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Prospectus
dated October 19, 2023,
as supplemented November 6,
2023
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TICKER
SYMBOLS by Share Class |
FUND |
A |
C |
I |
R6 |
I-2 |
Aristotle Portfolio
Optimization Conservative Fund |
POAAX |
POACX |
N/A |
N/A |
PLCDX |
Aristotle Portfolio
Optimization Moderate Conservative Fund |
POBAX |
POBCX |
N/A |
N/A |
PMCDX |
Aristotle Portfolio
Optimization Moderate Fund |
POCAX |
POMCX |
N/A |
N/A |
POMDX |
Aristotle Portfolio
Optimization Growth Fund |
PODAX |
PODCX |
N/A |
N/A |
PMADX |
Aristotle Portfolio
Optimization Aggressive Growth Fund |
POEAX |
POCEX |
N/A |
N/A |
POEDX |
Aristotle Ultra
Short Income Fund |
PLUAX |
N/A |
PLUIX |
N/A |
PLUDX |
Aristotle Short
Duration Income Fund |
PLADX |
PLCSX |
PLSDX |
N/A |
PLDSX |
Aristotle Core
Income Fund |
PLIAX |
PLNCX |
PLIIX |
N/A |
PLIDX |
Aristotle ESG Core
Bond Fund |
N/A |
N/A |
PLEBX |
N/A |
PLEDX |
Aristotle Strategic
Income Fund |
PLSTX |
PLCNX |
PLSRX |
N/A |
PLSFX |
Aristotle Floating
Rate Income Fund |
PLFLX |
PLBCX |
PLFRX |
N/A |
PLFDX |
Aristotle High Yield
Bond Fund |
PLAHX |
PLCHX |
PLHIX |
N/A |
PLHYX |
Aristotle Small/Mid
Cap Equity Fund |
ARAHX |
AISHX |
ARIHX |
N/A |
AIHHX |
Aristotle Small Cap
Equity Fund |
ARABX |
AISBX |
ARIBX |
ARRBX |
AIBBX |
Aristotle Growth
Equity Fund |
ARAGX |
N/A |
ARIGX |
N/A |
AIGGX |
Aristotle
International Equity Fund |
ARAFX |
N/A |
ARIFX |
N/A |
AIFFX |
Aristotle Value
Equity Fund |
ARAQX |
N/A |
ARIQX |
N/A |
AIQQX |
Aristotle/Saul
Global Equity Fund |
ARAOX |
N/A |
ARIOX |
N/A |
AIOOX |
Aristotle Core
Equity Fund |
ARALX |
N/A |
ARILX |
N/A |
AILLX |
THE
SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
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Table
of Contents |
FUND
SUMMARIES |
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Where
To Go for More Information |
back
cover of this Prospectus |
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Appendix |
back
of this Prospectus |
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Aristotle
Portfolio Optimization Conservative
Fund |
Investment
Goal
This
Fund seeks current income and preservation of
capital.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You
may qualify for sales charge discounts if you and your family invest, or agree
to invest in the future, at least $50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
|
A |
C |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.50% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
|
A |
C |
I-2 |
Management
Fee1 |
0.45% |
0.45% |
0.45% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
Acquired
Fund Fees and Expenses2 |
0.44% |
0.44% |
0.44% |
Total
Annual Fund Operating Expenses |
1.14% |
1.89% |
0.89% |
Less
Fee Waiver3 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.14% |
1.89% |
0.89% |
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1 |
The
Management Fee consists of an Advisory Fee and a Supervision and
Administration Fee paid to Aristotle Investment Services, LLC. The
Advisory Fee is borne by the Fund at the same annual rate for all share
classes of 0.20% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.25% of the average net assets of the class. |
2 |
Acquired
Fund Fees and Expenses are expenses incurred indirectly by the Fund
through its ownership of shares in other investment companies.
As
such, they are not reflected in the total annual operating expenses in the
Fund’s financial statements. Acquired Fund Fees and Expenses have been
estimated based on expected allocations to underlying
funds. |
3 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 1.22% for Class A,
1.97% for Class C and 0.97% for Class I-2. Aristotle Investment Services,
LLC may not recoup these waivers in future periods.
|
Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the ten-year
amounts for Class C shares that reflect the conversion to Class A shares six
years after the end of the calendar month in which the shares were purchased and
the fee waiver (expense limitation) which is only reflected for the contractual
periods. Although your actual costs may be higher or lower, the examples show
what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
C |
I-2 |
1
year |
$659 |
$291 |
$90 |
3
years |
$889 |
$591 |
$281 |
5
years |
$1,138 |
$1,016 |
$488 |
10
years |
$1,849 |
$2,201 |
$1,084 |
|
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|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
C |
I-2 |
1
year |
$659 |
$191 |
$90 |
3
years |
$889 |
$591 |
$281 |
5
years |
$1,138 |
$1,016 |
$488 |
10
years |
$1,849 |
$2,201 |
$1,084 |
Portfolio
Turnover
The
Fund, which operates as a “fund of funds” that seeks to achieve its investment
goal by investing in unaffiliated exchange-traded funds (“ETFs”) and in other
funds organized as series of the Trust (collectively, the “Underlying Funds”),
does not pay transaction costs, such as commissions, when it buys and sells
shares of Underlying Funds (or “turns over” its holdings); however, a higher
portfolio turnover rate, which reflects a greater number of shares of Underlying
Funds being bought or sold, may result in higher taxes when Fund shares are held
in a taxable account. During the fiscal year ended March 31, 2023, the
portfolio turnover rate of Pacific Funds Portfolio Optimization Conservative
(the “Predecessor Fund”) was 28% of the average value of the Fund. An Underlying
Fund typically does pay transaction costs when it turns over its portfolio so a
higher portfolio turnover rate, which reflects a greater number of securities
being bought or sold, may indicate higher transaction costs and may result in
higher taxes to Fund shareholders who hold Fund shares in a taxable account.
These costs, which are not reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s and Underlying Funds’ performance. For more information
regarding the Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
This
Fund is a “fund of funds” that seeks to achieve its investment goal by investing
in a combination of underlying funds, including funds that are actively managed
by an affiliate of the investment adviser and unaffiliated ETFs. The allocation
of the Fund’s assets between underlying funds sub-advised by an affiliate of the
investment adviser and unaffiliated ETFs will vary over time, although the
sub-adviser currently expects to invest, under normal circumstances, between 40%
and 90% of the Fund’s assets in underlying funds sub-advised by an affiliate of
the investment adviser. Under normal market conditions, the Fund’s exposures to
the two broad asset classes of debt and equity are expected to be within the
following ranges:
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BROAD
ASSET CLASS ALLOCATIONS |
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Debt |
Equity |
70-85% |
15-30% |
The
sub-adviser to the Fund manages the investment program for the Fund through a
multi-step process that includes:
(1)
Asset Allocation/Portfolio Construction—The
sub-adviser manages the Fund using an approximate 10-year investment horizon. An
asset class target allocation for the Fund is developed that seeks to meet the
Fund’s investment goal using both equity and debt asset classes. The equity
asset class includes narrower asset classes such as domestic
small-capitalization, mid-capitalization and large-capitalization, growth and
value strategies, and international and emerging market equities. The debt asset
class also includes narrower asset classes such as investment grade bonds, high
yield/high risk bonds, bank loans, international debt and emerging market
debt.
The
sub-adviser then determines the amount of the Fund’s assets to invest in each
underlying fund in order to obtain the asset class target allocations for the
Fund.
The
sub-adviser may adjust the broad asset class allocations to any point within the
above ranges, and/or adjust the narrower asset class allocations, and/or the
allocations to the underlying funds, at any time as it deems necessary based on
the sub-adviser’s views of market conditions, its outlook for various asset
classes or other factors (“dynamic positioning”).
For
example, the sub-adviser may engage in dynamic positioning for the Fund by
adjusting the target allocations to reflect a shorter-term view of the markets
or a particular asset class, to seek to capture upside opportunities or mitigate
risk from market events, or for cash management purposes. The sub-adviser would
then make the appropriate adjustments to its underlying funds allocations to
reflect the updated asset class target allocations. This dynamic positioning
would be implemented consistent with the Fund’s risk/return profile and
investment goal.
(2)
Investment Risk Management—The
sub-adviser monitors and analyzes the investment risks of the Fund, evaluates
their impact on the Fund’s risk/return objectives and considers adjustments to
the Fund’s allocations as a result.
Investments
of the underlying funds that invest primarily in debt instruments include
investment grade debt securities, including U.S. Government securities,
corporate bonds, mortgage-related securities, and other asset-backed securities;
foreign debt securities, including
emerging
market debt; debt instruments of varying duration; convertible securities; high
yield/high risk bonds; floating rate loans; and inflation-indexed
bonds.
Investments
of the underlying funds that invest primarily in equity instruments include
growth and value stocks; large-, mid- and small-capitalization companies;
sector-specific stocks; and domestic and foreign stocks, including emerging
market stocks.
The
Fund is expected to be as fully invested as practical, although it may maintain
liquidity reserves to meet redemption requests.
The
Fund may invest a significant portion of its assets in any single underlying
funds. The sub-adviser has sole discretion in selecting the underlying funds for
investment and may adjust the Fund’s allocations to the underlying funds,
including adding or removing underlying funds as it deems appropriate to meet
the Fund’s investment goal.
For
additional information about the Fund and its Underlying Fund investments,
please see the Additional
Information About Principal Investment Strategies and Principal
Risks
section in the Prospectus.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. Because this Fund has a significant
portion of its assets invested in Underlying Funds that invest primarily in debt
instruments, this Fund has more exposure to debt
securities risk
than other Portfolio Optimization Funds. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
As
a “fund of funds,” the Fund is subject to Asset
Allocation Fund of Funds Risk, Conflicts of Interest Risk, and
ETF
Risk.
The Fund is also subject to the risks of the Underlying Funds in which it
invests, which may change based on the Fund’s allocations to the Underlying
Funds. The principal risks to the Fund from these Underlying Fund investments
are described below.
•Asset
Allocation Fund of Funds Risk:
Although the theory behind asset allocation is that diversification among asset
classes can help reduce volatility over the long term, you still may lose money
and/or experience price volatility. Performance of and assumptions about asset
classes and Underlying Funds may also diverge from historical performance and
assumptions used to develop the allocations in light of actual market
conditions. There is a risk that you could achieve better returns by investing
in an individual fund or funds representing a single asset class rather than
investing in a fund of funds. Another risk of asset allocation is that the
Fund’s actual asset class allocations may deviate from the intended allocation
because an Underlying Fund’s investments can change due to market movements, the
Underlying Fund Manager’s investment decisions or other factors, which could
result in the Fund’s risk/return target not being met. Fund shareholders also
bear indirectly their proportionate share of the expenses of the Underlying
Funds in which the Fund
invests.
As a fund of funds, the Fund is exposed proportionally to the same risks as the
Underlying Funds in which it invests.
•Conflicts
of Interest Risk:
The investment adviser and sub-adviser are subject to competing interests that
have the potential to influence investment decisions for the Fund. For example,
an Underlying Fund managed by an affiliate of the sub-adviser or the investment
adviser may create an incentive for the sub-adviser to use that fund as an
Underlying Fund. In addition, the sub-adviser may be influenced by its or the
investment adviser’s view of the best interests of Underlying Funds, such as a
view that an Underlying Fund may benefit from additional assets or could be
harmed by redemptions. The sub-adviser seeks to identify and address any
potential conflicts in a manner that is fair for Underlying Funds, the Fund and
the shareholders of the Fund and Underlying Fund. The sub-adviser has adopted a
policy under which investment decisions for the Fund must be made in the best
interests of the Fund and its shareholders, and the sub-adviser may not take
into account the interests of an Underlying Fund and its shareholders when
making investment decisions for the Fund.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares are trading at a discount, the Fund will receive a
price that is less than the ETF’s net asset value per share. In addition, an ETF
may not replicate exactly the performance of the benchmark index it seeks to
track. An investment in an ETF is an investment in another investment company
and therefore, the Fund’s shareholders will indirectly bear a proportionate
share of any fees and expenses of the ETFs in which the Fund invests. The Fund
will pay brokerage commissions in connection with the purchase and sale of
shares of ETFs.
Principal
Risks from Holdings in Underlying Funds
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value. The
market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer's products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce an
Underlying Fund’s income or ability to recover amounts due and may reduce the
value of the debt instrument, sometimes dramatically.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, an Underlying Fund’s yield
(and total return) also may be low, and an Underlying Fund may experience low or
negative returns. An Underlying Fund may be subject to heightened levels of
interest rate risk because the Federal Reserve has raised, and may continue to
raise, interest rates. As interest rates rise, the value of fixed income
investments will generally decrease.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country, or region.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit rating/scores,
increasing potential default), prepayment risk (when interest rates decline,
borrowers may pay off their mortgages sooner than expected which can reduce an
Underlying Fund’s returns because an
Underlying
Fund may have to reinvest its assets at lower interest rates), call risk
(similar to prepayment risk, an issuer may pay its obligations under a security
sooner than expected), U.S. government securities risk (securities backed by
different U.S. government agencies are subject to varying levels of credit
rating risk), issuer risk (the risk that a private issuer cannot meet its
obligations) and stripped mortgage-related securities risk (these securities are
particularly sensitive to changes in interest rates).
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•Leverage
Risk:
An Underlying Fund may invest in forward commitments, futures contracts,
options, or swap agreements, including taking short positions using certain
derivatives, as a principal investment strategy. These derivative investments
give rise to a form of leverage. Leverage is investment exposure that exceeds
the initial amount invested. The loss on a leveraged investment may far exceed
an Underlying Fund’s principal amount invested. Leverage can magnify an
Underlying Fund’s gains and losses and therefore increase its volatility.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. An Underlying Fund may invest in
liquid investments that become illiquid due to financial distress, or
geopolitical events such as sanctions, trading halts or wars. An Underlying Fund
may not be able to sell a holding quickly at the price it has valued the
holding, may be unable to take advantage of market opportunities, or may be
forced to sell other more desirable, more liquid securities or sell less liquid
or illiquid securities at a loss if needed to raise cash to conduct operations,
including to meet redemption requests. This risk may be particularly pronounced
with respect to small-capitalization companies.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of an Underlying Fund’s investments denominated in or
with exposure to that foreign currency.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities (including loans) may be more volatile than
investment grade securities.
•Convertible
Securities Risk:
Convertible securities are generally subject to the risks of stocks when the
underlying stock price is high relative to the conversion price (because the
conversion feature is more valuable) and to the risks of debt securities when
the underlying stock price is low relative to the conversion price (because the
conversion feature is less valuable). Convertible securities are also generally
subject to credit
risk,
as they tend to be of lower credit quality, and interest
rate risk, though
they generally are not as sensitive to interest rate changes as conventional
debt securities. A convertible security’s value also tends to increase and
decrease with the underlying stock and typically has less potential for gain or
loss than the underlying stock.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries may be
riskier than investments in or exposure to investments in U.S. and other
developed markets for many reasons, including smaller market capitalizations,
greater price volatility, less liquidity, lower credit quality, a higher degree
of political and economic instability, the imposition of economic sanctions,
less governmental regulation and supervision of the financial industry and
markets, and less stringent financial reporting and accounting standards and
controls.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•Geographic
Focus Risk:
If an Underlying Fund invests a significant portion of its assets in a single
country, limited number of countries, or particular geographic region, then the
risk increases that economic, political, social, or other conditions in those
countries or that region will have a significant impact on the Underlying Fund’s
performance. As a result, the Underlying Fund’s performance may be more volatile
than the performance of more geographically diversified funds.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization companies.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Growth
Companies Risk:
Growth companies are those that a portfolio manager believes have the potential
for above average or rapid growth but may be subject to greater price volatility
than investments in “undervalued”
companies.
•Inflation-Indexed
Debt Securities Risk:
The principal values of inflation-indexed debt securities tend to increase when
inflation rises and decrease when inflation falls.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market, and industry changes than larger, more
established companies.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads, and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper an Underlying Fund’s ability to buy or sell
loans and negatively affect the transaction price. A significant portion of the
floating rate loans held by an Underlying Fund may be “covenant lite” loans that
contain fewer or less restrictive constraints on the borrower or other
borrower-friendly characteristics and offer less protections for investors than
covenant loans. It may take longer than seven days for transactions in loans to
settle. This may result in cash proceeds not being immediately available to an
Underlying Fund, requiring an Underlying Fund to borrow cash which would
increase an Underlying Fund’s expenses. An Underlying Fund is also subject to
credit
risk
with respect to the issuer of the loan. Investments in junior loans involve a
higher degree of overall risk.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it is
unclear whether these protections are available to an investment in a
loan.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact an Underlying Fund’s performance.
•Index
Sampling Risk:
Because index sampling relies on the securities selected to have economic
characteristics similar to securities in the fund’s benchmark index, it may not
result in the aggregate in investment performance matching that of that fund’s
benchmark index or of other funds that purchased all or substantially all of the
securities in the same index in approximately the same proportions as their
weightings in the index.
•Passive
Management Risk:
A passively managed (or index) fund generally holds constituent securities of
its benchmark index regardless of performance, which could cause the index
fund’s return to be lower than an actively managed fund (which generally seeks
to outperform a benchmark index). Such fund will also perform poorly when the
index performs poorly. In addition, an index fund has operating and other
expenses while an index does not.
As
such, an index fund will tend to underperform the index to some degree over time
even though it will attempt to track its index as closely as
possible.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and ceased publication of a majority of
U.S. dollar LIBOR settings on a representative basis on June 30, 2023. In
addition, global regulators previously announced that, with limited exceptions,
no new LIBOR-based contracts should be entered into after 2021. Actions by
regulators have resulted in the establishment of alternative reference rates to
LIBOR in most major currencies.
•Underlying
Fund Risk: Because an Underlying Fund is available for investment by one or
more “fund of funds” of the Trust and thus may have a significant percentage of
its outstanding shares held by such fund of funds, a change in asset allocation
by the fund of funds could result in large redemptions out of the Underlying
Fund, causing the sale of securities in a short timeframe and potential
increases in expenses to the Underlying Fund and its remaining shareholders,
both of which could negatively impact performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to two broad-based
market indices that correspond to the Fund’s two broad asset
classes. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. To further assist in performance comparison, the returns of a
composite benchmark, the Aristotle Portfolio Optimization Conservative Composite
Benchmark, are presented. The composite benchmark is comprised of 71% Bloomberg
US Aggregate Bond, 17% S&P 500, 7% ICE BofA U.S. 3-Month Treasury Bill, and
5% MSCI EAFE Indices. It reflects broad debt and equity asset class allocations
for the Fund in the current target allocation (the broad equity asset class
being represented generally by benchmarks for domestic and international
equity). The bar chart shows the
performance of the Predecessor Fund’s Class A
shares, which had different fees and expenses than the Fund.
Sales charges applicable to
Predecessor Fund’s Class A shares are reflected in the Average Annual Total
Returns table but not in the bar chart. If these charges were
reflected in the bar chart, returns would be lower than those shown. Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class A return
for the period 1/1/23 through 9/30/23:
2.52%
Best and worst quarterly performance
reflected within the bar chart:
Q2
2020: 10.07%; Q2
2022: (9.01)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
A (incepted
December 31,
2003) (before taxes) |
(19.73)% |
(0.12)% |
1.67% |
Class
A (after
taxes on distributions)
|
(20.97)% |
(1.66)% |
0.34% |
Class
A (after
taxes on distributions and sale of Fund
shares)
|
(10.79)% |
(0.37)% |
0.95% |
Class
C (incepted
December 31,
2003) (before taxes) |
(16.46)% |
0.26% |
1.48% |
Class
I-2 (incepted
December 31,
2012) (before taxes) |
(14.80)% |
1.27% |
2.47% |
Bloomberg
US Aggregate Bond Index (reflects no deductions for
fees, expenses or taxes) |
(13.01)% |
0.02% |
1.06% |
S&P
500 Index (reflects
no deductions for fees, expenses, or taxes)
|
(18.11)% |
9.42% |
12.56% |
Aristotle
Portfolio Optimization Conservative Composite Benchmark1
(reflects
no
deductions for fees, expenses, or taxes)
|
(12.78)% |
2.01% |
3.28% |
1
The Aristotle
Portfolio Optimization Conservative Composite Benchmark represents the blended
performance of 71% Bloomberg US Aggregate Bond, 17% S&P 500, 7% ICE BofA
U.S. 3-Month T-Bill, and 5% MSCI EAFE Indices.
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class A shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
–Aristotle Investment Services, LLC
Sub-Adviser
– Pacific Life Fund Advisors LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
|
|
|
|
|
|
Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
Howard
T. Hirakawa, CFA, Senior Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2003) |
Carleton
J. Muench, CFA, Vice President and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2006) |
Samuel
S. Park, Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2013) |
Edward
Sheng, PhD, CFA, CAIA, Assistant Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2021) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
|
|
|
Aristotle
Portfolio Optimization Moderate Conservative
Fund |
Investment
Goal
This
Fund seeks current income and moderate growth of
capital.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
C |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.50% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
|
A |
C |
I-2 |
Management
Fee1 |
0.45% |
0.45% |
0.45% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
Acquired
Fund Fees and Expenses2 |
0.44% |
0.44% |
0.44% |
Total
Annual Fund Operating Expenses |
1.14% |
1.89% |
0.89% |
Less
Fee Waiver3 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.14% |
1.89% |
0.89% |
|
|
|
|
|
1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administration Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.20% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.25% of the average net assets of the
class. |
2 |
Acquired
Fund Fees and Expenses are expenses incurred indirectly by the Fund
through its ownership of shares in other investment companies.
As
such, they are not reflected in the total annual operating expenses in the
Fund’s financial statements. Acquired Fund Fees and Expenses have been
estimated based on expected allocations to underlying
funds. |
3 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund's Total Annual Fund Operating Expenses exceed 1.22% for Class A,
1.97% for Class C, and 0.97% for Class I-2. Aristotle Investment Services,
LLC may not recoup these waivers in future periods.
|
Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the ten-year
amounts for Class C shares that reflect the conversion to Class A shares six
years after the end of the calendar month in which the shares were purchased and
the fee waiver (expense limitation) which is only reflected for the contractual
periods. Although your actual costs may be higher or lower, the examples show
what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
|
Share
Class |
|
A |
C |
I-2 |
1
year |
$660 |
$292 |
$91 |
3
years |
$892 |
$594 |
$284 |
5
years |
$1,143 |
$1,021 |
$493 |
10
years |
$1,860 |
$2,212 |
$1,096 |
|
|
|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
|
Share
Class |
|
A |
C |
I-2 |
1
year |
$660 |
$192 |
$91 |
3
years |
$892 |
$594 |
$284 |
5
years |
$1,143 |
$1,021 |
$493 |
10
years |
$1,860 |
$2,212 |
$1,096 |
Portfolio
Turnover
The
Fund, which operates as a “fund of funds” that seeks to achieve its investment
goal by investing in unaffiliated exchange-traded funds (“ETFs”) and in other
funds organized as series of the Trust (collectively, the “Underlying Funds”),
does not pay transaction costs, such as commissions, when it buys and sells
shares of Underlying Funds (or “turns over” its holdings); however, a higher
portfolio turnover rate, which reflects a greater number of shares of Underlying
Funds being bought or sold, may result in higher taxes when Fund shares are held
in a taxable account. During the fiscal year ended March 31, 2023, the
portfolio turnover rate of the Pacific Funds Portfolio Optimization
Moderate-Conservative (the “Predecessor Fund”) was 26% of the average value of the Fund. An Underlying
Fund typically does pay transaction costs when it turns over its portfolio so a
higher portfolio turnover rate, which reflects a greater number of securities
being bought or sold, may indicate higher transaction costs and may result in
higher taxes to Fund shareholders who hold Fund shares in a taxable account.
These costs, which are not reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s and Underlying Funds’ performance. For more information
regarding the Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
This
Fund is a “fund of funds” that seeks to achieve its investment goal by investing
in a combination of underlying funds, including funds that are actively managed
by an affiliate of the investment adviser and unaffiliated ETFs. The allocation
of the Fund’s assets between underlying funds sub-advised by an affiliate of the
investment adviser and unaffiliated ETFs will vary over time, although the
sub-adviser currently expects to invest, under normal circumstances, between 40%
and 90% of the Fund’s assets in underlying funds sub-advised by an affiliate of
the investment adviser. Under normal market conditions, the Fund’s exposures to
the two broad asset classes of debt and equity are expected to be within the
following ranges:
|
|
|
|
|
|
|
|
|
BROAD
ASSET CLASS ALLOCATIONS |
|
Debt |
Equity |
50-70% |
30-50% |
The
sub-adviser manages the investment program for the Fund through a multi-step
process that includes:
(1)
Asset Allocation/Portfolio Construction—The
sub-adviser manages the Fund using an approximate 10-year investment horizon. An
asset class target allocation for the Fund is developed that seeks to meet the
Fund’s investment goal using both equity and debt asset classes. The equity
asset class includes narrower asset classes such as domestic
small-capitalization, mid-capitalization and large-capitalization, growth and
value strategies, and international and emerging market equities. The debt asset
class also includes narrower asset classes such as investment grade bonds, high
yield/high risk bonds, bank loans, international debt and emerging market
debt.
The
sub-adviser then determines the amount of the Fund’s assets to invest in each
underlying fund in order to obtain the asset class target allocations for the
Fund.
The
sub-adviser may adjust the broad asset class allocations to any point within the
above ranges, and/or adjust the narrower asset class allocations, and/or the
allocations to the underlying funds, at any time as it deems necessary based on
the sub-adviser’s views of market conditions, its outlook for various asset
classes or other factors (“dynamic positioning”).
For
example, the sub-adviser may engage in dynamic positioning for the Fund by
adjusting the target allocations to reflect a shorter-term view of the markets
or a particular asset class, to seek to capture upside opportunities or mitigate
risk from market events, or for cash management purposes. The sub-adviser would
then make the appropriate adjustments to its underlying funds allocations to
reflect the updated asset class target allocations. This dynamic positioning
would be implemented consistent with the Fund’s risk/return profile and
investment goal.
(2)
Investment Risk Management—The
sub-adviser monitors and analyzes the investment risks of the Fund, evaluates
their impact on the Fund’s risk/return objectives and considers adjustments to
the Fund’s allocations as a result.
Investments
of the underlying funds that invest primarily in debt instruments include
investment grade debt securities, including U.S.
Government
securities, corporate bonds, mortgage-related securities, and other asset-backed
securities; foreign debt securities, including emerging market debt; debt
instruments of varying duration; convertible securities; high yield/high risk
bonds; floating rate loans; and inflation-indexed bonds.
Investments
of the underlying funds that invest primarily in equity instruments include
growth and value stocks; large-, mid- and small-capitalization companies;
sector-specific stocks; and domestic and foreign stocks, including emerging
market stocks.
The
Fund is expected to be as fully invested as practical, although it may maintain
liquidity reserves to meet redemption requests.
The
Fund may invest a significant portion of its assets in any single underlying
fund. The sub-adviser has sole discretion in selecting the underlying funds for
investment and may adjust the Fund’s allocations to the underlying funds,
including adding or removing underlying funds, as it deems appropriate to meet
the Fund’s investment goal.
For
additional information about the Fund and its Underlying Fund investments,
please see the Additional
Information About Principal Investment Strategies and Principal
Risks
section in the Prospectus.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. Because this Fund has a significant
portion of its assets invested in Underlying Funds that invest primarily in debt
instruments, this Fund has more exposure to debt
securities risk
than other Portfolio Optimization Funds. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
As
a “fund of funds,” the Fund is subject to Asset
Allocation Fund of Funds Risk,
Conflicts
of Interest Risk,
and ETF
Risk.
The Fund is also subject to the risks of the Underlying Funds in which it
invests, which may change based on the Fund’s allocations to the Underlying
Funds. The principal risks to the Fund from these Underlying Fund investments
are described below.
•Asset
Allocation Fund of Funds Risk:
Although the theory behind asset allocation is that diversification among asset
classes can help reduce volatility over the long term, you still may lose money
and/or experience price volatility. Performance of and assumptions about asset
classes and Underlying Funds may also diverge from historical performance and
assumptions used to develop the allocations in light of actual market
conditions. There is a risk that you could achieve better returns by investing
in an individual fund or funds representing a single asset class rather than
investing in a fund of funds. Another risk of asset allocation is that the
Fund’s actual asset class allocations may deviate from the intended allocation
because an Underlying Fund’s investments can change due to market movements, the
Underlying Fund Manager’s investment decisions or other factors, which could
result in the Fund’s risk/return target not being met. Fund
shareholders
also bear indirectly their proportionate share of the expenses of the Underlying
Funds in which the Fund invests. As a fund of funds, the Fund is exposed
proportionally to the same risks as the Underlying Funds in which it
invests.
•Conflicts
of Interest Risk:
The investment adviser and sub-adviser are subject to competing interests that
have the potential to influence investment decisions for the Fund. For example,
an Underlying Fund managed by an affiliate of the sub-adviser or the investment
adviser may create an incentive for the sub-adviser to use that fund as an
Underlying Fund. In addition, the sub-adviser may be influenced by its or the
investment adviser’s view of the best interests of Underlying Funds, such as a
view that an Underlying Fund may benefit from additional assets or could be
harmed by redemptions. The sub-adviser seeks to identify and address any
potential conflicts in a manner that is fair for Underlying Funds, the Fund and
the shareholders of the Fund and Underlying Fund. The sub-adviser has adopted a
policy under which investment decisions for the Fund must be made in the best
interests of the Fund and its shareholders, and the sub-adviser may not take
into account the interests of an Underlying Fund and its shareholders when
making investment decisions for the Fund.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares are trading at a discount, the Fund will receive a
price that is less than the ETF’s net asset value per share. In addition, an ETF
may not replicate exactly the performance of the benchmark index it seeks to
track. An investment in an ETF is an investment in another investment company
and therefore, the Fund’s shareholders will indirectly bear a proportionate
share of any fees and expenses of the ETFs in which the Fund invests. The Fund
will pay brokerage commissions in connection with the purchase and sale of
shares of ETFs.
Principal
Risks from Holdings in Underlying Funds
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value. The
market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer's products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as
labor
shortages, increased production costs, or competitive conditions within an
industry.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce an
Underlying Fund’s income or ability to recover amounts due and may reduce the
value of the debt instrument, sometimes dramatically.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, an Underlying Fund’s yield
(and total return) also may be low and an Underlying Fund may experience low or
negative returns. An Underlying Fund may be subject to heightened levels of
interest rate risk because the Federal Reserve has raised, and may continue to
raise, interest rates. As interest rates rise, the value of fixed income
investments will generally decrease.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country or region.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit ratings/scores,
increasing potential default),
prepayment
risk (when interest rates decline, borrowers may pay off their mortgages sooner
than expected which can reduce an Underlying Fund’s returns because an
Underlying Fund may have to reinvest its assets at lower interest rates), call
risk (similar to prepayment risk, an issuer may pay its obligations under a
security sooner than expected), U.S. government securities risk (securities
backed by different U.S. government agencies are subject to varying levels of
credit rating risk), issuer risk (the risk that a private issuer cannot meet its
obligations) and stripped mortgage-related securities risk (these securities are
particularly sensitive to changes in interest rates).
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of an Underlying Fund’s investments denominated in or
with exposure to that foreign currency.
•Leverage
Risk:
An Underlying Fund may invest in forward commitments, futures contracts,
options, or swap agreements, including taking short positions using certain
derivatives, as a principal investment strategy. These derivative investments
give rise to a form of leverage. Leverage is investment exposure that exceeds
the initial amount invested. The loss on a leveraged investment may far exceed
an Underlying Fund’s principal amount invested. Leverage can magnify an
Underlying Fund’s gains and losses and therefore increase its volatility.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. An Underlying Fund may invest in
liquid investments that become illiquid due to financial distress, or
geopolitical events such as sanctions, trading halts or wars. An Underlying Fund
may not be able to sell a holding quickly at the price it has valued the
holding, may be unable to take advantage of market opportunities or may be
forced to sell other more desirable, more liquid securities or sell less liquid
or illiquid securities at a loss if needed to raise cash to conduct operations,
including to meet redemption requests. This risk may be particularly pronounced
with respect to small-capitalization companies.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization
companies.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Growth
Companies Risk:
Growth companies are those that a portfolio manager believes have the potential
for above average or rapid growth but may be subject to greater price volatility
than investments in “undervalued” companies.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries may be
riskier than investments in or exposure to investments in U.S. and other
developed markets for many reasons, including smaller market capitalizations,
greater price volatility, less liquidity, lower credit quality, a higher degree
of political and economic instability, the imposition of economic sanctions,
less governmental regulation and supervision of the financial industry and
markets, and less stringent financial reporting and accounting standards and
controls.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities (including loans) may be more volatile than
investment grade securities.
•Convertible
Securities Risk:
Convertible securities are generally subject to the risks of stocks when the
underlying stock price is high relative to the conversion price (because the
conversion feature is more valuable) and to the risks of debt securities when
the underlying stock price is low relative to the conversion price (because the
conversion feature is less valuable). Convertible securities are also generally
subject to credit
risk,
as they tend to be of lower credit quality, and interest
rate risk, though
they generally are not as sensitive to interest rate changes as conventional
debt securities. A convertible security’s value also tends to increase and
decrease with the underlying stock and typically has less potential for gain or
loss than the underlying stock.
•Geographic
Focus Risk:
If an Underlying Fund invests a significant portion of its assets in a single
country, limited number of countries, or particular geographic region, then the
risk increases that economic, political, social, or other conditions in those
countries or that region will have a significant impact on the Underlying Fund’s
performance. As a result, the Underlying Fund’s performance may be more volatile
than the performance of more geographically diversified funds.
•Inflation-Indexed
Debt Securities Risk:
The principal values of inflation-indexed debt securities tend to increase when
inflation rises and decrease when inflation falls.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper an Underlying Fund’s ability to buy or sell
loans and negatively affect the transaction price. A significant portion of the
floating rate loans held by an Underlying Fund may be “covenant lite” loans that
contain fewer or less restrictive constraints on the borrower or other
borrower-friendly characteristics and offer less protections for investors than
covenant loans. It may take longer than seven days for transactions in loans to
settle. This may result in cash proceeds not being immediately available to an
Underlying Fund, requiring an Underlying Fund to borrow cash which would
increase an Underlying Fund’s expenses. An Underlying Fund is also subject to
credit
risk
with respect to the issuer of the loan. Investments in junior loans involve a
higher degree of overall risk.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it is
unclear whether these protections are available to an investment in a
loan.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact an Underlying Fund’s performance.
•Index
Sampling Risk:
Because index sampling relies on the securities selected to have economic
characteristics similar to securities in the fund’s benchmark index, it may not
result in the aggregate in investment performance matching that of that fund’s
benchmark index or of other funds that purchased all or substantially all of the
securities in the same index in approximately the same proportions as their
weightings in the index.
•Passive
Management Risk:
A passively managed (or index) fund generally holds constituent securities of
its benchmark index regardless of performance, which could cause the index
fund’s return to be lower than an actively managed fund (which generally seeks
to outperform a benchmark index). Such fund will also perform poorly when the
index performs poorly. In addition, an index fund has operating and other
expenses while an index does not. As such, an index fund will tend to
underperform the index to some degree over time even though it will attempt to
track its index as closely as possible.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 ceased publication of a majority of U.S.
dollar LIBOR settings on a representative basis on June 30, 2023. In addition,
global regulators previously announced that, with limited exceptions, no new
LIBOR-based contracts should be entered into after 2021. Actions by regulators
have resulted in the establishment of alternative reference rates to LIBOR in
most major currencies.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•Underlying
Fund Risk:
Because an Underlying Fund is available for investment by one or more “fund of
funds” of the Trust and thus may have a significant percentage of its
outstanding shares held by such fund of funds, a change in asset allocation by
the fund of funds could result in large redemptions out of the Underlying Fund,
causing the sale of securities in a short timeframe and potential increases in
expenses to the Underlying Fund and its remaining shareholders, both of which
could negatively impact performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to two broad-based
market indices that correspond to the Fund’s two broad asset
classes. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. To further assist in performance comparison, the returns of a
composite benchmark, the Aristotle Portfolio Optimization Moderate-Conservative
Composite Benchmark, are presented. The composite benchmark is comprised of 55%
Bloomberg US Aggregate Bond, 30% S&P 500, 10% MSCI EAFE, and 5% ICE BofA
U.S. 3-Month Treasury Bill Indices. It reflects broad debt and equity asset
class allocations for the Fund in the current target allocation (the broad
equity asset class being represented generally
by
benchmarks for domestic and international equity). The bar chart shows the
performance of the Predecessor Fund’s Class A shares.
Sales
charges applicable to the Predecessor Fund’s Class A shares are reflected in the
Average Annual Total Returns table but not in the bar chart. If
these charges were reflected in the bar chart, returns would be lower than those
shown. Performance reflects fee waivers or expense limitations, if any, that
were in effect during the periods presented. Past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information may be
obtained at our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class A return
for the period 1/1/23 through 9/30/23: 3.29%
Best and worst quarterly performance
reflected within the bar chart:
Q2
2020: 12.87%; Q1
2020: (11.79)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
A (incepted
December 31,
2003) (before taxes) |
(21.48)% |
0.68% |
2.96% |
Class A (after taxes on distributions)
|
(23.69)% |
(1.50)% |
1.28% |
Class A (after taxes on distributions and sale of Fund
shares) |
(11.09)% |
0.25% |
1.99% |
Class
C (incepted
December 31,
2003) (before taxes) |
(18.28)% |
1.07% |
2.79% |
Class
I-2 (incepted
December 31,
2012) (before taxes) |
(16.81)% |
2.07% |
3.78% |
Bloomberg
US Aggregate Bond Index (reflects no deductions for
fees, expenses or taxes) |
(13.01)% |
0.02% |
1.06% |
S&P 500 Index (reflects no deductions for fees, expenses, or
taxes) |
(18.11)% |
9.42% |
12.56% |
Aristotle
Portfolio Optimization Moderate-Conservative Composite
Benchmark1
(reflects no deductions for fees, expenses, or
taxes) |
(13.71)% |
3.36% |
5.01% |
1
Aristotle
Portfolio Optimization Moderate Conservative Composite Benchmark represents the
blended performance of 55% Bloomberg US Aggregate Bond, 30% S&P 500, 10%
MSCI EAFE, and 5% ICE BofA U.S. 3-Month T-Bill
Indices.
The
after-tax returns (a) are calculated using the highest historical individual
federal marginal income tax rates and do not reflect the
impact of state and local
taxes; (b) are shown for the
Predecessor Fund’s Class A shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Pacific Life Fund Advisors LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Investment Adviser |
Experience with
Fund |
Howard
T. Hirakawa, CFA, Senior Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2003) |
Carleton
J. Muench, CFA, Vice President and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2006) |
Samuel
S. Park, Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2013) |
Edward
Sheng, PhD, CFA, CAIA, Assistant Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2021) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Portfolio Optimization Moderate
Fund |
Investment
Goal
This Fund seeks long-term growth of capital and low to moderate
income.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
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A |
C |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.50% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
I-2 |
Management
Fee1 |
0.45% |
0.45% |
0.45% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
Acquired
Fund Fees and Expenses2 |
0.42% |
0.42% |
0.42% |
Total
Annual Fund Operating Expenses |
1.12% |
1.87% |
0.87% |
Less
Fee Waiver3 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.12% |
1.87% |
0.87% |
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1 |
The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The
Advisory Fee is borne by the Fund at the same annual rate for all share
classes of 0.20% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.25% of the average net assets of the class. |
2 |
Acquired Fund Fees
and Expenses are expenses incurred indirectly by the Fund through its
ownership of shares in other investment companies and have been estimated
based on expected allocations to underlying
funds. |
3 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund's Total Annual Fund Operating Expenses exceed 1.23% for Class A,
1.98% for Class C, and 0.98% for Class I-2. Aristotle Investment Services,
LLC may not recoup these waivers in future periods.
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Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the ten-year
amounts for Class C shares that reflect the conversion to Class A shares six
years after the end of the calendar month in which the shares were purchased and
the fee waiver (expense limitation) which is only reflected for the contractual
periods. Although your actual costs may be higher or lower, the examples show
what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
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Share
Class |
|
A |
C |
I-2 |
1
year |
$658 |
$290 |
$89 |
3
years |
$886 |
$588 |
$278 |
5
years |
$1,133 |
$1,011 |
$482 |
10
years |
$1,838 |
$2,190 |
$1,073 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
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Share
Class |
|
A |
C |
I-2 |
1
year |
$658 |
$190 |
$89 |
3
years |
$886 |
$588 |
$278 |
5
years |
$1,133 |
$1,011 |
$482 |
10
years |
$1,838 |
$2,190 |
$1,073 |
Portfolio
Turnover
The
Fund, which operates as a “fund of funds” that seeks to achieve its investment
goal by investing in unaffiliated exchange-traded funds (“ETFs”) and in other
funds organized as series of the Trust (collectively, the “Underlying Funds”),
does not pay transaction costs, such as commissions, when it buys and sells
shares of Underlying Funds (or “turns over” its holdings); however, a higher
portfolio turnover rate, which reflects a greater number of shares of Underlying
Funds being bought or sold, may result in higher taxes when Fund shares are held
in a taxable account. During the fiscal year ended March 31, 2023, the portfolio
turnover rate of Pacific Funds Portfolio Optimization Moderate (the “Predecessor
Fund”) was 32% of the average value of the Fund. An Underlying
Fund typically does pay transaction costs when it turns over its portfolio so a
higher portfolio turnover rate, which reflects a greater number of securities
being bought or sold, may indicate higher transaction costs, and may result in
higher taxes to Fund shareholders who hold Fund shares in a taxable account.
These costs, which are not reflected in Annual
Fund Operating Expenses
or in the
Examples,
affect the Fund’s and Underlying Funds’ performance. For more information
regarding the Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
This
Fund is a “fund of funds” that seeks to achieve its investment goal by investing
in a combination of underlying funds, including funds that are actively managed
by an affiliate of the investment adviser and unaffiliated ETFs. The allocation
of the Fund’s assets between underlying funds sub-advised by an affiliate of the
investment adviser and unaffiliated ETFs will vary over time, although the
sub-adviser currently expects to invest, under normal circumstances, between 40%
and 90% of the Fund’s assets in underlying funds sub-advised by an affiliate of
the investment adviser. Under normal market conditions, the Fund’s exposures to
the two broad asset classes of debt and equity are expected to be within the
following ranges:
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BROAD
ASSET CLASS ALLOCATIONS |
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Debt |
Equity |
30-50% |
50-70% |
The
sub-adviser manages the investment program for the Fund through a multi-step
process that includes:
(1)
Asset Allocation/Portfolio Construction—The
sub-adviser manages the Fund using an approximate 10-year investment horizon. An
asset class target allocation for the Fund is developed that seeks to meet the
Fund’s investment goal using both equity and debt asset classes. The equity
asset class includes narrower asset classes such as domestic
small-capitalization, mid-capitalization and large-capitalization, growth and
value strategies, and international and emerging market equities. The debt asset
class also includes narrower asset classes such as investment grade bonds, high
yield/high risk bonds, bank loans, international debt and emerging market
debt.
