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Annual
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SHENKMAN CAPITAL FLOATING
RATE HIGH INCOME FUND
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September 30, 2022
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SHENKMAN CAPITAL SHORT
DURATION HIGH INCOME FUND
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Each a series of Advisors Series Trust (the “Trust”)
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SHENKMAN CAPITAL
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Institutional
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FLOATING RATE
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Class F
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Class
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HIGH INCOME FUND
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(SFHFX)
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SHENKMAN CAPITAL
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Institutional
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SHORT DURATION
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Class A
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Class C
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Class F
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Class
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HIGH INCOME FUND
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(SCFAX)
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(SCFCX)
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(SCFFX)
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(SCFIX)
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c/o U.S. Bank Global Fund Services
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P.O. Box 701
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Milwaukee, Wisconsin 53201-0701
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1-855-SHENKMAN (1-855-743-6562)
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SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SHAREHOLDER LETTER
September 30, 2022
Dear Shareholder,
Fund Overview and Performance
The Shenkman Capital Floating Rate High Income Fund (the “Fund”) seeks to generate high current income through active selection and management of investments, primarily in the
leveraged loan universe, and looks to build a portfolio with the best chance of providing superior risk-adjusted returns. For the fiscal year ended September 30, 2022 (the “Annual Period”), the Morningstar* LSTA US Leveraged Loan Index (the “Index”)
and Morningstar LSTA US B- Ratings and Above Loan Index (the “B- & Above Index”) returned -2.53% and -2.03%, respectively, as renewed recession fears and a firmly hawkish tone from the Federal Reserve put a damper on equity and fixed income
returns for the Annual Period. The Fund’s Institutional Class shares (SFHIX) had a net return of -3.26% for the Annual Period. The Fund’s F class shares (SFHFX) had a net return of -3.26% for the Annual Period.
The primary driver of Fund performance relative to the Index during the Annual Period was the allocation to high yield bonds as fixed income assets underperformed floating rate
instruments amid sharply higher interest rates. For further context, over the Annual Period, high yield and investment grade bonds, as measured by the ICE BofA U.S. High Yield Index (H0A0) and the ICE BofA U.S. Corporate Index (C0A0), posted returns
of -14.06% and -18.19%, respectively, while the leveraged loan Index returned -2.53%. The Fund’s return of -3.26% showed outperformance versus other corporate credit asset classes. Periodic Index returns by rating exhibited differentiation, with
BB-rated, B-rated, and CCC & Below-rated loans returning +1.13%, -2.64%, and -11.28%, respectively. The Fund had a lower weight than the Index in riskier credit profiles, including CCC-rated/below and second-lien loans, both of which contributed
to relative performance. Negative selection and underweight in BB rated credits were a detractor for the period. From a sector attribution standpoint, the Fund benefitted from an underweight and positive selection in Health Care Equipment &
Services and positive selection in Software & Services. Main detractors were negative selection in Telecommunication Services and Transportation.
The Fund remained well-diversified, with investments in over 350 issuers across more than 50 industries**. For liquidity purposes, the Fund targets an allocation of approximately
15% of assets to cash and bonds.
Market Commentary
Following a record $614bn in leveraged loan issuance in 2021, primary loan market activity slowed significantly in the second quarter of 2022 amid increased market volatility before
grinding to a near-halt in the third quarter with just $21.4bn in new leveraged loans coming to market. Year-to-date issuance of $189.6bn represents a 61% decline in volume versus the same period last year. Lenders who typically tap the leveraged
loan market have
1
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
approximately $32bn in underwritten loans on their balance sheets that have yet to hit the market. Investors are now potentially able to push for attractive original issue discounts (OIDs), higher
spreads, and more robust covenant protections to get deals to clear the market, which is costly for dealers but could create a unique opportunity for investors. After setting a new annual record for Collateralized Loan Obligation (CLO) formations in
2021 with $186.7bn coming to market, issuance slowed in the first quarter as $30.7bn came to market following the transition to Secured Overnight Financing Rate (SOFR) at the start of the year. CLO issuance rebounded during the second quarter with
$41.6bn coming to market, followed by a further $33.1bn during the third quarter. Year-to-date volume of $105.9bn is on pace for the second-highest annual volume on record. Retail demand for leveraged loans receded in the third quarter as $14.6bn
flowed out of loan mutual funds, the second consecutive quarterly outflow, though fund flows for the Annual Period remained positive at more than $15.3bn. According to J.P. Morgan Research (the “Group”), the trailing twelve-month par-weighted default
rate ended the Annual Period at 1.14%, an increase of 43 basis points (bps) for the year. The Group recently raised its default rate forecast to 1.75% full-year 2022 and 2.75% for 2023. For context, the historical leveraged loan default rate is 3.1%.
Outlook
The last two years were largely centered on the global pandemic and subsequent reopening of global economies. However, 2022 has ushered in a new era of interest rate hikes, a Fed
balance sheet wind-down, rapidly rising inflation, soaring food and energy costs, and an armed conflict that may reverse decades of globalization, further tangling already strained supply chains. Investors are now grappling with the downstream
effects of these factors and how they will impact earnings in the coming quarters, with intense focus on third quarter corporate results and earnings outlooks. The Fed has ratcheted up its hawkish tone in recent weeks, synthesizing its objective of
tackling inflation by any means necessary. This last quarter of the year may test market resolve as these initiatives take hold, potentially pressuring both consumer finances and corporate earnings, while geopolitical risks remain prevalent. We
continue to monitor developments on all fronts to assess the potential impacts across industries and the overall economy. The relatively benign default environment and upward trend in rates could remain a tailwind for the asset class. We believe the
leveraged loan market offers compelling relative value, especially with the Fed poised to take further action in the coming months to combat inflation. Keeping with our investment philosophy, we will remain vigilant and proactively manage the
portfolio and trade exposures across our global platform in an attempt to limit downside risk during this volatile period while still seeking to generate a high level of current income.
2
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
We remain constructive on the loan market overall; however, we believe credit selection will continue to drive performance differentiation this year. If there are bouts of
volatility, we believe there is potential for increased dispersion between better quality and riskier credits after a period of significant compression. Therefore, we remain cautious as we continuously review the relative value of the Fund’s
positions. A core tenet of our investment philosophy remains the preservation of capital as we strive to deliver, or beat, market returns throughout the cycle with a lower risk profile. As a conservative asset manager, we intend to remain defensively
positioned in our portfolios and will seek to take advantage of market dislocations only in creditworthy, Shenkman-approved issuers in both the primary and secondary markets.
Thank you again for your continued support and trust in the Fund. We look forward to growing with you.
Sources: LCD, JPM Research
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*
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Morningstar completed its acquisition of Leveraged Commentary & Data (LCD) from S&P on June 1, 2022.
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**
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Morningstar transitioned all Leveraged Loan Sector Indices to the Global Industry Classification Standard (GICS®)
industry classifications effective July 1, 2022.
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3
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
DISCLOSURES
The Shenkman Group of Companies (the “Shenkman Group”) consists of Shenkman Capital Management, Inc., and its affiliates and subsidiaries, including, without limitation, Shenkman Capital Management Ltd,
Romark Credit Advisors LP, and Romark CLO Advisors LLC. The Shenkman Group focuses on the leveraged finance market and is dedicated to providing in-depth, bottom-up, fundamental credit analysis.
Shenkman Capital Management, Inc. (“Shenkman” or “Shenkman Capital”) is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”). Romark Credit Advisors LP is
also registered as an investment adviser with the SEC and Romark CLO Advisors LLC is registered as a relying adviser of Romark Credit Advisors LP (together, “Romark”). Shenkman Capital Management Ltd is a wholly-owned subsidiary of Shenkman Capital
Management, Inc. and is authorized and regulated by the U.K. Financial Conduct Authority. Such registrations do not imply any specific skill or training. EEA Investors: This material is provided to you because you have been classified as a
professional client in accordance with the Markets in Financial Instruments Directive (Directive 2014/65/EU) (known as “MiFID II”) or as otherwise defined under applicable local regulations. If you are unsure about your classification or believe that
you may be a retail client under these rules, please contact the Shenkman Group and disregard this information.
Past performance does not guarantee future results.
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
Mutual fund investing involves risk. Principal loss is possible. There can be no assurance that the Fund will achieve its stated objective. In addition to the normal risks associated
with investing, bonds and bank loans, and the funds that invest in them are subject to interest rate risk and can be expected to decline in value as interest rates rise. Investment by the Fund in lower-rated and non-rated securities presents a
greater risk of loss to principal and interest than higher-rated securities. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. Derivatives may
involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Leverage may cause the effect of an increase or decrease in the value of the
portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
Investments in CLOs carry additional risks, including the possibility that distributions from collateral securities will not be adequate to make interest payments and that the quality
of the collateral may decline in value or default
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
Credit quality weights by rating are derived from the highest bond rating as determined by S&P, Moody’s or Fitch. Bond ratings are grades given to bonds that indicate their credit quality as
determined by private independent rating services such as Standard & Poor’s or Moody’s and Fitch. These firms evaluate a bond issuer’s
4
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
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. In limited situations when none of the three rating agencies have issued a formal rating, the Advisor will classify the security as nonrated.
The ICE BofA U.S. High Yield Index (H0A0) has an inception date of August 31, 1986 and tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S.
domestic market.
The ICE BofA U.S. Corporate Index (C0A0) has an inception date of December 31, 1972, and tracks the performance of U.S. dollar denominated investment grade corporate debt publicly issued in the U.S.
domestic market.
The Morningstar® LSTA US Leveraged Loan Index is a market-value weighted index designed to measure the performance of the
US leveraged loan market.
The Morningstar® LSTA US B- Ratings and Above Loan Index tracks the current outstanding balance and spread over LIBOR for
fully funded institutional term loans that are rated B- or above and syndicated to U.S. loan investors. The Morningstar® LSTA US B- Ratings and Above Loan Index is
unmanaged, not available for direct investment and does not reflect deductions for fees or expenses.
You cannot invest directly in an index.
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please refer to the Schedule of Investments for a
complete list of fund holdings.
An original issue discount (OID) is the discount in price from a bond’s face value at the time a bond or other debt instrument is first issued.
The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.
Basis points (bps) are equivalent to one-one hundredths of a percentage point.
Must be preceded or accompanied by a prospectus.
The credit rating is a financial indicator to potential investors of debt securities such as bonds. These are assigned by credit rating agencies such as Moody’s and Standard & Poor’s to have letter
designations (such as AAA, B, CC) which represent the quality of a bond. Moody’s assigns bond credit ratings of Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, with WR and NR as withdrawn and not rated. Standard & Poor’s assigns bond credit ratings of AAA,
AA, A, BBB, BB, B, CCC, CC, C, D.
These materials may contain information obtained from third parties, and may include ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third party
content in any form is prohibited except with the prior written permission of the related third party. Third-party information contained in this presentation was obtained from sources that the Shenkman Group considers to be reliable; however, no
representation is made as to, and no responsibility, warranty or
5
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
liability is accepted for, the accuracy, completeness, timeliness or availability of such information, including ratings. Neither the Shenkman Group nor any third party content provider is responsible
for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. NEITHER THE SHENKMAN GROUP NOR ANY THIRD PARTY CONTENT PROVIDERS GIVE ANY EXPRESS OR IMPLIED WARRANTIES,
INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NEITHER THE SHENKMAN GROUP NOR ANY THIRD PARTY CONTENT PROVIDERS SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY,
COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF SUCH THIRD PARTY CONTENT, INCLUDING
RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and
should not be relied on as investment advice.
References to indices are for information purposes only. The Shenkman Group believes that any indices discussed herein are broad market indices and are indicative of the type of investments that the
Shenkman Group may purchase, but may contain different securities than those held in the Shenkman Group portfolios managed pursuant to the strategies described herein. The indices have not been selected to represent an appropriate benchmark. The
strategies referred to herein are not design to mimic the investments on which any index is based. The indices are unmanaged and not available for direct investment and do not reflect deductions for fees or expenses.
The Shenkman Capital Floating Rate High Income Fund is distributed by Quasar Distributors, LLC, which is not affiliated with Shenkman Capital Management, Inc.
6
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SHAREHOLDER LETTER
September 30, 2022
Dear Shareholder,
The Shenkman Capital Short Duration High Income Fund (the “Fund”) continued to seek a high level of current income over the past fiscal year by focusing on investments within the
non-investment grade universe, we believed to be high quality, yet short duration. The Fund’s Institutional Class (SCFIX) returned -4.62% for the fiscal year-ended September 30, 2022 (the “Annual Period”), and ended the Annual Period with a
duration-to-worst of 1.02 years and average final maturity of 3.72 years*. The Fund’s Class A shares returned -4.99% (without sales load) and -7.82% (with maximum sales load imposed on purchases of 3.00%) for the Annual Period, and the Class F shares
returned -4.79%. Additionally, the Class C shares returned -5.71% (without sales load) and -6.63% (with maximum deferred sales load of 1.00%) for the Annual Period. The Fund’s benchmark, the ICE BofA 0-2 Year Duration BB-B U.S. HY Constrained Index
(H42C), returned -3.22% for the Annual Period. The ICE BofA 0-3 Year U.S. Treasury Index (G1QA) returned -3.39% for the Annual Period.
The Fund was not immune to the overall market weakness experienced across the financial markets during the Annual Period, but performed more defensively within the broader fixed
income markets as measured by the ICE BofA U.S. High Yield Index (H0A0, the “Benchmark”), which declined 14.06%. Given the significant downward price movement in the high yield market over the Annual Period, the impact of duration-based index
rebalancing for the Benchmark has resulted in greater year-to-date performance dispersion relative to the Fund. That having been said, the Fund’s underperformance versus the Benchmark was largely attributable to its negative selection in BB rated
credits and underweight in credits with maturity below 1 year, while on a sector basis, negative selection in Cable & Satellite and Automotives were also detractors, outweighing positive selection in Industrials and Healthcare and having exposure
to CCC rated credits. The Fund’s sector positioning is largely a function of its focus on bottom-up, individual security selection and fundamental analysis and less driven by top-down, sector-driven allocations. The Fund’s top three broader sector
exposures are concentrated in Leisure, Gaming & Travel, Industrials and Healthcare. We believe our Leisure, Gaming & Travel exposure is well diversified, including subsegments that have been more stable such as fast-food franchisors and
regional theme parks as well as those subsegments we believe are better positioned for an ultimate recovery in travel and entertainment such as Hotels & Gaming. The Industrials sector exposure captures a wide range of sub-industries and holdings
that are broadly diversified and include service companies that in our view have attractive business models and competitive positions. The Healthcare sector is historically among the most stable and defensive sector given its consistent/recurring
revenues, solid free cash flow generation and strong asset coverage. Additionally, we have intentionally avoided the Oil & Gas sector given the unfavorable risk/reward for shorter maturities in the
7
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
space and the asymmetric downside volatility associated with the violent and uncontrollable swings in commodity prices. The Fund’s exposure to bank loans was a modest contributor to performance as bank
loan returns outpaced short duration for the Annual Period. The Fund’s bank loan weighting increased during the Annual Period from 2.51% to 5.03%. As of September 30, 2022, the average price of the Fund’s investments at the end of the period was
$94.67 (down from $104.65 a year ago), with a current yield of 6.44%, SEC 30-Day subsidized and unsubsidized yield of 6.68%, yield-to-maturity of 8.20%, and a yield-to-worst of 8.18%. As we believe diversification remains a key factor in helping to
mitigate risk, the portfolio was well-diversified, ending the period with investments in 181 issuers across 15 sectors as of September 30, 2022.
Market Commentary
The broader high yield market, as measured by the H0A0, declined 14.06% during the Annual Period as it traded off in line with many major capital markets with one of the biggest
factors being the historic increase in rates.
The shorter duration tiers of the market outperformed longer duration whereas by ratings category, CCC- rated bonds posted the weakest performance while BB and B-rated bonds were
both down similarly.
The trailing 12 month default rate moved up modestly to 1.57% in September; while at the highest level since June 2021, the rate remains below historic average of 3.2%.
Additionally, new issuance has been sporadic year-to-date 2022 with only $90BN of high yield issuance year to date vs $484BN in 2021. After a major refinancing wave in late 2020 and 2021 and given increased market volatility and higher rates, in our
opinion, it is likely to remain much lower than prior years.
Outlook
Moving forward, we expect volatility to persist in all equity and fixed income markets given the high level of economic and geopolitical unknowns, but we believe low default rates,
modest maturity walls, and attractive pricing could continue to drive more interest in the high yield market. We continue to believe the higher-quality short duration segment of the high yield market remains well positioned as a lower volatility
solution with the ability to seek to capture attractive risk-adjusted returns in the current environment.
Thank you again for your continued support and trust in our strategy. We look forward to growing with you.
8
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
DISCLOSURES
The Shenkman Group of Companies (the “Shenkman Group”) consists of Shenkman Capital Management, Inc., and its affiliates and subsidiaries, including, without limitation, Shenkman Capital Management Ltd,
Romark Credit Advisors LP, and Romark CLO Advisors LLC. The Shenkman Group focuses on the leveraged finance market and is dedicated to providing in-depth, bottom-up, fundamental credit analysis.
Shenkman Capital Management, Inc. (“Shenkman” or “Shenkman Capital”) is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”). Romark Credit Advisors LP is
also registered as an investment adviser with the SEC and Romark CLO Advisors LLC is registered as a relying adviser of Romark Credit Advisors LP (together, “Romark”). Shenkman Capital Management Ltd is a wholly-owned subsidiary of Shenkman Capital
Management, Inc. and is authorized and regulated by the U.K. Financial Conduct Authority. Such registrations do not imply any specific skill or training. EEA Investors: This material is provided to you because you have been classified as a
professional client in accordance with the Markets in Financial Instruments Directive (Directive 2014/65/EU) (known as “MiFID II”) or as otherwise defined under applicable local regulations. If you are unsure about your classification or believe that
you may be a retail client under these rules, please contact the Shenkman Group and disregard this information.
Any third-party information contained herein was obtained from sources that Shenkman considers to be reliable; however, no representation is made as to, and Shenkman accepts no responsibility, warranty
or liability for the accuracy or completeness of such information. Past performance does not guarantee future results.
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
Mutual fund investing involves risk. Principal loss is possible. There can be no assurance that the Fund will achieve its stated objective. In addition to the normal risks associated
with investing, bonds and bank loans, and the funds that invest in them are subject to interest rate risk and can be expected to decline in value as interest rates rise. Investment by the Fund in lower-rated and non-rated securities presents a
greater risk of loss to principal and interest than higher-rated securities. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. Derivatives may
involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Leverage may cause the effect of an increase or decrease in the value of the
portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
The ICE BofA U.S. High Yield Index (H0A0) has an inception date of August 31, 1986 and tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S.
domestic market.
9
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
The ICE BofA 0-2 Year Duration BB-B U.S. HY Constrained Index (H42C) (without transaction costs) consists of all securities in the ICE BofA BB-B U.S. High Yield Index (HUC4) that have a
duration-to-worst of 2 years or less. The ICE BofA U.S. High Yield, BB-B Rated, Constrained Index (HUC4) has an inception date of December 31, 1996, and is a subset of the ICE BofA U.S. High Yield Index (H0A0) that consists of all securities rated
BB1 through B3, based on an average of Moody’s, S&P and Fitch, but caps issuer exposure at 2%. The ICE BofA 0-3 Year U.S. Treasury Index (G1QA) (without transaction costs) is an unmanaged index that tracks the performance of the direct sovereign
debt of the U.S. Government having a maturity of less than three years.
You cannot invest directly in an index.
Free cash flow (FCF) is the cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets.
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
Duration-to-worst is the duration of a bond computed using either the final maturity date, or a call date within the bond’s call schedule, whichever would result in the lowest yield to the investor.
Yield is defined as the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment’s
cost, its current market value or its face value.
Yield-to-worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting.
Spread-to-worst is the difference between the yield-to-worst of a bond and yield-to-worst of a U.S. Treasury with a similar duration.
Current Yield is the annual income (interest or dividends) divided by the current price of the security. This measure looks at the current price of a bond instead of its face value and represents the
return an investor would expect if he or she purchased the bond and held it for a year. This measure is not an accurate reflection of the actual return that an investor will receive in all cases because bond and stock prices are constantly changing
due to market factors.
Yield-to-Maturity is the rate of return anticipated on a bond if held until the end of its lifetime. YTM is considered a long-term bond yield expressed as an annual rate. The YTM calculation takes into
account the bond’s current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupon payments are reinvested at the same rate as the bond’s current yield. YTM is a complex but accurate calculation of a
bond’s return that helps investors compare bonds with different maturities and coupons.
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please refer to the Schedule of Investments for a
complete list of fund holdings.
Must be preceded or accompanied by a prospectus.
10
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SHAREHOLDER LETTER – Continued
September 30, 2022
The credit rating is a financial indicator to potential investors of debt securities such as bonds. These are assigned by credit rating agencies such as Moody’s and Standard & Poor’s to have letter
designations (such as AAA, B, CC) which represent the quality of a bond. Moody’s assigns bond credit ratings of Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, with WR and NR as withdrawn and not rated. Standard & Poor’s assigns bond credit ratings of AAA,
AA, A, BBB, BB, B, CCC, CC, C, D.
Any information in these materials from ICE Data Indices, LLC (“ICE BofA”) was used with permission. ICE BofA PERMITS USE OF THE ICE BofA INDICES AND RELATED DATA ON AN “AS IS” BASIS, MAKES NO
WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BofA INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF
THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND THE SHENKMAN GROUP, OR ANY OF ITS PRODUCTS OR SERVICES.
References to indices are for information purposes only. The Shenkman Group believes that any indices discussed herein are broad market indices and are indicative of the type of investments that the
Shenkman Group may purchase, but may contain different securities than those held in the Shenkman Group portfolios managed pursuant to the strategies described herein. The indices have not been selected to represent an appropriate benchmark. The
strategies referred to herein are not designed to mimic the investments on which any index is based. The indices are unmanaged and not available for direct investment and do not reflect deductions for fees or expenses.
* Based on Shenkman’s internal valuations, classifications, and records.
The Shenkman Capital Short Duration High Income Fund is distributed by Quasar Distributors, LLC.
11
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
Comparison of the change in value of a hypothetical $1,000,000 investment
in the Shenkman Capital Floating Rate High Income Fund –
Institutional Class vs the Morningstar LSTA US Leveraged Loan Index
and the Morningstar LSTA US B- Ratings and Above Loan Index
Average Annual Total Return:
|
Since Inception
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||||
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One Year
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Five Year
|
10/15/2014
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3/1/2017
|
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Class F (SFHFX)
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-3.26%
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2.35%
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—
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2.37%
|
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Institutional Class (SFHIX)
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-3.26%
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2.37%
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2.73%
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—
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Morningstar LSTA US Leveraged
|
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Loan Index*
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-2.53%
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2.98%
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3.36%
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3.01%
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Morningstar LSTA US B- Ratings
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and Above Loan Index*
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-2.03%
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2.94%
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3.34%
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2.98%
|
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*
|
On June 1, 2022 Morningstar, Inc. completed its acquisition of Leverage Commentary & Data from S&P Global. As a result of this acquisition, the S&P/LSTA Leveraged Loan Index has been
renamed the Morningstar LSTA US Leveraged Loan Index. Similarly, the S&P/LSTA B- & Above Leveraged Loan Index has been renamed the Morningstar LSTA US B- Ratings and Above Loan Index.
|
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so
that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained
by calling 1-855-743-6562.
SFHFX Expense Ratio – Gross: 0.86%
SFHFX Expense Ratio – Net: 0.64%**
SFHIX Expense Ratio – Gross: 0.76%
SFHIX Expense Ratio – Net: 0.54%**
Expense ratios shown are as of the Fund’s registration statement dated January 28, 2022.
12
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
|
**
|
Shenkman Capital Management, Inc., the Fund’s investment advisor, has contractually agreed to waive a portion or all of its management fees and pay Fund expenses in order to limit total annual
fund operating expenses to the net amount presented through at least January 27, 2023.
|
Returns reflect reinvestment of dividends and capital gains distributions. Fee waivers are in effect. In the absence of fee waivers, returns would be reduced. The performance data and graph do not
reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. Indices do not incur expenses and are not available for investment.
The Morningstar® LSTA US Leveraged Loan Index is a market-value weighted index designed to measure the performance of the
US leveraged loan market.
The Morningstar® LSTA US B- Ratings and Above Loan Index tracks the current outstanding balance and spread over LIBOR for
fully funded institutional term loans that are rated B- or above and syndicated to U.S. loan investors. The Morningstar® LSTA US B- Ratings and Above Loan Index is
unmanaged, not available for direct investment and does not reflect deductions for fees or expenses.
13
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
Comparison of the change in value of a hypothetical $1,000,000 investment
in the Shenkman Capital Short Duration High Income Fund –
Institutional Class vs the ICE BofA 0-3 U.S. Treasury Index and
the ICE BofA 0-2 Year Duration BB-B U.S. High Yield Constrained Index
Average Annual Total Return:
|
Since Inception
|
|||||
|
One Year
|
Five Year
|
10/31/2012
|
5/17/2013
|
1/28/2014
|
|
|
Class A (SCFAX)
|
|||||
|
(with sales load)
|
-7.82%
|
0.93%
|
1.99%
|
—
|
—
|
|
Class A (SCFAX)
|
|||||
|
(without sales load)
|
-4.99%
|
1.54%
|
2.31%
|
—
|
—
|
|
Class C (SCFCX) (with
|
|||||
|
deferred sales load)
|
-6.63%
|
0.79%
|
—
|
—
|
1.21%
|
|
Class C (SCFCX)
|
|||||
|
(without deferred
|
|||||
|
sales load)
|
-5.71%
|
0.79%
|
—
|
—
|
1.21%
|
|
Class F (SCFFX)
|
-4.79%
|
1.79%
|
—
|
2.36%
|
—
|
|
Institutional
|
|||||
|
Class (SCFIX)
|
-4.62%
|
1.88%
|
2.64%
|
—
|
—
|
|
ICE BofA 0-3 Year
|
|||||
|
U.S. Treasury Index
|
|||||
|
(without transaction
|
|||||
|
costs)
|
-3.39%
|
0.76%
|
0.66%
|
0.67%
|
0.70%
|
|
ICE BofA 0-2 Year
|
|||||
|
Duration BB-B
|
|||||
|
U.S. High Yield
|
|||||
|
Constrained Index
|
|||||
|
(without transaction
|
|||||
|
costs)
|
-3.22%
|
2.03%
|
3.12%
|
2.87%
|
2.76%
|
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so
that an investor’s shares, when redeemed, may be
14
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month
end may be obtained by calling 1-855-743-6562.
SCFAX Expense Ratio – Gross: 1.02%
SCFAX Expense Ratio – Net: 1.00%*
SCFCX Expense Ratio – Gross: 1.77%
SCFCX Expense Ratio – Net: 1.75%*
SCFFX Expense Ratio – Gross: 0.77%
SCFFX Expense Ratio – Net: 0.75%*
SCFIX Expense Ratio – Gross: 0.67%
SCFIX Expense Ratio – Net: 0.65%*
Expense ratios shown are as of the Fund’s registration statement dated January 28, 2022.
|
*
|
Shenkman Capital Management, Inc., the Fund’s investment advisor, has contractually agreed to waive a portion or all of its management fees and pay Fund expenses in order to limit total annual
fund operating expenses to the net amount presented through at least January 27, 2023.
|
Returns reflect reinvestment of dividends and capital gains distributions. Fee waivers are in effect. In the absence of fee waivers, returns would be reduced. Class A shares may be subject to a 3.00%
front-end sales load. Class A shares do not have a contingent deferred sales charge (“CDSC”) except that a charge of 1% applies to certain redemptions made within thirty calendar days. Class C shares may be subject to a CDSC of 1.00% on redemptions
held for eighteen months or less after purchase. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. Indices do not incur expenses
and are not available for investment.
The ICE BofA 0-3 Year U.S. Treasury Index (G1QA) tracks the performance of US dollar denominated sovereign debt publicly issued by the U.S. government in its domestic market with maturities less than
three years.
The ICE BofA 0-2 Year Duration BB-B U.S. HY Constrained Index (H42C) consists of all securities in the ICE BofA BB-B U.S. High Yield Index (HUC4) that have a duration-to-worst of 2 years or less. The
HUC4 index is a subset of the ICE BofA U.S. High Yield Index (H0A0) that includes all securities in the H0A0 rated BB1 through B3, inclusive. The HUC4 index is unmanaged, not available for direct investment and does not reflect deductions for fees or
expenses.
Information used herein from ICE Data Indices, LLC (“ICE BofA”) was used with permission. ICE BofA PERMITS USE OF THE ICE BofA INDICES AND RELATED DATA ON AN “AS IS” BASIS, MAKES NO SUITABILITY,
QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BofA INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND
SHENKMAN CAPITAL MANAGEMENT, INC., OR ANY OF ITS PRODUCTS OR SERVICES.
