Polen U.S. Opportunistic High Yield Fund – Institutional

Avg. Blended Yield
11.8%
Adj. Effective Duration
2.63 years
Inception Date
07-16-2015

Investment Objective

Our U.S. Opportunistic High Yield fund’s objective is to seek overall total return consisting of a high level of current income together with long-term capital appreciation.

Why Invest in Polen U.S. Opportunistic High Yield?

  • U.S. high yield strategy with a strong emphasis on due diligence and margin of safety
  • Concentrated, high-conviction portfolio
  • Private equity style investment approach with a focus on loan-to-value
  • Long holding periods that aim to deliver a compounding yield advantage

A High Conviction Approach

We strive to generate attractive risk-adjusted returns by employing a disciplined, bottom-up, fundamentally-oriented investment process with a strict adherence to downside protection. Through rigorous due diligence with a strong emphasis on margin of safety, we believe that we can construct concentrated portfolios that can outperform broad high yield indices over a full credit cycle.

Product Profile

Number of Holdings 60-90
Style High Yield
Benchmark ICE BofA U.S. High Yield Index

Experience in High Yield Investing

Dave Breazzano
Head of Team, Portfolio Manager, US High Yield
43 years of experience
Ben Santonelli
Portfolio Manager, US High Yield
19 years of experience
John Sherman
Portfolio Manager, US High Yield
19 years of experience

Fund Performance – Institutional Shares (%)

Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1.844.363.4898. Performance less than 1 year is cumulative. Performance is net of all fees. The Fund imposes a 1.00% redemption fee on shares held for 60 days or less. Polen Capital has contractually agreed to limit the amount of the Fund’s Total Annual Fund Operating Expenses, exclusive of Distribution and Service (12b-1) fees, Shareholder Servicing expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses, to an annual rate of 0.79% of the Fund’s average daily net assets for all share classes. This agreement is in effect through January 31, 2023. See the prospectus for more details. The Gross Expense Ratio is 0.99%, 1.08, 1.33% and the Net Expense Ratio is 0.79%, 0.89% and 1.14% for DDJIX, DDJCX and DDJRX, respectively.

 

Share Class Details

Top 10 Holdings (% of Portfolio)

Credit Quality Allocation (% of Portfolio)*

*Credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). All Fund fixed income securities except for those labeled “Not Rated” have been rated by Moody’s, S&P, or Fitch, which are each a Nationally Recognized Statistical Rating Organization (“NRSRO”). Credit ratings are subject to change.

Debt Type Allocation (% of Portfolio)

Portfolio Characteristics

Assuming the inclusion of temporary expense waivers or reimbursements, the 30-day yield would have been 10.38%, 10.38%, and 10.02% for DDJIX, DDJCX, and DDJRX, respectively. In the absence of temporary expense waivers or reimbursements, the 30-day yield would have been 10.26%, 10.26%, and 9.90% for DDJIX, DDJCX, and DDJRX, respectively.

Holdings are subject to change. The top holdings, as well as other data, are as of the period indicated and should not be considered a recommendation to purchase, hold, or sell any particular security. There is no assurance that any of the securities noted will remain in a portfolio at the time you receive this fact sheet. Actual holding and percentage allocation in individual client portfolios may vary and are subject to change. It should not be assumed that any of the holdings discussed were or will prove to be profitable or that the investment recommendations or decisions we make in the future will be profitable. A list of all securities held in this portfolio in the prior year is available upon request.

The ICE BofA U.S. High Yield Index is a broad high yield index that tracks the performance of U.S. dollar-denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The ICE BofA U.S. High Yield Index is the property of ICE Data Indices, LLC. The volatility and other material characteristics of the indices referenced may be materially different from the performance achieved. In addition, the portfolio’s holdings may be materially different from those within the index. Indices are unmanaged.

