Investment Strategy

The Fund invests primarily in income bearing securities. We will adjust the allocation of the Fund’s assets among these securities as dictated by changes in interest rates as well as the overall economic environment.


  • Strategic top-down asset allocation based on macroeconomic conditions
  • Bottom-up security selection based on rigorous fundamental and credit analysis
  • Unconstrained, risk-aware strategy
  • Experienced investment team
  • Adviser is majority-owned by its employees

Minimum Investments

  • $5,000 initial investment for regular accounts
  • $1,500 initial investment for IRA or other tax-deferred accounts
  • $100 for subsequent investments

Fund Facts

Ticker OSTIX
CUSIP 742935489
Inception Date 8/30/2002
Load None
12b-1 Fees None
Redemption Fee None
Net Assets
(as of 10/31/19)
$5.3 billion
Fiscal Year Turnover
(as of 3/31/19)
Gross Expense Ratio
(as of 3/31/19)
Invest With Us


Quarter-End Performance (as of 9/30/19)

  1 MONTH QTD YTD 1 YEAR 3 YEAR 5 YEAR 7 YEAR 10 YEAR 15 YEAR Since Inception
OSTIX -0.28% -0.28% 4.83% 1.49% 3.95% 3.73% 4.25% 5.38% 5.76% 6.45%
Bloomberg Barclays U.S. Aggregate Bond Index -0.53 2.27 8.52 10.30 2.92 3.38 2.72 3.75 4.21 4.32
OSTIX Bloomberg Barclays U.S. Aggregate Bond Index
1 MONTH -0.28 -0.53
QTD -0.28 2.27
YTD 4.83 8.52
1 YEAR 1.49 10.30
3 YEAR 3.95 2.92
5 YEAR 3.73 3.38
7 YEAR 4.25 2.72
10 YEAR 5.38 3.75
15 YEAR 5.76 4.21
Since Inception
6.45 4.32

Gross expense ratio as of 3/31/2019: 0.85%

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 their original cost. Current performance of the Fund may be higher or lower than the performance quoted.

Rates of return for periods greater than one year are annualized.

Monthly Performance


We believe that by avoiding the “style box” trap and having the flexibility to invest in multiple classes of bonds, we can manage each portfolio in such a way as to emphasize the most attractive sector at any given time. By strategically shifting out of overvalued assets, we strive to minimize potential risk and produce better returns over time.

Furthermore, our research has shown that the various sectors of the bond market behave differently under different economic conditions. For instance, during periods of economic expansion, high yield and convertible bonds tend to perform well as rising corporate profits lead to improved credit profiles. Conversely, they tend to perform very poorly during periods of economic contraction as credit profiles deteriorate. During such recessionary periods, investment grade bonds generally prove to be better performers because of their responsiveness to declining interest rates.

Within particular sectors we choose individual securities based on rigorous fundamental and credit analysis. We emphasize a thorough understanding of each company’s balance sheet by determining the company’s ability to generate recurring free cash flow from its operations. As a result, we do a significant amount of work to determine the company’s business prospects as well as the positive and negative levers in its financial model, which influence the company’s ability to generate cash flow. We believe that we find our best investments in companies that have great products, a competitive advantage that gives them pricing power in the market, a consistent operating history, and management that operate the company as if they own it. Finally, we determine what we believe to be the appreciation potential versus the downside risk to gauge the attractiveness of the security versus other available investment opportunities.

Over time, we expect the maturity structure, credit quality, and sector concentration of the portfolio will differ during periods of economic contraction versus economic expansion. In short, we will employ a strategy based on the belief that over the long term positive returns can be achieved, and losses minimized, through careful security selection and by shifting the allocation among fixed income sectors.

Investment Team

Account Access

Email Update

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 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 Strategic Income 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. 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. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Small- and mid-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Higher turnover rates may result in increased transaction costs, which could impact performance. From time to time, the Fund may have concentrated positions in one or more sectors subjecting the Fund to sector emphasis risk. The Fund may invest in municipal securities which are subject to the risk of default.

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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