Short Duration High Yield Strategy

*Cumulative return for the period is from October 1, 2023 (Inception of strategy) to December 31, 2023.

Definition of Firm: Penn Mutual Asset Management, LLC (“PMAM” or "The Firm") is a registered investment adviser with the U.S. Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940.

Important Performance Disclosure: PMAM claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. PMAM has been independently verified for the periods January 1, 2012 through December 31, 2023. A copy of the verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. Registration with the U.S. Securities and Exchange Commission by the investment adviser does not imply any level of skill or training. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Methodology: Total returns are presented in U.S. dollars both gross and net of investment advisory fees, are inclusive of commissions and transaction costs, and assume reinvestment of any dividends, interest income, capital gains, or other earnings. Periods greater than one year are shown as average annual total returns. Gross composite returns do not reflect the reduction of investment advisory, administrative or custodial fees but do include trading expenses. Net composite returns are reduced by the actual investment management fee and incentive fee and any administrative, custodial, or other fees and expenses incurred. When calculating the actual investment management fee for a private fund, the calculation may include a share class with no management fee or a fee may be waived; thus, the actual investment management fee calculated may be lower or higher depending on the size of the no-fee share class or waived fee amount. “Dispersion of Portfolio Returns” presented for each annual period is calculated using the asset-weighted standard deviation of the annual returns of all portfolios that were included in the composite for the entire year. If during a particular year the composite does not contain more than 5 accounts for the entire year, then "N/A" will be displayed. "Composite 3-Yr St Dev" and "Benchmark 3-Yr St Dev" are rolling 3-year standard deviation calculations, which measure the variability of the monthly performance returns for the composite and benchmark index return over the preceding 36-month period on an annualized basis. If the composite has not been in existence for at least 3 years as of a particular year-end, then “N/A” will be displayed. Performance data is shown rounded to the nearest hundredth.

A list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds are available upon request. Policies for valuing investments, calculating performance, and preparing GIPS Reports are available upon request. Past performance is not indicative of future results and no investment is guaranteed for return of principal and/or return on investments.  All information provided and used in calculations is believed to be correct, but accuracy cannot be guaranteed. 

Composite Description: The Short Duration High Yield Composite seeks a high level of current income and attractive risk-adjusted total return by investing primarily in a diversified portfolio of short duration high yield instruments. The strategy may invest without limit in, investment grade and below investment grade corporate and structured (i.e., ABS, CMBS, RMBS) securities, syndicated bank loans, closed-end funds, exchange traded funds, convertible bonds and foreign debt securities including emerging market debt, and derivatives. The strategy may also invest in securities denominated in foreign currencies issued by both domestic and foreign issuers. The strategy may also invest in common stock, preferred stock, money market instruments, which may include repurchase agreements and reverse repurchase agreements. The strategy may invest in derivatives, which are instruments that have a value derived from, or directly linked to, an underlying asset, such as equity securities, fixed income securities, commodities, currencies, interest rates or market indices. The strategy may implement short positions through derivatives such as options, futures or swaps.

Benchmark Description: The benchmark for this composite is the ICE BofA 0-2 Year Duration BB-B U.S. High Yield Constrained Index. The ICE BofA 0-2 Year Duration BB-B U.S. High Yield Constrained Index measures the performance of ICE BofAML 0-2 years Duration BB-B U.S. High Yield Bond. Its all securities in the ICE BofAML U.S. High Yield Index rated BB1 through B3 and with a duration-to-worst less than two years, 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%. Issuers that exceed the limit are reduced to 2% and the face value of each of their bonds is adjusted on a pro-rata basis. Similarly, the face values of bonds of all other issuers that fall below the 2% cap are increased on a pro-rata basis. In the event there are fewer than 50 issuers in the Index, each is equally weighted and the face values of their respective bonds are increased or decreased on a pro-rata basis. Further information is available upon request. Benchmark return information is provided for comparative and referential purposes only. Benchmark information is provided by third party sources, and is considered to be accurate.

Inception and Composite Creation Date: The inception date and composite creation date is October 1, 2023.

Fee Schedule: The investment advisory fee applicable to a portfolio depends on a variety of factors, including but not limited to portfolio size, the level of committed assets, service levels, the use of a performance fee or minimum fee arrangement, and other factors. The current maximum scheduled investment advisory fee for this strategy is 35 basis points. The High Yield Short Duration Composite includes a limited distribution pooled fund (Short Duration High Yield Fund) with a current maximum scheduled advisory fee of 35 basis points and a current maximum total expense ratio of 58 basis points.