Penn Capital Opportunistic High Income Fund
| Nav | Daily $ Change | Daily % Change | Year To Date | Inception Date | Share Class |
|---|---|---|---|---|---|
|
$8.75
|
-$0.02
|
-0.23%
|
-8.63%
|
|
Institutional
|
Overview
The Opportunistic High Income Fund seeks to provide total return through interest income, capital appreciation, and duration management with durability through down markets. Residual returns are generated through tactical allocation of capital toward the optimal risk-return opportunities available in the market.
Differentiated profile characteristics of the Opportunistic High Income Fund:
- Well diversified portfolio of credit instruments
- Focus on Single-B and above credit quality rated bonds with tactical investing in sub B-rated, stressed, distressed, and convertible bonds and loans
- Identify relative value and upgrade candidates where return opportunity exceeds risk of downside loss
- Duration risk management
- Downside sell discipline with detailed covenant review, including change of control
Objective
The Penn Capital Opportunistic High Income Fund seeks to provide total return through interest income and capital appreciation.
Strategy
The Fund seeks to maintain a well-diversified portfolio of credit instruments with dual objectives of interest income and total return opportunities.
Investment Type Examples
High yield securities including bonds, notes, debentures, payment-in-kind bonds, debt obligations used by real estate investment trusts (REITs), and convertible securities.
Industry Examples
Aerospace & Defense, Consumer Products, Food & Drug Retail, Financials, Healthcare, Media/Broadcasting, Metals and Mining, Printing/Publishing, Telecommunications, and Utilities.
Performance
| AS OF 07/31/2022 Ticker: PHYNX | CUSIP: 707269502 |
MTD | QTD | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|---|
|
Penn Capital Opportunistic High Income Fund
|
5.46%
|
5.46%
|
-9.57%
|
-8.62%
|
0.65%
|
2.10%
|
n/a |
4.11%
|
|
ICE BofA US HY Constrained Index
|
6.02%
|
6.02%
|
-8.86%
|
-7.73%
|
1.72%
|
2.90%
|
n/a |
5.19%
|
|
50% ICE BofA US HY Constrained Index / 50% S&P/LSTA BB Ratings Loan Index
|
4.13%
|
4.13%
|
-5.02%
|
-3.66%
|
1.71%
|
2.76%
|
n/a |
4.24%
|
| AS OF 07/31/2022 Ticker: PHYNX | CUSIP: 707269502 |
|
|---|---|
| Penn Capital Opportunistic High Income Fund | |
| MTD | 5.46 |
| QTD | 5.46 |
| YTD | -9.57 |
| 1 Year | -8.62 |
| 3 Year | 0.65 |
| 5 Year | 2.10 |
| 10 Year | n/a |
| Since Inception
|
4.11 |
| ICE BofA US HY Constrained Index | |
| MTD | 6.02 |
| QTD | 6.02 |
| YTD | -8.86 |
| 1 Year | -7.73 |
| 3 Year | 1.72 |
| 5 Year | 2.90 |
| 10 Year | n/a |
| Since Inception
|
5.19 |
| 50% ICE BofA US HY Constrained Index / 50% S&P/LSTA BB Ratings Loan Index | |
| MTD | 4.13 |
| QTD | 4.13 |
| YTD | -5.02 |
| 1 Year | -3.66 |
| 3 Year | 1.71 |
| 5 Year | 2.76 |
| 10 Year | n/a |
| Since Inception
|
4.24 |
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 our 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.
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 the company watch list with further due diligence required
Fees & Expenses
Total Fund annual net operating expenses (after fee waiver/expense reimbursement) are: Institutional Class 0.72%
Total Fund annual gross operating expenses (before fee waiver/expense reimbursement) are: Institutional Class 1.65%.
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 0.72% of the average daily net assets 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
- Fund Factsheet
- Fund Holdings
- Prospectus
- Q1 Holdings
- SAI (Statement of Additional Information)
- Institutional Share Class Application
- Institutional Share Class IRA Application
- Institutional Share Class Entity Account Application
- IRA Transfer Form
- IRA Distribution Form
- Annual Report
- Q3 Holdings
- Semi-Annual Report
- Certification of Beneficial Owners Form for Entities
- Mutual Funds Redemption Form
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 Multi-Credit High 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.