Ticker: 
PFRNX
  |  CUSIP: 
707269700
AS OF 

Penn Capital Floating Rate Income Fund

Nav Daily $ Change Daily % Change Year To Date Inception Date Share Class
$9.25
^$0.02
^0.22%
-2.23%
Institutional
Fact Sheet Prospectus

Overview

The Floating Rate Income Fund seeks to provide high current income and benefit from actual or expected rising rates.

Differentiated profile characteristics of the Floating Rate Income Fund:

  • Focus on Single-B and above credit quality rated loans with emphasis on first-lien loans with strong covenants
  • Downside sell discipline with detailed covenant review, including change of control
  • Identify relative value opportunities and upgrade candidates

Objective

The objective of the Penn Capital Floating Rate Income Fund seeks to provide current income.

Strategy

The Fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in floating rate senior secured loans, floating rate senior corporate debt and other floating rate senior instruments.

Investment Type Examples

Bank loans, bonds, debt securities and other similar instruments issued by various domestic and foreign entities.

Industry Examples

Consumer Staples, Financials, Food, Beverage & Tobacco, Healthcare, Lodging & Leisure, Metals and Mining, Packaging, Technology, and Services.

Performance

AS OF 07/31/2022
Ticker: PFRNX | CUSIP: 707269700		 MTD QTD YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Penn Capital Floating Rate Income Fund
2.35%
2.35%
-3.50%
-2.30%
0.65%
1.91%
 n/a
2.70%
Credit Suisse Institutional Leveraged Loan Index
2.15%
2.15%
-1.93%
-0.08%
0.96%
2.39%
 n/a
3.27%
S&P/LSTA BB Ratings Loan Index
2.27%
2.27%
-1.08%
0.52%
1.62%
2.56%
 n/a
3.24%
AS OF 07/31/2022
Ticker: PFRNX | CUSIP: 707269700
Penn Capital Floating Rate Income Fund
MTD 2.35
QTD 2.35
YTD -3.50
1 Year -2.30
3 Year 0.65
5 Year 1.91
10 Year n/a
Since Inception
2.70
Credit Suisse Institutional Leveraged Loan Index
MTD 2.15
QTD 2.15
YTD -1.93
1 Year -0.08
3 Year 0.96
5 Year 2.39
10 Year n/a
Since Inception
3.27
S&P/LSTA BB Ratings Loan Index
MTD 2.27
QTD 2.27
YTD -1.08
1 Year 0.52
3 Year 1.62
5 Year 2.56
10 Year n/a
Since Inception
3.24

Investment Process

Step 1
Economic Outlook

Penn Capital’s team determines industries with potential relative value: the economic cycle, business environment, industry/sector analysis, and interest rates.

Step 2
Quantitative Screening

Penn Capital’s analysts and portfolio managers screen industries for companies with higher spreads to treasury relative to: comparable companies, industry averages, and historical averages.

Step 3
Other Proprietary Sources

Penn Capital’s analysts and portfolio managers source ideas from leveraging Penn Capital's equity relationships: equity investment styles & conferences, IPO & competitive intelligence, management meetings and road shows, industry experts, ex-government officials.

Step 4
Improving Fundamentals

Penn Capital's analysts and portfolio managers further screen for companies with improving financial metrics such as Debt/EBITDA, EBITDA/interest expense, free cash flow/debt.

Step 5
Liquidity Outlook

Penn Capital's analysts and portfolio managers screen for liquidity issues and perform research such as covenant analysis, bank loan availability, and asset value analysis.

Step 6
Qualitative Research

Penn Capital's analysts and portfolio managers then perform qualitative research such as company management, strong fundamentals, positive catalysts, suppliers/customers /competitors, and industry experts.

Step 7
Penn Capital Risk Rating (PRR)

Primary and secondary analysts and portfolio managers assign the proprietary Penn Capital Risk Rating (PRR) which includes forward looking estimates of credit quality, quantitative/qualitative factors, and rating agencies static.

Step 8
Team Review and Approval

The investment team consists of all portfolio managers and analysts; daily team meetings are primary forums for discussion and a consensus at team level is required prior to moving a recommendation on to High Yield Credit Committee.

Step 9
High Yield Credit Committee Approval*

Committee confirms PRR and relative value: review of ideas approved by investment team, considers impact of credit on portfolio construction

*After Step 9, an idea is either approved for portfolio inclusion or dismissed to company watch list with further due diligence required

Fees & Expenses

Total Fund annual net operating expenses (after fee waiver/expense reimbursement) are: Institutional Class 0.64%.

Total Fund annual gross operating expenses (before fee waiver/expense reimbursement) are: Institutional Class 1.16%.

The Fund's advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses do not exceed 0.64% for the Institutional Class shares of the Fund. This agreement is in effect until April 1, 2023. The Fund’s advisor is permitted to seek reimbursement from the Fund of fees waived for a period of three years from the date of the waiver or payment to the extent it does exceed the expenses limits.

Key Fund Documents

Legal Disclaimers

All investments involve risk, including possible loss of principal. The Fund invests in ETFs and is therefore subject to the same risks as the underlying securities in which the ETF invests as well as entails higher expenses than if invested into the underlying ETF directly. As interest rates rise the value of bond prices will decline. Credit risk refers to the loss in the value of a security based on a default in the payment of principal and/or interest of the security, or the perception of the market of such default. High-yield bonds have a higher risk of default or other adverse credit events, but have the potential to pay higher earnings over investment grade bonds. The value of convertible securities tends to decline as interest rates rise and, because of the conversion feature, tends to vary with fluctuations in the market value of the underlying securities. Bank loans in which the Fund may invest have similar risks to below investment grade fixed income securities. In the event of the insolvency of an agent bank, a loan could be subject to settlement risk as well as the risk of interruptions in the administrative duties performed in the day to day administration of the loan. The Fund invests in foreign securities and ADRs, which involves certain risks such as currency volatility, political and social instability and reduced market liquidity.

The performance data quoted here represents past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end please call 844-302-PENN (7366).

BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER RELEVANT INFORMATION CAN BE FOUND IN THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION, COPIES OF WHICH MAY BE OBTAINED BY CALLING 844-302-PENN (7366). PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.

Inception date: 11/30/2015. Performance reflects total returns, represents past performance, and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. All returns assume reinvestment of all dividend and capital gain distributions. Performance reflects the deduction of all actual fees and expenses of the related accounts during the periods shown and not the fees and expenses payable by the Penn Capital Floating Rate Income Fund. Penn Capital mutual funds are distributed by Foreside Fund Services, LLC (Foreside), which is not affiliated with Penn Capital or any of its affiliates. Penn Capital mutual funds are available to U.S. residents only.

Foreside Fund Services, LLC, Distributor.