Muzinich Flexible U.S. High Yield Income Fund
Name
As of 05/03/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
2.2%
1 yr return
8.3%
3 Yr Avg Return
0.4%
5 Yr Avg Return
2.9%
Net Assets
$47.4 M
Holdings in Top 10
14.5%
52 WEEK LOW AND HIGH
$7.9
N/A
N/A
Expenses
OPERATING FEES
Expense Ratio 1.26%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 96.00%
Redemption Fee 1.00%
Min Investment
Standard (Taxable)
$1,000,000
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 05/03/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
MZHIX - Profile
Distributions
- YTD Total Return 2.2%
- 3 Yr Annualized Total Return 0.4%
- 5 Yr Annualized Total Return 2.9%
- Capital Gain Distribution Frequency N/A
- Net Income Ratio 5.06%
- Dividend Yield 8.1%
- Dividend Distribution Frequency Monthly
Fund Details
-
Legal NameMuzinich Flexible U.S. High Yield Income Fund
-
Fund Family NameMuzinich
-
Inception DateMar 31, 2016
-
Shares Outstanding469511
-
Share ClassInstl
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerBryan Petermann
Fund Description
The U.S. High Yield Fund normally invests at least 80% of its net assets in high yield credit issued by companies with a domicile or principle place of business in the U.S. (“U.S. Corporations”). Credit instruments may include high yield bonds (commonly referred to as “junk” bonds), notes, loans, and other debt instruments. The Fund’s portfolio is typically well-diversified with below investment grade debt instruments issued by U.S. Corporations that the Advisor believes have attractive risk/reward characteristics. The Fund typically focuses on debt instruments rated below investment grade, defined as below BBB- or Baa3 by Standard & Poor’s, Fitch or Moody’s, as applicable, or which are deemed equivalent by the Advisor. High yield debt instruments in which the Fund invests may be unsecured or backed by receivables or other assets. The Fund may invest up to 20% of its net assets in foreign securities, of which 10% may include securities in emerging market countries. The Fund may invest up to 20% of its net assets in each of the banking sector and diversified financials sector. The Fund may invest in mutual funds (including affiliated mutual funds) and/or exchange-traded funds (“ETFs”) which invest in any of the previously mentioned types of fixed income securities and such investments in fixed income mutual funds and ETFs will be included in the Fund’s 80% test. The mutual funds and ETFs in which the Fund invests have an investment objective similar to that of the Fund or are otherwise permitted investments in accordance with the Fund’s investment policies described herein.
The Fund typically invests in highly leveraged companies. Although the Advisor will consider ratings assigned by ratings agencies in selecting the portfolio’s debt instruments, it relies principally on its own research and investment analysis. The Advisor selects debt instruments based on a bottom-up fundamental evaluation of potential investment opportunities and existing investments. As applicable, the Advisor considers both company-specific quantitative and qualitative factors such as: a company’s managerial strength and commitment to debt repayment, anticipated cash flow, debt maturity schedules, borrowing requirements, use of borrowing proceeds, asset coverage and earnings prospects; legislation, regulation, litigation, transparency, market perspective or other environmental, social and governance (ESG) risks; and the strength and depth of the protections afforded the lender through the documentation governing the bond or syndicated loan issuance. The types of ESG factors that the Advisor believes can impact financial risks derive from, among other issues: changes to regulations, changes to consumer preferences, technology advancements, physical or transitional climate impacts, litigation risks, efficiency, brand value, innovation, market disruption/obsolescence, respect for human rights, anti-corruption, anti-bribery matters, and social license to operate. As a result of considering ESG factors in the Advisor’s investment decision process, an investment may be excluded or rejected where Muzinich believes those factors imply heightened risk of decreased liquidity of an investment and/or other negative
financial impacts. In line with this, securities ineligible for investment by the Norges Bank Investment Management Company are also ineligible for inclusion in the Fund.
The Advisor may actively manage the Fund’s duration (defined as “duration-to-worst”), such that the portfolio’s duration, and that of individual holdings within, may deviate (either shorter or longer) from that of the general U.S. high yield market depending on the portfolio managers’ views on risk, reward, and valuation. (Duration-to-worst is a measure of the expected life of a fixed income security that is used to determine the sensitivity of a security’s price to changes in interest rates.) Duration management may be achieved through the selection of individual securities and/or through the use of derivatives.
The Fund may use derivatives in various ways. The Fund may use derivatives as a substitute for taking a long or short position in the reference asset or to gain exposure to certain asset classes; under such circumstances, the derivatives may have economic characteristics similar to those of the reference asset, and the Fund’s investment in the derivatives may be applied toward meeting a requirement to invest a certain percentage of its net assets in instruments with such characteristics. The Fund may use derivatives to hedge (or reduce) its exposure to a portfolio asset or risk. The Fund may also use derivatives to manage cash. By investing in derivatives, the Fund attempts to achieve the economic equivalence it would achieve if it were to invest directly in the underlying security.
