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Trending ETFs

Name

Price

Aum/Mkt Cap

YIELD

Exp Ratio

Watchlist

$8.05

$6.19 M

0.00%

0.99%

Vitals

YTD Return

-3.0%

1 yr return

-14.3%

3 Yr Avg Return

-3.0%

5 Yr Avg Return

N/A

Net Assets

$6.19 M

Holdings in Top 10

49.0%

52 WEEK LOW AND HIGH

$8.1
$8.05
$9.39

Expenses

OPERATING FEES

Expense Ratio 0.99%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 75.00%

Redemption Fee N/A


Min Investment

Standard (Taxable)

$5,000

IRA

$1,500


Fund Classification

Fund Type

Open End Mutual Fund


Name

Price

Aum/Mkt Cap

YIELD

Exp Ratio

Watchlist

$8.05

$6.19 M

0.00%

0.99%

ZSRIX - Profile

Distributions

  • YTD Total Return -3.0%
  • 3 Yr Annualized Total Return -3.0%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio 3.48%
DIVIDENDS
  • Dividend Yield 0.0%
  • Dividend Distribution Frequency Monthly

Fund Details

  • Legal Name
    Zeo Sustainable Credit Fund
  • Fund Family Name
    Zeo
  • Inception Date
    May 31, 2019
  • Shares Outstanding
    N/A
  • Share Class
    Inst
  • Currency
    USD
  • Domiciled Country
    United States
  • Manager
    Venkatesh Reddy

