Fund Evaluator:

Muzinich Flexible U.S. HY Inc Supra Ins Overview

Muzinich Flexible U.S. HY Inc Supra Ins (MZHSX) is an actively managed Taxable Bond High Yield Bond fund. Muzinich launched the fund in 2016.

The investment seeks to provide a high level of income on a risk-adjusted basis over a full market cycle. The fund normally invests at least 80% of its net assets in high yield credit issued by companies with a domicile or principle place of business in the U.S. The advisor typically focuses on debt instruments rated below investment grade, defined as below BBB- or Baa3 by Standard & Poor’s, Fitch or Moody’s, as applicable, or which are deemed equivalent by the Advisor.

About Muzinich Flexible U.S. HY Inc Supra Ins (MZHSX)

There are 4 members of the management team with an average tenure of 1.84 years: Joseph Galzerano (2025), Sam McGairl (2023), John Colantuoni (2024), Vikram Awasthi (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA 1-5Y US Cash Pay HY TR USD index with a weighting of 100%. Muzinich Flexible U.S. HY Inc Supra Ins has 337 securities in its portfolio. The top 10 holdings constitute 12.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Muzinich Flexible U.S. HY Inc Supra Ins is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Muzinich Flexible U.S. HY Inc Supra Ins has 10.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.5% (86.6% domestic bond, 10.9% foreign bond and 0.0% convertible bond). Muzinich Flexible U.S. HY Inc Supra Ins has 2.5% of the portfolio in cash.

Assets Under Management

The fund has $65 million in total assets, which is below the $545 million average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

MZHSX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Muzinich Flexible U.S. HY Inc Supra Ins expense ratio is average compared to funds in the High Yield Bond category. Muzinich Flexible U.S. HY Inc Supra Ins has an expense ratio of 0.59%, which is 36% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Muzinich Flexible U.S. HY Inc Supra Ins has a portfolio turnover rate of 66%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 72% for the High Yield Bond category.

Recently, in the month of July 2026, Muzinich Flexible U.S. HY Inc Supra Ins returned -0.1%, which earned it a grade of B, as the High Yield Bond category had an average return of -0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Muzinich Flexible U.S. HY Inc Supra Ins has a trailing yield of 6.40%, which is above the 6.28% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Muzinich Flexible U.S. HY Inc Supra Ins Grades

Year to date, the fund has returned 1.9%, 0.3 percentage points better than the category, which translates into a grade of B. The fund has returned 5.5% over the past year (grade of B), 7.3% over the past three years (grade of D) and 3.1% per year over the past five years (grade of D) and 4.6% per year over the past 10 years (grade of D).

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