The
sub-adviser then determines the amount of the Fund’s assets to invest in each
underlying fund in order to obtain the asset class target allocations for the
Fund.
The
sub-adviser may adjust the broad asset class allocations to any point within the
above ranges, and/or adjust the narrower asset class allocations, and/or the
allocations to the underlying funds, at any time as it deems necessary based on
the sub-adviser’s views of market conditions, its outlook for various asset
classes or other factors (“dynamic positioning”).
For
example, the sub-adviser may engage in dynamic positioning for the Fund by
adjusting the target allocations to reflect a shorter-term view of the markets
or a particular asset class, to seek to capture upside opportunities or mitigate
risk from market events, or for cash management purposes. The sub-adviser would
then make the appropriate adjustments to its underlying fund allocations to
reflect the updated asset class target allocations. This dynamic positioning
would be implemented consistent with the Fund’s risk/return profile and
investment goal.
(2)
Investment Risk Management—The
sub-adviser monitors and analyzes the investment risks of the Fund, evaluates
their impact on the Fund’s risk/return objectives and considers adjustments to
the Fund’s allocations as a result.
Investments
of the underlying fund that invest primarily in debt instruments include
investment grade debt securities, including U.S.
Government
securities, corporate bonds, mortgage-related securities, and other asset-backed
securities; foreign debt securities, including emerging market debt; debt
instruments of varying duration; convertible securities; high yield/high risk
bonds; floating rate loans; and inflation-indexed bonds.
Investments
of the underlying funds that invest primarily in equity instruments include
growth and value stocks; large-, mid- and small-capitalization companies;
sector-specific stocks; and domestic and foreign stocks, including emerging
market stocks.
The
Fund is expected to be as fully invested as practical, although it may maintain
liquidity reserves to meet redemption requests.
The
Fund may invest a significant portion of its assets in any single underlying
fund. The sub-adviser has sole discretion in selecting the underlying funds for
investment and may adjust the Fund’s allocations to the underlying funds,
including adding or removing underlying funds, as it deems appropriate to meet
the Fund’s investment goal.
For
additional information about the Fund and its Underlying Fund investments,
please see the Additional
Information About Principal Investment Strategies and Principal
Risks
section in the Prospectus.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. Because this Fund has a significant
portion of its assets invested in Underlying Funds that invest primarily in
equity instruments, this Fund has more exposure to equity
securities risk
than other Portfolio Optimization Funds. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
As
a “fund of funds,” the Fund is subject to Asset
Allocation Fund of Funds Risk,
Conflicts
of Interest Risk,
and ETF
Risk.
The Fund is also subject to the risks of the Underlying Funds in which it
invests, which may change based on the Fund’s allocations to the Underlying
Funds. The principal risks to the Fund from these Underlying Fund investments
are described below.
•Asset
Allocation Fund of Funds Risk:
Although the theory behind asset allocation is that diversification among asset
classes can help reduce volatility over the long term, you still may lose money
and/or experience price volatility. Performance of and assumptions about asset
classes and Underlying Funds may also diverge from historical performance and
assumptions used to develop the allocations in light of actual market
conditions. There is a risk that you could achieve better returns by investing
in an individual fund or funds representing a single asset class rather than
investing in a fund of funds. Another risk of asset allocation is that the
Fund’s actual asset class allocations may deviate from the intended allocation
because an Underlying Fund’s investments can change due to market movements, the
Underlying Fund Manager’s investment decisions, or other factors, which could
result in the Fund’s risk/return target not being met. Fund
shareholders
also bear indirectly their proportionate share of the expenses of the Underlying
Funds in which the Fund invests. As a fund of funds, the Fund is exposed
proportionally to the same risks as the Underlying Funds in which it
invests.
•Conflicts
of Interest Risk:
The investment adviser and sub-adviser are subject to competing interests that
have the potential to influence investment decisions for the Fund. For example,
an Underlying Fund managed by an affiliate of the sub-adviser or the investment
adviser may create an incentive for the sub-adviser to use that fund as an
Underlying Fund. In addition, the sub-adviser may be influenced by its or the
investment adviser’s view of the best interests of Underlying Funds, such as a
view that an Underlying Fund may benefit from additional assets or could be
harmed by redemptions. The sub-adviser seeks to identify and address any
potential conflicts in a manner that is fair for Underlying Funds, the Fund and
the shareholders of the Fund and Underlying Fund. The sub-adviser has adopted a
policy under which investment decisions for the Fund must be made in the best
interests of the Fund and its shareholders, and the sub-adviser may not take
into account the interests of an Underlying Fund and its shareholders when
making investment decisions for the Fund.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares are trading at a discount, the Fund will receive a
price that is less than the ETF’s net asset value per share. In addition, an ETF
may not replicate exactly the performance of the benchmark index it seeks to
track. An investment in an ETF is an investment in another investment company
and therefore, the Fund’s shareholders will indirectly bear a proportionate
share of any fees and expenses of the ETFs in which the Fund invests. The Fund
will pay brokerage commissions in connection with the purchase and sale of
shares of ETFs.
Principal
Risks from Holdings in Underlying Funds
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer's products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market
conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization companies.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit ratings/scores,
increasing potential default), prepayment risk (when interest rates decline,
borrowers may pay off their mortgages sooner than expected which can reduce an
Underlying Fund’s returns because an Underlying Fund may have to reinvest its
assets at lower interest rates), call risk (similar to prepayment risk, an
issuer may pay its obligations under a security sooner than expected), U.S.
government securities risk (securities backed by different U.S. government
agencies are subject to varying levels of credit rating risk), issuer risk (the
risk that a private issuer cannot meet its obligations) and stripped
mortgage-related securities risk (these securities are particularly sensitive to
changes in interest rates).
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•Leverage
Risk:
An Underlying Fund may invest in forward commitments, futures contracts,
options, or swap agreements, including taking short positions using certain
derivatives, as a principal investment strategy. These derivative investments
give rise to a form of leverage. Leverage is investment exposure that exceeds
the initial amount invested. The loss on a leveraged investment may far exceed
an Underlying Fund’s principal amount invested. Leverage can magnify an
Underlying Fund’s gains and losses and therefore increase its volatility.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make
investments
in foreign issuers more volatile and less liquid than U.S. investments. Less
stringent regulatory, accounting, and disclosure requirements and general
supervision for issuers and markets are more common in certain foreign
countries. Enforcing legal rights can be difficult, costly, and slow in certain
foreign countries, and can be particularly difficult against foreign
governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country or region.
•Growth
Companies Risk:
Growth companies are those that a portfolio manager believes have the potential
for above average or rapid growth but may be subject to greater price volatility
than investments in “undervalued” companies.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Preferred
Stock Risk:
Preferred stock represents an equity interest in a company that generally
entitles the holder to receive, in preference to the holders of other stocks
such as common stock, dividends and a fixed share of the proceeds resulting from
a liquidation of the company. The market value of preferred stock is subject to
company-specific and market risks applicable generally to equity securities and
is also sensitive to changes in the company’s creditworthiness, the ability of
the company to make payments on the preferred stock, and changes in interest
rates, typically declining in value if interest rates rise. Convertible
preferred stock allows the holder to convert the preferred shares into a fixed
number of common shares, usually after a predetermined date. Like preferred
stock, convertible preferred stock generally pays a dividend at a specified rate
and has preference over common stock in the payment of dividends but ranks
behind bonds, including convertible bonds, in priority upon
liquidation.
•Warrants
and Rights Risk:
Warrants and rights may lack a liquid secondary market for resale. The prices of
warrants and rights may fluctuate as a result of speculation or other factors.
Warrants and rights can provide a greater potential for profit or loss than an
equivalent investment in the underlying security. Prices of warrants and rights
do not necessarily move in tandem with the prices of their underlying securities
and therefore are highly volatile and speculative investments. If a warrant or
right expires
without
being exercised, the Fund will lose any amount paid for the warrant or
right.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of an Underlying Fund’s investments denominated in or
with exposure to that foreign currency.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce an
Underlying Fund’s income or ability to recover amounts due and may reduce the
value of the debt instrument, sometimes dramatically.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, an Underlying Fund’s yield
(and total return) also may be low and an Underlying Fund may experience low or
negative returns. An Underlying Fund may be subject to heightened levels of
interest rate risk because the Federal Reserve has raised, and may continue to
raise, interest rates. As interest rates rise, the value of fixed income
investments will generally decrease.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. An Underlying Fund may invest in
liquid investments that become illiquid due to financial distress, or
geopolitical events such as sanctions, trading halts or wars. An Underlying Fund
may not be able to sell a holding quickly at the price it has valued the
holding, may be unable to take advantage of market opportunities or may be
forced to sell other more desirable, more liquid securities or sell less liquid
or illiquid securities at a loss if needed to raise cash to conduct operations,
including to meet redemption requests. This risk may be particularly pronounced
with respect to small-capitalization companies.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries may be
riskier than investments in or exposure to investments in U.S. and other
developed markets for many reasons, including smaller market capitalizations,
greater price volatility, less liquidity, lower credit quality, a higher degree
of political and economic instability, the imposition of economic sanctions,
less governmental regulation and supervision of the financial industry and
markets, and less stringent financial reporting and accounting standards and
controls.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities may be more volatile than investment grade
securities.
•Geographic
Focus Risk:
If an Underlying Fund invests a significant portion of its assets in a single
country, limited number of countries, or particular geographic region, then the
risk increases that economic, political, social, or other conditions in those
countries or that region will have a significant impact on the Underlying Fund’s
performance. As a result, the Underlying Fund’s performance may be more volatile
than the performance of more geographically diversified funds.
•Convertible
Securities Risk:
Convertible securities are generally subject to the risks of stocks when the
underlying stock price is high relative to the conversion price (because the
conversion feature is more valuable) and to the risks of debt securities when
the underlying stock price is low relative to the conversion price (because the
conversion feature is less valuable). Convertible securities are also generally
subject to credit
risk,
as they tend to be of lower credit quality, and interest
rate risk, though
they generally are not as sensitive to interest rate changes as conventional
debt securities. A convertible security’s value also tends to increase and
decrease with the underlying stock and typically has less potential for gain or
loss than the underlying stock.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact an Underlying Fund’s performance.
•Index
Sampling Risk:
Because index sampling relies on the securities selected to have economic
characteristics similar to securities in the fund’s benchmark index, it may not
result in the aggregate in investment performance matching that of that fund’s
benchmark index or of other funds that purchased all or substantially all of the
securities in the same index in approximately the same proportions as their
weightings in the index.
•Passive
Management Risk:
A passively managed (or index) fund generally holds constituent securities of
its benchmark index regardless of performance, which could cause the index
fund’s return to be lower than an actively managed fund (which generally seeks
to outperform a benchmark index). Such fund will also perform poorly when the
index performs poorly. In addition, an index fund has operating and other
expenses while an index does not. As such, an index fund will tend to
underperform the index to some degree over time even though it will attempt to
track its index as closely as possible.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper an Underlying Fund’s ability to buy or sell
loans and negatively affect the transaction price. A significant portion of the
floating rate loans held by an Underlying Fund may be “covenant lite” loans that
contain fewer or less restrictive constraints on the borrower or other
borrower-friendly characteristics and offer less protections for investors than
covenant loans. It may take longer than seven days for transactions in loans to
settle. This may result in cash proceeds not being immediately available to an
Underlying Fund, requiring an Underlying Fund to borrow cash which would
increase an Underlying Fund’s expenses. An Underlying Fund is also subject to
credit
risk
with respect to the issuer of the loan.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it is
unclear whether these protections are available to an investment in a
loan.
•Underlying
Fund Risk:
Because an Underlying Fund is available for investment by one or more “fund of
funds” of the Trust and thus may have a significant percentage of its
outstanding shares held by such fund of funds, a change in asset allocation by
the fund of funds could result in large redemptions out of the Underlying Fund,
causing the sale of securities in a short timeframe and potential increases in
expenses to the Underlying Fund and its remaining shareholders, both of which
could negatively impact performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to two broad-based
market indices that correspond to the Fund’s two broad asset
classes. The Fund performance shown below is the performance of
the
Predecessor
Fund as a result of a reorganization of the Predecessor Fund into the Fund on
April 17, 2023 (the “Reorganization”). The Predecessor Fund was managed by the
same portfolio management team using investment policies, objectives, guidelines
and restrictions that were substantially similar to those of the Fund. Prior to
the Reorganization, the Fund had not yet commenced operations. To further assist
in performance comparison, the returns of a composite benchmark, the Aristotle
Portfolio Optimization Moderate Composite Benchmark, are presented. The
composite benchmark is comprised of 45% S&P 500, 38% Bloomberg US Aggregate
Bond, 15% MSCI EAFE, and 2% ICE BofA U.S. 3-Month Treasury Bill Indices. It
reflects broad debt and equity asset class allocations for the Fund in the
current target allocation (the broad equity asset class being represented
generally by benchmarks for domestic and international equity). The bar chart
shows the performance of the Predecessor Fund’s Class A shares.
Sales
charges applicable to Class A shares are reflected in the Average Annual Total
Returns table but not in the bar chart. If these charges were
reflected in the bar chart, returns would be lower than those shown. Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class A return for the period
1/1/23 through 9/30/23: 4.72%
Best and worst quarterly performance
reflected within the bar chart:
Q2
2020: 16.23%; Q1
2020: (15.47)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
A (incepted
December 31,
2003) (before taxes) |
(23.21)% |
1.90% |
4.47% |
Class A (after taxes on distributions)
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(26.57)% |
(0.89)% |
2.44% |
Class A (after taxes on distributions and sale of Fund
shares) |
(11.26)% |
1.19% |
3.22% |
Class
C (incepted
December 31,
2003) (before taxes) |
(20.06)% |
2.30% |
4.29% |
Class
I-2 (incepted
December 31,
2012) (before taxes) |
(18.53)% |
3.33% |
5.32% |
S&P
500 Index
(reflects no deductions for
fees, expenses or taxes) |
(18.11)% |
9.42% |
12.56% |
Bloomberg US Aggregate Bond Index
(reflects no deductions for fees, expenses, or
taxes) |
(13.01)% |
0.02% |
1.06% |
Aristotle
Portfolio Optimization Moderate Composite Benchmark1 (reflects no deductions for fees, expenses or
taxes) |
(14.95)% |
4.82% |
6.93% |
1
Aristotle
Portfolio Optimization Moderate Composite represents the blended performance of
45% S&P 500, 38% Bloomberg US Aggregate Bond, 15% MSCI EAFE, and 2% ICE BofA
U.S. 3-Month T-Bill Indices.
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class A shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
–Aristotle Investment Services, LLC
Sub-Adviser
– Pacific Life Fund Advisors LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Investment Adviser |
Experience with
Fund |
Howard
T. Hirakawa, CFA, Senior Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2003) |
Carleton
J. Muench, CFA, Vice President and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2006) |
Samuel
S. Park, Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2013) |
Edward
Sheng, PhD, CFA, CAIA, Assistant Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2021) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Portfolio Optimization Growth Fund |
Investment
Goal
This Fund seeks moderately high, long-term capital appreciation
with low, current income.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
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A |
C |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.50% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
I-2 |
Management
Fee1 |
0.45% |
0.45% |
0.45% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
Acquired
Fund Fees and Expenses2 |
0.39% |
0.39% |
0.39% |
Total
Annual Fund Operating Expenses |
1.09% |
1.84% |
0.84% |
Less
Fee Waiver3 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.09% |
1.84% |
0.84% |
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1 |
The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The
Advisory Fee is borne by the Fund at the same annual rate for all share
classes of 0.20% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.25% of the average net assets of the
class. |
2 |
Acquired
Fund Fees and Expenses are expenses incurred indirectly by the Fund
through its ownership of shares in other investment companies and have
been estimated based on expected allocations to underlying
funds. |
3 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 1.25% for Class A,
2.00% for Class C, and 1.00% for Class I-2. Aristotle Investment Services,
LLC may not recoup these waivers in future periods.
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Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the ten-year
amounts for Class C shares that reflect the conversion to Class A shares six
years after the end of the calendar month in which the shares were purchased and
the fee waiver (expense limitation) which is only reflected for the contractual
periods. Although your actual costs may be higher or lower, the examples show
what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I-2 |
1
year |
$655 |
$287 |
$86 |
3
years |
$878 |
$579 |
$268 |
5
years |
$1,118 |
$996 |
$466 |
10
years |
$1,806 |
$2,159 |
$1,037 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I-2 |
1
year |
$655 |
$187 |
$86 |
3
years |
$878 |
$579 |
$268 |
5
years |
$1,118 |
$996 |
$466 |
10
years |
$1,806 |
$2,159 |
$1,037 |
Portfolio
Turnover
The
Fund, which operates as a “fund of funds” that seeks to achieve its investment
goal by investing in unaffiliated exchange-traded funds (“ETFs”) and in other
funds organized as series of the Trust (collectively, the “Underlying Funds”),
does not pay transaction costs, such as commissions, when it buys and sells
shares of Underlying Funds (or “turns over” its holdings); however, a higher
portfolio turnover rate, which reflects a greater number of shares of Underlying
Funds being bought or sold, may result in higher taxes when Fund shares are held
in a taxable account. During the fiscal year ended March 31, 2023, the portfolio
turnover rate of Pacific Funds Portfolio Optimization Growth (the “Predecessor
Fund”) was 30% of the average value of the Fund. An Underlying
Fund typically does pay transaction costs when it turns over its portfolio so a
higher portfolio turnover rate, which reflects a greater number of securities
being bought or sold, may indicate higher transaction costs and may result in
higher taxes to Fund shareholders who hold Fund shares in a taxable account.
These costs, which are not reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s and Underlying Funds’ performance. For more information
regarding the Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
This
Fund is a “fund of funds” that seeks to achieve its investment goal by investing
in a combination of underlying funds, including funds that are actively managed
by an affiliate of the investment adviser and unaffiliated ETFs. The allocation
of the Fund’s assets between underlying funds sub-advised by an affiliate of the
investment adviser and unaffiliated ETFs will vary over time, although the
sub-adviser currently expects to invest, under normal circumstances, between 40%
and 90% of the Fund’s assets in underlying funds sub-advised by an affiliate of
the investment adviser. Under normal market conditions, the Fund’s exposures to
the two broad asset classes of debt and equity are expected to be within the
following ranges:
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BROAD
ASSET CLASS ALLOCATIONS |
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Debt |
Equity |
15-30% |
70-85% |
The
sub-adviser manages the investment program for the Fund through a multi-step
process that includes:
(1)
Asset Allocation/Portfolio Construction—The
sub-adviser manages the Fund using an approximate 10-year investment horizon. An
asset class target allocation for the Fund is developed that seeks to meet the
Fund’s investment goal using both equity and debt asset classes. The equity
asset class includes narrower asset classes such as domestic
small-capitalization, mid-capitalization and large-capitalization, growth and
value strategies, and international and emerging market equities. The debt asset
class also includes narrower asset classes such as investment grade bonds, high
yield/high risk bonds, bank loans, international debt and emerging market debt.
The
sub-adviser then determines the amount of the Fund’s assets to invest in each
underlying fund in order to obtain the asset class target allocations for the
Fund.
The
sub-adviser may adjust the broad asset class allocations to any point within the
above ranges, and/or adjust the narrower asset class allocations, and/or the
allocations to the underlying funds, at any time as it deems necessary based on
the sub-adviser’s views of market conditions, its outlook for various asset
classes or other factors (“dynamic positioning”).
For
example, the sub-adviser may engage in dynamic positioning for the Fund by
adjusting the target allocations to reflect a shorter-term view of the markets
or a particular asset class, to seek to capture upside opportunities or mitigate
risk from market events, or for cash management purposes. The sub-adviser would
then make the appropriate adjustments to its underlying fund allocations to
reflect the updated asset class target allocations. This dynamic positioning
would be implemented consistent with the Fund’s risk/return profile and
investment goal.
(2)
Investment Risk Management—
The sub-adviser monitors and analyzes the investment risks of the Fund,
evaluates their impact on the Fund’s risk/return objectives and considers
adjustments to the Fund’s allocations as a result.
Investments
of the underlying funds that invest primarily in debt instruments include
investment grade debt securities, including U.S. Government securities,
corporate bonds, mortgage-related securities,
and
other asset-backed securities; foreign debt securities, including emerging
market debt; debt instruments of varying duration; convertible securities; high
yield/high risk bonds; floating rate loans; and inflation-indexed
bonds.
Investments
of the underlying funds that invest primarily in equity instruments include
growth and value stocks; large-, mid- and small-capitalization companies;
sector-specific stocks; and domestic and foreign stocks, including emerging
market stocks.
The
Fund is expected to be as fully invested as practical, although it may maintain
liquidity reserves to meet redemption requests.
The
Fund may invest a significant portion of its assets in any single underlying
fund. The sub-adviser has sole discretion in selecting the underlying funds for
investment and may adjust the Fund’s allocations to the underlying funds,
including adding or removing underlying funds, as it deems appropriate to meet
the Fund’s investment goal.
For
additional information about the Fund and its Underlying Fund investments,
please see the Additional
Information About Principal Investment Strategies and Principal
Risks
section in the Prospectus.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. Because this Fund has a significant
portion of its assets invested in Underlying Funds that invest primarily in
equity instruments, this Fund has more exposure to equity
securities risk
than other Portfolio Optimization Funds. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
As
a “fund of funds,” the Fund is subject to Asset
Allocation Fund of Funds Risk,
Conflicts
of Interest Risk,
and ETF
Risk.
The Fund is also subject to the risks of the Underlying Funds in which it
invests, which may change based on the Fund’s allocations to the Underlying
Funds. The principal risks to the Fund from these Underlying Fund investments
are described below.
•Asset
Allocation Fund of Funds Risk:
Although the theory behind asset allocation is that diversification among asset
classes can help reduce volatility over the long term, you still may lose money
and/or experience price volatility. Performance of and assumptions about asset
classes and Underlying Funds may also diverge from historical performance and
assumptions used to develop the allocations in light of actual market
conditions. There is a risk that you could achieve better returns by investing
in an individual fund or funds representing a single asset class rather than
investing in a fund of funds. Another risk of asset allocation is that the
Fund’s actual asset class allocations may deviate from the intended allocation
because an Underlying Fund’s investments can change due to market movements, the
Underlying Fund Manager’s investment decisions or other factors, which could
result in the Fund’s risk/return target not being met. Fund shareholders also
bear indirectly their proportionate share of
the
expenses of the Underlying Funds in which the Fund invests. As a fund of funds,
the Fund is exposed proportionally to the same risks as the Underlying Funds in
which it invests.
•Conflicts
of Interest Risk:
The investment adviser and sub-adviser are subject to competing interests that
have the potential to influence investment decisions for the Fund. For example,
an Underlying Fund managed by an affiliate of the sub-adviser or the investment
adviser may create an incentive for the sub-adviser to use that fund as an
Underlying Fund. In addition, the sub-adviser may be influenced by its or the
investment adviser’s view of the best interests of Underlying Funds, such as a
view that an Underlying Fund may benefit from additional assets or could be
harmed by redemptions. The sub-adviser seeks to identify and address any
potential conflicts in a manner that is fair for Underlying Funds, the Fund and
the shareholders of the Fund and Underlying Fund. The sub-adviser has adopted a
policy under which investment decisions for the Fund must be made in the best
interests of the Fund and its shareholders, and the sub-adviser may not take
into account the interests of an Underlying Fund and its shareholders when
making investment decisions for the Fund.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares are trading at a discount, the Fund will receive a
price that is less than the ETF’s net asset value per share. In addition, an ETF
may not replicate exactly the performance of the benchmark index it seeks to
track. An investment in an ETF is an investment in another investment company
and therefore, the Fund’s shareholders will indirectly bear a proportionate
share of any fees and expenses of the ETFs in which the Fund invests. The Fund
will pay brokerage commissions in connection with the purchase and sale of
shares of ETFs.
Principal
Risks from Holdings in Underlying Funds
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to a particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization companies.
•Growth
Companies Risk:
Growth companies are those that a portfolio manager believes have the potential
for above average or rapid growth but may be subject to greater price volatility
than investments in “undervalued” companies.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Preferred
Stock Risk:
Preferred stock represents an equity interest in a company that generally
entitles the holder to receive, in preference to the holders of other stocks
such as common stock, dividends and a fixed share of the proceeds resulting from
a liquidation of the company. The market value of preferred stock is subject to
company-specific and market risks applicable generally to equity securities and
is also sensitive to changes in the company’s creditworthiness, the ability of
the company to make payments on the preferred stock, and changes in interest
rates, typically declining in value if interest rates rise. Convertible
preferred stock allows the holder to convert the preferred shares into a fixed
number of common shares, usually after a predetermined date. Like preferred
stock, convertible preferred stock generally pays a dividend at a specified rate
and has preference over common stock in the payment of dividends but ranks
behind bonds, including convertible bonds, in priority upon
liquidation.
•Warrants
and Rights Risk:
Warrants and rights may lack a liquid secondary market for resale. The prices of
warrants and rights may fluctuate as a result of speculation or other factors.
Warrants and rights can provide a greater potential for profit or loss than an
equivalent investment in the underlying security. Prices of warrants and rights
do not necessarily move in tandem with the prices of their underlying securities
and therefore are highly volatile and speculative investments. If a warrant or
right expires without being exercised, the Fund will lose any amount paid for
the warrant or right.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce an
Underlying Fund’s income or ability to recover amounts due and may reduce the
value of the debt instrument, sometimes dramatically.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, an Underlying Fund’s yield
(and total return) also may be low and an Underlying Fund may experience low or
negative returns. An Underlying Fund may be subject to heightened levels of
interest rate risk because the Federal Reserve has raised, and may continue to
raise, interest rates. As interest rates rise, the value of fixed income
investments will generally decrease.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit ratings/scores,
increasing potential default), prepayment risk (when interest rates decline,
borrowers may pay off their mortgages sooner than expected which can reduce an
Underlying Fund’s returns because an Underlying Fund may have to reinvest its
assets at lower interest rates), call risk (similar to prepayment risk, an
issuer may pay its obligations under a security sooner than expected), U.S.
government securities risk (securities backed by different U.S. government
agencies are subject to varying levels of credit rating risk), issuer risk (the
risk that a private issuer cannot meet its obligations) and stripped
mortgage-related securities risk (these securities are particularly sensitive to
changes in interest rates).
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of an Underlying Fund’s investments denominated in or
with exposure to that foreign currency.
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt
or provide financial support to U.S. government agencies, instrumentalities, or
sponsored enterprises if those entities are not able to meet their financial
obligations.
•Leverage
Risk:
An Underlying Fund may invest in forward commitments, futures contracts,
options, or swap agreements, including taking short positions using certain
derivatives, as a principal investment strategy. These derivative investments
give rise to a form of leverage. Leverage is investment exposure that exceeds
the initial amount invested. The loss on a leveraged investment may far exceed
an Underlying Fund’s principal amount invested. Leverage can magnify an
Underlying Fund’s gains and losses and therefore increase its volatility.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country or region.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. An Underlying Fund may invest in
liquid investments that become illiquid due to financial distress, or
geopolitical events such as sanctions, trading halts or wars. An Underlying Fund
may not be able to sell a holding quickly at the price it has valued the
holding, may be unable to take advantage of market opportunities or may be
forced to sell other more desirable, more liquid securities or sell less liquid
or illiquid securities at a loss if needed to raise cash to conduct operations,
including to meet redemption requests. This risk may be particularly pronounced
with respect to small-capitalization companies.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries may be
riskier than investments in or exposure to investments in U.S. and other
developed markets for many reasons, including smaller market capitalizations,
greater price volatility, less liquidity, lower credit quality, a higher degree
of political and economic instability, the imposition of economic sanctions,
less governmental regulation and supervision of
the
financial industry and markets, and less stringent financial reporting and
accounting standards and controls.
•Geographic
Focus Risk:
If an Underlying Fund invests a significant portion of its assets in a single
country, limited number of countries, or particular geographic region, then the
risk increases that economic, political, social, or other conditions in those
countries or that region will have a significant impact on the Underlying Fund’s
performance. As a result, the Underlying Fund’s performance may be more volatile
than the performance of more geographically diversified funds.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities may be more volatile than investment grade
securities.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact an Underlying Fund’s performance.
•Index
Sampling Risk:
Because index sampling relies on the securities selected to have economic
characteristics similar to securities in the fund’s benchmark index, it may not
result in the aggregate in investment performance matching that of that fund’s
benchmark index or of other funds that purchased all or substantially all of the
securities in the same index in approximately the same proportions as their
weightings in the index.
•Passive
Management Risk:
A passively managed (or index) fund generally holds constituent securities of
its benchmark index regardless of performance, which could cause the index
fund’s return to be lower than an actively managed fund (which generally seeks
to outperform a benchmark index). Such fund will also perform poorly when the
index performs poorly. In addition, an index fund has operating and other
expenses while an index does not. As such, an index fund will tend to
underperform the index to some degree over time even though it will attempt to
track its index as closely as possible.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR.
Previously,
the Financial Conduct Authority (“FCA”), which regulates financial markets and
financial services firms in the United Kingdom, announced that it would no
longer compel the banks to continue to submit the daily rates for the
calculation of LIBOR after 2021. The IBA ceased publication of most LIBOR
settings on a representative basis at the end of 2021 and ceased publication of
a majority of U.S. dollar LIBOR settings on a representative basis on June 30,
2023. In addition, global regulators previously announced that, with limited
exceptions, no new LIBOR-based contracts should be entered into after 2021.
Actions by regulators have resulted in the establishment of alternative
reference rates to LIBOR in most major currencies.
•Underlying
Fund Risk:
Because an Underlying Fund is available for investment by one or more “fund of
funds” of the Trust and thus may have a significant percentage of its
outstanding shares held by such fund of funds, a change in asset allocation by
the fund of funds could result in large redemptions out of the Underlying Fund,
causing the sale of securities in a short timeframe and potential increases in
expenses to the Underlying Fund and its remaining shareholders, both of which
could negatively impact performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to two broad-based
market indices that correspond to the Fund’s two broad asset
classes. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines and restrictions that were substantially similar to those
of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. To further assist in performance comparison, the returns of a
composite benchmark, the Aristotle Portfolio Optimization Growth Composite
Benchmark, are presented. The composite benchmark is comprised of 58% S&P
500, 23% Bloomberg US Aggregate Bond, and 19% MSCI EAFE Indices. It reflects
broad debt and equity asset class allocations for the Fund in the current target
allocation (the broad equity asset class being represented generally by
benchmarks for domestic and international equity). The bar chart shows the
performance of the Predecessor Fund’s Class A shares.
Sales
charges applicable to Class A shares are reflected in the Average Annual Total
Returns table but not in the bar chart. If these charges were
reflected in the bar chart, returns would be lower than those shown. Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class A return
for the period 1/1/23 through 9/30/23:
5.68%
Best and worst quarterly performance
reflected within the bar chart:
Q2
2020: 19.26%; Q1
2020: (20.08)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
A (incepted
December 31,
2003) (before taxes) |
(24.18)% |
2.62% |
5.67% |
Class A (after taxes on distributions)
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(27.90)% |
(0.50)% |
3.49% |
Class A (after taxes on distributions and sale of Fund
shares) |
(11.55)% |
1.76% |
4.24% |
Class
C (incepted
December 31,
2003) (before taxes) |
(20.97)% |
3.02% |
5.51% |
Class
I-2 (incepted
December 31,
2012) (before taxes) |
(19.56)% |
4.06% |
6.54% |
S&P
500 Index (reflects no deductions for
fees, expenses or taxes) |
(18.11)% |
9.42% |
12.56% |
Bloomberg US Aggregate Bond Index
(reflects no deductions for fees, expenses or
taxes) |
(13.01)% |
0.02% |
1.06% |
Aristotle
Portfolio Optimization Growth Composite Benchmark1
(reflects no deductions for fees, expenses or
taxes) |
(16.00)% |
6.00% |
8.54% |
1
Aristotle
Portfolio Optimization Growth Composite Benchmark
represents
the blended performance 58% S&P 500, 23% Bloomberg US Aggregate Bond, and
19% MSCI EAFE Indices.
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class A shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
–Aristotle Investment Services, LLC
Sub-Adviser
– Pacific Life Fund Advisors LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Investment Adviser |
Experience with
Fund |
Howard
T. Hirakawa, CFA, Senior Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2003) |
Carleton
J. Muench, CFA, Vice President and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2006) |
Samuel
S. Park, Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2013) |
Edward
Sheng, PhD, CFA, CAIA, Assistant Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2021) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Portfolio Optimization Aggressive Growth
Fund |
Investment
Goal
This Fund seeks high, long-term capital
appreciation.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
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A |
C |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.50% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
I-2 |
Management
Fee1 |
0.45% |
0.45% |
0.45% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
Acquired
Fund Fees and Expenses2 |
0.39% |
0.39% |
0.39% |
Total
Annual Fund Operating Expenses |
1.09% |
1.84% |
0.84% |
Less
Fee Waiver3 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.09% |
1.84% |
0.84% |
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1 |
The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The
Advisory Fee is borne by the Fund at the same annual rate for all share
classes of 0.20% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.25% of the average net assets of the
class. |
2 |
Acquired
Fund Fees and Expenses are expenses incurred indirectly by the Fund
through its ownership of shares in other investment companies and have
been estimated based on expected allocations to underlying
funds. |
3 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 1.26% for Class A,
2.01% for Class C, and 1.01% for Class I-2. Aristotle Investment Services,
LLC may not recoup these waivers in future periods.
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Examples
The examples are intended to help you
compare the cost of investing in the Fund with the cost of investing in other
Funds of the Trust or other mutual funds. Each Example assumes that you invest
$10,000
in the noted share class of the Fund for the time periods indicated,
that your investment has a 5% return each year, and that the Fund’s annual
operating expenses remain as stated in the previous table for the time periods
shown, except for the ten-year amounts for Class C shares that reflect the
conversion to Class A shares six years after the end of the calendar month in
which the shares were purchased and the fee waiver which is only reflected for
the contractual periods. Although your actual costs may be higher or lower, the
examples show what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I-2 |
1
year |
$655 |
$287 |
$86 |
3
years |
$878 |
$579 |
$268 |
5
years |
$1,118 |
$996 |
$466 |
10
years |
$1,806 |
$2,159 |
$1,037 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I-2 |
1
year |
$655 |
$187 |
$86 |
3
years |
$878 |
$579 |
$268 |
5
years |
$1,118 |
$996 |
$466 |
10
years |
$1,806 |
$2,159 |
$1,037 |
Portfolio
Turnover
The
Fund, which operates as a “fund of funds” that seeks to achieve its investment
goal by investing in unaffiliated exchange-traded funds (“ETFs”) and in other
funds organized as series of the Trust (collectively, the “Underlying Funds”),
does not pay transaction costs, such as commissions, when it buys and sells
shares of Underlying Funds (or “turns over” its holdings); however, a higher
portfolio turnover rate, which reflects a greater number of shares of Underlying
Funds being bought or sold, may result in higher taxes when Fund shares are held
in a taxable account. During the fiscal year ended March 31, 2023, the portfolio
turnover rate of Pacific Funds Portfolio Optimization Aggressive-Growth (the
“Predecessor Fund”) was 29% of the average value of the Fund. An Underlying
Fund typically does pay transaction costs when it turns over its portfolio so a
higher portfolio turnover rate, which reflects a greater number of securities
being bought or sold, may indicate higher transaction costs, and may result in
higher taxes to Fund shareholders who hold Fund shares in a taxable account.
These costs, which are not reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s and Underlying Funds’ performance. For more information
regarding the Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
This Fund is a “fund of funds” that seeks to achieve its
investment goal by investing in a combination of underlying funds, including
funds that are actively managed by an affiliate of the investment adviser and
unaffiliated ETFs. The allocation of the Fund’s assets
between
underlying funds sub-advised by an affiliate of the investment adviser and
unaffiliated ETFs will vary over time, although the sub-adviser currently
expects to invest, under normal circumstances, between 40% and 90% of the Fund’s
assets in underlying funds sub-advised by an affiliate of the investment
adviser. Under normal market conditions, the Fund’s exposures to the two broad
asset classes of debt and equity are expected to be within the following
ranges:
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BROAD
ASSET CLASS ALLOCATIONS |
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Debt |
Equity |
0-15% |
85-100% |
The
sub-adviser manages the investment program for the Fund through a multi-step
process that includes:
(1)
Asset Allocation/Portfolio Construction—The
sub-adviser manages the Fund using an approximate 10-year investment horizon. An
asset class target allocation for the Fund is developed that seeks to meet the
Fund’s investment goal using both equity and debt asset classes. The equity
asset class includes narrower asset classes such as domestic
small-capitalization, mid-capitalization and large-capitalization, growth and
value strategies, and international and emerging market equities. The debt asset
class also includes narrower asset classes such as investment grade bonds, high
yield/high risk bonds, bank loans, international debt and emerging market
debt.
The
sub-adviser then determines the amount of the Fund’s assets to invest in each
underlying fund in order to obtain the asset class target allocations for the
Fund.
The
sub-adviser may adjust the broad asset class allocations to any point within the
above ranges, and/or adjust the narrower asset class allocations, and/or the
allocations to the underlying funds, at any time as it deems necessary based on
the sub-adviser’s views of market conditions, its outlook for various asset
classes or other factors (“dynamic positioning”).
For
example, the sub-adviser may engage in dynamic positioning for the Fund by
adjusting the target allocations to reflect a shorter-term view of the markets
or a particular asset class, to seek to capture upside opportunities or mitigate
risk from market events, or for cash management purposes. The sub-adviser would
then make the appropriate adjustments to its underlying fund allocations to
reflect the updated asset class target allocations. This dynamic positioning
would be implemented consistent with the Fund’s risk/return profile and
investment goal.
(2)
Investment Risk Management—The
sub-adviser monitors and analyzes the investment risks of the Fund, evaluates
their impact on the Fund’s risk/return objectives and considers adjustments to
the Fund’s allocations as a result.
Investments
of the underlying funds that invest primarily in debt instruments include
investment grade debt securities, including U.S. Government securities,
corporate bonds, mortgage-related securities, and other asset-backed securities;
foreign debt securities, including emerging market debt; debt instruments of
varying duration; convertible securities; high yield/high risk bonds; floating
rate loans; and inflation-indexed bonds.
Investments
of the underlying funds that invest primarily in equity instruments include
growth and value stocks; large-, mid- and small-capitalization companies;
sector-specific stocks; and domestic and foreign stocks, including emerging
market stocks.
The
Fund is expected to be as fully invested as practical, although it may maintain
liquidity reserves to meet redemption requests.
The
Fund may invest a significant portion of its assets in any single underlying
fund. The sub-adviser has sole discretion in selecting the underlying funds for
investment and may adjust the Fund’s allocations to the underlying funds,
including adding or removing underlying funds, as it deems appropriate to meet
the Fund’s investment goal.
For
additional information about the Fund and its Underlying Fund investments,
please see the Additional
Information About Principal Investment Strategies and Principal
Risks
section in the Prospectus.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. Because this Fund has a significant
portion of its assets invested in Underlying Funds that invest primarily in
equity instruments, this Fund has more exposure to equity
securities risk
than other Portfolio Optimization Funds. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
As
a “fund of funds,” the Fund is subject to Asset
Allocation Fund of Funds Risk,
Conflicts
of Interest Risk,
and ETF
Risk.
The Fund is also subject to the risks of the Underlying Funds in which it
invests, which may change based on the Fund’s allocations to the Underlying
Funds. The principal risks to the Fund from these Underlying Fund investments
are described below.
•Asset
Allocation Fund of Funds Risk:
Although the theory behind asset allocation is that diversification among asset
classes can help reduce volatility over the long term, you still may lose money
and/or experience price volatility. Performance of and assumptions about asset
classes and Underlying Funds may also diverge from historical performance and
assumptions used to develop the allocations in light of actual market
conditions. There is a risk that you could achieve better returns by investing
in an individual fund or funds representing a single asset class rather than
investing in a fund of funds. Another risk of asset allocation is that the
Fund’s actual asset class allocations may deviate from the intended allocation
because an Underlying Fund’s investments can change due to market movements, the
Underlying Fund Manager’s investment decisions or other factors, which could
result in the Fund’s risk/return target not being met. Fund shareholders also
bear indirectly their proportionate share of the expenses of the Underlying
Funds in which the Fund invests. As a fund of funds, the Fund is exposed
proportionally to the same risks as the Underlying Funds in which it
invests.
•Conflicts
of Interest Risk:
The investment adviser and sub-adviser are subject to competing interests that
have the potential to influence investment decisions for the Fund. For example,
an Underlying Fund managed by an affiliate of the sub-adviser or the investment
adviser may create an incentive for the sub-adviser to use that fund as an
Underlying Fund. In addition, the sub-adviser may be influenced by its or the
investment adviser’s view of the best interests of Underlying Funds, such as a
view that an Underlying Fund may benefit from additional assets or could be
harmed by redemptions. The sub-adviser seeks to identify and address any
potential conflicts in a manner that is fair for Underlying Funds, the Fund and
the shareholders of the Fund and Underlying Fund. The sub-adviser has adopted a
policy under which investment decisions for the Fund must be made in the best
interests of the Fund and its shareholders, and the sub-adviser may not take
into account the interests of an Underlying Fund and its shareholders when
making investment decisions for the Fund.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares are trading at a discount, the Fund will receive a
price that is less than the ETF’s net asset value per share. In addition, an ETF
may not replicate exactly the performance of the benchmark index it seeks to
track. An investment in an ETF is an investment in another investment company
and therefore, the Fund’s shareholders will indirectly bear a proportionate
share of any fees and expenses of the ETFs in which the Fund invests. The Fund
will pay brokerage commissions in connection with the purchase and sale of
shares of ETFs.
Principal
Risks from Holdings in Underlying Funds
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-
capitalization
equity security prices may not rise as much as prices of equity securities of
small-capitalization companies.
