Shareholder Letter

April 25, 2017

Dear Shareholder,

During the first quarter of 2017, the Osterweis Institutional Equity Fund (the Fund) generated a total return of 4.85%, versus 6.07% for the S&P 500 Index (the S&P 500). The Fund’s annualized total returns over the one year, three year and since inception (July 31, 2012) periods ending March 31, 2017 were 13.72%, 2.92% and 9.84%, respectively, compared to 17.17%, 10.37% and 14.66% for the S&P 500 over the same periods.

Performance data quoted represent past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original investment. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (866) 236 0050. An investment should not be made solely on returns. The Fund’s Gross Expense Ratio was 1.28% and the Net Expense Ratio* was 1.00% as of March 31, 2016.

Despite a third round of rate tightening by the Federal Reserve (the Fed) in March, the markets remained fairly steady, indicating some confidence the U.S. economy can now stand on its own two feet with less monetary accommodation. As discussed in the attached Investment Outlook, there is still uncertainty around the impact of the Trump agenda and its potentially negative fallout from some of the protectionist and anti-immigration initiatives. For now, rising employment and higher wages could further fuel the current economic expansion, a positive for equities, particularly if the Fed is successful in keeping inflation tame without dampening growth.

As we have mentioned in previous letters, we feel confident that the Fund is well positioned for the current market environment. We are maintaining our disciplined investment approach and are actively seeking out companies whose prospects reflect industry- or company-specific factors independent of broader economic trends and which can steadily grow their dividends. We think these types of companies, bought at the right price, should do well in this economy and over time.

We thank you for your continued confidence in our management.

Sincerely,

John Osterweis & Team

 

Enclosure

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*Osterweis Capital Management, LLC has contractually agreed to wave certain fees through at least June 30, 2017.

This commentary contains the current opinions of the author as of the date above, which are subject to change at any time. This commentary has been distributed for informational purposes only and is not a recommendation or offer of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed.

Mutual Fund investing involves risk. Principal loss is possible. The Osterweis Institutional Equity Fund may invest in medium and smaller sized companies, which involve additional risks such as limited liquidity and greater volatility. The Fund may invest in foreign and emerging market securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks may increase for emerging markets. The Fund may invest in Master Limited Partnerships, which involve risk related to energy prices, demand and changes in tax code. From time to time, the Fund may have concentrated positions in one or more sectors subjecting the Fund to sector emphasis risk.

The S&P 500 Index is an unmanaged index that is widely regarded as the standard for measuring large-cap U.S. stock market performance. The index does not incur expenses, is not available for investment, and includes the reinvestment of dividends.

Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

The Osterweis Funds are available by prospectus only. The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the Funds. You may obtain a summary or statutory prospectus by calling toll free at (866) 236-0050, or by visiting osterweis.com. Please read the prospectus carefully before investing to ensure the Fund is appropriate for your goals and risk tolerance.

Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC. [26401]

Investment Team

Account Access

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*Osterweis Capital Management, LLC has contractually agreed to reduce its fees through at least June 30, 2017.

This commentary contains the current opinions of the author as of the date above, which are subject to change at any time. This commentary has been distributed for informational purposes only and is not a recommendation or offer of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed.

The S&P 500 Index is an unmanaged index that is widely regarded as the standard for measuring large-cap U.S. stock market performance. The index does not incur expenses, is not available for investment, and includes the reinvestment of dividends.

Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Free cash flow represents the cash that a company is able to generate after laying out the money required to maintain and expand the company’s asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value.

During the period noted, contractual fee waivers were in effect for the Osterweis Institutional Equity Fund. The Expense Cap will remain in effect until at least June 30, 2017. The Fund may reimburse the Adviser for waived expenses, and therefore, the net expense ratio could be higher than the gross expense ratio.

The Osterweis Funds are available by prospectus only. The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the Funds. You may obtain a summary or statutory prospectus by calling toll free at (866) 236-0050, or by visiting www.osterweis.com/statpro. Please read the prospectus carefully before investing to ensure the Fund is appropriate for your goals and risk tolerance.

Mutual fund investing involves risk. Principal loss is possible.

The Osterweis Institutional Equity Fund may invest in medium and smaller sized companies, which involve additional risks such as limited liquidity and greater volatility. The Fund may invest in foreign and emerging market securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks may increase for emerging markets. The Fund may invest in Master Limited Partnerships, which involve risk related to energy prices, demand and changes in tax code. From time to time, the Fund may have concentrated positions in one or more sectors subjecting the Fund to sector emphasis risk.

While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for more information.

Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC.

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