Strategic Investment Fund
Investment Objective
The Fund seeks to attain long-term total returns and capital preservation.
Investment Strategy
The Fund will invest in both equity and fixed income securities that the Adviser believes can deliver attractive long-term returns and enhanced capital preservation. The allocation of assets between equity and fixed income securities will be based on the opportunity set of each asset class and the Adviser’s overall view of the macroeconomic and market environment.
Highlights
- Bottom-up equity and fixed income selection based on rigorous fundamental analysis
- Strategic top-down asset allocation based on the investment opportunity set and macroeconomic/market conditions
- Risk-aware strategy
- Experienced investment team – average of over 23 years of experience
- Adviser is majority-owned by its employees
Philosophy
We employ a risk-averse investment strategy predicated on the belief that strong long-term investment results are best achieved through a compounding of reasonable gains and the avoidance of major losses. We, therefore, consciously strive to limit downside exposure as much as to generate upside returns.
The two equity bear markets in the past decade highlight the importance of disciplined capital preservation strategies. We believe the capital destruction caused by bear markets argues for a flexible and risk-averse approach to investing for many investors. Structuring portfolios that combine the growth attributes of equities with the income and capital preservation attributes of fixed income can be a prudent long-term investment solution.
Over long periods of time, we believe a static balanced allocation of 50% equities and 50% fixed income has the potential to provide investors with returns rivaling an equity-only portfolio but with less principal risk, lower volatility and greater income. Additionally, strategically allocating assets heavier to equities in bull markets and heavier to fixed income in bear markets may further enhance returns and better protect capital.
For our Flexible Balanced portfolios, we seek to provide attractive returns over full market cycles and preserve capital using a blend of equities and fixed income. We strategically adjust the allocation of the portfolios based on our assessment of the attractiveness of individual investment opportunities and our macroeconomic and market views. No more than 75% of assets will be in either fixed income or equities at any given time. Conversely the minimum allocation to either asset class is 25%.
This net expense ratio is an annualized figure based on actual expenses accrued during the as-of month. This figure does not include any Acquired Fund Fees and Expenses (AFFE) that may be included in the Total Fund Expenses shown in the Prospectus and elsewhere on this website. During the period noted, fee waivers or expense reimbursements were in effect for the Strategic Investment Fund.
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 clicking here. Please read the prospectus carefully before investing to ensure the Fund is appropriate for your goals and risk tolerance.
Mutual fund investing involves risks. Loss of principal is possible.
The Osterweis Strategic Investment Fund may invest in small- and mid-capitalization companies, which tend to have limited liquidity and greater price volatility than large-capitalization companies. The Fund may invest in foreign securities, which will involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund may invest in Master Limited Partnerships, which involve risk related to energy prices and demand. The Fund may invest in debt securities that are un-rated or rated below investment grade. Such 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.