Components: 2.3% | |||||||
28,170 | Aptiv PLC – ADR 1 | 3,884,643 | |||||
Banks: 6.7% | |||||||
24,945 | First Republic Bank | 4,159,579 | |||||
47,395 | JPMorgan Chase & Co. | 7,214,941 | |||||
11,374,520 | |||||||
Chemicals: 3.7% | |||||||
15,455 | Air Products & Chemicals, Inc. | 4,348,110 | |||||
13,740 | International Flavors & | ||||||
Fragrances, Inc. | 1,918,241 | ||||||
6,266,351 | |||||||
Commercial Services & Supplies: 2.6% | |||||||
41,135 | Waste Connections, Inc. | 4,441,757 | |||||
Diversified Consumer Services: 1.9% | |||||||
18,805 | Bright Horizons Family | ||||||
Solutions, Inc. 1 | 3,224,117 | ||||||
Electric Utilities: 1.8% | |||||||
40,102 | NextEra Energy, Inc. | 3,032,112 | |||||
Equity Real Estate Investment Trusts – REITS: 4.4% | |||||||
19,795 | Crown Castle International Corp. | 3,407,313 | |||||
25,660 | PS Business Parks, Inc. | 3,966,523 | |||||
7,373,836 | |||||||
Food & Staples Retailing: 3.1% | |||||||
65,370 | Sysco Corp. | 5,147,234 | |||||
Health Care Equipment & Supplies: 5.7% | |||||||
24,270 | Danaher Corp. | 5,462,692 | |||||
9,990 | Teleflex, Inc. | 4,150,445 | |||||
9,613,137 | |||||||
Insurance: 2.2% | |||||||
38,825 | The Progressive Corp. | 3,712,058 | |||||
Interactive Media & Services: 6.6% | |||||||
5,374 | Alphabet, Inc. – Class C 1 | 11,116,818 | |||||
Internet & Direct Marketing Retail: 3.8% | |||||||
12,145 | Alibaba Group Holding Ltd. – ADR 1 | 2,753,636 | |||||
1,205 | Amazon.com, Inc. 1 | 3,728,366 | |||||
6,482,002 | |||||||
IT Services: 3.9% | |||||||
37,125 | LiveRamp Holdings, Inc. 1 | 1,926,045 | |||||
22,335 | Visa, Inc. – Class A | 4,728,990 | |||||
6,655,035 | |||||||
Media: 3.5% | |||||||
9,472 | Charter Communications, | ||||||
Inc. – Class A 1 | 5,844,413 | ||||||
Multiline Retail: 2.5% | |||||||
20,845 | Dollar General Corp. | 4,223,614 | |||||
Oil, Gas & Consumable Fuels: 1.7% | |||||||
17,785 | Pioneer Natural Resources Co. | 2,824,614 | |||||
Pharmaceuticals: 4.0% | |||||||
18,185 | Johnson & Johnson | 2,988,704 | |||||
45,550 | Nektar Therapeutics 1 | 911,000 | |||||
33,610 | Novartis AG – ADR | 2,872,983 | |||||
6,772,687 | |||||||
Road & Rail: 5.6% | |||||||
17,895 | Old Dominion Freight Line, Inc. | 4,302,137 | |||||
23,530 | Union Pacific Corp. | 5,186,247 | |||||
9,488,384 | |||||||
Semiconductors & Semiconductor Equipment: 9.5% | |||||||
51,170 | Advanced Micro Devices, Inc. 1 | 4,016,845 | |||||
36,859 | Applied Materials, Inc. | 4,924,362 | |||||
43,370 | Micron Technology, Inc. 1 | 3,825,668 | |||||
9,350 | Monolithic Power Systems, Inc. | 3,302,514 | |||||
16,069,389 | |||||||
Software: 9.9% | |||||||
37,795 | Microsoft Corp. | 8,910,927 | |||||
13,855 | Synopsys, Inc. 1 | 3,432,992 | |||||
32,635 | Zendesk, Inc. 1 | 4,328,054 | |||||
16,671,973 | |||||||
Specialty Retail: 4.6% | |||||||
11,250 | The Home Depot, Inc. | 3,434,062 | |||||
35,780 | Ross Stores, Inc. | 4,290,380 | |||||
7,724,442 | |||||||
Wireless Telecommunication Services: 1.5% | |||||||
20,195 | T-Mobile US, Inc. 1 | 2,530,232 | |||||
Total Common Stocks | |||||||
(Cost $92,509,912) | 164,021,909 |
Shares | Value | ||||||
Short-Term Investments: 2.7% | |||||||
Money Market Funds: 2.7% | |||||||
4,565,972 | Federated Hermes U.S. | ||||||
Treasury Cash Reserves – | |||||||
Class I , 0.010% 2 | $ | 4,565,972 | |||||
Total Money Market Funds | |||||||
(Cost $4,565,972) | 4,565,972 | ||||||
Total Short-Term Investments | |||||||
(Cost $4,565,972) | 4,565,972 | ||||||
Total Investments in Securities: 99.8% | |||||||
(Cost $97,075,884) | 168,587,881 | ||||||
Other Assets in Excess of Liabilities: 0.2% | 324,267 | ||||||
Total Net Assets: 100.0% | $ | 168,912,148 |
1 | Non-income producing security. |
2 | Annualized seven-day effective yield as of March 31, 2021. |
1 | The Bloomberg Barclays U.S. Universal Bond Index is used in the above fixed income analysis as its investment universe more closely resembles that of the Fund’s fixed income holdings. |
Since Inception | ||||||
1 Yr. | 3 Yr. | 5 Yr. | 10 Yr. | 15 Yr. | (August 30, 2002) | |
Osterweis Strategic Income Fund | 18.73% | 4.78% | 6.19% | 4.81% | 5.84% | 6.50% |
Bloomberg Barclays U.S. Aggregate Bond Index | 0.71 | 4.65 | 3.10 | 3.44 | 4.29 | 4.19 |
1 | As of most recent Prospectus dated June 30, 2020. Please see the Fund’s Financial Highlights in this report for the most recent expense ratio. |
Top Holdings (% of Net Assets) | |||||
Consolidated Energy Finance SA, 3.934% | 2.0 | % | |||
Southeastern Grocers, Inc. | 1.9 | ||||
Avation Capital SA, 8.250% | 1.4 | ||||
Caleres, Inc., 6.250% | 1.4 | ||||
Xerox Holdings Corp., 5.000% | 1.4 | ||||
Donnelley Financial Solutions, Inc., 8.250% | 1.4 | ||||
American Airlines 2012-2 Class C | |||||
Pass Through Trust, 4.700% | 1.3 | ||||
XPO Logistics, Inc., 6.250% | 1.3 | ||||
Michael Baker International LLC, 8.750% | 1.3 | ||||
Navistar International Corp., 6.625% | 1.3 | ||||
Total | 14.7 | % |
Shares | Value | ||||||
Common Stocks: 2.6% | |||||||
Food & Staples Retailing: 2.0% | |||||||
7,949,377 | Southeastern Grocers, Inc. 1,2 | $ | 101,354,557 | ||||
61,582,000 | Tops Holding, Litigation | ||||||
Trust Proceeds 1,2,6 | 46,248 | ||||||
101,400,805 | |||||||
Metals & Mining: 0.6% | |||||||
823 | Real Alloy Holding, Inc. 1,2 | 32,902,800 | |||||
Total Common Stocks | |||||||
(Cost $146,373,981) | 134,303,605 | ||||||
Convertible Preferred Stocks: 1.4% | |||||||
Media: 0.3% | |||||||
196,000 | ViacomCBS, Inc., 5.750% | 13,161,400 | |||||
Road & Rail: 1.1% | |||||||
490,000 | Daseke, Inc., 7.625% | 59,488,936 | |||||
Total Convertible Preferred Stocks | |||||||
(Cost $60,662,000) | 72,650,336 | ||||||
Principal | |||||||
Amount | |||||||
Bonds: 87.4% | |||||||
Corporate Bonds: 78.8% | |||||||
Air Freight & Logistics: 1.4% | |||||||
Cargo Aircraft Management, Inc. | |||||||
$ | 4,590,000 | 4.750%, 02/01/2028 | 4,742,044 | ||||
XPO Logistics, Inc. | |||||||
64,500,000 | 6.250%, 05/01/2025 | 69,179,475 | |||||
73,921,519 | |||||||
Airlines: 2.1% | |||||||
American Airlines 2012-2 | |||||||
Class C Pass Through Trust | |||||||
69,540,000 | 4.700%, 06/03/2021 | 69,469,973 | |||||
United Airlines Holdings, Inc. | |||||||
26,346,000 | 4.250%, 10/01/2022 | 26,839,988 | |||||
12,896,000 | 5.000%, 02/01/2024 | 13,113,620 | |||||
109,423,581 | |||||||
Auto Components: 3.3% | |||||||
American Axle & Manufacturing, Inc. | |||||||
4,900,000 | 6.250%, 04/01/2025 | 5,053,125 | |||||
16,600,000 | 6.250%, 03/15/2026 | 17,023,300 | |||||
40,000,000 | 6.875%, 07/01/2028 | 42,012,000 | |||||
The Goodyear Tire & Rubber Co. | |||||||
25,485,000 | 5.125%, 11/15/2023 | 25,604,779 | |||||
53,605,000 | 9.500%, 05/31/2025 | 60,171,613 | |||||
Real Hero Merger Sub 2, Inc. | |||||||
23,500,000 | 6.250%, 02/01/2029 | 24,293,125 | |||||
174,157,942 | |||||||
Automobiles: 1.9% | |||||||
Ford Motor Co. | |||||||
9,000,000 | 9.625%, 04/22/2030 | 12,574,305 | |||||
Ford Motor Credit Co. LLC | |||||||
23,405,000 | 1.048% (3 Month LIBOR | ||||||
USD + 0.810%), 04/05/2021 3 | 23,405,000 | ||||||
7,925,000 | 3.377% (3 Month LIBOR | ||||||
USD + 3.140%), 01/07/2022 3 | 8,020,331 | ||||||
12,051,000 | 4.250%, 09/20/2022 | 12,448,442 | |||||
10,000,000 | 4.687%, 06/09/2025 | 10,632,000 | |||||
Volkswagen Group of | |||||||
America Finance LLC | |||||||
34,000,000 | 1.141% (3 Month LIBOR | ||||||
USD + 0.940%), 11/12/2021 3 | 34,178,263 | ||||||
101,258,341 | |||||||
Banks: 0.5% | |||||||
CIT Group, Inc. | |||||||
26,720,000 | 5.000%, 08/15/2022 | 28,161,277 | |||||
Beverages: 0.9% | |||||||
Primo Water Holdings, Inc. | |||||||
47,745,000 | 5.500%, 04/01/2025 3 | 49,131,992 | |||||
Building Products: 3.0% | |||||||
Builders FirstSource, Inc. | |||||||
13,059,000 | 6.750%, 06/01/2027 | 14,022,101 | |||||
Griffon Corp. | |||||||
45,000,000 | 5.750%, 03/01/2028 | 48,015,000 | |||||
Patrick Industries, Inc. | |||||||
39,500,000 | 7.500%, 10/15/2027 | 43,203,125 | |||||
PGT Innovations, Inc. | |||||||
48,405,000 | 6.750%, 08/01/2026 | 51,551,325 | |||||
156,791,551 | |||||||
Capital Markets: 2.3% | |||||||
Donnelley Financial Solutions, Inc. | |||||||
67,379,000 | 8.250%, 10/15/2024 | 70,411,055 | |||||
Oppenheimer Holdings, Inc. | |||||||
49,250,000 | 5.500%, 10/01/2025 | 50,973,750 | |||||
121,384,805 | |||||||
Chemicals: 3.9% | |||||||
Consolidated Energy Finance SA | |||||||
103,840,000 | 3.934% (3 Month LIBOR | ||||||
USD + 3.750%), 06/15/2022 3 | 102,827,380 | ||||||
34,500,000 | 6.875%, 06/15/2025 | 35,211,563 |
Principal | |||||||
Amount | Value | ||||||
Chemicals: 3.9% (Continued) | |||||||
INEOS Quattro Finance 2 PLC | |||||||
$ | 32,914,000 | 3.375%, 01/15/2026 | $ | 32,955,142 | |||
Olin Corp. | |||||||
1,750,000 | 5.500%, 08/15/2022 | 1,830,526 | |||||
6,750,000 | 9.500%, 06/01/2025 | 8,336,250 | |||||
19,296,000 | 5.625%, 08/01/2029 | 20,836,400 | |||||
201,997,261 | |||||||
Commercial Services & Supplies: 3.9% | |||||||
The Brink’s Co. | |||||||
10,000,000 | 5.500%, 07/15/2025 | 10,581,250 | |||||
GFL Environmental, Inc. | |||||||
11,100,000 | 5.125%, 12/15/2026 | 11,711,610 | |||||
19,781,000 | 8.500%, 05/01/2027 | 21,820,916 | |||||
KAR Auction Services, Inc. | |||||||
47,718,000 | 5.125%, 06/01/2025 | 48,326,405 | |||||
Pitney Bowes, Inc. | |||||||
44,500,000 | 7.250%, 03/15/2029 | 44,117,745 | |||||
Quad/Graphics, Inc. | |||||||
29,258,000 | 7.000%, 05/01/2022 | 29,008,868 | |||||
R.R. Donnelley & Sons Co. | |||||||
22,311,000 | 8.875%, 04/15/2021 | 22,478,332 | |||||
12,928,000 | 7.000%, 02/15/2022 | 13,393,602 | |||||
201,438,728 | |||||||
Communications Equipment: 0.6% | |||||||
Plantronics, Inc. | |||||||
30,270,000 | 5.500%, 05/31/2023 | 30,454,950 | |||||
Computers & Peripherals: 3.6% | |||||||
CPI CG, Inc. | |||||||
42,825,000 | 8.625%, 03/15/2026 | 44,978,669 | |||||
Dell International LLC / EMC Corp. | |||||||
15,441,000 | 5.875%, 06/15/2021 | 15,479,603 | |||||
NCR Corp. | |||||||
34,425,000 | 5.750%, 09/01/2027 | 36,490,500 | |||||
5,750,000 | 5.000%, 10/01/2028 | 5,818,281 | |||||
10,000,000 | 5.125%, 04/15/2029 | 10,132,050 | |||||
Xerox Holdings Corp. | |||||||
70,000,000 | 5.000%, 08/15/2025 | 72,800,000 | |||||
185,699,103 | |||||||
Construction & Engineering: 2.3% | |||||||
Michael Baker International LLC | |||||||
66,404,000 | 8.750%, 03/01/2023 | 67,649,075 | |||||
Tutor Perini Corp. | |||||||
48,644,000 | 6.875%, 05/01/2025 | 50,361,133 | |||||
118,010,208 | |||||||
Construction Materials: 1.1% | |||||||
Cemex SAB de CV | |||||||
4,750,000 | 7.375%, 06/05/2027 | 5,385,313 | |||||
US Concrete, Inc. | |||||||
6,567,000 | 6.375%, 06/01/2024 | 6,718,862 | |||||
42,607,000 | 5.125%, 03/01/2029 | 43,965,098 | |||||
56,069,273 | |||||||
Consumer Finance: 1.8% | |||||||
American Express Co. | |||||||
39,000,000 | 0.717% (3 Month LIBOR | ||||||
USD + 0.525%), 05/17/2021 3 | 39,008,090 | ||||||
Enova International, Inc. | |||||||
40,000,000 | 8.500%, 09/01/2024 | 41,145,800 | |||||
FirstCash, Inc. | |||||||
15,000,000 | 4.625%, 09/01/2028 | 15,395,625 | |||||
95,549,515 | |||||||
Distributors: 1.0% | |||||||
American Builders & Contractors | |||||||
Supply Co., Inc. | |||||||
47,314,000 | 5.875%, 05/15/2026 | 48,948,935 | |||||
2,468,000 | 4.000%, 01/15/2028 | 2,472,171 | |||||
51,421,106 | |||||||
Diversified Financial Services: 1.7% | |||||||
Aviation Capital Group LLC | |||||||
30,000,000 | 1.141% (3 Month LIBOR | ||||||
USD + 0.950%), 06/01/2021 3 | 30,002,325 | ||||||
14,420,000 | 0.882% (3 Month LIBOR | ||||||
USD + 0.670%), 07/30/2021 3 | 14,405,877 | ||||||
5,500,000 | 5.500%, 12/15/2024 | 6,154,317 | |||||
Burford Capital Global Finance LLC | |||||||
38,650,000 | 6.250%, 04/15/2028 | 39,664,563 | |||||
90,227,082 | |||||||
Diversified Telecommunication Services: 1.6% | |||||||
Lumen Technologies, Inc. | |||||||
57,818,000 | 6.450%, 06/15/2021 | 58,294,999 | |||||
22,925,000 | 5.800%, 03/15/2022 | 23,756,031 | |||||
82,051,030 | |||||||
Equity Real Estate Investment Trusts – REITS: 2.1% | |||||||
Diversified Healthcare Trust | |||||||
26,267,000 | 6.750%, 12/15/2021 | 26,595,338 | |||||
HAT Holdings I LLC / | |||||||
HAT Holdings II LLC | |||||||
41,500,000 | 5.250%, 07/15/2024 | 42,930,920 | |||||
4,000,000 | 6.000%, 04/15/2025 | 4,225,000 | |||||
Iron Mountain, Inc. | |||||||
20,000,000 | 4.500%, 02/15/2031 | 19,797,000 |
Principal | |||||||
Amount | Value | ||||||
Equity Real Estate Investment | |||||||
Trusts – REITS: 2.1% (Continued) | |||||||
SL Green Operating Partnership L.P. | |||||||
$ | 13,150,000 | 1.174% (3 Month LIBOR | |||||
USD + 0.980%), 08/16/2021 3 | $ | 13,150,431 | |||||
106,698,689 | |||||||
Food & Staples Retailing: 3.7% | |||||||
C&S Group Enterprises LLC | |||||||
39,500,000 | 5.000%, 12/15/2028 | 38,512,500 | |||||
KeHE Distributors LLC / | |||||||
KeHE Finance Corp. | |||||||
53,420,000 | 8.625%, 10/15/2026 | 59,555,020 | |||||
SEG Holding LLC / | |||||||
SEG Finance Corp. | |||||||
15,000,000 | 5.625%, 10/15/2028 | 15,731,250 | |||||
United Natural Foods, Inc. | |||||||
5,000,000 | 6.750%, 10/15/2028 | 5,350,000 | |||||
US Foods, Inc. | |||||||
38,949,000 | 6.250%, 04/15/2025 | 41,805,325 | |||||
29,354,000 | 4.750%, 02/15/2029 | 29,390,692 | |||||
190,344,787 | |||||||
Food Products: 0.1% | |||||||
Simmons Food, Inc. / Simmons | |||||||
5,000,000 | 4.625%, 03/01/2029 | 5,050,100 | |||||
Health Care Providers & Services: 2.5% | |||||||
AMN Healthcare, Inc. | |||||||
5,000,000 | 4.625%, 10/01/2027 | 5,121,875 | |||||
Centene Corp. | |||||||
54,965,000 | 5.375%, 06/01/2026 | 57,545,607 | |||||
21,913,000 | 5.375%, 08/15/2026 | 23,170,806 | |||||
Owens & Minor, Inc. | |||||||
36,210,000 | 4.500%, 03/31/2029 | 36,436,312 | |||||
RP Escrow Issuer LLC | |||||||
5,000,000 | 5.250%, 12/15/2025 | 5,187,500 | |||||
127,462,100 | |||||||
Hotels, Restaurants & Leisure: 2.9% | |||||||
Carnival Corp. | |||||||
4,750,000 | 11.500%, 04/01/2023 | 5,451,599 | |||||
23,616,000 | 7.625%, 03/01/2026 | 25,400,189 | |||||
9,500,000 | 5.750%, 03/01/2027 | 9,777,495 | |||||
International Game Technology PLC | |||||||
5,000,000 | 4.125%, 04/15/2026 | 5,150,400 | |||||
NCL Corp. Ltd. | |||||||
14,750,000 | 12.250%, 05/15/2024 | 17,873,312 | |||||
15,510,000 | 3.625%, 12/15/2024 | 14,666,644 | |||||
7,000,000 | 5.875%, 03/15/2026 | 7,104,230 | |||||
Six Flags Entertainment Corp. | |||||||
31,026,000 | 4.875%, 07/31/2024 | 31,375,042 | |||||
Six Flags Theme Parks, Inc. | |||||||
7,500,000 | 7.000%, 07/01/2025 | 8,130,713 | |||||
Travel + Leisure Co. | |||||||
27,111,000 | 4.250%, 03/01/2022 | 27,466,832 | |||||
152,396,456 | |||||||
Household Durables: 2.6% | |||||||
Empire Communities Corp. | |||||||
47,250,000 | 7.000%, 12/15/2025 | 49,907,812 | |||||
Installed Building Products, Inc. | |||||||
6,750,000 | 5.750%, 02/01/2028 | 7,077,780 | |||||
Mattamy Group Corp. | |||||||
24,500,000 | 5.250%, 12/15/2027 | 25,709,687 | |||||
The New Home Co., Inc. | |||||||
39,250,000 | 7.250%, 10/15/2025 | 40,730,118 | |||||
Taylor Morrison Communities, Inc. | |||||||
9,500,000 | 5.750%, 01/15/2028 | 10,494,413 | |||||
133,919,810 | |||||||
Industrial Conglomerates: 1.4% | |||||||
Icahn Enterprises L.P. / | |||||||
Icahn Enterprises Finance Corp. | |||||||
24,433,000 | 6.250%, 02/01/2022 | 24,494,083 | |||||
5,635,000 | 4.750%, 09/15/2024 | 5,860,400 | |||||
7,283,000 | 6.375%, 12/15/2025 | 7,537,905 | |||||
30,872,000 | 6.250%, 05/15/2026 | 32,410,660 | |||||
70,303,048 | |||||||
IT Services: 2.6% | |||||||
Alliance Data Systems Corp. | |||||||
15,832,000 | 4.750%, 12/15/2024 | 16,277,275 | |||||
49,250,000 | 7.000%, 01/15/2026 | 52,799,694 | |||||
KBR, Inc. | |||||||
20,000,000 | 4.750%, 09/30/2028 | 20,340,000 | |||||
Unisys Corp. | |||||||
43,250,000 | 6.875%, 11/01/2027 | 47,466,875 | |||||
136,883,844 | |||||||
Machinery: 4.0% | |||||||
Flowserve Corp. | |||||||
25,855,000 | 4.000%, 11/15/2023 | 27,302,304 | |||||
Hillenbrand, Inc. | |||||||
4,000,000 | 5.750%, 06/15/2025 | 4,277,500 | |||||
Meritor, Inc. | |||||||
13,848,000 | 6.250%, 02/15/2024 | 14,127,729 | |||||
Navistar International Corp. | |||||||
64,250,000 | 6.625%, 11/01/2025 | 66,741,615 |
Principal | |||||||
Amount | Value | ||||||
Machinery: 4.0% (Continued) | |||||||
Wabash National Corp. | |||||||
$ | 38,641,000 | 5.500%, 10/01/2025 | $ | 39,651,269 | |||
Welbilt, Inc. | |||||||
55,002,000 | 9.500%, 02/15/2024 | 56,755,189 | |||||
208,855,606 | |||||||
Media: 1.1% | |||||||
Meredith Corp. | |||||||
25,000,000 | 6.500%, 07/01/2025 | 26,900,125 | |||||
30,630,000 | 6.875%, 02/01/2026 | 31,453,181 | |||||
58,353,306 | |||||||
Metals & Mining: 3.4% | |||||||
Century Aluminum Co. | |||||||
50,000,000 | 12.000%, 07/01/2025 | 53,875,000 | |||||
Coeur Mining, Inc. | |||||||
56,000,000 | 5.125%, 02/15/2029 | 53,603,200 | |||||
Hecla Mining Co. | |||||||
49,370,000 | 7.250%, 02/15/2028 | 53,011,037 | |||||
Real Alloy Holding, Inc. | |||||||
14,343,157 | 10.194%, (3 Month LIBOR | ||||||
USD + 10.000%) Cash or | |||||||
12.194% (3 Month LIBOR | |||||||
USD + 12.000%) PIK, | |||||||
05/31/2023 1,3 | 14,343,157 | ||||||
174,832,394 | |||||||
Mortgage Real Estate | |||||||
Investment Trusts – REITS: 0.4% | |||||||
Starwood Property Trust, Inc. | |||||||
20,900,000 | 5.000%, 12/15/2021 | 21,226,562 | |||||
Oil, Gas & Consumable Fuels: 3.6% | |||||||
Aker BP ASA | |||||||
31,475,000 | 4.750%, 06/15/2024 | 32,297,357 | |||||
Calumet Specialty Products Partners | |||||||
L.P. / Calumet Finance Corp. | |||||||
28,500,000 | 11.000%, 04/15/2025 3 | 29,995,965 | |||||
Genesis Energy L.P. / | |||||||
Genesis Energy Finance Corp. | |||||||
51,550,000 | 7.750%, 02/01/2028 | 51,629,902 | |||||
Global Partners L.P. / | |||||||
GLP Finance Corp. | |||||||
30,750,000 | 7.000%, 08/01/2027 | 32,498,906 | |||||
NGL Energy Operating LLC / | |||||||
NGL Energy Finance Corp. | |||||||
7,500,000 | 7.500%, 02/01/2026 | 7,709,546 | |||||
Targa Resources Partners L.P. / Targa | |||||||
Resources Partners Finance Corp. | |||||||
31,849,000 | 4.250%, 11/15/2023 | 32,059,363 | |||||
186,191,039 | |||||||
Paper & Forest Products: 0.7% | |||||||
Resolute Forest Products, Inc. | |||||||
34,750,000 | 4.875%, 03/01/2026 | 34,880,312 | |||||
Pharmaceuticals: 0.9% | |||||||
Bayer U.S. Finance II LLC | |||||||
44,975,000 | 0.831% (3 Month LIBOR | ||||||
USD + 0.630%), 06/25/2021 3 | 45,009,689 | ||||||
Professional Services: 0.2% | |||||||
Korn Ferry | |||||||
9,600,000 | 4.625%, 12/15/2027 3 | 9,816,000 | |||||
Specialty Retail: 3.2% | |||||||
Caleres, Inc. | |||||||
72,713,000 | 6.250%, 08/15/2023 | 73,440,130 | |||||
Ken Garff Automotive LLC | |||||||
49,795,000 | 4.875%, 09/15/2028 | 49,838,571 | |||||
Penske Automotive Group, Inc. | |||||||
19,734,000 | 3.500%, 09/01/2025 | 20,223,403 | |||||
13,170,000 | 5.500%, 05/15/2026 | 13,577,282 | |||||
Rent-A-Center Inc/TX | |||||||
9,250,000 | 6.375%, 02/15/2029 | 9,828,125 | |||||
166,907,511 | |||||||
Textiles, Apparel & Luxury Goods: 0.3% | |||||||
The William Carter Co. | |||||||
13,000,000 | 5.500%, 05/15/2025 | 13,889,460 | |||||
3,000,000 | 5.625%, 03/15/2027 | 3,174,375 | |||||
17,063,835 | |||||||
Thrifts & Mortgage Finance: 2.9% | |||||||
Nationstar Mortgage Holdings, Inc. | |||||||
13,250,000 | 6.000%, 01/15/2027 | 13,769,665 | |||||
19,350,000 | 5.500%, 08/15/2028 | 19,464,649 | |||||
9,500,000 | 5.125%, 12/15/2030 | 9,347,620 | |||||
PennyMac Financial Services, Inc. | |||||||
56,030,000 | 5.375%, 10/15/2025 | 58,147,934 | |||||
United Wholesale Mortgage LLC | |||||||
47,500,000 | 5.500%, 11/15/2025 | 49,578,125 | |||||
150,307,993 | |||||||
Trading Companies & Distributors: 2.1% | |||||||
Avation Capital SA | |||||||
91,500,000 | 8.250% Cash or 9.000% | ||||||
PIK, 10/31/2026 3 | 73,989,188 | ||||||
Herc Holdings, Inc. | |||||||
9,500,000 | 5.500%, 07/15/2027 | 10,127,713 | |||||
WESCO Distribution, Inc. | |||||||
15,125,000 | 7.125%, 06/15/2025 | 16,559,228 | |||||
9,750,000 | 7.250%, 06/15/2028 | 10,923,949 | |||||
111,600,078 |
Principal | |||||||
Amount | Value | ||||||
Transportation Infrastructure: 0.5% | |||||||
Signature Aviation US Holdings, Inc. | |||||||
$ | 25,600,000 | 4.000%, 03/01/2028 | $ | 26,076,416 | |||
Wireless Telecommunication Services: 0.7% | |||||||
T-Mobile USA, Inc. | |||||||
8,295,000 | 6.000%, 03/01/2023 | 8,357,213 | |||||
30,000,000 | 6.000%, 04/15/2024 | 30,262,500 | |||||
38,619,713 | |||||||
Total Corporate Bonds | |||||||
(Cost $3,996,378,960) | 4,099,948,552 | ||||||
Convertible Bonds: 8.3% | |||||||
Aerospace & Defense: 0.2% | |||||||
Parsons Corp. | |||||||
10,000,000 | 0.250%, 08/15/2025 | 11,025,000 | |||||
Airlines: 0.3% | |||||||
Southwest Airlines Co. | |||||||
8,750,000 | 1.250%, 05/01/2025 | 15,066,406 | |||||
Auto Components: 0.3% | |||||||
Horizon Global Corp. | |||||||
19,287,000 | 2.750%, 07/01/2022 | 18,511,700 | |||||
Automobiles: 0.3% | |||||||
Ford Motor Co. | |||||||
14,500,000 | 0.000%, 03/15/2026 | 14,717,500 | |||||
Construction & Engineering: 0.7% | |||||||
Tutor Perini Corp. | |||||||
35,865,000 | 2.875%, 06/15/2021 | 36,380,559 | |||||
Consumer Finance: 0.1% | |||||||
EZCORP, Inc. | |||||||
9,750,000 | 2.375%, 05/01/2025 | 7,988,906 | |||||
Electronic Equipment, | |||||||
Instruments & Components: 0.4% | |||||||
OSI Systems, Inc. | |||||||
19,300,000 | 1.250%, 09/01/2022 | 20,904,313 | |||||
Energy Equipment & Services: 0.6% | |||||||
Newpark Resources, Inc. | |||||||
30,180,000 | 4.000%, 12/01/2021 | 30,029,100 | |||||
Entertainment: 0.2% | |||||||
Live Nation Entertainment, Inc. | |||||||
8,500,000 | 2.000%, 02/15/2025 | 9,456,250 | |||||
Health Care Equipment & Supplies: 0.9% | |||||||
CONMED Corp. | |||||||
8,755,000 | 2.625%, 02/01/2024 | 13,728,888 | |||||
Haemonetics Corp. | |||||||
17,750,000 | 0.000%, 03/01/2026 | 16,906,875 | |||||
Integra LifeSciences Holdings Corp. | |||||||
13,000,000 | 0.500%, 08/15/2025 | 14,519,700 | |||||
45,155,463 | |||||||
Health Care Technology: 0.2% | |||||||
Tabula Rasa HealthCare, Inc. | |||||||
8,400,000 | 1.750%, 02/15/2026 | 8,526,000 | |||||
Hotels, Restaurants & Leisure: 1.0% | |||||||
Carnival Corp. | |||||||
12,575,000 | 5.750%, 04/01/2023 | 35,348,325 | |||||
NCL Corp. Ltd. | |||||||
6,835,000 | 6.000%, 05/15/2024 | 15,190,787 | |||||
50,539,112 | |||||||
Internet & Direct Marketing Retail: 0.3% | |||||||
Etsy, Inc. | |||||||
6,532,000 | 0.125%, 10/01/2026 | 15,476,758 | |||||
IT Services: 0.2% | |||||||
Euronet Worldwide, Inc. | |||||||
8,680,000 | 0.750%, 03/15/2049 | 9,933,175 | |||||
Machinery: 0.2% | |||||||
The Middleby Corp. | |||||||
7,150,000 | 1.000%, 09/01/2025 | 10,094,906 | |||||
Pharmaceuticals: 0.4% | |||||||
Jazz Investments I Ltd. | |||||||
6,290,000 | 1.875%, 08/15/2021 | 6,451,181 | |||||
6,000,000 | 1.500%, 08/15/2024 | 6,506,250 | |||||
6,650,000 | 2.000%, 06/15/2026 | 8,570,188 | |||||
21,527,619 | |||||||
Real Estate Management & Development: 0.2% | |||||||
Colliers International Group, Inc. | |||||||
4,750,000 | 4.000%, 06/01/2025 | 8,745,937 | |||||
Semiconductors & Semiconductor Equipment: 0.2% | |||||||
Cree, Inc. | |||||||
4,051,000 | 0.875%, 09/01/2023 | 7,484,425 | |||||
Rambus, Inc. | |||||||
5,000,000 | 1.375%, 02/01/2023 | 5,981,500 | |||||
13,465,925 | |||||||
Software: 1.3% | |||||||
Alteryx, Inc. | |||||||
4,647,000 | 1.000%, 08/01/2026 | 4,220,057 | |||||
Box, Inc. | |||||||
5,650,000 | 0.000%, 01/15/2026 | 6,423,344 |
Principal | |||||||
Amount | Value | ||||||
Software: 1.3% (Continued) | |||||||
Envestnet, Inc. | |||||||
$ | 9,490,000 | 0.750%, 08/15/2025 | $ | 9,501,806 | |||
FireEye, Inc. | |||||||
20,566,000 | 1.625%, 06/01/2035 | 20,473,629 | |||||
Rapid7, Inc. | |||||||
10,000,000 | 0.250%, 03/15/2027 | 9,781,250 | |||||
Tyler Technologies, Inc. | |||||||
6,750,000 | 0.250%, 03/15/2026 | 7,184,531 | |||||
Zendesk, Inc. | |||||||
8,550,000 | 0.625%, 06/15/2025 | 11,846,880 | |||||
69,431,497 | |||||||
Thrifts & Mortgage Finance: 0.3% | |||||||
EZCORP, Inc. | |||||||
16,285,000 | 2.875%, 07/01/2024 | 15,003,371 | |||||
Total Convertible Bonds | |||||||
(Cost $356,628,450) | 431,979,497 | ||||||
Private Mortgage Backed Obligations: 0.3% | |||||||
Diversified Financial Services: 0.3% | |||||||
HAS Capital Income | |||||||
Opportunity Fund II | |||||||
21,807,000 | 8.000%, 12/31/2024 | ||||||
(Cost $21,807,000, | |||||||
Acquisition Dates | |||||||
06/10/2016, 09/19/2016) 1,5 | 16,913,269 | ||||||
Total Private Mortgage Backed Obligations | |||||||
(Cost $21,807,000) | 16,913,269 | ||||||
Total Bonds | |||||||
(Cost $4,374,814,410) | 4,548,841,317 | ||||||
Warrants: 0.0% 7 | |||||||
Trading Companies & Distributors: 0.0% 7 | |||||||
1,601,250 | Aviation PLC, Warrants | ||||||
(Expiration Date 10/31/2026, | |||||||
Exercise Price 114.5 GBp) 1,2 | 848,561 | ||||||
Total Warrants | |||||||
(Cost $—) | 848,561 | ||||||
Shares | |||||||
Short-Term Investments: 8.1% | |||||||
Money Market Funds: 8.1% | |||||||
210,176,900 | Federated Hermes U.S. | ||||||
Treasury Cash Reserves – | |||||||
Class I, 0.010% 4 | 210,176,900 | ||||||
210,176,900 | Morgan Stanley Institutional | ||||||
Liquidity Funds – Treasury | |||||||
Securities Portfolio , 0.010% 4 | 210,176,900 | ||||||
Total Money Market Funds | |||||||
(Cost $420,353,800) | 420,353,800 | ||||||
Total Short-Term Investments | |||||||
(Cost $420,353,800) | 420,353,800 | ||||||
Total Investments in Securities: 99.5% | |||||||
(Cost $5,002,204,190) | 5,176,997,620 | ||||||
Other Assets in Excess of Liabilities: 0.5% | 26,892,067 | ||||||
Total Net Assets: 100.0% | $ | 5,203,889,687 |
1 | Security is fair valued under the Board of Trustees and is categorized as a Level 3 security. Significant unobservable inputs were used to determine fair value. |
2 | Non-income producing security. |
3 | Variable rate security; rate shown is the rate in effect on March 31, 2021. |
4 | Annualized seven-day effective yield as of March 31, 2021. |
5 | Security considered restricted. As of March 31, 2021, the value of the restricted securities was $16,913,269 or 0.3% of net assets. |
6 | Not a readily marketable security. |
7 | Does not round to 0.1% or (0.1)%. |
1 | The Bloomberg Barclays U.S. Universal Bond Index is used in the above fixed income analysis as its investment universe more closely resembles that of the Fund’s fixed income holdings. |
Since Inception | |||||
1 Yr. | 3 Yr. | 5 Yr. | 10 Yr. | (August 31, 2010) | |
Osterweis Strategic Investment Fund | 43.15% | 12.59% | 11.66% | 9.00% | 10.19% |
60% S&P 500 Index/40% Bloomberg Barclays U.S. Aggregate Bond Index | 31.71 | 12.24 | 11.15 | 9.87 | 10.82 |
S&P 500 Index | 56.35 | 16.78 | 16.29 | 13.91 | 15.75 |
Bloomberg Barclays U.S. Aggregate Bond Index | 0.71 | 4.65 | 3.10 | 3.44 | 3.17 |
1 | As of most recent Prospectus dated June 30, 2020. Please see the Fund’s Financial Highlights in this report for the most recent expense ratio. |
Top Ten Equity Holdings (% of Net Assets) | |||||
Microsoft Corp. | 4.3 | % | |||
Alphabet, Inc. – Class C | 4.0 | ||||
JPMorgan Chase & Co. | 3.3 | ||||
FedEx Corp. | 2.7 | ||||
Sysco Corp. | 2.6 | ||||
Chevron Corp. | 2.5 | ||||
PS Business Parks, Inc. | 2.4 | ||||
Union Pacific Corp. | 2.3 | ||||
The Home Depot, Inc. | 2.3 | ||||
Charter Communications, Inc. – Class A | 2.1 | ||||
Total | 28.5 | % | |||
Top Ten Debt Holdings (% of Net Assets) | |||||
Carnival Corp., 5.750% | 0.8 | % | |||
Donnelley Financial Solutions, Inc., 8.250% | 0.7 | ||||
Tutor Perini Corp., 6.875% | 0.7 | ||||
Caleres, Inc., 6.250% | 0.6 | ||||
Consolidated Energy Finance SA, 3.934% | 0.6 | ||||
Alliance Data Systems Corp., 7.000% | 0.5 | ||||
Navistar International Corp., 6.625% | 0.5 | ||||
Oppenheimer Holdings, Inc., 5.500% | 0.5 | ||||
Michael Baker International LLC, 8.750% | 0.5 | ||||
R.R. Donnelley & Sons Co., 7.000% | 0.4 | ||||
Total | 5.8 | % |
Shares | Value | ||||||
Common Stocks: 70.3% | |||||||
Aerospace & Defense: 3.0% | |||||||
12,745 | L3Harris Technologies, Inc. | $ | 2,583,157 | ||||
63,405 | Safran SA – ADR | 2,158,306 | |||||
4,741,463 | |||||||
Air Freight & Logistics: 2.7% | |||||||
14,850 | FedEx Corp. | 4,217,994 | |||||
Auto Components: 1.2% | |||||||
13,625 | Aptiv PLC – ADR 1 | 1,878,887 | |||||
Banks: 4.7% | |||||||
13,605 | First Republic Bank | 2,268,634 | |||||
33,800 | JPMorgan Chase & Co. | 5,145,374 | |||||
7,414,008 | |||||||
Chemicals: 3.4% | |||||||
10,215 | Air Products & Chemicals, Inc. | 2,873,888 | |||||
17,295 | International Flavors & | ||||||
Fragrances, Inc. | 2,414,555 | ||||||
5,288,443 | |||||||
Commercial Services & Supplies: 2.1% | |||||||
30,170 | Waste Connections, Inc. 1 | 3,257,757 | |||||
Electric Utilities: 1.6% | |||||||
32,750 | NextEra Energy, Inc. | 2,476,227 | |||||
Equity Real Estate Investment Trusts – REITS: 4.4% | |||||||
18,180 | Crown Castle International Corp. | 3,129,324 | |||||
23,985 | PS Business Parks, Inc. | 3,707,601 | |||||
6,836,925 | |||||||
Food & Staples Retailing: 2.8% | |||||||
18,493 | Southeastern Grocers, Inc. 1,2 | 235,786 | |||||
52,340 | Sysco Corp. | 4,121,252 | |||||
2,292,000 | Tops Holding, Litigation | ||||||
Trust Proceeds 1,2,6 | 1,721 | ||||||
4,358,759 | |||||||
Health Care Equipment & Supplies: 3.3% | |||||||
13,365 | Danaher Corp. | 3,008,194 | |||||
5,330 | Teleflex, Inc. | 2,214,402 | |||||
5,222,596 | |||||||
Insurance: 1.9% | |||||||
31,440 | The Progressive Corp. | 3,005,978 | |||||
Interactive Media & Services: 4.0% | |||||||
3,007 | Alphabet, Inc. – Class C 1 | 6,220,370 | |||||
Internet & Direct Marketing Retail: 1.2% | |||||||
605 | Amazon.com, Inc. 1 | 1,871,918 | |||||
IT Services: 1.8% | |||||||
13,720 | Visa, Inc. – Class A | 2,904,936 | |||||
Media: 2.1% | |||||||
5,401 | Charter Communications, | ||||||
Inc. – Class A 1 | 3,332,525 | ||||||
Metals & Mining: 0.4% | |||||||
17 | Real Alloy Holding, Inc. 1,2 | 661,200 | |||||
Mortgage Real Estate Investment Trusts – REITS: 2.0% | |||||||
56,460 | Hannon Armstrong Sustainable | ||||||
Infrastructure Capital, Inc. | 3,167,406 | ||||||
Multiline Retail: 1.7% | |||||||
13,515 | Dollar General Corp. | 2,738,409 | |||||
Oil, Gas & Consumable Fuels: 2.5% | |||||||
38,020 | Chevron Corp. | 3,984,116 | |||||
Pharmaceuticals: 3.7% | |||||||
19,275 | Johnson & Johnson | 3,167,846 | |||||
30,880 | Novartis AG – ADR | 2,639,623 | |||||
5,807,469 | |||||||
Road & Rail: 3.9% | |||||||
9,945 | Old Dominion Freight Line, Inc. | 2,390,877 | |||||
16,690 | Union Pacific Corp. | 3,678,643 | |||||
6,069,520 | |||||||
Semiconductors & Semiconductor Equipment: 5.5% | |||||||
18,810 | Advanced Micro Devices, Inc. 1 | 1,476,585 | |||||
17,455 | Analog Devices, Inc. | 2,706,922 | |||||
23,255 | Applied Materials, Inc. | 3,106,868 | |||||
3,940 | Monolithic Power Systems, Inc. | 1,391,647 | |||||
8,682,022 | |||||||
Software: 5.1% | |||||||
28,395 | Microsoft Corp. | 6,694,689 | |||||
10,450 | Zendesk, Inc. 1 | 1,385,879 | |||||
8,080,568 | |||||||
Specialty Retail: 4.4% | |||||||
12,035 | The Home Depot, Inc. | 3,673,684 | |||||
27,250 | Ross Stores, Inc. | 3,267,547 | |||||
6,941,231 | |||||||
Wireless Telecommunication Services: 0.9% | |||||||
11,640 | T-Mobile US, Inc. 1 | 1,458,376 | |||||
Total Common Stocks | |||||||
(Cost $67,696,010) | 110,619,103 |
Shares | Value | ||||||
Convertible Preferred Stocks: 1.0% | |||||||
Media: 0.2% | |||||||
4,000 | ViacomCBS, Inc., 5.750% | $ | 268,600 | ||||
Road & Rail: 0.8% | |||||||
10,000 | Daseke, Inc., 7.625% 3 | 1,214,060 | |||||
Total Convertible Preferred Stocks | |||||||
(Cost $1,238,000) | 1,482,660 | ||||||
Principal | |||||||
Amount | |||||||
Bonds: 27.3% | |||||||
Corporate Bonds: 21.7% | |||||||
Air Freight & Logistics: 0.4% | |||||||
Cargo Aircraft Management, Inc. | |||||||
$ | 124,000 | 4.750%, 02/01/2028 | 128,107 | ||||
XPO Logistics, Inc. | |||||||
500,000 | 6.250%, 05/01/2025 | 536,275 | |||||
664,382 | |||||||
Airlines: 0.3% | |||||||
American Airlines 2012-2 | |||||||
Class C Pass Through Trust | |||||||
460,000 | 4.700%, 06/03/2021 | 459,537 | |||||
Auto Components: 1.0% | |||||||
American Axle & Manufacturing, Inc. | |||||||
100,000 | 6.250%, 04/01/2025 | 103,125 | |||||
400,000 | 6.250%, 03/15/2026 | 410,200 | |||||
The Goodyear Tire & Rubber Co. | |||||||
500,000 | 9.500%, 05/31/2025 | 561,250 | |||||
Real Hero Merger Sub 2, Inc. | |||||||
500,000 | 6.250%, 02/01/2029 | 516,875 | |||||
1,591,450 | |||||||
Automobiles: 0.4% | |||||||
Ford Motor Co. | |||||||
500,000 | 9.625%, 04/22/2030 | 698,572 | |||||
Building Products: 0.5% | |||||||
Patrick Industries, Inc. | |||||||
500,000 | 7.500%, 10/15/2027 | 546,875 | |||||
PGT Innovations, Inc. | |||||||
250,000 | 6.750%, 08/01/2026 | 266,250 | |||||
813,125 | |||||||
Capital Markets: 1.2% | |||||||
Donnelley Financial Solutions, Inc. | |||||||
1,000,000 | 8.250%, 10/15/2024 | 1,045,000 | |||||
Oppenheimer Holdings, Inc. | |||||||
750,000 | 5.500%, 10/01/2025 | 776,250 | |||||
1,821,250 | |||||||
Chemicals: 1.0% | |||||||
Consolidated Energy Finance SA | |||||||
1,000,000 | 3.934% (3 Month LIBOR | ||||||
USD + 3.750%), 06/15/2022 3 | 990,248 | ||||||
Olin Corp. | |||||||
250,000 | 9.500%, 06/01/2025 | 308,750 | |||||
250,000 | 5.625%, 08/01/2029 | 269,958 | |||||
1,568,956 | |||||||
Commercial Services & Supplies: 1.7% | |||||||
GFL Environmental, Inc. | |||||||
220,000 | 5.125%, 12/15/2026 | 232,122 | |||||
270,000 | 8.500%, 05/01/2027 | 297,844 | |||||
KAR Auction Services, Inc. | |||||||
500,000 | 5.125%, 06/01/2025 | 506,375 | |||||
Pitney Bowes, Inc. | |||||||
500,000 | 7.250%, 03/15/2029 | 495,705 | |||||
Quad/Graphics, Inc. | |||||||
121,000 | 7.000%, 05/01/2022 | 119,970 | |||||
R.R. Donnelley & Sons Co. | |||||||
250,000 | 8.875%, 04/15/2021 | 251,875 | |||||
676,000 | 7.000%, 02/15/2022 | 700,346 | |||||
2,604,237 | |||||||
Communications Equipment: 0.3% | |||||||
Plantronics, Inc. | |||||||
500,000 | 5.500%, 05/31/2023 | 503,055 | |||||
Computers & Peripherals: 0.8% | |||||||
CPI CG, Inc. | |||||||
500,000 | 8.625%, 03/15/2026 | 525,145 | |||||
NCR Corp. | |||||||
450,000 | 5.750%, 09/01/2027 | 477,000 | |||||
250,000 | 5.000%, 10/01/2028 | 252,969 | |||||
1,255,114 | |||||||
Construction & Engineering: 1.1% | |||||||
Michael Baker International LLC | |||||||
700,000 | 8.750%, 03/01/2023 | 713,125 | |||||
Tutor Perini Corp. | |||||||
1,000,000 | 6.875%, 05/01/2025 | 1,035,300 | |||||
1,748,425 | |||||||
Construction Materials: 0.5% | |||||||
Cemex SAB de CV | |||||||
250,000 | 7.375%, 06/05/2027 | 283,437 | |||||
US Concrete, Inc. | |||||||
500,000 | 5.125%, 03/01/2029 | 515,938 | |||||
799,375 |
Principal | |||||||
Amount | Value | ||||||
Distributors: 0.1% | |||||||
American Builders & Contractors | |||||||
Supply Co., Inc. | |||||||
$ | 139,000 | 4.000%, 01/15/2028 | $ | 139,235 | |||
Diversified Financial Services: 0.2% | |||||||
Burford Capital Global Finance LLC | |||||||
250,000 | 6.250%, 04/15/2028 3 | 256,562 | |||||
Equity Real Estate Investment Trusts – REITS: 0.4% | |||||||
HAT Holdings I LLC / | |||||||
HAT Holdings II LLC | |||||||
500,000 | 5.250%, 07/15/2024 | 517,240 | |||||
SL Green Operating Partnership L.P. | |||||||
150,000 | 1.174% (3 Month LIBOR | ||||||
USD + 0.980%), 08/16/2021 3 | 150,005 | ||||||
667,245 | |||||||
Food & Staples Retailing: 1.2% | |||||||
C&S Group Enterprises LLC | |||||||
500,000 | 5.000%, 12/15/2028 | 487,500 | |||||
KeHE Distributors LLC / | |||||||
KeHE Finance Corp. | |||||||
576,000 | 8.625%, 10/15/2026 | 642,151 | |||||
United Natural Foods, Inc. | |||||||
250,000 | 6.750%, 10/15/2028 | 267,500 | |||||
US Foods, Inc. | |||||||
500,000 | 4.750%, 02/15/2029 | 500,625 | |||||
1,897,776 | |||||||
Health Care Providers & Services: 0.2% | |||||||
