3Q2025 - Credit Opportunities Fund Commentary
Our primary concerns remain much the same as in the first half of the year: continued market volatility, spread widening, and the Federal Reserve’s policy moves.
- In Q3 2025, the Polen Credit Opportunities Fund (the “Fund”) returned 0.47% versus the 2.40% return of the ICE BofA U.S. High Yield Index (the “Index”).
- Q3 2025 saw multi-year record lows for below investment-grade yields and spreads and record high capital market activity for leveraged credit assets, leading to a strong quarter for high yield bonds.
- Leveraged loans experienced some weakness in the third quarter, underperforming high yield bonds.
During the quarter, Dexko Global and Asurion LLC contributed the most to total returns, while SportsNet New York and Eyecare Partners were the largest detractors. - During the third quarter of 2025, the Fund saw elevated refinancing activity, which resulted in several repayments during the quarter. Active selling was mostly limited to trimming certain holdings.
- In our view, remaining patient and not overreaching for yield will leave our portfolios well positioned to take advantage of compelling opportunities in this period of instability.