•Growth
Companies Risk:
Growth companies are those that a portfolio manager believes have the potential
for above average or rapid growth but may be subject to greater price volatility
than investments in “undervalued” companies.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries may be
riskier than investments in or exposure to investments in U.S. and other
developed markets for many reasons, including smaller market capitalizations,
greater price volatility, less liquidity, lower credit quality, a higher degree
of political and economic instability, the imposition of economic sanctions,
less governmental regulation and supervision of the financial industry and
markets, and less stringent financial reporting and accounting standards and
controls.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Preferred
Stock Risk:
Preferred stock represents an equity interest in a company that generally
entitles the holder to receive, in preference to the holders of other stocks
such as common stock, dividends and a fixed share of the proceeds resulting from
a liquidation of the company. The market value of preferred stock is subject to
company-specific and market risks applicable generally to equity securities and
is also sensitive to changes in the company’s creditworthiness, the ability of
the company to make payments on the preferred stock, and changes in interest
rates, typically declining in value if interest rates rise. Convertible
preferred stock allows the holder to convert the preferred shares into a fixed
number of common shares, usually after a predetermined date. Like preferred
stock, convertible preferred stock generally pays a dividend at a specified rate
and has preference over common stock in the payment of dividends but ranks
behind bonds, including convertible bonds, in priority upon
liquidation.
•Warrants
and Rights Risk:
Warrants and rights may lack a liquid secondary market for resale. The prices of
warrants and rights may fluctuate as a result of speculation or other factors.
Warrants and rights can provide a greater potential for profit or loss than an
equivalent investment in the
underlying
security. Prices of warrants and rights do not necessarily move in tandem with
the prices of their underlying securities and therefore are highly volatile and
speculative investments. If a warrant or right expires without being exercised,
the Fund will lose any amount paid for the warrant or right.
•Leverage
Risk:
An Underlying Fund may invest in forward commitments, futures contracts,
options, or swap agreements, including taking short positions using certain
derivatives, as a principal investment strategy. These derivative investments
give rise to a form of leverage. Leverage is investment exposure that exceeds
the initial amount invested. The loss on a leveraged investment may far exceed
an Underlying Fund’s principal amount invested. Leverage can magnify an
Underlying Fund’s gains and losses and therefore increase its volatility.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of an Underlying Fund’s investments denominated in or
with exposure to that foreign currency.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce an
Underlying Fund’s income or ability to recover amounts due and may reduce the
value of the debt instrument, sometimes dramatically.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, an Underlying Fund’s yield
(and total return) also may be low, and an Underlying Fund may experience low or
negative returns. An Underlying Fund may be subject to heightened levels of
interest rate risk because the Federal Reserve has raised, and may continue to
raise, interest rates. As interest rates rise, the value of fixed income
investments will generally decrease.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit ratings/scores,
increasing potential default), prepayment risk (when interest rates decline,
borrowers
may
pay off their mortgages sooner than expected which can reduce an Underlying
Fund’s returns because an Underlying Fund may have to reinvest its assets at
lower interest rates), call risk (similar to prepayment risk, an issuer may pay
its obligations under a security sooner than expected), U.S. government
securities risk (securities backed by different U.S. government agencies are
subject to varying levels of credit rating risk), issuer risk (the risk that a
private issuer cannot meet its obligations) and stripped mortgage-related
securities risk (these securities are particularly sensitive to changes in
interest rates).
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country, or region.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. An Underlying Fund may invest in
liquid investments that become illiquid due to financial distress, or
geopolitical events such as sanctions, trading halts or wars. An Underlying Fund
may not be able to sell a holding quickly at the price it has valued the
holding, may be unable to take advantage of market opportunities or may be
forced to sell other more desirable, more liquid securities or sell less liquid
or illiquid securities at a loss if needed to raise cash to conduct operations,
including to meet redemption requests. This risk may be particularly pronounced
with respect to small-capitalization companies.
•Geographic
Focus Risk:
If an Underlying Fund invests a significant portion of its assets in a single
country, limited number of countries, or particular geographic region, then
the
risk increases that economic, political, social, or other conditions in those
countries or that region will have a significant impact on the Underlying Fund’s
performance. As a result, the Underlying Fund’s performance may be more volatile
than the performance of more geographically diversified funds.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact an Underlying Fund’s performance.
•Index
Sampling Risk:
Because index sampling relies on the securities selected to have economic
characteristics similar to securities in the fund’s benchmark index, it may not
result in the aggregate in investment performance matching that of that fund’s
benchmark index or of other funds that purchased all or substantially all of the
securities in the same index in approximately the same proportions as their
weightings in the index.
•Passive
Management Risk:
A passively managed (or index) fund generally holds constituent securities of
its benchmark index regardless of performance, which could cause the index
fund’s return to be lower than an actively managed fund (which generally seeks
to outperform a benchmark index). Such fund will also perform poorly when the
index performs poorly. In addition, an index fund has operating and other
expenses while an index does not. As such, an index fund will tend to
underperform the index to some degree over time even though it will attempt to
track its index as closely as possible.
•Underlying
Fund Risk:
Because an Underlying Fund is available for investment by one or more “fund of
funds” of the Trust and thus may have a significant percentage of its
outstanding shares held by such fund of funds, a change in asset allocation by
the fund of funds could result in large redemptions out of the Underlying Fund,
causing the sale of securities in a short timeframe and potential increases in
expenses to the Underlying Fund and its remaining shareholders, both of which
could negatively impact performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to two broad-based
market indices that correspond to the Fund’s two broad asset
classes. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management
team
using investment policies, objectives, guidelines, and restrictions that were
substantially similar to those of the Fund. Prior to the Reorganization, the
Fund had not yet commenced operations. To further assist in performance
comparison, the returns of a composite benchmark, the Aristotle Portfolio
Optimization Aggressive-Growth Composite Benchmark, are presented. The composite
benchmark is comprised of 69% S&P 500, 26% MSCI EAFE, and 5% Bloomberg US
Aggregate Bond Indices. It reflects broad debt and equity asset class
allocations for the Fund in the current target allocation (the broad equity
asset class being represented generally by benchmarks for domestic and
international equity). The bar chart shows the performance of the Predecessor
Fund’s Class A shares.
Sales
charges applicable to Class A shares are reflected in the Average Annual Total
Returns table but not in the bar chart. If these charges were
reflected in the bar chart, returns would be lower than those shown. Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class A return
for the period 1/1/23 through 9/30/23:
6.95%
Best and worst quarterly performance
reflected within the bar chart:
Q2
2020: 21.35%; Q1
2020: (23.06)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
A (incepted
December 31,
2003) (before taxes) |
(25.75)% |
3.37% |
6.50% |
Class
A (after
taxes on distributions)
|
(30.35)% |
(0.08)% |
4.27% |
Class
A (after
taxes on distributions and sale of Fund
shares)
|
(11.81)% |
2.36% |
4.98% |
Class
C
(incepted December 31,
2003) (before taxes) |
(22.54)% |
3.78% |
6.37% |
Class
I-2 (incepted
December 31,
2012) (before taxes) |
(21.19)% |
4.82% |
7.37% |
S&P
500 Index (reflects no deductions for
fees, expenses or taxes) |
(18.11)% |
9.42% |
12.56% |
Bloomberg
US Aggregate Bond Index (reflects
no deductions for fees, expenses, or taxes)
|
(13.01)% |
0.02% |
1.06% |
Aristotle
Portfolio Optimization Aggressive-Growth Composite Benchmark1
(reflects
no deductions for fees, expenses, or taxes)
|
(16.79)% |
6.98% |
9.98% |
1
Aristotle
Portfolio Optimization Aggressive Growth Composite Benchmark
represents
the blended performance of 69% S&P 500, 26% MSCI EAFE, and 5% Bloomberg US
Aggregate Bond Indices.
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class A shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
–Aristotle Investment Services, LLC
Sub-Adviser
– Pacific Life Fund Advisors LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Investment Adviser |
Experience with
Fund |
Howard
T. Hirakawa, CFA, Senior Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2003) |
Carleton
J. Muench, CFA, Vice President and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2006) |
Samuel
S. Park, Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2013) |
Edward
Sheng, PhD, CFA, CAIA, Assistant Vice President and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2021) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Ultra Short Income Fund |
Investment
Goal
This Fund seeks current income consistent with capital
preservation.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below. If these fees were included, the fees and expenses shown would be
higher.
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
I |
I-2 |
Management
Fee1 |
0.32% |
0.32% |
0.32% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
None |
None |
Total
Annual Fund Operating Expenses |
0.57% |
0.32% |
0.32% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.57% |
0.32% |
0.32% |
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1 |
The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The
Advisory Fee is borne by the Fund at the same annual rate for all share
classes of 0.25% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.07% of the average net assets of the
class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 0.32% for Class I and
0.32% for Class I-2. Aristotle Investment Services, LLC may not recoup
these waivers in future periods.
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Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the fee
waiver (expense limitation), which is only reflected for the contractual
periods. Although your actual costs may be higher or lower, the examples show
what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
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A |
I |
I-2 |
1
year |
$58 |
$33 |
$33 |
3
years |
$183 |
$103 |
$103 |
5
years |
$318 |
$180 |
$180 |
10
years |
$714 |
$406 |
$406 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
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A |
I |
I-2 |
1
year |
$58 |
$33 |
$33 |
3
years |
$183 |
$103 |
$103 |
5
years |
$318 |
$180 |
$180 |
10
years |
$714 |
$406 |
$406 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds Ultra Short Income (the
“Predecessor Fund”) was 51% of the average value of the Fund. A higher
portfolio turnover rate reflects a greater number of securities being bought or
sold, which may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
The
Fund primarily invests in investment grade, U.S. dollar-denominated short-term
fixed and floating rate debt securities, including corporate debt securities,
mortgage-related securities, asset-backed securities, U.S. government securities
and agency securities and money market instruments such as commercial paper,
certificates of deposit, time deposits, deposit notes and bank notes. Debt
securities in which the Fund invests may include those denominated in U.S.
dollars and issued by foreign entities.
The
weighted average duration of this Fund will vary based on the sub-adviser’s
market forecasts and will not normally exceed one year and may not exceed two
years. Duration is often used to measure a bond’s or fund’s sensitivity to
interest rates. The longer a fund’s duration, the more sensitive it is to
Interest
Rate Risk.
The shorter a fund’s duration, the less sensitive it is to Interest
Rate Risk.
The
dollar weighted average maturity of this Fund will not exceed two years.
Maturity of a debt instrument generally refers to the specific period of time
until final payment (principal and any applicable interest) is due. In
calculating average weighted maturities of mortgage related securities,
asset-backed securities or similar securities, the maturity will be based on
estimates of average life, which are based on prepayment
assumptions.
The
sub-adviser normally invests the Fund’s assets across different groups of
industries/sectors but may invest a significant percentage of the Fund’s assets
in issuers in a single sector. As of December 31, 2022, a significant portion of
the Fund is represented by asset-backed securities. The components of the Fund
are likely to change over time.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-
adviser’s fundamental research analysis of
individual issuers. A top-down market assessment provides a framework for
portfolio risk positioning and sector allocations. Once this is determined, the
sub-adviser looks for companies that it believes have sustainable competitive
positions, strong management teams and the ability to repay or refinance its
debt obligations. The sub-adviser performs a credit analysis on each potential
issuer and a relative value analysis for each potential investment. When
selecting investments, the sub-adviser may invest in instruments that it
believes have the potential for capital
appreciation.
Individual investment selection is based on the sub-adviser’s
fundamental research process. Individual investments may be purchased or sold in
the event the sub-adviser decides to adjust debt asset class weightings within
the portfolio. An investment is generally sold when the issue has realized its
price appreciation target, the issue no longer offers relative value, or an
adverse change in corporate or sector fundamentals has occurred. The Fund is not
a money market fund and is not subject to the special regulatory requirements
designed to enable money market funds to maintain a stable share
price.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce the
Fund’s income or ability to recover amounts due and may reduce the value of the
debt instrument, sometimes dramatically.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities
are
subject to certain risks affecting the housing market or the market for the
assets underlying such securities. These securities are also subject to
extension risk (the risk that rising interest rates extend the duration of fixed
mortgage-related and other asset-backed securities, making them more sensitive
to changes in interest rates), interest rate risk (the risk that rising interest
rates will cause a decline in the value of a fixed income security), subprime
risk (the risk that these securities have exposure to borrowers with lower
credit ratings/scores, increasing potential default), prepayment risk (when
interest rates decline, borrowers may pay off their mortgages sooner than
expected which can reduce the Fund’s returns because the Fund may have to
reinvest its assets at lower interest rates), call risk (similar to prepayment
risk, an issuer may pay its obligations under a security sooner than expected),
U.S. government securities risk (securities backed by different U.S. government
agencies are subject to varying levels of credit rating risk) and issuer risk
(the risk that a private issuer cannot meet its obligations).
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, the Fund’s yield (and total
return) also may be low, and the Fund may experience low or negative returns.
The Fund may be subject to heightened levels of interest rate risk because the
Federal Reserve has raised, and may continue to raise, interest rates. As
interest rates rise, the value of fixed income investments will generally
decrease.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions
than the U.S. market. Markets and economies throughout the world are becoming
increasingly interconnected, and conditions or events in one market, country or
region may adversely impact investments or issuers in, or foreign exchange rates
with, another market, country, or region.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading halts or wars. The Fund may not be able to
sell a holding quickly at the price it has valued the holding, may be unable to
take advantage of market opportunities or may be forced to sell other more
desirable, more liquid securities or sell less liquid or illiquid securities at
a loss if needed to raise cash to conduct operations, including to meet
redemption requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk. There is a risk that the U.S. government will not make timely
payments on its debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows the performance of the Predecessor Fund’s Class
I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
4.10%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 4.36%; Q1 2020: (3.18)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
Since
Inception |
Class
I (incepted
June 28,
2019) (before taxes) |
0.36% |
1.26% |
Class I (after taxes on distributions)
|
(0.45)% |
0.56% |
Class
I (after
taxes on distributions and sale of Fund
shares)
|
0.21% |
0.67% |
Class
I-2 (incepted
June 28,
2019) (before taxes) |
0.36% |
1.26% |
Bloomberg
Short Treasury Total Return Index (reflects no deductions for
fees, expenses or taxes) (based on Class I inception date
of June 28,
2019) |
0.98% |
0.87% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Pacific Capital, LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience
with Fund |
David
Weismiller, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2019) |
Ying
Qiu, CFA, Managing Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2019) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Short Duration Income Fund |
Investment
Goal
This Fund seeks current income; capital appreciation is of secondary
importance.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
|
A |
C |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
3.00% |
None |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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|
A |
C |
I |
I-2 |
Management
Fee1 |
0.50% |
0.50% |
0.45% |
0.50% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
None |
Total
Annual Fund Operating Expenses |
0.75% |
1.50% |
0.45% |
0.50% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.75% |
1.50% |
0.45% |
0.50% |
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1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administration Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.40% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.10% for Class A, Class C and Class I-2 and 0.05% for Class I of the
average net assets of the class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 0.75% for Class A,
1.50% for Class C, 0.45% for Class I, and 0.50% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future periods.
|
Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the ten-year
amounts for Class C shares that reflect the conversion to Class A shares six
years after the end of the calendar month in which the shares were purchased and
the fee waiver and fee waiver (expense limitation) which is only reflected for
the contractual periods. Although your actual costs may be higher or lower, the
examples show what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
|
Share
Class |
|
A |
C |
I |
I-2 |
1
year |
$374 |
$253 |
$46 |
$51 |
3
years |
$532 |
$474 |
$144 |
$160 |
5
years |
$704 |
$818 |
$252 |
$280 |
10
years |
$1,202 |
$1,791 |
$567 |
$628 |
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|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
|
Share
Class |
|
A |
C |
I |
I-2 |
1
year |
$374 |
$153 |
$46 |
$51 |
3
years |
$532 |
$474 |
$144 |
$160 |
5
years |
$704 |
$818 |
$252 |
$280 |
10
years |
$1,202 |
$1,791 |
$567 |
$628 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds Short Duration Income
(the “Predecessor Fund”) was 61% of the average value of the Fund. A higher
portfolio turnover rate reflects a greater number of securities being bought or
sold, which may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under
Performance Information.
Principal Investment
Strategies
This Fund invests principally in income producing debt
instruments. Under normal circumstances, the Fund will invest at least 70% of
its assets in investment grade debt instruments, including corporate debt,
asset-backed securities, mortgage-related securities, U.S. government securities
and agency securities. The Fund may invest up to 30% of its assets in
non-investment grade (high yield/high risk, sometimes called “junk bonds”) debt
instruments and floating rate senior loans. Debt securities in which the Fund
invests may include
those
denominated in U.S. dollars and issued by foreign entities that are primarily in
developed markets.
The
Fund expects to maintain a weighted average duration within one year (plus or
minus) of the Bloomberg US 1-3 Year Government/Credit Bond Index, although the
investments held by the Fund may have short, intermediate and long terms to
maturity. Duration is often used to measure a bond’s or fund’s sensitivity to
interest rates. The longer a fund’s duration, the more sensitive it is to
Interest
Rate Risk.
The shorter a fund’s duration, the less sensitive it is to Interest
Rate Risk.
Maturity of a debt instrument, however, refers to the specific period of time
until final payment (principal and any applicable interest) is due. The duration
of the Bloomberg US 1-3 Year Government/Credit Bond Index was 1.86 years as of
December 31, 2022.
The
sub-adviser normally invests the Fund’s assets across different groups of
industries/sectors but may invest a significant percentage of the Fund’s assets
in issuers in a single sector. As of December 31, 2022, a significant portion of
the Fund is represented by securities of companies in the Financial sector. The
components of the Fund are likely to change over time.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Once this is determined, the sub-adviser looks for
companies that it believes have sustainable competitive positions, strong
management teams and the ability to repay or refinance its debt obligations. The
sub-adviser performs a credit analysis on each potential issuer and a relative
value analysis for each potential investment. When selecting investments, the
sub-adviser may invest in instruments that it believes have the potential for
capital appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
Individual investments may be purchased or sold in the event the sub-adviser
decides to adjust debt asset class weightings within the portfolio. An
investment is generally sold when the issue has realized its price appreciation
target, the issue no longer offers relative value, or an adverse change in
corporate or sector fundamentals has occurred.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate
risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce the
Fund’s income or ability to recover amounts due and may reduce the value of the
debt instrument, sometimes dramatically.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper the Fund’s ability to buy or sell loans and
negatively affect the transaction price. A significant portion of the floating
rate loans held by the Fund may be “covenant lite” loans that contain fewer or
less restrictive constraints on the borrower or other borrower-friendly
characteristics and offer less protections for investors than covenant loans. It
may take longer than seven days for transactions in loans to settle. This may
result in cash proceeds not being immediately available to the Fund, requiring
the Fund to borrow cash which would increase the Fund’s expenses. The Fund is
also subject to credit
risk
with respect to the issuer of the loan. Investments in junior loans involve a
higher degree of overall risk.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it is
unclear whether these protections are available to an investment in a
loan.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities (including loans) may be more volatile than
investment grade securities.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities
are
subject to certain risks affecting the housing market or the market for the
assets underlying such securities. These securities are also subject to
extension risk (the risk that rising interest rates extend the duration of fixed
mortgage-related and other asset-backed securities, making them more sensitive
to changes in interest rates), interest rate risk (the risk that rising interest
rates will cause a decline in the value of a fixed income security), subprime
risk (the risk that these securities have exposure to borrowers with lower
credit ratings/scores, increasing potential default), prepayment risk (when
interest rates decline, borrowers may pay off their mortgages sooner than
expected which can reduce the Fund’s returns because the Fund may have to
reinvest its assets at lower interest rates), call risk (similar to prepayment
risk, an issuer may pay its obligations under a security sooner than expected),
U.S. government securities risk (securities backed by different U.S. government
agencies are subject to varying levels of credit rating risk) and issuer risk
(the risk that a private issuer cannot meet its obligations).
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country, or region.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, the Fund’s yield (and total
return)
also
may be low and the Fund may experience low or negative returns. The Fund may be
subject to heightened levels of interest rate risk because the Federal Reserve
has raised, and may continue to raise, interest rates. As interest rates rise,
the value of fixed income investments will generally decrease.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading halts or wars. The Fund may not be able to
sell a holding quickly at the price it has valued the holding, may be unable to
take advantage of market opportunities or may be forced to sell other more
desirable, more liquid securities or sell less liquid or illiquid securities at
a loss if needed to raise cash to conduct operations, including to meet
redemption requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and ceased publication of a majority of
U.S. dollar LIBOR settings on a representative basis on June 30, 2023. In
addition, global regulators previously announced that, with limited exceptions,
no new LIBOR-based contracts should be entered into after 2021. Actions by
regulators have resulted in the establishment of alternative reference rates to
LIBOR in most major currencies.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor
Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows the performance of the Predecessor Fund’s Class
I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
|
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
3.43%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 4.72%; Q1 2020: (3.19)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
I (incepted
December 19,
2011) (before
taxes) |
(2.81)% |
1.53% |
1.77% |
Class I (after taxes on distributions)
|
(3.67)% |
0.59% |
0.84% |
Class I (after taxes on distributions and sale of Fund
shares) |
(1.67)% |
0.79% |
0.96% |
Class
A (incepted
June 29,
2012) (before taxes) |
(6.00)% |
0.65% |
1.19% |
Class
C (incepted
June 29,
2012) (before taxes) |
(4.79)% |
0.52% |
0.74% |
Class
I-2 (incepted
June 29,
2012) (before taxes) |
(2.95)% |
1.52% |
1.75% |
Bloomberg
US 1-3 Year Government/Credit Bond Index (reflects no deductions for
fees, expenses or taxes) |
(3.69)% |
0.92% |
0.88% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In
some instances, the return after taxes on distributions and sale of Fund shares
may be greater than the return before taxes because the investor is assumed
to be able to use the capital loss of
the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Pacific Capital, LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
|
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|
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|
Portfolio
Manager and Primary Title with Sub-Adviser |
Experience
with Fund |
David
Weismiller, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2011) |
Michael
Marzouk, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2011) |
Ying
Qiu, CFA, Managing Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2018) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
|
|
|
Aristotle
Core Income Fund |
Investment
Goal
This Fund seeks a high level of current income;
capital appreciation is of secondary
importance.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
|
A |
C |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
|
A |
C |
I |
I-2 |
Management
Fee1 |
0.60% |
0.60% |
0.55% |
0.55% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
None |
Total
Annual Fund Operating Expenses |
0.85% |
1.60% |
0.55% |
0.55% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.85% |
1.60% |
0.55% |
0.55% |
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1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administrative Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.50% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.10% for Class A and Class C and 0.05% for Class I and Class I-2 of the
average net assets of the class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 0.85% for Class A,
1.60% for Class C, 0.55% for Class I, and 0.55% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future periods.
|
Examples
The examples are intended to help you
compare the cost of investing in the Fund with the cost of investing in other
Funds of the Trust or other mutual funds. Each Example assumes that you invest
$10,000
in the noted share class of the Fund for the time periods indicated,
that your investment has a 5% return each year, and that the Fund’s annual
operating expenses remain as stated in the previous table for the time periods
shown, except for the ten-year amounts for Class C shares that reflect the
conversion to Class A shares six years after the end of the calendar month in
which the shares were purchased and the fee waiver (expense limitation) which is
only reflected for the contractual periods. Although your actual costs may be
higher or lower, the examples show what your costs would be based on these
assumptions.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
|
Share
Class |
|
A |
C |
I |
I-2 |
1
year |
$508 |
$263 |
$56 |
$56 |
3
years |
$685 |
$505 |
$176 |
$176 |
5
years |
$876 |
$871 |
$307 |
$307 |
10
years |
$1,429 |
$1,900 |
$689 |
$689 |
|
|
|
|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
|
Share
Class |
|
A |
C |
I |
I-2 |
1
year |
$508 |
$163 |
$56 |
$56 |
3
years |
$685 |
$505 |
$176 |
$176 |
5
years |
$876 |
$871 |
$307 |
$307 |
10
years |
$1,429 |
$1,900 |
$689 |
$689 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds Core Income (the
“Predecessor Fund”) was 118% of the average value of the Fund. A higher
portfolio turnover rate reflects a greater number of securities being bought or
sold, which may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under
Performance Information.
Principal Investment
Strategies
This
Fund invests principally in income producing debt instruments. Under normal
circumstances, the Fund will invest at least 60% of its assets in investment
grade debt instruments, including corporate debt securities, asset-backed
securities, mortgage-related securities, U.S. government securities and agency
securities. The Fund may invest up to 40% of its assets in non-investment grade
(high yield/high risk, sometimes called “junk bonds”) debt instruments and
floating rate senior loans. Debt instruments in which the Fund invests may
include those denominated in U.S. dollars and issued by foreign entities in
developed markets.
The
Fund expects to maintain a weighted average duration within two years (plus or
minus) of the Bloomberg US Aggregate Bond
Index.
Duration is often used to measure a bond’s sensitivity to interest rates. The
longer a fund’s duration, the more sensitive it is to Interest
Rate Risk.
The shorter a fund’s duration, the less sensitive it is to Interest
Rate Risk.
The duration of the Bloomberg US Aggregate Bond Index was 6.17 years as of
December 31, 2022.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Once this is determined, the sub-adviser looks for
companies that it believes have sustainable competitive positions, strong
management teams and the ability to repay or refinance its debt obligations. The
sub-adviser performs a credit analysis on each potential issuer and a relative
value analysis for each potential investment. When selecting investments, the
sub-adviser may invest in instruments that it believes have the potential for
capital appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
Individual investments may be purchased or sold in the event the sub-adviser
decides to adjust debt asset class weightings within the portfolio. An
investment is generally sold when the issue has realized its price appreciation
target, the issue no longer offers relative value, or an adverse change in
corporate or sector fundamentals has occurred.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may
potentially
reduce the Fund’s income or ability to recover amounts due and may reduce the
value of the debt instrument, sometimes dramatically.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities (including loans) may be more volatile than
investment grade securities.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, the Fund’s yield (and total
return) also may be low, and the Fund may experience low or negative returns.
The Fund may be subject to heightened levels of interest rate risk because the
Federal Reserve has raised, and may continue to raise, interest rates. As
interest rates rise, the value of fixed income investments will generally
decrease.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper the Fund’s ability to buy or sell loans and
negatively affect the transaction price. A significant portion of the floating
rate loans held by the Fund may be “covenant lite” loans that contain fewer or
less restrictive constraints on the borrower or other borrower-friendly
characteristics and offer less protections for investors than covenant loans. It
may take longer than seven days for transactions in loans to settle. This may
result in cash proceeds not being immediately available to the Fund, requiring
the Fund to borrow cash which would increase the Fund’s expenses. The Fund is
also subject to credit
risk
with respect to the issuer of the loan. Investments in junior loans involve a
higher degree of overall risk.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it
is
unclear whether these protections are available to an investment in a
loan.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country or region.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading halts or wars. The Fund may not be able to
sell a holding quickly at the price it has valued the holding, may be unable to
take advantage of market opportunities or may be forced to sell other more
desirable, more liquid securities or sell less liquid or illiquid securities at
a loss if needed to raise cash to conduct operations, including to meet
redemption requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit ratings/scores,
increasing potential default), prepayment risk (when interest rates decline,
borrowers may pay off their mortgages sooner than expected which can reduce the
Fund’s returns because the Fund may have to reinvest its assets at lower
interest rates), call risk (similar to prepayment risk, an issuer may pay its
obligations under a security sooner than expected), U.S. government securities
risk (securities backed by different U.S. government agencies are subject to
varying levels of credit rating risk), issuer risk (the risk that a private
issuer cannot meet its obligations) and stripped mortgage-related securities
risk
(these
securities are particularly sensitive to changes in interest rates).
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and ceased publication of a majority of
U.S. dollar LIBOR settings on a representative basis on June 30, 2023. In
addition, global regulators previously announced that, with limited exceptions,
no new LIBOR-based contracts should be entered into after 2021. Actions by
regulators have resulted in the establishment of alternative reference rates to
LIBOR in most major currencies.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing the sale of
securities in a short timeframe and potential increases in expenses to the Fund
and its remaining shareholders, both of which could negatively impact
performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows the performance of the Predecessor Fund’s Class
I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past
performance (before
and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information may be obtained at our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
1.53%
Best and worst quarterly performance
reflected within the bar chart:
Q2
2020: 6.81%; Q2
2022: (6.43)%
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|
|
Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
I (incepted
December 31,
2010) (before taxes) |
(12.16)% |
0.87% |
1.98% |
Class
I (after
taxes on distributions)
|
(13.29)% |
(0.47)% |
0.55% |
Class
I (after
taxes on distributions and sale of Fund
shares)
|
(7.18)% |
0.17% |
0.92% |
Class
A (incepted
December 31,
2010) (before taxes) |
(16.16)% |
(0.30)% |
1.24% |
Class
C (incepted
June 30,
2011) (before taxes) |
(13.87)% |
(0.19)% |
0.92% |
Class
I-2 (incepted
June 29,
2012) (before taxes) |
(12.15)% |
0.85% |
1.95% |
Bloomberg
US Aggregate Bond Index (reflects no deductions for
fees, expenses or taxes) |
(13.01)% |
0.02% |
1.06% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Pacific Capital, LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience
with Fund |
David
Weismiller, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2010) |
Michael
Marzouk, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2016) |
Brian
M. Robertson, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2016) |
Ying
Qiu, CFA, Managing Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2021) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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|
Aristotle
ESG Core Bond Fund |
Investment
Goal
This Fund seeks total return, consisting of current income and
capital appreciation, while giving consideration to certain environmental,
social, and governance (“ESG”) criteria.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be
higher.
Annual
Fund Operating Expenses1
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
I |
I-2 |
Management
Fee1 |
0.48% |
0.48% |
Total
Annual Fund Operating Expenses |
0.48% |
0.48% |
Less
Fee Waiver2 |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.48% |
0.48% |
|
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|
1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administration Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.38% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.10% of the average net assets of the
class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 0.48% for Class I and
Class I-2. Aristotle Investment Services, LLC may not recoup these waivers
in future periods.
|
Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the fee
waiver (expense limitation), which is only reflected for the contractual
periods. Although your actual costs may be higher or lower, the examples show
what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
|
Share
Class |
|
I |
I-2 |
1
year |
$49 |
$49 |
3
years |
$154 |
$154 |
5
years |
$269 |
$269 |
10
years |
$604 |
$604 |
|
|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
|
Share
Class |
|
I |
I-2 |
1
year |
$49 |
$49 |
3
years |
$154 |
$154 |
5
years |
$269 |
$269 |
10
years |
$604 |
$604 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds ESG Core Bond (the
“Predecessor Fund”) was 42% of the average value of the Fund. A higher
portfolio turnover rate reflects a greater number of securities being bought or
sold, which may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under
Performance Information.
Principal Investment
Strategies
The
Fund primarily invests in a broad range of investment-grade debt securities,
including corporate bonds, mortgage-related securities, asset-backed securities,
debt securities issued by the U.S. government or its related agencies and U.S.
dollar-denominated debt securities issued by developed foreign governments and
corporations. Under normal circumstances, the Fund may invest up to 65% of its
assets in corporate bonds. The Fund may invest up to 30% of its assets in U.S.
dollar-denominated debt securities of developed foreign governments and
corporations.
The
Fund expects to maintain a weighted average duration within two years (plus or
minus) of the Bloomberg US Aggregate Bond Index. Duration is often used to
measure a bond’s sensitivity to interest rates. The longer a fund’s duration,
the more sensitive it is to Interest
Rate Risk.
The shorter a fund’s duration, the less sensitive it is to Interest
Rate Risk.
The duration of the Bloomberg US Aggregate Bond Index was 6.17 years as of
December 31, 2022.
The
sub-adviser’s investment process for the Fund is based on a combination of the
sub-adviser’s fundamental research process and the sub-adviser’s ESG criteria,
which involves (i) the application of the ESG exclusionary screens described
below (the “ESG Exclusionary Screens”), and (ii) the sub-adviser’s analysis of
ESG
metrics
provided by independent third-party ESG data providers in respect of certain
debt securities held by the Fund. These considerations are described
below.
Individual
investments may be purchased or sold in the event the sub-adviser decides to
adjust debt asset class weightings within the portfolio. An investment is
generally sold when the issue has realized its price appreciation target, the
issue no longer offers relative value, or an adverse change in corporate or
sector fundamentals has occurred. Further, the sub-adviser will re-evaluate the
available ESG criteria of portfolio securities periodically to determine which
securities should be considered for sale based on whether the portfolio
securities continue to meet the ESG criteria.
The
sub-adviser normally invests the Fund’s assets across different groups of
industries/sectors but may invest a significant percentage of the Fund’s assets
in issuers in a single sector. The components of the Fund are likely to change
over time.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Once this is determined, the sub-adviser looks for
companies that it believes have sustainable competitive positions, strong
management teams and the ability to repay or refinance its debt obligations. The
sub-adviser performs a credit analysis on each potential issuer and a relative
value analysis for each potential investment. When selecting investments, the
sub-adviser may invest in instruments that it believes have the potential for
capital appreciation.
ESG
Exclusionary Screens.
Under normal circumstances, the Fund will invest at least 80% of its assets in
debt securities that are permitted investments under the ESG Exclusionary
Screens. The sub-adviser has created two ESG Exclusionary Screens, one of which
is applicable to corporate debt issuers (the “Corporate Debt Screen”) and the
other of which is applicable to government debt issuers (the “Government Debt
Screen”).
The
sub-adviser uses the Corporate Debt Screen to identify a universe of corporate
bonds, asset-backed securities, and mortgage-related securities, the issuers of
which are not directly involved in (i) the extraction of thermal coal, coal
power generation, and providing tailor-made products and services that support
thermal coal extraction that contribute materially to company revenue; in each
case, such issuers are excluded only to the extent that such activities lead to
revenue in excess of the sub-adviser’s revenue threshold (which is currently
9.99%); (ii) the production of tobacco; (iii) the production of controversial
military weapons (i.e.,
weapons that have a disproportionate and indiscriminate impact on civilian
populations, sometimes even years after a conflicts has ended); (iv) serious or
systematic human rights violations; (v) severe environmental damage; (vi) gross
corruption or other serious financial crime (as those terms (iv)-(vi) are
determined by Norges Bank). The Fund may invest in transition bonds issued by
entities that derive revenue from activities in the exclusion list. Transition
bonds, also referred to as sustainable bonds, are debt instruments whose
proceeds are exclusively used to finance projects aimed at helping the issuer
transition to a more sustainable way of doing business. Examples of
these
bonds are green bonds (used to finance projects with positive environmental
impacts), blue bonds (used to raise capital for ocean conservation, marine and
fisheries projects) and social bonds (used to finance social projects intended
to achieve positive social outcomes and/or address a social issue). Transition
bonds issued by entities that derive revenue from activities in the exclusion
list above would not be excluded under the Corporate Debt Screen.
The
sub-adviser uses a combination of issuer lists and ESG-specific issuer
information provided by third-party ESG data sources (e.g.,
Morningstar Sustainalytics, and Norges Bank) to determine which issuers are
permitted investments under the Corporate Debt Screen. This information is
determined by the third-party ESG data providers’ internal methodologies.
The
sub-adviser uses the Government Debt Screen to identify a universe of sovereign
debt issued by government and sovereign issuers that have not received ESG
ratings of “high risk” or “severe risk” from the third-party ESG data provider
used by the sub-adviser.
In
the event independent third-party ESG data is not available for an issuer, the
sub-adviser may rely on its own research to determine whether a particular debt
security is permitted for investment under the applicable ESG Exclusionary
Screen.
Up
to 20% of the Fund’s assets may be invested in cash and certain types of debt
securities, including collateralized loan obligations, that are not subject to
either of the ESG Exclusionary Screens or that would not be permitted
investments under the ESG Exclusionary Screens.
ESG
Metrics. To
evaluate an issuer’s material ESG factors that help inform portfolio management
decisions, the sub-adviser generally relies upon the assessments of third-party
ESG data providers that score the material ESG factors of issuers to determine
the issuer’s overall ESG ratings (the “Overall ESG Ratings”). The Overall ESG
Ratings consider, as applicable or relevant, the following factors:
environmental assessments (involving issues such as greenhouse gas emissions,
resource efficiency, use of natural resources and/or waste management), social
assessments (involving issues such as human capital management, labor standards,
occupational health and safety records, data security and/or product quality and
safety) and/or governance assessments (involving issues such as board structure
and quality, executive compensation, anti-competitive practices, ownership,
shareholder rights, and/or geopolitical risk). When determining an issuer’s
Overall ESG Ratings, the providers rate the material ESG factors of each issuer
within the providers’ universe and then apply weights to each factor’s score to
create an aggregate score. The sub-adviser relies upon this Overall ESG Ratings
when constructing and maintaining the portfolio. In the event that third-party
ESG metrics are not available for an issuer considered for investment, the
sub-adviser may rely on its own qualitative research.
The
Fund seeks to invest in corporate debt securities with a lower average carbon
intensity than the average carbon intensity of the corporate debt securities
within the Bloomberg US Aggregate Bond Index (the Fund’s benchmark index) for
which this data is available using the carbon intensity definition and
calculation methodology of an independent third-party ESG data
provider.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce the
Fund’s income or ability to recover amounts due and may reduce the value of the
debt instrument, sometimes dramatically.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, the Fund’s yield (and total
return) also may be low, and the Fund may experience low or negative returns.
The Fund may be subject to heightened levels of interest rate risk because the
Federal Reserve has raised, and may continue to raise, interest rates. As
interest rates rise, the value of fixed income investments will generally
decrease.
•ESG
Criteria Risk:
The sub-adviser’s consideration of ESG Criteria in its investment process could
cause the Fund to forgo investment opportunities available to funds not using
these criteria and underperform such funds. The sub-adviser’s determination of
what constitutes ESG Criteria and its process to evaluate the ESG Criteria may
differ from other investment advisers. Further, there can be no assurance that
the ESG Criteria utilized by the sub-adviser, or any judgment exercised by the
sub-adviser will reflect the beliefs or values of any particular investor. An
independent
third-party ESG data provider’s assessment of the financial materiality of ESG
factors could be inaccurate, and the provider could delay ESG data delivery and
evaluation (e.g.,
changing geo-political risks that may impact involvement in one or more excluded
activity), which may have an adverse impact on the Fund’s performance or cause
the Fund to hold a security that might be ranked low from an environmental,
social or governance perspective, or its methodology could be based on a
methodology or perspective different from that of another provider. In addition,
regulations and industry practices related to ESG are evolving rapidly, and the
sub-adviser’s practices may change if required to comply with such regulations
or adopt such practices.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country, or region.
•Financial
Sector Risk:
The operations and businesses of financial services companies are subject to
extensive governmental regulation, the availability and cost of capital funds,
and interest rate changes. General market downturns may affect financial
services companies adversely.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit ratings/score,
increasing potential default), prepayment risk (when interest rates decline,
borrowers
may
pay off their mortgages sooner than expected which can reduce the Fund’s returns
because the Fund may have to reinvest its assets at lower interest rates), call
risk (similar to prepayment risk, an issuer may pay its obligations under a
security sooner than expected), U.S. government securities risk (securities
backed by different U.S. government agencies are subject to varying levels of
credit rating risk) and issuer risk (the risk that a private issuer cannot meet
its obligations).
In
addition, current ESG metrics used by the sub-adviser are limited for
mortgage-related and asset-backed securities as ESG metrics are available only
for the corporate issuer of those securities and not for each underlying
individual security. This results in the evaluation of ESG considerations for
the corporate issuer of a pool of mortgage-related securities and asset-backed
securities at the corporate issuer level but not the underlying securities that
constitute the pool.
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and ceased publication of a majority of
U.S. dollar LIBOR settings on a representative basis on June 30, 2023. In
addition, global regulators previously announced that, with limited exceptions,
no new LIBOR-based contracts should be entered into after 2021. Actions by
regulators have resulted in the establishment of alternative reference rates to
LIBOR in most major currencies.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management
team
using investment policies, objectives, guidelines, and restrictions that were
substantially similar to those of the Fund. Prior to the Reorganization, the
Fund had not yet commenced operations. The bar chart shows the performance of
the Predecessor Fund’s Class I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
0.06%
Best and worst quarterly performance
reflected within the bar chart: Q4 2022: 2.64%; Q1 2022: (5.75)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
Since
Inception |
Class
I (incepted
December 14,
2020) (before taxes) |
(12.46)% |
(6.90)% |
Class I (after taxes on distributions)
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(13.15)% |
(7.46)% |
Class
I (after
taxes on distributions and sale of Fund
shares)
|
(7.37)% |
(5.42)% |
Class
I-2 (incepted
December 14,
2020) (before taxes) |
(12.46)% |
(6.90)% |
Bloomberg
US Aggregate Bond Index (reflects no deductions for
fees, expenses or taxes) (based on Class I inception date
of December 14,
2020) |
(13.01)% |
(7.18)% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Pacific Capital, LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience
with Fund |
David
Weismiller, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2020) |
Ying
Qiu, CFA, Managing Director and Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2020) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Strategic Income Fund |
Investment
Goal
This Fund seeks a high level of current income. The Fund may also
seek capital appreciation.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
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A |
C |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
I |
I-2 |
Management
Fee1 |
0.69% |
0.69% |
0.64% |
0.69% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
None |
Total
Annual Fund Operating Expenses |
0.94% |
1.69% |
0.64% |
0.69% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.94% |
1.69% |
0.64% |
0.69% |
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1 |
The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The
Advisory Fee is borne by the Fund at the same annual rate for all share
classes of 0.59% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.10% for Class A, Class C and Class I-2 and 0.05% for Class I of the
average net assets of the class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 0.94% for Class A,
1.69% for Class C, 0.64% for Class I, and 0.69% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future periods.
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Examples
The examples are intended to help you
compare the cost of investing in the Fund with the cost of investing in other
Funds of the Trust or other mutual funds. Each Example assumes that you invest
$10,000
in the noted share class of the Fund for the time periods indicated,
that your investment has a 5% return each year, and that the Fund’s annual
operating expenses remain as stated in the previous table for the time periods
shown, except for the ten-year amounts for Class C shares that reflect the
conversion to Class A shares six years after the end of the calendar month in
which the shares were purchased and the fee waiver and the fee waiver (expense
limitation) which is only reflected for the contractual periods. Although your
actual costs may be higher or lower, the examples show what your costs would be
based on these assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I |
I-2 |
1
year |
$517 |
$272 |
$65 |
$70 |
3
years |
$712 |
$533 |
$205 |
$221 |
5
years |
$923 |
$918 |
$357 |
$384 |
10
years |
$1,531 |
$1,998 |
$798 |
$859 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I |
I-2 |
1
year |
$517 |
$172 |
$65 |
$70 |
3
years |
$712 |
$533 |
$205 |
$221 |
5
years |
$923 |
$918 |
$357 |
$384 |
10
years |
$1,531 |
$1,998 |
$798 |
$859 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds Strategic Income was
45% of the average
value of the Fund. A higher portfolio turnover rate reflects a greater number of
securities being bought or sold, which may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
This Fund invests principally in income producing debt
instruments. The Fund’s allocations to non-investment grade debt instruments and
investment grade debt instruments will change based on the sub-adviser’s view of
market conditions and, as a result, may range from up to 70% of the Fund’s
assets in non-investment grade (high yield/high risk, sometimes called “junk
bonds”) debt instruments and floating rate loans to up to 65% of the Fund’s
assets in investment grade debt instruments, including corporate debt
securities, asset-backed securities, mortgage-related securities, U.S.
government securities and agency securities. Debt instruments in which the Fund
invests may include those denominated in U.S. dollars and issued by foreign
entities in developed markets.