Fund Description

Osterweis Capital Management, LLC (the “Adviser”) seeks to achieve the Fund’s investment objective by investing primarily in fixed income securities and by actively managing interest rate and default risks. The Fund takes a sustainable credit approach to investment analysis, combining rigorous fundamental analysis with an in-depth evaluation of sustainable investing factors to identify investments. In doing so, the Fund’s strategy is managed with a focus on delivering risk-adjusted total returns consistent with capital preservation by constructing a portfolio consisting primarily of carefully selected fixed-income securities issued by companies who prioritize making progress in key areas of sustainable business practices. Relative sustainable practices and exclusions based on specific environmental, social and governance (ESG) risks are both considerations in the Adviser’s fundamental and sustainable credit research process.
Under normal circumstances, the Fund invests at least 80% of its assets, defined as net assets plus any borrowings for investment purposes, in fixed income securities of sustainable companies. The Fund defines a “sustainable company” as a company that seeks to improve its financial position and/or maintain its competitive advantage by, among other things, proactively addressing ESG risks material to its business operations. At the time of purchase, companies added to the Fund’s portfolio must, in the Adviser’s judgement, align with the Adviser’s proprietary Sustainability Spectrum® sustainable business practices criteria, as described below.
The Fund defines fixed income securities to include: bills, notes, bonds, debentures, convertible bonds, loan participations, syndicated loan assignments and other evidence of indebtedness issued by U.S. or foreign corporations, governments, government agencies or government instrumentalities, including floating-rate securities. Convertible bonds provide interest income as well as capital appreciation if the value of equity conversion feature increases, though the Fund primarily considers convertible bonds in which the equity conversion feature is not a significant portion of the bond’s value. Floating-rate securities provide interest income that can increase or decrease with interest rates. The Fund invests in individual fixed income securities without restriction as to issuer credit quality, capitalization or security maturity.
Though the Fund can invest in securities domiciled in foreign countries (including emerging markets) and denominated in foreign currencies, the Fund invests primarily in securities denominated in U.S. dollars issued by issuers domiciled in developed markets. The Fund considers emerging market countries to be those represented in the MSCI Emerging Markets Index. The Fund may invest a majority of its assets in lower-quality fixed income securities — commonly known as “high yield” or “junk” bonds. Junk bonds are generally rated lower than Baa3 by Moody’s Investors Service (“Moody’s”) or lower than BBB- by S&P Global Ratings (“S&P”). The Fund may invest in junk bonds that are in default, subject to bankruptcy or reorganization. High
yield bonds have a higher expected rate of default than higher quality bonds. The Fund may, from time to time, have significant exposure to one or more sectors of the market.
The Adviser seeks to preserve the Fund’s principal by managing interest rate, default and currency risks. The Adviser manages default risk by selecting securities of issuers that it believes will pay interest and principal regardless of their credit rating, based upon the Adviser’s credit analysis of each issuer. The Adviser seeks investments whose total return derives from company fundamentals through market cycles where the impact of external economic factors on creditworthiness or the need to time markets is limited. The Adviser may also select securities that are in default, subject to bankruptcy or reorganization where the Adviser believes the risks to be consistent with capital preservation, based on the Adviser’s analysis of an issuer’s liquidation value or post-bankruptcy or post-reorganization value.
The Adviser manages default risk by selecting securities of issuers that it believes will pay interest and principal regardless of their credit rating, based upon the adviser’s credit analysis of each issuer. The Adviser may also select securities that are in default, subject to bankruptcy or reorganization where the Adviser believes the risks to be consistent with capital preservation, based on the Adviser’s analysis of an issuer’s liquidation value or post-bankruptcy or post-reorganization value.
The Adviser further manages default risk by considering whether an issuer’s management is making deliberate business decisions around the ESG factors most relevant to its operations. By recognizing that ESG risk factors are credit factors impacting a company’s creditworthiness, the Adviser aims to evaluate if a business is operating in a sustainable and responsible way to preserve its competitive advantage and maintain its staying power. The Adviser seeks to invest in companies who are leaders in their sectors in key areas of sustainable business practices or who are making or are likely to make visible progress toward appropriate sustainable practices. The Adviser evaluates each issuer using its proprietary Sustainability Spectrum,® which considers each company’s level of awareness, strategy, execution, and measurement regarding relevant sustainability factors. By monitoring Sustainability Spectrum® status over time, the Adviser aims to invest in issuers who are proactively seeking to mitigate unexpected liabilities and volatility catalysts that can arise from neglected ESG risks. The Adviser leverages proprietary research that seeks to understand sustainable business practices and ESG risks for securities added to the portfolio. The Adviser considers ESG factors to be credit factors, and systematically integrates them into its credit analysis and investment decision-making process. Specific key areas will vary by industry, and the weight of consideration can vary by company.
The Adviser does not employ negative screening. However, the Adviser tends to disqualify companies with exposure to industries with elevated risks and issues related to the five ESG focus areas noted below. Such industries include, for example, casinos (governance, external social), oil and gas (environmental) and weapons and alcohol (external social).
The Adviser utilizes a proprietary sustainability research database, fundamental sector research, and the portfolio managers’ evaluation in constructing the Fund’s portfolio. The portfolio management team also selects securities based on an issuer’s ability to manage the ESG risks to which its business is exposed, as determined by Adviser. The sustainable credit research process considers environmental, social and governance risks and issues for an issuer through a review of five primary ESG focus areas: (1) environmental factors which assess environmental risks; (2) external social factors which assess the effect on people and communities outside of the company; (3) stakeholder factors which assess the effect on business constituents, such as employees, vendors and investors; (4) strategic and operational factors which assess the sustainability of the company’s business strategy and operations; and (5) governance factors which assess ownership structure, risk management and oversight infrastructure and related exposures. The Adviser considers risks and opportunities holistically, meaning a security will not necessarily be excluded from investment due to an unfavorable evaluation of any one particular
ESG factor if the overall analysis results in a favorable sustainability evaluation by the Adviser. Consistent with this approach, the Fund is permitted to invest in the securities of an issuer that may be at an earlier stage on the Adviser’s proprietary Sustainability Spectrum® with respect to ESG factors or has received lower ESG ratings from other commonly-known industry third-party services while also having a favorable non-ESG evaluation when measured at the time of investment, provided that the Adviser has determined that the company has placed and continues to maintain an acceptable level of emphasis on managing its ESG risks material to its business operations. The portfolio management team may also engage the issuer or relevant stakeholders of the issuer to gain a deeper understanding of a risk, promote improved risk management, and/or provide insight on potential opportunities.
The Adviser believes that both credit risk factors and sustainability factors contribute to an issuer’s creditworthiness and the combination of fundamental credit research and sustainable and responsible business practices result in a risk profile that is more likely to preserve capital and deliver attractive risk-adjusted total returns over time.
The Adviser manages interest rate risk primarily by varying the average duration of the Fund’s portfolio. Duration 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. For example, the value of a portfolio of fixed income securities with an average duration of one year would generally be expected to decline by approximately 1% if interest rates rose by one percentage point.
The Adviser manages foreign currency risk by seeking securities denominated in U.S. dollars. If the Fund invests in foreign currency denominated securities, the Fund may purchase or sell foreign currencies if the Adviser determines that hedging the currency risk is appropriate. The Fund is “non-diversified” for purposes of the Investment Company Act of 1940, as amended (the “1940 Act”), which means that the Fund may invest in fewer securities at any one time than a diversified fund. However, the Adviser manages the impact of the risk of each investment by a considered analysis of appropriate sizing and portfolio diversification.
The Adviser buys fixed income securities that meet its credit and sustainability analysis standards and that it believes offer the highest expected risk-adjusted return among issuers of similar credit quality and to adjust portfolio-level exposure such as duration. The Adviser may sell a security when its expected return declines, the issuer’s credit quality or sustainability factors deteriorate, or to adjust portfolio level duration or raise cash.
The Fund may engage in frequent trading of its portfolio, resulting in a higher turnover rate.
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ZSRIX - Performance

