Shareholder Letter

July 17, 2019

Dear Shareholder,

During the second quarter of 2019, the Osterweis Fund (the Fund) generated a total return of 3.51% versus 4.30% for the S&P 500 Index (the S&P 500). The Fund’s annualized total returns over the one-year, five-year, ten-year and twenty-year periods ending June 30, 2019 were 9.59%, 4.05%, 9.60% and 7.63%, respectively, compared to 10.42%, 10.71%, 14.70% and 5.90% 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 1.18% and net expense ratio was 0.96% as of March 31, 2019. The Adviser has contractually agreed to waive fees through June 30, 2020. The net expense ratio is applicable to investors.

Domestic stock markets continued to perform well during the second quarter, with the S&P 500 up 18.5% year-to-date. Equity investors were encouraged by progress in the U.S./China trade negotiations, historically low unemployment, and, perhaps most importantly, dovish positioning from the Federal Reserve (the Fed). Fixed income markets also had a strong second quarter as investors piled into Treasuries, but it was essentially a flight-to-quality rally. The widely anticipated Fed rate cut in July, combined with persistently low inflation, drove fixed income investors to lock in rates before they fell even further.

Although it is uncommon for Treasury rallies and equity rallies to coincide, it makes sense given that economic data have been mixed recently. In our view, the most likely outcome is a continuation of the status quo, primarily due to an accommodative Fed and healthy labor markets. We expect the slow-growth recovery to continue, albeit with ebbs, flows, and some volatility.

Nonetheless, given the potential range of outcomes, we believe discipline and patience are both essential right now. Because delivering strong earnings will become increasingly critical we are concentrating our investments in companies able to grow in any economic environment, either by riding durable technological trends or harnessing very company-specific drivers of success. At this point in the cycle, we want to own companies with robust balance sheets, proven management and ample cash generation ability. In sum, we want to focus on companies able to compound earnings and cash flows over an extended period through both good times and bad.

We thank you for your continued confidence in our management.

Sincerely,

John Osterweis & Team

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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 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. The Fund may invest 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 debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

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. One cannot invest directly in an index.

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.

Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g., depreciation) and interest expense to pretax income.

Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC. [40493]

Investment Team

Account Access

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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.

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 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. The Fund may invest 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 debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

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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