Owens & Minor, Inc. | |||||||
250,000 | 4.500%, 03/31/2029 | 251,563 | |||||
Hotels, Restaurants & Leisure: 0.7% | |||||||
Carnival Corp. | |||||||
250,000 | 11.500%, 04/01/2023 | 286,926 | |||||
500,000 | 5.750%, 03/01/2027 | 514,605 | |||||
NCL Corp. Ltd. | |||||||
250,000 | 12.250%, 05/15/2024 | 302,938 | |||||
1,104,469 | |||||||
Household Durables: 0.8% | |||||||
Empire Communities Corp. | |||||||
250,000 | 7.000%, 12/15/2025 | 264,062 | |||||
Mattamy Group Corp. | |||||||
500,000 | 5.250%, 12/15/2027 | 524,688 | |||||
The New Home Co., Inc. | |||||||
500,000 | 7.250%, 10/15/2025 | 518,855 | |||||
1,307,605 | |||||||
Industrial Conglomerates: 0.5% | |||||||
Icahn Enterprises L.P. / | |||||||
Icahn Enterprises Finance Corp. | |||||||
280,000 | 6.250%, 02/01/2022 | 280,700 | |||||
500,000 | 6.250%, 05/15/2026 | 524,920 | |||||
805,620 | |||||||
IT Services: 0.9% | |||||||
Alliance Data Systems Corp. | |||||||
750,000 | 7.000%, 01/15/2026 | 804,056 | |||||
Unisys Corp. | |||||||
500,000 | 6.875%, 11/01/2027 | 548,750 | |||||
1,352,806 | |||||||
Machinery: 0.9% | |||||||
Flowserve Corp. | |||||||
145,000 | 4.000%, 11/15/2023 | 153,117 | |||||
Meritor, Inc. | |||||||
194,000 | 6.250%, 02/15/2024 | 197,919 | |||||
Navistar International Corp. | |||||||
750,000 | 6.625%, 11/01/2025 | 779,085 | |||||
Welbilt, Inc. | |||||||
300,000 | 9.500%, 02/15/2024 | 309,562 | |||||
1,439,683 | |||||||
Media: 0.2% | |||||||
Meredith Corp. | |||||||
240,000 | 6.875%, 02/01/2026 | 246,450 | |||||
Metals & Mining: 0.8% | |||||||
Coeur Mining, Inc. | |||||||
500,000 | 5.125%, 02/15/2029 | 478,600 | |||||
Hecla Mining Co. | |||||||
500,000 | 7.250%, 02/15/2028 | 536,875 | |||||
Real Alloy Holding, Inc. | |||||||
243,104 | 10.194%, (3 Month LIBOR | ||||||
USD + 10.000%) Cash or | |||||||
12.194% (3 Month LIBOR | |||||||
USD + 12.000%) PIK, 05/31/2023 2 | 243,104 | ||||||
1,258,579 | |||||||
Oil, Gas & Consumable Fuels: 1.1% | |||||||
Aker BP ASA | |||||||
250,000 | 4.750%, 06/15/2024 | 256,532 | |||||
Calumet Specialty Products Partners | |||||||
L.P. / Calumet Finance Corp. | |||||||
500,000 | 11.000%, 04/15/2025 | 526,245 | |||||
Genesis Energy L.P. / | |||||||
Genesis Energy Finance Corp. | |||||||
450,000 | 7.750%, 02/01/2028 | 450,697 |
Principal | |||||||
Amount | Value | ||||||
Oil, Gas & Consumable Fuels: 1.1% (Continued) | |||||||
Global Partners L.P. / | |||||||
GLP Finance Corp. | |||||||
$ | 500,000 | 7.000%, 08/01/2027 | $ | 528,438 | |||
1,761,912 | |||||||
Paper & Forest Products: 0.2% | |||||||
Resolute Forest Products, Inc. | |||||||
250,000 | 4.875%, 03/01/2026 | 250,938 | |||||
Pharmaceuticals: 0.2% | |||||||
Bayer U.S. Finance II LLC | |||||||
250,000 | 0.831% (3 Month LIBOR | ||||||
USD + 0.630%), 06/25/2021 3 | 250,193 | ||||||
Professional Services: 0.3% | |||||||
Korn Ferry | |||||||
500,000 | 4.625%, 12/15/2027 | 511,250 | |||||
Specialty Retail: 1.3% | |||||||
Caleres, Inc. | |||||||
1,000,000 | 6.250%, 08/15/2023 | 1,010,000 | |||||
Ken Garff Automotive LLC | |||||||
500,000 | 4.875%, 09/15/2028 | 500,437 | |||||
Rent-A-Center Inc/TX | |||||||
500,000 | 6.375%, 02/15/2029 | 531,250 | |||||
2,041,687 | |||||||
Textiles, Apparel & Luxury Goods: 0.2% | |||||||
The William Carter Co. | |||||||
250,000 | 5.500%, 05/15/2025 | 267,105 | |||||
Thrifts & Mortgage Finance: 1.1% | |||||||
Nationstar Mortgage Holdings, Inc. | |||||||
250,000 | 6.000%, 01/15/2027 | 259,805 | |||||
500,000 | 5.125%, 12/15/2030 | 491,980 | |||||
PennyMac Financial Services, Inc. | |||||||
500,000 | 5.375%, 10/15/2025 | 518,900 | |||||
United Wholesale Mortgage LLC | |||||||
500,000 | 5.500%, 11/15/2025 | 521,875 | |||||
1,792,560 | |||||||
Trading Companies & Distributors: 0.9% | |||||||
Avation Capital SA | |||||||
500,000 | 8.250% Cash or 9.000% | ||||||
PIK, 10/31/2026 3 | 404,312 | ||||||
Herc Holdings, Inc. | |||||||
500,000 | 5.500%, 07/15/2027 | 533,037 | |||||
WESCO Distribution, Inc. | |||||||
250,000 | 7.125%, 06/15/2025 | 273,707 | |||||
250,000 | 7.250%, 06/15/2028 | 280,101 | |||||
1,491,157 | |||||||
Transportation Infrastructure: 0.3% | |||||||
Signature Aviation US Holdings, Inc. | |||||||
400,000 | 4.000%, 03/01/2028 | 407,444 | |||||
Total Corporate Bonds | |||||||
(Cost $32,659,243) | 34,029,317 | ||||||
Convertible Bonds: 5.3% | |||||||
Airlines: 0.3% | |||||||
Southwest Airlines Co. | |||||||
250,000 | 1.250%, 05/01/2025 | 430,469 | |||||
Auto Components: 0.3% | |||||||
Horizon Global Corp. | |||||||
480,000 | 2.750%, 07/01/2022 | 460,705 | |||||
Automobiles: 0.3% | |||||||
Ford Motor Co. | |||||||
500,000 | N/A%, 03/15/2026 7 | 507,500 | |||||
Construction & Engineering: 0.2% | |||||||
Tutor Perini Corp. | |||||||
250,000 | 2.875%, 06/15/2021 | 253,594 | |||||
Consumer Finance: 0.1% | |||||||
EZCORP, Inc. | |||||||
250,000 | 2.375%, 05/01/2025 | 204,844 | |||||
Electronic Equipment, | |||||||
Instruments & Components: 0.1% | |||||||
OSI Systems, Inc. | |||||||
230,000 | 1.250%, 09/01/2022 | 249,119 | |||||
Energy Equipment & Services: 0.1% | |||||||
Newpark Resources, Inc. | |||||||
241,000 | 4.000%, 12/01/2021 | 239,795 | |||||
Health Care Equipment & Supplies: 0.3% | |||||||
CONMED Corp. | |||||||
175,000 | 2.625%, 02/01/2024 | 274,421 | |||||
Haemonetics Corp. | |||||||
250,000 | 0.000%, 03/01/2026 5 | 238,125 | |||||
512,546 | |||||||
Hotels, Restaurants & Leisure: 1.0% | |||||||
Carnival Corp. | |||||||
425,000 | 5.750%, 04/01/2023 | 1,194,675 | |||||
NCL Corp. Ltd. | |||||||
160,000 | 6.000%, 05/15/2024 | 355,600 | |||||
1,550,275 | |||||||
Internet & Direct Marketing Retail: 0.1% | |||||||
Etsy, Inc. | |||||||
44,000 | 0.125%, 10/01/2026 | 104,252 |
Principal | |||||||
Amount | Value | ||||||
IT Services: 0.3% | |||||||
Euronet Worldwide, Inc. | |||||||
$ | 370,000 | 0.750%, 03/15/2049 | $ | 423,419 | |||
Machinery: 0.3% | |||||||
The Middleby Corp. | |||||||
350,000 | 1.000%, 09/01/2025 | 494,156 | |||||
Pharmaceuticals: 0.3% | |||||||
Jazz Investments I Ltd. | |||||||
350,000 | 2.000%, 06/15/2026 | 451,063 | |||||
Real Estate Management & Development: 0.3% | |||||||
Colliers International Group, Inc. | |||||||
250,000 | 4.000%, 06/01/2025 | 460,312 | |||||
Semiconductors & Semiconductor Equipment: 0.1% | |||||||
Cree, Inc. | |||||||
60,000 | 0.875%, 09/01/2023 | 110,853 | |||||
Software: 0.9% | |||||||
Rapid7, Inc. | |||||||
500,000 | 0.250%, 03/15/2027 | 489,062 | |||||
Tyler Technologies, Inc. | |||||||
250,000 | 0.250%, 03/15/2026 | 266,094 | |||||
Zendesk, Inc. | |||||||
450,000 | 0.625%, 06/15/2025 | 623,520 | |||||
1,378,676 | |||||||
Thrifts & Mortgage Finance: 0.3% | |||||||
EZCORP, Inc. | |||||||
550,000 | 2.875%, 07/01/2024 | 506,715 | |||||
Total Convertible Bonds | |||||||
(Cost $6,386,728) | 8,338,293 | ||||||
Private Mortgage Backed Obligations: 0.3% | |||||||
Diversified Financial Services: 0.3% | |||||||
HAS Capital Income | |||||||
Opportunity Fund II | |||||||
642,000 | 8.000%, 12/31/2024 | ||||||
(Cost $642,000 Acquisition Dates | |||||||
06/10/2016, 09/19/2016) 2,5 | 497,928 | ||||||
Total Private Mortgage Backed Obligations | |||||||
(Cost $642,000) | 497,928 | ||||||
Total Bonds | |||||||
(Cost $39,687,971) | 42,865,538 | ||||||
Warrants: 0.0% 8 | |||||||
Trading Companies & Distributors: 0.0% 8 | |||||||
8,750 | Aviation PLC, Warrants | ||||||
(Expiration Date 10/31/2026, | |||||||
Exercise Price 114.5 GBp) 1,2 | 4,637 | ||||||
Total Warrants | |||||||
(Cost $—) | 4,637 | ||||||
Shares | |||||||
Short-Term Investments: 1.2% | |||||||
Money Market Funds: 1.2% | |||||||
1,957,055 | Federated Hermes U.S. Treasury | ||||||
Cash Reserves – Class I, 0.010% 4 | 1,957,055 | ||||||
Total Money Market Funds | |||||||
(Cost $1,957,055) | 1,957,055 | ||||||
Total Short-Term Investments | |||||||
(Cost $1,957,055) | 1,957,055 | ||||||
Total Investments in Securities: 99.8% | |||||||
(Cost $110,579,036) | 156,928,993 | ||||||
Other Assets in Excess of Liabilities: 0.2% | 347,922 | ||||||
Total Net Assets: 100.0% | $ | 157,276,915 |
1 | Non-income producing security. |
2 | Security is fair valued under the Board of Trustees and is categorized as a Level 3 security. Significant unobservable inputs were used to determine fair value. |
3 | Variable rate security; rate shown is the rate in effect on March 31, 2021. |
4 | Annualized seven-day effective yield as of March 31, 2021. |
5 | Security considered restricted. As of March 31, 2021, the value of the restricted securities was $497,928 or 0.3% of net assets. |
6 | Not a readily marketable security. |
7 | Zero coupon security. |
8 | Does not round to 0.1% or (0.1)%, as applicable. |
Since Inception | ||||
1 Yr. | 3 Yr. | 5 Yr. | (October 1, 2012) | |
Osterweis Emerging Opportunity Fund | 111.27% | 29.45% | 28.29% | 20.70% |
Russell 2000 Growth Index | 90.20 | 17.16 | 18.61 | 15.27 |
1 | As of most recent Prospectus dated June 30, 2020. Please see the Fund’s Financial Highlights in this report for the most recent expense ratio. The Adviser has contractually agreed to waive certain fees through June 30, 2021. The net expense ratio is applicable to investors. |
Top Ten Equity Holdings (% of Net Assets) | |||||
Meta Financial Group, Inc. | 4.8 | % | |||
Brooks Automation, Inc. | 4.5 | ||||
Marriott Vacations Worldwide Corp. | 4.5 | ||||
Kornit Digital Ltd. | 3.9 | ||||
FirstService Corp. | 3.6 | ||||
Floor & Decor Holdings, Inc. | 3.5 | ||||
Five9, Inc. | 3.3 | ||||
Insulet Corp. | 3.3 | ||||
Spirit Airlines, Inc. | 3.3 | ||||
Bio-Techne Corp. | 3.0 | ||||
Total | 37.7 | % |
Shares | Value | ||||||
Common Stocks: 93.8% | |||||||
Aerospace & Defense: 4.8% | |||||||
33,825 | Axon Enterprise, Inc. 1 | $ | 4,817,357 | ||||
230,740 | Kratos Defense & Security | ||||||
Solutions, Inc. 1 | 6,294,587 | ||||||
11,111,944 | |||||||
Airlines: 3.3% | |||||||
205,080 | Spirit Airlines, Inc. 1 | 7,567,452 | |||||
Biotechnology: 7.9% | |||||||
53,890 | ALX Oncology Holdings, Inc. 1 | 3,973,849 | |||||
100,691 | Iovance Biotherapeutics, Inc. 1 | 3,187,877 | |||||
19,650 | Mirati Therapeutics, Inc. 1 | 3,366,045 | |||||
130,055 | Replimune Group, Inc. 1 | 3,967,978 | |||||
39,755 | Turning Point Therapeutics, Inc. 1 | 3,760,425 | |||||
18,256,174 | |||||||
Diversified Consumer Services: 2.0% | |||||||
55,365 | Chegg, Inc. 1 | 4,742,566 | |||||
Diversified Telecommunication Services: 1.1% | |||||||
20,205 | Bandwidth, Inc. – Class A 1 | 2,560,782 | |||||
Health Care Equipment & Supplies: 10.4% | |||||||
86,685 | Eargo, Inc. 1 | 4,329,916 | |||||
29,370 | Insulet Corp. 1 | 7,663,220 | |||||
559,510 | SmileDirectClub, Inc. – Class A 1 | 5,768,548 | |||||
72,095 | Tandem Diabetes Care, Inc. 1 | 6,362,384 | |||||
24,124,068 | |||||||
Health Care Providers & Services: 5.5% | |||||||
131,175 | Accolade, Inc. 1 | 5,951,410 | |||||
150,365 | Progyny, Inc. 1 | 6,692,746 | |||||
12,644,156 | |||||||
Health Care Technology: 1.0% | |||||||
235,775 | Hudson Executive Investment | ||||||
Corp. – Class A 1 | 2,338,888 | ||||||
Hotels, Restaurants & Leisure: 8.4% | |||||||
59,580 | Marriott Vacations Worldwide Corp. | 10,377,644 | |||||
54,335 | Planet Fitness, Inc. – Class A 1 | 4,200,095 | |||||
37,615 | Wingstop, Inc. | 4,783,500 | |||||
19,361,239 | |||||||
Internet & Direct Marketing Retail: 3.7% | |||||||
23,020 | Etsy, Inc. 1 | 4,642,443 | |||||
18,520 | Fiverr International Ltd. 1 | 4,022,174 | |||||
8,664,617 | |||||||
Leisure Products: 1.5% | |||||||
86,945 | Callaway Golf Co. | 2,325,779 | |||||
13,480 | Malibu Boats, Inc. – Class A 1 | 1,074,086 | |||||
3,399,865 | |||||||
Life Sciences Tools & Services: 3.0% | |||||||
18,245 | Bio-Techne Corp. | 6,968,313 | |||||
Machinery: 3.9% | |||||||
92,405 | Kornit Digital Ltd. 1 | 9,159,184 | |||||
Real Estate Management & Development: 3.6% | |||||||
56,525 | FirstService Corp. | 8,376,440 | |||||
Semiconductors & Semiconductor Equipment: 11.1% | |||||||
128,480 | Brooks Automation, Inc. | 10,490,392 | |||||
22,970 | Inphi Corp. 1 | 4,098,077 | |||||
29,985 | MKS Instruments, Inc. | 5,559,819 | |||||
83,852 | Onto Innovation, Inc. 1 | 5,509,915 | |||||
25,658,203 | |||||||
Software: 14.3% | |||||||
17,740 | Avalara, Inc. 1 | 2,367,048 | |||||
59,505 | Cerence, Inc. 1 | 5,330,458 | |||||
33,445 | CyberArk Software Ltd. 1 | 4,325,776 | |||||
35,525 | Everbridge, Inc. 1 | 4,304,920 | |||||
49,640 | Five9, Inc. 1 | 7,760,221 | |||||
72,225 | Rapid7, Inc. 1 | 5,388,707 | |||||
61,950 | Sprout Social, Inc. – Class A 1 | 3,578,232 | |||||
33,055,362 | |||||||
Specialty Retail: 3.5% | |||||||
85,990 | Floor & Decor Holdings, Inc. 1 | 8,210,325 | |||||
Thrifts & Mortgage Finance: 4.8% | |||||||
245,010 | Meta Financial Group, Inc. | 11,101,403 | |||||
Total Common Stocks | |||||||
(Cost $176,353,473) | 217,300,981 |
Shares | Value | ||||||
Short-Term Investments: 5.7% | |||||||
Money Market Funds: 5.7% | |||||||
13,297,937 | Federated Hermes U.S. Treasury | ||||||
Cash Reserves – Class I , 0.010% 2 | $ | 13,297,937 | |||||
Total Money Market Funds | |||||||
(Cost $13,297,937) | 13,297,937 | ||||||
Total Short-Term Investments | |||||||
(Cost $13,297,937) | 13,297,937 | ||||||
Total Investments in Securities: 99.5% | |||||||
(Cost $189,651,410) | 230,598,918 | ||||||
Other Assets in Excess of Liabilities: 0.5% | 1,116,169 | ||||||
Total Net Assets: 100.0% | $ | 231,715,087 |
1 | Non-income producing security. |
2 | Annualized seven-day effective yield as of March 31, 2021. |
Since Inception | |||
1 Yr. | 3 Yr. | (December 30, 2016) | |
Osterweis Total Return Fund | 4.25% | 4.25% | 3.84% |
Bloomberg Barclays U.S. Aggregate Bond Index | 0.71 | 4.65 | 3.75 |
Bloomberg Barclays U.S. Aggregate Bond 1-3 Year Index | 1.19 | 2.95 | 2.23 |
ICE BofAML 3-Month Treasury Bill Index | 0.12 | 1.49 | 1.34 |
1 | As of most recent Prospectus dated June 30, 2020. Please see the Fund’s Financial Highlights in this report for the most recent expense ratio. The Adviser has contractually agreed to waive certain fees through June 30, 2021. The net expense ratio is applicable to investors. |
Top Ten Debt Holdings (% of Net Assets) | |||||
Federal National Mortgage Association & | |||||
Federal Home Loan Mortgage Corporation | |||||
30 Year Fixed Rate TBA, Series FNCL 2.5 4/21, 2.500% | |||||
14.6 | % | ||||
Federal National Mortgage Association & | |||||
Federal Home Loan Mortgage Corporation | |||||
30 Year Fixed Rate TBA, Series Pool FNCL 3 4/21, 3.000% | |||||
5.0 | |||||
Federal National Mortgage Association & | |||||
Federal Home Loan Mortgage Corporation | |||||
30 Year Fixed Rate TBA, Series FNCL 2 4/21, 2.000% | |||||
4.7 | |||||
United States Treasury Note/Bond, 0.250% | 1.9 | ||||
United States Treasury Note/Bond, 0.375% | 1.9 | ||||
Morgan Stanley, 4.350% | 1.6 | ||||
CF Hippolyta LLC, Series SORT 2021-1A B1, 1.980% | |||||
1.4 | |||||
Verizon Communications, Inc., 0.750% | 1.4 | ||||
AT&T, Inc., 0.900% | 1.3 | ||||
CLI Funding VIII LLC, 1.640% | 1.2 | ||||
Total | 35.0 | % |
Principal | |||||||
Amount | Value | ||||||
Bonds: 90.0% | |||||||
Corporate Bonds: 37.8% | |||||||
Aerospace & Defense: 1.7% | |||||||
The Boeing Co. | |||||||
$ | 1,000,000 | 1.433%, 02/04/2024 | $ | 1,001,843 | |||
1,525,000 | 3.625%, 02/01/2031 | 1,596,246 | |||||
Textron, Inc. | |||||||
1,000,000 | 2.450%, 03/15/2031 | 969,774 | |||||
3,567,863 | |||||||
Air Freight & Logistics: 0.4% | |||||||
American Airlines 2019-1 | |||||||
Class B Pass Through Trust | |||||||
906,385 | 3.850%, 02/15/2028 | 826,547 | |||||
Airlines: 1.0% | |||||||
Air Canada 2020-2 Class A | |||||||
Pass Through Trust | |||||||
1,000,000 | 5.250%, 04/01/2029 | 1,076,967 | |||||
British Airways 2020-1 Class A | |||||||
Pass Through Trust | |||||||
991,295 | 4.250%, 11/15/2032 | 1,041,800 | |||||
2,118,767 | |||||||
Automobiles: 1.5% | |||||||
General Motors Financial Co., Inc. | |||||||
2,000,000 | 1.250%, 01/08/2026 | 1,962,544 | |||||
General Motors Co. | |||||||
1,000,000 | 6.125%, 10/01/2025 | 1,176,617 | |||||
3,139,161 | |||||||
Banks: 5.0% | |||||||
Australia & New Zealand | |||||||
Banking Group Ltd. | |||||||
1,000,000 | 2.570% (5 Year CMT | ||||||
Rate + 1.700%), 11/25/2035 | 940,350 | ||||||
Bank of America Corp. | |||||||
1,500,000 | 4.250%, 10/22/2026 | 1,681,915 | |||||
Barclays PLC | |||||||
1,000,000 | 1.007% (1 Year CMT | ||||||
Rate + 0.800%), 12/10/2024 | 1,000,741 | ||||||
HSBC Holdings PLC | |||||||
1,000,000 | 4.600% (5 Year CMT | ||||||
Rate + 3.649%), 12/17/2030 1,6 | 989,750 | ||||||
JPMorgan Chase & Co. | |||||||
1,900,000 | 3.522% (3 Month LIBOR | ||||||
USD + 3.320%), 07/01/2021 1,6 | 1,893,825 | ||||||
1,000,000 | 3.682% (3 Month LIBOR | ||||||
USD + 3.470%), 04/30/2021 1,6 | 1,000,537 | ||||||
1,000,000 | 2.956% (SOFR + 2.515%), | ||||||
05/13/2031 1 | 1,018,266 | ||||||
Standard Chartered PLC | |||||||
1,000,000 | 3.265% (5 Year CMT | ||||||
Rate + 2.300%), 02/18/2036 | 971,752 | ||||||
SVB Financial Group | |||||||
1,000,000 | 4.100% (10 Year CMT | ||||||
Rate + 3.064%), 02/15/2031 1,6 | 1,006,875 | ||||||
10,504,011 | |||||||
Capital Markets: 4.0% | |||||||
Blackstone Holdings Finance Co. LLC | |||||||
1,005,000 | 2.500%, 01/10/2030 1,6 | 1,019,807 | |||||
The Charles Schwab Corp. | |||||||
1,000,000 | 4.000% (10 Year CMT | ||||||
Rate + 3.079%), 12/01/2030 1,6 | 982,900 | ||||||
Deutsche Bank AG/New York NY | |||||||
1,000,000 | 2.129% (SOFR + 1.870%), | ||||||
11/24/2026 | 1,002,674 | ||||||
1,000,000 | 3.729% (SOFR + 2.757%), | ||||||
01/14/2032 1 | 974,383 | ||||||
Morgan Stanley | |||||||
3,000,000 | 4.350%, 09/08/2026 | 3,393,612 | |||||
State Street Corp. | |||||||
1,000,000 | 3.031% (SOFR + 1.490%), | ||||||
11/01/2034 1 | 1,032,775 | ||||||
8,406,151 | |||||||
Communications Equipment: 0.4% | |||||||
Juniper Networks, Inc. | |||||||
1,000,000 | 2.000%, 12/10/2030 | 921,108 | |||||
Chemicals: 1.4% | |||||||
LYB International Finance III LLC | |||||||
1,000,000 | 1.250%, 10/01/2025 | 987,820 | |||||
1,000,000 | 3.625%, 04/01/2051 | 984,909 | |||||
PPG Industries, Inc. | |||||||
1,000,000 | 1.200%, 03/15/2026 | 983,089 | |||||
2,955,818 | |||||||
Computers & Peripherals: 0.4% | |||||||
Apple, Inc. | |||||||
1,000,000 | 2.375%, 02/08/2041 | 928,027 | |||||
Diversified Financial Services: 3.0% | |||||||
Aviation Capital Group LLC | |||||||
1,200,000 | 0.882% (3 Month LIBOR | ||||||
USD + 0.670%), 07/30/2021 1 | 1,198,824 | ||||||
1,000,000 | 5.500%, 12/15/2024 | 1,118,966 | |||||
2,000,000 | 1.950%, 01/30/2026 | 1,949,080 | |||||
Avolon Holdings Funding Ltd. | |||||||
1,000,000 | 2.125%, 02/21/2026 | 956,546 | |||||
1,000,000 | 4.250%, 04/15/2026 | 1,047,898 | |||||
6,271,314 |
Principal | |||||||
Amount | Value | ||||||
Diversified Telecommunication Services: 4.3% | |||||||
AT&T, Inc. | |||||||
$ | 2,800,000 | 0.900%, 03/25/2024 | $ | 2,802,615 | |||
1,000,000 | 1.650%, 02/01/2028 | 967,920 | |||||
1,000,000 | 3.500%, 06/01/2041 | 988,556 | |||||
NTT Finance Corp. | |||||||
1,500,000 | 1.591%, 04/03/2028 | 1,464,761 | |||||
Verizon Communications, Inc. | |||||||
2,850,000 | 0.750%, 03/22/2024 | 2,853,741 | |||||
9,077,593 | |||||||
Electric Utilities: 1.4% | |||||||
Berkshire Hathaway Energy Co. | |||||||
1,000,000 | 2.850%, 05/15/2051 | 895,610 | |||||
Southern California Edison Co. | |||||||
2,000,000 | 1.100%, 04/01/2024 | 2,001,283 | |||||
2,896,893 | |||||||
Equity Real Estate Investment Trusts – REITS: 0.5% | |||||||
Boston Properties L.P. | |||||||
1,000,000 | 2.550%, 04/01/2032 | 958,776 | |||||
Hotels, Restaurants & Leisure: 0.5% | |||||||
Marriott International, Inc. | |||||||
1,000,000 | 2.850%, 04/15/2031 | 983,525 | |||||
Industrial Conglomerates: 0.9% | |||||||
Siemens Financieringsmaatschappij NV | |||||||
2,000,000 | 2.875%, 03/11/2041 | 1,937,806 | |||||
Insurance: 2.2% | |||||||
Allianz SE | |||||||
1,600,000 | 3.500% (5 Year CMT | ||||||
Rate + 2.973%), 11/17/2025 1,6 | 1,628,000 | ||||||
Belrose Funding Trust | |||||||
1,000,000 | 2.330%, 08/15/2030 | 964,421 | |||||
New York Life Insurance Co. | |||||||
1,000,000 | 3.750%, 05/15/2050 | 1,052,352 | |||||
SBL Holdings, Inc. | |||||||
1,000,000 | 5.000%, 02/18/2031 | 1,009,591 | |||||
4,654,364 | |||||||
Internet & Direct Marketing Retail: 0.7% | |||||||
Expedia Group, Inc. | |||||||
1,500,000 | 2.950%, 03/15/2031 | 1,479,286 | |||||
Media: 0.7% | |||||||
Charter Communications Operating | |||||||
LLC / Charter Communications | |||||||
Operating Capital | |||||||
1,500,000 | 3.700%, 04/01/2051 | 1,401,127 | |||||
Oil, Gas & Consumable Fuels: 2.3% | |||||||
Enterprise Products Operating LLC | |||||||
1,000,000 | 3.200%, 02/15/2052 | 910,808 | |||||
Kinder Morgan, Inc. | |||||||
1,000,000 | 3.600%, 02/15/2051 | 930,528 | |||||
Phillips 66 | |||||||
2,000,000 | 1.300%, 02/15/2026 | 1,978,625 | |||||
Total Capital International SA | |||||||
1,000,000 | 3.127%, 05/29/2050 | 940,996 | |||||
4,760,957 | |||||||
Pharmaceuticals: 0.9% | |||||||
Allergan Finance LLC | |||||||
1,000,000 | 3.250%, 10/01/2022 | 1,027,276 | |||||
AstraZeneca PLC | |||||||
1,000,000 | 0.700%, 04/08/2026 | 963,325 | |||||
1,990,601 | |||||||
Semiconductors & Semiconductor Equipment: 1.0% | |||||||
Microchip Technology, Inc. | |||||||
2,000,000 | 0.972%, 02/15/2024 | 1,997,256 | |||||
Software: 0.5% | |||||||
Oracle Corp. | |||||||
1,000,000 | 3.650%, 03/25/2041 | 1,010,794 | |||||
Specialty Retail: 0.7% | |||||||
Advance Auto Parts, Inc. | |||||||
500,000 | 1.750%, 10/01/2027 | 491,477 | |||||
Lowe’s Cos, Inc. | |||||||
1,000,000 | 3.500%, 04/01/2051 | 1,013,161 | |||||
1,504,638 | |||||||
Tobacco: 1.5% | |||||||
BAT Capital Corp. | |||||||
2,032,000 | 4.390%, 08/15/2037 | 2,128,581 | |||||
BAT International Finance PLC | |||||||
1,000,000 | 1.668%, 03/25/2026 | 990,132 | |||||
3,118,713 | |||||||
Wireless Telecommunication Services: 0.9% | |||||||
T-Mobile USA, Inc. | |||||||
2,000,000 | 2.050%, 02/15/2028 | 1,966,880 | |||||
Total Corporate Bonds | |||||||
(Cost $79,879,685) | 79,377,976 |
Principal | |||||||
Amount | Value | ||||||
Asset Backed Securities: 8.9% | |||||||
American Credit Acceptance | |||||||
Receivables Trust 2020-1 | |||||||
$ | 1,680,000 | 2.190%, 03/13/2026 | $ | 1,709,238 | |||
Carvana Auto Receivables | |||||||
Trust 2021-N1 | |||||||
1,500,000 | 1.300%, 01/10/2028 | 1,502,040 | |||||
CF Hippolyta LLC | |||||||
Series SORT 2020-1 B1 | |||||||
1,079,402 | 2.280%, 07/15/2060 | 1,098,724 | |||||
Series SORT 2021-1A B1 | |||||||
3,000,000 | 1.980%, 03/15/2061 | 3,000,786 | |||||
CLI Funding VIII LLC | |||||||
2,500,000 | 1.640%, 02/18/2046 | 2,447,628 | |||||
Credit Acceptance Auto | |||||||
Loan Trust 2018-1 | |||||||
250,000 | 3.770%, 06/15/2027 | 252,104 | |||||
DT Auto Owner Trust 2021-1 | |||||||
500,000 | 0.840%, 10/15/2026 | 499,013 | |||||
Flagship Credit Auto Trust 2020-4 | |||||||
500,000 | 1.280%, 02/16/2027 | 503,108 | |||||
HERO Funding Trust 2021-1 | |||||||
1,000,000 | 2.240%, 09/20/2051 | 1,008,513 | |||||
InStar Leasing III LLC | |||||||
1,494,432 | 2.300%, 02/15/2054 | 1,469,674 | |||||
MVW Owner Trust 2015-1 | |||||||
537,781 | 2.960%, 12/20/2032 | 539,649 | |||||
NP SPEX L.P. 2021-1 | |||||||
1,250,000 | 2.230%, 03/19/2051 | 1,244,248 | |||||
Progress Residential 2021-SFR1 | |||||||
500,000 | 1.555%, 04/17/2038 | 488,009 | |||||
TRIP Rail Master Funding LLC 2014-1 | |||||||
400,028 | 4.085%, 04/15/2044 | 402,930 | |||||
Triton Container Finance VIII LLC | |||||||
2,000,000 | 1.860%, 03/20/2046 | 1,956,489 | |||||
Westlake Automobile | |||||||
Receivables Trust 2018-2 | |||||||
47,565 | 3.500%, 01/16/2024 | 47,624 | |||||
Westlake Automobile | |||||||
Receivables Trust 2020-1 | |||||||
380,000 | 2.520%, 04/15/2025 | 391,240 | |||||
Westlake Automobile | |||||||
Receivables Trust 2020-3 | |||||||
87,000 | 1.240%, 11/17/2025 | 87,828 | |||||
18,648,845 | |||||||
Total Asset Backed Securities | |||||||
(Cost $18,778,137) | 18,648,845 | ||||||
Mortgage Backed Securities: 39.6% | |||||||
Federal Home Loan Mortgage | |||||||
Corporation REMICS: 3.1% | |||||||
Series FHR 2512 SI | |||||||
570,087 | 7.394% (1 Month LIBOR | ||||||
USD + 7.500%), 04/15/2024 1,2,8 | 37,346 | ||||||
Series FHR 4048 IK | |||||||
3,461,434 | 3.000%, 05/15/2027 2 | 195,671 | |||||
Series FHR 4093 DS | |||||||
6,642,244 | 6.194% (1 Month LIBOR | ||||||
USD + 6.300%), 08/15/2027 1,2,8 | 796,279 | ||||||
Series FHR 4216 EI | |||||||
3,791,535 | 3.000%, 06/15/2028 2 | 265,418 | |||||
Series FHR 4360 BI | |||||||
2,051,968 | 2.500%, 11/15/2028 2 | 91,240 | |||||
Series FHR 4341 MI | |||||||
1,748,249 | 4.000%, 11/15/2031 2 | 165,326 | |||||
Series FHR 4093 IB | |||||||
2,211,893 | 4.000%, 08/15/2032 2 | 253,270 | |||||
Series FHR 4114 MI | |||||||
2,658,556 | 3.500%, 10/15/2032 2 | 286,965 | |||||
Series FHR 4170 IU | |||||||
4,344,181 | 3.000%, 02/15/2033 2 | 410,047 | |||||
Series FHR 3171 OJ | |||||||
946,100 | N/A%, 06/15/2036 3,7 | 831,569 | |||||
Series FHR 3824 LS | |||||||
698,484 | 6.994% (1 Month LIBOR | ||||||
USD + 7.100%), 08/15/2036 1,2,8 | 167,062 | ||||||
Series FHR 3236 KF | |||||||
89,829 | 0.406% (1 Month LIBOR | ||||||
USD + 0.300%), 11/15/2036 1 | 90,625 | ||||||
Series FHR 3339 JS | |||||||
44,655 | 42.146% (1 Month LIBOR | ||||||
USD + 42.835%), 07/15/2037 1,8 | 91,496 | ||||||
Series FHR 3380 FM | |||||||
189,775 | 0.696% (1 Month LIBOR | ||||||
USD + 0.590%), 10/15/2037 1 | 192,731 | ||||||
Series FHR 4121 IM | |||||||
1,472,621 | 4.000%, 10/15/2039 2 | 12,531 | |||||
Series FHR 3721 FB | |||||||
164,008 | 0.606% (1 Month LIBOR | ||||||
USD + 0.500%), 09/15/2040 1 | 166,367 | ||||||
Series FHR 4105 LS | |||||||
5,081,551 | 6.044% (1 Month LIBOR | ||||||
USD + 6.150%), 08/15/2041 1,2,8 | 514,628 | ||||||
Series FHR 3933 QS | |||||||
2,734,952 | 5.944% (1 Month LIBOR | ||||||
USD + 6.050%), 10/15/2041 1,2,8 | 489,569 | ||||||
Series FHR 4340 US | |||||||
1,763,890 | 6.494% (1 Month LIBOR | ||||||
USD + 6.600%), 05/15/2042 1,2,8 | 340,583 | ||||||
Series FHR 4076 LF | |||||||
267,806 | 0.406% (1 Month LIBOR | ||||||
USD + 0.300%), 07/15/2042 1 | 268,211 |
Principal | |||||||
Amount | Value | ||||||
Federal Home Loan Mortgage | |||||||
Corporation REMICS: 3.1% (Continued) | |||||||
Series FHR 4495 PI | |||||||
$ | 373,303 | 4.000%, 09/15/2043 2 | $ | 38,750 | |||
Series FHR 4313 CS | |||||||
3,461,180 | 5.944% (1 Month LIBOR | ||||||
USD + 6.050%), 03/15/2044 1,2,8 | 699,702 | ||||||
Series FHR 4911 IH | |||||||
1,738,816 | 4.000%, 04/15/2049 2 | 113,051 | |||||
6,518,437 | |||||||
Federal Home Loan Mortgage | |||||||
Corporation Strips: 0.2% | |||||||
Series FHS 288 IO | |||||||
1,997,264 | 3.000%, 10/15/2027 2 | 131,287 | |||||
Series FHS 272 F2 | |||||||
364,740 | 0.656% (1 Month LIBOR | ||||||
USD + 0.550%), 08/15/2042 1 | 369,086 | ||||||
500,373 | |||||||
Federal National Mortgage | |||||||
Association & Federal Home Loan | |||||||
Mortgage Corporation 30 Year | |||||||
Fixed Rate TBA: 24.3% | |||||||
FNCL 2 4/21 | |||||||
10,000,000 | 2.000%, 09/25/2050 9 | 9,971,289 | |||||
FNCL 2.5 4/21 | |||||||
30,000,000 | 2.500%, 09/25/2049 9 | 30,765,820 | |||||
Pool FNCL 3 4/21 | |||||||
10,000,000 | 3.000%, 04/15/2043 9 | 10,416,600 | |||||
51,153,709 | |||||||
Federal National Mortgage | |||||||
Association Interest Strips: 0.5% | |||||||
Pool FNS 419 C1 | |||||||
4,372,432 | 2.500%, 09/25/2028 1,2 | 275,819 | |||||
Pool FNS 419 C2 | |||||||
5,204,404 | 3.000%, 05/25/2029 2 | 342,441 | |||||
Pool FNS 421 C4 | |||||||
2,329,762 | 4.500%, 01/25/2030 2 | 214,978 | |||||
Pool FNS 421 C3 | |||||||
147,910 | 4.000%, 07/25/2030 2 | 14,145 | |||||
Pool FNS 387 7 | |||||||
476,047 | 5.500%, 04/25/2038 2 | 103,677 | |||||
951,060 | |||||||
Federal National Mortgage | |||||||
Association Pool: 2.7% | |||||||
FN AL2519 | |||||||
947,408 | 4.500%, 07/01/2040 | 1,068,009 | |||||
FN AS5460 | |||||||
1,324,249 | 3.500%, 07/01/2045 | 1,416,850 | |||||
FN AS6520 | |||||||
1,531,503 | 3.500%, 01/01/2046 | 1,640,133 | |||||
FN MA3101 | |||||||
1,446,407 | 4.500%, 08/01/2047 | 1,587,832 | |||||
5,712,824 | |||||||
Federal National Mortgage | |||||||
Association REMICS: 5.1% | |||||||
Series FNR 1996-45 SI | |||||||
272,471 | 7.141% (1 Month LIBOR | ||||||
USD + 7.250%), 02/25/2024 1,2,8 | 24,081 | ||||||
Series FNR 1997-65 SI | |||||||
688,859 | 7.893% (1 Month LIBOR | ||||||
USD + 8.000%), 09/17/2027 1,2,8 | 99,338 | ||||||
Series FNR 2012-139 DI | |||||||
5,369,776 | 3.000%, 12/25/2027 2 | 275,958 | |||||
Series FNR 2013-29 BI | |||||||
5,959,216 | 2.500%, 04/25/2028 2 | 353,617 | |||||
Series FNR 2015-34 AI | |||||||
2,187,338 | 4.500%, 06/25/2030 2 | 60,396 | |||||
Series FNR 2010-119 PS | |||||||
3,748,355 | 6.591% (1 Month LIBOR | ||||||
USD + 6.700%), 09/25/2030 1,2,8 | 517,253 | ||||||
Series FNR 2016-8 CI | |||||||
8,159,193 | 3.000%, 03/25/2031 2 | 630,437 | |||||
Series FNR 2013-51 PI | |||||||
2,688,334 | 3.000%, 11/25/2032 2 | 259,637 | |||||
Series FNR 2014-81 TI | |||||||
537,348 | 4.500%, 12/25/2034 2 | 53,811 | |||||
Series FNR 2016-24 IB | |||||||
6,071,704 | 3.500%, 05/25/2036 2 | 614,184 | |||||
Series FNR 2007-2 FT | |||||||
250,333 | 0.359% (1 Month LIBOR | ||||||
USD + 0.250%), 02/25/2037 1 | 252,145 | ||||||
Series FNR 2016-78 CS | |||||||
3,619,997 | 5.991% (1 Month LIBOR | ||||||
USD + 6.100%), 05/25/2039 1,2,8 | 667,039 | ||||||
Series FNR 2012-82 PS | |||||||
3,822,285 | 5.991% (1 Month LIBOR | ||||||
USD + 6.100%), 08/25/2041 1,2,8 | 477,498 | ||||||
Series FNR 2011-100 S | |||||||
5,375,648 | 6.341% (1 Month LIBOR | ||||||
USD + 6.450%), 10/25/2041 1,2,8 | 1,046,653 | ||||||
Series FNR 2012-15 SW | |||||||
4,964,561 | 5.841% (1 Month LIBOR | ||||||
USD + 5.950%), 03/25/2042 1,2,8 | 821,159 | ||||||
Series FNR 2012-79 FM | |||||||
182,130 | 0.559% (1 Month LIBOR | ||||||
USD + 0.450%), 07/25/2042 1 | 183,573 | ||||||
Series FNR 2012-128 ST | |||||||
1,633,033 | 6.041% (1 Month LIBOR | ||||||
USD + 6.150%), 11/25/2042 1,2,8 | 372,166 | ||||||
Series FNR 2013-22 TO | |||||||
668,847 | N/A%, 03/25/2043 3,7 | 551,454 | |||||
Series FNR 2013-20 QS | |||||||
6,891,772 | 6.041% (1 Month LIBOR | ||||||
USD + 6.150%), 03/25/2043 1,2,8 | 1,423,183 | ||||||
Series FNR 2014-37 PI | |||||||
1,138,780 | 5.500%, 06/25/2044 2 | 142,770 | |||||
Series FNR 2014-50 WS | |||||||
696,714 | 6.091% (1 Month LIBOR | ||||||
USD + 6.200%), 08/25/2044 1,2,8 | 117,494 |
Principal | |||||||
Amount | Value | ||||||
Federal National Mortgage | |||||||
Association REMICS: 5.1% (Continued) | |||||||
Series FNR 2016-83 BS | |||||||
$ | 512,253 | 5.991% (1 Month LIBOR | |||||
USD + 6.100%), 11/25/2046 1,2,8 | $ | 105,835 | |||||
Series FNR 2018-51 IO | |||||||
738,923 | 6.500%, 07/25/2048 2 | 124,047 | |||||
Series FNR 2019-41 SB | |||||||
1,876,549 | 5.941% (1 Month LIBOR | ||||||
USD + 6.050%), 08/25/2049 1,2,8 | 342,893 | ||||||
Series FNR 2020-88 QI | |||||||
12,508,794 | 2.000%, 05/25/2050 2 | 1,210,704 | |||||
10,727,325 | |||||||
Goldman Sachs Mortgage-Backed | |||||||
Securities Corp Trust: 0.5% | |||||||
Series GSMBS 2020-PJ4 A2 | |||||||
1,044,461 | 3.000%, 01/25/2051 | 1,059,613 | |||||
Government National Mortgage | |||||||
Association: 1.2% | |||||||
Series GNR 2014-74 GI | |||||||
285,982 | 4.000%, 05/16/2029 2 | 15,586 | |||||
Series GNR 2010-47 BX | |||||||
373,739 | 6.444% (1 Month LIBOR | ||||||
USD + 6.550%), 08/16/2034 1,2,8 | 44,513 | ||||||
Series GNR 2011-61 WS | |||||||
4,137,313 | 6.359% (1 Month LIBOR | ||||||
USD + 6.470%), 02/20/2038 1,2,8 | 776,886 | ||||||
Series GNR 2010-6 FG | |||||||
160,423 | 0.706% (1 Month LIBOR | ||||||
USD + 0.600%), 01/16/2040 1 | 162,478 | ||||||
Series GNR 2016-31 CS | |||||||
5,650,821 | 6.139% (1 Month LIBOR | ||||||
USD + 6.250%), 07/20/2044 1,2,8 | 1,207,196 | ||||||
Series GNR 2016-112 WI | |||||||
6,881,791 | 1.696%, 03/20/2045 2 | 233,484 | |||||
2,440,143 | |||||||
JP Morgan Mortgage Trust: 0.7% | |||||||
Series JPMMT 2014-IVR3 3A1 | |||||||
640,035 | 2.531%, 09/25/2044 | 644,396 | |||||
Series JPMMT 2020-7 A3 | |||||||
792,950 | 3.000%, 01/25/2051 | 802,902 | |||||
1,447,298 | |||||||
Life 2021-BMR Mortgage Trust: 0.5% | |||||||
Series LIFE 2021-BMR C | |||||||
1,000,000 | 1.206% (1 Month LIBOR | ||||||
USD + 1.100%), 03/15/2038 1 | 1,002,651 | ||||||
Wells Fargo Mortgage Backed | |||||||
Securities Trust: 0.8% | |||||||
Series WFMBS 2020-3 A3 | |||||||
611,878 | 3.000%, 06/25/2050 | 623,555 | |||||
Series WFMBS 2020-4 A1 | |||||||
1,086,699 | 3.000%, 07/25/2050 | 1,106,769 | |||||
1,730,324 | |||||||
Total Mortgage Backed Securities (Cost $85,274,166) | 83,243,757 | ||||||
United States Government Securities: 3.7% | |||||||
United States Treasury Note/Bond | |||||||
4,000,000 | 0.250%, 05/31/2025 | 3,923,752 | |||||
4,000,000 | 0.375%, 01/31/2026 | 3,899,064 | |||||
7,822,816 | |||||||
Total United States Government Securities | |||||||
(Cost $7,831,719) | 7,822,816 | ||||||
Total Bonds | |||||||
(Cost $191,763,707) | 189,093,395 | ||||||
Short-Term Investments: 26.7% | |||||||
United States Government Securities: 1.0% | |||||||
United States Treasury Bill | |||||||
500,000 | 0.116%, 08/12/2021 5,10 | 499,965 | |||||
1,500,000 | 0.096%, 12/30/2021 5,10 | 1,499,460 | |||||
1,999,425 | |||||||
Total United States Government Securities | |||||||
(Cost $1,998,699) | 1,999,425 |
Shares | Value | ||||||
Money Market Funds: 25.7% | |||||||
54,053,509 | Morgan Stanley Institutional | ||||||
Liquidity Funds – Government | |||||||
Portfolio , 0.026% 4 | $ | 54,053,509 | |||||
Total Money Market Funds | |||||||
(Cost $54,053,509) | 54,053,509 | ||||||
Total Short-Term Investments | |||||||
(Cost $56,052,208) | 56,052,934 | ||||||
Total Investments in Securities: 116.7% | |||||||
(Cost $247,815,915) | 245,146,328 | ||||||
Liabilities in Excess of Other Assets: (16.7)% | (35,065,686 | ) | |||||
Total Net Assets: 100.0% | $ | 210,080,642 |
1 | Variable rate security; rate shown is the rate in effect on March 31, 2021. |
2 | Interest only security. |
3 | Principal only security. |
4 | Annualized seven-day effective yield as of March 31, 2021. |
5 | Rate represents the yield to maturity from purchase price. |
6 | Perpetual call date security. Date shown is next call date. |
7 | Zero coupon security. |
8 | Inverse floating rate security. Reference interest rates are typically based on a negative multiplier or slope. Interest rate may also be subject to a ceiling or floor. |
9 | Security purchased on a forward-commitment basis (“TBA Commitments”). As of March 31, 2021, the total value of TBA Commitments was $51,153,710, or 24.3% of net assets. |
10 | The security or a portion of the security has been deposited as initial margin on open futures contracts and another portion is designated as collateral for futures contracts. As of March 31, 2021, the value of securities designated as collateral was $531,964, or 0.3% of net assets. |
Schedule of Futures Contracts at March 31, 2021 |
Short Futures | Unrealized | |||||||||||||||
Contracts | Number of | Notional | Appreciation | Notional | ||||||||||||
Outstanding | Contracts | Amount | (Depreciation) | Value | ||||||||||||
US Ultra Long | ||||||||||||||||
Bond CBT (06/2021) | ||||||||||||||||
(15 | ) | $ | (2,731,406 | ) | $ | 13,125 | $ | (2,718,281 | ) | |||||||
US 5 Year | ||||||||||||||||
Note CBT (06/2021) | ||||||||||||||||
(40 | ) | (4,957,500 | ) | 21,562 | (4,935,938 | ) | ||||||||||
US 10 Year | ||||||||||||||||
Note (06/2021) | (40 | ) | (5,275,313 | ) | 37,813 | (5,237,500 | ) | |||||||||
US Long Bond | ||||||||||||||||
CBT (06/2021) | (50 | ) | (7,755,938 | ) | 26,250 | (7,729,688 | ) | |||||||||
US 10 Year | ||||||||||||||||
Ultra Future (06/2021) | ||||||||||||||||
