Fund Evaluator:
Osterweis Strategic Income (OSTIX)
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Best Performing in High Yield Bond Over the Last Year
| 11.4% | Fidelity Capital & Income (FAGIX) |
| 10.5% | Fidelity Advisor Capital & Income Z (FIQTX) |
| 7.4% | American Beacon SiM High Yld Opps Inv (SHYPX) |
| 7.4% | Fidelity Advisor High Income Z (FGUMX) |
| 7.2% | Fidelity High Income (SPHIX) |
Fund Details
Osterweis Strategic Income Overview
Osterweis Strategic Income (OSTIX) is an actively managed Taxable Bond High Yield Bond fund. Osterweis launched the fund in 2002.
The investment seeks to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation. The fund invests primarily in income bearing securities. Osterweis Capital Management, LLC (the “Adviser”) takes a strategic approach and may invest in a wide array of fixed income securities of various credit qualities and maturities. The Adviser seeks to control risk through rigorous credit analysis, economic analysis, interest rate forecasts and sector trend review, and is not constrained by any particular duration or credit quality targets.
About Osterweis Strategic Income (OSTIX)
There are 4 members of the management team with an average tenure of 12.27 years: Bradley Kane (2013), Craig Manchuck (2017), John Sheehan (2024), Carl Kaufman (2002). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. Osterweis Strategic Income has 168 securities in its portfolio. The top 10 holdings constitute 18.2% 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.
Osterweis Strategic Income is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Osterweis Strategic Income has 7.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.7%. 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 65.9% (58.6% domestic bond, 7.3% foreign bond and 4.7% convertible bond). Osterweis Strategic Income has 28.6% of the portfolio in cash.
Assets Under Management
The fund has $5 billion in total assets, which is above 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.
OSTIX 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 Osterweis Strategic Income expense ratio is high compared to funds in the High Yield Bond category. Osterweis Strategic Income has an expense ratio of 0.86%, which is 6% lower than its category average, making the fund expense ratio grade a C. 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. Osterweis Strategic Income has a portfolio turnover rate of 37%, 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, Osterweis Strategic Income returned 0.2%, which earned it a grade of A, 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.
Osterweis Strategic Income has a trailing yield of 5.24%, which is below 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.
Osterweis Strategic Income Grades
Year to date, the fund has returned 2.5%, 0.9 percentage points better than the category, which translates into a grade of A. The fund has returned 4.6% over the past year (grade of C), 7.1% over the past three years (grade of D) and 4.5% per year over the past five years (grade of A) and 5.1% per year over the past 10 years (grade of B).
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OSTIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| OSTIX Return (NAV) | 0.2% | 1.4% | 4.6% | 7.1% | 4.5% | 5.1% |
| OSTIX Grade | A | A | C | D | A | B |
| +/- Category | 0.5% | 0.9% | -0.3% | -0.4% | 0.8% | 0.3% |
| High Yield Bond Avg | -0.3% | 0.4% | 4.9% | 7.5% | 3.7% | 4.8% |
| OSTIX Tax Cost Ratio | na | na | 2.1% | 2.2% | 2.1% | 2.0% |
OSTIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| OSTIX Return (NAV) | 2.5% | 5.5% | 8.0% | 12.3% | -5.9% | 5.5% | 9.0% | 5.4% | -0.7% | 6.0% | 10.9% |
| OSTIX Grade | A | F | B | C | A | B | A | F | A | D | F |
| +/- Category | 0.9% | -2.4% | 0.4% | 0.4% | 4.1% | 0.4% | 3.8% | -7.7% | 2.0% | -0.7% | -2.5% |
| High Yield Bond Avg | 1.6% | 7.9% | 7.6% | 11.9% | -10.0% | 5.1% | 5.2% | 13.0% | -2.7% | 6.7% | 13.4% |
| Risk Measures | |
| Standard Deviation: | 2.7% |
| Total Risk Index: | 0.22 - Low |
| Category Risk Index: | 0.67 - Low |
| Category Risk Grade: | A (7% Rank) |
| Beta: | 0.34 |
| R-Squared: | 53% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 5.2% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $5761 Mil |
| Fund Total Assets: | $5,761 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 37% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 23.9 years | |||
| Average Tenure: 12.3 years | |||
| Managers (Year): Kaufman Carl (2002), Kane Bradley (2013), Manchuck Craig (2017), Sheehan John (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 168 |
| % in Top 10 Holdings: | 18.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 7.3% |
Portfolio Allocation |
|
| Domestic Stock: | 0.7% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 58.6% |
| Foreign Bond: | 7.3% |
| Convertible Bond: | 4.7% |
| Other: | 0.0% |
| Cash: | 28.6% |
Purchase Information
| Fund Family: | Osterweis |
| Phone Number: | 866-236-0050 |
| Website: |
| Status: | Open |
| Inception Date: | August 30, 2002 |
| Min. Initial Purchase: | $5,000 |
| Min. Initial IRA Purchase: | $1,500 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.86% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.92% |
| Share Class: | Osterweis Strategic Income |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
