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Miller Value Investment Team POV 2023-05-27T13:13:35+00:00

Click on a clip below to hear perspective from the Miller Value Investment Team.

AN ACTIVE MANAGER’S PERSPECTIVE

We are frequently reminded that investing in markets is never a quiet endeavor. As active investors, we’re looking at the current environment and asking: Where are the opportunities? Our team shares perspective in our latest webinar. (58:24)

Bill Miller IV on the Future (2:47)

Bill Miller IV on the quirks in today’s market. (2:15). Read his quarterly letter by clicking here.

Bill Miller’s current market perspective (6:17)

Daniel Lysik on the compelling opportunity in Value. (7:32)

Bill Miller’s latest stock pick. (3:26)

Daniel Lysik shares a stock pick. (1:55)

Bill Miller IV shares two picks – one with yield and one without. (2:47)

Bill Miller IV and Bill Miller on bitcoin (8:55)

PORTFOLIO MANAGER POV

Bill Miller IV and his team use a value lens to source and capitalize on differentiated opportunities in the market to pursue a dual objective of income and capital appreciation. We dive into a number of topics, including how his time at McKinsey helps him think as a portfolio manager, why we started the Income Strategy, how we define attractive value, and what opportunities we see in equities and income. (19:29)

    Let's continue the discussion on the Miller Value Funds. Submit your information and our team will contact you directly.

    DISCLOSURE

    Miller Income Fund Performance as of 3/31/23 (%)
    1 Yr 3 Yr 5 Yr Inception
    02/28/14
    Class I (without sales charges) -16.84 15.08 1.75 2.25
    ICE BofA US High Yield Index -3.50 5.86 3.07 3.65

    Class I Gross Expense Ratio: 1.00% / Net Expense Ratio: 0.96%

    Performance shown represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than the original cost. Total returns assume the reinvestment of all distributions at net asset value and the deduction of all Fund expenses. Total return figures are based on the NAV per share applied to shareholder subscriptions and redemptions, which may differ from the NAV per share disclosed in Fund shareholder reports. Performance would have been lower if fees had not been waived in various periods. Numbers may be the same due to rounding. All classes of shares may not be available to all investors or through all distribution channels. For the most recent month-end information, please call 888-593-5110. An investor cannot invest directly in an index.

    Click here for a Miller Income Fund prospectus.

    Top ten holdings for the Miller Income Fund can be found here. 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.

    The Miller Income Fund (Class I) had a current yield of 7.81% (30-day SEC yield of 6.60% and 6.47% without waiver) as of 3/31/23.

    Mutual funds, equities, bonds, and other asset classes have different risk profiles, which should be considered when investing. Investors cannot directly invest in an index.

    Dividend yield is the ratio of a company’s annual dividend compared to its share price. M2 is a measure of the money supply that includes cash, checking deposits, and other types of deposits that are readily convertible to cash such as CDs. The earnings yield refers to the earnings per share for the most recent 12-month period divided by the current market price per share. Mega cap is a designation for the largest companies in the investment universe as measured by market capitalization. Price-to -earnings (P/E) is the market price per share divided by earnings per share. Forward price-to-earnings (forward P/E) is a version of the ratio of price-to-earnings that uses forecasted earnings for the P/E calculation. Trailing price-to-earnings is a relative valuation multiple that is based on the last 12 months of actual earnings. A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The risk-free rate of return is the rate an investor can expect to earn on an investment that carries zero risk. Price-to-sales ratio is a tool for calculating a stock’s valuation relative to other companies. It is calculated by dividing a stock’s current price by its revenue per share. EV/EBITDA ratio that compares a company’s enterprise value to its earnings before interest, taxes, depreciation and amortization and measures the value of a company.
    Free cash flow is earnings before depreciation, amortization, and non-cash charges minus maintenance capital expenditures. The price-to-cash flow ratio is a stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share. A bond’s yield to maturity (YTM) is the internal rate of return required for the present value of all the future cash flows of the bond (face value and coupon payments) to equal the current bond price. The 2/10 Treasury Yield Spread is the difference between the 10-year treasury yield and the 2-year treasury yield. The ICE BofA US High Yield 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. The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 2000 Index is a small-cap stock market index that makes up the smallest 2,000 stocks in the Russell 3000 Index. The Russell 3000 Value Index is a market-capitalization weighted index based on the Russell 3000 Index and includes companies with lower price-to-book ratios and lower expected growth rates. The Russell 3000 Growth Index is a market capitalization-weighted index based on the Russell 3000 index and includes companies that display signs of above-average growth. The S&P 500 Index is a market capitalization-weighted index of 500 widely held common stocks and is often used as a measure of the overall market. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. The 30-Day SEC Yield (Unsubsidized) is computed under an SEC standardized formula based on income net income earned over the past 30 days excluding expense reimbursements.

