Penn Capital Short Duration High Income Fund
Name
As of 04/15/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
1.1%
1 yr return
7.0%
3 Yr Avg Return
3.1%
5 Yr Avg Return
3.0%
Net Assets
$31 M
Holdings in Top 10
21.4%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 1.25%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 11.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$10,000
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 04/15/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
PSHNX - Profile
Distributions
- YTD Total Return 1.1%
- 3 Yr Annualized Total Return 3.1%
- 5 Yr Annualized Total Return 3.0%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio 2.97%
- Dividend Yield 0.0%
- Dividend Distribution Frequency Monthly
Fund Details
-
Legal NamePenn Capital Short Duration High Income Fund
-
Fund Family NamePENN Capital Funds Trust
-
Inception DateJul 17, 2017
-
Shares Outstanding3918087
-
Share ClassInstl
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerPeter Duffy
Fund Description
The Fund seeks to achieve its investment objective by investing, under normal circumstances, primarily in fixed income securities and senior floating rate loans that are rated below investment grade. Below-investment grade debt instruments (commonly called “high yield” or “junk”) are those instruments rated BB+ or lower by S&P Global Ratings (“S&P”) or Fitch Ratings, Inc. (“Fitch”), or Ba1 or lower by Moody’s Investors Service, Inc. (“Moody’s”), or comparably rated by another nationally recognized statistical rating organization, or, if unrated, determined by the Advisor to be of comparable quality. Fixed income securities in which the Fund invests include debt securities such as bonds, notes and debentures. Within the high yield market, the Fund expects to invest primarily in high yield fixed income securities and senior floating rate loans, including covenant lite loans, that are generally rated at the time of purchase BB+ or lower by S&P or Ba1 or lower by Moody’s, or, if unrated, determined by the Advisor to be of comparable credit quality. The Advisor seeks to pursue a conservative (defensive) investment strategy within the high yield debt market by generally avoiding the lowest rated (i.e., riskiest) debt instruments in the high yield market. The Fund invests in split rated securities (securities which have different ratings from the rating agencies) if one of the ratings is at least a B- rating from S&P or B3 from Moody’s. The Fund will not invest in high yield bonds or senior floating rate loans rated CCC+ or lower by S&P, and Caa1 or lower by Moody’s because the Advisor has determined that such bonds and loans are the riskiest or lowest quality segment of the market and that they have historically been the most likely to default.
In selecting investments for the Fund, the Advisor incorporates environmental, social, and governance-related (“ESG”) issues into its research and analysis, including, but not limited to, an assessment of the following factors: evaluation of a company’s management team, board and leadership structure, share structure and overall business practices. Each investment decision incorporates ESG and sustainability to the extent that any of these ESG factors impact the financial health or reputational risk of the company within the capital markets.
Although the Fund has the ability to invest in securities of any maturity, the Fund will normally target a dollar-weighted average maturity of three years or less in an effort to emphasize a more defensive overall portfolio positioning. Maturity is a measure of the time until the principal amount of a bond or loan is due. The Fund typically focuses on instruments that have short durations and seeks to maintain a duration of no more than three years. Duration is an approximate measure of the underlying portfolio’s price sensitivity to changes in prevailing interest rates. Higher duration securities typically are more sensitive to interest rate changes. Conversely, bonds and loans with a shorter duration are typically less sensitive to interest rate changes. For example, the approximate percentage decrease in the price of a security with a three-year duration would be 3% in response to a 1% increase in interest rates. Duration takes into account a debt instrument’s cash flows over time, including the possibility that a debt instrument might be prepaid by the issuer or redeemed by the holder prior to the stated maturity date. Since shorter duration bonds are typically less volatile than longer duration bonds, the Fund’s defensive positioning is expected to generally result in lower volatility relative to the overall high yield market.
The Fund’s investments in fixed income securities and loans will typically consist of U.S. dollar denominated high yield corporate bonds and notes and senior floating rate loans. The Fund also will invest in the securities of leveraged companies (i.e., companies that issue debt). In addition, the Fund may have increased exposure to investments in the financials sector. The Fund may invest up to 25% of its net assets in foreign fixed-income securities, including those denominated in U.S. dollars or other currencies, or in loans issued by lenders based outside of the U.S.
The Fund is permitted to invest in privately placed Rule 144A fixed-income securities. The Fund may invest up to 20% of its net assets in convertible bonds. The Fund intends to invest primarily in below-investment grade loans and other debt instruments, including bonds, notes, debentures and debt obligations issued by real estate investment trusts (“REITs”). The Fund also will invest in loans issued by banks, as well as investment grade loans and other debt instruments. To achieve its objective, the Fund is permitted to invest in other investment companies, including affiliated investment companies, and in exchange traded funds (“ETFs”), that have investment objectives similar to the Fund’s or that otherwise are permitted investments with the Fund’s investment policies described herein.
