Penn Capital Senior Floating Rate Income Fund

Effective July 31, 2017, the fund’s net expenses are 0.67% and 0.92% for the Institutional and Investor Classes, respectively.

 

DAILY PRICING (as of 9/20/2017)

Ticker: PFRNX
CUSIP: 707269700
Inception Date: 12/1/2015

NAV
Changes:
($ Value)
Changes:
(%)
Changes
YTD: (%)
10.21 0 0 2.62

 

DAILY PRICING (as of 12/1/2015)

Ticker: PFRVX
CUSIP: 707269809
Inception Date: 12/1/2015 (Institutional Share Class)

NAV Changes:
($ Value)
Changes:
(%)
Changes
YTD: (%)
N/A N/A N/A N/A

 

For standardized performance, click here

The performance data quoted here represents past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end please call 844-302-PENN (7366).

A redemption fee of 2.00% will be imposed on redemptions or exchanges of shares you have owned for 90 days or less.

Objective: The objective of the Penn Capital Senior Floating Rate Income Fund seeks to provide current income.

Strategy: The Fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in floating rate senior secured loans, floating rate senior corporate debt and other floating rate senior instruments.

Investment Type Examples:  Bank loans, bonds, debt securities and other similar instruments issued by various domestic and foreign entities

Sector and Industry Examples: Consumer Staples, Financials, Food, Beverage & Tobacco, Healthcare, Lodging & Leisure, Metals and Mining, Packaging, Technology, and Services

Penn Capital’s initial universe consists of all U.S. dollar denominated, non-investment grade corporate debt (over $1.5 trillion market; over 1,000 issuers)

Step 1 – Economic Outlook

Penn Capital’s team determines industries with potential relative value: the economic cycle, business environment, industry/sector analysis, and interest rates

Step 2 – Quantitative Screening

Penn Capital’s analysts and portfolio managers screen industries for companies with higher spreads to treasury relative to: comparable companies, industry averages, and historical averages

Step 3 – Other Proprietary Sources

Penn Capital’s analysts and portfolio managers source ideas from leveraging Penn Capital's equity relationships: equity investment styles & conferences, IPO & competitive intelligence, management meetings and road shows, industry experts, ex-government officials

Step 4 – Improving Fundamentals

Penn Capital's analysts and portfolio managers further screen for companies with improving financial metrics such as Debt/EBITDA, EBITDA/interest expense, free cash flow/debt

Step 5 – Liquidity Outlook

Penn Capital's analysts and portfolio managers screen for liquidity issues and perform research such as covenant analysis, bank loan availability, and asset value analysis

Step 6 – Qualitative Research

Penn Capital's analysts and portfolio managers then perform qualitative research such as company management, strong fundamentals, positive catalysts, suppliers/customers /competitors, and industry experts

Step 7 – Penn Capital Risk Rating (PRR)

Primary and secondary analysts and portfolio managers assign the proprietary Penn Capital Risk Rating (PRR) which includes forward looking estimates of credit quality, quantitative/qualitative factors, and rating agencies static

Step 8: Team Review and Approval

The investment team consists of all portfolio managers and analysts; daily team meetings are primary forums for discussion and a consensus at team level is required prior to moving a recommendation on to High Yield Credit Committee

Step 9: High Yield Credit Committee Approval*

Committee confirms PRR and relative value: review of ideas approved by investment team, considers impact of credit on portfolio construction

*After Step 9, an idea is either approved for portfolio inclusion or dismissed to company watch list with further due diligence required

David Jackson, CFA, Partner, Portfolio Manager

Mr. Jackson began his career with Penn Capital in February 2008. Prior to joining Penn Capital Mr. Jackson was an Associate Director with the Financial Institutions Group at Fitch Ratings in New York City, where he assisted with rating coverage of the specialty finance sector. Prior to Fitch, he worked for the Federal Reserve Bank of Philadelphia on the bank supervision and regulation team. Mr. Jackson currently serves as a Portfolio Manager for Penn Capital’s Distressed strategy. He received a BS in Finance from Rutgers University School of Business.

Richard A. Hocker, Founder, Chief Investment Officer

Mr. Hocker founded Penn Capital in 1987 and serves as Chief Investment Officer & Chief Executive Officer, guiding overall portfolio strategy. His investing and institutional non-investment grade corporate lending experience spans over forty years. While serving as a Partner for Delaware Investment Advisors (DIA) from 1977 to 1987, he was responsible for building the investment side of DIA’s fixed income operation. During this period, Mr. Hocker developed and managed one of the nation’s first high yield mutual funds, the Delchester High Yield Bond Fund. He also served as the first high yield bond manager for a number of institutional clients including General Motors, State of Vermont Teachers Retirement Association, and Colorado Fire and Police. Prior to DIA, Mr. Hocker trained as a corporate lender and supported key senior lenders at Provident National Bank, which is now PNC, a top 20 US Banking institution. He later rose to serve as head of the investment division. Mr. Hocker also founded and served as CEO of Covenant Bank, a NJ based regional bank which grew to 16 branches and $500mm in deposits before being acquired by Wachovia Corporation in 1997.

He and his wife, Marcia Hocker, are the founders of the Ethel Mae Hocker Foundation. The Ethel Mae Hocker Foundation provides educational opportunities to less fortunate, deserving Greater Philadelphia-area elementary and high school students. Mr. Hocker received both his BS in accounting and MBA in finance from the Kogod School of Business at American University.

All investments involve risk, including possible loss of principal. The Fund invests in ETFs and is therefore subject to the same risks as the underlying securities in which the ETF invests as well as entails higher expenses than if invested into the underlying ETF directly. As interest rates rise the value of bond prices will decline. Credit risk refers to the loss in the value of a security based on a default in the payment of principal and/or interest of the security, or the perception of the market of such default. High-yield bonds have a higher risk of default or other adverse credit events, but have the potential to pay higher earnings over investment grade bonds. The value of convertible securities tends to decline as interest rates rise and, because of the conversion feature, tends to vary with fluctuations in the market value of the underlying securities. Bank loans in which the Fund may invest have similar risks to below investment grade fixed income securities. In the event of the insolvency of an agent bank, a loan could be subject to settlement risk as well as the risk of interruptions in the administrative duties performed in the day to day administration of the loan. The Fund invests in foreign securities and ADRs, which involves certain risks such as currency volatility, political and social instability and reduced market liquidity.


BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER RELEVANT INFORMATION CAN BE FOUND IN THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION, COPIES OF WHICH MAY BE OBTAINED BY CALLING 844-302-PENN (7366) OR BY VISITING WWW.PENNCAPITALFUNDS.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.

Foreside Fund Services, LLC, Distributor.