The portfolio is actively managed and the Fund may sell a holding when it has already met or no longer meets the portfolio managers’ expectations, no longer offers compelling relative value, shows deteriorating fundamentals, or if it falls short of the portfolio managers’ expectations. Trading securities frequently may lead to high portfolio turnover. Tax consequences are not a primary consideration in the Fund’s investment decisions. Although the Fund will typically not purchase bonds or loans that are already in default, the portfolio managers may decide to continue to hold a bond or loan (or related securities) after a default. There is no limit on the amount of defaulted securities the Fund may hold.
MZHIX - Performance
Return Ranking - Trailing
| Period | MZHIX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 2.2% | -7.6% | 4.6% | 25.43% |
| 1 Yr | 8.3% | -7.8% | 16.0% | 76.94% |
| 3 Yr | 0.4%* | -16.8% | 20.0% | 76.44% |
| 5 Yr | 2.9%* | -12.2% | 36.5% | 58.46% |
| 10 Yr | N/A* | -5.1% | 19.4% | N/A |
* Annualized
Return Ranking - Calendar
| Period | MZHIX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 3.0% | -4.7% | 14.3% | 90.05% |
| 2022 | -16.4% | -33.4% | 3.6% | 67.62% |
| 2021 | -7.8% | -8.4% | 8.2% | 99.67% |
| 2020 | 1.3% | -13.2% | 302.7% | 21.92% |
| 2019 | 7.9% | -4.4% | 13.3% | 53.08% |
Total Return Ranking - Trailing
| Period | MZHIX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 2.2% | -7.6% | 4.6% | 25.43% |
| 1 Yr | 8.3% | -7.8% | 16.0% | 76.94% |
| 3 Yr | 0.4%* | -16.8% | 20.0% | 76.44% |
| 5 Yr | 2.9%* | -12.2% | 36.5% | 58.46% |
| 10 Yr | N/A* | -5.1% | 19.4% | N/A |
* Annualized
Total Return Ranking - Calendar
| Period | MZHIX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 10.5% | -4.7% | 17.8% | 79.46% |
| 2022 | -4.8% | -33.4% | 47.8% | 5.26% |
| 2021 | 4.9% | -8.4% | 12.4% | 53.82% |
| 2020 | 7.3% | -9.6% | 325.6% | 18.49% |
| 2019 | 14.3% | 0.9% | 19.4% | 40.42% |
NAV & Total Return History
MZHIX - Holdings
Concentration Analysis
| MZHIX | Category Low | Category High | MZHIX % Rank | |
|---|---|---|---|---|
| Net Assets | 47.4 M | 1.45 M | 23.6 B | 91.63% |
| Number of Holdings | 293 | 2 | 2736 | 62.06% |
| Net Assets in Top 10 | 6.88 M | -492 M | 4.55 B | 93.65% |
| Weighting of Top 10 | 14.50% | 4.2% | 146.9% | 41.43% |
Top 10 Holdings
- First American Treasury Obligations Fund 6.64%
- Harvest Midstream I LP 1.05%
- Carnival Corp 1.03%
- Royal Caribbean Cruises Ltd 0.86%
- Evergreen Acqco 1 LP / TVI Inc 0.84%
- Civitas Resources Inc 0.84%
- Connect Finco SARL / Connect US Finco LLC 0.84%
- Perenti Finance Pty Ltd 0.83%
- Caesars Entertainment Inc 0.79%
- American Airlines Inc/AAdvantage Loyalty IP Ltd 0.77%
Asset Allocation
| Weighting | Return Low | Return High | MZHIX % Rank | |
|---|---|---|---|---|
| Bonds | 98.22% | -3.13% | 154.38% | 9.00% |
| Cash | 6.64% | -52.00% | 48.07% | 24.29% |
| Convertible Bonds | 0.41% | 0.00% | 17.89% | 82.22% |
| Stocks | 0.00% | 0.00% | 99.54% | 91.79% |
| Preferred Stocks | 0.00% | 0.00% | 7.88% | 79.68% |
| Other | 0.00% | -63.70% | 102.57% | 69.52% |
Bond Sector Breakdown
| Weighting | Return Low | Return High | MZHIX % Rank | |
|---|---|---|---|---|
| Corporate | 95.83% | 0.00% | 100.00% | 45.08% |
| Cash & Equivalents | 6.64% | 0.00% | 48.07% | 19.52% |
| Derivative | 0.00% | -15.04% | 42.26% | 66.03% |
| Securitized | 0.00% | 0.00% | 97.24% | 85.56% |
| Municipal | 0.00% | 0.00% | 1.17% | 69.37% |
