Portfolio Managers Mark Hudoff and Richard Mak review:
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The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Investment return and principal value of the fund will fluctuate, and shares may be worth more or less than their original cost when redeemed. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
Hotchkis & Wiley High Yield Fund standardized performance - from the dropdown menu, select month-end or quarter-end standardized fund performance. Click here for the standard yield.
You should consider the Hotchkis & Wiley High Yield Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund's summary prospectus and prospectus, which can be obtained by calling 800-796-5606. Read carefully before you invest.
Investments in debt securities involve credit risk and typically decrease in value when interest rates rise. Investments in lower rated and non rated securities involve greater risk. The fund may invest in derivatives, asset backed and mortgage backed securities, and foreign securities. Please read the fund prospectus for a full list of fund risks.
This material is for general information purposes and should not be used as the sole basis to make any investment decision. Views expressed are not intended to be relied upon as research regarding a particular industry, investment or the markets in general, nor is it intended to predict performance of any investment or serve as a recommendation to buy or sell securities. Hotchkis & Wiley (“H&W”) is not responsible for any damages or losses arising from any use of this information.
The portfolio manager’s views and opinions expressed are as of July 28, 2025. Such views are subject to change without notice and may differ from others in the firm, or the firm as a whole. The portfolio manager’s comments may include estimated and/or forecasted views, which are believed to be based on reasonable assumptions within the bounds of current and historical information. However, there is no guarantee that any estimates, forecasts or views will be realized. In the event of new information or changed circumstances, H&W reserves the right to change its investment perspective and outlook and has no obligation to provide revised assessments and/or opinions.
Information obtained from independent sources is considered reliable, but H&W cannot guarantee its accuracy or completeness. Certain information contained in this material represents or is based upon forward-looking statements. Due to various risks and uncertainties, actual events/results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Nothing contained herein may be relied upon as a guarantee, promise, assurance or a representation as to the future.
Spread usually refers to the difference between two prices (the bid and the ask) of a security or asset, or between two similar assets; Duration measures the price sensitivity of a bond to interest rate movements; Basis Points is a unit equal to 1/100th of 1% and is used to denote the change in a financial instrument; Tariffs are taxes imposed by one country on goods imported from another country; Collateralized Loan Obligation (CLO) is a securitization product created to acquire and manage a pool of leveraged loans; Exploration & Production (E&P) is a segment of the oil and gas industry linked to the initial process of searching for and extracting oil and gas; Investment Grade (IG) is a rating that signifies a municipal or corporate bond presents a relatively low risk of default; Internal Rate of Return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments; LNG - Liquified Natural Gas; M&A - Mergers and Acquisitions. High Grade Credit refers to investment-grade debt instruments, particularly bonds, issued by entities (corporations or governments) considered to have a low risk of default; Fallen Angel is a bond that had an investment-grade rating but has been reduced to junk bond status due to the issuer's weakened condition; Rising Star is a bond with a rating that has been increased because of the issuer's improving credit quality; Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price; Coupon is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity; Carry refers to the cost or return associated with holding an asset; Alpha is the excess return on an investment after adjusting for market-related volatility and random fluctuations; Capital Expenditure (CapEx) the payment with either cash or credit to purchase long-term physical or fixed assets used in a business's operations; Yield-to-worst represents the lowest yield a bondholder might receive if the bond is redeemed before maturity while still complying to agreement terms. Top ten holdings as of 9/30/25 as a % of the Fund’s net assets: CCO Holdings LLC 1.6%, Boardriders Inc. 1.3%, Carnival Corp. 1.2%, W.R. Grace Hldgs LLC 0.9%, Fortis Term Loan Senior Secured 0.9%, Venture Global Plaquemines LNG LLC 0.8%, Central Parent LLC 0.8%, Olin Corp 0.8%, Herc Holdings Inc. 0.8%, and BNP Paribas 0.8%. Fund holdings and/or sector allocations are subject to change and are not recommendations to buy or sell any security. Diversification does not assure a profit nor protect against loss in a declining market.
Fundamental Risk Ratings: As part of the research process, the risk profile of each security is discussed and scored. Risk scores are balanced against the valuation. Scores influence buy/sell decision and position sizing (1 = Best, 5 = Worst).
The ICE BofA BB-B US High Yield Constrained Index contains all securities in the ICE BofA US High Yield Index rated BB+ through B- by S&P (or equivalent as rated by Moody’s or Fitch), but caps issuer exposure at 2%. Index constituents are capitalization weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%. Unless otherwise noted, “high yield” market refers to the ICE BofA US High Yield Index. The ICE BofA US High Yield Index tracks the performance of below investment grade, but not in default, US dollar-denominated corporate bonds publicly issued in the US domestic market, and includes issues with a credit rating of BBB or below, as rated by Moody’s, Fitch and S&P. The indices do not reflect the payment of transaction costs, fees and expenses associated with an investment in the Fund. It is not possible to invest directly in an index.
Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as Standard & Poor's, Moody's and Fitch. These firms evaluate a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion. Ratings are expressed as letters ranging from 'AAA', which is the highest grade, to 'D', which is the lowest grade. Investment Grade includes credits that are BBB- or above.
Past performance is not indicative of future performance.
Mutual fund investing involves risk. Principal loss is possible.
The Hotchkis & Wiley Funds are distributed by Quasar Distributors, LLC
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