The
Fund’s weighted average duration is expected to be within a range of one to
seven years. Duration is often used to measure a bond’s or fund’s sensitivity to
interest rates. The longer a fund’s duration, the more sensitive it is to
Interest
Rate Risk.
The shorter a fund’s duration, the less sensitive it is to Interest
Rate Risk.
The
Fund may also invest up to 10% of its assets, but not to exceed 20% in the
aggregate, in each of the following investments: foreign currency denominated
debt instruments, convertible securities or equity securities.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Once this is determined, the sub-adviser looks for
companies that it believes have sustainable competitive positions, strong
management teams and the ability to repay or refinance their debt obligations.
The sub-adviser performs a credit analysis on each potential issuer and a
relative value analysis for each potential investment. When selecting
investments, the sub-adviser may invest in instruments that it believes have the
potential for capital appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
Individual investments may be purchased or sold in the event the sub-adviser
decides to adjust debt asset class weightings within the portfolio. An
investment is generally sold when the issue has realized its price appreciation
target, the issue no longer offers relative value, or an adverse change in
corporate or sector fundamentals has occurred.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal
payments
on an instrument when those payments are due (“default”). The risk of a default
is higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce the
Fund’s income or ability to recover amounts due and may reduce the value of the
debt instrument, sometimes dramatically.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads, and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper the Fund’s ability to buy or sell loans and
negatively affect the transaction price. A significant portion of the floating
rate loans held by the Fund may be “covenant lite” loans that contain fewer or
less restrictive constraints on the borrower or other borrower-friendly
characteristics and offer less protections for investors than covenant loans. It
may take longer than seven days for transactions in loans to settle. This may
result in cash proceeds not being immediately available to the Fund, requiring
the Fund to borrow cash which would increase the Fund’s expenses. The Fund is
also subject to credit
risk
with respect to the issuer of the loan. Investments in junior loans involve a
higher degree of overall risk.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it is
unclear whether these protections are available to an investment in a
loan.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities (including loans) may be more volatile than
investment grade securities.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading halts or wars. The Fund may not be able to
sell a holding quickly at the price it has valued the holding, may be unable to
take advantage of market opportunities or may be forced to sell other more
desirable, more liquid securities or sell less liquid or illiquid securities at
a loss if needed to raise cash to conduct operations, including to meet
redemption
requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Convertible
Securities Risk:
Convertible securities are generally subject to the risks of stocks when the
underlying stock price is high relative to the conversion price (because the
conversion feature is more valuable) and to the risks of debt securities when
the underlying stock price is low relative to the conversion price (because the
conversion feature is less valuable). Convertible securities are also generally
subject to credit
risk,
as they tend to be of lower credit quality, and interest
rate risk, though
they generally are not as sensitive to interest rate changes as conventional
debt securities. A convertible security’s value also tends to increase and
decrease with the underlying stock and typically has less potential for gain or
loss than the underlying stock.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of the Fund’s investments denominated in or with
exposure to that foreign currency.
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country, or region.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer
durations
tend to be more sensitive to changes in interest rates, making them more
volatile than debt instruments with shorter durations or floating or adjustable
interest rates. During periods when interest rates are low or there are negative
interest rates, the Fund’s yield (and total return) also may be low, and the
Fund may experience low or negative returns. The Fund may be subject to
heightened levels of interest rate risk because the Federal Reserve has raised,
and may continue to raise, interest rates. As interest rates rise, the value of
fixed income investments will generally decrease.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks
affecting the housing market or the market for the assets underlying such
securities. These securities are also subject to extension risk (the risk that
rising interest rates extend the duration of fixed mortgage-related and other
asset-backed securities, making them more sensitive to changes in interest
rates), interest rate risk (the risk that rising interest rates will cause a
decline in the value of a fixed income security), subprime risk (the risk that
these securities have exposure to borrowers with lower credit ratings/scores,
increasing potential default), prepayment risk (when interest rates decline,
borrowers may pay off their mortgages sooner than expected which can reduce the
Fund’s returns because the Fund may have to reinvest its assets at lower
interest rates), call risk (similar to prepayment risk, an issuer may pay its
obligations under a security sooner than expected), U.S. government securities
risk (securities backed by different U.S. government agencies are subject to
varying levels of credit rating risk) and issuer risk (the risk that a private
issuer cannot meet its obligations).
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and ceased publication of a majority of
U.S. dollar LIBOR settings on a representative basis on June 30, 2023. In
addition, global
regulators previously announced that, with limited exceptions, no
new LIBOR-based contracts should be entered into after 2021. Actions by
regulators have resulted in the establishment of alternative reference rates to
LIBOR in most major currencies.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows the performance of the Predecessor Fund’s Class
I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
4.50%
Best and worst quarterly performance
reflected within the bar chart:
Q2
2020: 11.57%; Q1
2020: (10.68)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
I (incepted
December 19,
2011) (before taxes) |
(9.66)% |
2.61% |
3.72% |
Class
I (after
taxes on distributions)
|
(11.26)% |
0.85% |
1.75% |
Class
I (after
taxes on distributions and sale of Fund
shares)
|
(5.64)% |
1.29% |
2.00% |
Class
A (incepted
June 29,
2012) (before taxes) |
(13.69)% |
1.41% |
2.97% |
Class
C (incepted
June 29,
2012) (before taxes) |
(11.42)% |
1.56% |
2.68% |
Class
I-2 (incepted
June 29,
2012) (before taxes) |
(9.65)% |
2.54% |
3.68% |
Bloomberg US Aggregate Bond Index
(reflects no deductions for
fees, expenses or taxes)
|
(13.01)% |
0.02% |
1.06% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Pacific Capital, LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience
with Fund |
Brian
M. Robertson, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2011) |
Michael
Marzouk, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2016) |
David
Weismiller, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2016) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Floating Rate Income Fund |
Investment
Goal
This Fund seeks a high level of current
income.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
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A |
C |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
3.00% |
None |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
C |
I |
I-2 |
Management
Fee1 |
0.75% |
0.75% |
0.67% |
0.75% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
None |
Other
Expenses2 |
0.01% |
0.01% |
0.01% |
0.01% |
Acquired
Fund Fees and Expenses3 |
0.02% |
0.02% |
0.02% |
0.02% |
Total
Annual Fund Operating Expenses |
1.03% |
1.78% |
0.70% |
0.78% |
Less
Fee Waiver4 |
(0.01)% |
(0.01)% |
0.00% |
(0.01)% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.02% |
1.77% |
0.70% |
0.77% |
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1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administration Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.62% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.13% for Class A, Class C and Class I-2 and 0.05% for Class I of the
average net assets of the class. |
2 |
“Other
Expenses” include interest expense of 0.01%. Interest expense is borne by
the Fund separately from the management fees paid to Aristotle Investment
Services, LLC. |
3 |
Acquired
Fund Fees and Expenses are expenses incurred indirectly by the Fund
through its ownership of shares in other investment companies and have
been estimated based on expected allocations to underlying
funds. |
4 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 1.02% for Class A,
1.77% for Class C, 0.72% for Class I, and 0.77% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future periods.
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Examples
The examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in the noted
share class of the Fund for the time periods indicated, that your investment has
a 5% return each year, and that the Fund’s annual operating expenses remain as
stated in the previous table for the time periods shown, except for the ten-year
amounts for Class C shares that reflect the conversion to Class A shares six
years after the end of the calendar month in which the shares were purchased and
the fee waiver and the fee waiver (expense limitation) which are only reflected
for the contractual periods. Although your actual costs may be higher or lower,
the examples show what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I |
I-2 |
1
year |
$401 |
$280 |
$72 |
$79 |
3
years |
$616 |
$558 |
$224 |
$247 |
5
years |
$850 |
$963 |
$390 |
$431 |
10
years |
$1,520 |
$2,093 |
$871 |
$964 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
|
Share
Class |
|
A |
C |
I |
I-2 |
1
year |
$401 |
$180 |
$72 |
$79 |
3
years |
$616 |
$558 |
$224 |
$247 |
5
years |
$850 |
$963 |
$390 |
$431 |
10
years |
$1,520 |
$2,093 |
$871 |
$964 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds Floating Rate Income (the
“Predecessor Fund”) was 66% of the average value of the Fund. A higher
portfolio turnover rate reflects a greater number of securities being bought or
sold, which may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
This
Fund invests principally in income producing floating rate loans and floating
rate debt securities. Under normal circumstances, this Fund invests at least 80%
of its assets in floating rate loans and floating rate debt securities. Floating
rate loans and floating rate debt securities are those with interest rates which
float, adjust, or vary periodically based upon a benchmark indicator, a
specified adjustment schedule or prevailing interest rates. Floating rate loans
and floating rate debt securities in which the Fund invests consist of senior
secured and unsecured floating rate loans, secured and unsecured second lien
floating rate loans, and floating rate debt securities of domestic and foreign
issuers. Senior floating rate loans and some floating rate debt securities are
debt instruments that may have a right to payment that is senior to most other
debts of the borrowers. Second lien loans are generally second in line in terms
of repayment priority with respect to the pledged collateral. Borrowers may
include corporations, partnerships and other entities that operate in a variety
of industries and geographic regions. Generally, secured floating rate loans are
secured by specific assets of the borrower.
Floating
rate loans will generally be purchased from banks or other financial
institutions through assignments or participations. A direct interest in a
floating rate loan may be acquired directly from the agent of the lender or
another lender by assignment or an indirect
interest
may be acquired as a participation in another lender’s portion of a floating
rate loan.
The
Fund is expected to invest substantially all of its assets in floating rate
loans and other debt instruments that are rated non-investment grade or, if
unrated, are of comparable quality as determined by the sub-adviser. The Fund
may invest up to 20% of its assets in other types of debt instruments or
securities including non-investment grade (high yield/high risk, sometimes
called “junk bonds”) debt instruments.
The
Fund may invest up to 25% of its assets in U.S. dollar denominated foreign
investments, principally in developed markets.
Fundamental
Research Process.
Individual investment selection is based on the sub-adviser’s fundamental
research process. The sub-adviser’s fundamental research process combines a
bottom-up issuer analysis and top-down market assessment. A bottom-up issuer
analysis relies upon the sub-adviser’s fundamental research analysis of
individual issuers. A top-down market assessment provides a framework for
portfolio risk positioning and sector allocations. Once this is determined, the
sub-adviser looks for companies that it believes have sustainable competitive
positions, strong management teams and the ability to repay or refinance its
debt obligations. The sub-adviser performs a credit analysis on each potential
issuer and a relative value analysis for each potential investment. When
selecting investments, the sub-adviser may invest in instruments that it
believes have the potential for capital
appreciation.
An investment is generally sold when the issue has realized its
price appreciation target, the issue no longer offers relative value, or an
adverse change in corporate or sector fundamentals has
occurred.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper the Fund’s ability to buy or sell loans and
negatively affect the transaction price. A significant portion of the floating
rate loans held by the Fund may be “covenant lite” loans that contain fewer or
less restrictive constraints on the borrower or other borrower-friendly
characteristics and
offer
less protections for investors than covenant loans. It may take longer than
seven days for transactions in loans to settle. This may result in cash proceeds
not being immediately available to the Fund, requiring the Fund to borrow cash
which would increase the Fund’s expenses. The Fund is also subject to
credit
risk
with respect to the issuer of the loan. Investments in junior loans involve a
higher degree of overall risk.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it is
unclear whether these protections are available to an investment in a
loan.
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce the
Fund’s income or ability to recover amounts due and may reduce the value of the
debt instrument, sometimes dramatically.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities (including loans) may be more volatile than
investment grade securities.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general
supervision
for issuers and markets are more common in certain foreign countries. Enforcing
legal rights can be difficult, costly, and slow in certain foreign countries,
and can be particularly difficult against foreign governments. In addition,
foreign markets can react differently to these conditions than the U.S. market.
Markets and economies throughout the world are becoming increasingly
interconnected, and conditions or events in one market, country or region may
adversely impact investments or issuers in, or foreign exchange rates with,
another market, country, or region.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, the Fund’s yield (and total
return) also may be low, and the Fund may experience low or negative returns.
The Fund may be subject to heightened levels of interest rate risk because the
Federal Reserve has raised, and may continue to raise, interest rates. As
interest rates rise, the value of fixed income investments will generally
decrease.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading halts or wars. The Fund may not be able to
sell a holding quickly at the price it has valued the holding, may be unable to
take advantage of market opportunities or may be forced to sell other more
desirable, more liquid securities or sell less liquid or illiquid securities at
a loss if needed to raise cash to conduct operations, including to meet
redemption requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and ceased publication of a majority of
U.S. dollar LIBOR settings on a representative basis on June 30, 2023. In
addition, global regulators previously announced that, with limited exceptions,
no new LIBOR-based contracts should be entered into after 2021. Actions by
regulators have resulted
in
the establishment of alternative reference rates to LIBOR in most major
currencies.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing the sale of
securities in a short timeframe and potential increases in expenses to the Fund
and its remaining shareholders, both of which could negatively impact
performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows the performance of the Predecessor Fund’s Class
I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
10.42%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 6.84%; Q1 2020: (10.39)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
I (incepted
June 30,
2011) (before taxes) |
(0.83)% |
2.77% |
3.41% |
Class
I (after
taxes on distributions)
|
(3.03)% |
0.82% |
1.46% |
Class
I (after
taxes on distributions and sale of Fund
shares)
|
(0.50)% |
1.29% |
1.74% |
Class
A (incepted
December 30,
2011) (before taxes) |
(4.20)% |
1.82% |
2.78% |
Class
C (incepted
December 30,
2011) (before taxes) |
(2.89)% |
1.72% |
2.36% |
Class
I-2 (incepted
June 29,
2012) (before taxes) |
(0.86)% |
2.72% |
3.37% |
Credit Suisse Leveraged Loan Index
(reflects no deductions for
fees, expenses or taxes)
|
(0.94)% |
2.74% |
3.38% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Pacific Capital, LLC The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience
with Fund |
J.P.
Leasure, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2011) |
Michael
Marzouk, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2011) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
High Yield Bond Fund |
Investment
Goal
This Fund seeks a high level of current
income.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
|
A |
C |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
C |
I |
I-2 |
Management
Fee1 |
0.70% |
0.70% |
0.65% |
0.70% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
None |
Total
Annual Fund Operating Expenses |
0.95% |
1.70% |
0.65% |
0.70% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.95% |
1.70% |
0.65% |
0.70% |
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1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administration Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.60% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.10% for Class A, Class C and Class I-2 and 0.05% for Class I of the
average net assets of the class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 0.95% for Class A,
1.70% for Class C, 0.65% for Class I, and 0.70% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future periods.
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Examples
The examples are intended to help you
compare the cost of investing in the Fund with the cost of investing in other
Funds of the Trust or other mutual funds. Each Example assumes that you invest
$10,000 in the noted share class of the Fund for the time periods indicated,
that your investment has a 5% return each year, and that the Fund’s
annual operating expenses remain as stated in the previous table for
the time periods shown, except for the ten-year amounts for Class C shares that
reflect the conversion to Class A shares six years after the end of the calendar
month in which the shares were purchased and the fee waiver (expense limitation)
which is only reflected for the contractual periods. Although your actual costs
may be higher or lower, the examples show what your costs would be based on
these assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I |
I-2 |
1
year |
$518 |
$273 |
$66 |
$72 |
3
years |
$715 |
$536 |
$208 |
$224 |
5
years |
$928 |
$923 |
$362 |
$390 |
10
years |
$1,542 |
$2,009 |
$810 |
$871 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
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Share
Class |
|
A |
C |
I |
I-2 |
1
year |
$518 |
$173 |
$66 |
$72 |
3
years |
$715 |
$536 |
$208 |
$224 |
5
years |
$928 |
$923 |
$362 |
$390 |
10
years |
$1,542 |
$2,009 |
$810 |
$871 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds High Income (the
“Predecessor Fund”) was 35% of the average value of the Fund. A higher
portfolio turnover rate reflects a greater number of securities being bought or
sold, which may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in
non-investment grade (high yield/high risk, sometimes called “junk bonds”) debt
instruments or in instruments with characteristics of non-investment grade debt
instruments. The Fund invests principally in instruments that have intermediate
to long terms to maturity. Debt instruments in which the Fund invests focus on
corporate bonds and notes, but may also include floating rate loans, and may
also be of foreign issuers that are denominated in U.S. dollars.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk
positioning
and sector allocations. Once this is determined, the sub-adviser looks for
companies that it believes have sustainable competitive positions, strong
management teams and the ability to repay or refinance its debt obligations. The
sub-adviser performs a credit analysis on each potential issuer and a relative
value analysis for each potential investment. When selecting investments, the
sub-adviser may invest in instruments that it believes have the potential for
capital appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
An investment is generally sold when the issue has realized its price
appreciation target, the issue no longer offers relative value, or an adverse
change in corporate or sector fundamentals has
occurred.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
interest
rate risk
and credit
risk,
which may affect their value.
The market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce the
Fund’s income or ability to recover amounts due and may reduce the value of the
debt instrument, sometimes dramatically.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies that are
highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk,
and subject to a greater risk of default than higher rated securities. High
yield/high risk securities (including loans) may be more volatile than
investment grade securities.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading halts or wars. The Fund may not be able to
sell a holding quickly at the price it has valued the holding, may be unable to
take advantage of market opportunities or may be forced to sell other more
desirable, more liquid securities or sell less liquid or illiquid securities at
a loss if needed to raise cash to conduct operations, including to meet
redemption requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads, and delayed
settlement periods. Purchases and sales of loans are generally subject to
contractual restrictions that must be fulfilled before a loan can be bought or
sold. These restrictions may hamper the Fund’s ability to buy or sell loans and
negatively affect the transaction price. A significant portion of the floating
rate loans held by the Fund may be “covenant lite” loans that contain fewer or
less restrictive constraints on the borrower or other borrower-friendly
characteristics and offer less protections for investors than covenant loans. It
may take longer than seven days for transactions in loans to settle. This may
result in cash proceeds not being immediately available to the Fund, requiring
the Fund to borrow cash which would increase the Fund’s expenses. The Fund is
also subject to credit
risk
with respect to the issuer of the loan. Investments in junior loans involve a
higher degree of overall risk.
U.S.
federal securities laws afford certain protections against fraud and
misrepresentation in connection with the offering or sale of a security, as well
as against manipulation of trading markets for securities. However, it is
unclear whether these protections are available to an investment in a
loan.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain
foreign countries. Enforcing legal rights can be difficult, costly, and slow in
certain foreign countries, and can be particularly difficult against foreign
governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country, or region.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable interest rates. During periods when interest
rates are low or there are negative interest rates, the Fund’s yield (and total
return) also may be low, and the Fund may experience low or negative returns.
The Fund may be subject to heightened levels of interest rate risk because the
Federal Reserve has raised, and may continue to raise, interest rates. As
interest rates rise, the value of fixed income investments will generally
decrease.
•LIBOR
Transition Risk:
Certain investments in which an Underlying Fund invests rely in some manner on
the London Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the
rate at which contributing banks may obtain short-term borrowings from each
other in the London interbank market as determined by ICE Benchmark
Administration (“IBA”), the administrator of LIBOR. Previously, the Financial
Conduct Authority (“FCA”), which regulates financial markets and financial
services firms in the United Kingdom, announced that it would no longer compel
the banks to continue to submit the daily rates for the calculation of LIBOR
after 2021. The IBA ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and ceased publication of a majority of
U.S. dollar LIBOR settings on a representative basis on June 30, 2023. In
addition, global regulators previously announced that, with limited exceptions,
no new LIBOR-based contracts should be entered into after 2021. Actions by
regulators have resulted in the establishment of alternative reference rates to
LIBOR in most major currencies.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing the sale of
securities in a short timeframe and potential increases in expenses to the Fund
and its remaining shareholders, both of which could negatively impact
performance.
Performance
The bar chart and Average Annual Total Returns table
below provide some indication of the risk of investing in the Fund by showing
changes in the performance of the Fund from year to year and showing
how the Fund’s returns compare to a broad-based market index.
The Fund performance shown below is the performance of the Predecessor Fund as a
result of a reorganization of the Predecessor Fund into the Fund on April 17,
2023 (the “Reorganization”). The Predecessor Fund was managed by the same
portfolio management team using investment policies, objectives, guidelines, and
restrictions that were substantially similar to those of the Fund. Prior to the
Reorganization, the Fund had not yet commenced operations. The bar chart shows
the performance of the Predecessor Fund’s Class I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
5.72%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 9.74%; Q1 2020: (14.16)%
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Average
Annual Total Returns (For
the periods ended December 31,
2022) |
1
year |
5
years |
10
years |
Class
I (incepted
December 19,
2011) (before taxes) |
(10.21)% |
2.08% |
3.52% |
Class
I (after
taxes on distributions)
|
(12.21)% |
(0.12)% |
1.12% |
Class
I (after
taxes on distributions and sale of Fund
shares)
|
(6.03)% |
0.68% |
1.64% |
Class
A (incepted
June 29,
2012) (before taxes) |
(14.33)% |
0.91% |
2.79% |
Class
C (incepted
June 29,
2012) (before taxes) |
(12.06)% |
1.08% |
2.50% |
Class
I-2 (incepted
June 29,
2012) (before taxes) |
(10.30)% |
2.08% |
3.50% |
Bloomberg US High-Yield 2% Issuer Capped Bond Index
(reflects no deductions for
fees, expenses or taxes)
|
(11.18)% |
2.29% |
4.02% |
The
after-tax returns (a) are calculated using the highest historical individual
federal marginal income tax rates and do not reflect the
impact of state and local
taxes; (b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Pacific Capital, LLC. The persons jointly and primarily responsible
for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience
with Fund |
Brian
M. Robertson, CFA, Senior Managing Director and Portfolio
Manager |
Since
2023
(with
Predecessor Fund since 2011) |
C.
Robert Boyd, Senior Managing Director, Head of Credit Research and
Portfolio Manager |
Since
2023
(with
Predecessor Fund since 2014) |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle
Small/Mid Cap Equity Fund |
Investment
Goal
This Fund seeks long-term capital
appreciation.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
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A |
C |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
I |
I-2 |
Management
Fee1 |
0.90% |
0.90% |
0.85% |
0.90% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
None |
Total
Annual Fund Operating Expenses |
1.15% |
1.90% |
0.85% |
0.90% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.15% |
1.90% |
0.85% |
0.90% |
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1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administration Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.70% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.20% for Class A, Class C and Class I-2, and 0.15% for Class I of the net
average assets of the class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 1.20% for Class A,
1.95% for Class C, 0.85% for Class I, and 0.95% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future periods.
|
Examples
The examples are intended to help you
compare the cost of investing in the Fund with the cost of investing in other
Funds of the Trust or other mutual funds. Each Example assumes that you invest
$10,000 in the noted share class of the Fund for the time periods indicated,
that your investment has a 5% return each year, and that the Fund’s
annual operating expenses remain as stated in the previous table for
the time periods shown, except for the ten-year amounts for Class C shares that
reflect the conversion to Class A shares six years after the end of the calendar
month in which the shares were purchased and the fee waiver which is only
reflected for the contractual periods. Although your actual costs may be higher
or lower, the examples show what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
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Share
Class |
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A |
C |
I |
I-2 |
1
year |
$537 |
$293 |
$87 |
$92 |
3
years |
$775 |
$597 |
$271 |
$287 |
5
years |
$1,031 |
$1,026 |
$471 |
$498 |
10
years |
$1,763 |
$2,222 |
$1,049 |
$1,108 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
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Share
Class |
|
A |
C |
I |
I-2 |
1
year |
$537 |
$193 |
$87 |
$92 |
3
years |
$775 |
$597 |
$271 |
$287 |
5
years |
$1,031 |
$1,026 |
$471 |
$498 |
10
years |
$1,763 |
$2,222 |
$1,049 |
$1,108 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of Pacific Funds Small/Mid Cap (the
“Predecessor Fund”) was 33% of the average value of the Fund. A higher
portfolio turnover rate reflects a greater number of securities being bought or
sold, which may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in equity
securities of small-capitalization and mid-capitalization companies. The
sub-adviser considers small and medium capitalization companies to be those
companies that, at the time of initial purchase, have a market capitalization
equal to or less than that of the largest company in the Russell
2500® Index
(the largest market capitalization of a company in the Russell 2500®
Index was approximately $51.6 billion during the 12-month period ended December
31, 2022). The Russell 2500® Index
is reconstituted annually. Because small and medium capitalization companies are
defined by reference to an index, the range of market capitalization of
companies in which the Fund invests may vary with market conditions. Investments
in companies that move above or below the capitalization range may continue to
be held by the Fund in the sub-adviser’s sole discretion. As of December 31,
2022, the weighted
average
market capitalization of the Predecessor Fund was approximately $7.8
billion.
The
Fund’s investments in equity securities may include common stocks, depository
receipts and exchange-traded funds (“ETFs”) that invest primarily in equity
securities of small and medium capitalization companies. Depository receipts
represent interests in foreign securities held on deposit by banks. ETFs are
investment companies that invest in portfolios of securities designed to track
particular market segments or indices, the shares of which are bought and sold
on securities exchanges.
The
Fund seeks to meet its investment goal by investing primarily in equity
securities of U.S. issuers but may invest up to 5% of its total assets in
American Depository Receipts (“ADRs”). ADRs are receipts that represent
interests in foreign securities held on deposit by U.S. banks.
In
pursuing the Fund’s investment goal, the sub-adviser employs a fundamental,
bottom-up research driven approach to identify companies for investment by the
Fund. The sub-adviser focuses on those companies that it believes have
high-quality businesses that are undervalued by the market relative to what the
sub-adviser believes to be their fair value. The sub-adviser seeks to identify
high-quality businesses by focusing on companies that it believes have the
following attributes: disciplined business plans; attractive business
fundamentals; sound balance sheets; financial strength; experienced, motivated
company management; reasonable competition; and/or a record of long-term value
creation.
The
Fund is benchmarked to the Russell 2500®
Index. However, the sub-adviser is not constrained by the composition of the
Russell 2500®
Index in selecting investments for the Fund.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer's products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and
may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading halts or wars. The Fund may not be able to
sell a holding quickly at the price it has valued the holding, may be unable to
take advantage of market opportunities or may be forced to sell other more
desirable, more liquid securities or sell less liquid or illiquid securities at
a loss if needed to raise cash to conduct operations, including to meet
redemption requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed using investment policies, objectives, guidelines, and restrictions that
were substantially similar to those of the Fund. Prior to the Reorganization,
the Fund had not yet commenced operations. The Predecessor Fund acquired the
assets of the Rothschild U.S. Small/Mid-Cap Core Fund (the “First Predecessor
Fund”) in a reorganization transaction on January 11, 2016. The Predecessor
Fund’s objectives (goals), policies, guidelines and restrictions are
substantially the same as those of the First Predecessor Fund.
The
bar chart shows the performance of the Predecessor Fund’s Class I-2 shares. The
performance figures shown below for the share classes of the Fund for periods
prior to January 11, 2016, reflect the historical performance of the
then-existing Institutional Class shares of the First Predecessor Fund. The
performance figures for periods prior to January 11, 2016, have not been
adjusted to reflect fees and expenses of Class A, Class C, Class R6, and Class
I-2 shares of the
Predecessor
Fund, respectively. If these returns had been adjusted, then performance for the
share classes would be lower than the returns shown based on differences in
their fee and expense structures. The Institutional Class shares of the First
Predecessor Fund commenced operations on December 31, 2014, and the Since
Inception returns in the table below are based on this date.
Prior
to the Reorganization, Great Lakes Advisors, LLC served as the sub-adviser to
the Predecessor Fund, replacing Rothschild & Co Asset Management US Inc.,
which previously served as sub-adviser to the Predecessor Fund since its
inception. Aristotle Capital Boston, LLC is the sub-adviser to the Fund and
employs a different investment approach than the Predecessor Fund’s
sub-advisers. If the Fund’s current sub-adviser and strategies had been in place
for periods prior to April 17, 2023, the performance information shown below
would have been different.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar Year Total
Returns (%) |
1Class I-2
return for the period 1/1/23 through 9/30/23:
1.54%
Best and worst quarterly performance
reflected within the bar chart: Q4 2020: 27.05%; Q1 2020: (32.01)%
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Average
Annual Total Returns (For
the periods ended December 31, 2022) |
1
year |
5
years |
Since
Inception |
Class
I-2 (incepted
January 8,
2016)(before taxes) |
(20.22)% |
2.61% |
5.52% |
Class
I-2 (after
taxes on distributions) |
(26.68)% |
0.44% |
4.08% |
Class
I-2 (after
taxes on distributions and sale of Fund
shares) |
(7.13)% |
2.11% |
4.44% |
Class
A (incepted
January 8,
2016)(before taxes) |
(23.76)% |
1.47% |
4.75% |
Class
C (incepted
January 8,
2016)(before taxes) |
(21.51)% |
1.58% |
4.62% |
Class
I (incepted
December 31,
2014)(before
taxes) |
(20.12)% |
2.69% |
5.59% |
Russell
2500 Index (reflects no deductions for
fees, expenses or taxes) (based on December 31,
2014 inception date of the Predecessor
Fund) |
(18.37)% |
5.89% |
7.44% |
The
after-tax returns (a) are calculated using the highest historical individual
federal marginal income tax rates and do not reflect the
impact of state and local
taxes; (b) are shown for the
Predecessor Fund’s Class I-2 shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Capital Boston, LLC
The
persons jointly and primarily responsible for day-to-day management of the Fund
are:
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|
Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
David
M. Adams, CFA, Principal, CEO and Portfolio Manager |
Since
2023 |
Jack
McPherson, CFA, Principal, President and Portfolio Manager |
Since
2023 |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries – please
turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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|
|
Aristotle
Small Cap Equity Fund |
Investment
Goal
This Fund seeks long-term capital
appreciation.
Fees and Expenses of the
Fund
The
tables that follow describe the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and examples
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to this Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
|
A |
C |
I |
R6 |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
1.00% |
None |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
|
A |
C |
I |
R6 |
I-2 |
Management
Fee1 |
0.90% |
0.90% |
0.90% |
0.85% |
0.90% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
1.00% |
None |
None |
None |
Total
Annual Fund Operating Expenses |
1.15% |
1.90% |
0.90% |
0.85% |
0.90% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.15% |
1.90% |
0.90% |
0.85% |
0.90% |
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|
1 |
The
Management Fee consists of an Advisory Fee and a
Supervision and Administration Fee paid to Aristotle Investment Services,
LLC. The Advisory Fee is borne by the Fund at the same annual rate for all
share classes of 0.70% of the average net assets. The Supervision and
Administration Fee is borne separately by each class at an annual rate of
0.20% for Class A, Class C, Class I, and Class I-2, and 0.15% for Class R6
of the net average assets of the class. |
2 |
Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 1.20% for Class A,
1.95% for Class C, 0.90% for Class I, and 0.85% for Class R6. Aristotle
Investment Services, LLC has contractually agreed, through July 31, 2026,
to waive its management fees to the extent that the Fund’s Total Annual
Fund Operating Expenses exceed 0.90% for Class I-2. Aristotle Investment
Services, LLC may not recoup these waivers in future periods.
|
Examples
The examples are intended to help you
compare the cost of investing in the Fund with the cost of investing in other
Funds of the Trust or
other mutual funds. Each Example assumes that you invest $10,000 in
the noted share class of the Fund for the time periods indicated, that your
investment has a 5% return each year, and that the Fund’s annual operating
expenses remain as stated in the previous table for the time periods shown,
except for the ten-year amounts for Class C shares that reflect the conversion
to Class A shares six years after the end of the calendar month in which the
shares were purchased and the fee waiver which is only reflected for the
contractual periods. Although your actual costs may be higher or lower, the
examples show what your costs would be based on these
assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
C |
I |
R6 |
I-2 |
1
year |
$537 |
$293 |
$92 |
$87 |
$92 |
3
years |
$775 |
$597 |
$287 |
$271 |
$287 |
5
years |
$1,031 |
$1,026 |
$498 |
$471 |
$498 |
10
years |
$1,763 |
$2,222 |
$1,108 |
$1,049 |
$1,108 |
|
|
|
|
|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
C |
I |
R6 |
I-2 |
1
year |
$537 |
$193 |
$92 |
$87 |
$92 |
3
years |
$775 |
$597 |
$287 |
$271 |
$287 |
5
years |
$1,031 |
$1,026 |
$498 |
$471 |
$498 |
10
years |
$1,763 |
$2,222 |
$1,108 |
$1,049 |
$1,108 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended December
31, 2022, the portfolio turnover rate of Aristotle Small Cap Equity Fund, a
series of Investment Managers Series Trust (the “Predecessor Fund”), was
19% of the average
value of the Fund. A higher portfolio turnover rate reflects a greater number of
securities being bought or sold, which may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in Annual
Fund Operating Expenses
or in the Examples,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in equity
securities of small-capitalization
companies.
The sub-adviser considers small capitalization companies to be those companies
that, at the time of initial purchase, have a market capitalization equal to or
less than that of the largest company in the Russell 2000®
Index (the largest market capitalization of a company in the Russell
2000®
Index was approximately $16.7 billion during the 12-month period ended December
31, 2022). The Russell 2000®
Index is reconstituted annually. Because small capitalization companies are
defined by reference to an index, the range of market capitalization of
companies in which the Fund invests may vary with
market
conditions. Investments in companies that move above or below the capitalization
range may continue to be held by the Fund in the sub-adviser’s sole discretion.
As of December 31, 2022, the weighted average market capitalization of the
Predecessor Fund was approximately $3.2 billion. The Fund’s investments in
equity securities may include common stocks, depository receipts, and
exchange-traded funds (“ETFs”) that invest primarily in equity securities of
small capitalization companies. Depository receipts represent interests in
foreign securities held on deposit by banks. ETFs are investment companies that
invest in portfolios of securities designed to track particular market segments
or indices, the shares of which are bought and sold on securities
exchanges.
The
Fund seeks to meet its investment goal by investing primarily in equity
securities of U.S. issuers but may invest up to 5% of its total assets in
American Depository Receipts (“ADRs”). ADRs are receipts that represent
interests in foreign securities held on deposit by U.S. banks.
In
pursuing the Fund’s investment goal, the sub-adviser employs a fundamental,
bottom-up research driven approach to identify companies for investment by the
Fund. The sub-adviser focuses on those companies that it believes have
high-quality businesses that are undervalued by the market relative to what the
sub-adviser believes to be their fair value. The sub-adviser seeks to identify
high-quality businesses by focusing on companies that it believes have the
following attributes: disciplined business plans; attractive business
fundamentals; sound balance sheets; financial strength; experienced, motivated
company management; reasonable competition; and/or a record of long-term value
creation.
The
Fund is benchmarked to the Russell 2000®
Index. However, the sub-adviser is not constrained by the composition of the
Russell 2000®
Index in selecting investments for the Fund.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer's products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to
liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Liquidity
Risk: Certain holdings may be difficult to purchase, sell and value,
particularly during adverse market conditions, because there is a limited market
for the investment or there are restrictions on resale. The Fund may invest in
liquid investments that become illiquid due to financial distress, or
geopolitical events such as sanctions, trading halts or wars. The Fund may not
be able to sell a holding quickly at the price it has valued the holding, may be
unable to take advantage of market opportunities or may be forced to sell other
more desirable, more liquid securities or sell less liquid or illiquid
securities at a loss if needed to raise cash to conduct operations, including to
meet redemption requests. This risk may be particularly pronounced with respect
to small-capitalization companies.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on October 23, 2023 (the “Reorganization”). The Predecessor Fund
was managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. The bar chart shows the performance of the Predecessor Fund’s
Class I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
|
|
|
Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
(4.10)%
Best and worst quarterly performance
reflected within the bar chart: Q4 2020: 29.62%; Q1 2020: (33.02)%
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|
|
|
Average
Annual Total Returns (For
the periods ended December 31, 2022) |
1
year |
5
years |
Since
Inception |
Class
I (incepted
October 30,
2015)(before taxes) |
(10.26)% |
4.63% |
7.58% |
Class
I (incepted
October 30, 2015)(after taxes on
distributions) |
(11.27)% |
3.77% |
6.79% |
Class
I (incepted
October 30, 2015)(after taxes on distributions and sale of Fund
shares) |
(5.33)% |
3.49% |
5.94% |
Russell
2000®
Index (reflects no deductions for
fees, expenses or taxes)(based on October 30,
2015 inception date of the Predecessor
Fund) |
(20.44)% |
4.13% |
7.41% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes;
(b) are shown for the
Predecessor Fund’s Class I shares only and will vary for classes of the
Fund; and (c) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Capital Boston, LLC
The
persons jointly and primarily responsible for day-to-day management of the Fund
are:
|
|
|
|
|
|
Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
David
M. Adams, CFA, Principal, CEO and Portfolio Manager |
Since
2023 |
Jack
McPherson, CFA, Principal, President and Portfolio Manager |
Since
2023 |
Purchase
and Sale of Fund Shares, Tax Information, and Payments to Broker-Dealers and
Other Financial Intermediaries
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
|
|
|
Aristotle
Growth Equity Fund |
Investment
Goal
This
Fund seeks long-term
growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to the Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
I |
I-2 |
Management
Fee1 |
0.70% |
0.70% |
0.70% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
None |
None |
Total
Annual Fund Operating Expenses |
0.95% |
0.70% |
0.70% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.95% |
0.70% |
0.70% |
1The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The Advisory
Fee is borne by the Fund at the same annual rate for all share classes of 0.55%
of the average net assets. The Supervision and Administration Fee is borne
separately by each class at an annual rate of 0.15% of the average net assets of
the class.
2Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2025, to waive its management fees to the extent that the Fund’s
Total Annual Fund Operating Expenses exceed 0.70% for Class I Aristotle
Investment Services, LLC may not recoup these waivers in future
periods.
Example
The Example is intended to help you compare
the cost of investing in the Fund with the cost of investing in other Funds of
the Trust or other mutual funds. The Example assumes that you invest $10,000 for
the time periods indicated and redeem all of your shares at the end of those
periods, that your investment has a 5% return each year, and that the Fund’s
annual operating expenses remain as stated in the previous table for the time
periods shown, except for the fee waiver (expense limitation) which is only
reflected for the contractual
periods. Although your actual costs may be higher or lower, the
Example shows what your costs would be based on these
assumptions.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$518 |
$72 |
$72 |
3
years |
$715 |
$224 |
$224 |
5
years |
$928 |
$390 |
$390 |
10
years |
$1,542 |
$871 |
$871 |
|
|
|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$518 |
$72 |
$72 |
3
years |
$715 |
$224 |
$224 |
5
years |
$928 |
$390 |
$390 |
10
years |
$1,542 |
$871 |
$871 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the fiscal year ended March
31, 2023, the portfolio turnover rate of PF Growth Fund (the “Predecessor Fund”)
was 78% of the average
value of the Fund. A higher portfolio turnover rate reflects a greater number of
securities being bought or sold, which may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in Annual
Fund Operating Expenses
or in the Example,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in equity
securities. The Fund’s investments in equity securities may include common
stocks, preferred stocks, convertible preferred stocks, depository receipts,
shares of publicly traded real estate investment trusts (“REITs”), warrants and
rights. The Fund’s investments in depository receipts may include American,
European and Global Depository Receipts (“ADRs,” “EDRs,” and “GDRs,”
respectively). ADRs are receipts that represent interests in foreign securities
held on deposit by U.S. banks. EDRs and GDRs have the same qualities as ADRs,
except that they may be traded in several international trading markets.
Although the Fund may invest in companies of any market capitalization and from
any country, the sub-adviser’s investment process typically focuses on the
universe of U.S. companies with market capitalizations in excess of $2 billion
at initial investment.
In
pursuing the Fund’s investment goal, the Fund’s sub-adviser, employs a
fundamental, bottom-up research driven approach to identify companies for
investment by the Fund. The sub-adviser
seeks
to identify companies that it believes are positioned to benefit from one or
more of the following: (i) shifts in industry spending, government spending and
consumer trends; (ii) gains in market share from innovative products and strong
intellectual property; and (iii) cyclical trends in the industry in which they
operate and capable management that can take advantage of those trends. The Fund
is typically composed of companies that, in the aggregate, result in a portfolio
that displays growth characteristics. At times, the Fund’s assets may be
invested in securities of relatively few industries or sectors. Currently, the
Fund is significantly invested in the Information Technology
Sector.
The
Fund is benchmarked to the Russell 1000®
Growth Index. However, the sub-adviser is not constrained by the composition of
the Russell 1000®
Growth Index in selecting investments for the Fund.
The
Fund is a non-diversified investment company.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Growth
Companies Risk:
Growth companies are those that a portfolio manager believes have the potential
for above average or rapid growth but may be subject to greater price volatility
than investments in “undervalued” companies.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization companies.
•Non-Diversification
Risk:
As
a “non-diversified” mutual fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund shares may be more volatile than the values
of shares of more diversified
funds.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of the Fund’s investments denominated in or with
exposure to that foreign currency.
•Foreign
Markets Risk:
Exposure to a foreign market through investments in foreign issuers (companies
or other entities) can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of that market. These
factors can make investments in foreign issuers more volatile and less liquid
than U.S. investments. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. In addition, foreign markets can react differently to these
conditions than the U.S. market. Markets and economies throughout the world are
becoming increasingly interconnected, and conditions or events in one market,
country or region may adversely impact investments or issuers in, or foreign
exchange rates with, another market, country, or region.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Information
Technology Sector Risk:
Information Technology companies face several risks, including operating in
rapidly changing fields, abrupt or erratic market movements, limited product
lines, markets or financial resources, management that is dependent on a limited
number of people, short product cycles, aggressive pricing of products and
services, new market entrants, government regulation and patent and intellectual
property rights and rapid obsolescence of products and services due to
technological innovations or changing consumer preferences. In addition, many
U.S. technology companies have diverse operations, with products or services in
foreign markets, exposing them to foreign
markets risk.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing the sale of
securities in a short timeframe and potential increases in expenses to the Fund
and its remaining shareholders, both of which could negatively impact
performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor
Fund
into the Fund on April 17, 2023 (the “Reorganization”). The Predecessor Fund was
managed using investment policies, objectives, guidelines, and restrictions that
were substantially similar to those of the Fund. Prior to the Reorganization,
the Fund had not yet commenced operations.