| Government | 0.00% | 0.00% | 99.07% | 79.05% |
Bond Geographic Breakdown
| Weighting | Return Low | Return High | MZHIX % Rank | |
|---|---|---|---|---|
| US | 98.22% | -3.13% | 129.21% | 4.60% |
| Non US | 0.00% | 0.00% | 98.19% | 80.16% |
MZHIX - Expenses
Operational Fees
| MZHIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 1.26% | 0.02% | 38.33% | 32.65% |
| Management Fee | 0.55% | 0.00% | 1.84% | 49.84% |
| 12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
| Administrative Fee | N/A | 0.00% | 0.50% | N/A |
Sales Fees
| MZHIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | N/A | 2.25% | 5.75% | N/A |
| Deferred Load | N/A | 1.00% | 5.00% | N/A |
Trading Fees
| MZHIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | 1.00% | 1.00% | 2.00% | 78.57% |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| MZHIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | 96.00% | 1.00% | 255.00% | 84.60% |
MZHIX - Distributions
Dividend Yield Analysis
| MZHIX | Category Low | Category High | MZHIX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 8.06% | 0.00% | 11.71% | 44.01% |
Dividend Distribution Analysis
| MZHIX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Monthly | SemiAnnual | Monthly | Monthly |
Net Income Ratio Analysis
| MZHIX | Category Low | Category High | MZHIX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | 5.06% | -2.39% | 14.30% | 17.93% |
Capital Gain Distribution Analysis
| MZHIX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Apr 30, 2024 | $0.053 | OrdinaryDividend |
| Feb 29, 2024 | $0.046 | OrdinaryDividend |
| Jan 31, 2024 | $0.048 | OrdinaryDividend |
| Dec 29, 2023 | $0.043 | OrdinaryDividend |
| Nov 30, 2023 | $0.044 | OrdinaryDividend |
| Oct 31, 2023 | $0.043 | OrdinaryDividend |
| Sep 29, 2023 | $0.040 | OrdinaryDividend |
| Aug 31, 2023 | $0.048 | OrdinaryDividend |
| Jul 31, 2023 | $0.041 | OrdinaryDividend |
| Jun 30, 2023 | $0.043 | OrdinaryDividend |
| May 31, 2023 | $0.046 | OrdinaryDividend |
| Apr 28, 2023 | $0.037 | OrdinaryDividend |
| Mar 31, 2023 | $0.050 | OrdinaryDividend |
| Feb 28, 2023 | $0.037 | OrdinaryDividend |
| Jan 31, 2023 | $0.039 | OrdinaryDividend |
| Dec 30, 2022 | $0.032 | OrdinaryDividend |
| Nov 30, 2022 | $0.041 | OrdinaryDividend |
| Oct 31, 2022 | $0.038 | OrdinaryDividend |
| Sep 30, 2022 | $0.037 | OrdinaryDividend |
| Aug 31, 2022 | $0.041 | OrdinaryDividend |
| Jul 29, 2022 | $0.033 | OrdinaryDividend |
| Jun 30, 2022 | $0.040 | OrdinaryDividend |
| May 31, 2022 | $0.033 | OrdinaryDividend |
| Apr 29, 2022 | $0.034 | OrdinaryDividend |
| Mar 31, 2022 | $0.041 | OrdinaryDividend |
| Feb 28, 2022 | $0.033 | OrdinaryDividend |
| Jan 31, 2022 | $0.034 | OrdinaryDividend |
| Nov 30, 2021 | $0.042 | OrdinaryDividend |
| Oct 29, 2021 | $0.039 | OrdinaryDividend |
| Sep 30, 2021 | $0.036 | OrdinaryDividend |
| Aug 31, 2021 | $0.039 | OrdinaryDividend |
| Jul 30, 2021 | $0.043 | OrdinaryDividend |
| Jun 30, 2021 | $0.044 | OrdinaryDividend |
| May 28, 2021 | $0.043 | OrdinaryDividend |
| Apr 30, 2021 | $0.044 | OrdinaryDividend |
| Mar 31, 2021 | $0.074 | OrdinaryDividend |
| Feb 26, 2021 | $0.047 | OrdinaryDividend |
| Jan 29, 2021 | $0.040 | OrdinaryDividend |
| Dec 31, 2020 | $0.045 | OrdinaryDividend |
| Nov 30, 2020 | $0.040 | OrdinaryDividend |
| Oct 30, 2020 | $0.044 | OrdinaryDividend |
| Sep 30, 2020 | $0.046 | OrdinaryDividend |
| Aug 31, 2020 | $0.040 | OrdinaryDividend |
| Jul 31, 2020 | $0.047 | OrdinaryDividend |