The Fund’s investments in senior floating rate loans will be through syndicated loans. Syndicated loans are an extension of credit provided by a group of lenders and are structured, arranged, syndicated and administered by one or more banks. Loan coupons are typically “floating” rate. Floating rate securities generally pay interest at rates that adjust whenever a specified interest rate changes and/or is reset on predetermined dates (such as the last day of a month or calendar quarter). Floating rate coupons have historically been set using the London Inter-Bank Offered Rate (“LIBOR”) plus the spread (i.e., the rate for such coupons will typically be a spread or margin over LIBOR). The coupon determines the periodic interest payment that the loan holder will receive. At the end of 2021, certain LIBOR rates were discontinued and an increasing number of floating rate coupons are being set using the Secured Overnight Financing Rate (“SOFR”) plus a spread (i.e., the rate for such coupons will typically be a spread or margin over SOFR). Coupons are expected to be consistent with respect to the rate used (e.g., LIBOR or SOFR). Refer to “Principal Investment Risks - LIBOR Transition Risk.” The Fund may obtain exposure to senior floating rate loans through investments in affiliated investment companies.
The Fund may invest in “covenant lite” loans. Certain financial institutions may define “covenant lite” loans differently. Covenant lite loans may have tranches that contain fewer or no restrictive covenants. The tranche of the covenant lite loan that has fewer restrictions typically does not include the legal clauses which allows an investor to proactively enforce financial tests or prevent or restrict undesired actions taken by the company or sponsor. Covenant lite loans also generally give the borrower/issuer more flexibility if they have met certain loan terms and provide fewer investor protections if certain criteria are breached.
The Advisor considers both quantitative and qualitative factors in its evaluation and selection of investments for the Fund. Quantitative measures include the review of company financial statements and analysis of the company’s projected future financial position. Qualitative measures include evaluation of management, identification of market leaders within industries, and due-diligence research regarding customers, competitors and suppliers. The Advisor could choose to sell a particular security if, for example, it no longer satisfies specific criteria based on the quantitative and qualitative factors outlined above, or to take advantage of what the Advisor has determined to be a better investment opportunity.
The Fund anticipates a higher than average portfolio turnover rate.
PSHNX - Performance
Return Ranking - Trailing
Period | PSHNX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 1.1% | -6.4% | 6.1% | 25.55% |
1 Yr | 7.0% | -8.8% | 15.7% | 69.81% |
3 Yr | 3.1%* | -16.3% | 19.9% | 8.05% |
5 Yr | 3.0%* | -11.8% | 36.6% | 48.26% |
10 Yr | N/A* | -4.8% | 19.4% | N/A |
* Annualized
Return Ranking - Calendar
Period | PSHNX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 3.4% | -4.7% | 14.3% | 88.61% |
2022 | -5.6% | -33.4% | 3.6% | 0.79% |
2021 | 0.2% | -8.4% | 14.9% | 43.11% |
2020 | -3.1% | -13.9% | 302.7% | 93.24% |
2019 | 3.5% | -4.4% | 13.3% | 92.37% |
Total Return Ranking - Trailing
Period | PSHNX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 1.1% | -6.4% | 6.1% | 25.55% |
1 Yr | 7.0% | -8.8% | 15.7% | 69.81% |
3 Yr | 3.1%* | -16.3% | 19.9% | 8.05% |
5 Yr | 3.0%* | -11.8% | 36.6% | 48.26% |
10 Yr | N/A* | -4.8% | 19.4% | N/A |
* Annualized
Total Return Ranking - Calendar
