Strategic Income Strategy

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 Strategic Income Composite seeks attractive risk-adjusted total return through a combination of income and capital appreciation by investing in a diversified portfolio of fixed income instruments of varying maturities. The strategy may invest in investment-grade and below investment-grade corporate and structured securities, syndicated bank loans, closed-end funds, exchange traded funds, common stock, preferred stock, 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 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 ICE BofA 3-Month U.S. Treasury Bill Index which measures the performance of a single issue of an outstanding treasury bill which matures closest to, but not beyond, three months from the rebalancing date. The issue is purchased at the beginning of the month and held for a full month; at the end of the month that issue is sold and rolled into a newly-selected issue. In January 2023, the benchmark was changed from ICE BofA Merrill Lynch U.S. Dollar 3-Month Deposit Offered Rate Constant Maturity Index to ICE BofA 3-Month U.S. Treasury Bill Index Benchmark for all periods. Further 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 is January 4, 2016 and the composite creation date is January 1, 2017.

Fee Schedule: The investment advisory fee applicable to a client 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 45 basis points. The investment advisory fee and total expense ratio for the Penn Mutual AM Strategic Income Fund, which is included in the composite, are 0.45% on all assets and 0.77%, respectively.