| Jun 30, 2020 | $0.042 | OrdinaryDividend |
| May 29, 2020 | $0.041 | OrdinaryDividend |
| Apr 30, 2020 | $0.035 | OrdinaryDividend |
| Mar 31, 2020 | $0.044 | OrdinaryDividend |
| Feb 28, 2020 | $0.036 | OrdinaryDividend |
| Jan 31, 2020 | $0.041 | OrdinaryDividend |
| Dec 31, 2019 | $0.044 | OrdinaryDividend |
| Nov 29, 2019 | $0.039 | OrdinaryDividend |
| Oct 31, 2019 | $0.046 | OrdinaryDividend |
| Sep 30, 2019 | $0.040 | OrdinaryDividend |
| Aug 30, 2019 | $0.041 | OrdinaryDividend |
| Jul 31, 2019 | $0.048 | OrdinaryDividend |
| Jun 28, 2019 | $0.038 | OrdinaryDividend |
| May 31, 2019 | $0.045 | OrdinaryDividend |
| Apr 30, 2019 | $0.042 | OrdinaryDividend |
| Mar 29, 2019 | $0.045 | OrdinaryDividend |
| Feb 28, 2019 | $0.041 | OrdinaryDividend |
| Jan 31, 2019 | $0.039 | OrdinaryDividend |
| Dec 31, 2018 | $0.050 | OrdinaryDividend |
| Nov 30, 2018 | $0.036 | OrdinaryDividend |
| Oct 31, 2018 | $0.046 | OrdinaryDividend |
| Sep 28, 2018 | $0.036 | OrdinaryDividend |
| Aug 31, 2018 | $0.041 | OrdinaryDividend |
| Jul 31, 2018 | $0.044 | OrdinaryDividend |
| Jun 29, 2018 | $0.039 | OrdinaryDividend |
| May 31, 2018 | $0.044 | OrdinaryDividend |
| Apr 30, 2018 | $0.040 | OrdinaryDividend |
| Mar 29, 2018 | $0.042 | OrdinaryDividend |
| Feb 28, 2018 | $0.030 | OrdinaryDividend |
| Jan 31, 2018 | $0.040 | OrdinaryDividend |
| Dec 29, 2017 | $0.047 | OrdinaryDividend |
| Nov 30, 2017 | $0.042 | OrdinaryDividend |
| Oct 31, 2017 | $0.035 | OrdinaryDividend |
| Sep 29, 2017 | $0.094 | OrdinaryDividend |
| Aug 31, 2017 | $0.049 | OrdinaryDividend |
| Jul 31, 2017 | $0.043 | OrdinaryDividend |
| Jun 30, 2017 | $0.048 | OrdinaryDividend |
| May 31, 2017 | $0.052 | OrdinaryDividend |
| Apr 28, 2017 | $0.038 | OrdinaryDividend |
| Mar 31, 2017 | $0.047 | OrdinaryDividend |
MZHIX - Fund Manager Analysis
Managers
Bryan Petermann
Start Date
Tenure
Tenure Rank
Mar 31, 2016
6.17
6.2%
Bryan, Portfolio Manager, joined Muzinich in 2010 from Pinebridge Investments (formerly AIG Investments) where he served as Managing Director, Head of high yield for the last five years of his tenure. Bryan started his career in the banking sector. He worked in the media and cable groups at the Union Bank of California and Banque Paribas. Previously, he participated in the start of Société Générale’s cable and media group. Bryan received a B.A. from the University of California, Los Angeles where he was a Phi Beta Kappa scholar, and an M.B.A. from the University of California, Berkeley
Kevin Ziets
Start Date
Tenure
Tenure Rank
Jul 06, 2020
1.9
1.9%
Kevin Ziets joined Muzinich in 2017. Kevin serves as a Portfolio Manager focusing on U.S. High Yield credits after spending 20 years as a research analyst primarily in the U.S. high yield market, covering a variety of sectors across buy side, sell side, and rating agency roles. Previously, as a Senior Credit Analyst for Muzinich, Kevin covered the gaming, lodging, leisure, airlines, homebuilders/building products, packaging and transportation sectors. Prior to joining Muzinich, Kevin was a high yield corporate Credit Analyst most recently at Citigroup and before that at Goldman Sachs, Moody’s, Lazard, PrinceRidge and Pali Capital. Kevin earned a B.A. from Northwestern University and an M.B.A. from New York University’s Stern School of Business. He holds the Chartered Financial Analyst designation.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.13 | 37.79 | 7.21 | 8.17 |