15
SHENKMAN CAPITAL FUNDS
EXPENSE EXAMPLE
September 30, 2022 (Unaudited)
As a shareholder of a fund, you incur two types of costs: (1) transaction costs including sales charges (loads), if applicable; redemption fees, if applicable; and exchange fees;
and (2) ongoing costs, including management fees; distribution and/or service (12b-1 fees); and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs
with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period indicated and held for the entire period from April 1, 2022 to September 30, 2022.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns together
with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the row
entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts (generally, a $15 fee is
charged to the account annually) that would increase the amount of expenses paid on your account. The example below does not include portfolio trading commissions and related expenses, and other extraordinary expenses as determined under generally
accepted accounting principles.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on
the respective Fund’s actual expense ratio and assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder
reports of the other funds. As noted above, there are some account fees that are charged to certain types of accounts that would increase the amount of expense paid on your account.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption
fees, or exchange fees. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only and will not help you determine the
16
SHENKMAN CAPITAL FUNDS
EXPENSE EXAMPLE – Continued
September 30, 2022 (Unaudited)
relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
Beginning
|
Ending
|
Expenses Paid
|
|
|
Account Value
|
Account Value
|
During Period(1)
|
|
|
Shenkman Capital Floating Rate High Income Fund
|
|||
|
Actual
|
|||
|
Class F
|
$1,000.00
|
$ 967.10
|
$2.61
|
|
Institutional Class
|
$1,000.00
|
$ 966.00
|
$2.66
|
|
Hypothetical (5% return
|
|||
|
before expenses)
|
|||
|
Class F
|
$1,000.00
|
$1,022.41
|
$2.69
|
|
Institutional Class
|
$1,000.00
|
$1,022.36
|
$2.74
|
|
(1)
|
Shenkman Capital Floating Rate High Income Fund – Class F and Institutional Class expenses are equal to the Fund shares’ annualized expense ratio of 0.53% and 0.54%, respectively, multiplied by
the average account value over the period, multiplied by 183 days/365 days (to reflect the six-month period of operation). The Fund’s ending account values in the table are based on its six-month total return of -3.29% for Class F and -3.40%
for the Institutional Class as of September 30, 2022.
|
|
Beginning
|
Ending
|
Expenses Paid
|
|
|
Account Value
|
Account Value
|
During Period(2)
|
|
|
Shenkman Capital Short Duration High Income Fund
|
|||
|
Actual
|
|||
|
Class A
|
$1,000.00
|
$ 957.00
|
$4.61
|
|
Class C
|
$1,000.00
|
$ 953.20
|
$8.23
|
|
Class F
|
$1,000.00
|
$ 958.90
|
$3.58
|
|
Institutional Class
|
$1,000.00
|
$ 959.30
|
$3.19
|
|
Hypothetical (5% return
|
|||
|
before expenses)
|
|||
|
Class A
|
$1,000.00
|
$1,020.36
|
$4.76
|
|
Class C
|
$1,000.00
|
$1,016.65
|
$8.49
|
|
Class F
|
$1,000.00
|
$1,021.41
|
$3.70
|
|
Institutional Class
|
$1,000.00
|
$1,021.81
|
$3.29
|
|
(2)
|
Shenkman Capital Short Duration High Income Fund – Class A, Class C, Class F, and Institutional Class expenses are equal to the Fund shares’ annualized expense ratio of 0.94%, 1.68%, 0.73% and
0.65%, respectively, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the six-month period of operation). The Fund’s ending account values in the table are based on its six-month total
return of -4.30% for Class A,-4.68% for Class C, -4.11% for Class F, and -4.07% for the Institutional Class as of September 30, 2022.
|
17
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
PORTFOLIO ALLOCATION
September 30, 2022 (Unaudited)
|
% Net
|
|
|
TOP TEN HOLDINGS
|
Assets
|
|
Lumen Technologies, Inc., Senior Secured First Lien Term
|
|
|
Loan 5.365% (1 Month LIBOR USD + 2.25%), 03/15/2027
|
1.09%
|
|
Optiv Security, Inc., Senior Secured First Lien Term Loan
|
|
|
7.42% (6 Month LIBOR USD + 3.25%, 1.000% Floor), 02/01/2024
|
1.01%
|
|
Stars Group Holdings B.V., Senior Secured First Lien Term
|
|
|
Loan 5.892% (3 Month LIBOR USD + 2.25%), 07/21/2026
|
1.01%
|
|
Asurion, LLC, Senior Secured First Lien Term Loan
|
|
|
6.365% (1 Month LIBOR USD + 3.25%), 12/23/2026
|
0.96%
|
|
Hyland Software, Inc., Senior Secured First Lien Term Loan 6.615%
|
|
|
(1 Month LIBOR USD + 3.50%, 0.750% Floor), 07/01/2024
|
0.90%
|
|
Almonde, Inc., Senior Secured First Lien Term Loan 6.871%
|
|
|
(6 Month LIBOR USD + 3.50%, 1.000% Floor), 06/13/2024
|
0.87%
|
|
Connect U.S. Finco, LLC, Senior Secured First Lien Term Loan
|
|
|
6.03% (1 Month LIBOR USD + 3.50%, 1.000% Floor), 12/11/2026
|
0.83%
|
|
Playtika Holding Corp., Senior Secured First Lien Term Loan
|
|
|
5.865% (1 Month LIBOR USD + 2.75%), 03/13/2028
|
0.77%
|
|
Project Alpha Intermediate Holding, Inc., Senior Secured First Lien
|
|
|
Term Loan 7.12% (1 Month LIBOR USD + 4.00%), 04/26/2024
|
0.75%
|
|
Peraton Corp., Senior Secured First Lien Term Loan 6.865%
|
|
|
(1 Month LIBOR USD + 3.75%, 0.750% Floor), 02/01/2028
|
0.74%
|
The portfolio's holdings and allocations are subject to change. The top ten holdings presented exclude the money market fund. The percentages are of total net assets as of September 30, 2022.
18
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68%
|
||||||||
|
Aerospace & Defense – 1.09%
|
||||||||
|
Brown Group Holding, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.784% (1 Month SOFR USD + 3.75%,
|
||||||||
|
0.500% Floor), 07/02/2029 (a)
|
$
|
537,000
|
$
|
522,007
|
||||
|
Peraton Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 02/01/2028 (a)
|
2,343,248
|
2,226,964
|
||||||
|
Transdigm, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.924% (3 Month LIBOR USD + 2.25%),
|
||||||||
|
08/22/2024 (a)
|
525,061
|
513,171
|
||||||
|
3,262,142
|
||||||||
|
Auto Retail – 0.56%
|
||||||||
|
CWGS Group, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.318% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.750% Floor), 06/05/2028 (a)
|
685,638
|
607,075
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.750% Floor), 06/05/2028 (a)
|
59,299
|
52,504
|
||||||
|
Mavis Tire Express Services Topco Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.25% (1 Month SOFR USD + 4.00%,
|
||||||||
|
0.750% Floor), 05/04/2028 (a)
|
1,070,465
|
1,007,580
|
||||||
|
1,667,159
|
||||||||
|
Automotive – 0.51%
|
||||||||
|
LS Group Opco Acquisition, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.58% (6 Month LIBOR USD + 3.25%,
|
||||||||
|
0.750% Floor), 11/02/2027 (a)
|
1,002,150
|
962,064
|
||||||
|
LTI Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
09/08/2025 (a)
|
604,800
|
561,254
|
||||||
|
1,523,318
|
||||||||
The accompanying notes are an integral part of these financial statements.
19
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Building Products – 1.97%
|
||||||||
|
Cornerstone Building Brands, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.068% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 04/12/2028 (a)
|
$
|
754,230
|
$
|
623,891
|
||||
|
CPG International, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.092% (6 Month SOFR USD + 2.50%,
|
||||||||
|
0.500% Floor), 04/30/2029 (a)
|
1,259,000
|
1,221,231
|
||||||
|
Griffon Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.49% (3 Month SOFR USD + 2.50%,
|
||||||||
|
0.500% Floor), 01/24/2029 (a)
|
410,277
|
395,404
|
||||||
|
QUIKRETE Holdings, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.74% (1 Month LIBOR USD + 2.625%),
|
||||||||
|
02/01/2027 (a)
|
1,388,110
|
1,336,153
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
06/11/2028 (a)
|
1,139,275
|
1,099,007
|
||||||
|
TAMKO Building Products, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.806% (3 Month LIBOR USD + 3.00%),
|
||||||||
|
05/29/2026 (a)
|
338,171
|
320,698
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.07% (3 Month LIBOR USD + 3.00%),
|
||||||||
|
05/29/2026 (a)
|
166,287
|
157,695
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.674% (3 Month LIBOR USD + 3.00%),
|
||||||||
|
05/29/2026 (a)
|
157,149
|
149,029
|
||||||
|
VC GB Holdings I Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.377% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 07/21/2028 (a)
|
658,028
|
578,245
|
||||||
|
5,881,353
|
||||||||
The accompanying notes are an integral part of these financial statements.
20
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Chemicals – 3.41%
|
||||||||
|
Colouroz Midco
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.009% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 09/21/2023 (a)
|
$
|
49
|
$
|
40
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.009% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 09/21/2023 (a)
|
297
|
243
|
||||||
|
Discovery Purchaser Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.668% (3 Month SOFR USD + 4.375%,
|
||||||||
|
0.500% Floor), 10/04/2029 (a)
|
632,000
|
580,454
|
||||||
|
HB Fuller Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.014% (1 Month LIBOR USD + 2.00%),
|
||||||||
|
10/21/2024 (a)
|
190,359
|
190,260
|
||||||
|
Ineos U.S. Finance, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 11/06/2028 (a)
|
716,400
|
675,504
|
||||||
|
LSF11 A5 Holdco, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.649% (1 Month SOFR USD + 3.50%,
|
||||||||
|
0.500% Floor), 10/16/2028 (a)
|
457,704
|
426,523
|
||||||
|
LSF11 Skyscraper Holdco S.A.R.L.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.174% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.750% Floor), 09/29/2027 (a)
|
1,513,376
|
1,445,274
|
||||||
|
Lummus Technology Holdings V, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
06/30/2027 (a)
|
979,148
|
890,413
|
||||||
|
Olympus Water U.S. Holding Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.438% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 11/09/2028 (a)
|
481,127
|
440,383
|
||||||
The accompanying notes are an integral part of these financial statements.
21
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Chemicals – 3.41% – Continued
|
||||||||
|
Orion Engineered Carbons GmbH,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.924% (3 Month LIBOR USD + 2.25%,
|
||||||||
|
0.500% Floor), 09/22/2028 (a)
|
$
|
285,120
|
$
|
276,210
|
||||
|
PMHC II, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.977% (3 Month SOFR USD + 4.25%,
|
||||||||
|
0.500% Floor), 04/23/2029 (a)
|
1,828,881
|
1,484,256
|
||||||
|
Polar U.S. Borrower, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.205% (3 Month LIBOR USD + 4.75%),
|
||||||||
|
10/15/2025 (a)
|
759,286
|
620,086
|
||||||
|
PQ Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.306% (3 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 06/09/2028 (a)
|
354,513
|
338,737
|
||||||
|
PQ Performance Chemicals,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.803% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.750% Floor), 08/02/2028 (a)
|
525,033
|
499,931
|
||||||
|
SCIH Salt Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.806% (6 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 03/16/2027 (a)
|
814,981
|
758,951
|
||||||
|
Spectrum Holdings III Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
1.000% Floor), 01/31/2025 (a)
|
708,276
|
652,754
|
||||||
|
Tronox Finance, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
03/10/2028 (a)
|
70,154
|
66,839
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.924% (3 Month LIBOR USD + 2.25%),
|
||||||||
|
03/10/2028 (a)
|
346,154
|
329,798
|
||||||
The accompanying notes are an integral part of these financial statements.
22
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Chemicals – 3.41% – Continued
|
||||||||
|
W.R. Grace Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.438% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 09/22/2028 (a)
|
$
|
564,733
|
$
|
530,143
|
||||
|
10,206,799
|
||||||||
|
Commercial Services – 5.82%
|
||||||||
|
AlixPartners, LLP,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 02/04/2028 (a)
|
649,495
|
625,428
|
||||||
|
Allied Universal Holdco, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.784% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 05/12/2028 (a)
|
2,022,294
|
1,783,411
|
||||||
|
American Auto Auction Group, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.553% (3 Month SOFR USD + 5.00%,
|
||||||||
|
0.750% Floor), 12/30/2027 (a)
|
886,303
|
824,261
|
||||||
|
Apex Group Treasury, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.557% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 07/27/2028 (a)
|
1,253,480
|
1,197,073
|
||||||
|
Camelot U.S. Acquisition 1 Co.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
10/30/2026 (a)
|
783,575
|
760,216
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
1.000% Floor), 10/30/2026 (a)
|
2,189,484
|
2,121,971
|
||||||
|
Corelogic, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.625% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 06/02/2028 (a)
|
1,221,766
|
925,488
|
||||||
|
Deerfield Dakota Holding, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.784% (1 Month SOFR USD + 3.75%,
|
||||||||
|
1.000% Floor), 04/09/2027 (a)
|
1,587,974
|
1,501,961
|
||||||
The accompanying notes are an integral part of these financial statements.
23
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Commercial Services – 5.82% – Continued
|
||||||||
|
Dun & Bradstreet Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.33% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
02/06/2026 (a)
|
$
|
1,785,217
|
$
|
1,730,098
|
||||
|
EAB Global, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.306% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 08/16/2028 (a)
|
497,659
|
467,534
|
||||||
|
Galaxy U.S. Opco, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.784% (1 Month SOFR USD + 4.75%,
|
||||||||
|
0.500% Floor), 04/30/2029 (a)
|
357,000
|
336,473
|
||||||
|
Garda World Security Corp.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.24% (1 Month LIBOR USD + 4.25%),
|
||||||||
|
10/30/2026 (a)
|
575,876
|
543,394
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.05% (1 Month SOFR USD + 4.25%),
|
||||||||
|
02/01/2029 (a)
|
500,000
|
467,083
|
||||||
|
GI Consilio Parent, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%,
|
||||||||
|
0.500% Floor), 05/12/2028 (a)
|
296,234
|
275,497
|
||||||
|
Indy U.S. BIDCO, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%),
|
||||||||
|
03/06/2028 (a)
|
839,263
|
757,082
|
||||||
|
INEOS U.S. Petrochem, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 01/29/2026 (a)
|
493,750
|
461,864
|
||||||
|
Pre-Paid Legal Services, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.82% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 12/15/2028 (a)
|
709,435
|
675,517
|
||||||
The accompanying notes are an integral part of these financial statements.
24
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Commercial Services – 5.82% – Continued
|
||||||||
|
Spin Holdco, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.144% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 03/06/2028 (a)
|
$
|
338,278
|
$
|
298,108
|
||||
|
Tempo Acquisition, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
05/01/2024 (a)
|
189,802
|
188,694
|
||||||
|
Trans Union, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%,
|
||||||||
|
0.500% Floor), 12/01/2028 (a)
|
1,521,782
|
1,477,087
|
||||||
|
17,418,240
|
||||||||
|
Construction & Engineering – 1.91%
|
||||||||
|
Amentum Government Services Holdings, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.674% (3 Month LIBOR USD + 4.00%),
|
||||||||
|
02/01/2027 (a)
|
702,385
|
673,121
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.17% (6 Month LIBOR USD + 4.00%),
|
||||||||
|
02/01/2027 (a)
|
233,083
|
223,371
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.206% (3 Month SOFR USD + 4.00%,
|
||||||||
|
0.500% Floor), 02/15/2029 (a)
|
321,441
|
307,780
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.558% (6 Month SOFR USD + 4.00%,
|
||||||||
|
0.500% Floor), 02/15/2029 (a)
|
361,847
|
346,468
|
||||||
|
American Residential Services, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.174% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.750% Floor), 10/15/2027 (a)
|
667,118
|
640,433
|
||||||
|
Api Group DE, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
10/01/2026 (a)
|
556,066
|
543,416
|
||||||
The accompanying notes are an integral part of these financial statements.
25
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Construction & Engineering – 1.91% – Continued
|
||||||||
|
Api Group DE, Inc. – Continued
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
01/03/2029 (a)
|
$
|
548,606
|
$
|
535,461
|
||||
|
Brand Industrial Services, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.50% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 06/21/2024 (a)
|
1,136
|
994
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.598% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 06/21/2024 (a)
|
85,172
|
74,515
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.033% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 06/21/2024 (a)
|
344,145
|
301,086
|
||||||
|
Centuri Group, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.57% (3 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 08/28/2028 (a)
|
671,192
|
650,113
|
||||||
|
Tecta America Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.365% (1 Month LIBOR USD + 4.25%,
|
||||||||
|
0.750% Floor), 04/06/2028 (a)
|
914,862
|
873,121
|
||||||
|
Tiger Acquisition, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 06/01/2028 (a)
|
589,050
|
547,678
|
||||||
|
5,717,557
|
||||||||
|
Consumer Discretionary – 1.47%
|
||||||||
|
Champ Acquisition Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
9.174% (3 Month LIBOR USD + 5.50%),
|
||||||||
|
12/19/2025 (a)
|
170,489
|
165,978
|
||||||
|
Houghton Mifflin Harcourt Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.384% (1 Month SOFR USD + 5.25%,
|
||||||||
|
0.500% Floor), 04/09/2029 (a)
|
1,225,000
|
1,119,345
|
||||||
The accompanying notes are an integral part of these financial statements.
26
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Consumer Discretionary – 1.47% – Continued
|
||||||||
|
Learning Care Group (U.S.) No. 2, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.019% (6 Month LIBOR USD + 3.25%,
|
||||||||
|
1.000% Floor), 03/13/2025 (a)
|
$
|
345,545
|
$
|
327,749
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.056% (3 Month LIBOR USD + 3.25%,
|
||||||||
|
1.000% Floor), 03/13/2025 (a)
|
86,386
|
81,937
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.924% (3 Month LIBOR USD + 3.25%,
|
||||||||
|
1.000% Floor), 03/13/2025 (a)
|
21,812
|
20,689
|
||||||
|
Prometric Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
1.000% Floor), 01/29/2025 (a)
|
956,258
|
885,734
|
||||||
|
Renaissance Holding Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.095% (1 Month SOFR USD + 4.50%,
|
||||||||
|
0.500% Floor), 03/30/2029 (a)
|
736,392
|
708,162
|
||||||
|
Tory Burch, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
0.500% Floor), 04/14/2028 (a)
|
370,313
|
340,225
|
||||||
|
Wand NewCo 3, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
02/05/2026 (a)
|
630,494
|
586,674
|
||||||
|
WW International, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.62% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 04/13/2028 (a)
|
233,415
|
165,726
|
||||||
|
4,402,219
|
||||||||
|
Consumer Non-Discretionary – 0.24%
|
||||||||
|
Kronos Acquisition Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.82% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 12/22/2026 (a)
|
771,263
|
717,490
|
||||||
The accompanying notes are an integral part of these financial statements.
27
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Environmental Services – 1.31%
|
||||||||
|
Belfor Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%),
|
||||||||
|
04/06/2026 (a)
|
$
|
499,038
|
$
|
491,552
|
||||
|
Brightview Landscapes, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.284% (1 Month SOFR USD + 3.25%,
|
||||||||
|
0.500% Floor), 04/20/2029 (a)
|
757,103
|
730,604
|
||||||
|
Covanta Holding Corp.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 11/30/2028 (a)
|
614,640
|
597,574
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 11/30/2028 (a)
|
46,272
|
44,987
|
||||||
|
Strategic Materials Holdings Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.532% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
1.000% Floor), 11/01/2024 (a)
|
904,875
|
681,769
|
||||||
|
WIN Waste Innovations Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.424% (3 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 03/24/2028 (a)
|
1,436,813
|
1,376,646
|
||||||
|
3,923,132
|
||||||||
|
Financials – Diversified – 1.57%
|
||||||||
|
Blackstone Mortgage Trust, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
04/23/2026 (a)
|
567,450
|
539,787
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.534% (1 Month SOFR USD + 3.50%,
|
||||||||
|
0.500% Floor), 05/09/2029 (a)
|
768,075
|
737,352
|
||||||
|
Corporation Service Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
3.25%, 12/31/2029 (a)(g)
|
600,000
|
586,500
|
||||||
The accompanying notes are an integral part of these financial statements.
28
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Financials – Diversified – 1.57% – Continued
|
||||||||
|
Focus Financial Partners, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.115% (1 Month LIBOR USD + 2.00%),
|
||||||||
|
07/03/2024 (a)
|
$
|
605,993
|
$
|
592,273
|
||||
|
Option Care Health, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 10/27/2028 (a)
|
770,180
|
754,776
|
||||||
|
Starwood Property Mortgage, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
07/27/2026 (a)
|
460,750
|
446,928
|
||||||
|
VFH Parent, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.118% (1 Month SOFR USD + 3.00%,
|
||||||||
|
0.500% Floor), 01/12/2029 (a)
|
1,075,000
|
1,033,010
|
||||||
|
4,690,626
|
||||||||
|
Financials – Insurance – 2.92%
|
||||||||
|
Acrisure, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
02/16/2027 (a)
|
638,023
|
585,119
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.365% (1 Month LIBOR USD + 4.25%,
|
||||||||
|
0.500% Floor), 02/16/2027 (a)
|
263,013
|
247,889
|
||||||
|
AssuredPartners, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
02/12/2027 (a)
|
638,558
|
605,832
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 02/12/2027 (a)
|
360,438
|
342,079
|
||||||
|
Asurion, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
12/23/2026 (a)
|
3,373,893
|
2,869,935
|
||||||
The accompanying notes are an integral part of these financial statements.
29
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Financials – Insurance – 2.92% – Continued
|
||||||||
|
Asurion, LLC – Continued
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
07/30/2027 (a)
|
$
|
1,543,414
|
$
|
1,306,499
|
||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
8.365% (1 Month LIBOR USD + 5.25%),
|
||||||||
|
01/31/2028 (a)
|
340,000
|
257,975
|
||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
8.365% (1 Month LIBOR USD + 5.25%),
|
||||||||
|
01/19/2029 (a)
|
820,000
|
631,400
|
||||||
|
HUB International, Ltd.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.982% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.750% Floor), 04/25/2025 (a)
|
1,967,184
|
1,898,706
|
||||||
|
8,745,434
|
||||||||
|
Food & Beverage – 1.33%
|
||||||||
|
Froneri U.S., Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
01/29/2027 (a)
|
635,375
|
601,303
|
||||||
|
H-Food Holdings, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.211% (1 Month LIBOR USD + 3.6875%),
|
||||||||
|
05/23/2025 (a)
|
871,325
|
687,040
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.524% (1 Month LIBOR USD + 4.00%),
|
||||||||
|
05/23/2025 (a)
|
120,313
|
96,952
|
||||||
|
Pegasus Bidco B.V.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.962% (3 Month SOFR USD + 4.25%,
|
||||||||
|
0.500% Floor), 07/12/2029 (a)
|
991,000
|
949,705
|
||||||
|
Triton Water Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.174% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 03/31/2028 (a)
|
1,819,250
|
1,641,618
|
||||||
|
3,976,618
|
||||||||
The accompanying notes are an integral part of these financial statements.
30
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Healthcare – Equipment & Supplies – 4.47%
|
||||||||
|
athenahealth Group, Inc.
|
||||||||
|
Senior Secured First Lien
|
||||||||
|
Delayed-Draw Term Loan
|
||||||||
|
4.50%, 02/15/2029 (a)(g)(i)
|
$
|
275,217
|
$
|
247,283
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.576% (1 Month SOFR USD + 3.50%,
|
||||||||
|
0.500% Floor), 02/15/2029 (a)
|
1,619,723
|
1,455,321
|
||||||
|
Aveanna Healthcare, LLC
|
||||||||
|
Senior Secured First Lien
|
||||||||
|
Delayed-Draw Term Loan
|
||||||||
|
6.802% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 07/17/2028 (a)(i)
|
121,222
|
97,963
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.802% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 07/17/2028 (a)
|
516,104
|
417,077
|
||||||
|
Azalea TopCo, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.305%, 07/24/2026 (a)(g)
|
154,612
|
141,276
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
07/24/2026 (a)
|
221,000
|
201,663
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 07/24/2026 (a)
|
109,968
|
100,689
|
||||||
|
Bausch & Lomb Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.098% (1 Month SOFR USD + 3.25%,
|
||||||||
|
0.500% Floor), 05/10/2027 (a)
|
759,098
|
707,623
|
||||||
|
Change Healthcare Holdings, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.274% (Prime Rate + 1.75%,
|
||||||||
|
1.000% Floor), 03/01/2024 (a)
|
215,388
|
214,999
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.024% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
1.000% Floor), 03/01/2024 (a)
|
1,344,212
|
1,341,786
|
||||||
The accompanying notes are an integral part of these financial statements.
31
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Healthcare – Equipment & Supplies – 4.47% – Continued
|
||||||||
|
CHG Healthcare Services, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 09/29/2028 (a)
|
$
|
1,023,660
|
$
|
985,590
|
||||
|
Cvet Midco 2, LP,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.784% (3 Month SOFR USD + 5.00%,
|
||||||||
|
0.500% Floor), 10/15/2029 (a)
|
235,000
|
220,117
|
||||||
|
Embecta Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.553% (3 Month SOFR USD + 3.00%,
|
||||||||
|
0.500% Floor), 03/30/2029 (a)
|
409,334
|
398,589
|
||||||
|
Greatbatch, Ltd.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 09/02/2028 (a)
|
742,500
|
729,692
|
||||||
|
Greenway Health, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.87% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
1.000% Floor), 02/16/2024 (a)
|
615,875
|
548,640
|
||||||
|
Insulet Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 05/04/2028 (a)
|
770,250
|
752,600
|
||||||
|
Medline Borrower, LP,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 10/23/2028 (a)
|
1,756,175
|
1,618,148
|
||||||
|
Milano Acquisition Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.674% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 10/01/2027 (a)
|
929,829
|
888,452
|
||||||
|
MPH Acquisition Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.32% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
0.500% Floor), 09/01/2028 (a)
|
853,380
|
791,113
|
||||||
The accompanying notes are an integral part of these financial statements.
32
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Healthcare – Equipment & Supplies – 4.47% – Continued
|
||||||||
|
Navicure, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%),
|
||||||||
|
10/22/2026 (a)
|
$
|
1,579,972
|
$
|
1,518,748
|
||||
|
13,377,369
|
||||||||
|
Healthcare – Facilities – 3.06%
|
||||||||
|
ADMI Corp.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.899% (1 Month LIBOR USD + 3.375%,
|
||||||||
|
0.500% Floor), 12/23/2027 (a)
|
643,318
|
569,340
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.274% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 12/23/2027 (a)
|
643,500
|
574,324
|
||||||
|
Electron Bidco, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
0.500% Floor), 11/01/2028 (a)
|
1,399,965
|
1,330,092
|
||||||
|
Global Medical Response, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.365% (1 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 03/14/2025 (a)
|
526,093
|
457,737
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.814% (1 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 10/02/2025 (a)
|
322,666
|
281,365
|
||||||
|
Heartland Dental, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
04/30/2025 (a)
|
804,970
|
744,094
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.084% (1 Month LIBOR USD + 4.00%),
|
||||||||
|
04/30/2025 (a)
|
1,110,938
|
1,032,616
|
||||||
|
Pluto Acquisition I, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.076% (6 Month LIBOR USD + 4.00%),
|
||||||||
|
06/22/2026 (a)
|
1,054,417
|
925,251
|
||||||
The accompanying notes are an integral part of these financial statements.
33
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Healthcare – Facilities – 3.06% – Continued
|
||||||||
|
Premier Dental Services, Inc.
|
||||||||
|
Senior Secured First Lien
|
||||||||
|
Delayed-Draw Term Loan
|
||||||||
|
7.282% (3 Month LIBOR USD + 4.50%,
|
||||||||
|
0.750% Floor), 08/18/2028 (a)
|
$
|
953
|
$
|
861
|
||||
|
Senior Secured First Lien
|
||||||||
|
Delayed-Draw Term Loan
|
||||||||
|
7.306% (3 Month LIBOR USD + 4.50%,
|
||||||||
|
0.750% Floor), 08/18/2028 (a)
|
30,604
|
27,659
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.615% (1 Month LIBOR USD + 4.50%,
|
||||||||
|
0.750% Floor), 08/18/2028 (a)
|
308,907
|
279,174
|
||||||
|
RegionalCare Hospital Partners Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.871% (1 Month LIBOR USD + 3.75%),
|
||||||||
|
11/14/2025 (a)
|
500,000
|
466,160
|
||||||
|
Sotera Health Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 12/11/2026 (a)
|
1,136,000
|
1,005,360
|
||||||
|
U.S. Radiology Specialists, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.924% (3 Month LIBOR USD + 5.25%,
|
||||||||
|
0.500% Floor), 12/15/2027 (a)
|
722,540
|
639,448
|
||||||
|
Vizient, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.368% (1 Month SOFR USD + 2.25%,
|
||||||||
|
0.500% Floor), 04/27/2029 (a)
|
814,958
|
812,839
|
||||||
|
9,146,320
|
||||||||
|
Healthcare – Life Sciences – 2.30%
|
||||||||
|
Avantor Funding, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%,
|
||||||||
|
0.500% Floor), 11/08/2027 (a)
|
1,337,326
|
1,305,357
|
||||||
The accompanying notes are an integral part of these financial statements.
34
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Healthcare – Life Sciences – 2.30% – Continued
|
||||||||
|
Cambrex Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.634% (1 Month SOFR USD + 3.50%,
|
||||||||
|
0.750% Floor), 12/04/2026 (a)
|
$
|
1,523,006
|
$
|
1,463,038
|
||||
|
Curia Global, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.556% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 08/31/2026 (a)
|
1,651,275
|
1,539,120
|
||||||
|
ICON Luxembourg S.A.R.L.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.938% (3 Month LIBOR USD + 2.25%,
|
||||||||
|
0.500% Floor), 07/03/2028 (a)
|
1,082,971
|
1,060,976
|
||||||
|
Phoenix Newco, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.774% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 11/15/2028 (a)
|
1,296,662
|
1,240,342
|
||||||
|
PRA Health Sciences, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.938% (3 Month LIBOR USD + 2.25%,
|
||||||||
|
0.500% Floor), 07/03/2028 (a)
|
269,823
|
264,343
|
||||||
|
6,873,176
|
||||||||
|
Healthcare – Managed Health Care – 0.55%
|
||||||||
|
Bella Holding Co., LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 05/10/2028 (a)
|
456,390
|
427,485
|
||||||
|
Verscend Holding Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%),
|
||||||||
|
08/27/2025 (a)
|
1,262,026
|
1,227,320
|
||||||
|
1,654,805
|
||||||||
|
Healthcare – Pharmaceuticals & Biotechnology – 0.62%
|
||||||||
|
Jazz Pharmaceuticals, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 05/05/2028 (a)
|
605,694
|
586,602
|
||||||
The accompanying notes are an integral part of these financial statements.