(140 | ) | (20,598,125 | ) | 481,875 | (20,116,250 | ) | ||||||||||
$ | (41,318,282 | ) | $ | 580,625 | $ | (40,737,657 | ) |
Strategic | Emerging | |||||||||||||||||||
Osterweis | Strategic | Investment | Opportunity | Total Return | ||||||||||||||||
Fund | Income Fund | Fund | Fund | Fund | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments in securities, at value (cost $97,075,884, | ||||||||||||||||||||
$5,002,204,190, $110,579,036, $189,651,410, and $247,815,915, respectively) | ||||||||||||||||||||
$ | 168,587,881 | $ | 5,176,997,620 | $ | 156,928,993 | $ | 230,598,918 | $ | 245,146,328 | |||||||||||
Cash | — | 394,437 | 6,685 | — | — | |||||||||||||||
Receivables: | ||||||||||||||||||||
Investment securities sold | — | — | — | 3,859,048 | 45,595,599 | |||||||||||||||
Fund shares sold | 327,877 | 16,553,560 | 4,451 | 219,596 | 92,233 | |||||||||||||||
Dividends and interest | 162,702 | 65,654,025 | 768,880 | 21,637 | 906,399 | |||||||||||||||
Variation margin receivable | — | — | — | — | 580,625 | |||||||||||||||
Prepaid expenses | 12,090 | 63,400 | 14,838 | 20,155 | 21,341 | |||||||||||||||
Total assets | 169,090,550 | 5,259,663,042 | 157,723,847 | 234,719,354 | 292,342,525 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Investment securities purchased | — | 49,215,500 | 250,000 | 2,374,983 | 81,320,760 | |||||||||||||||
Fund shares redeemed | 91 | 2,372,799 | — | 383,689 | 239,325 | |||||||||||||||
Distributions to shareholders | — | — | — | — | 50,657 | |||||||||||||||
Investment advisory fees, net | 110,947 | 3,103,451 | 130,571 | 163,508 | 81,332 | |||||||||||||||
Variation margin payable | — | — | — | — | 485,780 | |||||||||||||||
Administration fees | 11,018 | 252,073 | 10,675 | 13,032 | 14,035 | |||||||||||||||
Custody fees | 1,439 | 41,558 | 1,294 | 2,610 | 2,889 | |||||||||||||||
Fund accounting fees | 5,440 | 171,973 | 8,362 | 6,793 | 13,314 | |||||||||||||||
Transfer agent fees | 9,797 | 485,464 | 9,152 | 18,238 | 16,899 | |||||||||||||||
Trustee fees | 5,523 | 27,391 | 5,460 | 5,796 | 5,746 | |||||||||||||||
Audit fees | 27,100 | 27,100 | 24,600 | 22,100 | 22,100 | |||||||||||||||
Chief Compliance Officer fees | 2,861 | 2,861 | 2,861 | 2,861 | 2,861 | |||||||||||||||
Other accrued expenses | 4,186 | 73,185 | 3,957 | 10,657 | 6,185 | |||||||||||||||
Total Liabilities | 178,402 | 55,773,355 | 446,932 | 3,004,267 | 82,261,883 | |||||||||||||||
NET ASSETS | $ | 168,912,148 | $ | 5,203,889,687 | $ | 157,276,915 | $ | 231,715,087 | $ | 210,080,642 | ||||||||||
COMPUTATION OF NET ASSETS: | ||||||||||||||||||||
Net assets value (unlimited shares authorized) | $ | 168,912,148 | $ | 5,203,889,687 | $ | 157,276,915 | $ | 231,715,087 | $ | 210,080,642 | ||||||||||
Shares (unlimited number of shares | ||||||||||||||||||||
authorized without par value) | 7,916,335 | 457,535,381 | 8,747,052 | 11,591,642 | 20,631,213 | |||||||||||||||
Net assets value, offering, and | ||||||||||||||||||||
redemption price per share | $ | 21.34 | $ | 11.37 | $ | 17.98 | $ | 19.99 | $ | 10.18 | ||||||||||
COMPONENTS OF NET ASSETS: | ||||||||||||||||||||
Paid-in capital | $ | 91,072,576 | $ | 5,550,978,604 | $ | 105,394,462 | $ | 159,972,198 | $ | 212,613,740 | ||||||||||
Total distributable (accumulated) earnings (losses) | 77,839,572 | (347,088,917 | ) | 51,882,453 | 71,742,889 | (2,533,098 | ) | |||||||||||||
Net assets | $ | 168,912,148 | $ | 5,203,889,687 | $ | 157,276,915 | $ | 231,715,087 | $ | 210,080,642 |
Strategic | Emerging | |||||||||||||||||||
Osterweis | Strategic | Investment | Opportunity | Total Return | ||||||||||||||||
Fund | Income Fund | Fund | Fund | Fund | ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||
Income: | ||||||||||||||||||||
Dividends | $ | 1,582,735 | $ | 4,262,689 | $ | 1,323,465 | $ | 178,713 | $ | — | ||||||||||
(net of $22,222, $—, $18,844, $4,586, and $—, respectively, in foreign | ||||||||||||||||||||
withholding taxes and issuance fees) | ||||||||||||||||||||
Interest | 12,035 | 224,654,574 | 2,196,528 | 4,641 | 3,526,942 | |||||||||||||||
Other income | 465 | 2,408 | 468 | 456 | 477 | |||||||||||||||
Total investment income | 1,595,235 | 228,919,671 | 3,520,461 | 183,810 | 3,527,419 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Investment advisory fees | 1,430,837 | 32,892,224 | 1,338,497 | 1,680,948 | 869,916 | |||||||||||||||
Administration fees | 52,736 | 1,254,453 | 50,687 | 53,799 | 69,285 | |||||||||||||||
Transfer agent fees | 30,133 | 500,433 | 27,806 | 28,402 | 31,808 | |||||||||||||||
Sub-transfer agent fees | 29,813 | 3,359,858 | 21,868 | 80,697 | 97,493 | |||||||||||||||
Fund accounting fees | 27,256 | 591,073 | 40,222 | 29,288 | 59,527 | |||||||||||||||
Audit fees | 27,100 | 27,100 | 24,600 | 22,100 | 22,100 | |||||||||||||||
Registration fees | 22,996 | 102,585 | 14,735 | 31,737 | 23,968 | |||||||||||||||
Miscellaneous expense | 22,847 | 148,828 | 13,379 | 11,404 | 13,668 | |||||||||||||||
Trustee fees | 19,917 | 98,763 | 19,734 | 20,437 | 20,947 | |||||||||||||||
Legal fees | 12,553 | 8,381 | 8,395 | 8,261 | 8,334 | |||||||||||||||
Chief Compliance Officer fees | 10,445 | 10,445 | 10,445 | 10,445 | 10,445 | |||||||||||||||
Custody fees | 8,144 | 224,707 | 11,966 | 11,107 | 17,320 | |||||||||||||||
Reports to shareholders | 6,979 | 179,448 | 3,874 | 3,722 | 7,547 | |||||||||||||||
Insurance expense | 3,059 | 15,588 | 3,070 | 3,018 | 3,144 | |||||||||||||||
Futures commissions merchant interest expense | — | — | — | — | 408 | |||||||||||||||
Total expenses | 1,704,815 | 39,413,886 | 1,589,278 | 1,995,365 | 1,255,910 | |||||||||||||||
Fees (waived) recouped by the Adviser | (345,519 | ) | — | — | (146,407 | ) | — | |||||||||||||
Net expenses | 1,359,296 | 39,413,886 | 1,589,278 | 1,848,958 | 1,255,910 | |||||||||||||||
Net investment income (loss) | 235,939 | 189,505,785 | 1,931,183 | (1,665,148 | ) | 2,271,509 | ||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | 10,562,854 | (1,263,626 | ) | 8,741,907 | 57,176,496 | 4,002,243 | ||||||||||||||
Securities sold short | — | — | — | — | 48,047 | |||||||||||||||
Futures contracts | — | — | — | — | 2,143,957 | |||||||||||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||||||||||
Investments | 47,172,471 | 570,798,110 | 35,737,880 | 42,588,285 | (2,082,532 | ) | ||||||||||||||
Futures contracts | — | — | — | — | 577,813 | |||||||||||||||
Net realized and unrealized | ||||||||||||||||||||
gain (loss) on investments | 57,735,325 | 569,534,484 | 44,479,787 | 99,764,781 | 4,689,528 | |||||||||||||||
Net increase (decrease) in net | ||||||||||||||||||||
assets resulting from operations | $ | 57,971,264 | $ | 759,040,269 | $ | 46,410,970 | $ | 98,099,633 | $ | 6,961,037 |
Year Ended | Year Ended | |||||||
March 31, 2021 | March 31, 2020 | |||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | 235,939 | $ | 280,202 | ||||
Net realized gain (loss) on investments and distributions | 10,562,854 | 11,815,025 | ||||||
Change in net unrealized appreciation/depreciation of investments | 47,172,471 | (14,734,105 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 57,971,264 | (2,638,878 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Net distributions to shareholders | (8,185,457 | ) | (9,193,655 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from net change in outstanding shares 1 | 8,282,947 | (5,854,597 | ) | |||||
Total increase (decrease) in net assets | 58,068,754 | (17,687,130 | ) | |||||
NET ASSETS | ||||||||
Beginning of year | 110,843,394 | 128,530,524 | ||||||
End of year | $ | 168,912,148 | $ | 110,843,394 |
1 | A summary of share transactions is as follows: | ||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||
Shares sold | 769,170 | $ | 14,870,833 | 535,981 | $ | 9,270,100 | |||||||||||
Shares issued in reinvestment of distributions | 387,691 | 7,780,949 | 498,900 | 8,650,926 | |||||||||||||
Shares redeemed | (789,699 | ) | (14,368,835 | ) | (1,396,816 | ) | (23,775,623 | ) | |||||||||
Net increase (decrease) | 367,162 | $ | 8,282,947 | (361,935 | ) | $ | (5,854,597 | ) |
Year Ended | Year Ended | |||||||
March 31, 2021 | March 31, 2020 | |||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | 189,505,785 | $ | 229,154,527 | ||||
Net realized gain (loss) on investments and distributions | (1,263,626 | ) | (135,917,889 | ) | ||||
Change in unrealized appreciation/depreciation on investments | 570,798,110 | (344,362,398 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 759,040,269 | (251,125,760 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Net distributions to shareholders | (188,057,162 | ) | (231,265,711 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from net change in outstanding shares 1 | 637,300,676 | (1,063,367,677 | ) | |||||
Total increase (decrease) in net assets | 1,208,283,783 | (1,545,759,148 | ) | |||||
NET ASSETS | ||||||||
Beginning of year | 3,995,605,904 | 5,541,365,052 | ||||||
End of year | $ | 5,203,889,687 | $ | 3,995,605,904 |
1 | A summary of share transactions is as follows: | ||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||
Shares sold | 135,832,063 | $ | 1,491,508,830 | 100,128,867 | $ | 1,093,483,662 | |||||||||||
Shares issued in reinvestment of distributions | 14,755,280 | 162,788,234 | 18,814,566 | 203,284,360 | |||||||||||||
Shares redeemed | (93,945,451 | ) | (1,016,996,388 | ) | (219,422,950 | ) | (2,360,135,699 | ) | |||||||||
Net increase (decrease) | 56,641,892 | $ | 637,300,676 | (100,479,517 | ) | $ | (1,063,367,677 | ) |
Year Ended | Year Ended | |||||||
March 31, 2021 | March 31, 2020 | |||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | 1,931,183 | $ | 2,107,215 | ||||
Net realized gain (loss) on investments and distributions | 8,741,907 | 3,724,036 | ||||||
Change in net unrealized appreciation/depreciation of investments | 35,737,880 | (12,349,151 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 46,410,970 | (6,517,900 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Net distributions to shareholders | (5,020,422 | ) | (4,748,760 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from net change in outstanding shares 1 | 5,882,656 | (10,438,787 | ) | |||||
Total increase (decrease) in net assets | 47,273,204 | (21,705,447 | ) | |||||
NET ASSETS | ||||||||
Beginning of year | 110,003,711 | 131,709,158 | ||||||
End of year | $ | 157,276,915 | $ | 110,003,711 |
1 | A summary of share transactions is as follows: | ||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||
Shares sold | 753,175 | $ | 12,702,042 | 296,588 | $ | 4,452,109 | |||||||||||
Shares issued in reinvestment of distributions | 216,644 | 3,665,617 | 235,941 | 3,550,910 | |||||||||||||
Shares redeemed | (672,361 | ) | (10,485,003 | ) | (1,295,646 | ) | (18,441,806 | ) | |||||||||
Net increase (decrease) | 297,458 | $ | 5,882,656 | (763,117 | ) | $ | (10,438,787 | ) |
Year Ended | Year Ended | |||||||
March 31, 2021 | March 31, 2020 | |||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | (1,665,148 | ) | $ | (816,399 | ) | ||
Net realized gain (loss) on investments and distributions | 57,176,496 | 4,759,738 | ||||||
Change in unrealized appreciation/depreciation on investments | 42,588,285 | (12,017,714 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 98,099,633 | (8,074,375 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Net distributions to shareholders | (20,661,011 | ) | (6,684,032 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from net change in outstanding shares 1 | 64,056,767 | 7,965,134 | ||||||
Total increase (decrease) in net assets | 141,495,389 | (6,793,273 | ) | |||||
NET ASSETS | ||||||||
Beginning of year | 90,219,698 | 97,012,971 | ||||||
End of year | $ | 231,715,087 | $ | 90,219,698 |
1 | A summary of share transactions is as follows: | ||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||
Shares sold | 4,651,315 | $ | 88,828,433 | 1,623,096 | $ | 20,575,382 | |||||||||||
Shares issued in reinvestment of distributions | 642,334 | 12,782,445 | 248,001 | 2,998,331 | |||||||||||||
Shares redeemed | (2,313,252 | ) | (37,554,111 | ) | (1,300,840 | ) | (15,608,579 | ) | |||||||||
Net increase (decrease) | 2,980,397 | $ | 64,056,767 | 570,257 | $ | 7,965,134 |
Year Ended | Year Ended | |||||||
March 31, 2021 | March 31, 2020 | |||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | 2,271,509 | $ | 3,433,687 | ||||
Net realized gain (loss) on investments and futures contracts | 6,194,247 | (651,242 | ) | |||||
Change in net unrealized appreciation/depreciation on investments and futures contracts | (1,504,719 | ) | (16,311 | ) | ||||
Net increase (decrease) in net assets resulting from operations | 6,961,037 | 2,766,134 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Net distributions to shareholders | (6,398,924 | ) | (4,527,891 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from net change in outstanding shares 1 | 51,265,652 | 53,444,593 | ||||||
Total increase (decrease) in net assets | 51,827,765 | 51,682,836 | ||||||
NET ASSETS | ||||||||
Beginning of year | 158,252,877 | 106,570,041 | ||||||
End of year | $ | 210,080,642 | $ | 158,252,877 |
1 | A summary of share transactions is as follows: | ||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||
Shares sold | 9,805,224 | $ | 101,532,320 | 9,912,327 | $ | 101,153,293 | |||||||||||
Shares issued in reinvestment of distributions | 376,805 | 3,914,132 | 190,028 | 1,937,926 | |||||||||||||
Shares redeemed | (5,258,112 | ) | (54,180,800 | ) | (4,904,248 | ) | (49,646,626 | ) | |||||||||
Net increase (decrease) | 4,923,917 | $ | 51,265,652 | 5,198,107 | $ | 53,444,593 |
Year Ended March 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 14.68 | $ | 16.25 | $ | 19.15 | $ | 26.07 | $ | 25.14 | ||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income (loss) 1 | 0.03 | 0.04 | 0.08 | 0.09 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.75 | (0.31 | ) | 1.24 | 1.67 | 2.70 | ||||||||||||||
Total from investment operations | 7.78 | (0.27 | ) | 1.32 | 1.76 | 2.76 | ||||||||||||||
LESS DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.10 | ) | (0.07 | ) | (0.76 | ) | (1.49 | ) | (0.29 | ) | ||||||||||
From net realized gain | (1.02 | ) | (1.23 | ) | (3.46 | ) | (7.19 | ) | (1.54 | ) | ||||||||||
Total distributions | (1.12 | ) | (1.30 | ) | (4.22 | ) | (8.68 | ) | (1.83 | ) | ||||||||||
Net asset value, end of year | $ | 21.34 | $ | 14.68 | $ | 16.25 | $ | 19.15 | $ | 26.07 | ||||||||||
Total return | 53.48 | % | (2.88 | )% | 9.86 | % | 5.94 | % | 11.33 | % | ||||||||||
SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (millions) | $ | 168.9 | $ | 110.8 | $ | 128.5 | $ | 161.8 | $ | 244.3 | ||||||||||
Portfolio turnover rate | 37 | % | 35 | % | 43 | % | 47 | % | 50 | % | ||||||||||
RATIOS OF EXPENSES TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Before fees/expenses waived or recouped | 1.19 | % | 1.19 | % | 1.17 | % | 1.14 | % | 1.11 | % | ||||||||||
After fees/expenses waived or recouped | 0.95 | % | 0.95 | % | 0.95 | % | 1.12 | %2 | 1.11 | % | ||||||||||
RATIOS OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Before fees/expenses waived or recouped | (0.08 | )% | (0.02 | )% | 0.21 | % | 0.36 | % | 0.25 | % | ||||||||||
After fees/expenses waived or recouped | 0.16 | % | 0.22 | % | 0.43 | % | 0.38 | %2 | 0.25 | % |
1 | Calculated based on average shares outstanding during the period. |
2 | Effective January 1, 2018 the Adviser agreed to contractually limit expenses for the Fund to not exceed 0.95% of average net assets. Prior to January 1, 2018, Fund expenses were not subject to an expense limitation agreement. |
Year Ended March 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 9.97 | $ | 11.05 | $ | 11.27 | $ | 11.26 | $ | 10.57 | ||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income (loss) 1 | 0.45 | 0.47 | 0.50 | 0.51 | 0.57 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.40 | (1.06 | ) | (0.21 | ) | 0.00 | 2 | 0.69 | ||||||||||||
Total from investment operations | 1.85 | (0.59 | ) | 0.29 | 0.51 | 1.26 | ||||||||||||||
LESS DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.45 | ) | (0.49 | ) | (0.51 | ) | (0.50 | ) | (0.57 | ) | ||||||||||
Total distributions | (0.45 | ) | (0.49 | ) | (0.51 | ) | (0.50 | ) | (0.57 | ) | ||||||||||
Net asset value, end of year | $ | 11.37 | $ | 9.97 | $ | 11.05 | $ | 11.27 | $ | 11.26 | ||||||||||
Total return | 18.73 | % | (5.63 | )% | 2.67 | % | 4.64 | % | 12.18 | % | ||||||||||
SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (millions) | $ | 5,203.9 | $ | 3,995.6 | $ | 5,541.4 | $ | 6,058.0 | $ | 5,414.0 | ||||||||||
Portfolio turnover rate | 60 | % | 40 | % | 46 | % | 53 | % | 37 | % | ||||||||||
RATIO OF EXPENSES TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Ratio of expenses to average net assets | 0.86 | % | 0.86 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Ratio of net investment income (loss) to average net assets | 4.14 | % | 4.32 | % | 4.52 | % | 4.49 | % | 5.17 | % |
1 | Calculated based on average shares outstanding during the period. |
2 | Does not round to $0.01 or $(0.01), as applicable. |
Year Ended March 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.02 | $ | 14.30 | $ | 14.87 | $ | 14.77 | $ | 13.32 | ||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income (loss) 1 | 0.23 | 0.23 | 0.28 | 0.39 | 0.43 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.35 | (0.96 | ) | 0.44 | 0.49 | 1.53 | ||||||||||||||
Total from investment operations | 5.58 | (0.73 | ) | 0.72 | 0.88 | 1.96 | ||||||||||||||
LESS DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.11 | ) | (0.18 | ) | (0.37 | ) | (0.50 | ) | (0.51 | ) | ||||||||||
From net realized gain | (0.51 | ) | (0.37 | ) | (0.92 | ) | (0.28 | ) | — | |||||||||||
