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DDJ Opportunistic High Yield Fund

Investment Objective

The Fund’s investment objective is overall total return consisting of a high level of current income together with long-term capital appreciation.

Principal Investment Strategies of the Fund

The Fund pursues its investment objective by seeking to outperform the broader high yield market over a complete credit cycle. The “credit cycle” is a cyclical event that generally occurs over a several year timeframe as access to credit increases or decreases for borrowers. The Fund seeks to achieve its objective mainly by investing in high yield fixed income securities with a focus on “middle market” issuers in the United States and, to a lesser extent, Canada. DDJ considers middle market companies to be those with normalized earnings before interest, tax and depreciation (“EBITDA”) in the range of $20-250 million. DDJ believes that the flexibility to invest, sell, and reinvest throughout the capital structure of an issuer (and in particular, in both more senior bank loans and more junior high yield bonds) will enable DDJ to tailor its investment approach to the specific credit-related circumstances of that issuer as they may change from time to time and thereby select the most attractive opportunities for the Fund.

The Fund intends to invest a substantial amount of its assets in credit instruments that are rated below investment grade by some or all relevant independent rating agencies, including Moody’s Investors Service, Standard and Poor’s Rating Services and Fitch Ratings. Additionally, certain other high yield securities may be unrated by rating agencies, but determined by DDJ to be of similar quality as other below investment grade bonds and credit instruments and accordingly purchased for investment by the Fund. The Fund does not have a percentage limitation on investing in securities that are rated below investment grade.

High yield fixed income securities include high yield corporate bonds (commonly known as “junk bonds”), senior loans, convertible bonds, preferred stock, and other types of debt instruments (including, without limitation, unregistered (Rule 144A) securities, floating and variable rate securities and other restricted fixed income securities to the extent permitted by the Investment Company Act of 1940, as amended (the “1940 Act”)). In addition, the Fund may also purchase equity securities or otherwise hold positions in equity or other assets that the Fund receives as part of a reorganization process of a high yield issuer, and may hold those assets until such time as DDJ believes that a disposition is most advantageous. From time to time, the Fund may make investments in distressed or defaulted securities or in issuers that are in bankruptcy. The Fund does not have any maturity or duration requirements. However, the Fund typically targets securities that, on average, have a shorter maturity and duration than the maturity and duration of broad-based high yield market indices generally. In making these investments, DDJ will seek to purchase instruments that DDJ believes are undervalued and offer a compelling risk/reward ratio. Specifically, DDJ’s investment process attempts to exploit inefficiencies in the high yield credit markets by adhering to a disciplined, bottom-up, fundamentally-oriented investment process with a strict adherence to downside protection. This process applies value investing principles through exhaustive research coupled with financial, structural and legal analysis, including a review of bankruptcy law considerations where applicable. The foundation of this investment process is to derive an accurate, real-time valuation of a target company, and only invest in securities of that company’s capital structure that offer a significant margin of safety coupled with strong total return potential. By utilizing such a fundamental, bottom-up approach to investing, DDJ seeks to add value first and foremost through security selection.

DDJ intends to manage a relatively concentrated portfolio typically comprising between 60-80 issuers and 80-100 issues. The Fund has adopted an investment policy providing that under normal circumstances, the Fund will invest at least 80% of the value of its assets (net assets plus the amount of any borrowings for investment purposes) in high yield fixed income securities.