Return Ranking - Trailing

Period ZSRIX Return Category Return Low Category Return High Rank in Category (%)
YTD -3.0% -21.8% 17.7% 11.92%
1 Yr -14.3% -26.4% 18.0% 75.52%
3 Yr -3.0%* -29.6% 52.0% 68.43%
5 Yr N/A* -33.0% 28.7% N/A
10 Yr N/A* -27.0% 12.7% N/A

* Annualized

Return Ranking - Calendar

Period ZSRIX Return Category Return Low Category Return High Rank in Category (%)
2022 -14.3% -31.8% 18.4% 64.16%
2021 0.3% -14.3% 103.5% 20.87%
2020 -1.4% -20.2% 60.6% 88.14%
2019 N/A -13.4% 10.9% N/A
2018 N/A -12.3% 4.1% N/A

Total Return Ranking - Trailing

Period ZSRIX Return Category Return Low Category Return High Rank in Category (%)
YTD -3.0% -21.8% 28.6% 11.92%
1 Yr -14.3% -26.4% 38.5% 75.62%
3 Yr -3.0%* -29.6% 52.0% 68.58%
5 Yr N/A* -33.0% 29.9% N/A
10 Yr N/A* -27.0% 16.1% N/A

* Annualized

Total Return Ranking - Calendar

Period ZSRIX Return Category Return Low Category Return High Rank in Category (%)
2022 -14.3% -31.8% 18.4% 64.02%
2021 0.3% -14.3% 103.5% 20.72%
2020 -1.4% -20.2% 60.6% 88.14%
2019 N/A -13.4% 10.9% N/A
2018 N/A -12.3% 4.7% N/A

NAV & Total Return History


ZSRIX - Holdings

Concentration Analysis

ZSRIX Category Low Category High ZSRIX % Rank
Net Assets 6.19 M 100 124 B 99.71%
Number of Holdings 39 2 8175 88.38%
Net Assets in Top 10 3.14 M -1.57 B 20.5 B 90.18%
Weighting of Top 10 48.98% 4.3% 100.0% 20.06%

Top 10 Holdings

  1. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  2. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  3. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  4. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  5. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  6. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  7. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  8. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  9. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%
  10. Agrofresh Inc. Floating Rate Due 12/27/2024 7.67%