Total distributions | (0.62 | ) | (0.55 | ) | (1.29 | ) | (0.78 | ) | (0.51 | ) | ||||||||||
Net asset value, end of year | $ | 17.98 | $ | 13.02 | $ | 14.30 | $ | 14.87 | $ | 14.77 | ||||||||||
Total return | 43.15 | % | (5.67 | )% | 5.69 | % | 5.86 | % | 14.91 | % | ||||||||||
SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (millions) | $ | 157.3 | $ | 110.0 | $ | 131.7 | $ | 178.9 | $ | 196.4 | ||||||||||
Portfolio turnover rate | 51 | % | 51 | % | 47 | % | 55 | % | 53 | % | ||||||||||
RATIO OF EXPENSES TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Ratio of expenses to average net assets | 1.19 | % | 1.20 | % | 1.19 | % | 1.15 | % | 1.15 | % | ||||||||||
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Ratio of net investment income (loss) to average net assets | 1.44 | % | 1.57 | % | 1.91 | % | 2.56 | % | 3.06 | % |
1 | Calculated based on average shares outstanding during the period. |
Period from | ||||||||||||||||||||
Year Ended March 31, | November 30, 2016 | |||||||||||||||||||
through | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | March 31, 2017 1 | ||||||||||||||||
Net asset value, beginning of year/period | $ | 10.48 | $ | 12.06 | $ | 11.73 | $ | 10.62 | $ | 10.00 | ||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income (loss) 2 | (0.18 | ) | (0.10 | ) | (0.11 | ) | (0.12 | ) | (0.05 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 11.81 | (0.70 | ) | 1.25 | 3.26 | 0.67 | ||||||||||||||
Total from investment operations | 11.63 | (0.80 | ) | 1.14 | 3.14 | 0.62 | ||||||||||||||
LESS DISTRIBUTIONS: | ||||||||||||||||||||
From net realized gain | (2.12 | ) | (0.78 | ) | (0.81 | ) | (2.03 | ) | — | |||||||||||
Total distributions | (2.12 | ) | (0.78 | ) | (0.81 | ) | (2.03 | ) | — | |||||||||||
Net asset value, end of year/period | $ | 19.99 | $ | 10.48 | $ | 12.06 | $ | 11.73 | $ | 10.62 | ||||||||||
Total return | 111.27 | % | (7.60 | )% | 11.12 | % | 31.21 | % | 6.30 | %3 | ||||||||||
SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year/period (millions) | $ | 231.7 | $ | 90.2 | $ | 97.0 | $ | 63.4 | $ | 43.8 | ||||||||||
Portfolio turnover rate | 111 | % | 213 | % | 215 | % | 208 | % | 62 | %3 | ||||||||||
RATIOS OF EXPENSES TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Before fees/expenses waived or recouped | 1.19 | % | 1.24 | % | 1.22 | % | 1.29 | % | 1.60 | %4 | ||||||||||
After fees/expenses waived or recouped | 1.10 | %6 | 1.13 | %6 | 1.25 | %5 | 1.27 | %5 | 1.50 | %4 | ||||||||||
RATIOS OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Before fees/expenses waived or recouped | (1.08 | )% | (0.88 | )% | (0.88 | )% | (1.04 | )% | (1.48 | )%4 | ||||||||||
After fees/expenses waived or recouped | (0.99 | )%6 | (0.77 | )%6 | (0.91 | )%5 | (1.02 | )%5 | (1.38 | )%4 |
1 | Commenced operations on November 30, 2016. Information presented is from the period November 30, 2016 to March 31, 2017. |
2 | Calculated based on average shares outstanding during the period. |
3 | Not Annualized. |
4 | Annualized. |
5 | Effective June 30, 2017 the Adviser agreed to contractually limit expenses for the Fund to not exceed 1.25% of average net assets. Prior to June 30, 2017, Fund expenses were limited to 1.50% of average net assets. |
6 | Effective June 30, 2019 the Adviser agreed to contractually limit expenses for the Fund to not exceed 1.10% of average net assets. Prior to June 30, 2017, Fund expenses were limited to 1.25% of average net assets. |
Period from | ||||||||||||||||||||
Year Ended March 31, | December 30, 2016 | |||||||||||||||||||
through | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | March 31, 2017 1 | ||||||||||||||||
Net asset value, beginning of year/period | $ | 10.08 | $ | 10.14 | $ | 9.93 | $ | 10.23 | $ | 10.00 | ||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income (loss) 2 | 0.12 | 0.26 | 0.33 | 0.35 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.31 | 0.01 | 0.23 | (0.26 | ) | 0.22 | ||||||||||||||
Total from investment operations | 0.43 | 0.27 | 0.56 | 0.09 | 0.26 | |||||||||||||||
LESS DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.14 | ) | (0.28 | ) | (0.34 | ) | (0.35 | ) | (0.03 | ) | ||||||||||
From net realized gain | (0.19 | ) | (0.05 | ) | (0.01 | ) | (0.04 | ) | — | |||||||||||
Total distributions | (0.33 | ) | (0.33 | ) | (0.35 | ) | (0.39 | ) | (0.03 | ) | ||||||||||
Net asset value, end of year/period | $ | 10.18 | $ | 10.08 | $ | 10.14 | $ | 9.93 | $ | 10.23 | ||||||||||
Total return | 4.25 | % | 2.74 | % | 5.78 | % | 0.89 | % | 2.65 | %3 | ||||||||||
SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year/period (millions) | $ | 210.1 | $ | 158.3 | $ | 106.6 | $ | 102.2 | $ | 46.8 | ||||||||||
Portfolio turnover rate | 616 | % | 214 | % | 163 | % | 138 | % | 27 | %3 | ||||||||||
RATIOS OF EXPENSES TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Before fees/expenses waived or recouped | 0.65 | % | 0.66 | % | 0.67 | % | 0.70 | % | 2.55 | %4 | ||||||||||
After fees/expenses waived or recouped | 0.65 | % | 0.66 | % | 0.67 | % | 0.75 | % | 0.75 | %4 | ||||||||||
RATIOS OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Before fees/expenses waived or recouped | 1.18 | % | 2.51 | % | 3.27 | % | 3.47 | % | (0.30 | )%4 | ||||||||||
After fees/expenses waived or recouped | 1.18 | % | 2.51 | % | 3.26 | % | 3.42 | % | 1.50 | %4 |
1 | Commenced operations on December 30, 2016. Information presented is from the period December 30, 2016 to March 31, 2017. |
2 | Calculated based on average shares outstanding during the period. |
3 | Not Annualized. |
4 | Annualized. |
Note 1 – Organization |
Note 2 – Significant Accounting Policies |
A. | Security Valuation. All equity securities, which may include Real Estate Investment Trusts (“REITs”), Business Development Companies (“BDCs”) and Master Limited Partnerships (“MLPs”), that are traded on U.S. national or foreign securities exchanges are valued either at the last reported sale price on the exchange on which the security is principally traded or the exchange’s official closing price. If, on a particular day, an exchange-traded security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities which may include REITs, BDCs and MLPs that are not traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be used. | |
Debt securities are valued by using the evaluated mean price supplied by an approved independent pricing service. The independent pricing service may use various valuation methodologies including matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. These models generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. In the absence of a price from a pricing service, securities are valued at their respective fair values as determined in good faith by the Valuation Committee. | ||
Futures contracts are priced by an approved independent pricing service. Futures contracts are valued at the settlement price on the exchange on which they are principally traded. | ||
Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Valuation Committee. When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures adopted by the Funds’ Board of Trustees (the “Board”). Fair value pricing is an inherently subjective process, and no single standard exists for determining fair value. Different funds could reasonably arrive at different values for the same security. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without regard to such considerations. |
As described above, the Funds utilize various methods to measure the fair value of their investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are: |
Level 1 – | Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access. | |
Level 2 – | Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data. | |
Level 3 – | Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. | |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | |
The following is a summary of the inputs used to value the Funds’ investments and derivative positions as of March 31, 2021: |
Osterweis Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Common Stocks 1 | $ | 164,021,909 | $ | — | $ | — | $ | 164,021,909 | |||||||||
Short-Term Investments | 4,565,972 | — | — | 4,565,972 | |||||||||||||
Total Assets: | $ | 168,587,881 | $ | — | $ | — | $ | 168,587,881 | |||||||||
1 See Schedule of Investments for industry breakouts. | |||||||||||||||||
Osterweis Strategic Income Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Common Stocks 1 | $ | — | $ | — | $ | 134,303,605 | $ | 134,303,605 | |||||||||
Convertible Preferred Stocks 1 | 13,161,400 | 59,488,936 | — | 72,650,336 | |||||||||||||
Corporate Bonds 1,2 | — | 4,085,605,395 | 14,343,157 | 4,099,948,552 | |||||||||||||
Convertible Bonds 1 | — | 431,979,497 | — | 431,979,497 | |||||||||||||
Private Mortgage | |||||||||||||||||
Backed Obligations 1 | — | — | 16,913,269 | 16,913,269 | |||||||||||||
Warrants 1 | — | — | 848,561 | 848,561 | |||||||||||||
Short-Term Investments | 420,353,800 | — | — | 420,353,800 | |||||||||||||
Total Assets: | $ | 433,515,200 | $ | 4,577,073,828 | $ | 166,408,592 | $ | 5,176,997,620 | |||||||||
1 See Schedule of Investments for industry breakouts. | |||||||||||||||||
2 See Schedule of Investments for disclosure of Level 3 securities. |
The following is a reconciliation of the Osterweis Strategic Income Fund’s Level 3 assets for which significant unobservable inputs were used to determine fair value: |
Common | Corporate | Private Mortgage | |||||||||||||||||||
Stocks | Bonds | Backed Obligations | Warrants | Total | |||||||||||||||||
Balance as of March 31, 2020 | $ | 93,547,212 | $ | 135,158,322 | $ | 14,488,745 | $ | — | $ | 243,194,279 | |||||||||||
Acquisitions | — | 466,604 | — | 848,561 | 1,315,165 | ||||||||||||||||
Dispositions | — | (70,404,700 | ) | — | — | (70,404,700 | ) | ||||||||||||||
Accrued discounts/premiums | — | 65,811 | — | — | 65,811 | ||||||||||||||||
Realized gain (loss) | — | 260,344 | — | — | 260,344 | ||||||||||||||||
Change in unrealized | |||||||||||||||||||||
appreciation/depreciation | 40,756,393 | 18,266,749 | 2,424,524 | — | 61,447,666 | ||||||||||||||||
Transfer in and/or out of Level 3 1 | — | (69,469,973 | ) | — | — | (69,469,973 | ) | ||||||||||||||
Balance as of March 31, 2021 | $ | 134,303,605 | $ | 14,343,157 | $ | 16,913,269 | $ | 848,561 | $ | 166,408,592 | |||||||||||
Change in unrealized | |||||||||||||||||||||
appreciation/depreciation | |||||||||||||||||||||
for Level 3 investments | |||||||||||||||||||||
held at March 31, 2021 | $ | 40,756,393 | $ | (65,811 | ) | $ | 2,424,524 | $ | — | $ | 43,115,106 |
1 | Transfers were made into Level 2 and out of Level 3 due to the security being an evaluated price from a pricing service. |
Fair Value | ||||||||||
Type of Security | at 3/31/21 | Valuation Techniques | Unobservable Input | Input Value(s) | ||||||
Common Stocks | Market Comparable | Discount Rate, | ||||||||
Approach | EBITDA Multiple | 3.0%/5.5x | ||||||||
Broker Quotes | Market Data | $12.75 | ||||||||
$ | 134,303,605 | Estimated Proceeds | Market Data | $0.0007514 | ||||||
Corporate Bonds | $ | 14,343,157 | Issue Price | Market Data | $100.00 | |||||
Private Mortgage | ||||||||||
Backed Obligations | $ | 16,913,269 | Discounted Cash Flow | Adjustment to yield | 344 bps | |||||
Warrants | $ | 848,561 | Black Scholes | Volatility | 45% |
Significant increases (decreases) in any of those inputs in isolation would result in a significantly higher (lower) fair value measurement. Increases in the adjustment to yield would decrease price and decreases in the adjustment to yield would increase price. | |
The Trust’s valuation procedures have been adopted by the Trust’s Board, which has established a Valuation Committee to oversee valuation techniques. The Board ratifies valuation techniques quarterly. |
Osterweis Strategic | |||||||||||||||||
Investment Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Common Stocks 1 | $ | 109,720,396 | $ | — | $ | 898,707 | $ | 110,619,103 | |||||||||
Convertible Preferred Stocks 1 | 268,600 | 1,214,060 | — | 1,482,660 | |||||||||||||
Corporate Bonds 1 | — | 33,786,213 | 243,104 | 34,029,317 | |||||||||||||
Convertible Bonds 1 | — | 8,338,293 | — | 8,338,293 | |||||||||||||
Private Mortgage | |||||||||||||||||
Backed Obligations 1 | — | — | 497,928 | 497,928 | |||||||||||||
Warrants 1 | — | — | 4,637 | 4,637 | |||||||||||||
Short-Term Investments | 1,957,055 | — | — | 1,957,055 | |||||||||||||
Total Assets: | $ | 111,946,051 | $ | 43,338,566 | $ | 1,644,376 | $ | 156,928,993 | |||||||||
1 See Schedule of Investments for industry breakouts. |
The following is a reconciliation of the Osterweis Strategic Investment Fund’s Level 3 assets for which significant unobservable inputs were used to determine fair value: |
Common | Corporate | Private Mortgage | |||||||||||||||||||
Stocks | Bonds | Backed Obligations | Warrants | Total | |||||||||||||||||
Balance as of March 31, 2020 | $ | 803,897 | $ | 1,862,498 | $ | 426,550 | $ | — | $ | 3,092,945 | |||||||||||
Acquisitions | — | 7,908 | — | 4,637 | 12,545 | ||||||||||||||||
Dispositions | — | (1,450,300 | ) | — | — | (1,450,300 | ) | ||||||||||||||
Accrued discounts/premiums | — | 1,431 | — | — | 1,431 | ||||||||||||||||
Realized gain (loss) | — | 6,636 | — | — | 6,636 | ||||||||||||||||
Change in unrealized | |||||||||||||||||||||
appreciation/depreciation | 94,810 | 274,468 | 71,378 | — | 440,656 | ||||||||||||||||
Transfer in and/or out of Level 3 1 | — | (459,537 | ) | — | — | (459,537 | ) | ||||||||||||||
Balance as of March 31, 2021 | $ | 898,707 | $ | 243,104 | $ | 497,928 | $ | 4,637 | $ | 1,644,376 | |||||||||||
Change in unrealized | |||||||||||||||||||||
appreciation/depreciation | |||||||||||||||||||||
for Level 3 investments | |||||||||||||||||||||
held at March 31, 2021 | $ | 94,810 | $ | (1,431 | ) | $ | 71,378 | $ | — | $ | 164,757 |
1 | Transfers were made into Level 2 and out of Level 3 due to the security being an evaluated price from a pricing service. |
Fair Value | ||||||||||
Type of Security | at 3/31/21 | Valuation Techniques | Unobservable Input | Input Value(s) | ||||||
Common Stocks | Market Comparable | Discount Rate, | ||||||||
Approach | EBITDA Multiple | 3.0%/5.5x | ||||||||
Broker Quotes | Market Data | $12.75 | ||||||||
$ | 898,707 | Estimated Proceeds | Market Data | $0.0007514 | ||||||
Corporate Bonds | $ | 243,104 | Issue Price | Market Data | $100.00 | |||||
Private Mortgage | ||||||||||
Backed Obligations | $ | 497,928 | Discounted Cash Flow | Adjustment to yield | 344 bps | |||||
Warrants | $ | 4,637 | Black Scholes | Volatility | 45% |
Significant increases (decreases) in any of those inputs in isolation would result in a significantly higher (lower) fair value measurement. Increases in the adjustment to yield would decrease price and decreases in the adjustment to yield would increase price. | |
The Trust’s valuation procedures have been adopted by the Trust’s Board which has established a Valuation Committee to oversee valuation techniques. The Board ratifies valuation techniques quarterly. |
Osterweis Emerging | |||||||||||||||||
Opportunity Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Common Stocks 1 | $ | 217,300,981 | $ | — | $ | — | $ | 217,300,981 | |||||||||
Short-Term Investments | 13,297,937 | — | — | 13,297,937 | |||||||||||||
Total Assets: | $ | 230,598,918 | $ | — | $ | — | $ | 230,598,918 | |||||||||
1 See Schedule of Investments for industry breakouts. |
Osterweis Total Return Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Corporate Bonds 1 | $ | — | $ | 79,377,976 | $ | — | $ | 79,377,976 | |||||||||
Asset Backed Securities | — | 18,648,845 | — | 18,648,845 | |||||||||||||
Mortgage Backed Securities | — | 83,243,757 | — | 83,243,757 | |||||||||||||
United States | |||||||||||||||||
Government Securities 2 | — | 7,822,816 | — | 7,822,816 | |||||||||||||
Short-Term Investments | 54,053,509 | 1,999,425 | — | 56,052,934 | |||||||||||||
Total Assets: | $ | 54,053,509 | $ | 191,092,819 | $ | — | $ | 245,146,328 | |||||||||
Other Financial Instruments 3: | |||||||||||||||||
Interest Rate Contracts – Futures | $ | 580,625 | $ | — | $ | — | $ | 580,625 |
1 | See Schedule of Investments for industry breakouts. | |
2 | See schedule of investments for security type breakouts. | |
3 | Other Financial Instruments are derivative instruments not reflected in the Schedule of Investments, such as futures contracts, which are presented at the net unrealized appreciation/(depreciation) on the investment. |
The Funds have provided additional disclosures below regarding derivatives and hedging activity intending to improve financial reporting by enabling investors to understand how and why the Funds use futures contracts (a type of derivative), how they are accounted for and how they affect an entity’s results of operations and financial position. The Funds may use derivatives for risk management purposes or as part of its investment strategies. Derivatives are financial contracts whose values depend on, or are derived from, the value of an underlying asset, reference rate or index. The Funds may use derivatives to earn income and enhance returns, to hedge or adjust the risk profile of its portfolio, to replace more traditional direct investments and to obtain exposure to otherwise inaccessible markets. | |
The average notional amount for futures contracts is based on the monthly notional amounts. The notional amount for futures contracts represents the U.S. dollar value of the contract as of the day of opening the transaction or latest contract reset date. The Osterweis Total Return Fund’s average notional value of futures contracts outstanding during the year ended March 31, 2021, was $16,850,239. The following tables show the effects of derivative instruments on the financial statements. | |