Performance

Cumulative as of 02/28/2017 1 month 3 month 1 year YTD Since Inception*
Class Institutional (NAV) 1.30% 5.42% 18.92% 3.40% 13.63%
BofA Merrill Lynch U.S. High Yield Non-Financial Index (H0NF)1 1.53% 5.00% 23.08% 2.96% 12.29%
Class I (NAV) 1.30% 5.49% 18.84% 3.49% 13.55%
BofA Merrill Lynch U.S. High Yield Non-Financial Index (H0NF)1 1.53% 5.00% 23.08% 2.96% 12.29%
Class II (NAV) 1.28% 5.32% 18.45% 3.35% 13.00%
BofA Merrill Lynch U.S. High Yield Non-Financial Index (H0NF)1 1.53% 5.00% 23.08% 2.96% 12.29%
Quarterly as of 12/31/2016 1 month 3 month 1 year YTD Since Inception*
Class Institutional (NAV) 1.95% 3.20% 18.92% 14.70% 9.89%
BofA Merrill Lynch U.S. High Yield Non-Financial Index (H0NF)1 1.98% 1.90% 23.08% 18.33% 9.06%
Class I (NAV) 1.94% 3.11% 18.84% 14.51% 9.73%
BofA Merrill Lynch U.S. High Yield Non-Financial Index (H0NF)1 1.98% 1.90% 23.08% 18.33% 9.06%
Class II (NAV) 1.91% 3.05% 18.45% 14.24% 9.34%
BofA Merrill Lynch U.S. High Yield Non-Financial Index (H0NF)1 1.98% 1.90% 23.08% 18.33% 9.06%

Performance data quoted represents past performance and is no guarantee of future results. Investment returns and the principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Please call 1-844-363-4898 for current month end performance.

*Fund Inception is 7/16/2015

Institutional Class: Gross Expense Ratio - 5.19% †, Net Expense Ratio- 0.79% †, Redemption Fee- 1.00% as of 7/15/2015

Class I: Gross Expense Ratio - 5.10% †, Net Expense Ratio- 0.89% †, Redemption Fee- 1.00% as of 7/15/2015

Class II: Gross Expense Ratio - 6.18% †, Net Expense Ratio- 1.14% †, Redemption Fee- 1.00% as of 7/15/2015

1The BofA Merrill Lynch US Non-Financial High Yield Index is a subset of The BofA Merrill Lynch US High Yield Index excluding all securities of financial issuers.

DDJ Capital Management, LLC (the “Adviser”) has contractually agreed to limit the amount of the Fund’s Total Annual Fund Operating Expenses, exclusive of Distribution and Service (12b-1) fees, Shareholder Servicing expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses, to an annual rate of 0.79% of the Fund’s average daily net assets for each of the Class I, Class II and Institutional Class shares, respectively. This agreement is in effect through January 31, 2018. The Adviser will be permitted to recover, on a class-by-class basis, expenses it has borne through the agreement described above to the extent that the Fund’s expenses in later periods fall below the annual rate set forth above. The Fund will not be obligated to pay any such deferred fees and expenses more than three years after the end of the fiscal year in which the fees and expense were deferred. The Adviser may not discontinue this waiver without the approval by the Fund’s Board of Trustees.

as a percentage of amount redeemed within 60 days of purchase

Holdings

Holdings as of 01/31/2017, Subject to change

Security Symbol Weight
HRG Group, Inc.40434JAC4.72%
AF Borrower LLC (Accuvant Finance LLC), Initial Term Loan (Second Lien)LX1424474.69%
Cleaver-Brooks, Inc.185401AD4.34%
Opal Acquisition, Inc.68347TAA3.47%
Tenet Healthcare Corp.88033GCN3.29%
Century Aluminum Co.156431AK3.18%
Clear Channel Worldwide Holdings, Inc.18451QAG3.14%
Sterling Midco Holdings, Inc. (Sterling Holdings Ultimate Parent Inc.) Initial Loan (Second Lien)LX1447793.01%
Berlin Packaging LLC, Initial Term Loan (Second Lien)LX1410752.99%
American Tire Distributors, Inc.00214TAA2.75%