    J.P.Morgan Global Research. Investor Survey Results from 2023 IMF/World Bank Spring Meetings. Dated April 17, 2023.

    Cryptocurrency Risk. The Funds may have indirect exposure to blockchain technology, bitcoin, or other cryptocurrency through investments in companies utilizing blockchain technologies to generate present or future revenue from their core business. Cryptocurrency (notably, bitcoin), often referred to as ‘‘virtual currency’’ or ‘‘digital currency,’’ operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. Cryptocurrency operates without central authority or banks and is not backed by any government. Even indirectly, cryptocurrencies may experience very high volatility. Cryptocurrency is also not legal tender. Federal, state or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in the U.S. is still developing. Cryptocurrency exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware.

    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. Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and it is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Funds nor any of its representatives may give legal or tax advice.

    Diversification does not assure a profit or protect against a loss in a declining market.

    Earnings growth is not a measure of the Fund’s future performance.

    Mutual fund investing involves risk; principal loss is possible. 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 commodity prices, 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 the possibility of default. As a nondiversified 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 value approach to investing involves the risk that stocks may remain undervalued. Value stocks may underperform the overall equity market while the market concentrates on growth stocks. Investing in ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of the shares may trade at a discount to its net asset value (NAV), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares.

    The Miller Value Funds are distributed by Quasar Distributors, LLC.
    (C)2023 Miller Value Partners

    SPDR® Bloomberg High Yield Bond ETF (ticker: JNK)

    Investment Objective: The SPDR Bloomberg High Yield Bond ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that tracks the U.S. high yield corporate bond market.

    Fund Fees and Expenses: None

    Annual Fund Operating Expenses
    Management Fees: 0.40%
    Distribution & Service (12b-1) Fees: None
    Other Expenses: 0.00%
    Total Annual Fund Operating Expenses: 0.40%

    Fund Performance for period ending 3/31/23

    1 Yr 5 Yr 10 Yr
    NAV -4.78 2.26 2.73
    Market Price –3.93 2.40 2.80
    Benchmark -3.89 2.85 3.62

    Past performance is not a reliable indicator of future performance. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. All results are historical and assume the reinvestment of dividends and capital gains. Visit ssga.com for most recent month-end performance. Performance is shown net of fees. Performance of an index is not illustrative of any particular investment. It is not possible to invest directly in an index. 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.

    Prior to 10/31/2021, the SPDR Bloomberg High Yield Bond ETF was known as the SPDR Bloomberg Barclays High Yield Bond ETF.
    Prior to 8/24/2021, the Bloomberg High Yield Very Liquid Index was known as the Bloomberg Barclays High Yield Very Liquid Index.

    The Fund’s investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.
    Investing in high yield fixed income securities, otherwise known as “junk bonds”, is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities. These Lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.  Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates rise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.  The Fund is classified as “diversified” under the Investment Company Act of 1940, as amended (the “1940 Act”); however, the Fund may become “non-diversified,” as defined under the 1940 Act, solely as a result of tracking the Index (e.g., changes in weightings of one or more component securities). When the Fund is non-diversified, it may invest a relatively high percentage of its assets in a limited number of issuers.  Passively managed funds invest by sampling the index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.  While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.  ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

    Distributor StateStreetGlobalAdvisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. Miller Value Funds is not affiliated with State Street Corp.

    iShares iBoxx $ High Yield Corporate Bond ETF (ticker: HYG)

    Investment Objective: The iShares iBoxx $ High Yield Corporate Bond ETF seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds.

    Fund Fees and Expenses: None

    Annual Fund Operating Expenses
    Management Fees: 0.48%
    Distribution & Service (12b-1) Fees: None
    Other Expenses: 0.00%
    Total Annual Fund Operating Expenses; 0.48%

    Fund Performance for period ending 3/31/23

    1 Yr 5 Yr 10 Yr
    NAV -3.93 2.41 3.00
    Market Price -3.09 2.49 3.03
    Benchmark -3.25 2.92 3.49

    The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com. Beginning 8/10/20, the market price returns are calculated using the closing price. Prior to 8/10/20, the market price returns were calculated using the midpoint of the bid/ask spread at 4:00 PM ET. The returns shown do not represent the returns you would receive if you traded shares at other times.

    The Funds’ investment objectives, risk factors, and charges, expenses, and other information can be found in the Funds’ prospectuses and, if available, summary prospectuses, which may be obtained by clicking here. Investing involves risk, including possible loss of principal.

    The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates “BlackRock”). Miller Value Funds has no affiliation with BlackRock.

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