35
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Healthcare – Pharmaceuticals & Biotechnology – 0.62% – Continued
|
||||||||
|
Organon & Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.188% (3 Month LIBOR USD + 3.00%,
|
||||||||
|
0.500% Floor), 06/02/2028 (a)
|
$
|
1,288,807
|
$
|
1,263,031
|
||||
|
1,849,633
|
||||||||
|
Healthcare – REITs – 0.25%
|
||||||||
|
AHP Health Partners, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 08/24/2028 (a)
|
789,030
|
754,265
|
||||||
|
Industrial Machinery – 3.75%
|
||||||||
|
AI Aqua Merger Sub, Inc.,,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.345% (1 Month SOFR USD + 3.75%,
|
||||||||
|
0.500% Floor), 07/31/2028 (a)
|
907,725
|
845,605
|
||||||
|
Ali Group North America Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.149% (1 Month SOFR USD + 2.00%),
|
||||||||
|
07/30/2029 (a)
|
608,511
|
588,582
|
||||||
|
ASP Blade Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.674% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.500% Floor), 10/13/2028 (a)
|
997,906
|
879,155
|
||||||
|
AZZ, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.977% (3 Month SOFR USD + 4.25%,
|
||||||||
|
0.500% Floor), 05/11/2029 (a)
|
430,306
|
420,086
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.384% (1 Month SOFR USD + 4.25%,
|
||||||||
|
0.500% Floor), 05/11/2029 (a)
|
155,703
|
152,005
|
||||||
|
Brookfield WEC Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 08/01/2025 (a)
|
1,700,829
|
1,630,474
|
||||||
The accompanying notes are an integral part of these financial statements.
36
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Industrial Machinery – 3.75% – Continued
|
||||||||
|
Clark Equipment Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
3.00% (3 Month SOFR USD + 2.50%,
|
||||||||
|
0.500% Floor), 04/20/2029 (a)
|
$
|
448,745
|
$
|
440,261
|
||||
|
Columbus McKinnon Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.438% (3 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 05/15/2028 (a)
|
414,644
|
406,351
|
||||||
|
Conair Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.00% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 05/17/2028 (a)
|
609,994
|
517,351
|
||||||
|
CPM Holdings, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.064% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
11/17/2025 (a)
|
424,485
|
410,954
|
||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
10.814% (1 Month LIBOR USD + 8.25%),
|
||||||||
|
11/16/2026 (a)
|
219,444
|
210,667
|
||||||
|
Filtration Group Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 10/20/2028 (a)
|
1,585,090
|
1,509,133
|
||||||
|
Madison IAQ, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.815% (3 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 06/21/2028 (a)
|
603,363
|
559,079
|
||||||
|
Penn Engineering & Manufacturing Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.424% (3 Month LIBOR USD + 2.75%,
|
||||||||
|
1.000% Floor), 06/27/2024 (a)
|
585,815
|
569,705
|
||||||
|
Pro Mach Group, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%,
|
||||||||
|
1.000% Floor), 08/31/2028 (a)
|
979,873
|
936,745
|
||||||
The accompanying notes are an integral part of these financial statements.
37
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Industrial Machinery – 3.75% – Continued
|
||||||||
|
TK Elevator Midco GMBH,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.871% (6 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 07/30/2027 (a)
|
$
|
613,783
|
$
|
589,744
|
||||
|
Vertiv Group Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.303% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
03/02/2027 (a)
|
577,439
|
550,886
|
||||||
|
11,216,783
|
||||||||
|
Leisure – Casinos & Gaming – 3.02%
|
||||||||
|
Aristocrat Technologies, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.803% (3 Month SOFR USD + 2.25%,
|
||||||||
|
0.500% Floor), 05/24/2029 (a)
|
224,143
|
222,349
|
||||||
|
Bally’s Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.935% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 10/02/2028 (a)
|
420,937
|
381,327
|
||||||
|
Entain Holdings (Gibraltar), Ltd.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.174% (3 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 03/29/2027 (a)
|
737,663
|
720,143
|
||||||
|
Everi Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 08/03/2028 (a)
|
460,350
|
444,072
|
||||||
|
Fertitta Entertainment, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.034% (1 Month SOFR USD + 4.00%,
|
||||||||
|
0.500% Floor), 01/29/2029 (a)
|
1,057,543
|
984,065
|
||||||
|
Golden Entertainment, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.09% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
0.750% Floor), 10/21/2024 (a)
|
459,929
|
456,307
|
||||||
The accompanying notes are an integral part of these financial statements.
38
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Leisure – Casinos & Gaming – 3.02% – Continued
|
||||||||
|
Penn National Gaming, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.884% (1 Month SOFR USD + 2.75%,
|
||||||||
|
0.500% Floor), 05/03/2029 (a)
|
$
|
1,509,816
|
$
|
1,455,085
|
||||
|
Scientific Games International, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.906% (1 Month SOFR USD + 3.00%,
|
||||||||
|
0.500% Floor), 04/16/2029 (a)
|
865,830
|
843,318
|
||||||
|
Stars Group Holdings B.V.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.892% (3 Month LIBOR USD + 2.25%),
|
||||||||
|
07/21/2026 (a)
|
3,141,144
|
3,028,063
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.781% (3 Month SOFR USD + 3.25%,
|
||||||||
|
0.500% Floor), 07/21/2028 (a)
|
510,000
|
498,683
|
||||||
|
9,033,412
|
||||||||
|
Leisure – Hotels – 1.71%
|
||||||||
|
Alterra Mountain Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 08/17/2028 (a)
|
1,814,053
|
1,763,033
|
||||||
|
Carnival Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.127% (6 Month LIBOR USD + 3.25%,
|
||||||||
|
0.750% Floor), 10/18/2028 (a)
|
487,318
|
430,058
|
||||||
|
Herschend Entertainment Co., LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.88% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 08/28/2028 (a)
|
1,191,717
|
1,167,143
|
||||||
|
Hilton Grand Vacations Borrower, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.524% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
0.500% Floor), 08/02/2028 (a)
|
439,560
|
426,305
|
||||||
|
Lakeland Tours, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.806% (1 Month LIBOR USD + 6.00%,
|
||||||||
|
1.250% Floor), 09/25/2025 (a)
|
237,832
|
198,987
|
||||||
The accompanying notes are an integral part of these financial statements.
39
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Leisure – Hotels – 1.71% – Continued
|
||||||||
|
Lakeland Tours, LLC – Continued
|
||||||||
|
Senior Unsecured First Lien Term Loan
|
||||||||
|
13.25% PIK, 09/27/2027
|
$
|
292,892
|
$
|
196,237
|
||||
|
United PF Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.674% (3 Month LIBOR USD + 4.00%),
|
||||||||
|
12/30/2026 (a)
|
1,041,659
|
923,171
|
||||||
|
5,104,934
|
||||||||
|
Leisure – Restaurants – 1.46%
|
||||||||
|
Dave & Buster’s, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.188% (1 Month SOFR USD + 5.00%,
|
||||||||
|
0.500% Floor), 06/29/2029 (a)
|
547,000
|
534,351
|
||||||
|
IRB Holding Corp.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.274% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
1.000% Floor), 02/05/2025 (a)
|
736,598
|
713,461
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.695% (1 Month SOFR USD + 3.00%,
|
||||||||
|
0.750% Floor), 12/15/2027 (a)
|
1,293,526
|
1,215,106
|
||||||
|
Tacala, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.750% Floor), 02/05/2027 (a)
|
1,135,698
|
1,064,109
|
||||||
|
Whatabrands, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 08/03/2028 (a)
|
904,168
|
839,180
|
||||||
|
4,366,207
|
||||||||
|
Media – Broadcasting – 2.31%
|
||||||||
|
Diamond Sports Group, LLC,
|
||||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
5.945% (1 Month SOFR USD + 3.25%),
|
||||||||
|
08/24/2026 (a)
|
668,573
|
133,474
|
||||||
|
EW Scripps Co.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.678% (1 Month LIBOR USD + 2.5625%,
|
||||||||
|
0.750% Floor), 05/01/2026 (a)
|
867,140
|
840,359
|
||||||
The accompanying notes are an integral part of these financial statements.
40
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Media – Broadcasting – 2.31% – Continued
|
||||||||
|
EW Scripps Co. – Continued
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.750% Floor), 01/07/2028 (a)
|
$
|
993,623
|
$
|
963,372
|
||||
|
Gray Television, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.564% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
12/01/2028 (a)
|
1,731,913
|
1,686,294
|
||||||
|
Hubbard Radio, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.37% (1 Month LIBOR USD + 4.25%,
|
||||||||
|
1.000% Floor), 03/28/2025 (a)
|
492,247
|
432,355
|
||||||
|
Learfield Communications, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.37% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
1.000% Floor), 12/01/2023 (a)
|
733,450
|
607,389
|
||||||
|
Nexstar Broadcasting, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
09/18/2026 (a)
|
771,819
|
763,136
|
||||||
|
Sinclair Television Group, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.62% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
09/30/2026 (a)
|
916,650
|
870,817
|
||||||
|
Univision Communications, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.274% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
1.000% Floor), 03/15/2024 (a)
|
107,264
|
106,561
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.254% (3 Month SOFR USD + 4.25%,
|
||||||||
|
0.500% Floor), 06/25/2029 (a)
|
521,693
|
509,954
|
||||||
|
6,913,711
|
||||||||
|
Media – Cable & Satellite – 4.65%
|
||||||||
|
Connect U.S. Finco, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.03% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
1.000% Floor), 12/11/2026 (a)
|
2,654,536
|
2,478,685
|
||||||
The accompanying notes are an integral part of these financial statements.
41
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Media – Cable & Satellite – 4.65% – Continued
|
||||||||
|
Coral-U.S. Co-Borrower, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.068% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
01/31/2028 (a)
|
$
|
585,000
|
$
|
564,233
|
||||
|
DIRECTV Financing, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.115% (1 Month LIBOR USD + 5.00%,
|
||||||||
|
0.750% Floor), 08/02/2027 (a)
|
1,457,528
|
1,361,426
|
||||||
|
Iridium Satellite, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.750% Floor), 11/04/2026 (a)
|
587,677
|
572,865
|
||||||
|
Maxar Technologies, Ltd.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.384% (1 Month SOFR USD + 4.25%,
|
||||||||
|
0.500% Floor), 06/14/2029 (a)
|
1,363,583
|
1,284,611
|
||||||
|
Radiate Holdco, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.750% Floor), 09/25/2026 (a)
|
968,257
|
898,063
|
||||||
|
Telenet Financing USD, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.818% (1 Month LIBOR USD + 2.00%),
|
||||||||
|
04/28/2028 (a)
|
2,230,000
|
2,121,288
|
||||||
|
Telesat Canada,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.87% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
12/07/2026 (a)
|
1,292,907
|
702,210
|
||||||
|
UPC Financing Partnership,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.068% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
04/28/2028 (a)
|
765,000
|
730,575
|
||||||
|
Virgin Media Bristol, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.318% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
01/31/2028 (a)
|
1,035,000
|
990,293
|
||||||
The accompanying notes are an integral part of these financial statements.
42
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Media – Cable & Satellite – 4.65% – Continued
|
||||||||
|
WideOpenWest Finance, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.489% (3 Month SOFR USD + 3.00%,
|
||||||||
|
0.500% Floor), 12/20/2028 (a)
|
$
|
739,413
|
$
|
721,585
|
||||
|
Xplornet Communications, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%,
|
||||||||
|
0.500% Floor), 10/02/2028 (a)
|
1,670,165
|
1,478,305
|
||||||
|
13,904,139
|
||||||||
|
Media – Diversified – 1.90%
|
||||||||
|
ABG Intermediate Holdings 2, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.750% Floor), 09/27/2024 (a)
|
2,195,379
|
2,148,178
|
||||||
|
Arches Buyer, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 12/06/2027 (a)
|
1,318,169
|
1,190,886
|
||||||
|
Buzz Finco, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
01/29/2027 (a)
|
614,250
|
592,751
|
||||||
|
Dotdash Meredith, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.612% (1 Month SOFR USD + 4.00%,
|
||||||||
|
0.500% Floor), 12/01/2028 (a)
|
531,867
|
477,351
|
||||||
|
Getty Images, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.625% (1 Month LIBOR USD + 4.50%),
|
||||||||
|
02/19/2026 (a)
|
918,503
|
913,580
|
||||||
|
Red Ventures, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
11/08/2024 (a)
|
363,839
|
351,219
|
||||||
|
5,673,965
|
||||||||
The accompanying notes are an integral part of these financial statements.
43
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Media – Entertainment – 3.92%
|
||||||||
|
CDS U.S. Intermediate Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
9.642% (3 Month LIBOR USD + 6.00%,
|
||||||||
|
1.000% Floor), 11/24/2025 (a)
|
$
|
642,873
|
$
|
634,567
|
||||
|
Cirque Du Soleil Holding
|
||||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
3.232% (3 Month LIBOR USD + 1.00%,
|
||||||||
|
1.000% Floor), 11/24/2027 (a)
|
156,102
|
152,444
|
||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
4.642% (3 Month LIBOR USD + 1.00%,
|
||||||||
|
1.000% Floor), 11/24/2027 (a)
|
230,195
|
224,800
|
||||||
|
Creative Artists Agency, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%),
|
||||||||
|
11/26/2026 (a)
|
1,048,514
|
1,035,953
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.284% (1 Month SOFR USD + 4.25%,
|
||||||||
|
1.000% Floor), 11/27/2026 (a)
|
174,563
|
173,035
|
||||||
|
Crown Finance U.S., Inc.
|
||||||||
|
Senior Secured First Lien
|
||||||||
|
Delayed-Draw Term Loan
|
||||||||
|
12.748%, 09/07/2023 (a)(g)(i)
|
56,742
|
57,964
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
12.783% (1 Month SOFR USD + 10.00%),
|
||||||||
|
09/07/2023 (a)
|
675,234
|
689,772
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.00%, 05/23/2024
|
340,965
|
406,388
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.25% (6 Month LIBOR USD + 2.75%,
|
||||||||
|
1.000% Floor), 09/30/2026 (a)(j)
|
1,489,347
|
633,442
|
||||||
|
Delta 2 (Lux) S.A.R.L.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
1.000% Floor), 02/01/2024 (a)
|
925,000
|
916,078
|
||||||
|
Lions Gate Capital Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
03/24/2025 (a)
|
431,091
|
417,080
|
||||||
The accompanying notes are an integral part of these financial statements.
44
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Media – Entertainment – 3.92% – Continued
|
||||||||
|
Nascar Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
10/19/2026 (a)
|
$
|
465,245
|
$
|
458,774
|
||||
|
Playtika Holding Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
03/13/2028 (a)
|
2,391,307
|
2,296,611
|
||||||
|
UFC Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.52% (3 Month LIBOR USD + 2.75%,
|
||||||||
|
0.750% Floor), 04/29/2026 (a)
|
1,372,477
|
1,322,725
|
||||||
|
William Morris Endeavor Entertainment, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.87% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
05/16/2025 (a)
|
1,899,102
|
1,817,203
|
||||||
|
WMG Acquisition Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.24% (1 Month LIBOR USD + 2.125%),
|
||||||||
|
01/20/2028 (a)
|
498,077
|
483,446
|
||||||
|
11,720,282
|
||||||||
|
Metals & Mining – 0.44%
|
||||||||
|
Atkore International, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.25% (6 Month LIBOR USD + 2.00%,
|
||||||||
|
0.500% Floor), 05/26/2028 (a)
|
386,988
|
385,778
|
||||||
|
GrafTech Finance, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
0.500% Floor), 02/12/2025 (a)
|
205,729
|
192,871
|
||||||
|
Grinding Media, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.144% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 10/12/2028 (a)
|
286,565
|
256,476
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.702% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 10/12/2028 (a)
|
180,472
|
161,522
|
||||||
The accompanying notes are an integral part of these financial statements.
45
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Metals & Mining – 0.44% – Continued
|
||||||||
|
Grinding Media, Inc. – Continued
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.702% (6 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 10/12/2028 (a)
|
$
|
360,603
|
$
|
322,740
|
||||
|
1,319,387
|
||||||||
|
Midstream – Storage & Transport – 1.46%
|
||||||||
|
Buckeye Partners, LP,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
11/02/2026 (a)
|
677,716
|
662,044
|
||||||
|
DT Midstream, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.125% (1 Month LIBOR USD + 2.00%,
|
||||||||
|
0.500% Floor), 06/26/2028 (a)
|
229,614
|
230,084
|
||||||
|
ITT Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 07/10/2028 (a)
|
574,200
|
549,797
|
||||||
|
Northriver Midstream Finance, LP,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.527% (3 Month LIBOR USD + 3.25%),
|
||||||||
|
10/01/2025 (a)
|
724,800
|
707,651
|
||||||
|
Oryx Midstream Services Permian Basin, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.211% (3 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 10/05/2028 (a)
|
1,280,298
|
1,244,693
|
||||||
|
TransMontaigne Operating Co., LP
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.493% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 11/17/2028 (a)
|
514,611
|
489,205
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.552% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 11/17/2028 (a)
|
514,612
|
489,205
|
||||||
|
4,372,679
|
||||||||
The accompanying notes are an integral part of these financial statements.
46
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Oil & Gas – Equipment & Services – 0.13%
|
||||||||
|
U.S. Silica Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.125% (1 Month LIBOR USD + 4.00%,
|
||||||||
|
1.000% Floor), 05/01/2025 (a)
|
$
|
400,851
|
$
|
386,320
|
||||
|
Oil & Gas Exploration & Production – 0.20%
|
||||||||
|
Southwestern Energy Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.203% (3 Month SOFR USD + 2.50%,
|
||||||||
|
0.500% Floor), 06/22/2027 (a)
|
594,508
|
587,448
|
||||||
|
Packaging – 2.09%
|
||||||||
|
Clydesdale Acquisition Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.309% (1 Month SOFR USD + 4.175%,
|
||||||||
|
0.500% Floor), 04/13/2029 (a)
|
624,435
|
590,787
|
||||||
|
LABL, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.115% (1 Month LIBOR USD + 5.00%,
|
||||||||
|
0.500% Floor), 10/30/2028 (a)
|
831,715
|
754,524
|
||||||
|
Mauser Packaging Solutions Holding Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.814% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
04/03/2024 (a)
|
1,591,585
|
1,489,135
|
||||||
|
Plastipak Packaging, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.625% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 12/01/2028 (a)
|
494,064
|
479,119
|
||||||
|
Pregis Topco, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.806% (3 Month LIBOR USD + 4.00%),
|
||||||||
|
07/31/2026 (a)
|
530,013
|
506,162
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.806% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.500% Floor), 07/31/2026 (a)
|
544,500
|
518,636
|
||||||
|
RLG Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 07/07/2028 (a)
|
583,590
|
550,518
|
||||||
The accompanying notes are an integral part of these financial statements.
47
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Packaging – 2.09% – Continued
|
||||||||
|
Sabert Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.625% (1 Month LIBOR USD + 4.50%,
|
||||||||
|
1.000% Floor), 12/10/2026 (a)
|
$
|
508,345
|
$
|
488,011
|
||||
|
Trident TPI Holdings, Inc.
|
||||||||
|
Senior Secured First Lien
|
||||||||
|
Delayed-Draw Term Loan
|
||||||||
|
7.674% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.500% Floor), 09/15/2028 (a)(i)
|
114,993
|
109,229
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.674% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.500% Floor), 09/15/2028 (a)
|
807,194
|
766,734
|
||||||
|
6,252,855
|
||||||||
|
Retail – Food & Drug – 0.47%
|
||||||||
|
BJ’s Wholesale Club, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.773% (1 Month LIBOR USD + 2.00%),
|
||||||||
|
02/02/2024 (a)
|
1,007,386
|
1,008,106
|
||||||
|
JP Intermediate B, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.306% (3 Month LIBOR USD + 5.50%,
|
||||||||
|
1.000% Floor), 11/20/2025 (a)
|
526,501
|
400,009
|
||||||
|
1,408,115
|
||||||||
|
Retailing – 1.89%
|
||||||||
|
Autokiniton U.S. Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.185% (1 Month LIBOR USD + 4.50%,
|
||||||||
|
0.500% Floor), 04/06/2028 (a)
|
664,588
|
613,913
|
||||||
|
Belron Finance U.S., LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.375% (3 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 04/13/2028 (a)
|
1,206,948
|
1,175,639
|
||||||
|
Great Outdoors Group, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 03/06/2028 (a)
|
1,152,560
|
1,069,000
|
||||||
The accompanying notes are an integral part of these financial statements.
48
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Retailing – 1.89% – Continued
|
||||||||
|
Harbor Freight Tools U.S.A., Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 10/19/2027 (a)
|
$
|
492,225
|
$
|
447,248
|
||||
|
Hoya Midco, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.284% (1 Month SOFR USD + 3.25%,
|
||||||||
|
0.500% Floor), 01/26/2029 (a)
|
563,078
|
540,555
|
||||||
|
Michaels Cos., Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.924% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
0.750% Floor), 04/14/2028 (a)
|
584,600
|
473,526
|
||||||
|
Pug, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
02/12/2027 (a)
|
914,150
|
799,881
|
||||||
|
Restoration Hardware, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
0.500% Floor), 10/20/2028 (a)
|
499,453
|
443,951
|
||||||
|
Sally Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.37% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
07/05/2024 (a)
|
93,949
|
92,657
|
||||||
|
5,656,370
|
||||||||
|
Technology – Software & Services – 13.30%
|
||||||||
|
Access CIG, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.82% (3 Month LIBOR USD + 3.75%),
|
||||||||
|
02/27/2025 (a)
|
1,906,667
|
1,830,877
|
||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
10.82% (3 Month LIBOR USD + 7.75%),
|
||||||||
|
02/27/2026 (a)
|
616,742
|
588,218
|
||||||
|
Almonde, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.871% (6 Month LIBOR USD + 3.50%,
|
||||||||
|
1.000% Floor), 06/13/2024 (a)
|
2,989,097
|
2,609,481
|
||||||
The accompanying notes are an integral part of these financial statements.
49
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Technology – Software & Services – 13.30% – Continued
|
||||||||
|
Barracuda Parent, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.534% (1 Month SOFR USD + 4.50%,
|
||||||||
|
0.500% Floor), 08/15/2029 (a)
|
$
|
1,040,000
|
$
|
981,500
|
||||
|
Boxer Parent Co., Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%),
|
||||||||
|
10/02/2025 (a)
|
792,489
|
753,170
|
||||||
|
CCC Information Services, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.365% (1 Month LIBOR USD + 1.25%,
|
||||||||
|
0.500% Floor), 09/21/2028 (a)
|
621,305
|
603,700
|
||||||
|
Central Parent, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.61% (3 Month SOFR USD + 4.50%,
|
||||||||
|
0.500% Floor), 07/06/2029 (a)
|
955,000
|
922,229
|
||||||
|
CommerceHub, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 12/29/2027 (a)
|
665,153
|
600,300
|
||||||
|
Connectwise, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.174% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 09/29/2028 (a)
|
1,162,839
|
1,090,162
|
||||||
|
Dawn Acquisition, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.424% (3 Month LIBOR USD + 3.75%),
|
||||||||
|
12/31/2025 (a)
|
485,008
|
359,330
|
||||||
|
DCert Buyer, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.903% (3 Month SOFR USD + 4.00%),
|
||||||||
|
10/16/2026 (a)
|
1,044,834
|
999,702
|
||||||
|
Dynatrace, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
08/22/2025 (a)
|
263,485
|
260,224
|
||||||
The accompanying notes are an integral part of these financial statements.
50
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Technology – Software & Services – 13.30% – Continued
|
||||||||
|
E2Open, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.644% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 02/04/2028 (a)
|
$
|
815,154
|
$
|
782,548
|
||||
|
EagleView Technology Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.174% (3 Month LIBOR USD + 3.50%),
|
||||||||
|
08/14/2025 (a)
|
856,625
|
795,458
|
||||||
|
Ensono, LP,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 05/19/2028 (a)
|
774,818
|
681,840
|
||||||
|
Greeneden U.S. Holdings II, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 12/01/2027 (a)
|
557,787
|
532,636
|
||||||
|
Hyland Software, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.750% Floor), 07/01/2024 (a)
|
2,784,346
|
2,703,432
|
||||||
|
Intrado Corp.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
1.000% Floor), 10/10/2024 (a)
|
227,024
|
193,555
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.115% (1 Month LIBOR USD + 4.00%,
|
||||||||
|
1.000% Floor), 10/10/2024 (a)
|
482,673
|
416,421
|
||||||
|
McAfee Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.362% (1 Month SOFR USD + 3.75%,
|
||||||||
|
0.500% Floor), 03/01/2029 (a)
|
1,891,458
|
1,730,342
|
||||||
|
Mitchell International, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.734% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
0.500% Floor), 10/16/2028 (a)
|
2,004,925
|
1,822,477
|
||||||
The accompanying notes are an integral part of these financial statements.
51
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Technology – Software & Services – 13.30% – Continued
|
||||||||
|
Moneygram International, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.00% (6 Month LIBOR USD + 4.50%,
|
||||||||
|
0.500% Floor), 07/21/2026 (a)
|
$
|
195,603
|
$
|
192,098
|
||||
|
NAB Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.703% (3 Month SOFR USD + 3.00%,
|
||||||||
|
0.500% Floor), 11/24/2028 (a)
|
501,904
|
478,299
|
||||||
|
N-Able International Holdings II, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.07% (3 Month LIBOR USD + 3.00%,
|
||||||||
|
0.500% Floor), 07/19/2028 (a)
|
507,870
|
492,634
|
||||||
|
NortonLifeLock, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.848% (1 Month SOFR USD + 2.00%,
|
||||||||
|
0.500% Floor), 09/12/2029 (a)
|
1,515,000
|
1,459,703
|
||||||
|
Optiv Security, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.42% (6 Month LIBOR USD + 3.25%,
|
||||||||
|
1.000% Floor), 02/01/2024 (a)
|
3,155,142
|
3,028,937
|
||||||
|
Ping Identity Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.884% (1 Month SOFR USD + 3.75%,
|
||||||||
|
0.500% Floor), 11/22/2028 (a)
|
785,933
|
782,985
|
||||||
|
Project Alpha Intermediate Holding, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.12% (1 Month LIBOR USD + 4.00%),
|
||||||||
|
04/26/2024 (a)
|
2,328,089
|
2,247,700
|
||||||
|
Proofpoint, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.32% (3 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 08/31/2028 (a)
|
1,440,118
|
1,355,907
|
||||||
|
RealPage, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.524% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
0.500% Floor), 04/24/2028 (a)
|
1,210,017
|
1,136,744
|
||||||
The accompanying notes are an integral part of these financial statements.
52
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Technology – Software & Services – 13.30% – Continued
|
||||||||
|
Rocket Software, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.365% (1 Month LIBOR USD + 4.25%),
|
||||||||
|
11/28/2025 (a)
|
$
|
331,700
|
$
|
318,044
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.365% (1 Month LIBOR USD + 4.25%,
|
||||||||
|
0.500% Floor), 11/28/2025 (a)
|
217,086
|
208,811
|
||||||
|
SolarWinds Holdings, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.865% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
02/05/2024 (a)
|
645,000
|
634,777
|
||||||
|
SS&C Technologies, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.384% (1 Month SOFR USD + 2.25%,
|
||||||||
|
0.500% Floor), 03/22/2029 (a)
|
610,421
|
595,161
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.384% (1 Month SOFR USD + 2.25%,
|
||||||||
|
0.500% Floor), 03/22/2029 (a)
|
432,300
|
421,493
|
||||||
|
TIBCO Software, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.153% (3 Month SOFR USD + 4.50%,
|
||||||||
|
0.500% Floor), 03/30/2029 (a)
|
450,000
|
404,919
|
||||||
|
TierPoint, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 05/05/2026 (a)
|
434,840
|
413,281
|
||||||
|
UKG, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.535% (3 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 05/04/2026 (a)
|
977,200
|
932,415
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%),
|
||||||||
|
05/04/2026 (a)
|
726,530
|
694,744
|
||||||
|
VM Consolidated, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.127% (6 Month LIBOR USD + 3.25%),
|
||||||||
|
03/24/2028 (a)
|
659,165
|
644,664
|
||||||
The accompanying notes are an integral part of these financial statements.
53
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Technology – Software & Services – 13.30% – Continued
|
||||||||
|
VS Buyer, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
02/26/2027 (a)
|
$
|
457,000
|
$
|
443,861
|
||||
|
WEX, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
03/31/2028 (a)
|
706,245
|
686,989
|
||||||
|
Zelis Cost Management Buyer, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.064% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
09/30/2026 (a)
|
987,437
|
954,111
|
||||||
|
39,785,879
|
||||||||
|
Technology Hardware – 1.27%
|
||||||||
|
EOS U.S. Finco, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
9.612% (3 Month SOFR USD + 6.00%,
|
||||||||
|
0.500% Floor), 08/03/2029 (a)
|
422,266
|
402,736
|
||||||
|
II-VI, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.314% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
0.500% Floor), 06/29/2029 (a)
|
941,000
|
913,556
|
||||||
|
Ingram Micro, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.174% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 06/30/2028 (a)
|
533,250
|
520,585
|
||||||
|
MKS Instruments, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.868% (1 Month SOFR USD + 2.75%,
|
||||||||
|
0.500% Floor), 08/17/2029 (a)
|
1,287,000
|
1,259,329
|
||||||
|
Presidio Holdings, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.31% (3 Month LIBOR USD + 3.50%),
|
||||||||
|
01/22/2027 (a)
|
693,576
|
672,769
|
||||||
The accompanying notes are an integral part of these financial statements.
54
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Technology Hardware – 1.27% – Continued
|
||||||||
|
Presidio Holdings, Inc. – Continued
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.62% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
01/22/2027 (a)
|
$
|
30,752
|
$
|
29,829
|
||||
|
3,798,804
|
||||||||
|
Telecommunication Services – Diversified – 3.15%
|
||||||||
|
Cablevision Lightpath, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.068% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 11/30/2027 (a)
|
903,900
|
869,159
|
||||||
|
Cincinnati Bell, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.805% (1 Month SOFR USD + 3.25%,
|
||||||||
|
0.500% Floor), 11/22/2028 (a)
|
575,650
|
553,703
|
||||||
|
Consolidated Communications, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.625% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.750% Floor), 10/04/2027 (a)
|
933,868
|
812,465
|
||||||
|
Eagle Broadband Investments, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.688% (3 Month LIBOR USD + 3.00%,
|
||||||||
|
0.750% Floor), 11/12/2027 (a)
|
617,542
|
590,910
|
||||||
|
Lumen Technologies, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.365% (1 Month LIBOR USD + 2.25%),
|
||||||||
|
03/15/2027 (a)
|
3,565,689
|
3,252,871
|
||||||
|
Numericable U.S., LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.905% (3 Month LIBOR USD + 4.00%),
|
||||||||
|
08/14/2026 (a)
|
757,669
|
689,479
|
||||||
|
Voyage U.S., LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.21% (3 Month LIBOR USD + 3.50%,
|
||||||||
|
0.500% Floor), 07/20/2028 (a)
|
476,190
|
459,823
|
||||||
The accompanying notes are an integral part of these financial statements.
