Polen High Income ETF (PCHI)

Overview

PCHI provides segmented exposure to the North American fixed income market, aiming to outperform the broader high yield market throughout a credit cycle. The fund focuses on delivering total returns through investments in fixed- and floating-rate high yield debt securities from middle-market issuers located in the U.S., and partially in Canada. These investments primarily comprise below-investment-grade securities, including corporate bonds, senior loans, convertible bonds, and preferred stock that are evaluated to be undervalued. Adopting a value investing strategy, the fund seeks to achieve a balance between risks and potential rewards of discounted securities.

PCHI employs a bottom-up investment approach with a strong emphasis on downside protection. The intention is to add value primarily through careful security selection. Rather than concentrating on maturity and duration, the fund generally anticipates holding securities with shorter maturities and durations compared to those of broader high yield market indices. The typical portfolio composition consists of 60 to 150 distinct bonds, ensuring a diversified yet concentrated investment approach.

Products and Services

• High Yield Debt Securities

  The main products offered by PCHI include fixed- and floating-rate high yield debt securities, which are investment instruments that yield higher returns due to their below-investment-grade status. This category encompasses a variety of debt forms including corporate bonds and senior loans, targeting middle-market issuers in North America.

• Convertible Bonds

  PCHI provides exposure to convertible bonds, which are debt securities that can be converted into equity at a predetermined price. This investment type offers an opportunity for capital appreciation while still providing fixed income through interest payments.

• Preferred Stock

  The fund also invests in preferred stock, which represents an ownership stake in a company with a higher claim on assets and earnings than common stock. Preferred stocks generally provide fixed dividends and can be an attractive option for investors seeking stable income alongside growth potential.

• Value Investing Strategy

  PCHI's value investing approach focuses on identifying undervalued securities within the high yield space. By selectively investing in these discounted assets, the fund aims to enhance total returns while carefully managing the associated risks.

• Downside Protection Focus

  With a commitment to preserving capital, PCHI prioritizes downside protection in its investment processes. This involves thorough assessments of securities to safeguard against adverse market movements and foster sustainable returns.

• Bottom-Up Investment Approach

  The bottom-up investment strategy used by PCHI emphasizes the significance of individual security analysis over macroeconomic trends. By concentrating on the fundamentals of specific securities, the fund aims to identify optimal investment opportunities.

• Diversified Bond Portfolio

  The fund maintains a diversified bond portfolio containing between 60 to 150 bonds, which helps mitigate risk while allowing for concentrated exposure to promising high yield securities.