PHIN - Oakmark Bond Fund Q1 2025 Commentary

2025-04-13 08:38:00 ET

Summary

• Oakmark Bond Fund performed in-line with its benchmark in the first quarter of 2025 as both posted strong absolute returns.
• The Fund’s Institutional Share Class returned 2.66% versus 2.78% for its benchmark, the Bloomberg U.S. Aggregate Bond Index for the quarter, and 1.42% since inception, versus -0.92% for the benchmark over the same period.
• Performance did not stray far from the benchmark during the quarter as the Fund gained approximately 7 basis points of relative performance from its duration and yield curve positioning, while security selection was a slight drag on performance.

Portfolio activity

The Fund entered the new year maintaining a modest overweight position to corporate credit and securitized debt and was underweight U.S. Treasurys versus its benchmark. That said, the majority of the Fund’s securitized position is in highly-rated agency mortgage-backed securities ((MBS)), and the corporate holdings are high credit quality with less than 20% in below investment grade. The Fund’s duration is approximately in-line with the benchmark at around six years and its yield-to-worst ended the first quarter at 5.4% with a current yield of 5.38%....

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