Published on July 7, 2020
The fund was rated over the past 3-years and overall against 289 funds in the nontraditional bond category, based on total returns as of May 31, 2020.
San Francisco, CA – Osterweis Capital Management (OCM), an independently owned asset manager, announced today that the Osterweis Total Return Fund (OSTRX) has received a five-star overall Morningstar rating. The fund was most recently rated over the past three years and overall against 289 funds in the nontraditional bond category based on total returns, as of May 31, 2020.
Speaking about the rating, Eddy Vataru, CFA, lead portfolio manager for the Osterweis Total Return Fund, said, “We are proud to receive Morningstar’s highest rating. This is a validation of our strategy, which is focused on actively managing the fund to take advantage of the opportunities presented within the investment grade market, as well as carefully managing downside risk. We are currently focused on strategically allocating between sectors based on their relative attractiveness, as well as disciplined security selection. We think this approach should serve our investors well even in a low interest rate environment.”
Carl Kaufman, Co-President and Co-CEO of OCM, said, “We launched the Total Return Fund to provide investors with a dedicated investment-grade fund that took a strategic approach to managing risk and return. The results show the team’s ability to effectively navigate the ever-evolving fixed income landscape.”
About the Osterweis Total Return Fund
The Osterweis Total Return Fund is an actively managed investment-grade fixed income fund that seeks to preserve capital and attain long-term total returns through a combination of security selection, sector rotation, and interest rate management. The Fund invests in investment grade corporates, agency mortgages, and both nominal and inflation-protected Treasuries, and uses futures to hedge interest rate exposure. It is managed by Eddy Vataru, CFA, John Sheehan, CFA, and Daniel Oh. For more information about the fund, visit our website here.
About Osterweis Capital Management
Established in 1983, Osterweis Capital Management is an independent asset manager with $5.3 billion under management as of March 31, 2020. The firm provides investment management services to institutions and individuals through mutual funds and separate accounts, offering both equity and fixed income investment strategies.
Michelle A. Swager
Vice President & Director of Communications & Marketing
The Adviser has contractually agreed to waive certain fees through June 30, 2021.
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 Total Return Fund may invest in fixed income securities which are subject to credit, default, extension, interest rate and prepayment risks. It may also make investments in derivatives that may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. The Fund may invest in in debt securities that are un-rated or rated below investment grade. Lower-rated securities may present an increased possibility of default, price volatility or illiquidity compared to higher-rated securities. Investments in foreign and emerging market securities involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks may increase for emerging markets. Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used. Investments in preferred securities have an inverse relationship with changes in the prevailing interest rate. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. It may also make investments in derivatives that may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. The Fund may invest in municipal securities which are subject to the risk of default.
The Morningstar Rating™ for funds, or “star rating,” is calculated for mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period has the greatest impact because it is included in all three rating periods.
Morningstar Rankings represent a fund’s total-return percentile rank relative to all funds that have the same Morningstar Category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Past performance does not guarantee future results.
© 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Investment grade bonds are bonds with high and medium credit quality assigned by a rating agency. For Standard and Poor’s, investment grade bonds include BBB ratings or higher. For Moody’s, the cutoff is Baa.
Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC.