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At A Glance

Inception

16 Jul 2015

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DDJ opportunistic high yield fund

  • Investment Process

  • The fund seeks to exploit inefficiencies in the middle market, lower-tier, and leveraged loan segments of the high yield market and has the flexibility to invest across an issuer’s capital structure. DDJ aims to identify mis-priced credit risk and construct a portfolio with a significant yield advantage relative to the ICE BofA Merrill Lynch U.S. High Yield Index, a broad-based high yield bond index and the benchmark for the DDJ Opportunistic High Yield Fund.

    • Bottom-up Fundamental Research
      • Analyze entire company, not just an individual bond/loan tranche
      • 360-degree view of business – customers, suppliers, competitors
      • Identify sustainable competitive advantages
    • Cash Flow
      • Understand how a target company generates cash
      • Assess durability and sustainability of cash flows
    • Minimize Credit Losses
      • Calculate and continuously monitor company’s total enterprise value
      • Only invest in securities with appropriate margin of safety
      • Focus on loan-to-value and cash flow
      • Environmental, Social, and Governance ("ESG") factors evaluated for each investment
    • Legal Protections
      • Understand contractural protections in debt agreements
      • Assess "waterfall of value" and downside scenarios
    • Portfolio Construction
      • Security selection drives performance
      • No macro bets or themes
      • Construct concentrated portfolios – overweight high confidence positions
      • Flexibility to invest across the capital structure - bonds and bank loans
      • Long-term investment horizon
      • Limited exposure to stressed/distressed securities
      • Monitor to provide for appropriate diversification and liquidity
  • Performance

  • Hypothetical Investment Growth (%) 7/16/15 to 6/30/19

    Annualized Returns as of June 30, 2019* QTD YTD 1 Year 2 Years 3 Years Since Inception
    (7/16/15)
    DDJ Opportunistic High Yield (DDJIX) (net) 0.56% 5.09% 4.22% 4.15% 7.69% 6.30%
    ICE BofAML Non-Financial High Yield Index 2.41% 10.00% 7.38% 4.96% 7.47% 5.99%
    ICE BofAML US High Yield Index 2.45% 10.16% 7.58% 5.02% 7.54% 6.06%

    Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1.844.363.4898.

    *Performance less than 1 year is cumulative. Performance is net of all fees. The Fund imposes a 1.00% redemption fee on shares held for 60 days or less. DDJ 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 all share classes. This agreement is in effect through January 31, 2020. See the prospectus for more details. The Gross Expense Ratio is 3.81%, 3.14%, 3.89% and the Net Expense Ratio is 0.79%, 0.89% and 1.14% for DDJIX, DDJCX and DDJRX, respectively.

  • Holdings+

  • Asurion 3.86%
    Aveanna Healthcare 3.24%
    One Call Medical 3.07%
    GTT Communications 2.93%
    Alliant Holdings 2.78%
    Pharmaceutical Product 2.72%
    Uniti Group 2.70%
    Utex Industries 2.57%
    MEG Energy 2.47%
    MultiPlan 2.44%

    + Top Ten Holdings by issuer are as of June 30, 2019 and are subject to change.

  • Disclosures

  • The DDJ Opportunistic High Yield Fund is not suitable for all investors and an investor in the DDJ Opportunistic High Yield Fund should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by calling the Fund’s transfer agent at 844-363-4898 or by clicking here . Investors are encouraged to carefully read such materials before investing.

    Investing in mutual funds involves risk, and loss of principal is possible. The Fund targets investments in high yield, or below investment grade, fixed income securities. Such investments are subject to several types of investment risk, including, without limitation, credit risk (i.e., the risk that the issuer may be unable to make timely interest payments as well as repay the principal upon maturity), interest rate risk (i.e., the risk that their value will be inversely affected by fluctuations in the prevailing interest rates), market risk (i.e., the risk that their value may decline, sometimes rapidly or unpredictably, due to general market conditions), call or income risk, (i.e., the risk that certain debt securities with high interest rates will be prepaid or “called” by the issuer before they mature), and event risk (i.e., the risk that certain debt securities may suffer a substantial decline in credit quality and market value if the issuer restructures). In particular, debt investments in high yield issuers, which are described as speculative by major credit rating agencies and commonly referred to as “junk bonds”, are generally more susceptible to credit risk than other fixed income investments. In addition, the Fund’s high yield debt investments, including bank loans and Rule 144A securities, are subject to liquidity risk, as the Fund may not be able to sell investments at the best prices or at the value that the Fund places on them. The Fund also may target investments in equity securities, typically in high yield or leveraged issuers. Such investments, which are the most junior security in a company’s capital structure and typically subject to significant volatility in price, are subject to equity securities risk. An investor should be aware that the foregoing is not an exhaustive list of all of the risks associated with investing in the Fund.

    Diversification within the Fund does not assure a profit nor protect against loss in a declining market.

    The DDJ Opportunistic High Yield Fund is distributed by ALPS Distributors, Inc., 1290 Broadway, Ste. 1100, Denver, CO 80203. ALPS Distributors, Inc. is not affiliated with DDJ Capital Management, LLC.

    Not FDIC Insured – No Bank Guarantee – May Lose Value

    DEFINITIONS

    ICE BofA Merrill Lynch U.S. High Yield Index: The ICE BofA Merrill Lynch U.S. High Yield Index, which is the designated benchmark of the DDJ Opportunistic High Yield Fund, is a broad high yield index that tracks the performance of U.S. dollar-denominated below investment grade corporate debt publicly issued in the U.S. domestic market.  This index, which is unmanaged, does not incur any fees, and does not include any private obligations, convertible bonds, and certain other securities and obligations, does not reflect the specific investment restrictions and guidelines of the Fund; any information provided with respect to such index is provided for comparative purposes only. Source ICE Data Indices, LLC (“ICE Data”) is used with permission. ICE Data, its affiliates and their respective third-party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the index, index data and any data included in, related to, or derived therefrom. Neither ICE Data, its affiliates or their respective third-party providers shall not be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the index or the index data or any component thereof, and the index and index data and all components thereof are provided on an “as is” basis and users should use at their own risk. ICE Data, its affiliates and their respective third-party suppliers do not sponsor, endorse, or recommend DDJ, the Fund, or any of DDJ’s products or services.

    ICE BofA Merrill Lynch U.S. Non-Financial High Yield Index: The ICE BofA Merrill Lynch U.S. Non-Financial High Yield Index is a subset of the ICE BofA Merrill Lynch U.S. High Yield Index excluding all securities of Financial issuers.

    Tranche: Tranches are pieces of a pooled collection of securities, usually debt instruments, that are split up by risk or other characteristics in order to be marketable to different investors. Each portion, or tranche, is one of several related securities offered at the same time but with varying risks, rewards and maturities to appeal to a diverse range of investors.

    Waterfall of Value: This term is used to describe, in the context of an issuer’s restructuring, the value that each class of debt must be repaid before any residual value is permitted to be distributed by the issuer to more junior classes of debt.