The S&P 600 SmallCap Value Index tracks the value stocks in the S&P 600 SmallCap Index, identified by three factors: book value, earnings and sales to price. An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. The S&P 100 Index is a sub-set of the S&P 500® and is designed to measure the performance of large-cap companies in the United States and comprises 100 major blue chip companies across multiple industry groups. The Commodity Research Bureau Index (CRBI) comprises a basket of 19 commodities and acts as a representative indicator of today’s global commodity markets. The Bloomberg US Aggregate Bond Index is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. EBITDA is earnings before interest, taxes, depreciation and amortization and is a calculation of a company’s financial health. EV/EBIT ratio compares a company’s enterprise value to its earnings before interest, and taxes, and measures the value of a company. Free cash flow yield is an overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share. The ratio is calculated by taking the free cash flow per share divided by the share price. The ICE BofA Merrill Lynch U.S. High Yield Master II Index tracks the performance of below-investment-grade, but not in default, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market, and includes issues with a credit rating of BBB or below, as rated by Moody’s and S&P. An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. Basis point is one hundredth of one percent.
Equity securities are subject to price fluctuation and possible loss of principal. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. Real estate investment trusts (REITs) are closely linked to the performance of the real estate markets. REITs are subject to illiquidity, credit and interest rate risks, and risks associated with small and mid-cap investments. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. Investments in MLP securities are subject to unique risks, including the risks of MLPs and the energy sector, including the risks of declines in energy and commodityprices, decreases in energy demand, adverse weather conditions, natural or other disasters, changes in government regulation, and changes in tax laws. Short selling is a speculative strategy. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Fixed-income securities involve interest rate, credit, inflation, and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed-income securities falls. High yield bonds are subject to greater price volatility, illiquidity, and possibility of default. As a non-diversified Fund, it is permitted to invest a higher percentage of its assets in any one issuer than a diversified fund, which may magnify the Fund’s losses from events affecting a particular issuer. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance.
The views expressed are those of the portfolio managers as of the date indicated, are subject to change, and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. All data referenced are from sources deemed to be reliable but cannot be guaranteed. Discussions of individual securities are intended to inform shareholders as to the basis (in whole or in part) for previously made decisions by a portfolio manager to buy, sell or hold a security in a portfolio. References to specific securities are not intended and should not be relied upon as the basis for anyone to buy, sell or hold any security. Portfolio holdings and sector allocations may not be representative of the portfolio manager’s current or future investment and are subject to change at any time. Dividends are not guaranteed and a company’s future ability to pay dividends may be limited.
The SPDR® Bloomberg High Yield Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg High Yield Very Liquid Index. JNK seeks to provide a diversified exposure to US dollar-denominated high yield corporate bonds with above-average liquidity. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) seeks to track the investment results of the Markit iBoxx USD Liquid High Yield Index. The ETFs invest exclusively in bonds, whereas the Miller Income Fund has flexibility to invest across asset classes. Miller Income Fund is weighted 15% in bonds and 85% in equities as of 6/30.24.
The JNK and HYG ETFs were selected due to their passive indexing of high yield indexes investment objectives and their dominant position in the category based on AUM. Investors looking for high yield strategies may consider these ETFs or the Miller Income Fund.
SPDR Bloomberg High Yield Bond ETF (JNK)
| Annualized Performance as of 6/30/24 | 1-Year | 3-Year | 5-Year | 10-Year |
| NAV | 9.97% | 0.83% | 2.80% | 2.94% |
| Market Value | 9.54% | 0.74% | 2.72% | 2.90% |
Performance returns for periods of less than one year are not annualized. Performance is shown net of fees.
Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income as applicable.
The market price used to calculate the Market Value return is the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. If you trade your shares at another time, your return may differ.
Gross Expense Ratio: 0.40%
Please reference the prospectus for detailed information.
iShares iBoxx High Yield Corporate Bond ETF (HYG)
| Annualized Performance as of 6/30/24 | 1-Year | 3-Year | 5-Year | 10-Year |
| Total Return | 9.69% | 0.98% | 2.79% | 3.20% |
| Market Price | 9.15% | 0.87% | 2.69% | 3.16% |
The Miller Value Funds are distributed by Quasar Distributors, LLC.
©2024 Miller Value Partners, LLC