Risks: Mutual fund investing involves risk, including possible loss of principal. The Fund targets investments in high yield, or below investment grade, fixed income securities. Such investments are subject to several types of investment risk, including, without limitation, credit risk (i.e., the risk that the issuer may be unable to make timely interest payments as well as repay the principal upon maturity), interest rate risk (i.e., the risk that their value will be inversely affected by fluctuations in the prevailing interest rates), market risk (i.e., the risk that their value may decline, sometimes rapidly or unpredictably, due to general market conditions), call or income risk, (i.e., the risk that certain debt securities with high interest rates will be prepaid or “called” by the issuer before they mature), and event risk (i.e., the risk that certain debt securities may suffer a substantial decline in credit quality and market value if the issuer restructures). In particular, debt investments in high yield issuers, which are described as speculative by major credit rating agencies and commonly referred to as “junk bonds”, are generally more susceptible to credit risk than other fixed income investments. In addition, the Fund’s high yield debt investments, including bank loans and Rule 144A securities, are subject to liquidity risk, as the Fund may not be able to sell investments at the best prices or at the value that the Fund places on them. The Fund also may target investments in equity securities, typically in high yield or leveraged issuers. Such investments, which are the most junior security in a company’s capital structure and typically subject to significant volatility in price, are subject to equity securities risk. An investor should be aware that the foregoing is not an exhaustive list of all of the risks associated with investing in the Fund. Diversification within the Fund does not assure a profit nor protect against loss in a declining market.

ESG Risk: The Adviser integrates material environmental, social, and governance (ESG) factors into research analysis as part of a comprehensive evaluation of a company’s long-term financial sustainability. The risk that the investment techniques and risk analyses applied by the investment adviser, including but not limited to the Adviser’s integration of ESG factors into its research analysis, will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the investment adviser and the individual portfolio manager in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.

30-Day Yield (also known as “SEC yield”): For each share class, SEC yield is a compounded and annualized figure calculated according to a formula set by the SEC. The formula requires use of a specific methodology for calculating dividends and interest earned, and expenses accrued, during the period, and reflects the maximum offering price per Fund share. The standardized computation is designed to facilitate yield comparisons among different funds.

Adjusted Effective Duration: With respect to the portfolio, the adjusted effective duration statistic provided is calculated by taking a weighted average of (i) modified duration to next reset date for all floating rate instruments, and (ii) effective duration for all fixed coupon instruments. With respect to the benchmark, duration is shown as effective duration.

Average Blended Yield: The weighted average of (i) for instruments priced at or above par, yield to worst for bonds and yield to three year take out for loans, and (ii) for instruments trading at a discount, yield to maturity. Yield to worst is the lowest possible yield from owning a bond considering all potential call dates prior to maturity and is the statistic provided for the index as it is comprised of high yield bonds only. Yield to three year take out is the yield from owning a senior bank loan assuming the loan is retired in three years, or yield to maturity if the loan’s maturity date is in less than three years.

Alpha: the excess return of an investment relative to the return of the benchmark. Beta: the measure of systemic risk of a portfolio in comparison to the market as a whole. Downside Capture: a statistical measure of overall performance relative to a benchmark during declining markets. Information Ratio: a measurement of portfolio returns relative to a given benchmark. Risk-Adjusted Return: a calculation of the profit or potential profit from an investment that considers the degree of risk that must be accepted in order to achieve it. Sharpe Ratio: a ratio of the return on an investment relative to its risk. Standard Deviation: measurement of the dispersion or volatility of investment returns relative to its mean or average. Upside Capture: a statistical measure of overall performance relative to a benchmark during rising markets.

Mutual fund investing involves risk, including possible loss of principal. The Fund is non-diversified, which means that a large portion of the Fund’s assets may be invested in one or few companies or sectors. The Fund could fluctuate in value more than a diversified fund. 

Investors should consider the investment objectives, risks, charges, and expenses of the Polen DDJ Opportunistic High Yield Fund carefully before investing. A prospectus with this and other information about the Fund may be obtained by calling 1-844-363-4898 or visiting the Materials tab. It should be read carefully before investing.

All performance is calculated in US Dollars. The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Returns are presented net of management fees and include the reinvestment of all income.

The Polen DDJ Opportunistic High Yield Fund is distributed by ALPS Distributors, Inc., 1290 Broadway, Ste. 1000, Denver, CO 80203. ALPS Distributors, Inc. is not affiliated with Polen Capital. Not FDIC Insured – No Bank Guarantee – May Lose Value