55
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Telecommunication Services – Diversified – 3.15% – Continued
|
||||||||
|
Zayo Group Holdings, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
03/09/2027 (a)
|
$
|
1,272,474
|
$
|
1,069,521
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.284% (1 Month SOFR USD + 4.25%,
|
||||||||
|
0.500% Floor), 03/09/2027 (a)
|
368,150
|
321,809
|
||||||
|
Ziggo Financing Partnership,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.318% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
04/28/2028 (a)
|
845,000
|
808,243
|
||||||
|
9,427,983
|
||||||||
|
Telecommunication Services – Wireless – 0.17%
|
||||||||
|
CCI Buyer, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.553% (3 Month SOFR USD + 4.00%,
|
||||||||
|
0.750% Floor), 12/17/2027 (a)
|
536,825
|
507,434
|
||||||
|
Transportation – 2.34%
|
||||||||
|
AAdvantage Loyalty IP, Ltd.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.46% (3 Month LIBOR USD + 4.75%,
|
||||||||
|
0.750% Floor), 04/20/2028 (a)
|
727,184
|
706,459
|
||||||
|
Atlas CC Acquisition Corp.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.32% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
0.750% Floor), 05/25/2028 (a)
|
1,105,340
|
972,975
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.32% (3 Month LIBOR USD + 4.25%,
|
||||||||
|
0.750% Floor), 05/25/2028 (a)
|
233,680
|
205,697
|
||||||
|
Avis Budget Car Rental, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.634% (1 Month SOFR USD + 3.50%,
|
||||||||
|
0.500% Floor), 03/15/2029 (a)
|
212,013
|
204,770
|
||||||
The accompanying notes are an integral part of these financial statements.
56
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Transportation – 2.34% – Continued
|
||||||||
|
Hertz Corp.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.37% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 06/30/2028 (a)
|
$
|
382,217
|
$
|
362,630
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.37% (1 Month LIBOR USD + 3.25%,
|
||||||||
|
0.500% Floor), 06/30/2028 (a)
|
72,945
|
69,207
|
||||||
|
Kenan Advantage Group, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 03/24/2026 (a)
|
483,972
|
458,869
|
||||||
|
Lasership, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.377% (6 Month LIBOR USD + 4.50%,
|
||||||||
|
0.750% Floor), 05/08/2028 (a)
|
1,592,673
|
1,355,770
|
||||||
|
PODS, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
0.750% Floor), 03/31/2028 (a)
|
976,185
|
926,155
|
||||||
|
Uber Technologies, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.57% (3 Month LIBOR USD + 3.50%),
|
||||||||
|
04/04/2025 (a)
|
898,665
|
881,725
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.57% (3 Month LIBOR USD + 3.50%),
|
||||||||
|
02/25/2027 (a)
|
332,654
|
325,289
|
||||||
|
WWEX UNI TopCo Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.674% (3 Month LIBOR USD + 4.00%,
|
||||||||
|
0.750% Floor), 07/26/2028 (a)
|
568,703
|
519,564
|
||||||
|
6,989,110
|
||||||||
|
Utilities – Power – 0.69%
|
||||||||
|
Calpine Construction Finance Co., LP,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.115% (1 Month LIBOR USD + 2.00%),
|
||||||||
|
01/15/2025 (a)
|
835,425
|
814,644
|
||||||
The accompanying notes are an integral part of these financial statements.
57
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 85.68% – Continued
|
||||||||
|
Utilities – Power – 0.69% – Continued
|
||||||||
|
Calpine Corp.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.62% (1 Month LIBOR USD + 2.50%),
|
||||||||
|
12/16/2027 (a)
|
$
|
373,350
|
$
|
361,743
|
||||
|
Eastern Power, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.424% (3 Month LIBOR USD + 3.75%,
|
||||||||
|
1.000% Floor), 10/02/2025 (a)
|
120,547
|
103,511
|
||||||
|
Lightstone Holdco, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.051% (1 Month SOFR USD + 5.75%,
|
||||||||
|
1.000% Floor), 02/01/2027 (a)
|
792,053
|
727,417
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
8.051% (1 Month SOFR USD + 5.75%,
|
||||||||
|
1.000% Floor), 02/01/2027 (a)
|
44,798
|
41,142
|
||||||
|
New Frontera Holdings, LLC,
|
||||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
5.174% (3 Month LIBOR USD + 1.50%,
|
||||||||
|
1.000% Floor), 07/28/2028 (a)
|
57,484
|
9,485
|
||||||
|
2,057,942
|
||||||||
|
TOTAL BANK LOANS
|
||||||||
|
(Cost $272,240,710)
|
256,271,414
|
|||||||
|
CORPORATE BONDS – 11.53% (f)
|
||||||||
|
Aerospace & Defense – 1.14%
|
||||||||
|
TransDigm, Inc.
|
||||||||
|
6.25%, 03/15/2026 (h)
|
1,850,000
|
1,797,626
|
||||||
|
6.375%, 06/15/2026
|
1,698,000
|
1,606,235
|
||||||
|
3,403,861
|
||||||||
|
Building Products – 0.14%
|
||||||||
|
Standard Industries, Inc.
|
||||||||
|
3.375%, 01/15/2031 (h)
|
600,000
|
423,990
|
||||||
The accompanying notes are an integral part of these financial statements.
58
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 11.53% (f) – Continued
|
||||||||
|
Chemicals – 0.15%
|
||||||||
|
Cheever Escrow Issuer, LLC
|
||||||||
|
7.125%, 10/01/2027 (h)
|
$
|
490,000
|
$
|
439,182
|
||||
|
Commercial Services – 0.41%
|
||||||||
|
Garda World Security Corp.
|
||||||||
|
4.625%, 02/15/2027 (c)(h)
|
710,000
|
610,472
|
||||||
|
Tempo Acquisition, LLC / Tempo Acquisition
|
||||||||
|
Finance Corp. 5.75%, 06/01/2025 (h)
|
625,000
|
609,820
|
||||||
|
1,220,292
|
||||||||
|
Construction & Engineering – 0.17%
|
||||||||
|
Pike Corp. 5.50%, 09/01/2028 (h)
|
638,000
|
517,597
|
||||||
|
Environmental Services – 0.37%
|
||||||||
|
GFL Environmental, Inc.
|
||||||||
|
4.00%, 08/01/2028 (c)(h)
|
541,000
|
454,178
|
||||||
|
Stericycle, Inc. 5.375%, 07/15/2024 (h)
|
679,000
|
653,687
|
||||||
|
1,107,865
|
||||||||
|
Healthcare – Equipment & Supplies – 0.54%
|
||||||||
|
Change Healthcare Holdings, LLC /
|
||||||||
|
Change Healthcare Finance, Inc.
|
||||||||
|
5.75%, 03/01/2025 (h)
|
1,624,000
|
1,620,314
|
||||||
|
Healthcare – Facilities – 1.70%
|
||||||||
|
DaVita, Inc. 3.75%, 02/15/2031 (h)
|
925,000
|
661,232
|
||||||
|
Global Medical Response, Inc.
|
||||||||
|
6.50%, 10/01/2025 (h)
|
650,000
|
546,445
|
||||||
|
Legacy LifePoint Health, LLC
|
||||||||
|
4.375%, 02/15/2027 (h)
|
370,000
|
306,228
|
||||||
|
RegionalCare Hospital Partners Holdings,
|
||||||||
|
Inc. / LifePoint Health, Inc.
|
||||||||
|
9.75%, 12/01/2026 (h)
|
2,310,000
|
2,088,539
|
||||||
|
Tenet Healthcare Corp.
|
||||||||
|
6.25%, 02/01/2027 (h)
|
1,570,000
|
1,468,711
|
||||||
|
5,071,155
|
||||||||
The accompanying notes are an integral part of these financial statements.
59
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 11.53% (f) – Continued
|
||||||||
|
Healthcare – Managed Health Care – 0.33%
|
||||||||
|
Verscend Escrow Corp.
|
||||||||
|
9.75%, 08/15/2026 (h)
|
$
|
1,010,000
|
$
|
976,049
|
||||
|
Healthcare – Pharmaceuticals & Biotechnology – 0.42%
|
||||||||
|
Teva Pharmaceutical Finance Netherlands
|
||||||||
|
III B.V. 3.15%, 10/01/2026 (c)
|
1,515,000
|
1,245,095
|
||||||
|
Healthcare – REITs – 0.12%
|
||||||||
|
MPT Operating Partnership, LP /
|
||||||||
|
MPT Finance Corp. 3.50%, 03/15/2031
|
505,000
|
352,669
|
||||||
|
Industrial Machinery – 0.16%
|
||||||||
|
WESCO Distribution, Inc.
|
||||||||
|
7.125%, 06/15/2025 (h)
|
490,000
|
491,054
|
||||||
|
Leisure – Casinos & Gaming – 1.32%
|
||||||||
|
Caesars Entertainment, Inc.
|
||||||||
|
6.25%, 07/01/2025 (h)
|
2,225,000
|
2,144,677
|
||||||
|
Premier Entertainment Sub, LLC /
|
||||||||
|
Premier Entertainment Finance Corp.
|
||||||||
|
5.625%, 09/01/2029 (h)
|
561,000
|
382,679
|
||||||
|
5.875%, 09/01/2031 (h)
|
562,000
|
376,473
|
||||||
|
VICI Properties, LP / VICI Note Co., Inc.
|
||||||||
|
3.50%, 02/15/2025 (h)
|
1,145,000
|
1,058,527
|
||||||
|
3,962,356
|
||||||||
|
Leisure – Hotels – 0.52%
|
||||||||
|
Royal Caribbean Cruises, Ltd.
|
||||||||
|
9.125%, 06/15/2023 (c)(h)
|
1,520,000
|
1,548,485
|
||||||
|
Leisure – Restaurants – 0.20%
|
||||||||
|
CEC Entertainment, LLC
|
||||||||
|
6.75%, 05/01/2026 (h)
|
660,000
|
594,880
|
||||||
|
Media – Cable & Satellite – 0.32%
|
||||||||
|
DISH DBS Corp. 5.125%, 06/01/2029
|
575,000
|
338,733
|
||||||
|
Hughes Satellite Systems Corp.
|
||||||||
|
6.625%, 08/01/2026
|
675,000
|
613,543
|
||||||
|
952,276
|
||||||||
The accompanying notes are an integral part of these financial statements.
60
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 11.53% (f) – Continued
|
||||||||
|
Media – Entertainment – 0.30%
|
||||||||
|
Playtika Holding Corp.
|
||||||||
|
4.25%, 03/15/2029 (h)
|
$
|
1,130,000
|
$
|
905,215
|
||||
|
Metals & Mining – 0.03%
|
||||||||
|
GrafTech Finance, Inc.
|
||||||||
|
4.625%, 12/15/2028 (h)
|
127,000
|
96,656
|
||||||
|
Packaging – 0.25%
|
||||||||
|
Ball Corp. 5.25%, 07/01/2025
|
758,000
|
741,813
|
||||||
|
Retail – Food & Drug – 0.15%
|
||||||||
|
U.S. Foods, Inc. 6.25%, 04/15/2025 (h)
|
465,000
|
457,619
|
||||||
|
Retailing – 0.23%
|
||||||||
|
QVC, Inc. 4.85%, 04/01/2024
|
730,000
|
688,120
|
||||||
|
Technology – Software & Services – 1.36%
|
||||||||
|
Boxer Parent Co., Inc.
|
||||||||
|
7.125%, 10/02/2025 (h)
|
385,000
|
377,758
|
||||||
|
Elastic N.V. 4.125%, 07/15/2029 (c)(h)
|
844,000
|
667,883
|
||||||
|
NortonLifeLock, Inc. 5.00%, 04/15/2025 (h)
|
1,440,000
|
1,373,573
|
||||||
|
Rackspace Technology Global, Inc.
|
||||||||
|
3.50%, 02/15/2028 (h)
|
1,082,000
|
716,847
|
||||||
|
Sabre GLBL, Inc. 7.375%, 09/01/2025 (h)
|
1,025,000
|
919,434
|
||||||
|
4,055,495
|
||||||||
|
Technology Hardware – 0.20%
|
||||||||
|
Garden Spinco Corp.
|
||||||||
|
8.625%, 07/20/2030 (h)
|
589,000
|
609,801
|
||||||
|
Telecommunication Services – Diversified – 0.55%
|
||||||||
|
Frontier Communications Holdings, LLC
|
||||||||
|
5.00%, 05/01/2028 (h)
|
1,000,000
|
859,870
|
||||||
|
Northwest Fiber, LLC / Northwest
|
||||||||
|
Fiber Finance Sub, Inc.
|
||||||||
|
4.75%, 04/30/2027 (h)
|
349,000
|
304,420
|
||||||
|
6.00%, 02/15/2028 (h)
|
622,000
|
483,358
|
||||||
|
1,647,648
|
||||||||
The accompanying notes are an integral part of these financial statements.
61
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 11.53% (f) – Continued
|
||||||||
|
Transportation – 0.45%
|
||||||||
|
Uber Technologies, Inc.
|
||||||||
|
8.00%, 11/01/2026 (h)
|
$
|
1,350,000
|
$
|
1,356,973
|
||||
|
TOTAL CORPORATE BONDS
|
||||||||
|
(Cost $38,251,575)
|
34,486,460
|
|||||||
|
Shares
|
||||||||
|
EQUITY – 0.00%
|
||||||||
|
Utilities – Power – 0.00%
|
||||||||
|
Frontera Generation Holdings, LLC (b)
|
479
|
12
|
||||||
|
TOTAL EQUITY
|
||||||||
|
(Cost $2,668)
|
12
|
|||||||
|
WARRANT – 0.01%
|
||||||||
|
Media – Entertainment – 0.01%
|
||||||||
|
Crown Finance U.S., Inc. (b)(d)
|
98,930
|
12,924
|
||||||
|
TOTAL WARRANT
|
||||||||
|
(Cost $30,928)
|
12,924
|
|||||||
|
MONEY MARKET FUND – 2.54%
|
||||||||
|
First American Government
|
||||||||
|
Obligations Fund – Class X, 2.78% (e)
|
7,604,661
|
7,604,661
|
||||||
|
TOTAL MONEY MARKET FUND
|
||||||||
|
(Cost $7,604,661)
|
7,604,661
|
|||||||
|
Total Investments (Cost $318,130,542) – 99.76%
|
298,375,471
|
|||||||
|
Other Assets in Excess of Liabilities – 0.24%
|
727,424
|
|||||||
|
TOTAL NET ASSETS – 100.00%
|
$
|
299,102,895
|
||||||
Percentages are stated as a percent of net assets.
|
LIBOR
|
London Interbank Offered Rate
|
|
PIK
|
Payment-in-kind
|
|
REIT
|
Real Estate Investment Trust
|
|
SOFR
|
Secured Overnight Funding Rate
|
The accompanying notes are an integral part of these financial statements.
62
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
(a)
|
Variable rate securities. The coupon rate shown is the effective interest rate as of September 30, 2022.
|
|
(b)
|
Non-income producing security.
|
|
(c)
|
U.S. traded security of a foreign issuer.
|
|
(d)
|
Foreign issued security.
|
|
(e)
|
Rate shown is the 7-day annualized yield as of September 30, 2022.
|
|
(f)
|
All or a portion is posted as collateral for delayed settlement securities.
|
|
(g)
|
Final terms of the bank loan are not yet known, so reference index and spread information may not be presented.
|
|
(h)
|
Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “qualified institutional buyers.” As of
September 30, 2022, the value of these investments was $28,900,252 or 9.66% of total net assets.
|
|
(i)
|
All or a portion of the loan is unfunded.
|
|
(j)
|
Security in default.
|
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and
Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by Shenkman Capital Management, Inc. Industries presented are at the discretion of Shenkman Capital Management, Inc.
and therefore may not follow the exact naming convention prescribed by GICS.
The accompanying notes are an integral part of these financial statements.
63
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
PORTFOLIO ALLOCATION
September 30, 2022 (Unaudited)
|
% Net
|
|
|
TOP TEN HOLDINGS
|
Assets
|
|
Verscend Escrow Corp. 9.75%, 08/15/2026
|
1.76%
|
|
Caesars Entertainment, Inc. 6.25%, 07/01/2025
|
1.48%
|
|
U.S. Foods, Inc. 6.25%, 04/15/2025
|
1.22%
|
|
RegionalCare Hospital Partners Holdings, Inc. /
|
|
|
LifePoint Health, Inc. 9.75%, 12/01/2026
|
1.21%
|
|
Change Healthcare Holdings, LLC /
|
|
|
Change Healthcare Finance, Inc. 5.75%, 03/01/2025
|
1.15%
|
|
WESCO Distribution, Inc. 7.125%, 06/15/2025
|
1.09%
|
|
Aramark Services, Inc. 6.375%, 05/01/2025
|
1.08%
|
|
Boxer Parent Co., Inc. 7.125%, 10/02/2025
|
1.05%
|
|
CCO Holdings, LLC / CCO Holdings Capital Corp.
|
|
|
5.50%, 05/01/2026
|
1.05%
|
|
NortonLifeLock, Inc. 5.00%, 04/15/2025
|
1.05%
|
The portfolio’s holdings and allocations are subject to change. The top ten holdings presented exclude the money market fund. The percentages are of total net assets as of September 30, 2022.
64
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e)
|
||||||||
|
Aerospace & Defense – 2.95%
|
||||||||
|
Howmet Aerospace, Inc.
|
||||||||
|
5.125%, 10/01/2024
|
$
|
5,766,000
|
$
|
5,643,271
|
||||
|
Spirit AeroSystems, Inc.
|
||||||||
|
5.50%, 01/15/2025 (c)
|
733,000
|
693,748
|
||||||
|
7.50%, 04/15/2025 (c)
|
312,000
|
294,408
|
||||||
|
TransDigm, Inc.
|
||||||||
|
8.00%, 12/15/2025 (c)
|
4,503,000
|
4,573,877
|
||||||
|
6.25%, 03/15/2026 (c)
|
13,029,000
|
12,660,149
|
||||||
|
6.375%, 06/15/2026
|
10,860,000
|
10,273,098
|
||||||
|
TransDigm UK Holdings PLC
|
||||||||
|
6.875%, 05/15/2026 (b)
|
5,796,000
|
5,502,017
|
||||||
|
Triumph Group, Inc.
|
||||||||
|
8.875%, 06/01/2024 (c)
|
2,799,000
|
2,801,113
|
||||||
|
42,441,681
|
||||||||
|
Auto Retail – 0.44%
|
||||||||
|
Penske Automotive Group, Inc.
|
||||||||
|
3.50%, 09/01/2025
|
6,910,000
|
6,338,324
|
||||||
|
Automotive – 5.87%
|
||||||||
|
American Axle & Manufacturing, Inc.
|
||||||||
|
6.25%, 03/15/2026
|
3,727,000
|
3,425,370
|
||||||
|
6.50%, 04/01/2027
|
5,872,000
|
4,985,093
|
||||||
|
Clarios Global, LP 6.75%, 05/15/2025 (b)(c)
|
549,000
|
538,179
|
||||||
|
Clarios Global, LP / Clarios U.S. Finance Co.
|
||||||||
|
6.25%, 05/15/2026 (b)(c)
|
8,672,000
|
8,293,380
|
||||||
|
8.50%, 05/15/2027 (b)(c)
|
7,209,000
|
6,858,820
|
||||||
|
Dana Financing Luxembourg
|
||||||||
|
S.A.R.L. 5.75%, 04/15/2025 (b)(c)
|
7,085,000
|
6,757,319
|
||||||
|
Ford Motor Credit Co., LLC
|
||||||||
|
3.664%, 09/08/2024
|
1,855,000
|
1,743,904
|
||||||
|
5.125%, 06/16/2025
|
6,425,000
|
6,072,637
|
||||||
|
3.375%, 11/13/2025
|
8,955,000
|
7,926,176
|
||||||
|
2.70%, 08/10/2026
|
4,195,000
|
3,484,535
|
||||||
|
4.95%, 05/28/2027
|
2,035,000
|
1,812,697
|
||||||
|
Goodyear Tire & Rubber Co.
|
||||||||
|
9.50%, 05/31/2025
|
4,970,000
|
5,164,550
|
||||||
|
5.00%, 05/31/2026
|
12,677,000
|
11,771,751
|
||||||
The accompanying notes are an integral part of these financial statements.
65
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Automotive – 5.87% – Continued
|
||||||||
|
IHO Verwaltungs GmbH 4.75% Cash or
|
||||||||
|
6.00% PIK, 09/15/2026 (b)(c)(f)
|
$
|
3,135,000
|
$
|
2,671,617
|
||||
|
Jaguar Land Rover Automotive PLC
|
||||||||
|
5.625%, 02/01/2023 (b)(c)
|
6,275,000
|
6,143,305
|
||||||
|
7.75%, 10/15/2025 (b)(c)
|
5,531,000
|
4,902,815
|
||||||
|
ZF North America Capital, Inc.
|
||||||||
|
4.75%, 04/29/2025 (c)
|
2,010,000
|
1,831,622
|
||||||
|
84,383,770
|
||||||||
|
Building Products – 0.14%
|
||||||||
|
Summit Materials, LLC / Summit Materials
|
||||||||
|
Finance Corp. 6.50%, 03/15/2027 (c)
|
2,110,000
|
2,025,746
|
||||||
|
Chemicals – 3.81%
|
||||||||
|
Avient Corp. 5.75%, 05/15/2025 (c)
|
12,231,000
|
11,817,898
|
||||||
|
Celanese U.S. Holdings, LLC
|
||||||||
|
6.05%, 03/15/2025
|
4,900,000
|
4,793,254
|
||||||
|
Consolidated Energy Finance SA
|
||||||||
|
6.50%, 05/15/2026 (b)(c)
|
890,000
|
825,563
|
||||||
|
Methanex Corp. 4.25%, 12/01/2024 (b)
|
4,941,000
|
4,743,978
|
||||||
|
NOVA Chemicals Corp.
|
||||||||
|
4.875%, 06/01/2024 (b)(c)
|
13,969,000
|
13,145,667
|
||||||
|
SCIL IV, LLC / SCIL, U.S.A. Holdings, LLC
|
||||||||
|
5.375%, 11/01/2026 (c)
|
2,910,000
|
2,251,641
|
||||||
|
SPCM SA 3.125%, 03/15/2027 (b)(c)
|
2,617,000
|
2,254,297
|
||||||
|
Trinseo Materials Operating SCA /
|
||||||||
|
Trinseo Materials Finance, Inc.
|
||||||||
|
5.375%, 09/01/2025 (b)(c)
|
8,156,000
|
6,615,454
|
||||||
|
W.R. Grace Holdings, LLC
|
||||||||
|
5.625%, 10/01/2024 (c)
|
8,535,000
|
8,317,741
|
||||||
|
54,765,493
|
||||||||
|
Commercial Services – 3.33%
|
||||||||
|
Allied Universal Holdco, LLC /
|
||||||||
|
Allied Universal Finance Corp.
|
||||||||
|
6.625%, 07/15/2026 (c)
|
5,840,000
|
5,215,529
|
||||||
|
Aramark Services, Inc.
|
||||||||
|
5.00%, 04/01/2025 (c)
|
2,430,000
|
2,322,145
|
||||||
|
6.375%, 05/01/2025 (c)
|
15,816,000
|
15,523,009
|
||||||
The accompanying notes are an integral part of these financial statements.
66
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Commercial Services – 3.33% – Continued
|
||||||||
|
Brink’s Co. 5.50%, 07/15/2025 (c)
|
$
|
5,365,000
|
$
|
5,113,692
|
||||
|
Garda World Security Corp.
|
||||||||
|
9.50%, 11/01/2027 (b)(c)
|
5,189,000
|
4,494,461
|
||||||
|
INEOS Quattro Finance 2 PLC
|
||||||||
|
3.375%, 01/15/2026 (b)(c)
|
2,400,000
|
2,001,504
|
||||||
|
Iron Mountain, Inc. 4.875%, 09/15/2027 (c)
|
2,880,000
|
2,584,800
|
||||||
|
KAR Auction Services, Inc.
|
||||||||
|
5.125%, 06/01/2025 (c)
|
5,731,000
|
5,538,696
|
||||||
|
Tempo Acquisition, LLC / Tempo Acquisition
|
||||||||
|
Finance Corp. 5.75%, 06/01/2025 (c)
|
5,142,000
|
5,017,112
|
||||||
|
47,810,948
|
||||||||
|
Construction & Engineering – 0.45%
|
||||||||
|
Picasso Finance Sub, Inc.
|
||||||||
|
6.125%, 06/15/2025 (c)
|
6,649,000
|
6,523,932
|
||||||
|
Consumer Discretionary – 0.47%
|
||||||||
|
Hanesbrands, Inc. 4.625%, 05/15/2024 (c)
|
7,040,000
|
6,722,320
|
||||||
|
Consumer Non-Discretionary – 0.28%
|
||||||||
|
Spectrum Brands, Inc. 5.75%, 07/15/2025
|
4,324,000
|
4,092,349
|
||||||
|
Environmental Services – 1.85%
|
||||||||
|
Clean Harbors, Inc. 4.875%, 07/15/2027 (c)
|
2,495,000
|
2,282,326
|
||||||
|
GFL Environmental, Inc.
|
||||||||
|
4.25%, 06/01/2025 (b)(c)
|
4,263,000
|
4,006,793
|
||||||
|
3.75%, 08/01/2025 (b)(c)
|
5,850,000
|
5,360,443
|
||||||
|
5.125%, 12/15/2026 (b)(c)
|
1,055,000
|
983,788
|
||||||
|
Stericycle, Inc. 5.375%, 07/15/2024 (c)
|
14,451,000
|
13,912,267
|
||||||
|
26,545,617
|
||||||||
|
Financials – Consumer Finance – 2.28%
|
||||||||
|
goeasy, Ltd.
|
||||||||
|
5.375%, 12/01/2024 (b)(c)
|
5,069,000
|
4,762,706
|
||||||
|
4.375%, 05/01/2026 (b)(c)
|
1,945,000
|
1,701,680
|
||||||
|
Navient Corp.
|
||||||||
|
5.50%, 01/25/2023
|
1,875,000
|
1,866,233
|
||||||
|
7.25%, 09/25/2023
|
3,506,000
|
3,497,201
|
||||||
|
6.125%, 03/25/2024
|
7,800,000
|
7,606,248
|
||||||
|
6.75%, 06/25/2025
|
1,755,000
|
1,645,444
|
||||||
The accompanying notes are an integral part of these financial statements.
67
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Financials – Consumer Finance – 2.28% – Continued
|
||||||||
|
OneMain Finance Corp.
|
||||||||
|
8.25%, 10/01/2023
|
$
|
3,206,000
|
$
|
3,246,333
|
||||
|
6.125%, 03/15/2024
|
6,050,000
|
5,836,859
|
||||||
|
6.875%, 03/15/2025
|
1,850,000
|
1,742,987
|
||||||
|
SLM Corp. 3.125%, 11/02/2026
|
1,065,000
|
883,716
|
||||||
|
32,789,407
|
||||||||
|
Financials – Diversified – 0.75%
|
||||||||
|
Blackstone Mortgage Trust, Inc.
|
||||||||
|
3.75%, 01/15/2027 (c)
|
3,560,000
|
2,938,511
|
||||||
|
Starwood Property Trust, Inc.
|
||||||||
|
5.50%, 11/01/2023 (c)
|
3,043,000
|
2,996,335
|
||||||
|
3.75%, 12/31/2024 (c)
|
3,121,000
|
2,832,854
|
||||||
|
3.625%, 07/15/2026 (c)
|
2,395,000
|
2,041,031
|
||||||
|
10,808,731
|
||||||||
|
Financials – Insurance – 0.89%
|
||||||||
|
Acrisure, LLC / Acrisure Finance, Inc.
|
||||||||
|
7.00%, 11/15/2025 (c)
|
5,315,000
|
4,866,149
|
||||||
|
10.125%, 08/01/2026 (c)
|
4,271,000
|
4,115,813
|
||||||
|
HUB International, Ltd.
|
||||||||
|
7.00%, 05/01/2026 (c)
|
4,000,000
|
3,800,000
|
||||||
|
12,781,962
|
||||||||
|
Financials – Thrifts & Mortgages – 0.66%
|
||||||||
|
Nationstar Mortgage Holdings, Inc.
|
||||||||
|
6.00%, 01/15/2027 (c)
|
3,345,000
|
2,834,386
|
||||||
|
PennyMac Financial Services, Inc.
|
||||||||
|
5.375%, 10/15/2025 (c)
|
5,675,000
|
4,859,105
|
||||||
|
Rocket Mortgage, LLC / Rocket Mortgage
|
||||||||
|
Co-Issuer, Inc. 2.875%, 10/15/2026 (c)
|
2,272,000
|
1,866,482
|
||||||
|
9,559,973
|
||||||||
|
Food & Beverage – 0.75%
|
||||||||
|
B&G Foods, Inc. 5.25%, 04/01/2025
|
8,804,000
|
7,670,353
|
||||||
|
Post Holdings, Inc. 5.75%, 03/01/2027 (c)
|
3,240,000
|
3,096,241
|
||||||
|
10,766,594
|
||||||||
The accompanying notes are an integral part of these financial statements.