Period | PSHNX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 9.1% | -4.7% | 18.2% | 90.33% |
2022 | -2.3% | -33.4% | 47.8% | 2.05% |
2021 | 3.4% | -8.4% | 24.8% | 82.95% |
2020 | 0.9% | -9.6% | 325.6% | 93.07% |
2019 | 7.4% | 0.9% | 21.5% | 93.59% |
NAV & Total Return History
PSHNX - Holdings
Concentration Analysis
PSHNX | Category Low | Category High | PSHNX % Rank | |
---|---|---|---|---|
Net Assets | 31 M | 1.45 M | 23.6 B | 94.61% |
Number of Holdings | 110 | 2 | 2736 | 91.80% |
Net Assets in Top 10 | 6.64 M | -492 M | 4.45 B | 93.03% |
Weighting of Top 10 | 21.44% | 4.2% | 146.9% | 18.42% |
Top 10 Holdings
- US BANK MMDA - USBFS 2 4.18%
- Ford Motor Credit Co LLC 2.09%
- Crown Cork Seal Co Inc 2.06%
- Owens Minor Inc 1.97%
- VICI Properties LP / VICI Note Co Inc 1.91%
- Match Group Holdings II LLC 1.90%
- Moog Inc 1.89%
- CCO Holdings LLC / CCO Holdings Capital Corp 1.82%
- Radian Group Inc 1.82%
- Frontier Communications Holdings LLC 1.80%
Asset Allocation
Weighting | Return Low | Return High | PSHNX % Rank | |
---|---|---|---|---|
Bonds | 94.34% | -3.13% | 154.38% | 54.70% |
Cash | 5.66% | -52.00% | 48.07% | 31.27% |
Convertible Bonds | 1.39% | 0.00% | 17.89% | 35.60% |
Stocks | 0.00% | 0.00% | 99.54% | 79.35% |
Preferred Stocks | 0.00% | 0.00% | 7.88% | 54.49% |
Other | 0.00% | -63.70% | 102.57% | 55.42% |
Bond Sector Breakdown
Weighting | Return Low | Return High | PSHNX % Rank | |
---|---|---|---|---|
Corporate | 96.35% | 0.00% | 129.69% | 36.12% |
Cash & Equivalents | 4.18% | 0.00% | 48.07% | 35.14% |
Derivative | 0.00% | -15.04% | 42.26% | 46.90% |
Securitized | 0.00% | 0.00% | 97.24% | 58.29% |
Municipal | 0.00% | 0.00% | 4.66% | 27.91% |
Government | 0.00% | 0.00% | 99.07% | 49.46% |
Bond Geographic Breakdown
Weighting | Return Low | Return High | PSHNX % Rank | |
---|---|---|---|---|
US | 94.34% | -3.13% | 129.21% | 41.18% |
Non US | 0.00% | 0.00% | 98.19% | 53.72% |
PSHNX - Expenses
Operational Fees
PSHNX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.25% | 0.04% | 31.61% | 32.97% |
Management Fee | 0.45% | 0.00% | 1.84% | 17.44% |
12b-1 Fee | 0.00% | 0.00% | 1.00% | 5.02% |
Administrative Fee | N/A | 0.00% | 0.50% | N/A |
Sales Fees
PSHNX 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
PSHNX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 2.00% | 6.25% |
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.
PSHNX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 11.00% | 1.00% | 255.00% | 1.19% |
PSHNX - Distributions
Dividend Yield Analysis
PSHNX | Category Low | Category High | PSHNX % Rank | |
---|---|---|---|---|
Dividend Yield | 0.00% | 0.00% | 47.72% | 73.08% |
Dividend Distribution Analysis
PSHNX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Monthly | Monthly | Monthly | Monthly |
Net Income Ratio Analysis
PSHNX | Category Low | Category High | PSHNX % Rank | |
---|---|---|---|---|
Net Income Ratio | 2.97% | -2.39% | 14.30% | 93.86% |
Capital Gain Distribution Analysis
PSHNX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Quarterly | Annually |
Distributions History
Date | Amount | Type |
---|---|---|
Mar 28, 2024 | $0.047 | OrdinaryDividend |
Feb 29, 2024 | $0.046 | OrdinaryDividend |
Jan 31, 2024 | $0.052 | OrdinaryDividend |
Dec 21, 2023 | $0.049 | OrdinaryDividend |
Nov 30, 2023 | $0.045 | OrdinaryDividend |
Oct 31, 2023 | $0.045 | OrdinaryDividend |
Sep 29, 2023 | $0.038 | OrdinaryDividend |
Aug 31, 2023 | $0.045 | OrdinaryDividend |
Jul 28, 2023 | $0.037 | OrdinaryDividend |
Jun 30, 2023 | $0.037 | OrdinaryDividend |
May 31, 2023 | $0.043 | OrdinaryDividend |
Apr 28, 2023 | $0.033 | OrdinaryDividend |
Mar 31, 2023 | $0.038 | OrdinaryDividend |
Feb 28, 2023 | $0.027 | OrdinaryDividend |
Jan 31, 2023 | $0.032 | OrdinaryDividend |