Asset Allocation

Weighting Return Low Return High ZSRIX % Rank
Bonds
97.24% -150.81% 188.92% 10.79%
Cash
2.75% -261.12% 258.91% 73.17%
Stocks
0.00% -38.22% 261.12% 89.49%
Preferred Stocks
0.00% 0.00% 31.88% 93.22%
Other
0.00% -25.82% 276.99% 78.98%
Convertible Bonds
0.00% 0.00% 33.50% 96.68%

Bond Sector Breakdown

Weighting Return Low Return High ZSRIX % Rank
Corporate
97.25% 0.00% 100.00% 0.28%
Cash & Equivalents
2.75% 0.00% 100.00% 82.92%
Derivative
0.00% 0.00% 72.98% 90.83%
Securitized
0.00% 0.00% 99.65% 99.17%
Municipal
0.00% 0.00% 54.26% 89.44%
Government
0.00% 0.00% 99.43% 96.39%

Bond Geographic Breakdown

Weighting Return Low Return High ZSRIX % Rank
US
92.82% -151.11% 194.51% 5.12%
Non US
4.42% -136.75% 90.11% 84.23%

ZSRIX - Expenses

Operational Fees

ZSRIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 0.99% 0.01% 6.46% 52.69%
Management Fee 0.75% 0.00% 2.29% 70.39%
12b-1 Fee 0.00% 0.00% 1.00% 14.57%
Administrative Fee N/A 0.00% 0.70% N/A

Sales Fees

ZSRIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 0.00% 5.75% N/A
Deferred Load N/A 1.00% 5.00% N/A

Trading Fees

ZSRIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 0.50% 2.00% 90.00%

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.

ZSRIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 75.00% 0.00% 496.00% 45.73%

ZSRIX - Distributions

Dividend Yield Analysis

ZSRIX Category Low Category High ZSRIX % Rank
Dividend Yield 0.00% 0.00% 17.29% 9.36%

Dividend Distribution Analysis

ZSRIX Category Low Category High Category Mod
Dividend Distribution Frequency Monthly Monthly Monthly Monthly

Net Income Ratio Analysis

ZSRIX Category Low Category High ZSRIX % Rank
Net Income Ratio 3.48% -1.55% 11.51% 30.78%

Capital Gain Distribution Analysis

ZSRIX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

View More +

ZSRIX - Fund Manager Analysis

Managers

Venkatesh Reddy


Start Date

Tenure

Tenure Rank

May 31, 2019

3.0

3.0%

Venkatesh Reddy, Portfolio Manager and Chief Investment Officer. Mr. Reddy founded Zeo Capital Advisors in 2009. Prior to Zeo, he was co-founder of Laurel Ridge Asset Management. In that role, Mr. Reddy specialized in bankruptcy law, asset valuation and opportunities at the intersection of quantitative and fundamental analysis. Previously, Mr. Reddy structured derivative products and was head of delta-one trading as a portfolio manager within Bank of America’s Equity Financial Products group (EFP). Mr. Reddy also managed investments in event-driven situations, convertible instruments and options at Pine River Capital Management LP and HBK Investments LP, where he started his career. Mr. Reddy earned a BA in Computer Science with Honors from Harvard University.

Marcus Moore


Start Date

Tenure

Tenure Rank

Jul 01, 2021

0.92

0.9%

Marcus Moore, CPA, Assistant Portfolio Manager. Mr. Moore joined Zeo Capital Advisors, LLC in 2019 and focuses on credit research, including sustainability analysis for the firm. Prior to joining the adviser, he worked for 14 years at Wells Fargo Bank as an Analyst within Principal Investing. He was responsible for identifying investment opportunities within the retail, consumer and gaming sectors across various asset classes including high yield bonds, leveraged loans and structured products. Prior to working at Wells Fargo, Marcus worked at Edison Mission Energy as an analyst with responsibilities in forecasting and financial planning. He started his career at Hamilton Resources, Procter and Gamble and Goldman Sachs. A native of Capital Heights, MD, he earned a BS in Accounting from Morgan State University in Baltimore, MD and an MBA from the Anderson School at UCLA.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.08 28.19 5.64 3.19