68
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Healthcare – Equipment & Supplies – 1.41%
|
||||||||
|
Change Healthcare Holdings, LLC /
|
||||||||
|
Change Healthcare Finance, Inc.
|
||||||||
|
5.75%, 03/01/2025 (c)
|
$
|
16,605,000
|
$
|
16,567,307
|
||||
|
Owens & Minor, Inc. 4.375%, 12/15/2024
|
3,870,000
|
3,766,081
|
||||||
|
20,333,388
|
||||||||
|
Healthcare – Facilities – 5.72%
|
||||||||
|
Global Medical Response, Inc.
|
||||||||
|
6.50%, 10/01/2025 (c)
|
4,145,000
|
3,484,639
|
||||||
|
HCA, Inc.
|
||||||||
|
7.50%, 12/15/2023
|
2,505,000
|
2,576,449
|
||||||
|
8.36%, 04/15/2024
|
3,846,000
|
3,968,243
|
||||||
|
5.375%, 02/01/2025
|
1,805,000
|
1,784,848
|
||||||
|
7.69%, 06/15/2025
|
658,000
|
682,265
|
||||||
|
7.58%, 09/15/2025
|
2,251,000
|
2,349,516
|
||||||
|
Legacy LifePoint Health, LLC
|
||||||||
|
6.75%, 04/15/2025 (c)
|
8,119,000
|
7,742,806
|
||||||
|
ModivCare, Inc. 5.875%, 11/15/2025 (c)
|
3,520,000
|
3,252,969
|
||||||
|
RegionalCare Hospital Partners
|
||||||||
|
Holdings, Inc. / LifePoint Health, Inc.
|
||||||||
|
9.75%, 12/01/2026 (c)
|
19,226,000
|
17,382,804
|
||||||
|
RP Escrow Issuer, LLC
|
||||||||
|
5.25%, 12/15/2025 (c)
|
6,835,000
|
5,657,603
|
||||||
|
Surgery Center Holdings, Inc.
|
||||||||
|
6.75%, 07/01/2025 (c)
|
10,025,000
|
9,365,104
|
||||||
|
10.00%, 04/15/2027 (c)
|
4,955,000
|
4,802,313
|
||||||
|
Tenet Healthcare Corp.
|
||||||||
|
4.625%, 07/15/2024
|
656,000
|
635,070
|
||||||
|
4.625%, 09/01/2024 (c)
|
13,849,000
|
13,417,465
|
||||||
|
6.25%, 02/01/2027 (c)
|
5,546,000
|
5,188,200
|
||||||
|
82,290,294
|
||||||||
|
Healthcare – Life Sciences – 0.70%
|
||||||||
|
Catalent Pharma Solutions, Inc.
|
||||||||
|
5.00%, 07/15/2027 (c)
|
1,290,000
|
1,153,444
|
||||||
|
IQVIA, Inc. 5.00%, 10/15/2026 (c)
|
9,352,000
|
8,922,907
|
||||||
|
10,076,351
|
||||||||
The accompanying notes are an integral part of these financial statements.
69
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Healthcare – Managed Health Care – 1.76%
|
||||||||
|
Verscend Escrow Corp.
|
||||||||
|
9.75%, 08/15/2026 (c)
|
$
|
26,134,000
|
$
|
25,255,506
|
||||
|
Healthcare – Pharmaceuticals & Biotechnology – 1.27%
|
||||||||
|
Bausch Health Cos., Inc.
|
||||||||
|
5.50%, 11/01/2025 (b)(c)
|
3,085,000
|
2,452,740
|
||||||
|
9.00%, 12/15/2025 (b)(c)
|
7,152,000
|
4,500,064
|
||||||
|
Teva Pharmaceutical Finance
|
||||||||
|
Netherlands III B.V.
|
||||||||
|
2.80%, 07/21/2023 (b)
|
1,245,000
|
1,204,774
|
||||||
|
6.00%, 04/15/2024 (b)
|
5,800,000
|
5,639,108
|
||||||
|
7.125%, 01/31/2025 (b)
|
2,400,000
|
2,340,108
|
||||||
|
4.75%, 05/09/2027 (b)
|
2,455,000
|
2,088,125
|
||||||
|
18,224,919
|
||||||||
|
Healthcare – REITs – 0.88%
|
||||||||
|
MPT Operating Partnership, LP /
|
||||||||
|
MPT Finance Corp. 5.25%, 08/01/2026
|
13,797,000
|
12,649,948
|
||||||
|
Industrial Machinery – 1.67%
|
||||||||
|
EnPro Industries, Inc. 5.75%, 10/15/2026
|
6,489,000
|
6,272,689
|
||||||
|
Hillenbrand, Inc. 5.75%, 06/15/2025
|
2,105,000
|
2,055,090
|
||||||
|
WESCO Distribution, Inc.
|
||||||||
|
7.125%, 06/15/2025 (c)
|
15,584,000
|
15,617,506
|
||||||
|
23,945,285
|
||||||||
|
Leisure – Casinos & Gaming – 6.61%
|
||||||||
|
Caesars Entertainment, Inc.
|
||||||||
|
6.25%, 07/01/2025 (c)
|
22,089,000
|
21,291,587
|
||||||
|
Caesars Resort Collection, LLC /
|
||||||||
|
CRC Finco, Inc. 5.75%, 07/01/2025 (c)
|
9,320,000
|
9,052,516
|
||||||
|
International Game Technology PLC
|
||||||||
|
6.50%, 02/15/2025 (b)(c)
|
4,992,000
|
4,967,290
|
||||||
|
4.125%, 04/15/2026 (b)(c)
|
4,525,000
|
4,141,574
|
||||||
|
6.25%, 01/15/2027 (b)(c)
|
1,400,000
|
1,360,464
|
||||||
|
MGM Resorts International
|
||||||||
|
6.00%, 03/15/2023
|
5,158,000
|
5,166,098
|
||||||
|
6.75%, 05/01/2025
|
11,995,000
|
11,830,249
|
||||||
|
5.75%, 06/15/2025
|
2,315,000
|
2,214,691
|
||||||
The accompanying notes are an integral part of these financial statements.
70
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Leisure – Casinos & Gaming – 6.61% – Continued
|
||||||||
|
Peninsula Pacific Entertainment, LLC /
|
||||||||
|
Peninsula Pacific Entertainment Finance
|
||||||||
|
8.50%, 11/15/2027 (c)
|
$
|
2,810,000
|
$
|
3,026,019
|
||||
|
Scientific Games International, Inc.
|
||||||||
|
8.625%, 07/01/2025 (c)
|
12,118,000
|
12,421,192
|
||||||
|
VICI Properties, LP / VICI Note Co., Inc.
|
||||||||
|
5.625%, 05/01/2024 (c)
|
7,810,000
|
7,685,235
|
||||||
|
3.50%, 02/15/2025 (c)
|
1,865,000
|
1,724,151
|
||||||
|
4.625%, 06/15/2025 (c)
|
5,805,000
|
5,468,594
|
||||||
|
4.25%, 12/01/2026 (c)
|
5,240,000
|
4,735,089
|
||||||
|
95,084,749
|
||||||||
|
Leisure – Hotels – 6.86%
|
||||||||
|
Cedar Fair, LP / Canada’s Wonderland Co. /
|
||||||||
|
Magnum Management Corp. /
|
||||||||
|
Millennium Op 5.50%, 05/01/2025 (c)
|
8,995,000
|
8,665,018
|
||||||
|
Hilton Domestic Operating Co., Inc.
|
||||||||
|
5.375%, 05/01/2025 (c)
|
1,510,000
|
1,480,442
|
||||||
|
Marriott Ownership Resorts, Inc.
|
||||||||
|
6.125%, 09/15/2025 (c)
|
5,860,000
|
5,737,769
|
||||||
|
NCL Corp., Ltd. 5.875%, 02/15/2027 (b)(c)
|
1,000,000
|
835,410
|
||||||
|
Park Intermediate Holdings, LLC /
|
||||||||
|
PK Domestic Property, LLC / PK Finance
|
||||||||
|
Co-Issuer 7.50%, 06/01/2025 (c)
|
6,870,000
|
6,836,337
|
||||||
|
RLJ Lodging Trust, LP
|
||||||||
|
3.75%, 07/01/2026 (c)
|
6,307,000
|
5,395,166
|
||||||
|
Royal Caribbean Cruises, Ltd.
|
||||||||
|
10.875%, 06/01/2023 (b)(c)
|
13,592,000
|
13,906,315
|
||||||
|
9.125%, 06/15/2023 (b)(c)
|
2,365,000
|
2,409,320
|
||||||
|
11.50%, 06/01/2025 (b)(c)
|
6,033,000
|
6,430,997
|
||||||
|
Service Properties Trust
|
||||||||
|
4.50%, 06/15/2023
|
7,805,000
|
7,628,646
|
||||||
|
4.65%, 03/15/2024
|
1,230,000
|
1,140,148
|
||||||
|
4.35%, 10/01/2024
|
3,705,000
|
3,263,432
|
||||||
|
7.50%, 09/15/2025
|
3,820,000
|
3,576,475
|
||||||
|
Six Flags Entertainment Corp.
|
||||||||
|
4.875%, 07/31/2024 (c)
|
940,000
|
896,553
|
||||||
The accompanying notes are an integral part of these financial statements.
71
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Leisure – Hotels – 6.86% – Continued
|
||||||||
|
Six Flags Theme Parks, Inc.
|
||||||||
|
7.00%, 07/01/2025 (c)
|
$
|
7,365,000
|
$
|
7,377,262
|
||||
|
Travel + Leisure Co. 3.90%, 03/01/2023
|
1,715,000
|
1,695,016
|
||||||
|
TripAdvisor, Inc. 7.00%, 07/15/2025 (c)
|
12,192,000
|
11,871,601
|
||||||
|
Vail Resorts, Inc. 6.25%, 05/15/2025 (c)
|
9,579,000
|
9,480,911
|
||||||
|
98,626,818
|
||||||||
|
Leisure – Restaurants – 0.91%
|
||||||||
|
1011778 B.C., ULC / New Red Finance, Inc.
|
||||||||
|
5.75%, 04/15/2025 (b)(c)
|
2,860,000
|
2,837,656
|
||||||
|
IRB Holding Corp. 7.00%, 06/15/2025 (c)
|
10,240,000
|
10,201,600
|
||||||
|
13,039,256
|
||||||||
|
Media – Broadcasting – 4.48%
|
||||||||
|
AMC Networks, Inc.
|
||||||||
|
5.00%, 04/01/2024
|
3,007,000
|
2,881,777
|
||||||
|
4.75%, 08/01/2025
|
15,537,000
|
13,884,369
|
||||||
|
Graham Holdings Co.
|
||||||||
|
5.75%, 06/01/2026 (c)
|
3,044,000
|
2,956,013
|
||||||
|
Gray Television, Inc.
|
||||||||
|
5.875%, 07/15/2026 (c)
|
9,730,000
|
8,989,498
|
||||||
|
Nexstar Media, Inc.
|
||||||||
|
5.625%, 07/15/2027 (c)
|
2,976,000
|
2,742,019
|
||||||
|
Sirius XM Radio, Inc.
|
||||||||
|
3.125%, 09/01/2026 (c)
|
4,478,000
|
3,938,401
|
||||||
|
5.00%, 08/01/2027 (c)
|
6,526,000
|
6,002,713
|
||||||
|
TEGNA, Inc. 4.75%, 03/15/2026 (c)
|
3,590,000
|
3,469,735
|
||||||
|
Univision Communications, Inc.
|
||||||||
|
5.125%, 02/15/2025 (c)
|
13,433,000
|
12,773,373
|
||||||
|
6.625%, 06/01/2027 (c)
|
7,180,000
|
6,791,903
|
||||||
|
64,429,801
|
||||||||
|
Media – Cable & Satellite – 4.25%
|
||||||||
|
CCO Holdings, LLC / CCO Holdings Capital
|
||||||||
|
Corp. 5.50%, 05/01/2026 (c)
|
15,906,000
|
15,128,475
|
||||||
|
Connect Finco S.A.R.L. / Connect
|
||||||||
|
U.S. Finco, LLC 6.75%, 10/01/2026 (b)(c)
|
2,500,000
|
2,190,420
|
||||||
The accompanying notes are an integral part of these financial statements.
72
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Media – Cable & Satellite – 4.25% – Continued
|
||||||||
|
CSC Holdings, LLC
|
||||||||
|
5.25%, 06/01/2024
|
$
|
7,794,000
|
$
|
7,220,206
|
||||
|
5.50%, 04/15/2027 (c)
|
7,117,000
|
6,306,702
|
||||||
|
DIRECTV Financing, LLC / DIRECTV
|
||||||||
|
Financing Co-Obligor, Inc.
|
||||||||
|
5.875%, 08/15/2027 (c)
|
4,585,000
|
3,963,159
|
||||||
|
DISH DBS Corp.
|
||||||||
|
5.875%, 11/15/2024
|
2,565,000
|
2,292,892
|
||||||
|
5.25%, 12/01/2026 (c)
|
4,237,000
|
3,477,442
|
||||||
|
Hughes Satellite Systems Corp.
|
||||||||
|
6.625%, 08/01/2026
|
3,425,000
|
3,113,160
|
||||||
|
Maxar Technologies, Inc.
|
||||||||
|
7.75%, 06/15/2027 (c)
|
1,690,000
|
1,589,648
|
||||||
|
Quebecor Media, Inc.
|
||||||||
|
5.75%, 01/15/2023 (b)
|
5,330,000
|
5,284,828
|
||||||
|
Radiate Holdco, LLC / Radiate Finance, Inc.
|
||||||||
|
4.50%, 09/15/2026 (c)
|
1,896,000
|
1,557,611
|
||||||
|
Viasat, Inc. 5.625%, 09/15/2025 (c)
|
7,159,000
|
5,496,322
|
||||||
|
Videotron, Ltd. 5.375%, 06/15/2024 (b)(c)
|
3,510,000
|
3,444,293
|
||||||
|
61,065,158
|
||||||||
|
Media – Diversified – 1.19%
|
||||||||
|
Match Group Holdings II, LLC
|
||||||||
|
5.00%, 12/15/2027 (c)
|
2,045,000
|
1,828,383
|
||||||
|
Nielsen Co. Luxembourg S.A.R.L.
|
||||||||
|
5.00%, 02/01/2025 (b)(c)
|
10,442,000
|
10,252,350
|
||||||
|
Outfront Media Capital, LLC / Outfront
|
||||||||
|
Media Capital Corp. 6.25%, 06/15/2025 (c)
|
5,200,000
|
5,061,263
|
||||||
|
17,141,996
|
||||||||
|
Media – Entertainment – 1.09%
|
||||||||
|
Live Nation Entertainment, Inc.
|
||||||||
|
4.875%, 11/01/2024 (c)
|
9,332,000
|
9,019,798
|
||||||
|
5.625%, 03/15/2026 (c)
|
7,048,000
|
6,711,017
|
||||||
|
15,730,815
|
||||||||
|
Metals & Mining – 0.73%
|
||||||||
|
FMG Resources August 2006 Pty, Ltd.
|
||||||||
|
5.125%, 05/15/2024 (b)(c)
|
10,656,000
|
10,446,397
|
||||||
The accompanying notes are an integral part of these financial statements.
73
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Midstream – Storage & Transport – 2.34%
|
||||||||
|
Antero Midstream Partners, LP /
|
||||||||
|
Antero Midstream Finance Corp.
|
||||||||
|
7.875%, 05/15/2026 (c)
|
$
|
1,360,000
|
$
|
1,368,609
|
||||
|
Buckeye Partners, LP
|
||||||||
|
4.15%, 07/01/2023
|
3,537,000
|
3,479,683
|
||||||
|
4.35%, 10/15/2024
|
3,460,000
|
3,259,839
|
||||||
|
4.125%, 03/01/2025 (c)
|
4,616,000
|
4,231,279
|
||||||
|
DCP Midstream Operating, LP
|
||||||||
|
3.875%, 03/15/2023
|
850,000
|
840,386
|
||||||
|
EQM Midstream Partners, LP
|
||||||||
|
6.00%, 07/01/2025 (c)
|
714,000
|
661,337
|
||||||
|
7.50%, 06/01/2027 (c)
|
1,805,000
|
1,723,360
|
||||||
|
NGL Energy Operating, LLC / NGL Energy
|
||||||||
|
Finance Corp. 7.50%, 02/01/2026 (c)
|
1,150,000
|
1,024,713
|
||||||
|
NuStar Logistics, LP 5.75%, 10/01/2025
|
3,385,000
|
3,141,771
|
||||||
|
Rattler Midstream, LP
|
||||||||
|
5.625%, 07/15/2025 (c)
|
8,905,000
|
9,027,266
|
||||||
|
Sunoco, LP / Sunoco Finance Corp.
|
||||||||
|
6.00%, 04/15/2027
|
2,341,000
|
2,234,836
|
||||||
|
Tallgrass Energy Partners, LP /
|
||||||||
|
Tallgrass Energy Finance Corp.
|
||||||||
|
7.50%, 10/01/2025 (c)
|
2,630,000
|
2,587,920
|
||||||
|
33,580,999
|
||||||||
|
Packaging – 3.39%
|
||||||||
|
ARD Finance SA 6.50% Cash or 7.25% PIK,
|
||||||||
|
06/30/2027 (b)(c)(f)
|
1,321,210
|
907,314
|
||||||
|
Ardagh Metal Packaging Finance
|
||||||||
|
U.S.A., LLC / Ardagh Metal Packaging
|
||||||||
|
Finance PLC 6.00%, 06/15/2027 (b)(c)
|
1,510,000
|
1,425,521
|
||||||
|
Ardagh Packaging Finance PLC /
|
||||||||
|
Ardagh Holdings U.S.A., Inc.
|
||||||||
|
5.25%, 04/30/2025 (b)(c)
|
10,953,000
|
10,260,989
|
||||||
|
4.125%, 08/15/2026 (b)(c)
|
5,365,000
|
4,432,483
|
||||||
|
Ball Corp. 5.25%, 07/01/2025
|
3,480,000
|
3,405,685
|
||||||
|
Berry Global, Inc.
|
||||||||
|
4.50%, 02/15/2026 (c)
|
1,500,000
|
1,391,517
|
||||||
|
4.875%, 07/15/2026 (c)
|
6,151,000
|
5,789,752
|
||||||
The accompanying notes are an integral part of these financial statements.
74
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Packaging – 3.39% – Continued
|
||||||||
|
CANPACK SA / CANPACK U.S., LLC
|
||||||||
|
3.125%, 11/01/2025 (b)(c)
|
$
|
3,075,000
|
$
|
2,684,477
|
||||
|
Crown Americas, LLC / Crown Americas
|
||||||||
|
Capital Corp. V 4.25%, 09/30/2026
|
2,770,000
|
2,512,861
|
||||||
|
Graphic Packaging International, LLC
|
||||||||
|
4.125%, 08/15/2024
|
2,960,000
|
2,839,750
|
||||||
|
LABL, Inc. 6.75%, 07/15/2026 (c)
|
4,138,000
|
3,729,910
|
||||||
|
Mauser Packaging Solutions Holding Co.
|
||||||||
|
5.50%, 04/15/2024 (c)
|
3,302,000
|
3,141,985
|
||||||
|
7.25%, 04/15/2025 (c)
|
2,100,000
|
1,850,279
|
||||||
|
Sealed Air Corp.
|
||||||||
|
5.125%, 12/01/2024 (c)
|
4,359,000
|
4,219,272
|
||||||
|
5.50%, 09/15/2025 (c)
|
205,000
|
196,034
|
||||||
|
48,787,829
|
||||||||
|
Paper & Forest Products – 0.26%
|
||||||||
|
Mercer International, Inc.
|
||||||||
|
5.50%, 01/15/2026
|
3,969,000
|
3,676,663
|
||||||
|
Real Estate – Homebuilding – 0.42%
|
||||||||
|
Taylor Morrison Communities, Inc. /
|
||||||||
|
Taylor Morrison Holdings II, Inc.
|
||||||||
|
5.625%, 03/01/2024 (c)
|
3,455,000
|
3,386,892
|
||||||
|
TRI Pointe Group, Inc. / TRI Pointe
|
||||||||
|
Homes, Inc. 5.875%, 06/15/2024
|
2,670,000
|
2,620,778
|
||||||
|
6,007,670
|
||||||||
|
Real Estate – Management – 1.14%
|
||||||||
|
Greystar Real Estate Partners, LLC
|
||||||||
|
5.75%, 12/01/2025 (c)
|
3,880,000
|
3,671,644
|
||||||
|
Newmark Group, Inc. 6.125%, 11/15/2023
|
7,070,000
|
6,975,275
|
||||||
|
Realogy Group, LLC / Realogy Co-Issuer
|
||||||||
|
Corp. 4.875%, 06/01/2023 (c)
|
5,915,000
|
5,781,568
|
||||||
|
16,428,487
|
||||||||
The accompanying notes are an integral part of these financial statements.
75
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Retail – Food & Drug – 2.62%
|
||||||||
|
Albertsons Cos., Inc. / Safeway, Inc. /
|
||||||||
|
New Albertsons, LP / Albertsons, LLC
|
||||||||
|
3.50%, 02/15/2023 (c)
|
$
|
3,815,000
|
$
|
3,777,231
|
||||
|
3.25%, 03/15/2026 (c)
|
3,565,000
|
3,135,598
|
||||||
|
7.50%, 03/15/2026 (c)
|
13,234,000
|
13,332,641
|
||||||
|
U.S. Foods, Inc. 6.25%, 04/15/2025 (c)
|
17,758,000
|
17,476,129
|
||||||
|
37,721,599
|
||||||||
|
Retailing – 0.72%
|
||||||||
|
Bath & Body Works, Inc.
|
||||||||
|
9.375%, 07/01/2025 (c)
|
3,552,000
|
3,681,648
|
||||||
|
QVC, Inc. 4.45%, 02/15/2025
|
7,731,000
|
6,607,802
|
||||||
|
10,289,450
|
||||||||
|
Technology – Software & Services – 4.09%
|
||||||||
|
Block, Inc. 2.75%, 06/01/2026
|
1,790,000
|
1,540,206
|
||||||
|
Boxer Parent Co., Inc.
|
||||||||
|
7.125%, 10/02/2025 (c)
|
15,453,000
|
15,162,329
|
||||||
|
9.125%, 03/01/2026 (c)
|
5,020,000
|
4,842,116
|
||||||
|
Consensus Cloud Solutions, Inc.
|
||||||||
|
6.00%, 10/15/2026 (c)
|
4,975,000
|
4,411,159
|
||||||
|
Go Daddy Operating Co., LLC /
|
||||||||
|
GD Finance Co., Inc.
|
||||||||
|
5.25%, 12/01/2027 (c)
|
3,465,000
|
3,196,673
|
||||||
|
NortonLifeLock, Inc.
|
||||||||
|
5.00%, 04/15/2025 (c)
|
15,765,000
|
15,037,761
|
||||||
|
6.75%, 09/30/2027 (c)
|
1,247,000
|
1,203,872
|
||||||
|
PTC, Inc. 3.625%, 02/15/2025 (c)
|
1,510,000
|
1,408,157
|
||||||
|
Sabre GLBL, Inc.
|
||||||||
|
9.25%, 04/15/2025 (c)
|
6,405,000
|
6,140,890
|
||||||
|
7.375%, 09/01/2025 (c)
|
933,000
|
836,910
|
||||||
|
Shift4 Payments, LLC / Shift4 Payments
|
||||||||
|
Finance Sub, Inc. 4.625%, 11/01/2026 (c)
|
5,476,000
|
5,001,121
|
||||||
|
58,781,194
|
||||||||
|
Technology Hardware – 1.31%
|
||||||||
|
CDW, LLC / CDW Finance Corp.
|
||||||||
|
4.125%, 05/01/2025
|
3,945,000
|
3,732,279
|
||||||
The accompanying notes are an integral part of these financial statements.
76
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Technology Hardware – 1.31% – Continued
|
||||||||
|
NCR Corp. 5.75%, 09/01/2027 (c)
|
$
|
6,805,000
|
$
|
6,182,172
|
||||
|
Presidio Holdings, Inc.
|
||||||||
|
8.25%, 02/01/2028 (c)
|
2,000,000
|
1,727,471
|
||||||
|
Seagate HDD Cayman
|
||||||||
|
4.75%, 06/01/2023 (b)
|
1,631,000
|
1,610,672
|
||||||
|
4.875%, 03/01/2024 (b)
|
1,225,000
|
1,191,208
|
||||||
|
Sensata Technologies B.V.
|
||||||||
|
5.625%, 11/01/2024 (b)(c)
|
2,730,000
|
2,718,152
|
||||||
|
Western Digital Corp. 4.75%, 02/15/2026
|
1,875,000
|
1,737,263
|
||||||
|
18,899,217
|
||||||||
|
Telecommunication Services – Diversified – 1.84%
|
||||||||
|
Altice France SA 8.125%, 02/01/2027 (b)(c)
|
13,623,000
|
12,206,140
|
||||||
|
Cogent Communications Group, Inc.
|
||||||||
|
3.50%, 05/01/2026 (c)
|
3,105,000
|
2,734,666
|
||||||
|
Iliad Holding SASU
|
||||||||
|
6.50%, 10/15/2026 (b)(c)
|
3,473,000
|
3,042,539
|
||||||
|
Northwest Fiber, LLC / Northwest Fiber
|
||||||||
|
Finance Sub, Inc. 4.75%, 04/30/2027 (c)
|
3,155,000
|
2,751,996
|
||||||
|
Uniti Group, LP / Uniti Fiber Holdings, Inc. /
|
||||||||
|
CSL Capital, LLC 7.875%, 02/15/2025 (c)
|
5,850,000
|
5,718,375
|
||||||
|
26,453,716
|
||||||||
|
Telecommunication Services – Wireless – 1.24%
|
||||||||
|
Sprint Corp.
|
||||||||
|
7.875%, 09/15/2023
|
8,445,000
|
8,560,612
|
||||||
|
7.125%, 06/15/2024
|
8,505,000
|
8,648,564
|
||||||
|
7.625%, 03/01/2026
|
660,000
|
684,112
|
||||||
|
17,893,288
|
||||||||
|
Transportation – 1.99%
|
||||||||
|
Uber Technologies, Inc.
|
||||||||
|
7.50%, 05/15/2025 (c)
|
5,280,000
|
5,274,562
|
||||||
|
8.00%, 11/01/2026 (c)
|
13,705,000
|
13,775,786
|
||||||
|
7.50%, 09/15/2027 (c)
|
1,690,000
|
1,658,777
|
||||||
|
XPO Logistics, Inc. 6.25%, 05/01/2025 (c)
|
7,828,000
|
7,860,956
|
||||||
|
28,570,081
|
||||||||
The accompanying notes are an integral part of these financial statements.
77
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
CORPORATE BONDS – 89.17% (e) – Continued
|
||||||||
|
Utilities – Power – 2.38%
|
||||||||
|
Calpine Corp. 5.25%, 06/01/2026 (c)
|
$
|
4,458,000
|
$
|
4,208,062
|
||||
|
NextEra Energy Operating Partners, LP
|
||||||||
|
4.25%, 07/15/2024 (c)
|
9,438,000
|
9,047,691
|
||||||
|
4.25%, 09/15/2024 (c)
|
72,000
|
69,101
|
||||||
|
NRG Energy, Inc. 6.625%, 01/15/2027
|
3,575,000
|
3,510,611
|
||||||
|
Vistra Operations Co., LLC
|
||||||||
|
5.50%, 09/01/2026 (c)
|
6,639,000
|
6,183,339
|
||||||
|
5.625%, 02/15/2027 (c)
|
10,641,000
|
10,002,540
|
||||||
|
5.00%, 07/31/2027 (c)
|
1,390,000
|
1,258,624
|
||||||
|
34,279,968
|
||||||||
|
Utilities – Propane – 0.98%
|
||||||||
|
AmeriGas Partners, LP / AmeriGas Finance
|
||||||||
|
Corp. 5.625%, 05/20/2024
|
11,846,000
|
11,331,525
|
||||||
|
Ferrellgas, LP / Ferrellgas Finance Corp.
|
||||||||
|
5.375%, 04/01/2026 (c)
|
3,059,000
|
2,695,453
|
||||||
|
14,026,978
|
||||||||
|
TOTAL CORPORATE BONDS
|
||||||||
|
(Cost $1,377,435,399)
|
1,282,094,667
|
|||||||
|
BANK LOANS – 5.06%
|
||||||||
|
Aerospace & Defense – 0.18%
|
||||||||
|
Transdigm, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.924% (3 Month LIBOR USD + 2.25%),
|
||||||||
|
08/22/2024 (a)
|
994,074
|
971,563
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.924% (3 Month LIBOR USD + 2.25%),
|
||||||||
|
12/09/2025 (a)
|
1,742,508
|
1,673,731
|
||||||
|
2,645,294
|
||||||||
|
Automotive – 0.25%
|
||||||||
|
Clarios Global, LP, Senior Secured
|
||||||||
|
First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
04/30/2026 (a)
|
3,825,000
|
3,629,772
|
||||||
The accompanying notes are an integral part of these financial statements.
78
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 5.06% – Continued
|
||||||||
|
Commercial Services – 0.27%
|
||||||||
|
Camelot U.S. Acquisition 1 Co.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
10/30/2026 (a)
|
$
|
897,744
|
$
|
870,983
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%,
|
||||||||
|
1.000% Floor), 10/30/2026 (a)
|
2,937,525
|
2,846,947
|
||||||
|
Tempo Acquisition, LLC, Senior Secured
|
||||||||
|
First Lien Term Loan 5.865% (1 Month
|
||||||||
|
LIBOR USD + 2.75%), 05/01/2024 (a)
|
172,878
|
171,869
|
||||||
|
3,889,799
|
||||||||
|
Construction & Engineering – 0.09%
|
||||||||
|
Api Group DE, Inc., Senior Secured First
|
||||||||
|
Lien Term Loan 5.615% (1 Month LIBOR
|
||||||||
|
USD + 2.50%), 10/01/2026 (a)
|
1,340,146
|
1,309,658
|
||||||
|
Financials – Insurance – 0.77%
|
||||||||
|
Asurion, LLC
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.115% (1 Month LIBOR USD + 3.00%),
|
||||||||
|
11/04/2024 (a)
|
5,309,042
|
4,980,545
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.365% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
12/23/2026 (a)
|
418,253
|
355,779
|
||||||
|
Senior Secured Second Lien Term Loan
|
||||||||
|
8.365% (1 Month LIBOR USD + 5.25%),
|
||||||||
|
01/19/2029 (a)
|
1,055,000
|
812,350
|
||||||
|
HUB International, Ltd., Senior Secured
|
||||||||
|
First Lien Term Loan 5.982% (1 Month
|
||||||||
|
LIBOR USD + 3.25%, 0.750% Floor),
|
||||||||
|
04/25/2025 (a)
|
3,162,348
|
3,052,266
|
||||||
|
USI, Inc., Senior Secured
|
||||||||
|
First Lien Term Loan 6.424% (3 Month
|
||||||||
|
LIBOR USD + 2.75%), 05/16/2024 (a)
|
1,984,334
|
1,936,175
|
||||||
|
11,137,115
|
||||||||
The accompanying notes are an integral part of these financial statements.