MFS
Investment Management served as the sub-adviser to the Predecessor Fund from May
1, 2013, up to the date of the Reorganization. Aristotle Atlantic Partners, LLC
(“Aristotle Atlantic”) serves as sub-adviser for the Fund. Aristotle Atlantic
employs a different investment approach than the Predecessor Fund’s sub-adviser
and the Fund’s principal investment strategies are different than the
Predecessor Fund. If the Fund’s current sub-adviser and strategies had been in
place for prior periods, the performance information shown below would have been
different.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
The
bar chart and performance figures below reflect the historical performance of
the Predecessor Fund’s Class P shares. The performance figures for periods prior
to April 17, 2023 have not been adjusted to reflect fees and expenses of Class A
shares, Class I shares and Class I-2 shares of the Fund, respectively. If these
returns had been adjusted, then performance for the share classes would be
different than the returns shown below due to differences in their fee and
expense structures.
MFS Investment Management began managing the Predecessor Fund on May
1, 2013, and some of its investment policies changed at that time. Another firm
managed the Predecessor Fund before that date.
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|
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23:
18.10%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 25.05%; Q2 2022: (19.54)%
|
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|
|
|
|
|
|
|
|
|
Average
Annual Total Returns (For
the periods ended December 31, 2022) |
1
year |
5
years |
10
years |
Class
P (incepted
September 28,
2001)
(before
taxes) |
(31.24)% |
9.69% |
12.80% |
Class
P (after
taxes on distributions) |
(39.61)% |
4.44% |
9.73% |
Class
P (after
taxes on distributions and sale of Fund
shares) |
(12.09)% |
8.05% |
10.81% |
Russell
1000®
Growth Index
(reflects no deductions for
fees, expenses or taxes) |
(29.14)% |
10.96% |
14.10% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes,
and (b) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Atlantic Partners, LLC. The persons jointly and primarily
responsible for day-to-day management of the Fund are:
|
|
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|
|
Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
Owen
Fitzpatrick, CFA, Principal, Managing Director and Lead Portfolio
Manager |
Since
2023 |
Thomas
M. Hynes, Jr., CFA, Principal, Managing Director and Portfolio
Manager |
Since
2023 |
Brendan
O’Neill, CFA, Principal, Director and Portfolio Manager |
Since
2023 |
Purchase
and Sale of Fund Shares and Tax Information
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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|
|
Aristotle
Value Equity Fund |
Investment
Goal
This Fund seeks long-term growth of
capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to the Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
|
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|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
I |
I-2 |
Management
Fee1 |
0.69% |
0.69% |
0.69% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
None |
None |
Total
Annual Fund Operating Expenses |
0.94% |
0.69% |
0.69% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.94% |
0.69% |
0.69% |
1The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The Advisory
Fee is borne by the Fund at the same annual rate for all share classes of 0.60%
of the average net assets. The Supervision and Administration Fee is borne
separately by each class at an annual rate of 0.09% of the average net assets of
the class.
2Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2026, to waive its management fees to the extent that the Fund’s
Total Annual Fund Operating Expenses exceed 0.69% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future
periods.
Example
The Example is intended to help you compare
the cost of investing in the Fund with the cost of investing in other Funds of
the Trust or other mutual funds. The Example assumes that you invest $10,000 for
the time periods indicated and redeem all of your shares at the end of those
periods, that your investment has a 5% return each year, and that the Fund’s
annual operating expenses remain as stated in the previous table for the time
periods shown. Although your actual
costs may be higher or lower, the Example shows what your costs
would be based on these assumptions.
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$517 |
$70 |
$70 |
3
years |
$712 |
$221 |
$221 |
5
years |
$923 |
$384 |
$384 |
10
years |
$1,531 |
$859 |
$859 |
|
|
|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$517 |
$70 |
$70 |
3
years |
$712 |
$221 |
$221 |
5
years |
$923 |
$384 |
$384 |
10
years |
$1,531 |
$859 |
$859 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the most recent fiscal year,
the portfolio turnover rate of Aristotle Value Equity Fund, a series of
Investment Managers Series Trust (the “Predecessor Fund”) was 20% of the average value of its
portfolio. A higher portfolio turnover rate reflects a greater number of
securities being bought or sold, which may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in Annual
Fund Operating Expenses
or in the Example,
affect the Fund’s performance. For more information regarding the Predecessor
Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal market conditions, the Fund invests at least 80% of its assets in equity
securities. The Fund’s investments in equity securities may include common
stocks, depository receipts, and exchange-traded funds (“ETFs”) that invest
primarily in equity securities. Depository receipts represent interests in
foreign securities held on deposit by banks. ETFs are investment companies that
invest in portfolios of securities designed to track particular market segments
or indices, the shares of which are bought and sold on securities
exchanges.
The
Fund seeks to meet its investment goal by investing primarily in equity
securities of domestic and foreign issuers that are listed on a U.S. exchange or
that are otherwise publicly traded in the United States but may invest up to 20%
of its total assets in American Depository Receipts and Global Depository
Receipts (“ADRs” and “GDRs”, respectively). ADRs are receipts that represent
interests in foreign securities held on deposit by U.S. banks. GDRs have the
same qualities as ADRs, except that they may be traded in several international
trading markets.
In
selecting investments for the Fund, the sub-adviser employs a fundamental,
bottom-up approach. The sub-adviser focuses on those companies that it believes
have high-quality businesses that are undervalued by the market relative to what
the sub-adviser believes to be their fair value. The sub-adviser seeks to
identify high-quality businesses by focusing on companies with the following
attributes: attractive business fundamentals; experienced, motivated company
management; pricing power; sustainable competitive advantages; financial
strength; and/or high or consistently improving market position, return on
invested capital and operating margins.
The
Fund is benchmarked to the Russell 1000®
Value Index and the S&P 500®
Index. However, the sub-adviser is not constrained by the composition of either
index in selecting investments for the Fund.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization companies.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Foreign
Investment Risk:
The prices of foreign securities may be more volatile than the prices of
securities of U.S. issuers because of economic and social conditions, political
developments, and changes in the regulatory environments of foreign markets.
Foreign securities include ADRs and GDRs. Unsponsored ADRs and GDRs are
organized independently and without the cooperation of the foreign issuer of the
underlying securities and involve additional risks because U.S. reporting
requirements do not apply. In addition, the issuing bank may deduct shareholder
distribution, custody, foreign currency exchange, and other fees from the
payment of dividends.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares are trading at a discount, the Fund will receive a
price that is less than the ETF’s net asset value per share. In addition, an ETF
may not replicate exactly the performance of the benchmark index it seeks to
track. An investment in an ETF is an investment in another investment company
and therefore, the Fund’s shareholders will indirectly bear a proportionate
share of any fees and expenses of the ETFs in which the Fund invests. The Fund
will pay brokerage commissions in connection with the purchase and sale of
shares of ETFs.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing the sale of
securities in a short timeframe and potential increases in expenses to the Fund
and its remaining shareholders, both of which could negatively impact
performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on October 23, 2023 (the “Reorganization”). The Predecessor Fund
was managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows the performance of the Predecessor Fund’s Class
I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
|
|
|
Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23: 4.73%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 20.96%; Q1 2020: (23.87)%
|
|
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns (For
the periods ended December 31, 2022) |
1
year |
5
years |
Since
Inception |
Class
I (incepted
August 31,
2016) (before taxes) |
(15.04)% |
7.73% |
10.27% |
Class
I (after
taxes on distributions) |
(15.41)% |
7.39% |
9.94% |
Class
I (after
taxes on distributions and sale of Fund
shares) |
(8.63)% |
6.08% |
8.24% |
Russell
1000®
Growth Index (reflects no deductions for
fees, expenses or taxes) |
(7.54)% |
6.67% |
8.44% |
S&P
500®
Index (reflects no deductions for fees, expenses or taxes)(based on
August 31,
2016, inception date of the Predecessor
Fund) |
(18.11)% |
9.42% |
11.43% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes,
and (b) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Capital Management, LLC. The persons jointly and primarily
responsible for day-to-day management of the Fund are:
|
|
|
|
|
|
Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
Howard
Gleicher, CFA, Chief Executive Officer and Chief Investment
Officer |
Since
2023 |
Gregory
D. Padilla, CFA, Principal and Portfolio Manager |
Since
2023 |
Purchase
and Sale of Fund Shares and Tax Information
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
|
|
|
Aristotle
International Equity Fund |
Investment
Goal
This Fund seeks long-term capital appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to the Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
I |
I-2 |
Management
Fee1 |
0.78% |
0.78% |
0.78% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
None |
None |
Total
Annual Fund Operating Expenses |
1.03% |
0.78% |
0.78% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.03% |
0.78% |
0.78% |
1The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The Advisory
Fee is borne by the Fund at the same annual rate for all share classes of 0.70%
of the average net assets. The Supervision and Administration Fee is borne
separately by each class at an annual rate of 0.08% of the average net assets of
the class.
2Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2026, to waive its management fees to the extent that the Fund’s
Total Annual Fund Operating Expenses exceed 0.78% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future
periods.
Example
The Example is intended to help you compare
the cost of investing in the Fund with the cost of investing in other Funds of
the Trust or other mutual funds. The Example assumes that you invest $10,000 for
the time periods indicated and redeem all of your shares at the end of those
periods, that your investment has a 5% return each year, and that the Fund’s
annual operating expenses remain as stated in the previous table for the time
periods shown. Although your actual
costs may be higher or lower, the Example shows what your costs
would be based on these assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$526 |
$80 |
$80 |
3
years |
$739 |
$249 |
$249 |
5
years |
$969 |
$433 |
$433 |
10
years |
$1,631 |
$966 |
$966 |
|
|
|
|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$526 |
$80 |
$80 |
3
years |
$739 |
$249 |
$249 |
5
years |
$969 |
$433 |
$433 |
10
years |
$1,631 |
$966 |
$966 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the most recent fiscal year,
the portfolio turnover rate of Aristotle International Equity Fund, a series of
Investment Managers Series Trust (the “Predecessor Fund”) was 18% of the average value of its
portfolio. A higher portfolio turnover rate reflects a greater number of
securities being bought or sold, which may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in Annual
Fund Operating Expenses
or in the Example, affect the Fund’s performance. For more information regarding the
Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in publicly
traded equity securities or depository receipts of companies organized,
headquartered, or doing a substantial amount of business outside of the United
States. The Fund’s sub-adviser considers a company that has at least 50% of its
assets located outside the United States or derives at least 50% of its revenue
from business outside the United States as doing a substantial amount of
business outside the United States. The Fund generally invests in securities of
companies located in different regions and in at least three different
countries. The Fund intends to invest no more than 20% of its total assets in
companies organized, headquartered or doing a substantial amount of business in
emerging market countries under normal market conditions.
The
Fund’s investments in equity securities may include common stocks, preferred
stocks, warrants and rights. The Fund’s investments in depository receipts may
include American, European, and Global Depository Receipts (“ADRs,” “EDRs,” and
“GDRs,” respectively). ADRs are receipts that represent interests in foreign
securities held
on
deposit by U.S. banks. EDRs and GDRs have the same qualities as ADRs, except
that they may be traded in several international trading markets. The Fund may
invest in companies of any market capitalization.
In
pursuing the Fund’s investment goal, the sub-adviser employs a fundamental,
bottom-up research driven approach to identify companies for investment by the
Fund. The sub-adviser focuses on those companies that it believes have
high-quality businesses that are undervalued by the market relative to what the
sub-adviser believes to be their fair value. The sub-adviser seeks to identify
high-quality companies by focusing on the following attributes: attractive
business fundamentals, strong financials, experienced, motivated company
management, and high and/or consistently improving market position, return on
invested capital or operating margins.
The
Fund is benchmarked to the MSCI Europe, Australasia and Far East (“EAFE”) Index
(net) and the MSCI All Country World (“ACWI”) ex USA Index (net). However, the
sub-adviser is not constrained by the composition of either index in selecting
investments for the Fund.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Foreign
Investment Risk:
The prices of foreign securities may be more volatile than the prices of
securities of U.S. issuers because of economic and social conditions, political
developments, and changes in the regulatory environments of foreign markets.
Foreign securities include ADRs and GDRs. Unsponsored ADRs and GDRs are
organized independently and without the cooperation of the foreign issuer of the
underlying securities and involve additional risks because U.S. reporting
requirements do not apply. In addition, the issuing bank may deduct shareholder
distribution, custody, foreign currency exchange, and other fees from the
payment of dividends.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of the Fund’s investments denominated in or with
exposure to that foreign currency.
•Geographic
Risk Related to Europe: Europe
includes both developed and emerging markets. Most Western European countries
are members of the European Union (the “EU”), which imposes restrictions on
inflation rates, deficits, and debt levels. Both developed and emerging market
countries in Europe will be significantly affected by the fiscal and monetary
controls of the European Monetary Union. Changes in regulations on trade,
decreasing imports or exports, changes in the exchange rate of the euro,
recessions among European countries and acts of war in the region may have a
significant adverse effect on the economies of other European countries,
including those of Eastern Europe. In particular, the extent and duration of
Russia’s large-scale invasion of Ukraine that began on February 24, 2022, the
resulting sanctions on Russia, and the subsequent impact on global markets and
trade remain unknown but could have a significant adverse impact on the European
economy as well as the price and availability of certain commodities, including
oil and natural gas. The markets in Eastern Europe remain relatively undeveloped
and can be particularly sensitive to political and economic
developments.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries may be
riskier than investments in or exposure to investments in U.S. and other
developed markets for many reasons, including smaller market capitalizations,
greater price volatility, less liquidity, lower credit quality, a higher degree
of political and economic instability, the imposition of economic sanctions,
less governmental regulation and supervision of the financial industry and
markets, and less stringent financial reporting and accounting standards and
controls.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing the sale of
securities in a short timeframe and potential increases in expenses to the Fund
and its remaining shareholders, both of which could negatively impact
performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on October 23, 2023 (the “Reorganization”). The
Predecessor
Fund was managed using investment policies, objectives, guidelines, and
restrictions that were substantially similar to those of the Fund. The bar chart
shows the performance of the Predecessor Fund’s Class I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23: 6.77%
Best and worst quarterly performance
reflected within the bar chart: Q4 2020: 19.52%; Q1 2020: (24.44)%
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Average
Annual Total Returns (For
the periods ended December 31, 2022) |
1
year |
5
years |
Since
Inception |
Class I (incepted March 31,
2014) (before taxes) |
(20.91)% |
2.47% |
2.74% |
Class
I (after
taxes on distributions) |
(21.13)% |
2.16% |
2.44% |
Class
I (after
taxes on distributions and Sales of Fund
shares) |
(12.21)% |
1.91% |
2.12% |
MSCI Europe, Australia and Far East (EAFE) Index
(net) (reflects no deductions for
fees, expenses or taxes)(based on March 31,
2014, inception date of the Predecessor
Fund) |
(14.45)% |
1.54% |
2.84% |
MSCI
All Country World (ACWI) ex USA Index (net) (reflects
no deductions for fees, expenses or taxes) (based on March 31,
2014, inception date of the Predecessor
Fund) |
(16.00)% |
0.88% |
2.61% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes,
and (b) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In
some instances, the return after taxes on distributions and sale of Fund shares
may be greater than the return before taxes because the investor is assumed to
be able to use the
capital loss of the sale of Fund shares
to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Capital Management, LLC. The persons jointly and primarily
responsible for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
Howard
Gleicher, CFA, Chief Executive Officer and Chief Investment
Officer |
Since
2023 |
Geoffrey
S. Stewart, CFA, Principal and Portfolio Manager |
Since
2023 |
Sean
M. Thorpe, Principal and Portfolio Manager |
Since
2023 |
Purchase
and Sale of Fund Shares and Tax Information
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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Aristotle/Saul
Global Equity Fund |
Investment
Goal
This Fund seeks to maximize long-term capital appreciation and
income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to the Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
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Share
Class |
|
A |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
I |
I-2 |
Management
Fee1 |
0.78% |
0.78% |
0.78% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
None |
None |
Total
Annual Fund Operating Expenses |
1.03% |
0.78% |
0.78% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.03% |
0.78% |
0.78% |
1The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The Advisory
Fee is borne by the Fund at the same annual rate for all share classes of 0.70%
of the average net assets. The Supervision and Administration Fee is borne
separately by each class at an annual rate of 0.08% of the average net assets of
the class.
2Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2026, to waive its management fees to the extent that the Fund’s
Total Annual Fund Operating Expenses exceed 0.78% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future
periods.
Example
The Example is intended to help you compare
the cost of investing in the Fund with the cost of investing in other Funds of
the Trust or other mutual funds. The Example assumes that you invest $10,000 for
the time periods indicated and redeem all of your shares at the end of those
periods, that your investment has a 5% return each year, and that the Fund’s
annual operating expenses remain as stated in the previous table for the time
periods shown. Although your actual
costs may be higher or lower, the Example shows what your costs
would be based on these assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$526 |
$80 |
$80 |
3
years |
$739 |
$249 |
$249 |
5
years |
$969 |
$433 |
$433 |
10
years |
$1,631 |
$966 |
$966 |
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|
Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$526 |
$80 |
$80 |
3
years |
$739 |
$249 |
$249 |
5
years |
$969 |
$433 |
$433 |
10
years |
$1,631 |
$966 |
$966 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the most recent fiscal year,
the portfolio turnover rate of Aristotle/Saul Global Equity Fund, a series of
Investment Managers Series Trust (the “Predecessor Fund”) was 22% of the average value of its
portfolio. A higher portfolio turnover rate reflects a greater number of
securities being bought or sold, which may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in Annual
Fund Operating Expenses
or in the Example, affect the Fund’s performance. For more information regarding the
Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in equity
securities. The Fund primarily invests its assets in equity securities that are
listed on an exchange or that are otherwise publicly traded in the United States
or in a foreign country. The Fund may also invest in exchange-traded funds
(“ETFs”). ETFs are investment companies that invest in portfolios of securities
designed to track particular market segments or indices, the shares of which are
bought and sold on securities exchanges.
Under
normal market conditions, the Fund invests in at least three different
countries, including emerging market countries, with at least 40% of its net
assets invested in securities of issuers located outside the United States. The
Fund’s investments in foreign securities may include investments through
American, European and Global Depository Receipts (“ADRs,” “EDRs,” and “GDRs,”
respectively). Depository receipts represent interests in foreign securities
held on deposit by banks.
The
strategy seeks to maximize total return, which includes both long-term capital
appreciation and income via equity dividends. In
selecting
investments for the Fund, the Fund’s sub-adviser, employs a fundamental,
bottom-up approach. The sub-adviser focuses first on the quality of a company’s
business and then considers whether the company’s securities are available at an
attractive price relative to what the sub-adviser believes to be their fair
value. The sub-adviser seeks to identify high-quality businesses by focusing on
companies with all or most of the following attributes: attractive business
fundamentals; experienced, motivated company management; pricing power;
sustainable competitive advantages; financial strength; history of or prospects
for paying dividends; and/or high or consistently improving market position,
return on invested capital and operating margins. The Fund may invest in
companies of any market capitalizations, but typically invests in companies with
a market capitalization above $2 billion at initial investment.
The
Fund is benchmarked to the MSCI All Country World (“ACWI”) Index (net) and the
MSCI World Index (net). However, the sub-adviser is not constrained by the
composition of either index in selecting investments for the
Fund.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Foreign
Investment Risk:
The prices of foreign securities may be more volatile than the prices of
securities of U.S. issuers because of economic and social conditions, political
developments, and changes in the regulatory environments of foreign markets.
Foreign securities include ADRs and GDRs. Unsponsored ADRs and GDRs are
organized independently and without the cooperation of the foreign issuer of the
underlying securities and involve additional risks because U.S. reporting
requirements do not apply. In addition, the issuing bank may deduct shareholder
distribution, custody, foreign currency exchange, and other fees from the
payment of dividends.
•Currency
Risk:
A decline in the value of a foreign currency relative to the U.S. dollar reduces
the value in U.S. dollars of the Fund’s investments denominated in or with
exposure to that foreign currency.
•Geographic
Risk Related to Europe: Europe
includes both developed and emerging markets. Most Western European countries
are members of the European Union (the “EU”), which imposes restrictions on
inflation rates, deficits, and debt levels. Both developed and emerging market
countries in Europe will be significantly affected by the fiscal and monetary
controls of the European Monetary Union. Changes in regulations on trade,
decreasing imports or exports, changes in the exchange rate of the euro,
recessions among European countries and acts of war in the region may have a
significant adverse effect on the economies of other European countries,
including those of Eastern Europe. In particular, the extent and duration of
Russia’s large-scale invasion of Ukraine that began on February 24, 2022, the
resulting sanctions on Russia, and the subsequent impact on global markets and
trade remain unknown but could have a significant adverse impact on the European
economy as well as the price and availability of certain commodities, including
oil and natural gas. The markets in Eastern Europe remain relatively undeveloped
and can be particularly sensitive to political and economic
developments.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries may be
riskier than investments in or exposure to investments in U.S. and other
developed markets for many reasons, including smaller market capitalizations,
greater price volatility, less liquidity, lower credit quality, a higher degree
of political and economic instability, the imposition of economic sanctions,
less governmental regulation and supervision of the financial industry and
markets, and less stringent financial reporting and accounting standards and
controls.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization companies.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares are trading at a discount, the Fund will receive a
price that is less than the ETF’s net asset value per share. In addition, an ETF
may not replicate exactly the performance of the benchmark index it seeks to
track. An investment in an ETF is an investment in another investment company
and therefore, the Fund’s shareholders will indirectly bear a proportionate
share of any fees and expenses of the ETFs in which the Fund invests. The Fund
will pay brokerage commissions in connection with the purchase and sale of
shares of ETFs.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Sector
Focus Risk:
The Fund may invest a larger portion of its assets in one or more sectors than
many other mutual funds, and thus will be more susceptible to negative events
affecting those sectors.
•Liquidity
Risk:
Certain holdings may be difficult to purchase, sell and value, particularly
during adverse market conditions, because there is a limited market for the
investment or there are restrictions on resale. The Fund may invest in liquid
investments that become illiquid due to financial distress, or geopolitical
events such as sanctions, trading or wars. The Fund may not be able to sell a
holding quickly at the price it has valued the holding, may be unable to take
advantage of market opportunities or may be forced to sell other more desirable,
more liquid securities or sell less liquid or illiquid securities at a loss if
needed to raise cash to conduct operations, including to meet redemption
requests. This risk may be particularly pronounced with respect to
small-capitalization companies.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing the sale of
securities in a short timeframe and potential increases in expenses to the Fund
and its remaining shareholders, both of which could negatively impact
performance.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on October 23, 2023 (the “Reorganization”). The Predecessor Fund
was managed using investment policies, objectives, guidelines, and restrictions
that were substantially similar to those of the Fund. Prior to the
Reorganization, the Fund had not yet commenced operations. The bar chart shows
the performance of the Predecessor Fund’s Class I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23: 6.39%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 19.67%; Q1 2020: (23.30)%
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|
|
Average
Annual Total Returns (For
the periods ended December 31, 2022) |
1
year |
5
years |
10
years |
Class
I (incepted
August 31,
2016) (before taxes) |
(17.49)% |
5.84% |
6.48% |
Class
I (after
taxes on distributions) |
(18.44)% |
4.34% |
5.55% |
Class
I (after
taxes on distributions and Sales of Fund
shares) |
(9.64)% |
4.43% |
5.10% |
MSCI
All Country World (ACWI) Index (net) (reflects
no deductions for fees, expenses or taxes) |
(18.36)% |
5.23% |
7.98% |
MSCI
World Index (net) (reflects no deductions for
fees, expenses or taxes) |
(18.14)% |
6.14% |
8.85% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes,
and (b) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Capital Management, LLC. The persons jointly and primarily
responsible for day-to-day management of the Fund are:
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|
|
|
Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
Howard
Gleicher, CFA, Chief Executive Officer and Chief Investment
Officer |
Since
2023 |
Gregory
D. Padilla, CFA, Principal and Portfolio Manager |
Since
2023 |
Purchase
and Sale of Fund Shares and Tax Information
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
|
|
|
Aristotle
Core Equity Fund |
Investment
Goal
This Fund seeks long-term growth of
capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
If these fees were included, the fees and expenses shown would be higher.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A shares of eligible Funds of the
Trust. More information about these and other discounts is
available from your financial professional and in the Overview
of the Share Classes section
on page 114 in the Fund’s prospectus
(the “Prospectus”) and in the appendix to the Prospectus titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
Shareholder
Fees (fees
paid directly from your investment)
|
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|
|
|
|
|
|
|
|
|
|
|
Share
Class |
|
A |
I |
I-2 |
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
4.25% |
None |
None |
Maximum
Deferred Sales Charge (load) (as a percentage of the purchase price or
redemption price, whichever is less) |
None |
None |
None |
Annual
Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment)
|
|
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|
|
|
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|
Share
Class |
|
A |
I |
I-2 |
Management
Fee1 |
0.65% |
0.65% |
0.65% |
Distribution
(12b-1) and/or Service Fee |
0.25% |
None |
None |
Total
Annual Fund Operating Expenses |
0.90% |
0.65% |
0.65% |
Less
Fee Waiver2 |
0.00% |
0.00% |
0.00% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.90% |
0.65% |
0.65% |
1The
Management Fee consists of an Advisory Fee and a Supervision
and Administration Fee paid to Aristotle Investment Services, LLC. The Advisory
Fee is borne by the Fund at the same annual rate for all share classes of 0.50%
of the average net assets. The Supervision and Administration Fee is borne
separately by each class at an annual rate of 0.15% of the average net assets of
the class.
2Aristotle
Investment Services, LLC has contractually agreed, through July 31,
2026, to waive its management fees to the extent that the Fund’s
Total Annual Fund Operating Expenses exceed 0.65% for Class I-2. Aristotle
Investment Services, LLC may not recoup these waivers in future
periods.
Example
The Example is intended to help you compare
the cost of investing in the Fund with the cost of investing in other Funds of
the Trust or other mutual funds. The Example assumes that you invest $10,000 for
the time periods indicated and redeem all of your shares at the end of those
periods, that your investment has a 5% return each year, and that the Fund’s
annual operating expenses remain as stated in the previous table for the time
periods shown. Although your actual
costs may be higher or lower, the Example shows what your costs
would be based on these assumptions.
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Your
expenses (in dollars) if you SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$513 |
$66 |
$66 |
3
years |
$700 |
$208 |
$208 |
5
years |
$902 |
$362 |
$362 |
10
years |
$1,486 |
$810 |
$810 |
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Your expenses (in
dollars) if you DON’T SELL your shares |
at
the end of each period. |
Share
Class |
|
A |
I |
I-2 |
1
year |
$513 |
$66 |
$66 |
3
years |
$700 |
$208 |
$208 |
5
years |
$902 |
$362 |
$362 |
10
years |
$1,486 |
$810 |
$810 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its holdings). During the most recent fiscal year,
the portfolio turnover rate of Aristotle Core Equity Fund, a series of
Investment Managers Series Trust (the “Predecessor Fund”) was 18% of the average value of its
portfolio. A higher portfolio turnover rate reflects a greater number of
securities being bought or sold, which may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in Annual
Fund Operating Expenses
or in the Example, affect the Fund’s performance. For more information regarding the
Predecessor Fund, please see the discussion under Performance
Information.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in equity
securities. The Fund’s investments in equity securities may include common
stocks, preferred stocks, convertible preferred stocks, depository receipts,
shares of publicly traded real estate investment trusts (“REITs”), warrants and
rights. The Fund’s investments in depository receipts may include American,
European, and Global Depository Receipts (“ADRs,” “EDRs,” and “GDRs,”
respectively). ADRs are receipts that represent interests in foreign securities
held on deposit by U.S. banks. EDRs and GDRs have the same qualities as ADRs,
except that they may be traded in several international trading markets.
Although the Fund may invest in companies of any market capitalization and from
any country, the sub-adviser's investment process typically focuses on the
universe of U.S. companies with market capitalizations in excess of $2 billion
at initial investment.
In
pursuing the Fund’s investment goal, the sub-adviser
employs
a fundamental, bottom-up research driven approach to identify companies for
investment by the Fund. The sub-adviser
seeks
to identify companies that it believes are positioned to benefit from one
or
more of the following: (i) shifts in industry spending, government spending and
consumer trends; (ii) gains in market share from innovative products and strong
intellectual property; and (iii) cyclical trends in the industry in which they
operate and capable management that can take advantage of those trends. The
investment process and allocation decisions result in a portfolio that blends
both value and growth characteristics. At times, the Fund’s assets may be
invested in securities of relatively few industries or sectors. Currently, the
Fund is significantly invested in the Information Technology
Sector.
The
Fund is benchmarked to the S&P 500®
Index. However, the sub-adviser is not constrained by the composition of the
S&P 500®
Index in selecting investments for the Fund.
Principal
Risks
As with any mutual fund, the
value of the Fund’s investments, and therefore the value of your shares, may go
up or down and you could lose money. There is no guarantee that
the Fund will achieve its investment goal. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Italicized
terms refer to separate Principal Risks that are each defined in the
Principal
Risks
section below.
While
the Fund may be subject to various risk exposures at any given time depending on
market conditions and other factors impacting holdings and investment
strategies, the Fund under normal circumstances is subject to the following
principal risks:
•Equity
Securities Risk:
Equity securities tend to go up and down in value, sometimes rapidly and
unpredictably. An
equity security’s market value may decline for a number of reasons that relate
to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer’s products or services, or as a result of factors
that affect the issuer’s industry or market more broadly, such as labor
shortages, increased production costs, or competitive conditions within an
industry.
•Large-Capitalization
Companies Risk:
Although large-capitalization companies tend to have more stable prices than
smaller, less established companies, they are still subject to equity
securities risk.
In addition, large-capitalization equity security prices may not rise as much as
prices of equity securities of small-capitalization companies.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies.
•Sector
Focus Risk:
The Fund may invest a larger portion of its assets in one or more sectors than
many other mutual funds, and thus will be more susceptible to negative events
affecting those sectors.
•ETF
Risk:
Shares of ETFs typically trade on securities exchanges and may at times trade at
a premium or discount to their net asset values. If the Fund has to sell shares
of an ETF when the shares
are
trading at a discount, the Fund will receive a price that is less than the ETF’s
net asset value per share. In addition, an ETF may not replicate exactly the
performance of the benchmark index it seeks to track. An investment in an ETF is
an investment in another investment company and therefore, the Fund’s
shareholders will indirectly bear a proportionate share of any fees and expenses
of the ETFs in which the Fund invests. The Fund will pay brokerage commissions
in connection with the purchase and sale of shares of ETFs.
•Foreign
Investment Risk:
The prices of foreign securities may be more volatile than the prices of
securities of U.S. issuers because of economic and social conditions, political
developments, and changes in the regulatory environments of foreign markets.
Foreign securities include ADRs, EDRs and GDRs. Unsponsored ADRs, EDRs and GDRs
are organized independently and without the cooperation of the foreign issuer of
the underlying securities and involve additional risks because U.S. reporting
requirements do not apply. In addition, the issuing bank may deduct shareholder
distribution, custody, foreign currency exchange, and other fees from the
payment of dividends.
•Warrants
and Rights Risk:
Warrants and rights may lack a liquid secondary market for resale. The prices of
warrants and rights may fluctuate as a result of speculation or other factors.
Warrants and rights can provide a greater potential for profit or loss than an
equivalent investment in the underlying security. Prices of warrants and rights
do not necessarily move in tandem with the prices of their underlying securities
and therefore are highly volatile and speculative investments. If a warrant or
right expires without being exercised, the Fund will lose any amount paid for
the warrant or right.
•Preferred
Stock Risk:
Preferred stock represents an equity interest in a company that generally
entitles the holder to receive, in preference to the holders of other stocks
such as common stock, dividends and a fixed share of the proceeds resulting from
a liquidation of the company. The market value of preferred stock is subject to
company-specific and market risks applicable generally to equity securities and
is also sensitive to changes in the company’s creditworthiness, the ability of
the company to make payments on the preferred stock, and changes in interest
rates, typically declining in value if interest rates rise. Convertible
preferred stock allows the holder to convert the preferred shares into a fixed
number of common shares, usually after a predetermined date. Like preferred
stock, convertible preferred stock generally pays a dividend at a specified rate
and has preference over common stock in the payment of dividends but ranks
behind bonds, including convertible bonds, in priority upon
liquidation.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact the Fund’s performance.
•Underlying
Fund Risk:
Because the Fund is available for investment by one or more “fund of funds” of
the Trust and thus may have a significant percentage of its outstanding shares
held by such fund of funds, a change in asset allocation by the fund of funds
could result in large redemptions out of the Fund, causing
the
sale of securities in a short timeframe and potential increases in expenses to
the Fund and its remaining shareholders, both of which could negatively impact
performance.
•Information
Technology Sector Risk:
Information Technology companies face several risks, including operating in
rapidly changing fields, abrupt or erratic market movements, limited product
lines, markets or financial resources, management that is dependent on a limited
number of people, short product cycles, aggressive pricing of products and
services, new market entrants, government regulation and patent and intellectual
property rights and rapid obsolescence of products and services due to
technological innovations or changing consumer preferences. In addition, many
U.S. technology companies have diverse operations, with products or services in
foreign markets, exposing them to foreign
markets risk.
Performance
The bar chart
and Average Annual Total Returns table below provide some indication of the risk
of investing in the Fund by showing changes in the performance of the Fund from
year to year and showing how the Fund’s returns compare to a broad-based market
index. The Fund performance shown below is the performance of
the Predecessor Fund as a result of a reorganization of the Predecessor Fund
into the Fund on October 23, 2023 (the “Reorganization”). The Predecessor Fund
was managed by the same portfolio management team using investment policies,
objectives, guidelines, and restrictions that were substantially similar to
those of the Fund. The bar chart shows the performance of the Predecessor Fund’s
Class I shares.
Performance
reflects fee waivers or expense limitations, if any, that were in effect during
the periods presented. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information may be obtained at
our website: aristotlefunds.com,
or by calling customer service at 844-ARISTTL (844-274-7885).
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Calendar
Year Total Returns (%)1 |
1Class I return
for the period 1/1/23 through 9/30/23: 9.30%
Best and worst quarterly performance
reflected within the bar chart: Q2 2020: 22.13%; Q2 2022: (17.49)%
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Average
Annual Total Returns (For
the periods ended December 31, 2022) |
1
year |
5
years |
Since
Inception |
Class
I (incepted
March 31,
2017) (before taxes) |
(22.15)% |
9.19% |
10.54% |
Class
I (after
taxes on distributions) |
(22.30)% |
8.94% |
10.30% |
Class
I (after
taxes on distributions and Sales of Fund
shares) |
(13.00)% |
7.28% |
8.43% |
S&P
500®
Index (reflects no deductions for
fees, expenses or taxes)(based on March 31,
2017 the inception date of the Predecessor
Fund) |
(18.11)% |
9.42% |
10.78% |
The after-tax returns (a) are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes,
and (b) are not relevant to
investors who hold their shares through tax-deferred arrangements, such as
401(k) plans or individual retirement accounts. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
In some instances, the
return after taxes on distributions and sale of Fund shares may be greater than
the return before taxes because the investor is assumed to be able to use the
capital loss of the sale of Fund shares to offset other taxable capital
gains.
Management
Investment
Adviser
– Aristotle Investment Services, LLC
Sub-Adviser
– Aristotle Atlantic Partners, LLC. The persons jointly and primarily
responsible for day-to-day management of the Fund are:
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Portfolio
Manager and Primary Title with Sub-Adviser |
Experience with
Fund |
Owen
Fitzpatrick, CFA, Principal, Managing Director and Lead Portfolio
Manager |
Since
2023 |
Thomas
M. Hynes, Jr., CFA, Principal, Managing Director and Portfolio
Manager |
Since
2023 |
Brendan
O’Neill, CFA, Principal, Director and Portfolio Manager |
Since
2023 |
Purchase
and Sale of Fund Shares and Tax Information
– please turn to the Additional
Summary Information
section on page 84 in this
Prospectus.
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ADDITIONAL
SUMMARY INFORMATION |
Purchase
and Sale of Fund Shares
Once
you have established an account, you may generally purchase or redeem (sell)
shares of a Fund (each a “Fund,” together the “Funds”) of the Aristotle Funds
Series Trust (“Aristotle Funds” or the “Trust”) on any business day by mail
(Aristotle Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee,
WI 53201-0701), overnight mail (Aristotle Funds, c/o U.S. Bank Global Fund
Services, 615 E. Michigan Street, 3rd
Floor, Milwaukee, WI 53202), by telephone by calling customer services at
844-ARISTTL (844-274-7885) or by wire or electronic funds transfer. For accounts
established through a broker-dealer or other financial intermediary, please
contact your financial professional to purchase or redeem shares.
For
Class A and Class C shares, the minimum initial investment is $1,000, and the
minimum subsequent investment is $50. For Class I shares, the minimum initial
investment is $500,000 for Institutional Investors, with no minimum for
subsequent investments. Class I shares are only available to eligible investors.
Class R6 shares generally have no minimum for initial or subsequent investments,
except for certain institutional investors who purchase Class R6 shares directly
with the Trust’s transfer agent for which the minimum initial investment is
$1,000,000 with no minimum for subsequent investments. Class R6 shares are only
available to eligible investors. There is no minimum initial or subsequent
investment for Class I-2 shares, because they are generally only available to
investors in fee-based advisory programs. Not all classes are available for
direct investment for all Funds. The
Trust reserves the right to waive or change minimum investment amounts,
including for certain types of retirement plans. The Trust and Foreside
Financial Services, LLC, the distributor, and principal underwriter for the
Trust (the “Distributor”), reserve the right to reject any request to buy
shares.
Purchase
and sale orders for accounts held directly with the Trust are executed at the
next net asset value (“NAV”), plus or minus any applicable sales charges,
determined after the transfer agent of the Trust receives an order in proper
form at its processing location in Milwaukee, WI. Purchase and sale orders for
accounts held with a financial intermediary are executed at the next NAV, plus
or minus any applicable sales charges, determined after the order is received by
the financial intermediary in proper form.
Tax
Information
Each
Fund’s distributions are taxable and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement such as a
401(k) plan or an individual retirement account, distributions from which may be
taxable upon withdrawal.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of a Fund through a broker-dealer or other financial
intermediary (such as through a “fund supermarket” where a variety of mutual
funds from different fund families are offered through your broker-dealer or
other financial intermediary), the Trust and its related companies may pay the
broker-dealer or other financial intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask your financial
professional or visit your financial intermediary’s website for more
information.
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ADDITIONAL
INFORMATION ABOUT PRINCIPAL INVESTMENT STRATEGIES AND PRINCIPAL
RISKS |
You
should consult with your financial professional to determine which Fund may be
suited to your financial needs, investment time horizon and risk comfort level.
You should periodically review these factors to determine if a change in your
investment strategy is needed. The investment adviser to the Trust is Aristotle
Investment Services, LLC (“AIS”). Aristotle Portfolio Optimization Conservative
Fund, Aristotle Portfolio Optimization Moderate Conservative Fund, Aristotle
Portfolio Optimization Moderate Fund, Aristotle Portfolio Optimization Growth
Fund and Aristotle Portfolio Optimization Aggressive Growth Fund (together, the
“Portfolio Optimization Funds”) are funds of funds sub-advised by Pacific Life
Fund Advisors LLC (“PLFA”) that seek to achieve their investment goals by
investing in Class I shares of certain other Funds within the Trust (the
“Underlying Aristotle Funds”) and unaffiliated exchange-traded funds (“ETFs”).
AIS has retained affiliated portfolio management firms to manage the investment
program for the Underlying Aristotle Funds. Aristotle Ultra Short Income Fund,
Aristotle Short Duration Income Fund, Aristotle Core Income Fund, Aristotle ESG
Core Bond Fund, Aristotle Strategic Income Fund, Aristotle Floating Rate Income
Fund and Aristotle High Yield Bond Fund (the “Fixed Income Funds”) are
sub-advised by Aristotle Pacific Capital, LLC (“Aristotle Pacific”). Aristotle
Small/Mid Cap Equity Fund and Aristotle Small Cap Equity Fund (together with
Aristotle Growth Equity Fund, Aristotle Core Equity Fund, Aristotle Value Equity
Fund, Aristotle International Equity Fund, Aristotle/Saul Global Equity Fund,
the “Equity Funds”) are sub-advised by Aristotle Capital Boston, LLC (“Aristotle
Boston”). Aristotle Growth Equity Fund and Aristotle Core Equity Fund are
sub-advised by Aristotle Atlantic Partners, LLC (“Aristotle Atlantic”).
Aristotle Value Equity Fund, Aristotle International Equity Fund and
Aristotle/Saul Global Equity Fund are sub-advised by Aristotle Capital
Management, LLC (“Aristotle Capital”). More information on AIS, PLFA, Aristotle
Pacific, Aristotle Boston, Aristotle Atlantic and Aristotle Capital can be found
in the About Management section of this Prospectus.
Please
read this Prospectus carefully before investing or sending money and keep it for
future reference. You should read the complete description of the Funds in this
Prospectus and be aware that any time you invest, there is a risk of loss of
money.
The
following provides general investment information that applies to all Funds
offered in this Prospectus, unless otherwise noted. For a description of the
Funds’ policies and procedures with respect to the disclosure of the Funds’
holdings as well as each Fund’s non-principal investment strategies and
descriptions of securities, see the Trust’s Statement of Additional Information
(“SAI”).
General
Investment Information
Each
Fund is subject to regulation under the Investment Company Act of 1940, as
amended (“1940 Act”) and, with the exception of the Aristotle Growth Equity
Fund, is classified as diversified under the 1940 Act. The Aristotle Growth
Equity Fund is classified as non-diversified under the 1940 Act. Although some
of the Funds may have names or investment goals that resemble other mutual funds
managed by the same investment adviser or sub-adviser (each, a “Manager”), they
may not have the same underlying holdings or performance as those other mutual
funds. Each Fund intends to qualify as a regulated investment company under the
Internal Revenue Code of 1986 (“IRC”). The Funds’ stated investment goals are
not fundamental and can be changed without shareholder approval. Unless a
particular investment policy
is
identified as fundamental in the SAI, the Trust’s board of trustees (“Board”)
may change investment policies of a Fund without shareholder approval.
Generally, there are changes to a Fund’s investment policies when an existing
Manager is replaced, to reflect the new Manager’s investment style and
practices.
