The Muzinich Credit Opportunities Fund (the “Fund”) is a tactical strategy that typically invests at least 80% of its net assets in corporate bonds and floating rate loans that the Advisor believes have attractive risk/reward characteristics and which are issued by U.S. and foreign corporations. The Credit Opportunities Fund seeks to provide a high level of income and capital appreciation.
The Fund’s portfolio managers actively manage the Fund, selecting bonds and loans based on rigorous bottom-up credit analysis of each security in the Fund’s portfolio. The fund employs a “go anywhere” strategy that allows for flexibility to dynamically allocate to positive return sectors over the course of a full credit cycle. Portfolio overlays (hedges) may occasionally be utilized by the Fund’s portfolio managers to reduce the effects of rising interest rates and/or periods of corporate spread widening. The portfolio managers may use duration management and sector rotation in order to seek absolute return. The Fund may sell a holding when it meets the portfolio manager’s expectations, no longer offers compelling relative value, shows deteriorating fundamentals, or if it falls short of the portfolio manager’s expectations, among other reasons. The portfolio manager may also decide to hold a bond or loan after a default.