79
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 5.06% – Continued
|
||||||||
|
Healthcare – Equipment & Supplies – 0.32%
|
||||||||
|
Change Healthcare Holdings, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
4.274% (Prime Rate + 1.75%,
|
||||||||
|
1.000% Floor), 03/01/2024 (a)
|
$
|
633,209
|
$
|
632,066
|
||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.024% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
1.000% Floor), 03/01/2024 (a)
|
3,951,791
|
3,944,658
|
||||||
|
4,576,724
|
||||||||
|
Healthcare – Facilities – 0.15%
|
||||||||
|
RegionalCare Hospital Partners
|
||||||||
|
Holdings, Inc., Senior Secured First Lien
|
||||||||
|
Term Loan 6.871% (1 Month LIBOR
|
||||||||
|
USD + 3.75%), 11/14/2025 (a)
|
1,980,643
|
1,846,593
|
||||||
|
Surgery Center Holdings, Inc., Senior
|
||||||||
|
Secured First Lien Term Loan 6.51%,
|
||||||||
|
09/03/2026 (a)(g)
|
363,355
|
345,711
|
||||||
|
2,192,304
|
||||||||
|
Healthcare – Managed Health Care – 0.28%
|
||||||||
|
Verscend Holding Corp., Senior Secured
|
||||||||
|
First Lien Term Loan 7.115% (1 Month
|
||||||||
|
LIBOR USD + 4.00%), 08/27/2025 (a)
|
4,184,588
|
4,069,512
|
||||||
|
Leisure – Restaurants – 0.51%
|
||||||||
|
IRB Holding Corp., Senior Secured
|
||||||||
|
First Lien Term Loan
|
||||||||
|
5.274% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
1.000% Floor), 02/05/2025 (a)
|
7,506,648
|
7,270,864
|
||||||
|
Media – Broadcasting – 0.01%
|
||||||||
|
Univision Communications, Inc., Senior
|
||||||||
|
Secured First Lien Term Loan
|
||||||||
|
5.274% (1 Month LIBOR USD + 2.75%,
|
||||||||
|
1.000% Floor), 03/15/2024 (a)
|
179,395
|
178,218
|
||||||
|
Media – Cable & Satellite – 0.12%
|
||||||||
|
CSC Holdings, LLC, Senior Secured First
|
||||||||
|
Lien Term Loan 5.068% (1 Month LIBOR
|
||||||||
|
USD + 2.25%), 07/17/2025 (a)
|
1,732,877
|
1,658,155
|
||||||
The accompanying notes are an integral part of these financial statements.
80
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 5.06% – Continued
|
||||||||
|
Media – Entertainment – 0.70%
|
||||||||
|
Delta 2 (Lux) S.A.R.L.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.615% (1 Month LIBOR USD + 2.50%,
|
||||||||
|
1.000% Floor), 02/01/2024 (a)
|
$
|
1,625,890
|
$
|
1,610,208
|
||||
|
UFC Holdings, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.52% (3 Month LIBOR USD + 2.75%,
|
||||||||
|
0.750% Floor), 04/29/2026 (a)
|
1,133,802
|
1,092,702
|
||||||
|
William Morris Endeavor Entertainment, LLC,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.87% (1 Month LIBOR USD + 2.75%),
|
||||||||
|
05/16/2025 (a)
|
7,712,202
|
7,379,613
|
||||||
|
10,082,523
|
||||||||
|
Packaging – 0.20%
|
||||||||
|
Mauser Packaging Solutions Holding Co.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
5.814% (1 Month LIBOR USD + 3.25%),
|
||||||||
|
04/03/2024 (a)
|
3,012,067
|
2,818,180
|
||||||
|
Technology – Software & Services – 1.07%
|
||||||||
|
Almonde, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.871% (6 Month LIBOR USD + 3.50%,
|
||||||||
|
1.000% Floor), 06/13/2024 (a)
|
2,403,605
|
2,098,347
|
||||||
|
Boxer Parent Co., Inc., Senior Secured First
|
||||||||
|
Lien Term Loan 6.865% (1 Month LIBOR
|
||||||||
|
USD + 3.75%), 10/02/2025 (a)
|
2,017,017
|
1,916,942
|
||||||
|
Hyland Software, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.615% (1 Month LIBOR USD + 3.50%,
|
||||||||
|
0.750% Floor), 07/01/2024 (a)
|
459,932
|
446,566
|
||||||
|
Optiv Security, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.42% (6 Month LIBOR USD + 3.25%,
|
||||||||
|
1.000% Floor), 02/01/2024 (a)
|
6,094,009
|
5,850,249
|
||||||
The accompanying notes are an integral part of these financial statements.
81
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
Principal
|
Fair
|
|||||||
|
Amount
|
Value
|
|||||||
|
BANK LOANS – 5.06% – Continued
|
||||||||
|
Technology – Software & Services – 1.07% – Continued
|
||||||||
|
Project Alpha Intermediate Holding, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
7.12% (1 Month LIBOR USD + 4.00%),
|
||||||||
|
04/26/2024 (a)
|
$
|
5,242,602
|
$
|
5,061,575
|
||||
|
15,373,679
|
||||||||
|
Technology Hardware – 0.07%
|
||||||||
|
Presidio Holdings, Inc.
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.31% (3 Month LIBOR USD + 3.50%),
|
||||||||
|
01/22/2027 (a)
|
1,002,518
|
972,442
|
||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.62% (1 Month LIBOR USD + 3.50%),
|
||||||||
|
01/22/2027 (a)
|
44,449
|
43,116
|
||||||
|
1,015,558
|
||||||||
|
Transportation – 0.07%
|
||||||||
|
Kenan Advantage Group, Inc.,
|
||||||||
|
Senior Secured First Lien Term Loan
|
||||||||
|
6.865% (1 Month LIBOR USD + 3.75%,
|
||||||||
|
0.750% Floor), 03/24/2026 (a)
|
993,461
|
941,930
|
||||||
|
TOTAL BANK LOANS (Cost $74,656,903)
|
72,789,285
|
|||||||
|
CONVERTIBLE BONDS – 0.73%
|
||||||||
|
Financials – Diversified – 0.44%
|
||||||||
|
Blackstone Mortgage Trust, Inc.
|
||||||||
|
4.750%, 03/15/2023
|
2,860,000
|
2,849,373
|
||||||
|
5.500%, 03/15/2027
|
2,450,000
|
2,090,156
|
||||||
|
Starwood Property Trust, Inc.
|
||||||||
|
4.375%, 04/01/2023
|
1,450,000
|
1,412,844
|
||||||
|
6,352,373
|
||||||||
|
Leisure – Hotels – 0.29%
|
||||||||
|
Royal Caribbean Cruises, Ltd.
|
||||||||
|
2.875%, 11/15/2023 (b)
|
4,460,000
|
4,190,170
|
||||||
|
TOTAL CONVERTIBLE BONDS
|
||||||||
|
(Cost $11,052,770)
|
10,542,543
|
|||||||
The accompanying notes are an integral part of these financial statements.
82
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2022
|
|
Fair
|
|||||||
|
Shares
|
Value
|
|||||||
|
MONEY MARKET FUND – 3.84%
|
||||||||
|
First American Government
|
||||||||
|
Obligations Fund – Class X, 2.78% (d)
|
55,182,940
|
$
|
55,182,940
|
|||||
|
TOTAL MONEY MARKET FUND
|
||||||||
|
(Cost $55,182,940)
|
55,182,940
|
|||||||
|
Total Investments (Cost $1,518,328,012) – 98.80%
|
1,420,609,435
|
|||||||
|
Other Assets in Excess of Liabilities – 1.20%
|
17,266,227
|
|||||||
|
TOTAL NET ASSETS – 100.00%
|
$
|
1,437,875,662
|
||||||
Percentages are stated as a percent of net assets.
|
LIBOR
|
London Interbank Offered Rate
|
|
PIK
|
Payment-in-kind
|
|
PLC
|
Public Limited Company
|
|
REIT
|
Real Estate Investment Trust
|
|
(a)
|
Variable rate securities. The coupon rate shown is the effective interest rate as of September 30, 2022.
|
|
(b)
|
U.S. traded security of a foreign issuer.
|
|
(c)
|
Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “qualified institutional buyers.” As of
September 30, 2022, the value of these investments was $956,979,607 or 66.56% of total net assets.
|
|
(d)
|
Rate shown is the 7-day annualized yield as of September 30, 2022.
|
|
(e)
|
All or a portion is posted as collateral for delayed settlement securities.
|
|
(f)
|
Security has the ability to pay in kind or pay in cash. When applicable, separate rates of such payments are disclosed.
|
|
(g)
|
Final terms of the bank loan are not yet known, so reference index and spread information may not be presented.
|
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and
Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by Shenkman Capital Management, Inc. Industries presented are at the discretion of Shenkman Capital Management, Inc.
and therefore may not follow the exact naming convention prescribed by GICS.
The accompanying notes are an integral part of these financial statements.
83
SHENKMAN CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2022
|
Shenkman
|
Shenkman
|
|||||||
|
Capital Floating
|
Capital Short
|
|||||||
|
Rate High
|
Duration High
|
|||||||
|
Income Fund
|
Income Fund
|
|||||||
|
ASSETS:
|
||||||||
|
Investments, at value (cost $318,130,542
|
||||||||
|
and $1,518,328,012, respectively)
|
$
|
298,375,471
|
$
|
1,420,609,435
|
||||
|
Cash
|
5,377,740
|
9,841,944
|
||||||
|
Receivables
|
||||||||
|
Securities sold
|
737,452
|
14,825,721
|
||||||
|
Interest
|
1,776,403
|
24,047,957
|
||||||
|
Fund shares sold
|
203,701
|
1,833,770
|
||||||
|
Prepaid expenses
|
31,111
|
71,640
|
||||||
|
Total assets
|
306,501,878
|
1,471,230,467
|
||||||
|
LIABILITIES:
|
||||||||
|
Payables
|
||||||||
|
Securities purchased
|
6,747,663
|
28,763,427
|
||||||
|
Fund shares redeemed
|
178,806
|
1,771,514
|
||||||
|
Distributions payable
|
260,197
|
1,740,521
|
||||||
|
Administration and accounting expenses
|
53,293
|
164,660
|
||||||
|
Advisory fees (Note 4)
|
104,250
|
657,307
|
||||||
|
Audit
|
25,750
|
28,850
|
||||||
|
Transfer agent fees and expenses
|
17,626
|
30,144
|
||||||
|
Compliance fees
|
2,083
|
2,083
|
||||||
|
Printing and mailing
|
5,233
|
15,067
|
||||||
|
Legal
|
380
|
747
|
||||||
|
Shareholder servicing fees
|
306
|
56,131
|
||||||
|
12b-1 distribution fees
|
—
|
109,601
|
||||||
|
Custody fees
|
2,402
|
13,203
|
||||||
|
Trustee fees and expenses
|
156
|
300
|
||||||
|
Other accrued expenses and other liabilities
|
838
|
1,250
|
||||||
|
Total liabilities
|
7,398,983
|
33,354,805
|
||||||
|
NET ASSETS
|
$
|
299,102,895
|
$
|
1,437,875,662
|
||||
|
NET ASSETS CONSIST OF:
|
||||||||
|
Capital stock
|
$
|
334,627,172
|
$
|
1,555,407,303
|
||||
|
Total accumulated deficit
|
(35,524,277
|
)
|
(117,531,641
|
)
|
||||
|
Total net assets
|
$
|
299,102,895
|
$
|
1,437,875,662
|
||||
The accompanying notes are an integral part of these financial statements.
84
SHENKMAN CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES – Continued
September 30, 2022
|
Shenkman
|
Shenkman
|
|||||||
|
Capital Floating
|
Capital Short
|
|||||||
|
Rate High
|
Duration High
|
|||||||
|
Income Fund
|
Income Fund
|
|||||||
|
NET ASSETS
|
||||||||
|
Class A:
|
||||||||
|
Net assets applicable to outstanding
|
||||||||
|
Class A shares
|
—
|
$
|
20,992,019
|
|||||
|
Shares issued and outstanding
|
—
|
2,257,609
|
||||||
|
Net asset value, redemption price per share(1)
|
—
|
$
|
9.30
|
|||||
|
Maximum offering price per share
|
||||||||
|
(net asset value divided by 97.00%)
|
—
|
$
|
9.59
|
|||||
|
Class C:
|
||||||||
|
Net assets applicable to outstanding
|
||||||||
|
Class C shares
|
—
|
$
|
15,553,749
|
|||||
|
Shares issued and outstanding
|
—
|
1,677,830
|
||||||
|
Net asset value, offering price
|
||||||||
|
and redemption price per share(1)
|
—
|
$
|
9.27
|
|||||
|
Class F:
|
||||||||
|
Net assets applicable to outstanding
|
||||||||
|
Class F shares
|
$
|
9,140,859
|
$
|
682,181,474
|
||||
|
Shares issued and outstanding
|
1,035,351
|
73,547,572
|
||||||
|
Net asset value, offering price
|
||||||||
|
and redemption price per share(1)
|
$
|
8.83
|
$
|
9.28
|
||||
|
Institutional Class:
|
||||||||
|
Net assets applicable to outstanding
|
||||||||
|
Institutional Class shares
|
$
|
289,962,036
|
$
|
719,148,420
|
||||
|
Shares issued and outstanding
|
32,840,035
|
77,449,088
|
||||||
|
Net asset value, offering price
|
||||||||
|
and redemption price per share(1)
|
$
|
8.83
|
$
|
9.29
|
||||
|
(1)
|
A redemption fee of 1.00% is assessed against shares redeemed within 30 days of purchase.
|
The accompanying notes are an integral part of these financial statements.
85
SHENKMAN CAPITAL FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended September 30, 2022
|
Shenkman
|
Shenkman
|
|||||||
|
Capital Floating
|
Capital Short
|
|||||||
|
Rate High
|
Duration High
|
|||||||
|
Income Fund
|
Income Fund
|
|||||||
|
INVESTMENT INCOME:
|
||||||||
|
Interest income
|
$
|
13,569,389
|
$
|
56,621,358
|
||||
|
Consent and term loan fee income
|
215,939
|
285,105
|
||||||
|
Total investment income
|
13,785,328
|
56,906,463
|
||||||
|
EXPENSES:
|
||||||||
|
Investment advisory fees (Note 4)
|
1,517,103
|
7,786,592
|
||||||
|
Administration and accounting fees (Note 4)
|
394,189
|
971,291
|
||||||
|
Transfer agent fees and expenses (Note 4)
|
105,272
|
155,396
|
||||||
|
Federal and state registration fees
|
41,931
|
132,192
|
||||||
|
Audit fees
|
25,750
|
28,851
|
||||||
|
Custody fees (Note 4)
|
16,688
|
82,837
|
||||||
|
Reports to shareholders
|
16,675
|
41,150
|
||||||
|
Trustee fees and expenses
|
13,346
|
13,441
|
||||||
|
Chief Compliance Officer fees (Note 4)
|
12,500
|
12,499
|
||||||
|
Miscellaneous expenses
|
6,802
|
15,566
|
||||||
|
Legal fees
|
6,790
|
6,994
|
||||||
|
Insurance expense
|
5,737
|
17,785
|
||||||
|
Service fees – Class A (Note 6)
|
—
|
11,299
|
||||||
|
Service fees – Class C (Note 6)
|
—
|
6,794
|
||||||
|
Service fees – Class F (Note 6)
|
195
|
551,503
|
||||||
|
12b-1 distribution fees – Class A (Note 5)
|
—
|
54,894
|
||||||
|
12b-1 distribution fees – Class C (Note 5)
|
—
|
169,765
|
||||||
|
Total expenses before advisory fee waiver
|
2,162,978
|
10,058,849
|
||||||
|
Advisory fee waiver by Advisor (Note 4)
|
(524,312
|
)
|
(62,257
|
)
|
||||
|
Net expenses
|
1,638,666
|
9,996,592
|
||||||
|
NET INVESTMENT INCOME
|
12,146,662
|
46,909,871
|
||||||
|
NET REALIZED AND UNREALIZED LOSS:
|
||||||||
|
Net realized loss on investments
|
(1,087,748
|
)
|
(9,799,356
|
)
|
||||
|
Change in unrealized
|
||||||||
|
appreciation/(depreciation) on investments
|
(21,520,923
|
)
|
(109,074,109
|
)
|
||||
|
Net realized and unrealized loss on investments
|
(22,608,671
|
)
|
(118,873,465
|
)
|
||||
|
NET DECREASE IN NET ASSETS
|
||||||||
|
RESULTING FROM OPERATIONS
|
$
|
(10,462,009
|
)
|
$
|
(71,963,594
|
)
|
||
The accompanying notes are an integral part of these financial statements.
86
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
Year Ended
|
Year Ended
|
|||||||
|
September 30,
|
September 30,
|
|||||||
|
2022
|
2021
|
|||||||
|
OPERATIONS:
|
||||||||
|
Net investment income
|
$
|
12,146,662
|
$
|
8,777,494
|
||||
|
Net realized loss on investments
|
(1,087,748
|
)
|
(676,924
|
)
|
||||
|
Change in unrealized appreciation/
|
||||||||
|
(depreciation) on investments
|
(21,520,923
|
)
|
8,636,131
|
|||||
|
Net increase/(decrease) in net assets
|
||||||||
|
resulting from operations
|
(10,462,009
|
)
|
16,736,701
|
|||||
|
DISTRIBUTIONS TO SHAREHOLDERS:
|
||||||||
|
Class F
|
(443,965
|
)
|
(305,824
|
)
|
||||
|
Institutional Class
|
(11,704,296
|
)
|
(8,537,284
|
)
|
||||
|
Total distributions
|
(12,148,261
|
)
|
(8,843,108
|
)
|
||||
|
CAPITAL SHARE TRANSACTIONS:
|
||||||||
|
Proceeds from shares sold:
|
||||||||
|
Class F
|
6,999,849
|
16,777,131
|
||||||
|
Institutional Class
|
88,939,715
|
97,444,647
|
||||||
|
Proceeds from shares issued to
|
||||||||
|
holders in reinvestment of dividends:
|
||||||||
|
Class F
|
443,965
|
305,824
|
||||||
|
Institutional Class
|
9,699,429
|
7,403,022
|
||||||
|
Cost of shares redeemed:
|
||||||||
|
Class F
|
(7,801,767
|
)
|
(9,203,131
|
)
|
||||
|
Institutional Class
|
(64,192,070
|
)
|
(66,133,275
|
)
|
||||
|
Redemption fees retained:
|
||||||||
|
Class F
|
350
|
252
|
||||||
|
Institutional Class
|
8,929
|
7,857
|
||||||
|
Net increase in net assets derived
|
||||||||
|
from capital share transactions
|
34,098,400
|
46,602,327
|
||||||
|
TOTAL INCREASE IN NET ASSETS
|
11,488,130
|
54,495,920
|
||||||
|
NET ASSETS:
|
||||||||
|
Beginning of year
|
287,614,765
|
233,118,845
|
||||||
|
End of year
|
$
|
299,102,895
|
$
|
287,614,765
|
||||
|
CHANGES IN SHARES OUTSTANDING:
|
||||||||
|
Shares sold:
|
||||||||
|
Class F
|
749,697
|
1,777,917
|
||||||
|
Institutional Class
|
9,570,555
|
10,361,173
|
||||||
|
Shares issued to holders as reinvestment of dividends:
|
||||||||
|
Class F
|
48,312
|
32,348
|
||||||
|
Institutional Class
|
1,056,306
|
785,217
|
||||||
|
Shares redeemed:
|
||||||||
|
Class F
|
(848,415
|
)
|
(970,192
|
)
|
||||
|
Institutional Class
|
(6,983,553
|
)
|
(6,986,097
|
)
|
||||
|
Net increase in shares outstanding
|
3,592,902
|
5,000,366
|
||||||
The accompanying notes are an integral part of these financial statements.
87
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
Year Ended,
|
Year Ended
|
|||||||
|
September 30,
|
September 30,
|
|||||||
|
2022
|
2021
|
|||||||
|
OPERATIONS:
|
||||||||
|
Net investment income
|
$
|
46,909,871
|
$
|
30,629,674
|
||||
|
Net realized gain/(loss) on investments
|
(9,799,356
|
)
|
5,585,814
|
|||||
|
Change in unrealized appreciation/
|
||||||||
|
(depreciation) on investments
|
(109,074,109
|
)
|
6,868,229
|
|||||
|
Net increase/(decrease) in net assets
|
||||||||
|
resulting from operations
|
(71,963,594
|
)
|
43,083,717
|
|||||
|
DISTRIBUTIONS TO SHAREHOLDERS:
|
||||||||
|
Class A
|
(665,374
|
)
|
(492,038
|
)
|
||||
|
Class C
|
(386,011
|
)
|
(277,719
|
)
|
||||
|
Class F
|
(22,058,354
|
)
|
(15,435,007
|
)
|
||||
|
Institutional Class
|
(23,732,311
|
)
|
(14,387,556
|
)
|
||||
|
Total distributions
|
(46,842,050
|
)
|
(30,592,320
|
)
|
||||
|
CAPITAL SHARE TRANSACTIONS:
|
||||||||
|
Proceeds from shares sold:
|
||||||||
|
Class A
|
12,273,785
|
11,536,752
|
||||||
|
Class C
|
5,032,498
|
5,517,391
|
||||||
|
Class F
|
412,305,150
|
385,267,370
|
||||||
|
Institutional Class
|
278,147,337
|
457,256,845
|
||||||
|
Proceeds from shares issued to holders
|
||||||||
|
in reinvestment of dividends:
|
||||||||
|
Class A
|
275,659
|
195,102
|
||||||
|
Class C
|
130,646
|
92,000
|
||||||
|
Class F
|
8,065,188
|
4,324,978
|
||||||
|
Institutional Class
|
20,479,687
|
11,844,812
|
||||||
|
Cost of shares redeemed:
|
||||||||
|
Class A
|
(10,347,070
|
)
|
(7,364,434
|
)
|
||||
|
Class C
|
(4,766,835
|
)
|
(2,899,332
|
)
|
||||
|
Class F
|
(353,338,576
|
)
|
(172,048,580
|
)
|
||||
|
Institutional Class
|
(140,978,785
|
)
|
(127,355,051
|
)
|
||||
|
Redemption fees retained:
|
||||||||
|
Class A
|
62
|
184
|
||||||
|
Class C
|
47
|
145
|
||||||
|
Class F
|
1,901
|
5,109
|
||||||
|
Institutional Class
|
1,969
|
4,744
|
||||||
|
Net increase in net assets derived
|
||||||||
|
from capital share transactions
|
227,282,663
|
566,378,035
|
||||||
|
TOTAL INCREASE IN NET ASSETS
|
108,477,019
|
578,869,432
|
||||||
|
NET ASSETS:
|
||||||||
|
Beginning of year
|
1,329,398,643
|
750,529,211
|
||||||
|
End of year
|
$
|
1,437,875,662
|
$
|
1,329,398,643
|
||||
The accompanying notes are an integral part of these financial statements.
88
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS – Continued
|
Year Ended,
|
Year Ended
|
|||||||
|
September 30,
|
September 30,
|
|||||||
|
2022
|
2021
|
|||||||
|
CHANGES IN SHARES OUTSTANDING:
|
||||||||
|
Shares sold:
|
||||||||
|
Class A
|
1,248,109
|
1,145,662
|
||||||
|
Class C
|
511,490
|
549,390
|
||||||
|
Class F
|
42,233,031
|
38,311,511
|
||||||
|
Institutional Class
|
28,198,782
|
45,431,739
|
||||||
|
Shares issued to holders as
|
||||||||
|
reinvestment of dividends:
|
||||||||
|
Class A
|
28,386
|
19,389
|
||||||
|
Class C
|
13,524
|
9,169
|
||||||
|
Class F
|
834,178
|
430,561
|
||||||
|
Institutional Class
|
2,116,154
|
1,177,704
|
||||||
|
Shares redeemed:
|
||||||||
|
Class A
|
(1,058,860
|
)
|
(730,740
|
)
|
||||
|
Class C
|
(492,193
|
)
|
(288,376
|
)
|
||||
|
Class F
|
(36,238,732
|
)
|
(17,113,634
|
)
|
||||
|
Institutional Class
|
(14,481,597
|
)
|
(12,636,025
|
)
|
||||
|
Net increase in shares outstanding
|
22,912,272
|
56,306,350
|
||||||
The accompanying notes are an integral part of these financial statements.
89
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Class F
|
Year Ended September 30,
|
||||||||||||||||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
|
PER SHARE DATA:
|
||||||||||||||||||||
|
Net asset value, beginning of year
|
$
|
9.50
|
$
|
9.22
|
$
|
9.56
|
$
|
9.80
|
$
|
9.74
|
||||||||||
|
Income from investment operations:
|
||||||||||||||||||||
|
Net investment income
|
0.37
|
(1)
|
0.30
|
(1)
|
0.41
|
(1)
|
0.50
|
0.44
|
||||||||||||
|
Net realized and unrealized
|
||||||||||||||||||||
|
gain/(loss) on investments
|
(0.67
|
)
|
0.29
|
(0.34
|
)
|
(0.24
|
)
|
0.05
|
||||||||||||
|
Total from investment operations
|
(0.30
|
)
|
0.59
|
0.07
|
0.26
|
0.49
|
||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.37
|
)
|
(0.31
|
)
|
(0.42
|
)
|
(0.50
|
)
|
(0.43
|
)
|
||||||||||
|
Total distributions
|
(0.37
|
)
|
(0.31
|
)
|
(0.42
|
)
|
(0.50
|
)
|
(0.43
|
)
|
||||||||||
|
Redemption fees retained
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.01
|
(1)
|
—
|
—
|
||||||||||||
|
Net asset value, end of year
|
$
|
8.83
|
$
|
9.50
|
$
|
9.22
|
$
|
9.56
|
$
|
9.80
|
||||||||||
|
TOTAL RETURN
|
-3.26
|
%
|
6.44
|
%
|
1.04
|
%
|
2.69
|
%
|
5.12
|
%
|
||||||||||
|
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||||||||||||
|
Net assets, end of year (thousands)
|
$
|
9,141
|
$
|
10,312
|
$
|
2,265
|
$
|
5,856
|
$
|
5,119
|
||||||||||
|
Ratio of expenses to
|
||||||||||||||||||||
|
average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
0.71
|
%
|
0.82
|
%
|
0.78
|
%
|
0.77
|
%
|
0.76
|
%
|
||||||||||
|
After advisory fee waiver
|
0.54
|
%
|
0.60
|
%
|
0.56
|
%
|
0.57
|
%
|
0.58
|
%
|
||||||||||
|
Ratio of net investment income
|
||||||||||||||||||||
|
to average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
3.78
|
%
|
2.92
|
%
|
4.12
|
%
|
4.93
|
%
|
4.31
|
%
|
||||||||||
|
After advisory fee waiver
|
3.95
|
%
|
3.14
|
%
|
4.34
|
%
|
5.13
|
%
|
4.49
|
%
|
||||||||||
|
Portfolio turnover rate
|
39
|
%
|
59
|
%
|
47
|
%
|
28
|
%
|
51
|
%
|
||||||||||
|
(1)
|
Based on average shares outstanding.
|
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
90
SHENKMAN CAPITAL FLOATING RATE HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Institutional Class
|
Year Ended September 30,
|
||||||||||||||||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
|
PER SHARE DATA:
|
||||||||||||||||||||
|
Net asset value, beginning of year
|
$
|
9.50
|
$
|
9.22
|
$
|
9.56
|
$
|
9.80
|
$
|
9.75
|
||||||||||
|
Income from investment operations:
|
||||||||||||||||||||
|
Net investment income
|
0.37
|
(1)
|
0.31
|
(1)
|
0.40
|
(1)
|
0.51
|
0.44
|
||||||||||||
|
Net realized and unrealized
|
||||||||||||||||||||
|
gain/(loss) on investments
|
(0.67
|
)
|
0.28
|
(0.32
|
)
|
(0.25
|
)
|
0.04
|
||||||||||||
|
Total from investment operations
|
(0.30
|
)
|
0.59
|
0.08
|
0.26
|
0.48
|
||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.37
|
)
|
(0.31
|
)
|
(0.42
|
)
|
(0.50
|
)
|
(0.43
|
)
|
||||||||||
|
Total distributions
|
(0.37
|
)
|
(0.31
|
)
|
(0.42
|
)
|
(0.50
|
)
|
(0.43
|
)
|
||||||||||
|
Redemption fees retained
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(2)
|
—
|
|||||||||||
|
Net asset value, end of year
|
$
|
8.83
|
$
|
9.50
|
$
|
9.22
|
$
|
9.56
|
$
|
9.80
|
||||||||||
|
TOTAL RETURN
|
-3.26
|
%
|
6.48
|
%
|
0.94
|
%
|
2.82
|
%
|
5.04
|
%^ | ||||||||||
|
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||||||||||||
|
Net assets, end of year (thousands)
|
$
|
289,962
|
$
|
277,303
|
$
|
230,854
|
$
|
228,454
|
$
|
287,237
|
||||||||||
|
Ratio of expenses to
|
||||||||||||||||||||
|
average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
0.71
|
%
|
0.76
|
%
|
0.76
|
%
|
0.74
|
%
|
0.71
|
%
|
||||||||||
|
After advisory fee waiver
|
0.54
|
%
|
0.54
|
%
|
0.54
|
%
|
0.54
|
%
|
0.54
|
%
|
||||||||||
|
Ratio of net investment income
|
||||||||||||||||||||
|
to average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
3.83
|
%
|
3.05
|
%
|
4.14
|
%
|
4.97
|
%
|
4.24
|
%
|
||||||||||
|
After advisory fee waiver
|
4.00
|
%
|
3.27
|
%
|
4.36
|
%
|
5.17
|
%
|
4.41
|
%
|
||||||||||
|
Portfolio turnover rate
|
39
|
%
|
59
|
%
|
47
|
%
|
28
|
%
|
51
|
%
|
||||||||||
|
^
|
Performance presented includes a 9/30/2017 trade date adjustment to net asset value per share.
|
|
(1)
|
Based on average shares outstanding.