A
Fund may have investment policies on the amount that it can invest in certain
kinds of securities, certain countries or credit ratings or capitalizations of
securities. These investment policies apply at the time the investment is made
so a Fund generally may continue to hold positions which met the investment
policies at the time of investment but subsequently do not meet such policies.
Additionally, a Fund may continue to invest in investments that move outside
such policies for reasons such as dividend reinvestments or corporate actions. A
company’s “capitalization” is a measure of its size. Capitalization is
calculated by multiplying the current share price by the number of shares
outstanding. Since companies’ market capitalizations fluctuate due to price
volatility, capitalization ranges of the indices used to determine eligibility
may be affected. Therefore, the capitalization ranges may be modified from time
to time. Capitalization is determined at the time of investment. Accordingly, a
Fund which invests principally in the securities of small-capitalization
companies may continue to hold those securities even if they become
mid-capitalization companies. Similarly, a Fund which invests principally in
securities of mid-capitalization companies may continue to hold those securities
even if they become large-capitalization companies. Conversely, a Fund which
invests principally in the securities of large-capitalization companies may
continue to hold those securities even if they become mid-capitalization
companies. Many of the benchmark indices that are used to give you an idea of
the capitalization range for the size of companies in which a Fund may invest
are periodically reconstituted by the index provider. When this is done, it is
possible that a Fund may hold a significant number of holdings with
capitalizations that are no longer within the capitalization range of the
reconstituted index.
Some
investment policies are in place due to regulatory requirements relating to the
name of the particular Fund (a “Name Test Policy”) and impose an 80% investment
minimum. The Name Test Policy is applied to a Fund’s net assets, plus the amount
of any borrowings for investment purposes. Other than for the Name Test Policy,
if net assets are not specified, then percentage limits refer to a Fund’s total
assets. Please see the SAI for additional information on the Name Test
Policy.
Duration
is a mathematical measure of a Fund’s or security’s price sensitivity to changes
in interest rates. Each year of duration represents an expected 1% change in the
NAV of a Fund or security for every 1% change in interest rates. So, the longer
a Fund’s or security’s duration, the more sensitive it will be to changes in
interest rates. As such, a Fund with a long average duration (generally above 10
years) or intermediate average duration (generally between 3 and 10 years) will
be more sensitive to changes in interest rates than a Fund with a short average
duration (generally less than 3 years). For example, if a Fund has a weighted
average duration of 5 years, its NAV would be expected to fall about 5% when
interest rates rise by 1%. Duration is not necessarily equal to maturity. The
maturity of a security, another commonly used measure of price sensitivity,
measures only the time until final payment is due, whereas duration factors in
the pattern of all payments of interest and principal over time, including how
these payments are affected by prepayments and by changes in interest rates, as
well as the time until an interest rate is reset (in the case of floating rate
securities).
Weighted
average maturity is the average of the current maturities of all bonds held by a
Fund, calculated to weight more heavily those bonds held in higher dollar values
by the Fund. Weighted average maturity is important to investors as an
indication of a fund’s sensitivity to changes in interest rates. Usually, the
longer the weighted average maturity, the more fluctuation in share price you
can expect. Mortgage-related securities are subject to prepayment of principal
which can shorten the weighted average maturity of a fund. Therefore, in the
case of a Fund which holds mortgage-related securities, asset-backed securities
and similar types of securities, the weighted average maturity of a Fund is
equivalent to its weighted average life. Weighted average life is the weighted
average maturity of the cash flows in the securities held by a Fund given
certain prepayment assumptions.
Some
of the Funds in this Prospectus are available for investment by the Portfolio
Optimization Funds, which are funds that invest in other funds to seek their
investment goals (a “fund of funds”). Changes to the target allocations or
rebalancing of a Portfolio Optimization Fund can result in the transfer of
assets from one Fund to another. To implement any allocation changes for a fund
of funds (including periodic rebalancing, changes in Managers or their
investment personnel, and reorganizations of Funds), the applicable Funds may
temporarily use or increase their use of derivatives, such as futures contracts
to obtain exposure to desired investments, which (if principally used) can
temporarily subject these Funds to derivatives
risk
and leverage
risk
generally, along with risks specific to those derivatives. These changes, which
occur without shareholder approval, may result in the sale of securities or
other holdings, which can increase portfolio turnover and trading costs,
potentially reducing a Fund’s performance.
The
portfolio turnover rate excludes the purchase and sale of certain investments
such as most derivative instruments, investments made on shorter-term basis or
instruments with a maturity of one year or less at the time of investment.
Accordingly, a Fund that uses such instruments may have a higher portfolio
turnover rate than as disclosed in its Fund summary. During the past fiscal
year, no Predecessor Funds engaged in active and frequent trading (over 100%
turnover of portfolio securities). High portfolio turnover rates may cause a
Fund to incur higher levels of brokerage fees and commissions, which may reduce
performance, and may cause higher levels of current tax liability to
shareholders in the Fund.
In
connection with the commencement of operations for a new Fund or during a change
in Manager (including the addition or removal of a sub-adviser) for an existing
Fund, a Fund may temporarily deviate from investment guidelines (including the
use of derivatives, such as futures, as well as holdings in cash and cash
equivalents) in order to reasonably and economically obtain market exposure and
manage cash flows. As a result of a change in Manager (including the
addition/removal of a sub-adviser), certain investment strategies of a Fund may
change as described in a supplement that will be provided to impacted
shareholders in advance of this transition. In order to facilitate these
changes, a portion of the Fund’s holdings may be sold, and new investments
purchased, in accordance with recommendations received from the pending new
Manager. AIS, the investment adviser to the Funds, may begin this transitioning
prior to the transition effective date if AIS determines that doing so is in the
best interest of Fund shareholders.
Each
Fund is impacted by the liquidity of its investments. Liquidity risk for a Fund
is defined as the risk that such Fund would not be able to meet requests to
redeem shares without the significant dilution of the interests of the remaining
investors in that Fund. To address this risk, unless otherwise noted, all Funds
may hold some cash or cash equivalents for redemption purposes.
Each
Fund may hold illiquid investments from time to time, depending upon market
conditions and events. An illiquid investment is defined as an investment not
reasonably expected to be sold or disposed of under current market conditions in
seven calendar days or less without significantly changing the value of the
investment. An investment, even one that is generally very liquid, may become
less liquid or illiquid. A Fund may not acquire illiquid securities if, as a
result of such purchases, illiquid holdings would comprise more than 15% of the
value of
the
Fund’s net assets. If the value of a Fund’s illiquid investments exceeds 15%,
that Fund may not make any additional purchases of illiquid investments. If,
through the appreciation of illiquid securities or the depreciation of liquid
securities or other factors (such as the determination of previously liquid
securities as illiquid), a Fund’s net assets are in excess of 15% of illiquid
investments, AIS will take appropriate steps to address the liquidity of that
Fund in accordance with the Trust’s Liquidity Risk Management
Program.
The
Manager of a Fund may (but is not required to) take temporary defensive
positions that are inconsistent with its principal investment strategies in
attempting to respond to adverse market, economic, industry, political or other
conditions to try to protect the Fund from potential loss, for redemptions, at
start-up of a Fund, in connection with the liquidation of a Fund, or where the
sub-adviser or co-sub-adviser of a Fund is no longer managing the Fund. These
shifts may alter the risk/return characteristics of a Fund and cause a Fund to
miss investment opportunities and not to achieve its investment goal. Temporary
defensive positions could detract from investment performance in a period of
rising market prices but may reduce the severity of losses in a period of
falling market prices and provide liquidity for making additional investments or
for meeting redemptions. Furthermore, such investment decisions may not
anticipate market trends successfully. For further information on the types of
investments that a Fund may make while assuming a temporary defensive position,
see the Trust’s SAI, which can be obtained as described in the Where
to Go for More Information
section of this Prospectus.
All
risks described in this Additional
Information About Principal Investment Strategies and Principal
Risks
section are listed alphabetically for reader ease and not by importance of the
risk to the Funds as they are in the Fund
Summaries
sections. The following provides additional information about the principal
investment strategies and principal risks described in the Fund
Summaries
sections at the beginning of this Prospectus.
Portfolio
Optimization Funds
Investment
Goals:
Aristotle
Portfolio Optimization Conservative Fund seeks
current income and preservation of capital.
Aristotle
Portfolio Optimization Moderate Conservative Fund seeks
current income and moderate growth of capital.
Aristotle
Portfolio Optimization Moderate Fund seeks
long-term growth of capital and low to moderate income.
Aristotle
Portfolio Optimization Growth Fund seeks
moderately high, long-term capital appreciation with low, current
income.
Aristotle
Portfolio Optimization Aggressive Growth Fund seeks
high, long-term capital appreciation.
Principal
Investment Strategies
The
Portfolio Optimization Funds are each an asset allocation “fund of funds” that
seeks to achieve its investment goal by investing in the Class I shares of the
Underlying Aristotle Funds and in unaffiliated ETFs. The allocation of the
Fund’s assets between Underlying Funds sub-advised by an affiliate of the
investment adviser and unaffiliated ETFs will vary over time, although the
sub-adviser currently expects to invest, under normal circumstances, between 40%
and 90% of each Fund’s assets in Underlying Funds sub-advised by an affiliate of
the investment adviser. Each Fund seeks to optimize returns given a certain
level of risk tolerance. Under normal market conditions, each Fund’s exposures
to the two broad asset classes of debt and equity are expected to be within the
ranges described in its Fund Summary.
The
theory behind asset allocation is that diversification among asset classes in
general can help reduce volatility over the long-term. This assumes that asset
classes may not move in tandem and that positive returns in one or more asset
classes may help offset negative returns in other asset classes.
PLFA,
as the investment sub-adviser, manages the investment program for each Fund
through the following multi-step process:
(1)
Asset Allocation/Portfolio Construction.
PLFA manages each Fund using an approximate 10-year investment horizon. An asset
class target allocation for the Fund is developed that seeks to meet the Fund’s
investment goal using both equity and debt asset classes. The equity asset class
includes narrower asset classes such as domestic small-capitalization,
mid-capitalization and large-capitalization, growth and value strategies, and
international and emerging market equities. The debt asset class also includes
narrower asset classes such as investment grade bonds, high yield/high risk
bonds, bank loans, international debt and emerging market debt.
PLFA
then determines the amount of the Fund’s assets to invest in each Underlying
Fund in order to obtain the broad asset class exposures and asset class category
exposures designated by the target allocations for the Fund.
PLFA
may adjust each Fund’s targeted broad asset class allocations of debt and equity
to any point within the stated ranges, and/or adjust the asset class category
allocations, and/or the allocations to the Underlying Funds, at any time as they
deem necessary based on PLFA’s views of market conditions, its outlook for
various asset class categories or other factors (“dynamic
positioning”).
For
example, PLFA may engage in dynamic positioning for the Fund by adjusting the
target allocations to reflect a shorter-term view of the markets or a particular
asset class category, to seek to capture upside opportunities or mitigate risk
from market events, or for cash management purposes. PLFA would then make the
appropriate adjustments to its Underlying Fund allocations to reflect the
updated broad asset class and asset class category allocations in the target
allocations. This dynamic positioning would be implemented consistent with the
Fund’s risk/return profile and investment goal.
(2)
Investment Risk Management.
PLFA monitors and analyzes the risks arising from the investments of the Fund,
evaluates the impact of any risk exposures on the Fund’s risk/return objectives
and considers adjustments to the Fund’s allocations as a result. PLFA utilizes
various risk management tools and resources to assess risks.
Investments
of the Underlying Funds that invest primarily in equity instruments include
growth and value stocks; large-, mid- and small-capitalization companies;
sector-specific stocks; and domestic and foreign stocks, including emerging
market stocks.
Investments
of the Underlying Funds that invest primarily in debt instruments include
investment grade debt securities, including U.S. Government securities,
corporate bonds, mortgage-related securities, and other asset-backed securities;
foreign debt securities, including emerging market debt; debt instruments of
varying duration; convertible securities; high yield/high risk bonds; floating
rate loans; and inflation-indexed bonds.
PLFA
may adjust an allocation for a Fund and reallocate the assets of the Fund to
more closely align with the new adjusted allocation. This reallocation may take
place over a period of time, which is usually not more than 90 days, during
which the Fund will deviate from the new adjusted allocation. In addition,
actual holdings of a Fund could vary from its desired allocations due to actual
cash flows and changes to its Underlying Fund asset values as a result of market
movements and portfolio management decisions. Actual allocations may also vary
from the desired allocations if a Fund takes a temporary defensive position. If
PLFA determines that adverse market, economic, political, or other conditions
warrant a temporary defensive position for a Fund, the Fund temporarily may
invest inconsistent with its principal investment strategies in, partially or
extensively, certain Underlying Funds or other investments that PLFA determines
appropriate for such conditions. If PLFA makes such a determination, these
investments could affect the Fund’s performance adversely and the Fund may not
achieve its investment goal.
With
respect to the Portfolio Optimization Conservative’s investment goal, “capital
preservation” refers to investing in these principal investments with the
intention of helping to stabilize and preserve the value of an investment in
that Fund.
When
investing purchase proceeds and meeting redemption requests for a Fund, PLFA may
use a methodology to identify assets to be purchased or sold by the Fund that
factors in the desired allocations and the current allocations of the Fund. This
methodology is intended to help maintain the Fund’s desired allocations,
although there is no assurance that the Fund will maintain its desired
allocations using this methodology.
Each
Fund may invest a significant portion of its assets in any single Underlying
Fund. Each Fund expects to be as fully invested as practical, although it may
maintain liquidity reserves to meet redemption requests.
Each
of the Portfolio Optimization Funds may invest in any or all of the asset
classes within each broad asset class or in any or all of the Underlying Funds
but is not required to invest in every asset class (other than the broad debt
and equity asset classes as described in each Fund
Summary)
or every Underlying Fund or in any particular percentage of an asset class or
Underlying Fund. PLFA has discretion in selecting the Underlying Funds for
investment and may adjust a Fund’s allocations to an Underlying Fund, including
adding or removing Underlying Funds, as it deems appropriate to meet the
respective Portfolio Optimization Fund’s investment goal at any time without
shareholder notice.
For
information on the Underlying Funds in which each of the Portfolio Optimization
Funds may invest, including their principal investment strategies and principal
risks, see the Trust’s SAI and Class P prospectus, which can be obtained as
described on the back cover of this Prospectus. For information on how to access
the actual month-end holdings for the Portfolio Optimization Funds, see
Portfolio
Holdings Information
on the back cover of this Prospectus.
Principal
Risks:
Each
of the Portfolio Optimization Funds is subject to Asset
Allocation Fund of Funds Risk, Conflicts of Interest Risk, and
ETF
Risk.
In addition, the following is a list of the principal risks for each Portfolio
Optimization Fund resulting from its respective allocations to the Underlying
Funds. The risks listed are associated with one or more Underlying Funds and are
described in the Additional
Information About Principal Risks
section of this Prospectus. Risks that are not listed below but are principal
risks of the Underlying Funds can be found as described in the prior paragraph.
These risks are still present for a Portfolio Optimization Fund to the extent of
a Portfolio Optimization Fund’s investment in the Underlying Fund(s) associated
with such risks and may rise to the level of a “principal risk” if the Fund’s
investment in such Underlying Fund increases, whether due to the action of the
Fund, market movements or other factors.
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Principal
Risk |
Portfolio
Optimization Conservative |
Portfolio
Optimization Moderate Conservative |
Portfolio
Optimization Moderate |
Portfolio
Optimization Growth |
Portfolio
Optimization Aggressive Growth |
Active
Management Risk |
• |
• |
• |
• |
• |
Convertible
Securities Risk |
• |
• |
• |
|
|
Credit
Risk |
• |
• |
• |
• |
• |
Currency
Risk |
• |
• |
• |
• |
• |
Debt
Securities Risk |
• |
• |
• |
• |
• |
Emerging
Markets Risk |
• |
• |
• |
• |
• |
Equity
Securities Risk |
• |
• |
• |
• |
• |
Financial
Sector Risk |
• |
• |
• |
• |
• |
Floating
Rate Loan Risk |
• |
• |
• |
|
|
Foreign
Markets Risk |
• |
• |
• |
• |
• |
Geographic
Focus Risk |
• |
• |
• |
• |
• |
Growth
Companies Risk |
• |
• |
• |
• |
• |
High
Yield/High Risk or “Junk” Securities Risk |
• |
• |
• |
• |
|
Index
Sampling Risk |
• |
• |
• |
• |
• |
Inflation-Indexed
Debt Securities Risk |
• |
• |
|
|
|
Interest
Rate Risk |
• |
• |
• |
• |
• |
Large-Capitalization
Companies Risk |
• |
• |
• |
• |
• |
Leverage
Risk |
• |
• |
• |
• |
• |
LIBOR
Transition Risk |
• |
• |
• |
• |
|
Liquidity
Risk |
• |
• |
• |
• |
• |
Mid-Capitalization
Companies Risk |
• |
• |
• |
• |
• |
Mortgage-Related
and Other Asset-Backed Securities Risk |
• |
• |
• |
• |
• |
Passive
Management Risk |
• |
• |
• |
• |
• |
Preferred
Stock Risk |
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• |
• |
• |
Small-Capitalization
Companies Risk |
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• |
• |
• |
Underlying
Fund Risk |
• |
• |
• |
• |
• |
U.S.
Government Securities Risk |
• |
• |
• |
• |
• |
Value
Companies Risk |
• |
• |
• |
• |
• |
Warrants
and Rights Risk |
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• |
• |
• |
Aristotle
Ultra Short Income Fund
Investment
Goal
This
Fund seeks current income consistent with capital preservation.
Principal
Investment Strategies
The
Fund primarily invests in investment grade, U.S. dollar-denominated short-term
fixed and floating rate debt securities, including corporate debt securities,
mortgage-related securities, asset-backed securities, U.S. government securities
and agency securities and money market instruments such as commercial paper,
certificates of deposit, time deposits, deposit notes and bank notes. Debt
securities in which the Fund invests may include those denominated in U.S.
dollars and issued by foreign entities.
The
weighted average duration of this Fund will vary based on the sub-adviser’s
market forecasts and will not normally exceed one year and may not exceed two
years. Duration is a mathematical measure of the average life of a bond that
includes its yield, coupon, final maturity and call features. Duration is often
used to measure a bond’s or fund’s sensitivity to interest rates (i.e.,
to measure the volatility of a bond’s price relative to a change in interest
rates). The longer a fund’s duration, the more sensitive it is to interest rate
risk. The shorter a fund’s duration, the less sensitive it is to interest rate
risk. The sub-adviser seeks to manage interest rate risk through its management
of the weighted average duration of the investments it holds in the
Fund.
The
dollar weighted average maturity of this Fund will not exceed two years.
Maturity of a debt instrument generally refers to the specific period of time
until final payment (principal and any applicable interest) is due. In
calculating average weighted maturities of mortgage related securities,
asset-backed securities or similar securities, the maturity will be based on
estimates of average life, which are based on prepayment assumptions.
Sector
allocations are determined based upon the sub-adviser’s assessment of
risk/return opportunities relative to the Fund’s investment goal and benchmark
weightings (the Bloomberg Short Treasury Total Return Index). The Bloomberg
Short Treasury Total Return Index is composed of all U.S. Treasuries that have a
remaining maturity between one and twelve months.
The
sub-adviser performs a credit analysis on each potential issuer and a relative
value analysis on each potential investment. When selecting investments
(including non-income producing investments), the sub-adviser may invest in
instruments that it believes have the potential for capital appreciation.
The
sub-adviser normally invests the Fund’s assets across different groups of
industries/sectors but may invest a significant percentage of the Fund’s assets
in issuers in a single sector. As of December 31, 2022, a significant portion of
the Fund is represented by asset-backed securities. The components of the Fund
are likely to change over time.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Sector allocations are determined based on the
sub-adviser’s assessment of risk/return opportunities relative to the Fund’s
investment goal. Once this is determined, the sub-adviser looks for companies
that it believes have sustainable competitive positions, strong management teams
and the ability to repay or refinance its debt obligations. The sub-adviser
performs a credit analysis on each potential issuer (a process designed to
measure an issuer’s ability to repay or refinance its debt obligations) and a
relative value analysis (by analyzing the investment’s attractiveness relative
to other investments with similar profiles for risk and liquidity) for each
potential investment. When selecting investments, the sub-adviser may invest in
instruments that it believes have the potential for capital
appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
Individual investments may be purchased or sold in the event the sub-adviser
decides to adjust debt asset class weightings within the portfolio. An
investment is generally sold when the issue has realized its price appreciation
target, the issue no longer offers relative value, or an adverse change in
corporate or sector fundamentals has occurred.
The
Fund is not a money market fund and is not subject to the special regulatory
requirements (including maturity and credit quality constraints) designed to
enable money market funds to maintain a stable share price.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
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•Active
Management Risk |
•Interest
Rate Risk |
•Credit
Risk |
•Liquidity
Risk |
•Debt
Securities Risk |
•Mortgage-Related
and Other Asset-Backed Securities Risk |
•Financial
Sector Risk |
•U.S.
Government Securities Risk |
•Foreign
Markets Risk |
|
Aristotle
Short Duration Income Fund
Investment
Goal
This
Fund seeks current income; capital appreciation is of secondary importance.
Principal
Investment Strategies
This
Fund invests principally in income producing debt instruments. Under normal
circumstances, the Fund will invest at least 70% of its assets in investment
grade debt instruments, including corporate debt, asset-backed securities,
mortgage-related securities, U.S. government securities and agency securities.
U.S. government securities consist of U.S. Treasury securities and securities
issued or guaranteed by U.S. government agencies or instrumentalities. The Fund
may invest up to 30% of its assets in non-investment grade (high yield/high
risk, sometimes called “junk bonds”) debt instruments and floating rate senior
loans. Debt securities in which the Fund invests may include those denominated
in U.S. dollars and issued by foreign entities that are primarily in developed
markets.
The
Fund expects to maintain a weighted average duration within one year (plus or
minus) of the Bloomberg US 1-3 Year Government/Credit Bond Index, although the
investments held by the Fund may have short, intermediate and long terms to
maturity. Duration is a mathematical measure of the average life of a bond that
includes its yield, coupon, final maturity and call features. Duration is often
used to measure a bond’s or fund’s sensitivity to interest rates (i.e.,
to measure the volatility of a bond’s price relative to a change in interest
rates). The longer a fund’s duration, the more sensitive it is to interest
rate risk.
The shorter a fund’s duration, the less sensitive it is to interest
rate risk.
Maturity of a debt instrument, however, refers to the specific period of time
until final payment (principal and any applicable interest) is due. The duration
of the Bloomberg US 1-3 Year Government/Credit Bond Index was 1.86 years as of
December 31, 2022.
Sector
allocations are determined based upon the sub-adviser’s assessment of
risk/return opportunities relative to the Fund’s investment goal and benchmark
weightings (Bloomberg US 1-3 Year Government/Credit Bond Index). The sub-adviser
performs a credit analysis on each potential issuer and a relative value
analysis on each potential investment. When selecting investments (including
non-income producing investments), the sub-adviser may invest in instruments
that it believes have the potential for capital appreciation.
The
sub-adviser normally invests the Fund’s assets across different groups of
industries/sectors but may invest a significant percentage of the Fund’s assets
in issuers in a single sector. As of December 31, 2022, a significant portion of
the Fund is represented by securities of companies in the Financial sector. The
components of the Fund are likely to change over time.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Sector allocations are determined based on the
sub-adviser’s assessment of risk/return opportunities relative to the Fund’s
investment goal. Once this is determined, the sub-adviser looks for companies
that it believes have sustainable competitive positions, strong management teams
and the ability to repay or refinance its debt obligations. The sub-adviser
performs a credit analysis on each potential issuer (a process designed to
measure an issuer’s ability to repay or refinance its debt obligations) and a
relative value analysis (by analyzing the investment’s attractiveness relative
to other investments with similar profiles for risk and liquidity) for each
potential investment. When selecting investments, the sub-adviser may invest in
instruments that it believes have the potential for capital
appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
Individual investments may be purchased or sold in the event the sub-adviser
decides to adjust debt asset class weightings within the portfolio. An
investment is generally sold when the issue has realized its price appreciation
target, the issue no longer offers relative value, or an adverse change in
corporate or sector fundamentals has occurred.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
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|
|
•Active
Management Risk |
•High
Yield/High Risk or “Junk” Securities Risk |
•Credit
Risk |
•Interest
Rate Risk |
•Debt
Securities Risk |
•LIBOR
Transition Risk |
•Financial
Sector Risk |
•Liquidity
Risk |
•Floating
Rate Loan Risk |
•Mortgage-Related
and Other Asset-Backed Securities Risk |
•Foreign
Markets Risk |
•U.S.
Government Securities Risk |
Aristotle
Core Income Fund
Investment
Goal
This
Fund seeks a high level of current income; capital appreciation is of secondary
importance.
Principal
Investment Strategies
This
Fund invests principally in income producing debt instruments. Under normal
circumstances, the Fund will invest at least 60% of its assets in investment
grade debt instruments, including corporate debt securities, asset-backed
securities, mortgage-related securities, U.S. government securities and agency
securities. U.S. government securities consist of U.S. Treasury securities and
securities issued or guaranteed by U.S. government agencies or
instrumentalities. The Fund may invest up to 40% of its assets in non-investment
grade (high yield/high risk, sometimes called “junk bonds”) debt instruments and
floating rate senior loans. Debt instruments in which the Fund invests may
include those denominated in U.S. dollars and issued by foreign entities in
developed markets.
The
Fund expects to maintain a weighted average duration within two years (plus or
minus) of the Bloomberg US Aggregate Bond Index, although the instruments held
may have short, intermediate, and long terms to maturity. Duration is a
mathematical measure of the average life of a bond that includes its yield,
coupon, final maturity, and call features. Duration is often used to measure a
bond’s sensitivity to interest rates (i.e.,
to measure the volatility of a bond’s price relative to a change in interest
rates). The longer a fund’s duration, the more sensitive it is to interest
rate risk.
The shorter a fund’s duration, the less sensitive it is to interest
rate risk.
The duration of the Bloomberg US Aggregate Bond Index was 6.17 years as of
December 31, 2022.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Sector allocations are determined based on the
sub-adviser’s assessment of risk/return opportunities relative to the Fund’s
investment goal. Once this is determined, the sub-adviser looks for companies
that it believes have sustainable competitive positions, strong management teams
and the ability to repay or refinance its debt obligations. The sub-adviser
performs a credit analysis on each potential issuer (a process designed to
measure an issuer’s ability to repay or refinance its debt obligations) and a
relative value analysis (by analyzing the investment’s attractiveness relative
to other investments with similar profiles for risk and liquidity) for each
potential investment. When selecting investments, the sub-adviser may invest in
instruments that it believes have the potential for capital
appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
Individual investments may be purchased or sold in the event the sub-adviser
decides to adjust debt asset class weightings within the portfolio. An
investment is generally sold when the issue has realized its price appreciation
target, the issue no longer offers relative value, or an adverse change in
corporate or sector fundamentals has occurred.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Interest
Rate Risk |
•Credit
Risk |
•LIBOR
Transition Risk |
•Debt
Securities Risk |
•Liquidity
Risk |
•Floating
Rate Loan Risk |
•Mortgage-Related
and Other Asset-Backed Securities Risk |
•Foreign
Markets Risk |
•Underlying
Fund Risk |
•High
Yield/High Risk or “Junk” Securities Risk |
•U.S.
Government Securities Risk |
Aristotle
ESG Core Bond Fund
Investment
Goal
This
Fund seeks total return, consisting of current income and capital appreciation,
while giving consideration to certain environmental, social, and governance
(“ESG”) criteria.
Principal
Investment Strategies
The
Fund primarily invests in a broad range of investment grade debt securities,
including corporate bonds, mortgage-related securities, asset-backed securities,
debt securities issued by the U.S. government or its related agencies and U.S.
dollar-denominated debt securities issued by developed foreign governments and
corporations. Under normal circumstances, the Fund may invest up to 65% of its
assets in corporate bonds. The Fund may invest up to 30% of its assets in U.S.
dollar-denominated debt securities of developed foreign governments and
corporations.
The
Fund expects to maintain a weighted average duration within two years (plus or
minus) of the Bloomberg US Aggregate Bond Index. Duration is often used to
measure a bond’s sensitivity to interest rates. The longer a fund’s duration,
the more sensitive it is to interest
rate risk.
The shorter a fund’s duration, the less sensitive it is to interest
rate risk.
The duration of the Bloomberg US Aggregate Bond Index was 6.17 years as of
December 31, 2022.
Non-agency
asset-backed securities in which the Fund invests will generally focus on
securities secured by company receivables, home equity loans, truck and auto
loans, leases and credit card receivables, student loans or other securities
backed by other types of receivables or other assets and would be structured to
pay both principal and interest. Examples of mortgage-related securities in
which the Fund may invest are mortgage pass-through securities, to-be-announced
securities, and Government National Mortgage Association certificates along with
other non-agency mortgage-related securities.
The
sub-adviser’s investment process for the Fund is based on a combination of the
sub-adviser’s fundamental research process and the sub-adviser’s ESG criteria,
which involves (i) the application of the ESG exclusionary screens described
below (the “ESG Exclusionary Screens”), and (ii) the sub-adviser’s analysis of
ESG metrics provided by independent third-party ESG data providers in respect of
certain debt securities held by the Fund. These considerations are described
below.
Individual
investments may be purchased or sold in the event the sub-adviser decides to
adjust debt asset class weightings within the portfolio. An investment is
generally sold when the issue has realized its price appreciation target, the
issue no longer offers relative value, or an adverse change in corporate or
sector fundamentals has occurred. Further, the sub-adviser will re-evaluate the
available ESG criteria of portfolio securities periodically to determine which
securities should be considered for sale based on whether the portfolio
securities continue to meet the ESG criteria.
The
sub-adviser normally invests the Fund’s assets across different groups of
industries/sectors but may invest a significant percentage of the Fund’s assets
in issuers in a single sector. The components of the Fund are likely to change
over time.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Sector allocations are determined based on the
sub-adviser’s assessment of risk/return opportunities relative to the Fund’s
investment goal. Once this is determined, the sub-adviser looks for companies
that it believes have sustainable competitive positions, strong management teams
and the ability to repay or refinance its debt obligations. The sub-adviser
performs a credit analysis on each potential issuer (a process designed to
measure an issuer’s ability to repay or refinance its debt obligations) and a
relative value analysis (by analyzing the investment’s attractiveness relative
to other investments with similar profiles for risk and liquidity) for each
potential investment. When selecting investments, the sub-adviser may invest in
instruments that it believes have the potential for capital
appreciation.
ESG
Exclusionary Screens. Under
normal circumstances, the Fund will invest at least 80% of its assets in debt
securities that are permitted investments under the ESG Exclusionary Screens.
The sub-adviser has created two ESG Exclusionary Screens, one of which is
applicable to corporate debt issuers (the “Corporate Debt Screen”) and the other
of which is applicable to government debt issuers (the “Government Debt
Screen”).
The
sub-adviser uses the Corporate Debt Screen to identify a universe of corporate
bonds, asset-backed securities, and mortgage-related securities, the issuers of
which are not directly involved in (i) the extraction of thermal coal, coal
power generation, and providing tailor-made products and services that support
thermal coal extraction that contribute materially to company revenue; in each
case, such issuers are excluded only to the extent that such activities lead to
revenue in excess of the sub-adviser’s revenue threshold (which is currently
9.99%); (ii) the production of tobacco; (iii) the production of controversial
military weapons (i.e.,
weapons that have a disproportionate and indiscriminate impact on civilian
populations, sometimes even years after a conflict has ended); (iv) serious or
systematic human rights violations; (v) severe environmental damage; (vi) gross
corruption or other serious financial crime (as those terms (iv)-(vi) are
determined by Norges Bank). The
Fund may invest in transition bonds issued by entities that derive revenue from
activities in the exclusion list. Transition bonds, also referred to as
sustainable bonds, are debt instruments whose proceeds are exclusively used to
finance projects aimed at helping the issuer transition to a more sustainable
way of doing business. Examples of these bonds are green bonds (used to finance
projects with positive environmental impacts), blue bonds (used to raise capital
for ocean conservation, marine and fisheries projects) and social bonds (used to
finance social projects intended to achieve positive social outcomes and/or
address a social issue). For example, the Fund could invest in a bond offered by
a coal mining company where the proceeds from sale of the bond are earmarked
exclusively for renewable energy projects such as wind turbine and/or solar
panel development because the “transitional” activities of that issuer suggest
it is making an effort to adapt their business model to become more sustainable
over the long term.
The
sub-adviser uses a combination of issuer lists and ESG-specific issuer
information provided by third-party ESG data sources (e.g.,
Morningstar Sustainalytics, and Norges Bank) to determine which issuers are
permitted investments under the Corporate Debt Screen. This information is
determined by the third-party ESG data providers’ internal
methodologies.
The
sub-adviser uses the Government Debt Screen to identify a universe of sovereign
debt issued by government and sovereign issuers that have not received ESG
ratings of “high risk” or “severe risk” from the third-party ESG data provider
used by the sub-adviser.
In
the event independent third-party ESG data is not available for an issuer, the
sub-adviser may rely on its own research to determine whether a particular debt
security is permitted for investment under the applicable ESG Exclusionary
Screens.
Up
to 20% of the Fund’s assets may be invested in cash and certain types of debt
securities, including collateralized loan obligations, that are not subject to
either of the ESG Exclusionary Screens or that would not be permitted
investments under the ESG Exclusionary Screens.
ESG
Metrics. To
evaluate an issuer’s material ESG factors that help inform portfolio management
decisions, the sub-adviser generally relies upon the assessments of third-party
ESG data providers to score the material ESG factors of issuers to determine the
issuer’s overall ESG ratings (the “Overall ESG Ratings”). The providers’ Overall
ESG Ratings consider, as applicable or relevant, the following factors:
environmental assessments (involving issues such as greenhouse gas emissions,
resource efficiency, use of natural resources and/or waste management), social
assessments (involving issues such as human capital management, labor standards,
occupational health and safety records, data security and/or product quality and
safety) and/or governance assessments (involving issues such as board structure
and quality, executive compensation, anti-competitive practices, ownership,
shareholder rights, and/or geopolitical risk). When determining an issuer’s
Overall
ESG Ratings, the providers rate the material ESG factors of each issuer within
the providers’ universe and then apply weights to each factor’s score to create
an aggregate score. The sub-adviser relies upon these Overall ESG Ratings when
constructing the portfolio. These ratings seek to measure the degree to which an
issuer’s economic value is at risk due to ESG factors (e.g.,
an insurance company that has to cover flood and tornado claims), how well they
manage the ESG risks relative to peers, and potential opportunities arising from
ESG factors.
Given
that the ESG providers have different research methodologies and slightly
different assessments of financially material ESG factors for each issuer,
should ESG ratings between providers be inconsistent, then the sub-adviser will
review the information underlying those ratings determinations. The sub-adviser
has the right to change an ESG data provider and add to the number of providers
providing ESG information at any time. In the event that third-party ESG metrics
are not available for an issuer considered for investment, the sub-adviser may
rely on its own qualitative research as a substitute (but is not required to
perform an analysis of ESG factors on issuers that are not within the providers’
universe).
The
Fund seeks to invest in corporate debt securities with a lower average carbon
intensity than the average carbon intensity of the corporate debt securities
within the Bloomberg US Aggregate Bond Index (the Fund’s benchmark index) for
which this data is available using the carbon intensity definition and
calculation methodology of an independent third-party ESG data provider. The
sub-adviser uses the definition of “carbon intensity” from one of its
independent third-party ESG data providers, which defines “carbon intensity” as
“metric tons of carbon dioxide emissions per million dollars of revenue.” This
definition also describes how the independent third-party ESG data provider
calculates the carbon intensity score for a corporate debt security.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Foreign
Markets Risk |
•Credit
Risk |
•Interest
Rate Risk |
•Debt
Securities Risk |
•LIBOR
Transition Risk |
•ESG
Criteria Risk |
•Mortgage-Related
and Other Asset-Backed Securities Risk |
•Financial
Sector Risk |
•U.S.
Government Securities Risk |
Aristotle
Strategic Income Fund
Investment
Goal
This
Fund seeks a high level of current income. The Fund may also seek capital
appreciation.
Principal
Investment Strategies
This
Fund invests principally in income producing debt instruments. The Fund’s
allocations to non-investment grade debt instruments and investment grade debt
instruments will change based on the sub-adviser’s view of market conditions
and, as a result, may range from up to 70% of the Fund’s assets in
non-investment grade (high yield/high risk, sometimes called “junk bonds”) debt
instruments and floating rate loans to up to 65% of the Fund’s assets in
investment grade debt instruments, including corporate debt securities,
asset-backed securities, mortgage-related securities, U.S. government securities
and agency securities. U.S. government securities consist of U.S. Treasury
securities and securities issued or guaranteed by U.S. government agencies or
instrumentalities. Debt instruments in which the Fund invests may include those
denominated in U.S. dollars issued by foreign entities in developed
markets.
The
Fund’s weighted average duration is expected to be within a range of one to
seven years. Duration is a mathematical measure of the average life of a bond
that includes its yield, coupon, final maturity, and call features. Duration is
often used to measure a bond’s or fund’s sensitivity to interest rates
(i.e.,
to measure the volatility of a bond’s price relative to a change in interest
rates). The longer a fund’s duration, the more sensitive it is to interest
rate risk.
The shorter a fund’s duration, the less sensitive it is to interest
rate risk.
The
Fund may also invest up to 10% of its assets, but not to exceed 20% in the
aggregate, in each of the following investments: foreign currency denominated
debt instruments, convertible securities or equity securities.
Sector
allocations are determined based upon the sub-adviser’s assessment of
risk/return opportunities relative to the Fund’s investment goal and benchmark
weightings (Bloomberg US Aggregate Bond Index). The sub-adviser performs a
credit analysis on each potential issuer and a relative value analysis on each
potential investment. When selecting investments (including non-income producing
investments), the sub-adviser may invest in instruments that it believes have
the potential for capital appreciation.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Sector allocations are determined based on the
sub-adviser’s assessment of risk/return opportunities relative to the Fund’s
investment goal. Once this is determined, the sub-adviser looks for companies
that it believes have sustainable competitive positions, strong management teams
and the ability to repay or refinance its debt obligations. The sub-adviser
performs a credit analysis on each potential issuer (a process designed to
measure an issuer’s ability to repay or refinance its debt obligations) and a
relative value analysis (by analyzing the investment’s attractiveness relative
to other investments with similar profiles for risk and liquidity) for each
potential investment. When selecting investments, the sub-adviser may invest in
instruments that it believes have the potential for capital
appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
Individual investments may be purchased or sold in the event the sub-adviser
decides to adjust debt asset class weightings within the portfolio. An
investment is generally sold when the issue has realized its price appreciation
target, the issue no longer offers relative value, or an adverse change in
corporate or sector fundamentals has occurred.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Foreign
Markets Risk |
•Convertible
Securities Risk |
•High
Yield/High Risk or “Junk” Securities Risk |
•Credit
Risk |
•Interest
Rate Risk |
•Currency
Risk |
•LIBOR
Transition Risk |
•Debt
Securities Risk |
•Liquidity
Risk |
•Equity
Securities Risk |
•Mortgage-Related
and Other Asset-Backed Securities Risk |
•Floating
Rate Loan Risk |
•U.S.
Government Securities Risk |
Aristotle
Floating Rate Income Fund
Investment
Goal
This
Fund seeks a high level of current income.
Principal
Investment Strategies
This
Fund invests principally in income producing floating rate loans and floating
rate debt securities. Under normal circumstances, this Fund invests at least 80%
of its assets in floating rate loans and floating rate debt securities. Floating
rate loans and floating rate debt securities are those with interest rates which
float, adjust, or vary periodically based upon a benchmark indicator, a
specified adjustment schedule or prevailing interest rates. Floating rate loans
and floating rate debt securities in which the Fund invests consist of senior
secured and unsecured floating rate loans, secured and unsecured second lien
floating rate loans, and floating rate debt securities of domestic and foreign
issuers. Senior floating rate loans and some floating rate debt securities are
debt instruments that may have a right to payment that is senior to most other
debts of the borrowers. Second lien loans are generally second in line in terms
of repayment priority with respect to the pledged collateral. Borrowers may
include corporations, partnerships and other entities that operate in a variety
of industries and geographic regions. Floating rate loans are generally arranged
through private negotiations between a borrower and several financial
institutions represented, in each case, by one or more lenders acting as agent
of the other lenders. On behalf of the lenders, the agent is primarily
responsible for negotiating the loan agreement that establishes the terms and
conditions of the loans and the rights and obligations of the borrowers and
lenders. Floating rate loans and floating rate debt securities generally pay
interest at rates that are periodically redetermined by reference to a base
lending rate plus a premium. Generally, secured floating rate loans are secured
by specific assets of the borrower.
Floating
rate loans will generally be purchased from banks or other financial
institutions through assignments or participations. By purchasing a
participation, the Fund acquires some or all of the interest of a bank or other
lending institution in a loan to a borrower. Participations typically will
result in the Fund having a contractual relationship only with the lender and
not the borrower. When the Fund purchases assignments from lenders, the Fund
will acquire direct rights against the borrower on the loan. A direct interest
in a floating rate loan may be acquired directly from the agent of the lender or
another lender by assignment or an indirect interest may be acquired as a
participation in another lender’s portion of a floating rate loan.
A
significant portion of floating rate investments may be “covenant lite” loans
that may contain fewer or less restrictive constraints on the borrower or other
borrower-friendly characteristics. Covenant lite loans and floating rate debt
securities generally give the borrower/issuer more flexibility than
maintenance-based loans.
The
Fund is expected to invest substantially all of its assets in floating rate
loans and other debt instruments that are rated non-investment grade or, if
unrated, are of comparable quality as determined by the sub-adviser. The Fund
may invest up to 20% of its assets in other types of debt instruments or
securities including non-investment grade (high yield/high risk, sometimes
called “junk bonds”) debt instruments. Such non-investment grade instruments
include those that may be stressed, distressed or in default.
The
Fund may invest up to 25% of its assets in U.S. dollar denominated foreign
investments, principally in developed markets.
The
floating rate loans and floating rate securities in which the Fund invests are
not subject to any restrictions with respect to maturity. Floating rate loans
and floating rate securities will have rates of interest that are reset daily,
monthly, quarterly, semi-annually or annually.
Fundamental
Research Process.
