Penn Capital Short Duration High Income Fund Institutional Class (PSHNX)

Overview

The company specializes in investments focused on generating returns through a portfolio primarily comprised of fixed income securities and senior floating rate loans that are below investment grade. It operates with a strategic emphasis on high yield fixed income securities and senior floating rate loans that are predominantly rated BB+ or lower by S&P, Ba1 or lower by Moody’s, or, if unrated, deemed by the Advisor to be of similar credit quality. This investment approach targets investors looking for opportunities in the higher-risk, higher-return segment of the bond market, leveraging the expertise of its Advisor to select investments that aim to achieve the fund's investment objective.

Products and Services

• High Yield Fixed Income Securities:

  These are debt securities such as bonds, notes, and debentures rated BB+ or lower by S&P or Ba1 or lower by Moody's. They offer higher interest rates in comparison to investment-grade securities due to their higher risk of default. The fund primarily invests in these securities aiming to achieve higher returns for investors willing to accept a higher level of risk.

• Senior Floating Rate Loans:

  These loans are senior in the capital structure, giving them priority over other debts in case of a borrower’s bankruptcy or liquidation. Their interest rates float, adjusting with market interest rates, which can provide a hedge against inflation. Rated similarly to high yield fixed income securities, these loans offer a balance of risk and return, aiming for income generation while seeking to protect against downside risks.