Polen ESG Upper Tier U.S. High Yield

All performance is calculated in US Dollars. Past performance is not indicative of future results.

Polen Capital Credit, LLC claims compliance with the Global Investment Performance Standards (GIPS). This presentation is supplemental information to the fully compliant GIPS Composite Report performance disclosure on the Materials tab.

Holdings are subject to change. The top holdings, as well as other data, are as of the period indicated and should not be considered a recommendation to purchase, hold, or sell any particular security. There is no assurance that any of the securities noted will remain in a portfolio at the time you receive this fact sheet. Actual holding and percentage allocation in individual client portfolios may vary and are subject to change. It should not be assumed that any of the holdings discussed were or will prove to be profitable or that the investment recommendations or decisions we make in the future will be profitable. A list of all securities held in this portfolio in the prior year is available upon request.

All portfolio characteristics set forth above are based on a representative account within the Polen Credit ESG Upper Tier U.S. High Yield Composite that Polen Credit has deemed the most representative of the accounts managed by Polen Credit pursuing the ESG Upper Tier U.S. High Yield Composite investment strategy. Contractual investment guidelines and length of track record are the most important factors in determining a representative account for the Polen Credit ESG Upper Tier U.S. High Yield Composite strategy. The characteristics are included as supplemental information and complement a GIPS Composite Report.

Portfolio characteristics are shown as of the stated date. There can be no guarantee that the portfolio will exhibit identical or similar characteristics to those shown at any future time of investment. Investments are subject to risks, including the possibility that the value of any investment (and income derived thereof (if any)) can increase, decrease, or in some cases, be entirely lost and investors may not get back the amount originally invested. This document does not identify all the risks (direct or indirect) or other considerations which might be material to you when entering any financial transaction. The views and strategies described may not be suitable for all clients.

The Polen Credit ESG Upper Tier U.S. High Yield Composite (the “Composite”) includes portfolios that follow the Polen Credit ESG Upper Tier U.S. High Yield Composite strategy, The Polen Credit ESG Upper Tier U.S. High Yield Composite strategy seeks to generate capital appreciation and income by investing in USD denominated non-investment grade securities while explicitly focusing on ESG metrics and goals. The strategy has limited exposure to credit ratings that are CCC-rated (<5% of portfolio), Investment Grade (<5%) and leveraged loans (<15%). The strategy focuses on issuers that have an ESG rating of BB or above from MSCI or as determined internally by Polen Capital for issuers not rated by MSCI. MSCI ESG Ratings aim to measure a company’s management of financially relevant ESG risks and opportunities. MSCI uses a rules-based methodology to identify industry leaders and laggards according to their exposure to ESG risks and how well they manage those risks relative to peers. MSCI ESG Ratings range from leader (AAA, AA), average (A, BBB, BB) to laggard (B, CCC). The strategy completely eschews industries involved in extraction of fossil fuels. Derivatives may be used under limited circumstances; no leverage is utilized.

The index does not bear any fees or expenses and does not reflect the specific investment restrictions and guidelines of the portfolio. An investor can not directly invest in such index and therefore the index returns are comparable to the returns of the portfolio calculated on a fully gross, and not net, basis; investment results will differ from those of this index. The benchmark data is used for comparative purposes only.

The Polen Credit ESG Upper Tier U.S. High Yield representative account is an account within the Composite that Polen Capital has deemed the most representative of the Composite strategy of all the accounts managed by Polen Capital within the Composite. Contractual investment guidelines and length of track record are the most important factors in determining a representative account for the Composite strategy. The Composite strategy statistics provided are based on a representative account and are included as supplemental information and complement a GIPS Composite Report, which is available upon request.

Indices:
ICE BofA BB-B U.S. High Yield Ex Utility & Energy Index: The benchmark comprises the BB1 through B3 rated securities of the ICE BofA U.S. High Yield Index and excludes Utility and Energy sectors as defined by the ICE BofA Level 3 classification scheme.

ICE BofA U.S. High Yield Index: The ICE BofA U.S. High Yield Index tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. 

The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its Third-Party Suppliers and has been licensed for use by Polen Capital Credit, LLC ICE Data and its Third-Party Suppliers accept no liability in connection with its use. Please contact Polen Capital Credit for a full copy of the applicable disclaimer.

Definitions:

Alpha: Jensen's Alpha measures the incremental return of a portfolio above the expected return, adjusted for market risk and using the return on a 3-month U.S. Treasury bill as the risk-free rate baseline. Alpha has been annualized for periods greater than one year.

Adjusted Effective Duration: With respect to the portfolio, the adjusted effective duration statistic provided is calculated by taking a weighted average of (i) modified duration to next reset date for all floating rate instruments, and (ii) effective duration for all fixed coupon instruments. With respect to the benchmark, duration is shown as effective duration. 

Average Blended Yield: Average blended yield is the weighted average of (i) for instruments priced at or above par, yield to worst for bonds and yield to three year take out for loans, and (ii) for instruments trading at a discount, yield to maturity. Yield to worst is the lowest possible yield from owning a bond considering all potential call dates prior to maturity and is the statistic provided for the index as it is comprised of high yield bonds only. Yield to three year take out is the yield from owning a senior bank loan assuming the loan is retired in three years, or yield to maturity if the loan’s maturity date is in less than three years. 

Average Coupon: Average coupon is the average rate of the coupons of the fixed income securities (i.e., loans and bonds) in a portfolio, weighted based each holding's size relative to the portfolio. 

Average Price: Average price is a market value weighted average price which is calculated only for the fixed income portion of the account.