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Holbrook
Structured Income Fund

The Fund's investment objective is to seek current income and the opportunity for capital appreciation to produce a total return.

OVERVIEW

The Holbrook Structured Income Fund seeks to deploy capital opportunistically across securitized credit with a specific focus on collateralized loan obligations, mortgage-backed securities (residential and commercial), other collateralized debt obligations, asset backed securities, and other structured or securitized securities.

The Holbrook Structured Income Fund aims to give investors exposure to all asset classes within securitized credit, with a focus on the four largest sectors:
1. Collateralized Loan Obligations ("CLOs")
2. Residential Mortgage-Backed Securities ("RMBS")
3. Commercial Mortgage-Backed Securities ("CMBS")
4. Asset Backed Securities ("ABS")

PERFORMANCE

As of 3/31/2024

3 MONTH

Holbrook Structured Income Fund

3.17%

6 MONTH

5.80%

YTD

3.17%

1 YEAR

12.49%

INCEPTION*

9.57%

Bloomberg US Aggregate Bond Index

-0.78%

5.99%

-0.78%

1.70%

0.65%

ANNUAL RETURNS

*Fund Inception is May 2nd, 2022

 

The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free 1-877-345-8646.

DISTRIBUTIONS

Record Date
Income
Short-Term Capital Gain
Long-Term Capital Gain
Reinvestment Price
05/31/2022
0.05120
9.98
06/30/2022
0.05791
9.93
07/31/2022
0.05493
9.93
08/31/2022
0.07512
9.96
09/30/2022
0.08040
9.90
10/31/2022
0.07826
9.87
11/30/2022
0.08806
9.85
12/08/2022
0.03620
9.80
12/31/2022
0.06875
9.82
01/31/2023
0.08969
9.87
02/28/2023
0.08513
9.79
03/31/2023
0.09019
9.71
04/30/2023
0.09586
9.73
05/31/2023
0.06079
9.73
06/30/2023
0.09462
9.73
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PORTFOLIO

As of 3/31/2024

Fund Characteristics

Total Fund Assets

Number of Securities

Efective Duration

Average Price (Portfolio)

Average Maturity (Portfolio)

Floating Rate (%)

30-Day SEC Yield

$161.9 million

83

0.30 years

$99.13

2.51 years

86.05%

9.50%

Fund Information

Ticker

CUSIP

Management Fee

Gross Expense Ratio

Net Expense Ratio

HOSIX

90214Q626

1.00%

2.36%

1.50%

The Fund’s Adviser has contractually agreed to reduce the Fund’s fees and/or absorb expenses of the Fund through at least September 1, 2024 to ensure that total annual Fund operating expenses after fee waiver and reimbursement (exclusive of any taxes, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, indirect expenses, expenses of other investment companies in which the Fund may invest, or extraordinary expenses such as litigation) will not exceed 1.75%, 1.50% and 2.00% of average daily net assets attributable to Class A, Class I and Investor Class shares, respectively.

Sector Breakdown

Coupon Breakdown

Ratings Breakdown

Capital Structure Breakdown

INVESTMENT TEAM

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Scott Carmack

CEO & Portfolio Manager

  • LinkedIn
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Ethan Lai

Portfolio Manager

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The 30-Day Yield represents net investment income earned by the Fund over the 30-day period ending 3/31/2024, expressed as an annual percentage rate based on the Fund's share price at the end of the 30-day period.

 

Bond Ratings: Bond ratings are assigned by a rating agency such as Standard & Poors, Moodys, Fitch, Egan Jones, KBRA, or DBRS. The ratings breakdown above utilizes ratings from all ratings agencies – depending which rating agency rated the bond deal. In the event that two rating agencies have rated the same bond deal, the higher credit rating is used. A bond rating evaluates the quality and safety of a bond, examining the issuer's financial strength and the likelihood that it will be able to meet scheduled repayments. Ratings range from AAA (best) to D (worst). Bonds receiving a rating of BB or below are not considered investment grade because of the relative potential for issuer default.

 

Definitions:

 

Bloomberg US Aggregate Bond Index: The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency).

 

Collateralized Loan Obligations ("CLOs"): A collateralized loan obligation (CLO) is a single security backed by a pool of debt. The process of pooling assets into a marketable security is called securitization. Collateralized loan obligations (CLO) are often backed by corporate loans with low credit ratings or loans taken out by private equity firms to conduct leveraged buyouts. A collateralized loan obligation is similar to a collateralized mortgage obligation (CMO), except that the underlying debt is of a different type and character—a company loan instead of a mortgage.

Residential Mortgage-Backed Securities ("RMBS"): Residential mortgage-backed securities (RMBS) are debt-based assets backed by the interest paid on residential loans. Mortgages and home-equity loans have a comparatively low rate of default and a high rate of interest since there is a high demand for the ownership of a personal or family residence. Investor risk is mitigated by pooling many of these loans to minimize the risk of default.

 

Commercial Mortgage-Backed Securities ("CMBS"): CMBS are securities which are backed by underlying collateral consisting of commercial mortgage loans on items such as retail properties, office properties, industrial properties, multi-family housing and hotels. The properties are income producing and operate for economic profit. Commercial real estate loans used as collateral in these types of transactions are often ten-year, fixed-rate loans. The loans are often no more than 80% of the value of the property and the borrowers are required to maintain minimum cash balances to cover interest payments. Unlike residential mortgage loans, commercial mortgage loans often have strong protections (“lock out periods”) against prepayments for up to ten years. CMBS are structured similarly to residential mortgage-backed securities with the principal and interest payments by the borrower from underlying loans being passed through to the holders of each tranche of the CMBS. Each tranche will have some layer of protection against failure of principal and interest payment. This is often achieved through absorption of loan losses from the pool of mortgage loans initially by the lowest tranche (typically the equity or non-investment grade tranche) of the CMBS pool and eventually working up toward the highest tranche.

 

Asset Backed Securities ("ABS"): An asset-backed security (ABS) is a type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables. It takes the form of a bond or note, paying income at a fixed rate for a set amount of time, until maturity.

 

Floating Rate: A floating interest rate is an interest rate that changes periodically. The rate of interest moves up and down, or "floats," reflecting economic or financial market conditions. Often, it moves in tandem with a particular index or benchmark, or with general market conditions. A floating interest rate can also be referred to as an adjustable or variable interest rate because it can vary over the term of a debt obligation.

 

30-Day SEC Yield: SEC Yield is computed in accordance with SEC standards measuring the net investment income per share over a specified 30-day period expressed as a percentage of the maximum offering price of the Fund’s shares at the end of the period.

 

Record Date: The record date is the cutoff established by a company to determine the shareholders eligible to receive a dividend or distribution. This pivots from the ex-dividend date, when the stock started trading without the value of its next dividend payment.

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