Individual investment selection is based on the sub-adviser’s fundamental
research process. The sub-adviser’s fundamental research process combines a
bottom-up issuer analysis and top-down market assessment. A bottom-up issuer
analysis relies upon the sub-adviser’s fundamental research analysis of
individual issuers. A top-down market assessment provides a framework for
portfolio risk positioning and sector allocations. Sector allocations are
determined based on the sub-adviser’s assessment of risk/return opportunities
relative to the Fund’s investment goal. Once this is determined, the sub-adviser
looks for companies that it believes have sustainable competitive positions,
strong management teams and the ability to repay or refinance its debt
obligations. The sub-adviser performs a credit analysis on each potential issuer
(a process designed to measure an issuer’s ability to repay or refinance its
debt obligations) and a relative value analysis (by analyzing the investment’s
attractiveness relative to other investments with similar profiles for risk and
liquidity) for each potential investment. When selecting investments, the
sub-adviser may invest in instruments that it believes have the potential for
capital appreciation.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•High
Yield/High Risk or “Junk” Securities Risk |
•Credit
Risk |
•Interest
Rate Risk |
•Debt
Securities Risk |
•LIBOR
Transition Risk |
•Floating
Rate Loan Risk |
•Liquidity
Risk |
•Foreign
Markets Risk |
•Underlying
Fund Risk |
Aristotle
High Yield Bond Fund
Investment
Goal
This
Fund seeks a high level of current income.
Principal
Investment Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in
non-investment grade (high yield/high risk, sometimes called “junk bonds”) debt
instruments or in instruments with characteristics of non-investment grade debt
instruments. The Fund invests principally in instruments that have intermediate
(more than one year but less than ten years) to long (more than ten years) terms
to maturity. Debt instruments in which the Fund invests focus on corporate bonds
and notes, but may also include floating rate loans, and may also be of foreign
issuers that are denominated in U.S. dollars. Floating rate loans are those with
interest rates which float, adjust, or vary periodically based upon a benchmark
indicator, a specified adjustment schedule or prevailing interest
rates.
Sector
allocations are determined based upon the sub-adviser’s assessment of
risk/return opportunities relative to the Fund’s investment goal and benchmark
weightings (Bloomberg US High-Yield 2% Issuer Capped Bond Index). The
sub-adviser performs a credit analysis on each potential issuer and a relative
value analysis on each potential investment.
Fundamental
Research Process.
The sub-adviser’s fundamental research process combines a bottom-up issuer
analysis and top-down market assessment. A bottom-up issuer analysis relies upon
the sub-adviser’s fundamental research analysis of individual issuers. A
top-down market assessment provides a framework for portfolio risk positioning
and sector allocations. Sector allocations are determined based on the
sub-adviser’s assessment of risk/return opportunities relative to the Fund’s
investment goal. Once this is determined, the sub-adviser looks for companies
that it believes have sustainable competitive positions, strong management teams
and the ability to repay or refinance its debt obligations. The sub-adviser
performs a credit analysis on each potential issuer (a process designed to
measure an issuer’s ability to repay or refinance its debt obligations) and a
relative value analysis (by analyzing the investment’s attractiveness relative
to other investments with similar profiles for risk and liquidity) for each
potential investment. When selecting investments, the sub-adviser may invest in
instruments that it believes have the potential for capital
appreciation.
Individual
investment selection is based on the sub-adviser’s fundamental research process.
An investment is generally sold when the issue has realized its price
appreciation target, the issue no longer offers relative value, or an adverse
change in corporate or sector fundamentals has occurred.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•High
Yield/High Risk or “Junk” Securities Risk |
•Credit
Risk |
•Interest
Rate Risk |
•Debt
Securities Risk |
•LIBOR
Transition Risk |
•Floating
Rate Loan Risk |
•Liquidity
Risk |
•Foreign
Markets Risk |
•Underlying
Fund Risk |
Aristotle
Small/Mid Cap Equity Fund
Investment
Goal
This
Fund seeks long-term capital appreciation.
Principal
Investment Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in equity
securities of small and medium capitalization companies. The sub-adviser
considers small and medium capitalization companies to be those companies that,
at the time of initial purchase, have a market capitalization equal to or less
than that of the largest company in the Russell 2500® Index
(the largest market capitalization of a company in the Russell 2500®
Index was approximately $51.6 billion during the 12-month period ended
December 31, 2022). The Russell 2500® Index
is reconstituted annually. Because small and medium capitalization companies are
defined by reference to an index, the range of market capitalization of
companies in which the Fund invests may vary with market conditions. Investments
in companies that move above or below the capitalization range may continue to
be held by the Fund in the sub-adviser’s sole discretion. As of
December 31, 2022, the weighted average market capitalization of the
Predecessor Fund was approximately $7.8 billion.
The
Fund’s investments in equity securities may include common stocks, depository
receipts, and exchange-traded funds (“ETFs”) that invest primarily in equity
securities of small and medium capitalization companies. Depository receipts
represent interests in foreign securities held on deposit by banks. ETFs are
investment companies that invest in portfolios of securities designed to track
particular market segments or indices, the shares of which are bought and sold
on securities exchanges.
The
Fund seeks to meet its investment goal by investing primarily in equity
securities of U.S. issuers but may invest up to 5% of its total assets in
American Depository Receipts (“ADRs”). ADRs are receipts that represent
interests in foreign securities held on deposit by U.S. banks.
In
pursuing the Fund’s investment goal, the sub-adviser employs a fundamental,
bottom-up research driven approach to identify companies for investment by the
Fund. The sub-adviser focuses on those companies that it believes have
high-quality businesses that are undervalued by the market relative to what the
sub-adviser believes to be their fair value. The sub-adviser seeks to identify
high-quality businesses by focusing on companies with the following attributes:
disciplined business plans; attractive business fundamentals; sound balance
sheets; financial strength; experienced, motivated company management;
reasonable competition; and/or a record of long-term value
creation.
The
Fund is benchmarked to the Russell 2500®
Index. However, the sub-adviser is not constrained by the composition of the
Russell 2500®
Index in selecting investments for the Fund. As a result, the Fund may invest in
securities that are not included within its benchmark. The sub-adviser therefore
will not seek to track the Fund’s investments to the composition of the Russell
2500®
Index.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Mid-Capitalization
Companies Risk |
•Equity
Securities Risk |
•Small-Capitalization
Companies Risk |
•Liquidity
Risk |
•Value
Companies Risk |
Aristotle
Small Cap Equity Fund
Investment
Goal
This
Fund seeks long-term capital appreciation.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in equity
securities of small capitalization companies. The sub-adviser considers small
capitalization companies to be those companies that, at the time of initial
purchase, have a market capitalization equal to or less than that of the largest
company in the Russell 2000®
Index (the largest market capitalization of a company in the Russell
2000®
Index was approximately $16.7 billion during the 12-month period ended December
31, 2022). The Russell 2000®
Index is reconstituted annually. Because small capitalization companies are
defined by reference to an index, the range of market capitalization of
companies in which the Fund invests may vary with market conditions. Investments
in companies that move above or below the capitalization range may continue to
be held by the Fund in the sub-adviser’s sole discretion. As of December 31,
2022, the weighted average market capitalization of the Predecessor Fund was
approximately $3.2 billion.
The
Fund’s investments in equity securities may include common stocks, depository
receipts, and exchange-traded funds (“ETFs”) that invest primarily in equity
securities of small capitalization companies. Depository receipts represent
interests in foreign securities held on deposit by banks. ETFs are investment
companies that invest in portfolios of securities designed to track particular
market segments or indices, the shares of which are bought and sold on
securities exchanges.
The
Fund seeks to meet its investment goal by investing primarily in equity
securities of U.S. issuers but may invest up to 5% of its total assets in
American Depository Receipts (“ADRs”). ADRs are receipts that represent
interests in foreign securities held on deposit by U.S. banks.
In
pursuing the Fund’s investment goal, the sub-adviser employs a fundamental,
bottom-up research driven approach to identify companies for investment by the
Fund. The sub-adviser focuses on those companies that it believes have
high-quality businesses that are undervalued by the market relative to what the
sub-adviser believes to be their fair value. The sub-adviser seeks to identify
high-quality businesses by focusing on companies with the following attributes:
disciplined business plans; attractive business fundamentals; sound balance
sheets; financial strength; experienced, motivated company management;
reasonable competition; and/or a record of long-term value
creation.
The
Fund is benchmarked to the Russell 2000®
Index. However, the sub-adviser is not constrained by the composition of the
Russell 2000®
Index in selecting investments for the Fund. As a result, the Fund may invest in
securities that are not included within its benchmark. The sub-adviser therefore
will not seek to track the Fund’s investments to the composition of the Russell
2000®
Index.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Mid-Capitalization
Companies Risk |
•Equity
Securities Risk |
•Small-Capitalization
Companies Risk |
•Liquidity
Risk |
•Value
Companies Risk |
Aristotle
Growth Equity Fund
Investment
Goal
This
Fund seeks long-term growth of capital.
Principal
Investment Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in equity
securities. The Fund’s investments in equity securities may include common
stocks, preferred stocks, convertible preferred stocks, depository receipts,
shares of publicly traded real estate investment trusts (“REITs”), warrants and
rights. The Fund’s investments in depository receipts may include American,
European and Global Depository Receipts (“ADRs,” “EDRs,” and “GDRs,”
respectively). ADRs are receipts that represent interests in foreign securities
held on deposit by U.S. banks. EDRs and GDRs have the same qualities as ADRs,
except that they may be traded in several international trading markets.
Although the Fund may invest in companies of any market capitalization and from
any country, the sub-adviser’s investment process typically focuses on the
universe of U.S. companies with market capitalizations in excess of $2 billion
at initial investment.
In
pursuing the Fund’s investment goal, the Fund’s sub-adviser, employs a
fundamental, bottom-up research driven approach to identify companies for
investment by the Fund. The sub-adviser seeks to identify companies that it
believes are positioned to benefit from one or more of the following: (i) shifts
in industry spending, government spending and consumer trends; (ii) gains in
market share from innovative products and strong intellectual property; and
(iii) cyclical trends in the industry in which they operate and capable
management that can take advantage of those trends. The Fund is typically
composed of companies that, in the aggregate, result in a portfolio that
displays growth
characteristics.
At times, the Fund’s assets may be invested in securities of relatively few
industries or sectors. Currently, the Fund is significantly invested in the
Information Technology Sector.
The
Fund is benchmarked to the Russell 1000®
Growth Index. However, the sub-adviser is not constrained by the composition of
the Russell 1000®
Growth Index in selecting investments for the Fund. As a result, the Fund may
invest in securities that are not included within its benchmark. The sub-adviser
therefore will not seek to track the Fund’s investments to the composition of
the Russell 1000®
Growth Index.
The
sub-adviser will normally sell a security when it believes the price is unlikely
to go higher, the company’s fundamentals have changed, or in the course of
adjusting the Fund’s emphasis on a particular industry. The sub-adviser may also
decide to sell a security to pursue more attractive investments for the Fund, to
raise cash for redemptions of Fund shares or for other reasons.
When
the sub-adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the Fund’s investment
goal, the Fund may invest some or all of its assets in cash or cash equivalents,
including but not limited to obligations of the U.S. government, money market
fund shares, commercial paper, certificates of deposit and/or bankers
acceptances, as well as other interest bearing or discount obligations or debt
instruments that carry an investment grade rating by a national rating agency.
When the Fund takes a temporary defensive position, the Fund may not achieve its
investment goal.
The
Fund is a non-diversified investment company.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Large-Capitalization
Companies Risk |
•Currency
Risk |
•Non-Diversification
Risk |
•Equity
Securities Risk |
•Information
Technology Sector Risk |
•Foreign
Markets Risk |
•Underlying
Fund Risk |
•Growth
Companies Risk |
|
Aristotle
Value Equity Fund
Investment
Goal
This
Fund seeks long-term growth of capital.
Principal
Investment Strategies
Under
normal market conditions, this Fund invests at least 80% of its assets in equity
securities. The Fund’s investments in equity securities may include common
stocks, depository receipts, and ETFs that invest primarily in equity
securities. To the extent a Fund invests in underlying funds, including ETFs,
the Fund will consider the investments of the underlying funds when determining
compliance with the Fund’s Name Test Policy. For these purposes, if an
underlying fund has a policy to invest at least 80% of its net assets in
particular investments, industries, or geographical regions, the Fund may
consider 100% of that underlying fund to be invested consistent with that
policy.
In
selecting investments for the Fund, the sub-adviser employs a fundamental,
bottom-up approach. The Fund’s sub-adviser focuses first on identifying
companies that it believes have high-quality businesses that are undervalued by
the market relative to what it believes to be their fair values. The sub-adviser
then assesses the attractiveness of the valuation of those high-quality
companies by analyzing a variety of valuation metrics, such as cash flow return
of enterprise value (i.e., the rate of return on the total value of the
business), price-to-earnings ratios, sales and free cash flow ratios, and
break-up values, among others. The sub-adviser then looks for potential
catalysts for a company’s business that could help unlock what it believes is
the company’s true value, including:
•Productive
use of strong free cash flow
•Restructuring
and/or productivity gains
•Change
in management or control
•Innovative,
competitively superior products
•Accretive
acquisitions or divestitures
The
Fund is benchmarked to the Russell 1000®
Value Index and the S&P 500®
Index. However, the sub-adviser is not constrained by the composition of either
index in selecting investments for the Fund. As a result, the Fund may invest in
securities that are not included within its benchmarks. The sub-adviser
therefore will not seek to track the Fund’s investments to the composition of
the Russell 1000®
Value Index or the S&P 500®
Index.
Typically,
the sub-adviser evaluates whether to sell a security held in the Fund’s
portfolio when the security’s price approaches a target level that the
sub-adviser has identified or appears to underperform. The sub-adviser may
determine to sell a security based on its assessment of these factors or as a
result of warning signs indicating a fundamental deterioration of the issuer’s
business. The sub-adviser
may
also decide to sell a security to pursue more attractive investments for the
Fund, to raise cash for redemptions or for other reasons.
When
the sub-adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the Fund’s investment
goal, the Fund may invest some or all of its assets in cash or cash equivalents,
including but not limited to, obligations of the U.S. government, money market
fund shares, commercial paper, certificates of deposit and/or bankers
acceptances, as well as other interest bearing or discount obligations, or debt
instruments that carry an investment-grade rating by a national rating agency.
When the Fund takes a temporary defensive position, the Fund may not achieve its
investment goal.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Mid-Capitalization
Companies Risk |
•Equity
Securities Risk |
•Small-Capitalization
Companies Risk |
•ETF
Risk |
•Underlying
Fund Risk |
•Foreign
Investment Risk |
•Value
Companies Risk |
•Large-Capitalization
Companies Risk |
|
Aristotle
International Equity Fund
Investment
Goal
This
Fund seeks long-term capital appreciation.
Principal
Investment Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in equity
securities or depository receipts of companies organized, headquartered or doing
a substantial amount of business outside of the United States.
In
pursuing its investment goal, the Fund seeks attractive risk-adjusted returns by
investing in securities trading at significant discounts to their fair values.
The Fund primarily invests its assets in equity securities that are listed on
exchanges or that are otherwise publicly traded in foreign countries. The Fund
generally invests in securities of companies located in different regions and in
at least three different countries. The Fund intends to invest no more than 20%
of its total assets in companies organized, headquartered, or doing a
substantial amount of business in emerging market countries, under normal market
conditions. The Fund may invest in companies of any market
capitalization.
In
selecting investments for the Fund, the Fund’s sub-adviser employs a
fundamental, bottom-up approach. The sub-adviser focuses first on identifying
companies that it believes have high-quality businesses that are undervalued by
the market relative to what the sub-adviser believes to be their fair value. The
sub-adviser then assesses the attractiveness of the valuation of those
high-quality companies by analyzing a variety of valuation metrics, such as cash
flow return of enterprise value (i.e., the rate of return on the total value of
the business), price-to-earnings ratios, sales and free cash flow ratios, and
break-up values, among others. The sub-adviser then looks for potential
catalysts for the company’s business that could help unlock what the sub-adviser
believes is the company’s true value, including:
•Productive
use of strong free cash flow;
•Restructuring
and/or productivity gains;
•Change
in management or control;
•Innovative,
competitively superior products; and
•Accretive
acquisitions or divestitures.
The
Fund is benchmarked to the MSCI Europe, Australasia and Far East (“EAFE”) Index
(net) and the MSCI All Country World (“ACWI”) ex USA Index (net). However, the
sub-adviser is not constrained by the composition of either index in selecting
investments for the Fund. As a result, the Fund may invest in securities that
are not included within its benchmarks. The sub-adviser therefore will not seek
to track the Fund’s investments to the composition of the MSCI EAFE Index or the
MSCI ACWI ex USA Index.
Typically,
the sub-adviser evaluates whether to sell a security held by the Fund’s when the
security’s price approaches a target level that the sub-adviser has identified,
the security’s price declines from its peak price by a significant amount, or
the security underperforms the overall market or the securities of companies in
the same industry by a significant amount. The sub-adviser may determine to sell
a security based on its assessment of these factors or as a result of warning
signs indicating a fundamental deterioration of the issuer’s business. The
sub-adviser may also decide to sell a security to pursue more attractive
investments for the Fund, to raise cash for redemptions or for other
reasons.
When
the sub-adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the Fund’s investment
goal, the Fund may invest some or all of its assets in cash or cash equivalents,
including, but not limited to, obligations of the U.S. government, money market
fund shares, commercial paper, certificates of deposit and/or bankers
acceptances, as well as other interest bearing or discount obligations or debt
instruments that carry an investment grade rating by a national rating agency.
When the Fund takes a temporary defensive position, the Fund may not achieve its
investment goal.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
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|
|
|
|
|
•Active
Management Risk |
•Foreign
Investment Risk |
•Currency
Risk |
•Geographic
Risk Related to Europe |
•Equity
Securities Risk |
•Underlying
Fund Risk |
•Emerging
Markets Investment Risk |
•Value
Companies Risk |
Aristotle/Saul
Global Equity Fund
Investment
Goal
This
Fund seeks to maximize long-term capital appreciation and income.
Principal
Investment Strategies
Under
normal circumstances, this Fund primarily invests its assets in equity
securities that are listed on an exchange or that are otherwise publicly traded
in the United States or in a foreign country. However, the Fund may also invest
in a variety of other instruments traded in U.S. and foreign markets. The Fund
may also invest in ETFs.
Under
normal market conditions, the Fund invests in at least three different
countries, including emerging market countries, with at least 40% of its net
assets invested in securities of issuers located outside the United States. The
Fund’s investments in foreign securities may include investments through
American, European and Global Depository Receipts (“ADRs,” “EDRs,” and “GDRs,”
respectively).
The
Fund does not limit the types of companies in which it seeks to invest its
assets based on market capitalization.
The
strategy seeks to maximize total return, which includes both long-term capital
appreciation and income via equity dividends. In selecting investments for the
Fund, the sub-adviser employs a fundamental, bottom-up approach. The sub-adviser
focuses first on the quality of each subject company’s business, analyzing
whether the company illustrates sustainable competitive advantage and the
potential for favorable returns on invested capital. Having identified such a
company, the sub-adviser
then
considers whether the company’s securities are available at an attractive price
relative to what the sub-adviser believes to be their fair value. The
sub-adviser
seeks
to identify high-quality businesses by focusing on companies with all or most of
the following attributes: attractive business fundamentals; experienced,
motivated company management; pricing power; sustainable competitive advantages;
financial strength; history of or prospects for paying dividends; and/or high or
consistently improving market position, return on invested capital and operating
margins. The Fund may invest in companies of any market capitalizations, but
typically invests in companies with a market capitalization above $2 billion at
initial investment.
The
Fund is benchmarked to the MSCI All Country World (“ACWI”) Index (net) and the
MSCI World Index (net). However, the sub-adviser is not constrained by the
composition of either index in selecting investments for the Fund. As a result,
the Fund may invest in securities that are not included within its benchmarks.
The sub-adviser therefore will not seek to track the Fund’s investments to the
composition of the MSCI ACWI Index or the MSCI World Index.
Typically,
the sub-adviser evaluates whether to sell a security held in the Fund’s
portfolio when the security’s price approaches a target level that the
sub-adviser has identified, declines from its peak price by a significant
amount, or underperforms the overall market or the securities of companies in
the same industry by a significant amount. The sub-adviser may determine to sell
a security based on its assessment of these factors or as a result of warning
signs indicating a fundamental deterioration of the issuer’s business. The
sub-adviser may also decide to sell a security to pursue more attractive
investments for the Fund, to raise cash for redemptions or for other
reasons.
When
the sub-adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the Fund’s investment
goal, the Fund may invest some or all of its assets in cash or cash equivalents,
including but not limited to, obligations of the U.S. government, money market
fund shares, commercial paper, certificates of deposit and/or bankers
acceptances, as well as other interest bearing or discount obligations, or debt
instruments that carry an investment-grade rating by a national rating agency.
When the Fund takes a temporary defensive position, the Fund may not achieve its
investment goal.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Large-Capitalization
Companies Risk |
•Currency
Risk |
•Liquidity
Risk |
•Emerging
Markets Risk |
•Mid-Capitalization
Companies Risk |
•Equity
Securities Risk |
•Sector
Focus Risk |
•ETF
Risk |
•Small-Capitalization
Companies Risk |
•Foreign
Investment Risk |
•Underlying
Funds Risk |
•Geographic
Risk Related to Europe |
•Value
Companies Risk |
Aristotle
Core Equity Fund
Investment
Goal
This
Fund seeks long-term growth of capital.
Principal
Investment Strategies
Under
normal circumstances, this Fund invests at least 80% of its assets in equity
securities. The Fund’s investments in equity securities may include common
stocks, preferred stocks, convertible preferred stocks, depository receipts,
shares of publicly traded real estate investment trusts (“REITs”), warrants and
rights. The Fund’s investments in depository receipts may include American,
European and Global Depository Receipts (“ADRs,” “EDRs,” and “GDRs,”
respectively). ADRs are receipts that represent interests in foreign securities
held on deposit by U.S. banks. EDRs and GDRs have the same qualities as ADRs,
except that they may be traded in several international trading markets.
Although the Fund may invest in companies of any market capitalization and from
any country, the sub-adviser's investment process typically focuses on the
universe of U.S. companies with market capitalizations in excess of $2 billion
at initial investment.
In
pursuing the Fund’s investment goal, the Fund’s sub-adviser, employs a
fundamental, bottom-up research driven approach to identify companies for
investment by the Fund. The sub-adviser seeks to identify companies that it
believes are positioned to benefit from one or more of the following: (i) shifts
in industry spending, government spending and consumer trends; (ii) gains in
market share from innovative products and strong intellectual property; and
(iii) cyclical trends in the industry in which they operate and capable
management that can take advantage of those trends. The investment process and
allocation decisions result in a portfolio that blends both value and growth
characteristics. At times, the Fund’s assets may be invested in securities of
relatively few industries or sectors. Currently, the Fund is significantly
invested in the Information Technology Sector.
The
Fund is benchmarked to the S&P 500®
Index. However, the sub-adviser is not constrained by the composition of the
S&P 500®
Index in selecting investments for the Fund.
The
sub-adviser will normally sell a security when it believes the price is unlikely
to go higher, the company’s fundamentals have changed, or in the course of
adjusting the Fund’s emphasis on a particular industry. The sub-adviser may also
decide to sell a security to pursue more attractive investments for the Fund, to
raise cash for redemptions of Fund shares or for other reasons.
When
the sub-adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the Fund’s investment
goal, the Fund may invest some or all of its assets in cash or cash equivalents,
including but not limited to obligations of the U.S. government, money market
fund shares, commercial paper, certificates of deposit and/or bankers
acceptances, as well as other interest bearing or discount obligations or debt
instruments that carry an investment grade rating by a national rating agency.
When the Fund takes a temporary defensive position, the Fund may not achieve its
investment goal.
Principal
Risks:
The
following principal risks are described in the Additional
Information About Principal Risks
section of this Prospectus.
|
|
|
|
|
|
•Active
Management Risk |
•Mid-Capitalization
Companies Risk |
•Equity
Securities Risk |
•Preferred
Stock Risk |
•ETF
Risk |
•Sector
Focus Risk |
•Foreign
Investment Risk |
•Small-Capitalization
Companies Risk |
•Information
Technology Sector Risk |
•Underlying
Funds Risk |
•Large-Capitalization
Companies Risk |
•Warrants
and Rights Risk |
Additional
Information About Principal Risks
Risk
is the chance that you will lose money on an investment, or that it will not
earn as much as you would expect. Every mutual fund has some degree of risk
depending on its investments and strategies. The following provides additional
information about the principal risks of the Funds identified in the
Fund
Summaries
section.
Performance
of a Fund will vary
– Performance is affected by changes in the economy and financial markets. The
value of a Fund changes as its asset values go up or down. The value of your
shares will fluctuate, and when redeemed, may be worth more or less than the
original cost. The timing of your investment may also affect
performance.
•Active
Management Risk:
A portfolio manager’s judgments about the potential value or price appreciation
of an investment may prove to be incorrect or fail to have the intended results,
which could negatively impact a Fund’s performance and cause it to underperform
relative to other funds with similar investment goals or relative to its
benchmark, or not to achieve its investment goal. A portfolio manager’s
investment strategies are also discretionary and there can be no assurance that
their investment strategies will be advantageous for a Fund. From time to time,
the activities of a portfolio manager’s firm (and/or its affiliates) may be
limited because of regulatory restrictions and/or their own internal policies or
market, liquidity or other issues which may limit the investment opportunities
for a Fund managed by such firm. Investments held for cash management or
temporary defensive investing purposes can fluctuate in value and are subject to
risk, including market
and regulatory, interest rate and
credit
risks.
Uninvested cash will be subject to the credit
risk
of the depositary institution holding the cash, in which case it is possible
that no income would be earned on the cash and yield would go down. If
significant assets are used for cash management or defensive investing purposes,
investment goals may not be met.
•Asset
Allocation Fund of Funds Risk:
As a fund of funds, a Fund is exposed to the same risks as the Underlying Funds
in which it invests in direct proportion to its allocations to those Underlying
Funds. Although the theory behind asset allocation is that diversification among
asset classes in general can help reduce volatility over the long term, this
theory assumes that asset classes do not move in tandem and that positive
returns in one asset class will help offset negative returns in another asset
class. You still may lose money if this theory proves incorrect and/or
experience price volatility. Because an Underlying Fund’s investments can change
due to market movements, the Underlying Fund Manager’s investment decisions or
other factors, the sub-adviser estimates each Underlying Fund’s investment
exposures to determine a Fund’s allocations to the Underlying Fund. As a result,
a Fund’s actual allocation to an Underlying Fund, as applicable, may deviate
from the intended allocation, which could result in the Fund’s risk/return
target not being met. Performance of and assumptions about asset classes and
Underlying Funds may also diverge from historical performance and assumptions
used to develop the allocations in light of actual market conditions. There is a
risk that you could achieve better returns by investing in an individual fund or
funds representing a single broad asset class or asset class category rather
than investing in a fund of funds. Fund shareholders also bear indirectly their
proportionate share of the expenses of the respective Underlying Fund in which
the Fund invests.
•Conflicts
of Interest Risk:
The investment adviser and sub-adviser are subject to competing interests that
have the potential to influence investment decisions for the Fund. With respect
to retaining new Managers for Underlying Funds, if an affiliate of the
investment adviser has investment advisory capabilities in investment strategies
used or to be used by an Underlying Fund, then the investment adviser may be
influenced to recommend its affiliate as Manager of that Underlying Fund. With
respect to Underlying Funds already managed by an affiliate of the investment
adviser, these competing interests may influence the investment adviser with
regard to remedial measures that it might recommend in the event such a Fund was
underperforming. For example, in the case of an underperforming Underlying Fund
managed by an affiliate of the investment adviser, the investment adviser may be
influenced to recommend the pursuit of remedial measures other than replacement
of its affiliate as a Manager of the Fund and to pursue such remedial measures
for a longer period of time than might be the case if the Underlying Fund were
managed by an unaffiliated Manager. In addition, the sub-adviser may be
influenced by its or the investment adviser’s view of the best interests of
Underlying Funds, such as a view that an Underling Fund may benefit from
additional assets or could be harmed by redemptions. The sub-adviser has adopted
a policy under which investment decisions for the Fund must be made in the best
interests of the Fund and its
shareholders,
and the sub-adviser may not take into account the interests of an Underlying
Fund and its shareholders when making investment decisions for the Fund.
PLFA
provides asset allocation advisory services to various mutual funds. Although
some of the Funds sub-advised by PLFA may have names or investment goals that
resemble other Funds managed by PLFA, they will not have the same allocation
percentages, underlying holdings or performance.
•Convertible
Securities Risk:
Convertible securities are generally subject to the risks of stocks when the
underlying stock price is high relative to the conversion price (because the
conversion feature is more valuable) and to the risks of debt securities when
the underlying stock price is low relative to the conversion price (because the
conversion feature is less valuable). Convertible securities are also generally
subject to credit
risk,
as they tend to be of lower credit quality, and interest
rate risk,
though they generally are not as sensitive to interest rate changes as
conventional debt securities. A convertible security’s value also tends to
increase and decrease with the underlying stock and typically has less potential
for gain or loss than the underlying stock.
•Credit
Risk:
An issuer or guarantor of a debt instrument might be unable or unwilling to meet
its financial obligations and might not make interest or principal payments on
an instrument when those payments are due (“default”). The risk of a default is
higher for debt instruments that are non-investment grade and lower for debt
instruments that are of higher quality. Defaults may potentially reduce a Fund’s
income or ability to recover amounts due and may reduce the value of the debt
instrument, sometimes dramatically. The credit quality of securities can change
rapidly in certain market environments, particularly during volatile markets or
periods of economic uncertainty or downturn, and the default of a single holding
could cause significant NAV deterioration. A debt security’s issuer (or a
borrower or counterparty to a repurchase agreement or reverse repurchase
agreement) may not be able to meet its financial obligations (e.g.,
may not be able to make principal and/or interest payments when they are due or
otherwise default on other financial terms) and/or may go bankrupt. This is also
sometimes described as counterparty risk.
Even
though certain securities (such as loans) may be collateralized, there is no
assurance that the liquidation of any collateral would satisfy interest and/or
principal payments due to a Fund on such securities, or that such collateral
could be easily liquidated in the event of a default. Such collateral may be
difficult to identify and/or value, and if the value of the underlying
collateral depreciates, recovery upon default may be difficult to realize. A
Fund’s debt investments (also known as debt securities, debt obligations and
debt instruments) may range in quality from those rated in the lowest category
in which it is permitted to invest to those rated in the highest category by a
rating agency, or, if unrated, determined by the Manager to be of comparable
quality. High-Quality
Debt Instruments
are those rated in one of the two highest rating categories (the highest
category for commercial paper) or if unrated, are of comparable quality as
determined by the Manager. Investment
Grade Debt Instruments
are those rated in one of the four highest rating categories or, if unrated,
deemed comparable by the Manager. Non-investment
Grade (High Yield/High Risk) Debt Instruments
(sometimes
called “junk bonds”)
are those rated lower than Baa by Moody’s, BBB by S&P or Fitch and
comparable securities. They are considered predominantly speculative and are
more likely to default with respect to the issuer’s ability to repay principal
and interest than higher rated securities. Ratings of CCC for Fitch and S&P,
or Caa for Moody’s, indicate a current vulnerability for default (“stressed”).
Ratings below those levels indicate a higher vulnerability to default
(“distressed”) or default itself. A rating of D for S&P indicates that the
security has defaulted.
Ratings
are provided by credit rating agencies which specialize in evaluating credit
risk, but there is no guarantee that a highly rated debt instrument will not
default or be downgraded. Each agency applies its own methodology in measuring
creditworthiness and uses a specific rating scale to publish its ratings
opinions. Ratings tables for three of the most commonly used Nationally
Recognized Statistical Rating Organizations (“Rating Agencies”) and each of
their categories of investment grade debt and non-investment grade debt are
described in the following table. For further information regarding ratings,
please see Appendix A
of
the Trust’s SAI.
Credit
Ratings Chart
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|
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|
Long-term
ratings |
|
Standard
& Poor’s1,3 |
Moody’s2 |
Fitch1,3 |
Investment
grade debt categories |
AAA |
Aaa |
AAA |
AA |
Aa |
AA |
A |
A |
A |
BBB |
Baa |
BBB |
Non-investment
grade debt (sometimes called “junk bonds”) categories |
BB |
Ba |
BB |
B |
B |
B |
CCC |
Caa |
CCC |
CC |
Ca |
CC |
C |
C |
C |
D |
— |
— |
Short-term
ratings |
Highest
three ratings |
A-1 |
P-1 |
F1 |
A-2 |
P-2 |
F2 |
A-3 |
P-3 |
F3 |
Other
ratings |
B |
NP |
B |
B-1 |
|
C |
B-2 |
|
RD |
B-3 |
|
D |
C |
|
|
D |
|
|
1 Long-term
ratings by Standard & Poor’s and Fitch from ‘AA’ to ‘CCC’ may be modified by
the addition of a plus (+) or minus (-) sign to show relative standing within
the major rating categories. For example, BBB- is the lowest investment grade;
BB+ is the highest non-investment grade.
2 Moody’s
adds numerical modifiers 1, 2, and 3 to each generic bond rating classification
from ‘Aa’ through ‘Caa’. The modifier 1 indicates that the obligation ranks in
the higher end of its generic rating category; the modifier 2 indicates a
mid-range ranking; and the modifier 3 indicates a ranking in the lower end of
that generic rating category. For example, Baa3 is the lowest investment grade;
Ba1 is the highest non-investment grade.
3 Short-term
ratings within the A-1 and F1 categories may be designated with a plus sign (+).
This indicates that the obligor’s capacity to meet its financial commitment on
these obligations is extremely strong.
•Currency
Risk:
Currencies and securities denominated in foreign currencies may be affected by
changes in exchange rates between those currencies and the U.S. dollar. Currency
exchange rates may be volatile and may fluctuate in response to interest rate
changes, the general economic conditions of a country, the actions of the U.S.
and foreign governments, central banks, or supranational entities such as the
International Monetary Fund, the imposition or removal of currency controls,
other political or regulatory conditions in the U.S. or abroad, speculation, or
other factors. A decline in the value of a foreign currency relative to the U.S.
dollar reduces the value in U.S. dollars of a Fund’s investments denominated in
or with exposure to that foreign currency. For Funds that may hold short
currency exposure, an appreciation in the value of the currency shorted would
incur a loss for the Fund. As a currency control, certain countries aim to fix
(or “peg” or “manage”) the exchange rates of their currencies against other
countries’ currencies (the reference currency), rather than allowing them to
fluctuate based on market forces. A pegged currency typically has a very narrow
band of fluctuation (or a completely fixed rate) against the value of its
reference currency and, as a result, may experience sudden and significant
decline in value if the reference currency also declines in value. A managed
currency establishes minimum exchange rates against its reference currency and,
as a result, is not allowed to fall below a certain level against the reference
currency but can rise above the reference currency’s value. There is no
guarantee that these currency controls will remain in place and if these
exchange rates were allowed to fluctuate based on market forces (for instance, a
currency is “de-pegged” against its reference currency), there can be large
losses as a result of exchange rates movements, which may adversely impact a
Fund’s returns. In addition, the use of foreign exchange contracts (such as
forward foreign currency contracts) to reduce foreign currency exposure can
eliminate some or all of the benefit of an increase in the value of a foreign
currency versus the U.S. dollar. Foreign currency values can decrease
significantly both in the short term and over the long term in response to these
and other conditions.
•Debt
Securities Risk:
Debt securities and other debt instruments are subject to many risks, including
but not limited to interest
rate risk and
credit
risk,
which may affect their value. Many debt securities give the issuer the right to
redeem (“call”) the security prior to maturity. If an issuer calls a security in
which a Fund has invested, the Fund may not recoup the full amount of its
initial investment in the security and may be forced to reinvest prepayment
proceeds at a time when yields on securities available in the market are lower
than the yield on the called security. The
market value of a fixed-income security may decline due to general market
conditions that are not specifically related to a particular company. The
fixed-income securities market can be susceptible to increases in volatility and
decreases in liquidity. Federal Reserve policy in response to market conditions
may adversely affect the value, volatility and liquidity of debt
securities.
•Equity
Securities Risk:
Stock markets are volatile. Equity securities tend to go up and down in value,
sometimes rapidly and unpredictably, in response to many factors, including a
company’s historical and prospective earnings, the value of its assets, general
economic conditions, interest rates, investor perceptions and market liquidity.
Income from equity securities may be reduced by changes in the dividend policies
of issuers and there is no guarantee that issuers will distribute dividends in
the future or that dividends will remain at current levels or increase over
time. Due to the complexities of markets, events in one market or sector may
adversely impact other markets or sectors.
An equity security’s market value may decline for a number of reasons that
relate to particular issuer, such as management performance, financial leverage,
reduced demand for the issuer's products or services, or as a
result
of factors that affect the issuer’s industry or market more broadly, such as
labor shortages, increased production costs, or competitive conditions within an
industry.
•ESG
Criteria Risk:
The sub-adviser’s consideration of ESG Criteria in its investment process could
cause a Fund to forgo investment opportunities available to funds not using
these criteria and underperform such funds. The sub-adviser’s determination of
what constitutes ESG Criteria and its process to evaluate the ESG Criteria may
differ from other investment advisers. Further, there can be no assurance that
the ESG Criteria utilized by the sub-adviser or any judgment exercised by the
sub-adviser will reflect the beliefs or values of any particular investor. An
independent third-party ESG data provider’s assessment of the financial
materiality of ESG factors could be inaccurate, and the provider could delay ESG
data delivery and evaluation (e.g.,
changing geo-political risks that may impact involvement in one or more excluded
activity), which may have an adverse impact on the Fund’s performance or cause
the Fund to hold a security that might be ranked low from an environmental,
social or governance perspective, or its methodology could be based on a
methodology or perspective different from another provider’s. Because the
methodologies for providers are different, if one of the third-party ESG data
providers were to be replaced, the Fund’s portfolio could look different.
Application of the ESG Criteria may also affect the Fund’s exposure to certain
sectors or types of investments and may impact the Fund’s relative investment
performance depending on whether such sectors or investments are in or out of
favor in the market. Given that the ESG Criteria is qualitative and subjective
by nature, there can be no assurance that the ESG Criteria utilized by the
sub-adviser or any judgment exercised by the sub-adviser will reflect the
beliefs or values of any particular investor. Given the subjective nature of ESG
Criteria, it is also possible that the ESG exclusions and metrics screens may
not always be effective in screening out all ESG issues that an issuer might
have. In addition, regulations and industry practices related to ESG are
evolving rapidly, and the sub-adviser’s practices may change if required to
comply with such regulations or adopt such practices.
•ETF
Risk:
Investing in an ETF will provide a Fund with exposure to the securities
comprising the index on which the ETF is based and will expose the Fund to risks
similar to those of investing directly in those securities. Shares of ETFs
typically trade on securities exchanges and may at times trade at a premium or
discount to their NAVs. If the Fund has to sell shares of an ETF when the shares
are trading at a discount, the Fund will receive a price that is less than the
ETF’s net asset value per share. In addition, an ETF may not replicate exactly
the performance of the benchmark index it seeks to track for several reasons,
including transaction costs incurred by the ETF, the temporary unavailability of
certain index securities in the secondary market or discrepancies between the
ETF and the index with respect to the weighting of securities or the number of
securities held. An investment in an ETF is an investment in another investment
company and therefore, the Fund’s shareholders will indirectly bear a
proportionate share of any fees and expenses of the ETFs in which the Fund
invests. A Fund will pay brokerage commissions in connection with the purchase
and sale of shares of ETFs.
•Financial
Sector Risk:
Financial services companies are subject to extensive governmental regulation,
which may limit both the amounts and types of loans and other financial
commitments they can make, and the interest rates and fees they can charge. The
profitability of financial services companies is largely dependent on the
availability and cost of capital funds and can fluctuate significantly when
interest rates change or as a result of increased competition. During a general
market downturn, numerous financial services companies may experience
substantial declines in the valuations of their assets, take action to raise
capital (such as the issuance of debt or equity securities), or even cease
operations. These actions may cause the securities of a financial services
company to experience dramatic declines in value. Credit losses resulting from
financial difficulties of borrowers and financial losses associated with
investment activities can negatively impact the sector.
•Floating
Rate Loan Risk:
Floating rate loans (or bank loans) are usually rated below investment grade and
thus are subject to high
yield/high risk or “junk” securities risk.
The market for floating rate loans is a private interbank resale market and thus
may be subject to irregular trading activity, wide bid/ask spreads and delayed
settlement periods, which may result in cash proceeds not being immediately
available to a Fund. As a result, a Fund that invests in floating rate loans may
be subject to greater liquidity
risk
than a Fund that does not. Funds that invest in floating rate loans take steps
to maintain adequate liquidity, such as borrowing cash under a line of credit or
other facility through their custodian bank; however, these actions may increase
expenses to a Fund (such as borrowing cost) or may not always be adequate,
particularly during periods of market stress. Investments in floating rate loans
are typically in the form of a participation or assignment. Loan participations
typically represent direct participation in a loan to a borrower, and generally
are offered by financial institutions or lending syndicates. In a loan
participation, a Fund may participate in such syndications, or buy part of a
loan, becoming a part lender. In a loan participation, a Fund assumes the credit
risk associated with the borrower and may assume the credit risk associated with
the financial intermediary that syndicated the loan. If the lead lender in a
typical lending syndicate becomes insolvent, enters Federal Deposit Insurance
Corporation (“FDIC”) receivership or, if not FDIC insured, enters into
bankruptcy, a Fund may incur certain costs and delays in receiving payment or
may suffer a loss of principal and/or interest. In addition, a Fund may not be
able to control the exercise of remedies that the lender would have under the
loan and likely would not have any rights against the borrower directly. In
purchasing an assignment, a Fund succeeds to all the rights and obligations
under the loan agreement of the assigning bank or other financial intermediary
and becomes a lender under the loan agreement with the same rights and
obligations as the assigning bank or other financial intermediary. Accordingly,
if the loan is foreclosed, a Fund could become part owner of any collateral, and
would bear the costs and liabilities associated with owning and disposing of the
collateral.
Floating
rate loans are also subject to prepayment risk. Borrowers may pay off their
loans sooner than expected, particularly when interest rates are falling. A Fund
investing in such securities will be required to reinvest this money at lower
yields, which can reduce its returns. Similarly, debt obligations with call
features have the risk that an issuer will exercise the right to pay an
obligation (such as a mortgage-backed security) earlier than expected.
Prepayment and call risk typically occur when interest rates are
declining.
In
addition, the floating rate feature of loans means that floating rate loans will
not generally experience capital appreciation in a declining interest rate
environment. Conversely, when interest rates are rising, the duration of such
securities tends to extend, making them more sensitive to changes in interest
rates (extension risk), although floating rate debt securities are typically
less exposed to this risk than fixed rate debt securities.