Holdings as of 12/31/2016, Subject to change

Security Symbol Weight
AF Borrower LLC (Accuvant Finance LLC), Initial Term Loan (Second Lien)LX1424474.81%
HRG Group, Inc.40434JAC4.79%
Cleaver-Brooks, Inc.185401AD4.43%
Short Term & Other Net Assets3.76%
Opal Acquisition, Inc.68347TAA3.52%
Clear Channel Worldwide Holdings, Inc.18451QAG3.16%
Tenet Healthcare Corp.88033GCN3.13%
Sterling Midco Holdings, Inc. (Sterling Holdings Ultimate Parent Inc.) Initial Loan (Second Lien)LX1447793.07%
Berlin Packaging LLC, Initial Term Loan (Second Lien)LX1410753.04%
Century Aluminum Co.156431AK3.04%
American Tire Distributors, Inc.00214TAA2.76%
National Vision, Inc., Initial Term Loan (Second Lien)LX1357672.73%
Asurion LLC (Asurion Corp.), Term Loan (Second Lien)LX1356622.71%
Real Alloy Holding, Inc.75583RAA2.42%
Heartland Dental Care LLC, Term Loan (Second Lien)LX1270812.41%
Alliant Holdings Intermediate LLC016094AA2.40%
Lanai Holdings III, Inc., Initial Term Loan (Second Lien)LX1471282.12%
Optimas OE Solutions Holding LLC / Optimas OE Solutions, Inc.68403UAA1.95%
Parq Holdings Ltd., Closing Date Term Loan (First Lien)LX1420191.89%
PCI Pharma Services Term Loan (Second Lien)LX1531831.88%
Optima Specialty Solutions68403RAJ1.87%
Simmons Foods, Inc.828732AB1.83%
U.S. Renal Care, Inc., Term Loan (Second Lien)LX1489271.82%
Delta 2 (Lux) S.a.r.l (Formula One), Term Loan (Second Lien)LX1395851.79%
Accudyne Industries Borrower / Accudyne Industries LLC828326AA1.72%
CPM Acquisition Corp. (Crown Acquisition Corp.), Initial Term Loan (Second Lien)LX1438981.51%
PFS Holdings Corporation, Term Loan (Second Lien)LX1348831.39%
Forum Energy Technologies, Inc.34984VAB1.37%
Summit Midstream Holdings LLC / Summit Midstream Finance Corp.86614WAC1.34%
Lonestar Intermediate Super Holdings LLC, Term LoanLX1543161.27%
Material Sciences00MSC0011.26%
Evergreen Skills Lux S.A.R.L., Initial Term Loan (First Lien)LX1365011.24%
NVA Holdings, Inc. Term Loan (Second Lien)LX1400451.23%
Genoa Healthcare 10/25/2024, TLLX1557401.23%
Carecore National, LLC Term LoanLX1353451.20%
Fairmount Santrol, Inc. (Fairmount Minerals, Ltd.), New Tranche B-2 Term LoanLX1361211.19%
Veritas US, Inc. Initial Dollar Term B-1 LoanLX1510401.19%
SESI LLC78412FAP1.19%
Equinox Holdings, Inc., Initial Loan (Second Lien)LX1269301.17%
Evergreen Skills Lux S.A R.L., Initial Term Loan (Second Lien)LX1365031.13%
Ancestry.comLX1553671.12%
Qualitytech LP/QTS Finance Corp.74759BAB1.12%
Sabine Pass Liquefaction LLC785592AM1.03%
Clear Channel Worldwide Holdings, Inc.18451QAL0.96%
Bioscrip, Inc., Initial Term Loan BLX1301840.84%
Lully Finance S.A R.L. (Lully Finance LLC), Initial Term B-1 Loan (Second Lien)LX1468010.68%
Acadia Healthcare Co., Inc.00404AAJ0.62%
Sabine Pass Liquefaction LLC785592AJ0.59%
Surgery Center Holdings, Inc.86881WAA0.58%
Mercer International, Inc.588056AR0.58%
Bioscrip, Inc., Delayed Draw Term LoanLX1311020.51%
UTEX Industries, Inc., Initial Loan (Second Lien)LX1371380.48%
IASIS Healthcare LLC / IASIS Capital Corp.45072PAD0.48%
SRS Distribution, Inc. Initial Term Loan (Second Lien)LX1530350.42%
Clear Channel Worldwide Holdings, Inc.18451QAH0.41%
WIS International, Loan (Second Lien)LX1272360.34%
Zayo Group LLC / Zayo Capital, Inc.989194AM0.29%
Continental Resources, Inc.212015AN0.25%
99 Cents Only Stores, Tranche B-2 LoanLX1331890.23%
Teine Energy Ltd.879068AA0.14%
Continental Resources, Inc.212015AH0.14%
Continental Resources, Inc.212015AL0.13%
Material Science00MSC0020.10%

Dividends

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