|
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
91
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Class A
|
Year Ended September 30,
|
||||||||||||||||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
|
PER SHARE DATA:
|
||||||||||||||||||||
|
Net asset value, beginning of year
|
$
|
10.09
|
$
|
9.93
|
$
|
10.06
|
$
|
10.00
|
$
|
10.07
|
||||||||||
|
Income from investment operations:
|
||||||||||||||||||||
|
Net investment income
|
0.30
|
(1)
|
0.26
|
(1)
|
0.31
|
(1)
|
0.36
|
0.32
|
||||||||||||
|
Net realized and unrealized
|
||||||||||||||||||||
|
gain/(loss) on investments
|
(0.79
|
)
|
0.16
|
(0.13
|
)
|
0.06
|
(0.07
|
)
|
||||||||||||
|
Total from investment operations
|
(0.49
|
)
|
0.42
|
0.18
|
0.42
|
0.25
|
||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.30
|
)
|
(0.26
|
)
|
(0.31
|
)
|
(0.36
|
)
|
(0.32
|
)
|
||||||||||
|
Total distributions
|
(0.30
|
)
|
(0.26
|
)
|
(0.31
|
)
|
(0.36
|
)
|
(0.32
|
)
|
||||||||||
|
Redemption fees retained
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(2)
|
0.00
|
(2)
|
||||||||||
|
Net asset value, end of year
|
$
|
9.30
|
$
|
10.09
|
$
|
9.93
|
$
|
10.06
|
$
|
10.00
|
||||||||||
|
TOTAL RETURN
|
-4.99
|
%
|
4.25
|
%
|
1.86
|
%
|
4.33
|
%
|
2.56
|
%
|
||||||||||
|
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||||||||||||
|
Net assets, end of year (thousands)
|
$
|
20,992
|
$
|
20,580
|
$
|
15,946
|
$
|
13,407
|
$
|
13,160
|
||||||||||
|
Ratio of expenses to
|
||||||||||||||||||||
|
average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
0.96
|
%
|
0.98
|
%
|
1.02
|
%
|
1.03
|
%
|
1.01
|
%
|
||||||||||
|
After advisory fee waiver
|
0.95
|
%
|
0.96
|
%
|
0.97
|
%
|
0.96
|
%
|
0.95
|
%
|
||||||||||
|
Ratio of net investment income
|
||||||||||||||||||||
|
to average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
3.03
|
%
|
2.59
|
%
|
3.06
|
%
|
3.61
|
%
|
3.25
|
%
|
||||||||||
|
After advisory fee waiver
|
3.04
|
%
|
2.61
|
%
|
3.11
|
%
|
3.68
|
%
|
3.31
|
%
|
||||||||||
|
Portfolio turnover rate
|
50
|
%
|
80
|
%
|
100
|
%
|
77
|
%
|
61
|
%
|
||||||||||
|
(1)
|
Based on average shares outstanding.
|
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
92
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Class C
|
Year Ended September 30,
|
||||||||||||||||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
|
PER SHARE DATA:
|
||||||||||||||||||||
|
Net asset value, beginning of year
|
$
|
10.06
|
$
|
9.90
|
$
|
10.03
|
$
|
9.97
|
$
|
10.04
|
||||||||||
|
Income from investment operations:
|
||||||||||||||||||||
|
Net investment income
|
0.23
|
(1)
|
0.19
|
(1)
|
0.23
|
(1)
|
0.29
|
0.25
|
||||||||||||
|
Net realized and unrealized
|
||||||||||||||||||||
|
gain/(loss) on investments
|
(0.80
|
)
|
0.15
|
(0.12
|
)
|
0.06
|
(0.07
|
)
|
||||||||||||
|
Total from investment operations
|
(0.57
|
)
|
0.34
|
0.11
|
0.35
|
0.18
|
||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.22
|
)
|
(0.18
|
)
|
(0.24
|
)
|
(0.29
|
)
|
(0.25
|
)
|
||||||||||
|
Total distributions
|
(0.22
|
)
|
(0.18
|
)
|
(0.24
|
)
|
(0.29
|
)
|
(0.25
|
)
|
||||||||||
|
Redemption fees retained
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
—
|
0.00
|
(2)
|
|||||||||||
|
Net asset value, end of year
|
$
|
9.27
|
$
|
10.06
|
$
|
9.90
|
$
|
10.03
|
$
|
9.97
|
||||||||||
|
TOTAL RETURN
|
-5.71
|
%
|
3.49
|
%
|
1.10
|
%
|
3.57
|
%
|
1.80
|
%
|
||||||||||
|
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||||||||||||
|
Net assets, end of year (thousands)
|
$
|
15,554
|
$
|
16,546
|
$
|
13,615
|
$
|
11,406
|
$
|
11,112
|
||||||||||
|
Ratio of expenses to
|
||||||||||||||||||||
|
average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
1.70
|
%
|
1.73
|
%
|
1.77
|
%
|
1.77
|
%
|
1.76
|
%
|
||||||||||
|
After advisory fee waiver
|
1.69
|
%
|
1.71
|
%
|
1.72
|
%
|
1.70
|
%
|
1.70
|
%
|
||||||||||
|
Ratio of net investment income
|
||||||||||||||||||||
|
to average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
2.30
|
%
|
1.84
|
%
|
2.32
|
%
|
2.87
|
%
|
2.46
|
%
|
||||||||||
|
After advisory fee waiver
|
2.31
|
%
|
1.86
|
%
|
2.37
|
%
|
2.94
|
%
|
2.52
|
%
|
||||||||||
|
Portfolio turnover rate
|
50
|
%
|
80
|
%
|
100
|
%
|
77
|
%
|
61
|
%
|
||||||||||
|
(1)
|
Based on average shares outstanding.
|
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
93
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Class F
|
Year Ended September 30,
|
||||||||||||||||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
|
PER SHARE DATA:
|
||||||||||||||||||||
|
Net asset value, beginning of year
|
$
|
10.06
|
$
|
9.91
|
$
|
10.04
|
$
|
9.97
|
$
|
10.04
|
||||||||||
|
Income from investment operations:
|
||||||||||||||||||||
|
Net investment income
|
0.32
|
(1)
|
0.28
|
(1)
|
0.33
|
(1)
|
0.39
|
0.34
|
||||||||||||
|
Net realized and unrealized
|
||||||||||||||||||||
|
gain/(loss) on investments
|
(0.78
|
)
|
0.15
|
(0.13
|
)
|
0.07
|
(0.07
|
)
|
||||||||||||
|
Total from investment operations
|
(0.46
|
)
|
0.43
|
0.20
|
0.46
|
0.27
|
||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.32
|
)
|
(0.28
|
)
|
(0.33
|
)
|
(0.39
|
)
|
(0.34
|
)
|
||||||||||
|
Total distributions
|
(0.32
|
)
|
(0.28
|
)
|
(0.33
|
)
|
(0.39
|
)
|
(0.34
|
)
|
||||||||||
|
Redemption fees retained
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(2)
|
0.00
|
(2)
|
||||||||||
|
Net asset value, end of year
|
$
|
9.28
|
$
|
10.06
|
$
|
9.91
|
$
|
10.04
|
$
|
9.97
|
||||||||||
|
TOTAL RETURN
|
-4.79
|
%
|
4.49
|
%
|
2.09
|
%
|
4.68
|
%
|
2.81
|
%
|
||||||||||
|
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||||||||||||
|
Net assets, end of year (thousands)
|
$
|
682,182
|
$
|
671,520
|
$
|
446,802
|
$
|
289,716
|
$
|
211,941
|
||||||||||
|
Ratio of expenses to
|
||||||||||||||||||||
|
average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
0.74
|
%
|
0.76
|
%
|
0.79
|
%
|
0.80
|
%
|
0.79
|
%
|
||||||||||
|
After advisory fee waiver
|
0.73
|
%
|
0.74
|
%
|
0.74
|
%
|
0.73
|
%
|
0.73
|
%
|
||||||||||
|
Ratio of net investment income
|
||||||||||||||||||||
|
to average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
3.27
|
%
|
2.81
|
%
|
3.29
|
%
|
3.83
|
%
|
3.48
|
%
|
||||||||||
|
After advisory fee waiver
|
3.28
|
%
|
2.83
|
%
|
3.34
|
%
|
3.90
|
%
|
3.54
|
%
|
||||||||||
|
Portfolio turnover rate
|
50
|
%
|
80
|
%
|
100
|
%
|
77
|
%
|
61
|
%
|
||||||||||
|
(1)
|
Based on average shares outstanding.
|
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
94
SHENKMAN CAPITAL SHORT DURATION HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Institutional Class
|
Year Ended September 30,
|
||||||||||||||||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
|
PER SHARE DATA:
|
||||||||||||||||||||
|
Net asset value, beginning of year
|
$
|
10.07
|
$
|
9.92
|
$
|
10.05
|
$
|
9.98
|
$
|
10.05
|
||||||||||
|
Income from investment operations:
|
||||||||||||||||||||
|
Net investment income
|
0.33
|
(1)
|
0.29
|
(1)
|
0.34
|
(1)
|
0.40
|
0.36
|
||||||||||||
|
Net realized and unrealized
|
||||||||||||||||||||
|
gain/(loss) on investments
|
(0.79
|
)
|
0.15
|
(0.13
|
)
|
0.06
|
(0.08
|
)
|
||||||||||||
|
Total from investment operations
|
(0.46
|
)
|
0.44
|
0.21
|
0.46
|
0.28
|
||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.32
|
)
|
(0.29
|
)
|
(0.34
|
)
|
(0.39
|
)
|
(0.35
|
)
|
||||||||||
|
Total distributions
|
(0.32
|
)
|
(0.29
|
)
|
(0.34
|
)
|
(0.39
|
)
|
(0.35
|
)
|
||||||||||
|
Redemption fees retained
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(2)
|
0.00
|
(2)
|
||||||||||
|
Net asset value, end of year
|
$
|
9.29
|
$
|
10.07
|
$
|
9.92
|
$
|
10.05
|
$
|
9.98
|
||||||||||
|
TOTAL RETURN
|
-4.62
|
%
|
4.47
|
%
|
2.18
|
%
|
4.77
|
%
|
2.88
|
%
|
||||||||||
|
SUPPLEMENTAL DATA AND RATIOS:
|
||||||||||||||||||||
|
Net assets, end of year (thousands)
|
$
|
719,148
|
$
|
620,753
|
$
|
274,166
|
$
|
259,009
|
$
|
342,454
|
||||||||||
|
Ratio of expenses to
|
||||||||||||||||||||
|
average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
0.66
|
%
|
0.67
|
%
|
0.70
|
%
|
0.72
|
%
|
0.71
|
%
|
||||||||||
|
After advisory fee waiver
|
0.65
|
%
|
0.65
|
%
|
0.65
|
%
|
0.65
|
%
|
0.65
|
%
|
||||||||||
|
Ratio of net investment income
|
||||||||||||||||||||
|
to average net assets:
|
||||||||||||||||||||
|
Before advisory fee waiver
|
3.38
|
%
|
2.89
|
%
|
3.38
|
%
|
3.91
|
%
|
3.51
|
%
|
||||||||||
|
After advisory fee waiver
|
3.39
|
%
|
2.91
|
%
|
3.43
|
%
|
3.98
|
%
|
3.57
|
%
|
||||||||||
|
Portfolio turnover rate
|
50
|
%
|
80
|
%
|
100
|
%
|
77
|
%
|
61
|
%
|
||||||||||
|
(1)
|
Based on average shares outstanding.
|
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
95
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 2022
NOTE 1 – ORGANIZATION
The Shenkman Capital Short Duration High Income Fund (the “Short Duration High Income Fund”) and the Shenkman Capital Floating Rate High Income Fund (the “Floating Rate High Income
Fund”) (each a “Fund” and collectively, the “Funds”) are diversified series of Advisors Series Trust (the “Trust”), which is registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as an open-end management investment
company. The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies.”
The Short Duration High Income Fund commenced operations on October 31, 2012. The Floating Rate High Income Fund commenced operations on October 15, 2014. The primary investment
objective of the Funds is to seek a high level of current income. The Short Duration High Income Fund currently offers Class A, Class C, Class F, and Institutional Class shares. Class F shares became available for purchase on May 17, 2013, while
Class C shares became available for purchase on January 28, 2014.
The Floating Rate High Income Fund currently offers Class F and Institutional Class shares. Institutional Class shares became available for purchase on October 15, 2014 and Class F
shares became available for purchase on March 1, 2017.
Each class of shares differs principally in its respective distribution expenses, service fees and sales charges on Class A and contingent deferred sales charge (“CDSC”) for Class
C. Each class of shares has identical rights to earnings, assets and voting privileges, except for class-specific expenses and exclusive rights to vote on matters affecting only individual classes.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. These policies are in conformity
with accounting principles generally accepted in the United States of America.
Security Valuation – All investments in securities are recorded at their estimated fair value, as described in Note 3.
Federal Income Taxes – It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no Federal income or excise tax provision is required.
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The tax
returns of the Funds’ prior three fiscal years are
96
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
open for examination. Management has reviewed all open tax years in major jurisdictions and concluded that there is no impact on the Funds’ net assets and no tax liability resulting from unrecognized
tax events relating to uncertain income tax positions taken or expected to be taken on a tax return. The Funds identify their major tax jurisdictions as U.S. Federal and the state of Wisconsin. The Funds are not aware of any tax positions for which
it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Securities Transactions, Income, and Distributions – Securities transactions are accounted for on the trade date. Securities sold are
determined on a specific identification process. Interest income is recorded on an accrual basis. The Funds may receive other income, such as amendment fees, consent fees and commitment fees. These fees are recorded as income when the Funds become
aware of their existence and are included in consent and term loan fee income in the statements of operations. Discounts and premiums on securities purchased are accreted/amortized over the life of the respective security using the effective
interest method, except for premiums on certain callable debt securities that are amortized to the earliest call date. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the
fair value of the securities received. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the
applicable country’s tax rules and rates.
Each Fund distributes substantially all of its net investment income, if any, monthly, and net realized capital gains, if any, annually. The amount of dividends and distributions
to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which differ from accounting principles generally accepted in the United States of America. To the extent
these book/tax differences are permanent, such amounts are reclassified within the capital accounts based on their Federal tax treatment. Distributions from net realized gains for book purposes may include short-term capital gains. All short-term
capital gains are included in ordinary income for tax purposes.
Investment income, expenses (other than those specific to the class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of
a Fund based upon their relative net assets on the date income is earned or expensed and realized and unrealized gains and losses are incurred.
Each Fund is charged for those expenses that are directly attributable to that Fund, such as investment advisory, custody and transfer agent fees. Expenses that are not
attributable to a Fund are typically allocated among the Funds in proportion to their respective net assets. Common expenses of
97
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
the Trust are typically allocated among the funds in the Trust based on a fund’s respective net assets, or by other equitable means.
Securities Purchased on a When-Issued Basis – The Funds may purchase securities on a when-issued basis, for payment and delivery at a later
date, generally within one month. The price and yield are generally fixed on the date of commitment to purchase, and the value of the security is thereafter reflected in a Fund’s net asset value. During the period between purchase and settlement, no
payment is made by the Funds and no interest accrues to the Funds. At the time of settlement, the market value of the security may be more or less than the purchase price.
Redemption Fees – The Funds charge a 1% redemption fee to shareholders who redeem shares held for 30 days or less. Such fees are retained
by the Funds and accounted for as an addition to paid-in capital. Redemption fees retained are disclosed in the statements of changes.
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operation during the reporting period. Actual results could differ from those estimates.
Reclassification of Capital Accounts – Accounting principles generally accepted in the United States of America require that certain
components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. The Funds did not have any reclassification of
capital account adjustments for the year ended September 30, 2022.
Bridge Loan Commitments – In connection with floating rate loan interests, the Funds may also enter into bridge loan commitments. Bridge
loan commitments may obligate the Funds to furnish temporary financing to a borrower until permanent financing can be arranged. At September 30, 2022, the Funds did not have any outstanding bridge loan commitments.
Unfunded Loan Commitments – Unfunded loan commitments are contractual obligations for funding to a borrower. At September 30, 2022, the
Floating Rate High Income Fund and the Short Duration High Income Fund had $531,360 and $0, respectively, in outstanding unfunded loan commitments.
Events Subsequent to the Fiscal Year End – In preparing the financial statements as of September 30, 2022, management considered the impact
of subsequent events for the potential recognition or disclosure in these financial statements. Management has determined there were no subsequent events that would need to be disclosed in the Funds’ financial statements.
98
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
NOTE 3 – SECURITIES VALUATION
The Funds have adopted authoritative fair value accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value.
These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value, a discussion in changes in valuation techniques and related inputs during the period and expanded
disclosure of valuation levels for major security types. These inputs are summarized in the three broad levels listed below:
|
Level 1 –
|
Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.
|
|
|
Level 2 –
|
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the
identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
|
|
Level 3 –
|
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant
would use in valuing the asset or liability, and would be based on the best information available.
|
Following is a description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis.
Each Fund determines the fair value of its investments and computes its net asset value per share as of the close of regular trading on the New York Stock Exchange (4:00 pm EST).
Bank Loan Obligations – Bank loan obligations are valued at market on the basis of valuations furnished by an independent pricing service
which utilizes quotations obtained from dealers in bank loans. These securities will generally be classified in Level 2 of the fair value hierarchy.
Debt Securities – Debt securities, such as corporate bonds, asset-backed securities, mortgage-backed securities, municipal bonds, U.S.
Treasuries and U.S. government agency issues are valued at market on the basis of valuations furnished by an independent pricing service which utilizes both dealer-supplied valuations and formula-based techniques. The pricing service may consider
recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer. In addition, the model may incorporate market observable data
such as reported sales of
99
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. Debt securities having a maturity of 60 days or less are
valued at the evaluated mean between the bid and asked price. These securities will generally be classified in Level 2 of the fair value hierarchy.
Equity Securities – Equity securities that are primarily traded on a national securities exchange shall be valued at the last sale price on
the exchange on which they are primarily traded on the day of valuation or, if there has been no sale on such day, at the mean between the bid and asked prices. Securities primarily traded in the NASDAQ Global Market System for which market
quotations are readily available shall be valued using the NASDAQ Official Closing Price (“NOCP”). If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been no sale on such
day, at the mean between the bid and asked prices. Over-the-counter securities which are not traded in the NASDAQ Global Market System shall be valued at the most recent sales price. To the extent these securities are actively traded and valuation
adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.
Investment Companies – Investments in open-end mutual funds, including money market funds, are generally priced at their net asset value per
share provided by the service agent of the funds and will be classified in Level 1 of the fair value hierarchy.
Short-Term Securities – Short-term securities having a maturity of less than 60 days are valued at the evaluated mean between bid and asked
price. To the extent the inputs are observable and timely, these securities would be classified in Level 2 of the fair value hierarchy.
Restricted Securities – The Funds may invest in securities that are subject to legal or contractual restrictions on resale (“restricted
securities”). Restricted securities may be resold in transactions that are exempt from registration under the Federal securities laws. Private placement securities are generally considered to be restricted except for those securities traded between
qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. The sale or other disposition of these securities may involve additional expenses and the prompt sale of these securities at an acceptable price may be
difficult. At September 30, 2022, the Funds held securities issued pursuant to Rule 144A under the Securities Act of 1933. All Rule 144A securities have been classified as liquid under the Funds’ liquidity risk management program.
Accounting Pronouncement – In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) and in January 2021, FASB issued Accounting Standards Update 2021-01, Reference Rate Reform (Topic 848):
100
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
Scope (“ASU 2021-01”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the
London Interbank Offered Rate (“LIBOR”) and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04 and ASU 2021-01 is effective for certain reference rate-related contract modifications that occur during the
period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 and ASU 2021-01 on the Funds’ investments, debt securities and other contracts that will undergo reference rate-related modifications as a result
of the reference rate reform.
Rule 18f-4 Accounting Pronouncement – In October 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing
the use of derivatives by registered investment companies (“Rule 18f-4”). Funds were required to implement and comply with Rule 18f-4 by August 19, 2022. Rule 18f-4 imposes limits on the amount of derivatives a fund can enter into, eliminates the
asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treats derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and
maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager. The Funds' most recently filed statement of additional information allows the Funds to enter into derivative transactions. During the year ended
September 30, 2022, the Floating Rate High Income Fund held a limited number of bank loans with non-standard settlement dates. The Short Duration High Income Fund did not enter into derivatives transactions during the year ended September 30, 2022.
The Funds are considered limited derivative users. The Funds are in compliance with Rule 18f-4 at September 30, 2022.
In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for determining fair value in good
faith for purposes of the 1940 Act. Rule 2a-5 permits fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily
available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and rescinded previously issued guidance,
including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. The Funds are in compliance with Rule 2a-5, which had a compliance date of September 8, 2022.
Prior to the effectiveness of Rule 2a-5 on September 8, 2022, the Board of Trustees (“Board”) had delegated day-to-day valuation issues to a Valuation Committee of the Trust which
was comprised of representatives from the Funds’ administrator, U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”). The function of the
101
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
Valuation Committee was to value securities where current and reliable market quotations were not readily available, or the closing price did not represent fair value by following procedures approved by
the Board. These procedures considered many factors, including the type of security, size of holding, trading volume and news events. All actions taken by the Valuation Committee were subsequently reviewed and ratified by the Board. The Valuation
Committee served through September 7, 2022. Effective September 8, 2022, the Board approved Shenkman Capital Management, Inc. (the “Advisor”), as the Funds' valuation designee under Rule 2a-5.
Depending on the relative significance of the valuation inputs, fair valued securities may be classified in either Level 2 or Level 3 of the fair value hierarchy.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Funds’ securities as of September 30, 2022:
Floating Rate High Income Fund
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Fixed Income
|
||||||||||||||||
|
Bank Loan
|
||||||||||||||||
|
Obligations
|
$
|
—
|
$
|
256,271,414
|
$
|
—
|
$
|
256,271,414
|
||||||||
|
Corporate Bonds
|
—
|
34,486,460
|
—
|
34,486,460
|
||||||||||||
|
Total Fixed Income
|
—
|
290,757,874
|
—
|
290,757,874
|
||||||||||||
|
Equities
|
||||||||||||||||
|
Electric Power
|
||||||||||||||||
|
Generation
|
—
|
12
|
—
|
12
|
||||||||||||
|
Total Equities
|
—
|
12
|
—
|
12
|
||||||||||||
|
Warrants
|
—
|
12,924
|
—
|
12,924
|
||||||||||||
|
Money Market Fund
|
7,604,661
|
—
|
—
|
7,604,661
|
||||||||||||
|
Total Investments
|
$
|
7,604,661
|
$
|
290,770,810
|
$
|
—
|
$
|
298,375,471
|
||||||||
|
Short Duration High Income Fund
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Fixed Income
|
||||||||||||||||
|
Corporate Bonds
|
$
|
—
|
$
|
1,282,094,667
|
$
|
—
|
$
|
1,282,094,667
|
||||||||
|
Bank Loan
|
||||||||||||||||
|
Obligations
|
—
|
72,789,285
|
—
|
72,789,285
|
||||||||||||
|
Convertible Bond
|
—
|
10,542,543
|
—
|
10,542,543
|
||||||||||||
|
Total Fixed Income
|
—
|
1,365,426,495
|
—
|
1,365,426,495
|
||||||||||||
|
Money Market Fund
|
55,182,940
|
—
|
—
|
55,182,940
|
||||||||||||
|
Total Investments
|
$
|
55,182,940
|
$
|
1,365,426,495
|
$
|
—
|
$
|
1,420,609,435
|
||||||||
Refer to the Funds’ schedules of investments for a detailed break-out of securities.
102
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
The following is a reconciliation of the Floating Rate High Income Fund’s Level 3 investments for which significant unobservable inputs were used in determining fair value. The
Funds did not hold Level 3 investments at September 30, 2022.
Shenkman Capital Floating Rate High Income Fund
Level 3 Reconciliation Disclosure
|
Equities
|
||||
|
Balance as of September 30, 2021
|
$
|
1,048
|
||
|
Change in unrealized appreciation/(depreciation)
|
(1,036
|
)
|
||
|
Transfer out at September 30, 2022
|
(12
|
)
|
||
|
Balance as of September 30, 2022
|
$
|
—
|
||
|
Change in unrealized appreciation/(depreciation) during the
|
||||
|
period for Level 3 investments held at September 30, 2022
|
$
|
—
|
||
The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. Although vaccines for COVID-19
are becoming more widely available, the ultimate economic fallout from the pandemic, amid the spread of COVID-19 variants, and the long-term impact on economies, markets, industries and individual companies are not known. The operational and
financial performance of individual companies and the market in general depends on future developments, including the duration and spread of any future outbreaks and the pace of recovery which may vary from market to market, and such uncertainty may
in turn adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.
NOTE 4 – INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Funds have an investment advisory agreement with the Advisor pursuant to which the Advisor is responsible for providing investment management services to each Fund. The Advisor
furnishes all investment advice, office space and facilities, and provides most of the personnel needed by the Funds. As compensation for its services, the Advisor is entitled to a fee, computed daily and payable monthly, based upon the average
daily net assets of the Funds at the annual rates of:
|
Floating Rate High Income Fund
|
0.50%
|
|
|
Short Duration High Income Fund
|
0.55%
|
103
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
For the year ended September 30, 2022, the Floating Rate High Income Fund and the Short Duration High Income Fund incurred $1,517,103 and $7,786,592, respectively, in advisory fees.
Advisory fees payable to the Advisor at September 30, 2022 for the Floating Rate High Income Fund and the Short Duration High Income Fund were $104,250 and $657,307, respectively. The amounts shown on the statements of assets and liabilities are net
amounts due to the Advisor.
Each Fund is responsible for its own operating expenses, including Rule 12b-1 fees, shareholder servicing plan fees, custodian fees, taxes, transfer agency fees, interest and other
customary Fund expenses. However, the Advisor has contractually agreed to waive all or a portion of its management fees and pay Floating Rate High Income Fund and Short Duration High Income Fund expenses in order to limit each Fund’s total annual
operating expenses (excluding acquired fund fees and expenses, taxes, interest expense, dividends on securities sold short, extraordinary expenses, Rule 12b-1 fees, shareholder servicing fees and any other class-specific expenses) to the following
amounts of the average daily net assets:
|
Floating Rate High Income Fund:
|
0.54%
|
|
|
Short Duration High Income Fund:
|
0.65%
|
Any such reduction made by the Advisor in its fees or payment of expenses which are the Funds’ obligation are subject to reimbursement by the Funds to the Advisor, if so requested
by the Advisor, in any subsequent month in the 36-month period from the date of the management fee reduction and expense payment if the aggregate amount actually paid by the Funds toward the operating expenses for such fiscal year (taking into
account the reimbursement) will not cause a Fund to exceed the lesser of: (1) the expense limitation in place at the time of the management fee reduction and expense payment; or (2) the expense limitation in place at the time of the reimbursement.
Any such reimbursement is also contingent upon Board review and approval at the time the reimbursement is made. Such reimbursement may not be paid prior to the Funds’ payment of current ordinary operating expenses. For the year ended September 30,
2022, the Advisor reduced its fees in the amount of $524,312 for the Floating Rate High Income Fund and in the amount of $62,257 for the Short Duration High Income Fund. No amounts were reimbursed to the Advisor for either Fund. The Advisor may
recapture portions of the amounts shown below no later than the corresponding dates:
|
9/30/2023
|
9/30/2024
|
9/30/2025
|
Total
|
|||||||||||||
|
Floating Rate High
|
||||||||||||||||
|
Income Fund
|
$
|
499,945
|
$
|
595,808
|
$
|
524,312
|
$
|
1,620,065
|
||||||||
|
Short Duration High
|
||||||||||||||||
|
Income Fund
|
318,992
|
167,019
|
62,257
|
548,268
|
||||||||||||
104
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
Fund Services serves as the Funds’ administrator, fund accountant and transfer agent. U.S. Bank N.A. serves as custodian (the “Custodian”) to the Funds. The Custodian is an
affiliate of Fund Services. Fund Services maintains the Funds’ books and records, calculates the Funds’ NAV, prepares various federal and state regulatory filings, coordinates the payment of fund expenses, reviews expense accruals and prepares
materials supplied to the Board. The officers of the Trust, including the Chief Compliance Officer, are employees of Fund Services. Fees paid by the Funds for administration and accounting, transfer agency, custody and compliance services for the
year ended September 30, 2022, are disclosed in the statements of operations.
Quasar Distributors, LLC (“Quasar”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. Quasar is a wholly-owned broker-dealer subsidiary
of Foreside Financial Group, LLC (“Foreside”).
NOTE 5 – DISTRIBUTION AGREEMENT AND PLAN
The Short Duration High Income Fund adopted a Distribution Plan pursuant to Rule 12b-1 (the “Plan”). The Plan permits the Short Duration High Income Fund to pay for distribution
and related expenses at an annual rate of up to 0.25% of the average daily net assets of the Short Duration High Income Fund’s Class A shares and up to 1.00% of the average daily net assets of the Short Duration High Income Fund’s Class C shares.
The expenses covered by the Plan may include the cost in connection with the promotion and distribution of shares and the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to
underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, and the printing and mailing of sales literature. Payments made pursuant to the Plan will represent compensation for
distribution and service activities, not reimbursements for specific expenses incurred. For the year ended September 30, 2022, the Short Duration High Income Fund incurred distribution expenses on its Class A and Class C shares of $54,894 and
$169,765, respectively.
NOTE 6 – SHAREHOLDER SERVICING FEE
The Funds entered into a shareholder servicing agreement (the “Agreement”) with the Advisor, under which the Advisor will provide, or arrange for others to provide, certain
specified shareholder services. As compensation for the provision of shareholder services, the Funds may pay servicing fees at an annual rate of up to 0.10% of the average daily net assets of the Class A, Class C, and Class F shares. Payments to the
Advisor under the Agreement may reimburse the Advisor for payments it makes to selected brokers, dealers and administrators which have entered into service
105
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
agreements with the Advisor for services provided to shareholders of the Funds. The services provided by such intermediaries are primarily designed to assist shareholders of each Fund and include the
furnishing of office space and equipment, telephone facilities, personnel, and assistance to the Funds in servicing such shareholders. Services provided by such intermediaries also include the provision of support services to the Funds and include
establishing and maintaining shareholders’ accounts and record processing, purchase and redemption transactions, answering routine client inquiries regarding the Funds, and providing such other personal services to shareholders as the Funds may
reasonably request. For the year ended September 30, 2022, the Floating Rate High Income Fund’s Class F shares incurred $195 in shareholder servicing fees. For the year ended September 30, 2022, the Class A, Class C and Class F shares of the Short
Duration High Income Fund incurred $11,299, $6,794 and $551,503, respectively, in shareholder servicing fees.