Dec 30, 2022 | $0.032 | OrdinaryDividend |
Nov 30, 2022 | $0.033 | OrdinaryDividend |
Oct 28, 2022 | $0.032 | OrdinaryDividend |
Sep 30, 2022 | $0.025 | OrdinaryDividend |
Aug 31, 2022 | $0.029 | OrdinaryDividend |
Jul 29, 2022 | $0.027 | OrdinaryDividend |
Jun 30, 2022 | $0.028 | OrdinaryDividend |
May 27, 2022 | $0.025 | OrdinaryDividend |
Apr 29, 2022 | $0.022 | OrdinaryDividend |
Mar 31, 2022 | $0.029 | OrdinaryDividend |
Feb 25, 2022 | $0.020 | OrdinaryDividend |
Jan 28, 2022 | $0.017 | OrdinaryDividend |
Dec 07, 2021 | $0.027 | OrdinaryDividend |
Nov 30, 2021 | $0.021 | OrdinaryDividend |
Oct 29, 2021 | $0.022 | OrdinaryDividend |
Sep 30, 2021 | $0.022 | OrdinaryDividend |
Aug 31, 2021 | $0.025 | OrdinaryDividend |
Jul 30, 2021 | $0.025 | OrdinaryDividend |
Jun 30, 2021 | $0.028 | OrdinaryDividend |
May 28, 2021 | $0.025 | OrdinaryDividend |
Apr 30, 2021 | $0.027 | OrdinaryDividend |
Mar 31, 2021 | $0.034 | OrdinaryDividend |
Feb 26, 2021 | $0.026 | OrdinaryDividend |
Jan 29, 2021 | $0.026 | OrdinaryDividend |
Dec 22, 2020 | $0.037 | OrdinaryDividend |
Nov 30, 2020 | $0.030 | OrdinaryDividend |
Oct 30, 2020 | $0.032 | OrdinaryDividend |
Sep 30, 2020 | $0.034 | OrdinaryDividend |
Aug 31, 2020 | $0.033 | OrdinaryDividend |
Jul 31, 2020 | $0.033 | OrdinaryDividend |
Jun 30, 2020 | $0.034 | OrdinaryDividend |
May 29, 2020 | $0.031 | OrdinaryDividend |
Apr 30, 2020 | $0.029 | OrdinaryDividend |
Mar 31, 2020 | $0.034 | OrdinaryDividend |
Feb 28, 2020 | $0.028 | OrdinaryDividend |
Jan 31, 2020 | $0.028 | OrdinaryDividend |
Dec 23, 2019 | $0.035 | OrdinaryDividend |
Nov 29, 2019 | $0.029 | OrdinaryDividend |
Oct 31, 2019 | $0.034 | OrdinaryDividend |
Sep 30, 2019 | $0.029 | OrdinaryDividend |
Aug 30, 2019 | $0.030 | OrdinaryDividend |
Jul 31, 2019 | $0.035 | OrdinaryDividend |
Jun 28, 2019 | $0.028 | OrdinaryDividend |
May 31, 2019 | $0.031 | OrdinaryDividend |
Apr 30, 2019 | $0.031 | OrdinaryDividend |
Mar 29, 2019 | $0.030 | OrdinaryDividend |
Feb 28, 2019 | $0.027 | OrdinaryDividend |
Jan 31, 2019 | $0.026 | OrdinaryDividend |
Dec 20, 2018 | $0.033 | OrdinaryDividend |
Nov 30, 2018 | $0.028 | OrdinaryDividend |
Oct 31, 2018 | $0.030 | OrdinaryDividend |
Oct 01, 2018 | $0.034 | OrdinaryDividend |
Sep 04, 2018 | $0.042 | OrdinaryDividend |
Aug 01, 2018 | $0.002 | OrdinaryDividend |
Jul 02, 2018 | $0.027 | OrdinaryDividend |
Jun 01, 2018 | $0.026 | OrdinaryDividend |
May 01, 2018 | $0.027 | OrdinaryDividend |
Apr 02, 2018 | $0.024 | OrdinaryDividend |
Mar 01, 2018 | $0.027 | OrdinaryDividend |
Feb 01, 2018 | $0.003 | OrdinaryDividend |
Dec 21, 2017 | $0.046 | OrdinaryDividend |
Dec 01, 2017 | $0.026 | OrdinaryDividend |
Nov 01, 2017 | $0.020 | OrdinaryDividend |
Oct 02, 2017 | $0.025 | OrdinaryDividend |
Sep 01, 2017 | $0.019 | OrdinaryDividend |
Aug 01, 2017 | $0.009 | OrdinaryDividend |
PSHNX - Fund Manager Analysis
Managers
Peter Duffy
Start Date
Tenure
Tenure Rank
Jul 17, 2017
4.87
4.9%
Mr. Duffy began his career with Penn Capital in 2006. Mr. Duffy serves as the portfolio manager for Penn Capital’s Defensive and Short Duration High Yield and Multi-Credit Spectrum strategies. He also chairs the firm’s Credit Strategy Committee. Prior to joining Penn Capital, Mr. Duffy was a Director for Deutsche Asset Management’s top-decile $5 billion global high yield debt team, and his investment experience included both leveraged loans and emerging markets debt. Previously, he worked on mergers & acquisitions at GE Capital and as a management consultant at Arthur Andersen LLP. He received a BS in Finance summa cum laude from Villanova University and an MBA from The Wharton School of the University of Pennsylvania.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.13 | 37.79 | 7.12 | 8.17 |