Statements of Assets and Liabilities | |
Fair values of derivative instruments as of March 31, 2021: | |
Osterweis Total Return Fund |
Asset Derivatives as of | Liability Derivatives as of | ||||||||
March 31, 2021 | March 31, 2021 | ||||||||
Balance Sheet | Balance Sheet | ||||||||
Instrument | Location | Fair Value | Location | Fair Value | |||||
Interest Rate | Variation | Variation | |||||||
Contracts – Futures | margin receivable | $580,625 | margin payable | $485,780 |
Statements of Operations | |
The effect of derivative instruments on the Statements of Operations for the year ended March 31, 2021: | |
Osterweis Total Return Fund |
Change in Unrealized | ||||
Location of Gain (Loss) | Realized Gain | Appreciation/Depreciation | ||
on Derivatives | (Loss) on Derivatives | on Derivatives | ||
Instrument | Recognized in Income | Recognized in Income | Recognized in Income | |
Interest Rate | Realized and Unrealized | |||
Contracts – Futures | Gain (Loss) on Investments | $2,143,957 | $577,813 |
The Osterweis Fund, Osterweis Strategic Income Fund, Osterweis Strategic Investment Fund and Osterweis Emerging Opportunity Fund did not have derivatives activity during the year ended March 31, 2021. | ||
B. | Foreign Currency. Foreign currency amounts, other than the cost of investments, are translated into U.S. dollar values based upon the spot exchange rate prior to the close of regular trading. The cost of investments is translated at the rates of exchange prevailing on the dates the portfolio securities were acquired. The Funds include foreign exchange gains and losses from dividends receivable, interest receivable and other foreign currency denominated payables and receivables in Change in net unrealized appreciation/depreciation on foreign currency translation and Net realized gain (loss) on foreign currency translation. The Funds do not isolate that portion of realized and unrealized gain (loss) on investments resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in the market price of securities for financial reporting purposes. Fluctuations in foreign exchange rates on investments are thus included in Change in net unrealized appreciation/depreciation on investments and Net realized gain (loss) on investments. | |
C. | Futures Contracts. Each Fund may purchase or sell futures contracts and options thereon to hedge against changes in interest rates, securities (through index futures or options) or currencies. The purchase of futures contracts may be more efficient or cost-effective than buying the underlying securities or assets. A futures contract is an agreement that obligates the buyer to buy and the seller to sell a specified quantity of an underlying asset (or settle for cash the value of a contract based on an underlying asset, rate or index) at a specific price on the contract maturity date. Upon entering into a futures contract, each Fund is required to pledge to the counterparty an amount of cash, U.S. Government securities or other high-quality debt securities equal to the minimum “initial margin” requirements of the exchange or the broker. Pursuant to a contract entered into with a futures commission merchant, each Fund agrees to receive from or pay to the firm an amount of cash equal to the cumulative daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin” and are recorded by the Funds as unrealized gains or losses. When the contract is closed, the Funds record a gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Each Fund will cover its current obligations under futures contracts by the segregation of liquid assets or by entering into offsetting transactions or owning positions covering its obligations. The Funds’ use of futures contracts may involve risks that are different from, or possibly greater than, the risk associated with investing directly in securities or other more traditional instruments. These risks include the risk that the value of the futures contracts may not correlate perfectly, or at all, with the value of the assets, reference rates or indices that they are designed to track. Other risks include: an illiquid secondary market for a particular instrument and possible exchange-imposed price fluctuation limits, either of which may make it difficult or impossible to close out a position when desired; the risk that adverse price movements in an instrument can result in a loss substantially greater than the Funds’ initial investment in that instrument (in some cases, the potential loss is unlimited); and the risk that a counterparty will not perform its obligations. The Osterweis Total Return Fund had futures contracts activity during the year ended March 31, 2021. Realized and unrealized gains and losses are included in the Statements of Operations. The Osterweis Fund, Osterweis Strategic Income Fund, Osterweis Strategic Investment Fund and Osterweis Emerging Opportunity Fund did not have futures contracts activity during the year ended March 31, 2021. | |
D. | To-be-announced (“TBA”) Commitments. Each Fund may enter into TBA purchase commitments. In a TBA transaction, the TBA unit price and the estimated principal amount are established when a Fund enters into a contract, with the actual principal amount being within a specified range of the estimate. Securities purchased on a TBA basis are not settled until they are delivered to the Fund, which can be 15 to 45 days later. Beginning on the date the Fund enters into a TBA transaction, cash, U.S. government securities or other liquid securities are segregated in an amount equal in value to the purchase price of the TBA security. The Funds may enter into TBA sale commitments to hedge their portfolio positions or to sell securities they own under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. Unsettled TBA sale commitments are valued at current market value of the underlying securities. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, a Fund realizes a gain or |
loss on the commitment without regard to any unrealized gain or loss on the underlying security. If a Fund delivers securities under the commitment, the Fund realizes a gain or loss from the sale of the securities based upon the unit price established at the date the commitment was entered. The Osterweis Total Return Fund had TBAs during the year ended March 31, 2021. The Osterweis Fund, Osterweis Strategic Income Fund, Osterweis Strategic Investment Fund and Osterweis Emerging Opportunity Fund did not have TBA’s during the year ended March 31, 2021. | |
Statements of Assets and Liabilities | |
Fair values of TBA Commitments as of March 31, 2021: | |
Osterweis Total Return Fund |
Asset TBAs as of | Liability TBAs as of | ||||||||
March 31, 2021 | March 31, 2021 | ||||||||
Balance Sheet | Balance Sheet | ||||||||
Instrument | Location | Fair Value | Location | Fair Value | |||||
TBA Commitments | Receivable for | Payable for investment | |||||||
investment securities sold | $20,305,078 | securities purchased | $71,483,203 |
Statements of Operations | |
The effect of TBA Commitments on the Statements of Operations for the year ended March 31, 2021: | |
Osterweis Total Return Fund |
Change in Unrealized | ||||
Location of Gain | Realized Gain | Appreciation/Depreciation | ||
(Loss) on TBAs | (Loss) on TBAs | on TBAs | ||
Instrument | Recognized in Income | Recognized in Income | Recognized in Income | |
TBA Commitments | Realized and Unrealized | |||
Gain (Loss) on Investments | $666,992 | $(42,302) |
E. | Federal Income Taxes. Each Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all taxable income to its shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Therefore, no provision for federal income taxes or excise taxes has been made. | |
In order to avoid imposition of the excise tax applicable to regulated investment companies, each Fund intends to declare each year as dividends, in each calendar year, at least 98.0% of its net investment income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ended October 31) plus undistributed amounts, if any, from prior years. | ||
Net capital losses incurred after October 31, and within the taxable year, are deemed to arise on the first business day of each Fund’s next taxable year. Net investment losses incurred after December 31, and within the taxable year, are deemed to arise on the first business day of the Fund’s next taxable year. | ||
As of the fiscal year end March 31, 2021, there were no late-year or post-October losses for the Funds. | ||
As of the fiscal year end March 31, 2021, the Funds had the following capital loss carryovers available for federal income tax purposes: |
Capital Loss Carryovers | |||||||||
Short-Term | Long-Term | ||||||||
Osterweis Fund | $ | — | $ | — | |||||
Osterweis Strategic Income Fund | (8,092,848 | ) | (520,504,102 | ) | |||||
Osterweis Strategic Investment Fund | — | — | |||||||
Osterweis Emerging Opportunity Fund | — | — | |||||||
Osterweis Total Return Fund | — | — |
As of March 31, 2021, the Funds did not have any tax positions that did not meet the “more likely-than-not” threshold of being sustained by the applicable tax authority. Generally, tax authorities can examine all the tax returns filed for the last three years. The Funds identify their major tax jurisdictions as U.S. Federal and the Commonwealth of Massachusetts; however, as of March 31, 2021, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially. | ||
F. | Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are determined on an identified cost basis. Discounts/premiums on debt securities purchased are accreted/amortized over the life of the respective securities using the effective interest method. Dividend income is recorded on the ex-dividend date. Dividends received from REITs and MLPs are generally comprised of ordinary income, capital gains and may include return of capital. Interest income is recorded on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. | |
G. | Distributions to Shareholders. Distributions to shareholders from net investment income and net realized gains on securities for the Osterweis Fund, Osterweis Strategic Investment Fund and Osterweis Emerging Opportunity Fund normally are declared and paid on an annual basis. Distributions to shareholders from net investment income for the Osterweis Strategic Income Fund normally are declared and paid on a quarterly basis, and distributions to shareholders from net realized gains on securities normally are declared and paid on an annual basis. Distributions to shareholders from net investment income for the Osterweis Total Return Fund normally are declared and paid on a monthly basis, and distributions to shareholders from net realized gains on securities normally are declared and paid on an annual basis. Distributions are recorded on the ex-dividend date. | |
H. | Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
I. | Share Valuation. The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash and other assets, minus all liabilities by the total number of shares outstanding for each Fund, rounded to the nearest cent. The Funds’ shares will not be priced on the days on which the New York Stock Exchange is closed for trading. The offering and redemption price per share for each Fund is equal to each Fund’s net asset value per share. | |
J. | Guarantees and Indemnifications. In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote. | |
K. | Illiquid Securities. Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a Board approved Liquidity Risk management Program (“LRMP”) that requires, among other things, that the Funds limit their illiquid investments that are assets to no more than 15% of net assets. An illiquid investment is any security which may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. If at any time the Adviser determines that the value of illiquid investments held by the Funds exceeds 15% of each Funds’ net asset value, the Adviser will report the occurrence to the Trust as soon as practicable after the occurrence is observed, but no less than within one business day of verification of the occurrence. The information provided on any such report shall include an explanation of the extent and causes of the occurrence, the duration of the occurrence, and how the Adviser intends to bring the Funds’ illiquid investments back within the 15% limit within a reasonable period of time. The Adviser shall notify the Trust if the amount of the Funds’ illiquid investments that are assets remain above the 15% limit 30 calendar days from the initial occurrence (and at each consecutive 30 day period thereafter). |
L. | Offsetting Agreements. The Funds are subject to various netting arrangements, which govern the terms of certain transactions with counterparties. The arrangements allow the Funds to close out and net their total exposure to a counterparty in the event of a default with respect to all transactions governed under a single agreement with a counterparty. The following table presents derivative financial instruments that are subject to enforceable netting arrangements, collateral arrangements or other similar agreements as of March 31, 2021: | |
Osterweis Total Return Fund |
Gross Amounts | Net Amounts | Cash | |||||||||||||||||||||||
Offset in the | Presented in | Collateral | |||||||||||||||||||||||
Gross | Statements of | the Statements of | Financial | Pledged | Net | ||||||||||||||||||||
Description | Amounts | Assets and Liabilities | Assets and Liabilities | Instruments | (Received) | Amount | |||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||||
Contracts – Futures 1 | $ | 580,625 | $ | 580,625 | $ | 94,845 | $ | — | $ | — | $ | 94,845 | |||||||||||||
TBA Commitments 2 | 10,008,594 | 10,008,594 | — | — | — | — | |||||||||||||||||||
TBA Commitments 1 | 10,296,484 | 10,296,484 | — | — | — | — | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||||
Contracts – Futures 1 | 485,780 | 485,780 | 0 | — | — | — | |||||||||||||||||||
TBA Commitments 2 | 30,703,906 | 30,703,906 | 20,695,312 | — | — | 20,695,312 | |||||||||||||||||||
TBA Commitments 1 | 30,452,344 | 30,452,344 | 20,155,860 | — | — | 20,155,860 | |||||||||||||||||||
TBA Commitments 3 | 10,326,953 | — | 10,326,953 | — | — | 10,326,953 |
1 | Counterparty is Credit Suisse. | |
2 | Counterparty is Wells Fargo. | |
3 | Counterparty is Morgan Stanley. |
M. | Restricted Cash. Restricted cash represents amounts that are held by third parties under certain of the Fund’s derivative transactions. Such cash is excluded from cash and equivalents in the Statements of Assets and Liabilities. Interest income earned on restricted cash is recorded in other income on the Statements of Operations. | |
N. | Recently Issued Accounting Pronouncements. In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848)-Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 on the fund’s investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform. | |
O. | Reclassification of Capital Accounts. U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended March 31, 2021, the following adjustments were made: |
Distributable (Accumulated) | |||||||||
Earnings (Losses) | Paid-In Capital | ||||||||
Osterweis Fund | $ | (538,056 | ) | $ | 538,056 | ||||
Osterweis Strategic Income Fund | — | — | |||||||
Osterweis Strategic Investment Fund | (166,234 | ) | 166,234 | ||||||
Osterweis Emerging Opportunity Fund | (1,882,230 | ) | 1,882,230 | ||||||
Osterweis Total Return Fund | (349,430 | ) | 349,430 |
The permanent differences primarily relate to equalization or disposition of certain partnership investments. | ||
P. | Subsequent Events. In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. The Funds have determined that there were no subsequent events that would need to be disclosed in the Funds’ financial statements. |
Note 3 – Commitments and Other Related Party Transactions |
March 31, 2022 | March 31, 2023 | March 31, 2024 | Total | ||||||||||||||
Osterweis Fund | $ | 307,423 | $ | 312,022 | $ | 345,519 | $ | 964,964 | |||||||||
Osterweis Emerging Opportunity Fund | — | 122,596 | 146,407 | 269,003 |
Note 4 – Purchases and Sales of Securities |
Purchases | Sales | ||||||||
Osterweis Fund | $ | 51,579,042 | $ | 50,809,743 | |||||
Osterweis Strategic Income Fund | 2,839,177,152 | 2,406,200,451 | |||||||
Osterweis Strategic Investment Fund | 73,932,043 | 65,952,019 | |||||||
Osterweis Emerging Opportunity Fund | 205,027,484 | 168,602,662 | |||||||
Osterweis Total Return Fund | 1,163,577,879 | 1,112,397,572 |
Purchases | Sales | ||||||||
Osterweis Total Return Fund | $ | 182,940,759 | $ | 165,902,290 |
Note 5 – Distributions to Shareholders |
Ordinary Income | |||||||||
March 31, 2021 | March 31, 2020 | ||||||||
Osterweis Fund | $ | 731,863 | $ | 932,763 | |||||
Osterweis Strategic Income Fund | 188,057,162 | 231,265,711 | |||||||
Osterweis Strategic Investment Fund | 945,892 | 1,693,879 | |||||||
Osterweis Emerging Opportunity Fund | 16,776,530 | — | |||||||
Osterweis Total Return Fund | 6,398,924 | 4,527,891 | |||||||
Long-Term Capital Gains 1 | |||||||||
March 31, 2021 | March 31, 2020 | ||||||||
Osterweis Fund | $ | 7,453,594 | $ | 8,260,892 | |||||
Osterweis Strategic Income Fund | — | — | |||||||
Osterweis Strategic Investment Fund | 4,074,530 | 3,054,881 | |||||||
Osterweis Emerging Opportunity Fund | 3,884,481 | 6,684,032 | |||||||
Osterweis Total Return Fund | — | — |
1 | Designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3). |
Strategic | Emerging | ||||||||||||||||||||
Osterweis | Strategic | Investment | Opportunity | Total Return | |||||||||||||||||
Fund | Income Fund | Fund | Fund | Fund | |||||||||||||||||