NOTE 7 – PURCHASES AND SALES OF SECURITIES
For the year ended September 30, 2022, the cost of purchases and the proceeds from sales of securities (excluding short-term securities) were as follows:
|
Purchases
|
Sales
|
|||||||
|
Floating Rate High Income Fund
|
$
|
144,987,599
|
$
|
114,147,744
|
||||
|
Short Duration High Income Fund
|
905,550,790
|
684,139,787
|
||||||
The Funds had no purchases or sales of U.S. government obligations during the year ended September 30, 2022. The Floating Rate High Income Fund and the Short Duration High Income
Fund had $0 and $21,522,845, respectively, in Rule 17a-7 purchase transactions during the year ended September 30, 2022. Neither Fund had any Rule 17a-7 sales transactions during the year ended September 30, 2022. As such, neither Fund had any
realized gain nor loss associated with 17a-7 transactions during the year ended September 30, 2022.
NOTE 8 – LINES OF CREDIT
The Floating Rate High Income Fund and the Short Duration High Income Fund have secured lines of credit in the amount of $40,000,000 and $120,000,000, respectively. These lines of
credit are intended to provide short-term financing, if necessary, subject to certain restrictions, in connection with shareholder redemptions. The credit facility is with the Funds’ custodian, U.S. Bank N.A. The Floating Rate High Income Fund and
the Short Duration High Income Fund did not draw upon their lines of credit during the year ended September 30, 2022. At September 30, 2022, neither of the Funds had any outstanding loan amounts.
106
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
NOTE 9 – INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
As of September 30, 2022, the components of accumulated earnings/(losses) on a tax basis were as follows:
|
Floating Rate
|
Short Duration
|
|||||||
|
High Income Fund
|
High Income Fund
|
|||||||
|
Cost of investments(a)
|
$
|
318,305,724
|
$
|
1,518,447,469
|
||||
|
Gross unrealized appreciation
|
476,003
|
302,586
|
||||||
|
Gross unrealized depreciation
|
(20,406,256
|
)
|
(98,140,620
|
)
|
||||
|
Net unrealized depreciation(a)
|
(19,930,253
|
)
|
(97,838,034
|
)
|
||||
|
Undistributed ordinary income
|
284,537
|
1,912,103
|
||||||
|
Total distributable earnings
|
284,537
|
1,912,103
|
||||||
|
Other accumulated losses
|
(15,878,561
|
)
|
(21,605,710
|
)
|
||||
|
Total accumulated earnings/(losses)
|
$
|
(35,524,277
|
)
|
$
|
(117,531,641
|
)
|
||
|
(a)
|
Any differences between book basis and tax basis net unrealized appreciation and cost are attributable primarily to the tax deferral of losses on wash sales and partnership adjustments.
|
At September 30, 2022, the Funds had tax basis capital losses to offset future gains as follows:
|
Capital Loss Carryover
|
||||||||||||||
|
Long-Term
|
Short-Term
|
Total
|
Expiration Date
|
|||||||||||
|
Floating Rate
|
||||||||||||||
|
High Income
|
||||||||||||||
|
Fund
|
$
|
14,066,349
|
$
|
1,552,015
|
$
|
15,618,364
|
No Expiration
|
|||||||
|
Short Duration
|
||||||||||||||
|
High Income
|
||||||||||||||
|
Fund
|
5,809,854
|
14,055,335
|
19,865,189
|
No Expiration
|
||||||||||
The tax character of distributions paid during the year ended September 30, 2022 and the year ended September 30, 2021 was as follows:
Floating Rate High Income Fund
|
Year Ended
|
Year Ended
|
|||||||
|
September 30, 2022
|
September 30, 2021
|
|||||||
|
Ordinary income
|
$
|
12,148,261
|
$
|
8,843,108
|
||||
|
Total distributions paid
|
$
|
12,148,261
|
$
|
8,843,108
|
||||
Short Duration High Income Fund
|
Year Ended
|
Year Ended
|
|||||||
|
September 30, 2022
|
September 30, 2021
|
|||||||
|
Ordinary income
|
$
|
46,842,050
|
$
|
30,592,320
|
||||
|
Total distributions paid
|
$
|
46,842,050
|
$
|
30,592,320
|
||||
107
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
The Funds designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds
related to net capital gain to zero for the tax year ended September 30, 2022.
NOTE 10 – CONTROL OWNERSHIP
The beneficial ownership, either directly or indirectly of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of
the 1940 Act. As of September 30, 2022, each Fund’s percentage of control ownership positions greater than 25% are as follows:
|
Percent of
|
||
|
Fund
|
Shareholder
|
Shares Held
|
|
Floating Rate High
|
||
|
Income Fund
|
National Financial Services, LLC
|
38.51%
|
|
Short Duration High
|
||
|
Income Fund
|
Merrill Lynch Pierce Fenner & Smith
|
30.17%
|
NOTE 11 – PRINCIPAL RISKS
Below is a summary of some, but not all, of the principal risk of investing in the Funds, each of which may adversely affect a Fund’s net asset value and total return. The Funds’
most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks. The following risks apply to both Funds.
Bank Loan Risk. A Fund’s investments in assignments of secured and unsecured bank loans may create substantial risk. In making investments
in such loans, which are made by banks or other financial intermediaries to borrowers, a Fund will depend primarily upon the creditworthiness of the borrower, whose financial condition may be troubled or highly leveraged, for payment of principal and
interest. If a Fund does not receive scheduled interest or principal payments on such indebtedness, such Fund’s share price could be adversely affected. A Fund may invest in loans that are rated by a nationally recognized statistical rating
organization or are unrated, and may invest in loans of any credit quality, including “distressed” companies with respect to which there is a substantial risk of losing the entire amount invested. In addition, certain bank loans in which a Fund may
invest may be illiquid and, therefore, difficult to value and/or sell at a price that is beneficial to the Fund. A Fund, as a participant in a loan, has no direct claim on the loan and would be a creditor of the lender, and not the borrower, in the
event of a borrower’s insolvency or default. Transactions in many loans settle on a delayed basis, and a Fund may not receive the proceeds from the sale of a loan for a substantial period after the sale (i.e., more than seven days after the sale). As
a result, sale proceeds related to the sale of loans may not be available to make additional investments or to meet a Fund’s redemption obligations until potentially a substantial period after the sale of
108
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
the loans. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in
registered securities.
LIBOR Risk. The Funds invest in certain debt securities, derivatives or other financial instruments that utilize the London Inter-bank
Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for variable interest rate calculations. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. On
November 30, 2020, the administrator of LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications to still end at the end of 2021. Although financial
regulators and industry working groups have suggested alternative reference rates, global consensus is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. Uncertainty and risk also
remain regarding the willingness and ability of issuers and lenders to include enhanced provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR may lead to increased volatility and illiquidity in markets
that are tied to LIBOR, decreased values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting a Fund’s
performance or net asset value. Uncertainty and volatility arising from the transition may result in a reduction in the value of certain LIBOR-based instruments held by a Fund or reduce the effectiveness of related transactions. Any such effects of
the transition away from LIBOR, as well as other unforeseen effects, could result in losses to a Fund and may adversely affect a Fund’s performance or net asset value.
Credit Risk. A company may not be able to repay its debt. The Funds invest primarily in “high yield” securities and loans (i.e., rated below
Baa3 or BBB- by one or more nationally recognized statistical rating organizations or are unrated but are of comparable credit quality to obligations rated below investment-grade). High yield securities and loans have greater credit risk than more
highly rated debt obligations and have a greater possibility that an adverse change in the financial condition of the issuer or the economy may impair the ability of the issuer to make payments of principal and interest. Bankruptcy and similar laws
applicable to issuers of the high yield securities and loans may also limit the amount of a Fund’s recovery if the issuer becomes insolvent. High yield securities and loans have historically experienced greater default rates than has been the case
for investment-grade securities.
Derivatives Risk. The Funds may invest in derivative securities for bona fide hedging purposes. A derivative security is a financial
contract whose value is based on (or “derived from”) a traditional security (such as a bond) or
109
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
a market index. Derivatives involve the risk of improper valuation, the risk of ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the
underlying security.
High Yield Risk. Bonds and loans rated below BBB by S&P or Baa by Moody’s (commonly referred to as “junk bonds or loans”) typically
carry higher coupon rates than investment grade bonds, but also are described as speculative by both S&P and Moody’s and may be subject to greater market price fluctuations, less liquidity and greater risk of income or principal including greater
possibility of default and bankruptcy of the issuer of such instruments than more highly rated bonds and loans. Lower-rated bonds and loans also are more likely to be sensitive to adverse economic or company developments and more subject to price
fluctuations in response to changes in interest rates. The market for lower-rated debt issues generally is thinner and less active than that for higher quality instruments, which may limit a Fund’s ability to sell such instruments at fair value in
response to changes in the economy or financial markets. During periods of economic downturn or rising interest rates, highly leveraged issuers of lower-rated instruments may experience financial stress which could adversely affect their ability to
make payments of interest and principal and increase the possibility of default.
Interest Rate Risk. Each Fund’s investments in fixed-income instruments will change in value based on changes in interest rates. When
interest rates decline, the value of a portfolio invested in fixed-rate obligations can be expected to rise. Conversely, when interest rates rise, the value of a portfolio investment in fixed-rate obligations can be expected to decline. Although the
value of each Fund’s investments will vary, the fluctuations in value of a Fund’s investments in floating rate instruments should be minimized as a result of changes in market interest rates. However, because floating rates on loans and other
instruments only reset periodically, changes in prevailing interest rates can still be expected to cause some fluctuation in the value of a Fund. Similarly, it is likely there will be less governmental action in the near future to maintain low
interest rates. The negative impact on fixed income securities from the resulting rate increases for that and other reasons could be swift and significant, which could cause a decline in the value of a Fund’s portfolio. Other economic factors (such
as large downward movement in stock prices, a disparity in supply and demand of certain securities or market conditions that reduce liquidity) can also adversely impact the markets for loans and other debt obligations. Rating downgrades of holdings
or their issuers will generally reduce the value of such holdings. Consequently, changes in the values of a Fund’s portfolio likely will cause fluctuation in the value of each partner’s capital account.
Investment Risk. Neither Fund is a complete investment program and you may lose money by investing in the Funds. Each Fund invests primarily
in debt obligations issued by non-investment grade companies that may have
110
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
significant risks as a result of business, financial, market or legal uncertainties. There can be no assurance that the Advisor will correctly evaluate the nature and magnitude of the various factors
that could affect the value of, and return on, a Fund’s investments. Prices of the investments held by the Funds may be volatile, and a variety of other factors that are inherently difficult to predict, such as domestic or international economic and
political developments, may significantly affect the results of a Fund’s activities and the value of its investments.
Liquidity Risk. Low or lack of trading volume may make it difficult to sell securities held by the Funds at quoted market prices. The
Funds’ investments may at any time consist of significant amounts of securities that are thinly traded or for which no market exists. For example, the investments held by a Fund may not be liquid in all circumstances so that, in volatile markets, the
Advisor may not be able to close out a position without incurring a loss. The foregoing risks may be accentuated when the Funds are required to liquidate positions to meet withdrawal requests. Additionally, floating rate loans generally are subject
to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when the Funds need to liquidate such loans. High yield bonds and loans generally trade only in the over-the-counter market rather than on an
organized exchange and may be more difficult to purchase or sell at a fair price, which could have a negative impact on a Fund’s performance.
Market and Regulatory Risk. Events in the financial markets and economy may cause volatility and uncertainty and adversely impact the Funds’
performance. Market events may affect a single issuer, industry, sector, or the market as a whole. Traditionally liquid investments may experience periods of diminished liquidity. Governmental and regulatory actions, including tax law changes, may
also impair portfolio management and have unexpected or adverse consequences on particular markets, strategies, or investments. The Funds’ investments may decline in value due to factors affecting individual issuers (such as the results of supply and
demand), or sectors within the securities markets. The value of a security or other investment also may go up or down due to general market conditions that are not specifically related to a particular issuer, such as real or perceived adverse
economic conditions, changes in interest rates or exchange rates, or adverse investor sentiment generally. In addition, unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters;
financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in
ways that cannot necessarily be foreseen.
111
SHENKMAN CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2022
Rule 144A Securities Risk. The market for Rule 144A securities typically is less active than the market for publicly-traded securities.
Rule 144A securities carry the risk that the liquidity of these securities may become impaired, making it more difficult for the Funds to sell these bonds.
Counterparty Risk. Counterparty risk arises upon entering into borrowing arrangements and is the risk from the potential inability of
counterparties to meet the terms of their contracts.
Convertible Bond Risk. Convertible bonds are hybrid securities that have characteristics of both bonds and common stocks and are therefore
subject to both debt security risks and equity risk. Convertible bonds are subject to equity risk especially when their conversion value is greater than the interest and principal value of the bond. The prices of equity securities may rise or fall
because of economic or political changes and may decline over short or extended periods of time.
NOTE 12 – TRUSTEES AND OFFICERS
Mr. Joe Redwine became the Audit Chairman of the Board effective January 1, 2022. Ms. Michelle Sanville-Seebold resigned as Deputy Chief Compliance Officer effective May 27, 2022.
112
SHENKMAN CAPITAL FUNDS
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Trustees
Advisors Series Trust and Shareholders of:
Shenkman Capital Floating Rate High Income Fund
Shenkman Capital Short Duration High Income Fund
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the Shenkman Capital Floating Rate High Income Fund and the Shenkman Capital Short Duration High Income Fund (the “Funds”), each
a series of Advisors Series Trust (the “Trust”), including the schedules of investments, as of September 30, 2022, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the
period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material
respects, the financial position of the Funds as of September 30, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for
the periods indicated above, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting
firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 2003.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements
are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. As part of our audits we are required to obtain
an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2022 by correspondence with the custodian, transfer agents, brokers or by other appropriate auditing
procedures where replies were not received. We believe that our audits provide a reasonable basis for our opinion.
|
TAIT, WELLER & BAKER LLP
|
Philadelphia, Pennsylvania
November 29, 2022
113
SHENKMAN CAPITAL FUNDS
INFORMATION ABOUT TRUSTEES AND OFFICERS
(Unaudited)
This chart provides information about the Trustees and Officers who oversee the Funds. Officers elected by the Trustees manage the day-to-day operations of the Funds and execute
policies formulated by the Trustees.
Independent Trustees(1)
|
Number
|
|||||
|
of
|
|||||
|
Term of
|
Portfolios
|
||||
|
Office
|
in Fund
|
Other
|
|||
|
Position
|
and
|
Principal
|
Complex
|
Directorships
|
|
|
Held
|
Length
|
Occupation
|
Overseen
|
Held
|
|
|
Name, Address
|
with the
|
of Time
|
During Past
|
by
|
During Past
|
|
and Age
|
Trust
|
Served*
|
Five Years
|
Trustee(2)
|
Five Years(3)
|
|
David G. Mertens
|
Trustee
|
Indefinite
|
Partner and
|
2
|
Trustee,
|
|
(age 62)
|
term;
|
Head of
|
Advisors
|
||
|
615 E. Michigan St.
|
since
|
Business
|
Series Trust
|
||
|
Milwaukee, WI
|
March
|
Development
|
(for series not
|
||
|
53202
|
2017.
|
Ballast Equity
|
affiliated with
|
||
|
Management,
|
the Funds).
|
||||
|
LLC (a privately-
|
|||||
|
held investment
|
|||||
|
advisory firm)
|
|||||
|
(February 2019
|
|||||
|
to present);
|
|||||
|
Managing
|
|||||
|
Director and
|
|||||
|
Vice President,
|
|||||
|
Jensen
|
|||||
|
Investment
|
|||||
|
Management, Inc.
|
|||||
|
(a privately-held
|
|||||
|
investment
|
|||||
|
advisory firm)
|
|||||
|
(2002 to 2017).
|
|||||
|
Joe D. Redwine
|
Trustee
|
Indefinite
|
Retired;
|
2
|
Trustee,
|
|
(age 75)
|
term;
|
formerly
|
Advisors
|
||
|
615 E. Michigan St.
|
since
|
Manager,
|
Series Trust
|
||
|
Milwaukee, WI
|
September
|
President, CEO,
|
(for series not
|
||
|
53202
|
2008.
|
U.S. Bancorp
|
affiliated with
|
||
|
Fund Services,
|
the Funds).
|
||||
|
LLC and its
|
|||||
|
predecessors
|
|||||
|
(May 1991 to
|
|||||
|
July 2017).
|
114
SHENKMAN CAPITAL FUNDS
INFORMATION ABOUT TRUSTEES AND OFFICERS – Continued
(Unaudited)
|
Number
|
|||||
|
of
|
|||||
|
Term of
|
Portfolios
|
||||
|
Office
|
in Fund
|
Other
|
|||
|
Position
|
and
|
Principal
|
Complex
|
Directorships
|
|
|
Held
|
Length
|
Occupation
|
Overseen
|
Held
|
|
|
Name, Address
|
with the
|
of Time
|
During Past
|
by
|
During Past
|
|
and Age
|
Trust
|
Served*
|
Five Years
|
Trustee(2)
|
Five Years(3)
|
|
Raymond B. Woolson
|
Chairman
|
Indefinite
|
President,
|
2
|
Trustee,
|
|
(age 63)
|
of the
|
term;
|
Apogee Group,
|
Advisors
|
|
|
615 E. Michigan St.
|
Board
|
since
|
Inc. (financial
|
Series Trust
|
|
|
Milwaukee, WI
|
January
|
consulting firm)
|
(for series not
|
||
|
53202
|
2020.
|
(1998 to
|
affiliated with
|
||
|
Trustee
|
Indefinite
|
present).
|
the Funds);
|
||
|
term;
|
Independent
|
||||
|
since
|
Trustee,
|
||||
|
January
|
DoubleLine
|
||||
|
2016.
|
Funds Trust
|
||||
|
(an open-end
|
|||||
|
investment
|
|||||
|
company with
|
|||||
|
20 portfolios),
|
|||||
|
DoubleLine
|
|||||
|
Opportunistic
|
|||||
|
Credit Fund,
|
|||||
|
DoubleLine
|
|||||
|
Selective
|
|||||
|
Credit Fund
|
|||||
|
and
|
|||||
|
DoubleLine
|
|||||
|
Income
|
|||||
|
Solutions
|
|||||
|
Fund, from
|
|||||
|
2010 to
|
|||||
|
present.
|
115
SHENKMAN CAPITAL FUNDS
INFORMATION ABOUT TRUSTEES AND OFFICERS – Continued
(Unaudited)
Officers
|
Term of
|
|||
|
Office
|
|||
|
Position
|
and
|
||
|
Held
|
Length
|
||
|
Name, Address
|
with the
|
of Time
|
Principal Occupation
|
|
and Age
|
Trust
|
Served
|
During Past Five Years
|
|
Jeffrey T. Rauman
|
President,
|
Indefinite
|
Senior Vice President, Compliance and
|
|
(age 53)
|
Chief
|
term;
|
Administration, U.S. Bank Global Fund
|
|
615 E. Michigan St.
|
Executive
|
since
|
Services (February 1996 to present).
|
|
Milwaukee, WI
|
Officer
|
December
|
|
|
53202
|
and
|
2018.
|
|
|
Principal
|
|||
|
Executive
|
|||
|
Officer
|
|||
|
Cheryl L. King
|
Vice
|
Indefinite
|
Vice President, Compliance and
|
|
(age 61)
|
President,
|
term;
|
Administration, U.S. Bank Global Fund
|
|
615 E. Michigan St.
|
Treasurer
|
since
|
Services (October 1998 to present).
|
|
Milwaukee, WI
|
and
|
December
|
|
|
53202
|
Principal
|
2007.
|
|
|
Financial
|
|||
|
Officer
|
|||
|
Kevin J. Hayden
|
Assistant
|
Indefinite
|
Vice President, Compliance and
|
|
(age 51)
|
Treasurer
|
term;
|
Administration, U.S. Bank Global Fund
|
|
615 E. Michigan St.
|
since
|
Services (June 2005 to present).
|
|
|
Milwaukee, WI
|
September
|
||
|
53202
|
2013.
|
||
|
Richard R. Conner
|
Assistant
|
Indefinite
|
Assistant Vice President, Compliance
|
|
(age 40)
|
Treasurer
|
term;
|
and Administration, U.S. Bank Global
|
|
615 E. Michigan St.
|
since
|
Fund Services (July 2010 to present).
|
|
|
Milwaukee, WI
|
December
|
||
|
53202
|
2018.
|
||
|
Michael L. Ceccato
|
Vice
|
Indefinite
|
Senior Vice President, U.S. Bank Global
|
|
(age 65)
|
President,
|
term;
|
Fund Services and Vice President, U.S.
|
|
615 E. Michigan St.
|
Chief
|
since
|
Bank N.A. (February 2008 to present).
|
|
Milwaukee, WI
|
Compliance
|
September
|
|
|
53202
|
Officer and
|
2009.
|
|
|
AML Officer
|
116
SHENKMAN CAPITAL FUNDS
INFORMATION ABOUT TRUSTEES AND OFFICERS – Continued
(Unaudited)
|
Term of
|
|||
|
Office
|
|||
|
Position
|
and
|
||
|
Held
|
Length
|
||
|
Name, Address
|
with the
|
of Time
|
Principal Occupation
|
|
and Age
|
Trust
|
Served
|
During Past Five Years
|
|
Elaine E.
|
Vice
|
Indefinite
|
Senior Vice President, U.S. Bank Global
|
|
Richards, Esq.
|
President
|
term;
|
Fund Services (July 2007 to present).
|
|
(age 54)
|
and
|
since
|
|
|
2020 East
|
Secretary
|
September
|
|
|
Financial Way,
|
2019.
|
||
|
Suite 100
|
|||
|
Glendora, CA
|
|||
|
91741
|
|||
|
Ryan Charles
|
Assistant
|
Indefinite
|
Assistant Vice President, U.S. Bank
|
|
(age 44)
|
Secretary
|
term;
|
Global Fund Services (May 2021 to
|
|
2020 East
|
since
|
present); Chief Legal Officer and
|
|
|
Financial Way,
|
January
|
Secretary Davis Selected Advisers, L.P.
|
|
|
Suite 100
|
2022.
|
(2004 to 2021).
|
|
|
Glendora, CA
|
|||
|
91741
|
|
*
|
The Trustees have designated a mandatory retirement age of 75, such that each Trustee, serving as such on the date he or she reaches the age of 75, shall submit his or her resignation not later
than the last day of the calendar year in which his or her 75th birthday occurs (“Retiring Trustee”). Upon request, the Board may, by vote of a majority of Trustees eligible to vote on such matter, determine whether or not to extend such
Retiring Trustee’s term and on the length of a one-time extension of up to three additional years.
|
|
(1)
|
The Trustees of the Trust who are not “interested persons” of the Trust as defined under the 1940 Act (“Independent Trustees”).
|
|
(2)
|
As of September 30, 2022, the Trust was comprised of 34 active portfolios managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Funds. The Funds do not hold
themselves out as related to any other series within the Trust for investment purposes, nor do they share the same investment adviser with any other series.
|
|
(3)
|
“Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the Securities Exchange Act of 1934, as amended, (that is, “public
companies”) or other investment companies registered under the 1940 Act.
|
The Funds’ Statement of Additional Information includes additional information about the Funds’ Trustees and Officers and is available, without charge, upon request by calling
1-855-743-6562 or by visiting the Funds’ website at www.shenkmancapital.com.
117
SHENKMAN CAPITAL FUNDS
NOTICE TO SHAREHOLDERS
September 30, 2022 (Unaudited)
Federal Tax Distribution Information
For the year ended September 30, 2022, the Floating Rate High Income Fund and the Short Duration High Income Fund designated $12,148,261 and $46,842,050, respectively, as ordinary
income for purposes of the dividends paid deduction.
For the fiscal year ended September 30, 2022, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief
Reconciliation Act of 2003. The percentage of dividends declared from ordinary income designated as qualified dividend income was as follows:
|
Shenkman Capital Floating Rate High Income Fund
|
0.00%
|
||
|
Shenkman Capital Short Duration High Income Fund
|
0.00%
|
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended September 30, 2022 was
as follows:
|
Shenkman Capital Floating Rate High Income Fund
|
0.00%
|
||
|
Shenkman Capital Short Duration High Income Fund
|
0.00%
|
How to Obtain a Copy of the Funds’ Proxy Voting Policies
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by
calling 1-855-SHENKMAN (1-855-743-6562) or on the U.S. Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
How to Obtain a Copy of the Funds’ Proxy Voting Records for the 12-Month Period Ended June 30
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by
calling 1-855-SHENKMAN (1-855-743-6562). Furthermore, you can obtain the Funds’ proxy voting records on the SEC’s website at http://www.sec.gov.
Quarterly Filings on Form N-PORT
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. The Funds’ Form N-PORT is
available on the SEC’s website at http://www.sec.gov. Information included in the Funds’ Form N-PORT is also available, upon request, by calling 1-855-SHENKMAN (1-855-743-6562).
118
SHENKMAN CAPITAL FUNDS
NOTICE TO SHAREHOLDERS – Continued
September 30, 2022 (Unaudited)
Householding
In an effort to decrease costs, the Funds will reduce the number of duplicate prospectuses, supplements, and certain other shareholder documents that you receive by sending only one
copy of each to those addresses shown by two or more accounts. Please call the Funds’ transfer agent toll free at 1-855-SHENKMAN (1-855-743-6562) to request individual copies of these documents. The Funds will begin sending individual copies 30 days
after receiving your request. This policy does not apply to account statements.
119
SHENKMAN CAPITAL FUNDS
PRIVACY NOTICE
The Funds collect non-public information about you from the following sources:
• Information
we receive about you on applications or other forms;
• Information
you give us orally; and/or
• Information
about your transactions with us or others.
We do not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response to
inquiries from governmental authorities. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Funds. We will provide unaffiliated third parties with only the information necessary to
carry out their assigned responsibilities. We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of
confidentiality.
In the event that you hold shares of the Funds through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your
financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
120
(This Page Intentionally Left Blank.)
Advisor
Shenkman Capital Management, Inc.
151 West 42nd Street, 29th Floor
New York, NY 10036
Distributor
Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 2200
Milwaukee, WI 53202
Transfer Agent
U.S. Bank Global Fund Services
615 East Michigan Street
Milwaukee, WI 53202
(855) 743-6562
Custodian
U.S. Bank N.A.
1555 North RiverCenter Drive, Suite 302
Milwaukee, WI 53212
Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
Two Liberty Place
50 South 16th Street, Suite 2900
Philadelphia, PA 19102
Legal Counsel
Sullivan & Worcester LLP
1633 Broadway, 32nd Floor
New York, NY 10019
This report is intended for shareholders of the Funds and may not be used as sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a representation of future performance. Share price and returns will fluctuate so that shares, when redeemed, may be worth more or
less than their original cost. Statements and other information herein are dated and are subject to change.
SJ-ANNUAL
(b) Not applicable.
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any substantive amendments to its code of ethics during the period covered by
this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that there is at least one audit committee financial expert serving on its audit committee. Mr. Joe D. Redwine is the “audit committee financial expert” and is considered to be “independent” as
each term is defined in Item 3 of Form N‑CSR.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant's annual
financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the
principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant including the review of federal income tax returns, review of federal excise tax
returns, review of state tax returns, if any, and assistance with calculation of required income, capital gain and excise distributions. There were no “other services” provided by the principal accountant. The following table details the
aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
|
FYE
9/30/2022
|
FYE
9/30/2021
|
|
|
(a) Audit Fees
|
$49,000
|
$47,400
|
|
(b) Audit-Related Fees
|
N/A
|
N/A
|
|
(c) Tax Fees
|
$7,200
|
$7,200
|
|
(d) All Other Fees
|
N/A
|
N/A
|
(e)(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre‑approve all audit and non‑audit services of the registrant, including services provided to any entity affiliated with the
registrant.
(e)(2) The percentage of fees billed by Tait, Weller, & Baker LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
|
FYE 9/30/2022
|
FYE 9/30/2021
|
|
|
Audit-Related Fees
|
0%
|
0%
|
|
Tax Fees
|
0%
|
0%
|
|
All Other Fees
|
0%
|
0%
|
(f) All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full‑time permanent employees of the principal accountant.
(g) The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (and any other
controlling entity, etc.—not sub-adviser) for the last two years.
|
Non-Audit Related Fees
|
FYE 9/30/2022
|
FYE 9/30/2021
|
|
Registrant
|
N/A
|
N/A
|
|
Registrant’s Investment Adviser
|
N/A
|
N/A
|
(h) The audit committee of the board of trustees/directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser is compatible with maintaining the principal accountant's
independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.
The registrant has not been identified by the U.S. Securities and Exchange Commission as having filed an annual report issued by a registered public accounting firm branch or office that is
located in a foreign jurisdiction where the Public Company Accounting Oversight Board is unable to inspect or completely investigate because of a position taken by an authority in that jurisdiction.
The registrant is not a foreign issuer.
Item 5. Audit Committee of Listed Registrants.
(a) Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
(b) Not applicable.
Item 6. Investments.
(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
|
(a)
|
The Registrant’s President/Chief Executive Officer/Principal Executive Officer and Vice President/Treasurer/Principal Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940, as amended, (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of
1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and
reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the Registrant's internal control over financial reporting.
|
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Exhibits.
(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or
more persons. Not applicable to open-end investment companies.
(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
(Registrant) Advisors Series Trust
By (Signature and Title)* /s/ Jeffrey T. Rauman
Jeffrey T. Rauman, President/Chief Executive Officer/Principal
Executive Officer
Date 12/9/2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By (Signature and Title)* /s/ Jeffrey T. Rauman
Jeffrey T. Rauman, President/Chief Executive Officer/Principal
Executive Officer
Date 12/9/2022
By (Signature and Title)* /s/ Cheryl L. King
Cheryl L. King, Vice President/Treasurer/Principal Financial
Officer
Date 12/8/2022
* Print the name and title of each signing officer under his or her signature.