Cost of investments | $ | 97,075,884 | $ | 5,006,883,398 | $ | 110,579,036 | $ | 189,801,555 | $ | 247,835,724 | |||||||||||
Gross tax unrealized appreciation | 72,350,661 | 228,765,416 | 47,307,739 | 50,316,053 | 1,932,607 | ||||||||||||||||
Gross tax unrealized depreciation | (838,664 | ) | (58,651,194 | ) | (957,782 | ) | (9,518,690 | ) | (4,622,003 | ) | |||||||||||
Net tax unrealized | |||||||||||||||||||||
appreciation/depreciation | 71,511,997 | 170,114,222 | 46,349,957 | 40,797,363 | (2,689,396 | ) | |||||||||||||||
Undistributed ordinary income | 1,459,601 | 11,393,811 | 3,418,331 | 21,552,756 | 155,721 | ||||||||||||||||
Undistributed long-term capital gain | 4,867,974 | — | 2,114,165 | 9,398,432 | — | ||||||||||||||||
Total distributable earnings | 6,327,575 | 11,393,811 | 5,532,496 | 30,951,188 | 155,721 | ||||||||||||||||
Other accumulated gain/(loss) | — | (528,596,950 | ) | — | (5,662 | ) | 577 | ||||||||||||||
Total distributable (accumulated) | |||||||||||||||||||||
earnings (losses) | $ | 77,839,572 | $ | (347,088,917 | ) | $ | 51,882,453 | $ | 71,742,889 | $ | (2,533,098 | ) |
Note 6 – Credit Facility |
Osterweis | |||||||||||||||||||||
Osterweis | Osterweis | Emerging | Osterweis | ||||||||||||||||||
Strategic | Strategic | Opportunity | Total Return | ||||||||||||||||||
Osterweis Fund | Income Fund | Investment Fund | Fund | Fund | |||||||||||||||||
Maximum available credit | $ | 15,000,000 | $ | 250,000,000 | $ | 15,000,000 | $ | 8,000,000 | $ | 10,000,000 | |||||||||||
Largest amount outstanding | |||||||||||||||||||||
on an individual day | — | — | — | — | — | ||||||||||||||||
Average balance when in use | — | — | — | — | — | ||||||||||||||||
Credit facility outstanding as of | |||||||||||||||||||||
March 31, 2021 | — | — | — | — | — | ||||||||||||||||
Average interest rate when in use | — | — | — | — | — |
Note 7 – Risks Associated with the Discontinuation of the London Interbank Offered Rate (“LIBOR”) |
Note 8 – (COVID-19) Pandemic |
Beginning | Ending | |||||||||||
Account Value | Account Value | Expenses Paid | ||||||||||
10/1/20 | 3/31/21 | During the Period 1 | ||||||||||
Osterweis Fund | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,184.60 | $ | 5.17 | ||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,020.19 | 4.78 | |||||||||
Strategic Income Fund | ||||||||||||
Actual | 1,000.00 | 1,061.20 | 4.32 | |||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,020.74 | 4.23 | |||||||||
Strategic Investment Fund | ||||||||||||
Actual | 1,000.00 | 1,160.50 | 6.25 | |||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,019.15 | 5.84 | |||||||||
Emerging Opportunity Fund | ||||||||||||
Actual | 1,000.00 | 1,274.90 | 6.24 | |||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,019.45 | 5.54 | |||||||||
Total Return Fund | ||||||||||||
Actual | 1,000.00 | 991.00 | 3.18 | |||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,021.74 | 3.23 |
1 | Expenses are equal to the annualized net expense ratio for the most recent six-month period. The annualized six-month expense ratios for the Osterweis Fund, Osterweis Strategic Income Fund, Osterweis Strategic Investment Fund, Osterweis Emerging Opportunity Fund and Osterweis Total Return Fund were 0.95%, 0.84%, 1.16%, 1.10% and 0.64% (reflecting fee waivers and recoupments in effect), respectively, multiplied by the average account value over the period multiplied by 182/365 (to reflect the one-half year period. |
Term of | Number of | ||||
Office(2) | Portfolios | Other | |||
and | in Fund | Directorships | |||
Positions | Length | Complex(3) | Held | ||
Name, Address | with the | of Time | Principal Occupation | Overseen | During Past |
and Age | Trust(1) | Served | During Past Five Years | by Trustees | Five Years |
Independent Trustees of the Trust | |||||
Kathleen T. Barr | Trustee | Indefinite | Former owner of a registered investment | Independent | |
(born 1955) | Term; Since | adviser, Productive Capital Management, Inc.; | Director, Muzinich | ||
c/o U.S. Bank Global | November | formerly, Chief Administrative Officer, Senior | BDC, Inc. (2019 | ||
Fund Services | 2018. | Vice President and Senior Managing Director | to present); | ||
2020 E. Financial Way | of Allegiant Asset Management Company | Independent | |||
Suite 100 | (merged with PNC Capital Advisors, LLC in 2009); | Trustee for the | |||
Glendora, CA 91741 | formerly, Chief Administrative Officer, Chief | William Blair | |||
Compliance Officer and Senior Vice President of | Funds (2013 | ||||
PNC Funds and PNC Advantage Funds (f/k/a | to present) | ||||
Allegiant Funds) (registered investment companies). | (21 series); | ||||
Independent | |||||
Trustee for the | |||||
AmericaFirst | |||||
Quantitative Funds | |||||
(2012 to 2016). | |||||
Wallace L. Cook | Trustee | Indefinite | Investment Consultant; formerly, Chief Executive | Trustee, The Dana | |
(born 1939) | Term; Since | Officer, Rockefeller Trust Co., (prior thereto Senior | Foundation. | ||
c/o U.S. Bank Global | May 1991. | Vice President), and Managing Director, Rockefeller | |||
Fund Services | & Co. (Investment Manager and Financial Advisor); | ||||
2020 E. Financial Way | formerly, Senior Vice President, Norton Simon, Inc. | ||||
Suite 100 | (international consumer products conglomerate). | ||||
Glendora, CA 91741 | |||||
Eric W. Falkeis | Trustee | Indefinite | Chief Executive Officer, Tidal ETF Services LLC (2018 | Independent | |
(born 1973) | Term; Since | to present); formerly, Chief Operating Officer, | Director, Muzinich | ||
c/o U.S. Bank Global | September | Direxion Funds (2013 to 2018); formerly, Senior Vice | BDC, Inc. (2019 | ||
Fund Services | 2011. | President and Chief Financial Officer (and other | to present); | ||
2020 E. Financial Way | Chairperson | Indefinite | positions), U.S. Bancorp Fund Services, LLC | Interested Trustee, | |
Suite 100 | Term; Since | (1997 to 2013). | Tidal ETF Trust | ||
Glendora, CA 91741 | August 2019. | (2018 to present) | |||
(21 series); Former | |||||
Interested Trustee, | |||||
Direxion Funds | |||||
(22 series), | |||||
Direxion Shares | |||||
ETF Trust | |||||
(112 series) and | |||||
Direxion Insurance | |||||
Trust (2013 | |||||
to 2018). | |||||
Term of | Number of | ||||
Office(2) | Portfolios | Other | |||
and | in Fund | Directorships | |||
Positions | Length | Complex(3) | Held | ||
Name, Address | with the | of Time | Principal Occupation | Overseen | During Past |
and Age | Trust(1) | Served | During Past Five Years | by Trustees | Five Years |
Independent Trustees of the Trust | |||||
Carl A. Froebel | Trustee | Indefinite | Formerly, President and Founder, National | None. | |
(born 1938) | Term; Since | Investor Data Services, Inc. (investment related | |||
c/o U.S. Bank Global | May 1991. | computer software). | |||
Fund Services | |||||
2020 E. Financial Way | |||||
Suite 100 | |||||
Glendora, CA 91741 | |||||
Steven J. Paggioli | Trustee | Indefinite | Consultant; formerly, Executive Vice President, | Independent | |
(born 1950) | Term; Since | Investment Company Administration, LLC | Director, Muzinich | ||
c/o U.S. Bank Global | May 1991. | (mutual fund administrator). | BDC, Inc. (2019 | ||
Fund Services | to present); | ||||
2020 E. Financial Way | Independent | ||||
Suite 100 | Trustee, AMG | ||||
Glendora, CA 91741 | Funds (1993 | ||||
to present) | |||||
(49 series); | |||||
Advisory Board | |||||
Member, | |||||
Sustainable | |||||
Growth | |||||
Advisers, LP. | |||||
Ashi S. Parikh | Trustee | Indefinite | Investment professional; formerly, Chief Executive and | Board of Directors | |
(born 1966) | Term; Since | Chief Investment Officer and various other positions, | Member, | ||
c/o U.S. Bank Global | June 2020 | RidgeWorth Investments, LLC (global investment | Investment | ||
Fund Services | management firm) (2006 to 2017); formerly, Chief | Working Group, | |||
2020 E. Financial Way | Investment Officer Institutional Growth Equities, | The Ohio State | |||
Suite 100 | Eagle Asset Management (financial advisor); formerly | University | |||
Glendora, CA 91741 | Sr. Managing Director, Growth Equities, Banc One | Endowments and | |||
Investment Advisors (financial advisor). | Foundation (2016 | ||||
to present); Board | |||||
of Directors, World | |||||
Methodist Council, | |||||
Investment | |||||
Committee (2018 | |||||
to present). | |||||
Independent | |||||
Trustee, PNC | |||||
Funds (2018 to | |||||
2019) (32 series); | |||||
Interested Trustee, | |||||
RidgeWorth Funds | |||||
(2014 to 2017) | |||||
(35 series). | |||||
Term of | Number of | ||||
Office(2) | Portfolios | Other | |||
and | in Fund | Directorships | |||
Positions | Length | Complex(3) | Held | ||
Name, Address | with the | of Time | Principal Occupation | Overseen | During Past |
and Age | Trust(1) | Served | During Past Five Years | by Trustees | Five Years |
Officers of the Trust | |||||
Elaine E. Richards | President | Indefinite | Senior Vice President, U.S. Bank Global Fund | Not | Not |
(born 1968) | Term; Since | Services since July 2007. | Applicable. | Applicable. | |
c/o U.S. Bank Global | March 2013. | ||||
Fund Services | |||||
2020 E. Financial Way | |||||
Suite 100 | |||||
Glendora, CA 91741 | |||||
Carl G. Gee, J.D. | Secretary | Indefinite | Assistant Vice President, U.S. Bank Global | Not | Not |
(born 1990) | & Vice | Term; Since | Fund Services since August 2016; Summer | Applicable. | Applicable. |
c/o U.S. Bank Global | President | February | Associate, Husch Blackwell LLP (2015); | ||
Fund Services | 2021. | Law Clerk, Brady Corporation (global printing | |||
615 East Michigan St. | systems, labels and safety products | ||||
Milwaukee, WI 53202 | company) (2014 to 2015). | ||||
Aaron J. Perkovich | Vice | Indefinite | Vice President, U.S. Bank Global Fund | Not | Not |
(born 1973) | President | Term; Since | Services since June 2006. | Applicable. | Applicable. |
c/o U.S. Bank Global | March 2017. | ||||
Fund Services | Treasurer | Indefinite | |||
615 East Michigan St. | Term; Since | ||||
Milwaukee, WI 53202 | August 2016. | ||||
Melissa Breitzman | Assistant | Indefinite | Assistant Vice President, U.S. Bank Global Fund | Not | Not |
(born 1983) | Treasurer | Term; Since | Services LLC since June 2005. | Applicable. | Applicable. |
c/o U.S. Bank Global | August 2016. | ||||
Fund Services | |||||
615 East Michigan St. | |||||
Milwaukee, WI 53202 | |||||
Craig Benton | Assistant | Indefinite | Assistant Vice President, U.S. Bank Global Fund | Not | Not |
(born 1985) | Treasurer | Term; Since | Services since November 2007. | Applicable. | Applicable. |
c/o U.S. Bank Global | August 2016. | ||||
Fund Services | |||||
615 East Michigan St. | |||||
Milwaukee, WI 53202 | |||||
Cory Akers | Assistant | Indefinite | Assistant Vice President, U.S. Bank Global Fund | Not | Not |
(born 1978) | Treasurer | Term; Since | Services since October 2006. | Applicable. | Applicable. |
c/o U.S. Bank Global | August 2017. | ||||
Fund Services | |||||
615 East Michigan St. | |||||
Milwaukee, WI 53202 | |||||
Term of | Number of | ||||
Office(2) | Portfolios | Other | |||
and | in Fund | Directorships | |||
Positions | Length | Complex(3) | Held | ||
Name, Address | with the | of Time | Principal Occupation | Overseen | During Past |
and Age | Trust(1) | Served | During Past Five Years | by Trustees | Five Years |
Officers of the Trust | |||||
Donna Barrette | Chief | Indefinite | Senior Vice President and Compliance Officer, | Not | Not |
(born 1966) | Compliance | Term; Since | U.S. Bank Global Fund Services | Applicable. | Applicable. |
c/o U.S. Bank Global | Officer | July 2011. | since August 2004. | ||
Fund Services | Anti- | ||||
615 East Michigan St. | Money | ||||
Milwaukee, WI 53202 | Laundering | ||||
Officer | |||||
Vice | |||||
President | |||||
(1) | All Trustees of the Trust are not “interested persons” of the Trust as defined under the 1940 Act (“Independent Trustees”). |
(2) | Under the terms of the Board’s retirement policy, a Trustee shall retire at the end of the calendar year in which he or she reaches the age of 78 (or, in the case of a Trustee who was over the age of 78 at the time the retirement policy was adopted in 2019, December 31, 2021). |
(3) | The Trust is comprised of numerous series managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Funds. The Funds do not hold themselves out as related to any other series within the Trust for purposes of investment and investor services, nor do they share the same investment advisor with any other series. |
Federal Tax Information (Unaudited) |
Osterweis Fund | 87.01% | ||
Osterweis Strategic Income Fund | 2.22% | ||
Osterweis Strategic Investment Fund | 25.57% | ||
Osterweis Emerging Opportunity Fund | 0.48% | ||
Osterweis Total Return Fund | 0.00% |
Osterweis Fund | 61.59% | ||
Osterweis Strategic Income Fund | 1.95% | ||
Osterweis Strategic Investment Fund | 22.24% | ||
Osterweis Emerging Opportunity Fund | 0.40% | ||
Osterweis Total Return Fund | 0.00% |
Osterweis Fund | 0.00% | ||
Osterweis Strategic Income Fund | 0.00% | ||
Osterweis Strategic Investment Fund | 8.93% | ||
Osterweis Emerging Opportunity Fund | 100.00% | ||
Osterweis Total Return Fund | 60.60% |
Information About Proxy Voting |
Information About the Portfolio Holdings |
Householding |
Information About the Funds Trustees |
Fund | Symbol | CUSIP |
Osterweis Fund | OSTFX | 742935406 |
Osterweis Strategic Income Fund | OSTIX | 742935489 |
Osterweis Strategic Investment Fund | OSTVX | 74316J771 |
Osterweis Emerging Opportunity Fund | OSTGX | 74316P744 |
Osterweis Total Return Fund | OSTRX | 74316P736 |
(b) | Not applicable. |
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees of the Trust has determined that there is at least one audit committee financial expert serving on its audit committee. Ms. Kathleen T. Barr, Messrs. Wallace L. Cook, Carl A. Froebel, Eric W. Falkeis, Steven J. Paggioli and Ashi S. Parikh and are each an “audit committee financial expert” and are considered to be “independent” as each term is defined in Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. There were no “Other services” provided by the principal accountant. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
Osterweis Fund
| FYE 3/31/2021 | FYE 3/31/2020 |
Audit Fees | $24,900 | $24,400 |
Audit-Related Fees | N/A | N/A |
Tax Fees | $2,700 | $2,700 |
All Other Fees | N/A | N/A |
Osterweis Strategic Income Fund
| FYE 3/31/2021 | FYE 3/31/2020 |
Audit Fees | $24,900 | $24,400 |
Audit-Related Fees | N/A | N/A |
Tax Fees | $2,700 | $2,700 |
All Other Fees | N/A | N/A |
Osterweis Strategic Investment Fund
| FYE 3/31/2021 | FYE 3/31/2020 |
Audit Fees | $22,350 | $21,900 |
Audit-Related Fees | N/A | N/A |
Tax Fees | $2,700 | $2,700 |
All Other Fees | N/A | N/A |
Osterweis Emerging Opportunity Fund
| FYE 3/31/2021 | FYE 3/31/2020 |
Audit Fees | $19,800 | $19,400 |
Audit-Related Fees | N/A | N/A |
Tax Fees | $2,700 | $2,700 |
All Other Fees | N/A | N/A |
| FYE 3/31/2021 | FYE 3/31/2020 |
Audit Fees | $19,800 | $19,400 |
Audit-Related Fees | N/A | N/A |
Tax Fees | $2,700 | $2,700 |
All Other Fees | N/A | N/A |
The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre‑approve all audit and non‑audit services of the registrant, including services provided to any entity affiliated with the registrant.
The percentages of fees billed by Tait, Weller & Baker LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
Osterweis Fund
Non-Audit Related Fees | FYE 3/31/2021 | FYE 3/31/2020 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
Osterweis Strategic Income Fund
Non-Audit Related Fees | FYE 3/31/2021 | FYE 3/31/2020 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
Osterweis Strategic Investment Fund
Non-Audit Related Fees | FYE 3/31/2021 | FYE 3/31/2020 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
Osterweis Emerging Opportunity Fund
Non-Audit Related Fees | FYE 3/31/2021 | FYE 3/31/2020 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
Osterweis Total Return Fund
Non-Audit Related Fees | FYE 3/31/2021 | FYE 3/31/2020 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
The registrant has not been identified by the U.S. Securities and Exchange Commission as having filed and annual report issued by a registered public accounting firm branch or office that is located in a foreign jurisdiction where the Public Company Accounting Oversight Board is unable to inspect or completely investigate because of a position taken by an authority in that jurisdiction.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6. Investments.
(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
The registrant has adopted a nominating committee charter that contains the procedures by which shareholders may recommend nominees to the registrant’s board of trustees. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees for the period.
Item 11. Controls and Procedures.
(a) The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the fourth fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Exhibits.
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.
(b) Certification pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Professionally Managed Portfolios
By (Signature and Title) /s/ Elaine E. Richards
Elaine E. Richards, President/Principal Executive Officer
Date June 11, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) /s/ Elaine E. Richards
Elaine E. Richards, President/Principal Executive Officer
Date June 11, 2021
By (Signature and Title) ) /s/ Aaron J. Perkovich
Aaron J. Perkovich, Treasurer/Principal Financial Officer
Date June 11, 2021
* Print the name and title of each signing officer under his or her signature.