Floating
rate loans generally are subject to restrictions on transfer and may be
difficult to sell at a time when the Manager seeks to sell the loan or may only
be sold at prices that are less than their fair market value. Fair market value
may be difficult to establish for loans. A loan may not be fully collateralized
and can decline significantly in value. In addition, access to collateral
backing the loan
may
be limited by bankruptcy or other insolvency laws. Loans made to finance highly
leveraged corporate acquisitions may be especially vulnerable to adverse changes
in economic or market conditions.
A
loan may also be in the form of a bridge loan, which is designed to provide
temporary or “bridge” financing to a borrower, pending the sale of identified
assets or the arrangement of longer-term loans or the issuance and sale of debt
obligations. A bridge loan involves a risk that the borrowers may be unable to
locate permanent financing to replace the bridge loan, which may impair the
borrower’s perceived creditworthiness.
A
loan may be a senior loan or a junior loan. Senior loans typically provide
lenders with a first right to cash flows or proceeds from the sale of a
borrower’s collateral if the borrower becomes insolvent (subject to certain
limitations of bankruptcy law). However, there can be no assurance that
liquidation of such collateral would satisfy the borrower’s obligation in the
event of a default or that such collateral could be readily liquidated. In
addition, senior loans are subject to the risk that a court could subordinate
such senior loans to presently existing or future indebtedness of the borrower
or take other action detrimental to the holders of senior loans including, in
certain circumstances, invalidating such senior loans or causing interest
previously paid to be refunded to the borrower. Any such actions could
negatively affect a Fund’s performance. To the extent a Fund invests in junior
loans, these loans involve a higher degree of overall risk than senior loans of
the same borrower because of their lower place in the borrower’s capital
structure and possible unsecured status.
A
significant portion of the floating rate loans held by a Fund may be “covenant
lite” loans that contain fewer or less restrictive constraints on the borrower
or other borrower-friendly characteristics and offer less protections for
investors than covenant loans.
Although
the overall size and number of participants in the market for floating rate
loans (or bank loans) has grown over the past decade, floating rate loans
continue to trade in an unregulated inter-dealer or inter-bank secondary market.
Purchases and sales of floating rate loans are generally subject to contractual
restrictions that must be satisfied before a floating rate loan can be bought or
sold. These restrictions may impede a Fund’s ability to buy or sell floating
rate loans, negatively impact the transaction price, and impede a Fund’s ability
to timely vote or otherwise act with respect to floating rate loans. As a
result, it may take longer than seven days for transactions in floating rate
loans to settle, which make it more difficult for a Fund to raise cash to pay
investors when they redeem their shares in the Fund. A Fund may then have to
sell its floating rate loans or other investments at an unfavorable time and/or
under unfavorable conditions, hold cash, temporarily borrow from banks or other
lenders, or take other actions to meet short-term liquidity needs in order to
satisfy redemption requests from Fund shareholders and may be adversely
impacted. These actions may impact a Fund’s performance (in the case of holding
cash or selling securities) or increase a Fund’s expenses (in the case of
borrowing).
It
is also unclear whether the U.S. federal securities laws, which afford certain
protections against fraud and misrepresentation in connection with the offering
or sale of a security, as well as against manipulation of trading markets for
securities, would be available to a Fund’s investments in a loan. This is
because a loan may not be deemed to be a security in certain circumstances. In
these instances, the Fund may need to rely on contractual provisions in the loan
documents for some protections and also avail itself of common law fraud
protections under applicable state law, which could increase the risk and
expense to the Fund of investing in loans. In addition, holders of such loans
may from time to time receive confidential information about the borrower. In
certain circumstances, this confidential information may be considered material
non-public information. Because U.S. laws and regulations generally prohibit
trading in securities of issuers while in possession of material, non-public
information, a Fund that receives confidential information about a borrower for
loan investments might be unable to trade securities or other instruments issued
by the borrower when it would otherwise be advantageous to do so and, as such,
could incur a loss. For this reason, a Fund or its Manager may determine not to
receive confidential information about a borrower for loan investments, which
may disadvantage the Fund relative to other investors who do receive such
information.
•Foreign
Investment Risk.
Investments in foreign securities are affected by risk factors generally not
thought to be present in the United States. The prices of foreign securities may
be more volatile than the prices of securities of U.S. issuers because of
economic and social conditions, political developments, and changes in the
regulatory environments of foreign markets. Special risks associated with
investments in foreign markets include less liquidity, less developed or less
efficient trading markets, lack of comprehensive company information, less
government supervision of exchanges, brokers and issuers, greater risks
associated with counterparties and settlement, and difficulty in enforcing
contractual obligations. Changes in exchange rates and interest rates, and the
imposition of foreign taxes, sanctions, confiscations, trade restrictions
(including tariffs) and other government restrictions by the United States
and/or other governments may adversely affect the values of a Fund’s foreign
investments. Foreign companies are generally subject to different legal and
accounting standards than U.S. companies, and foreign financial intermediaries
may be subject to less supervision and regulation than U.S. financial firms. A
Fund’s investments in depository receipts (including ADRs) are subject to these
risks, even if denominated in U.S. Dollars, because changes in currency and
exchange rates affect the values of the issuers of depository receipts. In
addition, the underlying issuers of certain depository receipts, particularly
unsponsored or unregistered depository receipts, are under no obligation to
distribute shareholder communications to the holders of such receipts, or to
pass through to them any voting rights with respect to the deposited securities.
Many of the risks with respect to foreign investments are more pronounced for
investments in developing or emerging market countries. Emerging markets tend to
be more volatile than the markets of more mature economies and generally have
less diverse and less mature economic structures and less stable political
systems than those of developed countries.
•Foreign
Markets Risk:
Investments in securities of foreign issuers and securities of companies with
significant foreign exposure, including securities denominated in foreign
currencies, can involve additional risks relating to market, economic,
political, regulatory, geopolitical, or other conditions of the relevant foreign
market. Political, social, and economic instability, the impact of economic
sanctions, the imposition of currency or capital controls, or the expropriation
or nationalization of assets in a particular country can cause dramatic declines
in a country’s economy. Less stringent regulatory, accounting, and disclosure
requirements and general supervision for issuers and markets are more common in
certain foreign countries. Foreign countries may also have different auditing
standards than the U.S. Enforcing legal rights can be difficult, costly, and
slow in certain foreign countries, and can be particularly difficult against
foreign governments. If the United States imposes economic sanctions against a
foreign government or issuers, a Fund’s investments in issuers subject to such
sanctions may be frozen, prohibiting the Fund from selling or otherwise
transacting in these investments, and a Fund may be prohibited from investing in
such issuers or may be required to divest its
holdings
in such issuers, which may result in losses to the Fund. Additional risks of
foreign investments include trading, settlement, custodial, and other
operational risks, and withholding and other taxes. These factors can make
investments more volatile and less liquid than U.S. investments. In addition,
foreign markets can react differently to market, economic, political,
regulatory, geopolitical, or other conditions than the U.S. market. Markets and
economies throughout the world are becoming increasingly interconnected, and
conditions or events in one market, country or region may adversely impact
investments or issuers in, or foreign exchange rates with, another market,
country or region. Depositary receipts, including American Depositary Receipts
(“ADRs”), European Depositary Receipts (“EDRs”), Global Depositary Receipts
(“GDRs”) and similar securities that represent interests in a foreign (non-U.S.)
company’s securities that have been deposited with a bank or trust and that
trade on a U.S. exchange or over-the-counter are subject to the same risks of
investments in emerging market countries described above. In addition, these
securities may be less liquid or may trade at a lower price than the underlying
securities of the issuer. The underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, may not have any
obligation to distribute shareholder communications to the holders of such
receipts, or to pass through to them any voting rights with respect to the
deposited securities.
Among
the foreign markets in which a Fund may invest are those countries that are
members of the European Union (“EU”). Some of the countries of the EU are
currently experiencing financial difficulties and have depended on, and may
continue to be dependent on, the assistance from others such as the European
Central
Bank
or other governments or institutions. The failure of such countries to implement
reforms as a condition of assistance could have a significant adverse effect on
the value of investments in those countries and other countries within this
“Eurozone.” In addition, certain EU countries that have adopted the euro are
subject to fiscal and monetary controls that could limit the ability to
implement their own economic policies, to the point where such countries could
voluntarily abandon, or be forced out of, the euro. These events could globally
impact the market values of securities and currencies, cause redenomination into
less valuable local currencies and create more volatile and illiquid markets.
The United Kingdom’s departure from the EU, commonly known as “Brexit,” may have
significant political and financial consequences for EU markets. There
are considerable uncertainties about the repercussions resulting from Brexit,
including the impact on trade agreements, regulations, and treaties. Brexit may
also increase the likelihood that other EU members may decide to leave or be
expelled from the EU. These potential consequences may result in increased
market volatility and illiquidity in the United Kingdom, the EU, and other
financial markets, as well as slower economic growth and fluctuations in
exchange rates. Any of these events and other socio-political or geo-political
issues that are not currently known could have a significant adverse effect on
global markets and economies, which in turn could negatively impact the value of
a Fund’s investments.
•Geographic
Focus Risk:
If a Fund invests a significant portion of its assets in a single country,
limited number of countries, or particular geographic region, then the risk
increases that economic, political, social, or other conditions in those
countries or that region will have a significant impact on the Fund’s
performance. As a result, the Fund’s performance may be more volatile than the
performance of more geographically diversified funds.
•Growth
Companies Risk:
Growth companies are those that a portfolio manager believes have the potential
for above average or rapid growth but may be subject to greater price
volatility
than
“undervalued” companies, for example. A smaller company with a promising product
and/or operating in a dynamic field may have greater potential for rapid
earnings growth than a larger one. Additionally, many companies in certain
market sectors like health care and technology are faster-growing companies with
limited operating histories and greater business risks, and their potential
profitability may be dependent on regulatory approval of their products or
developments affecting those sectors, which increases the volatility of these
companies’ securities prices and could have an adverse impact upon the
companies’ future growth and profitability.
•High
Yield/High Risk or “Junk” Securities Risk:
High yield/high risk securities are typically issued by companies or governments
that are highly leveraged, less creditworthy, or financially distressed and are
considered to be mostly speculative in nature (high risk), subject to greater
liquidity
risk
due to fewer market participants (buyers/sellers of these assets) and less
capital available to market makers (broker-dealers) as compared to higher rated
securities, and subject to a greater risk of default than higher rated
securities. High yield/high risk securities (including loans) may be more
volatile than investment grade securities. Non-investment grade debt instruments
may include securities that are stressed, distressed or in default and are
subject to credit
risk.
•Index
Sampling Risk:
Because index sampling relies on the securities selected to have economic
characteristics similar to securities in the fund’s benchmark index, it may not
result in the aggregate in investment performance matching that of that fund’s
benchmark index or of other funds that purchased all or substantially all of the
securities in the same index in approximately the same proportions as their
weightings in the index.
•Information
Technology Sector Risk:
Information Technology companies face several risks, including operating in
rapidly changing fields, abrupt or erratic market movements, limited product
lines, markets or financial resources, management that is dependent on a limited
number of people, short product cycles, aggressive pricing of products and
services, new market entrants, government regulation and patent and intellectual
property rights and rapid obsolescence of products and services due to
information technological innovations or changing consumer preferences. Stocks
of information technology companies and companies that rely heavily on
technology, especially those of smaller, less-seasoned companies, tend to be
more volatile than the overall market. Information technology companies are
heavily dependent on patent and intellectual property rights, the loss or
impairment of which may adversely affect profitability. Additionally, companies
in the technology sector may face dramatic and often unpredictable changes in
growth rates and competition for the services of qualified personnel. In
addition, many U.S. technology companies have diverse operations, with products
or services in foreign markets, exposing them to foreign markets
risk.
•Interest
Rate Risk:
The value of debt instruments may fall when interest rates rise. Debt
instruments with longer durations tend to be more sensitive to changes in
interest rates, making them more volatile than debt instruments with shorter
durations or floating or adjustable (also known as variable) interest rates.
Many factors can cause interest rates to rise, such as central bank monetary
policies, inflation rates, general economic conditions, and expectations about
the foregoing. In addition, as interest rates rise, the value of fixed income
investments will generally decrease. The negative impact on debt instruments
from interest rate increases could be swift and significant, including falling
market values, increased redemptions and reduced liquidity. Substantial
redemptions from bond and other income funds may worsen that impact.
Additionally, regulations applicable to and changing business practices of
broker-dealers that make markets in debt instruments may result in those
broker-dealers restricting their market making activities for certain debt
instruments, which may reduce the liquidity and increase the volatility of such
debt instruments. Certain countries
have
experienced negative interest rates on certain debt securities. Negative or very
low interest rates could magnify the risks associated with changes in interest
rates. In general, changing interest rates, including rates that fall below
zero, could have unpredictable effects on markets and may expose debt and
related markets to heightened volatility. During periods when interest rates are
low or there are negative interest rates, a Fund’s yield (and total return) also
may be low, and the Fund may experience low or negative returns. A Fund may be
subject to heightened levels of interest rate risk because the Federal Reserve
has raised, and may continue to raise, interest rates. Floating or
adjustable-rate instruments (such as most loans) typically have less exposure to
interest rate fluctuations and their exposure to interest rate fluctuations will
generally be limited to the period of time until the interest rate on the
security is reset. There is a risk of lag in the adjustment of interest rates
between the periods when these interest rates are reset. An interest rate reset
may not completely offset changes in interest rates. Resets that may be tied to
an index may not reflect the prevailing interest rate changes. There is a risk
of a lag between interest rate and index changes.
•Large-Capitalization
Companies Risk:
Large-capitalization companies tend to have more stable prices than small- or
mid-capitalization companies but are still subject to equity
securities risk.
Large-capitalization equity security prices may not rise as much as prices of
equity securities of small-capitalization companies.
•Leverage
Risk:
A Fund’s investment in forward commitments, futures contracts, options, or swap
agreements, including taking short positions using certain derivatives, as a
principal investment strategy gives rise to a form of leverage. Leverage is
investment exposure that exceeds the initial amount invested. The loss on a
leveraged investment may far exceed a Fund’s principal amount invested. Leverage
can magnify a Fund’s gains and losses and therefore increase its volatility.
There is no guarantee that a Fund will use leverage, or when it does, that a
Fund’s leveraging strategy will be successful or produce a high return on an
investment.
•LIBOR
Transition Risk:
Certain investments in which the Fund invests rely in some manner on the London
Interbank Offered Rate (“LIBOR”). LIBOR was intended to represent the rate at
which contributing banks may obtain short-term borrowings from each other in the
London interbank market as determined by ICE Benchmark Administration (“IBA”),
the administrator of LIBOR. Previously, the Financial Conduct Authority (“FCA”),
which regulates financial markets and financial services firms in the United
Kingdom, announced that it would no longer compel the banks to continue to
submit the daily rates for the calculation of LIBOR after 2021. The IBA ceased
publication of most LIBOR settings on a representative basis at the end of 2021
and ceased publication of a majority of U.S. dollar LIBOR settings on a
representative basis on June 30, 2023. In addition, global regulators previously
announced that, with limited exceptions, no new LIBOR-based contracts should be
entered into after 2021. Actions by regulators have resulted in the
establishment of alternative reference rates to LIBOR in most major currencies.
On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act was signed into law
in the U.S, and regulations implementing the law became effective on February
27, 2023. This law provides a statutory fallback mechanism on a nationwide basis
to replace LIBOR with a benchmark rate that is selected by the Board of
Governors of the Federal Reserve System and based on the Secured Overnight
Financing Rate (which measures the cost of overnight borrowings through
repurchase agreement transactions collateralized with U.S. Treasury securities)
for certain contracts that reference LIBOR and contain no, or insufficient,
fallback provisions.
Although
the transition process away from LIBOR has become increasingly well-defined,
there remains uncertainty regarding the transition to, and nature of, any
selected replacement rates, as well as the impact on investments that utilized
LIBOR. There is no assurance that the composition or characteristics of any such
alternative reference rate will be similar to or produce the same value or
economic equivalence as LIBOR or that it will have the same volume or liquidity
as did LIBOR prior to its discontinuance or unavailability, which may affect the
value or liquidity or return on certain of the Fund’s investments and result in
costs incurred in connection with closing out positions that reference LIBOR and
entering into new trades referencing alternative rates. The transition process
away from LIBOR may result in increased volatility or illiquidity in markets for
the Fund’s investments that relied on LIBOR as well as a reduction in the value
of these investments. The potential risk of reduction in value of these
investments may be heightened for those investments that do not include fallback
provisions that address the cessation of LIBOR.
Alteration
of the terms of a debt instrument or a modification of the terms of other types
of contracts to replace LIBOR or another interbank offered rate (“IBOR”) with a
new reference rate could result in a taxable exchange and the realization of
income and gain/loss for U.S. federal income tax purposes. The IRS has issued
final regulations regarding the tax consequences of the transition from IBOR to
a new reference rate in debt instruments and non-debt contracts. Under the final
regulations, alteration or modification of the terms of a debt instrument to
replace an operative rate that uses a discontinued IBOR with a qualified rate
(as defined in the final regulations) including true up payments equalizing the
fair market value of contracts before and after such IBOR transition, to add a
qualified rate as a fallback rate to a contract whose operative rate uses a
discontinued IBOR or to replace a fallback rate that uses a discontinued IBOR
with a qualified rate would not be taxable. The IRS may provide additional
guidance, with potential retroactive effect.
•Liquidity
Risk:
Generally, a security or investment is considered illiquid if it is not
reasonably expected to be sold or disposed of in current market conditions
within seven calendar days or less without the sale or disposition significantly
changing the market value of the security. Certain holdings may be difficult to
purchase, sell and value, particularly during adverse market conditions, because
there is a limited market for the investment or there are restrictions on
resale. A Fund may not be able to sell a holding quickly at the price it has
valued the holding, may be unable to take advantage of market opportunities or
may be forced to sell other more desirable, more liquid securities or sell less
liquid or illiquid securities at a loss if needed to raise cash to conduct
operations, including to meet redemption requests. Liquid investments may become
less liquid or illiquid, and thus more difficult to sell, over time or suddenly
and unexpectedly. This may occur, for example, as a result of adverse market or
economic conditions (including financial distress, or geopolitical events such
as sanctions, trading halts or wars) or investor perceptions, which may be
independent of any adverse changes to the particular issuer. Less liquidity also
means that more subjectivity may be used in establishing the value of the
securities or other investments. For example, if market quotations are not
readily available or reliable for these investments, the securities or other
investments will be valued by a method that reflects fair value. Valuations
determined in this manner may require subjective inputs about the value of these
investments. Some securities (such as loans) may have no active trading market
and may be subject to restrictions on resale. The markets in which such
securities trade may be subject to irregular trading, wide bid/ask spreads and
extended trade settlement periods, which may impair a Fund’s ability to sell the
holding at the price it has valued the holding causing a decline in the Fund’s
NAV. Investments in companies in turn-around, distress or other similar
situations may be or become less liquid than other investments, particularly
when the economy is not robust or during market downturns. Reduced liquidity
resulting from these situations may impede a Fund’s ability to meet unusually
high or unanticipated levels of redemption
requests.
Each Fund may borrow money to the extent permitted under the 1940 Act to meet
redemption requests by Fund shareholders; however, these actions may increase
the expenses for a Fund (such as borrowing cost) or may not always be adequate,
particularly during periods of market stress. Please see the discussion of
Other
Expenses
under the Additional
Information about Fees and Expenses
section in this Prospectus.
•Mid-Capitalization
Companies Risk:
Mid-capitalization companies may be subject to greater price volatility and may
be more vulnerable to economic, market and industry changes than larger, more
established companies. Mid-capitalization (also known as “medium
capitalization”) companies may have a shorter history of operations, more
limited ability to raise capital, inexperienced management, limited product
lines, less capital reserves and liquidity and more speculative prospects for
future growth, sustained earnings or market share than larger companies, and are
therefore more sensitive to economic, market and industry changes. It may be
difficult to sell a mid-capitalization position at an acceptable time and price
because of the potentially less frequent trading of stocks of mid-capitalization
companies.
•Mortgage-Related
and Other Asset-Backed Securities Risk:
Mortgage-related and other asset-backed securities are subject to certain risks.
The value of these securities will be influenced by the factors affecting the
housing market or the market for the assets underlying such securities. As a
result, during periods of declining asset value, difficult or frozen credit
markets, swings in interest rates, or deteriorating economic conditions, these
securities may decline in value, become difficult to value, become more volatile
and/or become illiquid.
oExtension
Risk –
Generally, rising interest rates tend to extend the duration of fixed rate
mortgage-backed or other asset-backed securities, making them more sensitive to
changes in interest rates and making any Fund holding such securities more
volatile. This is because when interest rates rise, the issuer of a security
held by a Fund may make principal payments on that security on a delayed basis.
Such delayed principal payments decrease the value of the security. In addition,
as payments are received later than agreed upon, a Fund may miss or postpone the
opportunity to reinvest in higher yielding investments.
oInterest
Rate Risk –
When interest rates rise, borrowers with variable interest rate loans may not be
able to repay their loans at the higher interest rates. This could cause an
increase in defaults and decrease the value of certain mortgage-related or other
asset-backed securities.
oSubprime
Risk –
Mortgage-related securities may have exposure to subprime loans and subprime
mortgages, which are loans or mortgages made to borrowers with lower credit
ratings. An unexpectedly high rate of defaults on the mortgages held by a
mortgage pool may adversely affect the value of a mortgage-backed security. The
risk of such defaults is generally higher in the case of mortgage pools that
include subprime mortgages. In addition, holdings in non-investment grade (high
yield/high risk) asset-backed securities, including mortgage pools with exposure
to subprime loans or mortgages, have a greater risk of being or becoming less
liquid than other debt securities, especially when the economy is not robust,
during market downturns, or when credit is tight. Other asset-backed securities
may also be subject to exposure resulting from loans to borrowers with lower
credit ratings, who pose a higher level of default risk.
oPrepayment
Risk –
In addition, adjustable and fixed rate mortgage-related or other asset-backed
securities are subject to prepayment risk. When interest rates decline,
borrowers may pay off their mortgages (or other debt obligations) sooner than
expected. This can reduce a Fund’s returns because it may have to reinvest that
money at the lower prevailing interest rates.
oCall
Risk –
Similarly, debt obligations with call features have the risk that an issuer will
exercise the right to pay an obligation (such as a mortgage-backed security)
earlier than expected. This call risk typically occurs when interest rates are
declining.
o
U.S. Government Securities Risk –
Mortgage-backed securities may be issued by the U.S. government, which are
subject to U.S.
government securities risk.
oIssuer
Risk –
Mortgage-backed securities offered by non-governmental issuers, such as
commercial banks, savings and loan institutions, private mortgage insurance
companies, mortgage bankers and other secondary market issuers are subject to
additional risks. Timely payment of interest and principal of non-governmental
issuers is supported by various forms of private insurance or guarantees,
including individual loan, title, pool and hazard insurance purchased by the
issuer, and there can be no assurance that these private insurers can meet their
obligations under the policies.
oStripped
Mortgage-Related Securities Risk –
Stripped mortgage-related securities can be particularly sensitive to changes in
interest rates. Stripped mortgage-related securities are made up of Interest
Only (“IO”) and Principal Only (“PO”) components. IOs present a heightened risk
of total loss of investment.
In
addition, for Aristotle ESG Core Bond Fund, current ESG metrics used by the
sub-adviser are limited for mortgage-related and asset-backed securities as ESG
metrics are available only for the corporate issuer of those securities and not
for each underlying individual security. This results in the evaluation of ESG
considerations for the corporate issuer of a pool of mortgage-related securities
and asset-backed securities at the corporate issuer level but not the underlying
securities that constitute the pool.
•Non-Diversification
Risk:
A “non-diversified” mutual fund may hold a smaller number of portfolio
securities than many other funds. To the extent a non-diversified fund invests
in a relatively small number of issuers, a decline in the market value of a
particular security held by the fund may affect its value more than if it
invested in a larger number of issuers. The value of the fund’s shares may be
more volatile than the values of shares of more diversified funds.
•Passive
Management Risk:
A passively managed (or index) fund generally holds constituent securities of
its benchmark index regardless of performance, which could cause the index
fund’s return to be lower than an actively managed fund (which generally seeks
to outperform a benchmark index). Such fund will also perform poorly when the
index performs poorly. In addition, an index fund has operating and other
expenses while an index does not. As such, an index fund will tend to
underperform the index to some degree over time even though it will attempt to
track its index as closely as possible.
•Preferred
Stock Risk:
Preferred stock represents an equity interest in a company that generally
entitles the holder to receive, in preference to the holders of other stocks
such as common stock, dividends and a fixed share of the proceeds resulting from
a liquidation of the company. The market value of preferred stock is subject to
company-specific and market risks applicable generally to equity securities and
is also sensitive to changes in the company’s creditworthiness, the ability of
the company to make payments on the preferred stock, and changes in interest
rates, typically declining in value if interest rates rise. Convertible
preferred stock allows the holder to convert the preferred shares into a fixed
number of common shares, usually after a predetermined date. Like preferred
stock, convertible preferred stock generally pays a dividend at a specified rate
and has preference over common stock in the payment of dividends but ranks
behind bonds, including convertible bonds, in priority upon
liquidation.
•Small-Capitalization
Companies Risk:
Small-capitalization companies may be more susceptible to liquidity
risk
and price volatility and be more vulnerable to economic, market and industry
changes than larger, more established companies. Small-capitalization companies
may have fewer financial resources, limited product and market diversification,
greater potential for volatility in earnings and business prospects, and greater
dependency on a few key managers. Small-capitalization companies, particularly
those in their developmental stages, may have a shorter history of operations,
more limited ability to raise capital, inexperienced management, and more
speculative prospects for future growth or sustained earnings or market share
than larger companies. In addition, these companies may be more susceptible to
the underperformance of a sector in which it belongs and therefore, may be
riskier and more susceptible to price changes. It may be difficult or impossible
to liquidate a small-capitalization position at an acceptable time and price
because of the potentially less frequent trading of stocks of smaller market
capitalizations.
•Underlying
Fund Risk:
Because a Fund is available for investment by the Portfolio Optimization Funds
and thus may have a significant percentage of its outstanding shares held by a
Portfolio Optimization Fund, a change in asset allocation by a Portfolio
Optimization Fund could result in large redemptions out of a Fund, causing the
sale of securities in a short timeframe and potential increases in expenses to a
Fund and its remaining shareholders, both of which could negatively impact
performance.
•U.S.
Government Securities Risk:
Not all U.S. government securities are backed or guaranteed by the U.S.
government and different U.S. government securities are subject to varying
degrees of credit
risk.
There is a risk that the U.S. government will not make timely payments on its
debt or provide financial support to U.S. government agencies,
instrumentalities, or sponsored enterprises if those entities are not able to
meet their financial obligations. Some U.S. government securities are supported
only by the credit of the issuing agency, which depends entirely on its own
resources to repay the debt. Although there are many types of U.S. government
securities, such as those issued by the Federal National Mortgage Association
(“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”) and
Federal Home Loan Banks that may be chartered or sponsored by Acts of Congress,
their securities are neither issued nor guaranteed by the U.S. Treasury and,
therefore, are not backed by the full faith and credit of the United States. The
maximum potential liability of the issuers of some U.S. government securities
may greatly exceed their current resources, including their legal right to
support from the U.S. Treasury. It is possible that these issuers will not have
the funds to meet their payment obligations in the future. Pursuant to the
authorities of the U.S. Treasury Department and the Federal Housing Finance
Administration (“FHFA”), Fannie Mae and Freddie Mac have been in a
conservatorship under FHFA since September 2008. Should Fannie Mae and Freddie
Mac exit the conservatorship, the effect this will have on the entities’ debt
and equities, and on securities guaranteed by the entities, is unclear.
•Value
Companies Risk:
Value companies are those that a portfolio manager believes are undervalued and
trading for less than their intrinsic values. There is a risk that the
determination that a stock is undervalued is not correct or is not recognized in
the market. These companies may be subject to lower price volatility
than
companies considered to be “growth” companies. In value investing, the principal
belief is that the market overreacts to good and bad news, resulting in stock
price movements that do not correspond with a company’s long-term fundamentals.
In that case, the result is an opportunity for value investors to profit by
buying when the price is deflated. However, the intrinsic value of a company is
subjective, meaning there is no empirically “correct” intrinsic value. A
portfolio manager’s processes for determining value will vary. There is a risk
that a portfolio manager’s determination that a stock is undervalued is not
correct or is not recognized in the market.
•Warrants
and Rights Risk:
Warrants and rights may lack a liquid secondary market for resale. The prices of
warrants and rights may fluctuate as a result of speculation or other factors.
Warrants and rights can provide a greater potential for profit or loss than an
equivalent investment in the underlying security. Prices of warrants and rights
do not necessarily move in tandem with the prices of their underlying securities
and therefore are highly volatile and speculative investments. If a warrant or
right expires without being exercised, the Fund will lose any amount paid for
the warrant or right.
Additional
Information About Certain Ancillary Risks
The
following provides information about certain ancillary risks of the Funds. While
the likelihood of these risks adversely affecting the Funds’ NAV, yield and/or
total return under normal circumstances is lower than the Funds’ principal
risks, they could nevertheless negatively impact Fund performance should the
situations described below materialize.
•Active
and Frequent Trading Risk:
All Funds may engage in active and frequent trading which could result in higher
levels of current tax liability to shareholders in the Fund. For Funds that
operate as funds of funds, purchases and sales of Underlying Fund shares may
increase and therefore taxes may be higher for these Funds’ shareholders when a
Fund is rebalanced or changes asset allocations, when Underlying Funds undergo
Manager changes, including adding a co-manager, or when Underlying Funds are
established or liquidated, particularly if a large number of Underlying Fund
shares are bought or sold and there are capital gains
realized
as a result of the transactions (assuming no offset by any realized capital
losses). For Funds that do not operate as funds of funds, including Underlying
Funds, active and frequent trading can result in higher trading costs as
well.
•Cybersecurity
Risk:
The Funds’ and/or their service providers’ use of the internet, technology and
information systems may expose the Funds to risks associated with attack,
damage, or unauthorized access. Such risks may include the theft, loss, ransom,
misuse, improper release, corruption and/or destruction of, manipulation of, or
unauthorized access to, confidential or restricted data relating to the Funds or
Fund shareholders, and the compromise, delay or failure of systems, networks,
devices and applications relating to Fund operations, such as systems used to
enter trades for the Funds’ investments, accounting and valuation systems, or
compliance testing systems used to monitor the Funds’ investments. These events
could result in losses to the Funds and Fund shareholders and disrupt the Funds’
day-to-day operations and the portfolio management of the Funds, as well as
damage the conduct of business among the Funds, Fund shareholders, the Funds’
service providers and/or financial intermediaries. While measures have been
developed that are designed to reduce cybersecurity risks and to mitigate or
lessen resulting damages, there is no guarantee that those measures will be
effective, particularly because the Funds do not directly control the
cybersecurity defenses or plans of their service providers, financial
intermediaries, and other parties with which the Funds transact.
•Derivatives
Risk:
A Fund’s use of forward commitments, futures contracts, options or swap
agreements (types of derivative instruments) as a principal investment strategy
subjects the Fund to several risks, including: counterparty risk, leverage risk,
market risk, regulatory risk, liquidity and valuation risk, operational risk,
correlation risk, legal risk and premium risk. These risks are different from,
and may be greater than, the risks involved if the Fund were to invest directly
in the asset (e.g.,
a security, currency or index) underlying the derivative (the underlying
Reference asset). The use of these instruments may, in some cases, cause a Fund
to realize higher amounts of short-term capital gains and ordinary income
(generally taxed at ordinary income tax rates) than if the Fund had not engaged
in such transactions.
oCounterparty
Risk
– Derivative transactions that are privately negotiated in the
“over-the-counter” market, such as forward commitments and most swap agreements,
involve the risk that the party with whom the Fund has entered into the
transaction (the counterparty) will be unable to fulfill its obligation to pay
the Fund and the risk that the Fund will not be able to meet its obligations to
pay the counterparty. Because these instruments are privately negotiated, unlike
exchange-traded contracts, they are subject to a greater risk of default or
bankruptcy by a counterparty, which could result in adverse market impact,
expenses or delays in connection with the purchase or sale of the underlying
Reference asset. For derivatives traded on an exchange or through a central
clearinghouse, such as futures contracts and most options, counterparty risk is
still present with the Fund’s clearing broker, or the clearinghouse
itself.
oLeverage
Risk
– A forward commitment, futures contract, option or swap agreement provides
exposure to potential gain or loss from a change in the level of the market
price of the underlying Reference asset (such as a security, currency, index or
basket of securities) in a notional amount that exceeds the amount of cash or
assets required to establish or maintain the Fund’s position. The use of
leverage could result in increased return but also creates the possibility for
greater loss on the investment (including larger swings in value for the Fund).
In some instances, the loss can exceed the net assets of the Fund.
oMarket
Risk
– Market risk generally refers to risk from potential adverse market movements
in relation to a Fund’s derivatives positions, or the risk that markets could
experience a change in volatility that adversely impacts Fund returns. Price
volatility of an investment refers to the variation of changes in that
investment’s value over time as a result of market movements. Thus, an
investment with higher price volatility is likely to have greater price swings
over shorter time periods than an investment with lower price volatility, and a
Fund that invests in more volatile investments may see its value also go up or
down rapidly or unpredictably. Price volatility can be caused by many factors,
including changes in the economy or financial markets or for reasons specific to
a particular issuer. Adverse changes in the value or level of the underlying
Reference asset, which the Fund may not directly own, can result in a loss to
the Fund substantially greater than the amount invested in the derivative
itself. In addition, changes in the value of a derivative may be more sensitive
to market factors than, the underlying Reference asset so that the Fund may lose
more than the initial amount invested. Market risk may also impact a Fund’s
obligations and exposures.
oRegulatory
Risk
– Governmental and regulatory actions relating to a mutual fund’s use of
derivatives (such as forward commitments, futures contracts, options, and swap
agreements) and related instruments, including tax law changes, may limit a
Fund’s ability to invest or remain invested in derivatives, increase the costs
of the Fund’s derivatives transactions and/or adversely affect the value of
derivatives and the Fund’s performance. Effective August 19, 2022, the Funds
will be subject to the requirements of new Rule 18f-4 under the 1940 Act
regarding the use of derivatives, including the adoption of a derivatives risk
management program for certain derivatives users as well as policies and
procedures to implement the requirements of the rule.
oLiquidity
and Valuation Risk
– Where an active secondary market for an over-the-counter derivative instrument
(such as forward commitments, options, and most swap agreements) is lacking, a
Fund may be unable to exercise, sell or otherwise close its position in the
instrument, which could expose the Fund to losses and make the position more
difficult for the Fund to value accurately. In these circumstances, a Fund may
be unable to take advantage of market opportunities or may be forced to sell
other more desirable, more liquid securities or sell less liquid or illiquid
securities at a loss if needed to raise cash to conduct operations, including to
meet redemption requests. Less liquidity also means that more subjectivity may
be used in establishing the value of the position. For example, if market
quotations are not readily available or reliable for these investments, the
investments will be valued by a method that reflects fair value. Valuations
determined in this manner may require subjective inputs about the value of these
investments.
oOperational
Risk –
A Fund that engages in derivatives transactions will be subject to risks related
to potential operational issues, including documentation issues, settlement
issues, systems failures, inadequate controls, and human error (including manual
processes).
oCorrelation
Risk
– The value of a forward commitment, futures contract, option, or swap agreement
may not correlate precisely with the value of its respective underlying
Reference asset, and the Fund could therefore lose more than it invested.
When
used for hedging, the change in value of a derivative may not correlate as
expected with the currency, security or other risk being hedged.
oLegal
Risk –
Legal risks related to documentation/agreements, capacity or authority of a
counterparty, or issues regarding the legality or enforceability of a contract,
may limit a Fund’s ability to invest or remain invested in
derivatives.
oPremium
Risk
– A Fund that utilizes options is subject to the risk of losing the premium it
paid to purchase an option if the price of the underlying Reference asset
decreases or remains the same (for a call option) or increases or remains the
same (for a put option). If a call or put option that a Fund purchased were
allowed to expire without being sold or exercised, its premium would be a loss
to the Fund.
•Emerging
Markets Risk:
Investments in or exposure to investments in emerging market countries (such as
many countries in Latin America, Asia, the Middle East, Eastern Europe and
Africa), may be riskier than investments in or exposure to investments in U.S.
and other developed markets for many reasons, including smaller market
capitalizations, greater price volatility, less liquidity, lower credit quality,
a higher degree of political and economic instability (which can freeze,
restrict or suspend transactions in those investments, including cash), the
imposition of economic sanctions, less governmental regulation and supervision
of the financial industry and markets, and less stringent financial reporting
and accounting standards and controls. Information, including financial
information, about companies in emerging markets may be less available and
reliable which can impede a Fund’s ability to evaluate companies in emerging
markets. In addition, the taxation systems at the federal, regional, and local
levels in emerging market countries may be less transparent and inconsistently
enforced, and subject to sudden change. Emerging market countries may have a
higher degree of corruption and fraud than developed market countries, as well
as counterparties and financial institutions with less financial sophistication,
creditworthiness and/or resources. If an international body (such as the United
Nations) or a sovereign state (such as the United States) imposes economic
sanctions, trade embargoes or other restrictions against a government of an
emerging market country or issuers, a Fund’s investments in issuers subject to
such restrictions may be frozen or otherwise suspended or restricted,
prohibiting or impeding the Fund from selling or otherwise transacting in these
investments, and a Fund may be prohibited from or impeded in investing in such
issuers or may be required to divest its holdings in such issuers, which may
result in losses to the Fund.
Governments
in emerging market countries may also intervene in their economies and financial
markets to a greater degree than more developed countries. Such government
intervention could cause issuers in emerging markets to have limited reliable
access to capital and cause the Fund to be unable to access or transact in its
investments in such markets, including cash holdings. Greater governmental
control could also require repatriation of sales proceeds. The governments of
emerging market countries, some with histories of instability and upheaval, may
act in an adverse or hostile manner toward private enterprise or foreign
investment. This may include limiting the ability to conduct due diligence on
issuers located in emerging market countries; a lack of access by the Public
Company Accounting Oversight Board (“PCAOB”) to inspect audit work papers for
PCAOB registered accounting firms located in certain emerging market countries
(especially China); restricting the ability of U.S authorities (such as the SEC)
to bring and enforce actions against companies and persons located in emerging
market countries; and the difficulty or inability of shareholders to seek legal
remedies (such as class action lawsuits) against issuers in emerging market
countries.
A
Fund may be exposed to this risk by directly investing in companies domiciled in
emerging market countries or indirectly, by investing in companies domiciled in
developed market countries which either invest in or conduct a portion of their
businesses in emerging market countries or by investing in securities
denominated in emerging market currencies. Depositary receipts, including
American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”),
Global Depositary Receipts (“GDRs”) and similar securities that represent
interests in a foreign (non-U.S.) company’s securities that have been deposited
with a bank or trust and that trade on a U.S. exchange or over-the-counter are
subject to the same risks of investments in securities of foreign issuers and
securities of companies with significant foreign exposure described above. In
addition, these securities may be less liquid or may trade at a lower price than
the underlying securities of the issuer. The underlying issuers of certain
depositary receipts, particularly unsponsored or unregistered depositary
receipts, may not have any obligation to distribute shareholder communications
to the holders of such receipts, or to pass through to them any voting rights
with respect to the deposited securities.
•Investment
Style Risk:
Each Fund has its own investment style or overall investment strategy (e.g.,
large-capitalization growth investment style). A Fund’s investment style may
shift in and out of favor for reasons including market conditions and investor
sentiment.
•Issuer
Risk:
The value of a security or instrument may decline for reasons directly related
to the issuer of the security or instrument, such as management, performance,
financial leverage, changes in markets in which the issuer offers goods or
services, and reduced demand for the issuer’s goods or services.
•Market
and Regulatory Risk:
Events in the financial markets and economy may cause volatility and uncertainty
and adversely affect performance. Such adverse effect on performance could
include a decline in the value and liquidity of securities held by a Fund,
unusually high and unanticipated levels of redemptions, an increase in portfolio
turnover, a decrease in NAV, and an increase in Fund expenses. It may also be
unusually difficult to identify both investment risks and opportunities, in
which case investment goals may not be met. Market events may affect a single
issuer, industry, sector, or the market as a whole. In addition, because of
interdependencies between markets, events in one market may adversely impact
markets or issuers in which a Fund invests in unforeseen ways. Traditionally
liquid investments may experience periods of diminished liquidity. During a
general downturn in the financial markets, multiple asset classes may decline in
value and a Fund may lose value, regardless of the individual results of the
securities and other instruments in which a Fund invests. It is impossible to
predict whether or for how long such market events will continue, particularly
if they are unprecedented, unforeseen or widespread events or conditions.
Therefore, it is important to understand that the value of your investment may
fall, sometimes sharply and for extended periods, and you could lose money.
Governmental and regulatory actions, including tax law changes, may also impair
portfolio management and have unexpected or adverse consequences on particular
markets, strategies, or investments. Future market or regulatory events may
impact a Fund in unforeseen ways, such as causing a Fund to alter its existing
strategies or potentially, to liquidate and close.
•Natural
Disasters Risk:
Natural disasters occur throughout the world and include events such as
blizzards and ice storms, earthquakes, floods, hurricanes, pandemics, tidal
waves, tornadoes, tsunamis, typhoons, volcanic eruptions, and wildfires.
Although
specific
types of natural disasters may occur more frequently in certain geographic
locations, such events are by their nature unpredictable and may cause sudden,
severe and widespread damage that negatively impacts issuers, regions and
economies in which a Fund invests. Should a Fund hold significant investments
in, or have significant exposure to, an issuer, region or economy affected by a
natural disaster, the Fund may lose money. Due to the interconnectedness of the
global economy, natural disasters in one location may negatively impact issuers
in other locations.
An
outbreak of infectious respiratory illness caused by the novel coronavirus known
as COVID-19 was first detected in China in 2019 before spreading worldwide and
being declared a global pandemic by the World Health Organization in March 2020.
COVID-19 has resulted in travel restrictions, closed international borders,
enhanced health screenings, disruption and delays in healthcare services,
prolonged quarantines, cancellations, temporary store closures, social
distancing, government ordered curfews and business closures, disruptions to
supply chains and consumer activity, shortages, highly volatile financial
markets, and general concern and uncertainty. The impact of COVID-19, and other
infectious illness outbreaks that may arise in the future, could adversely
affect the economies and capital markets of many nations or the entire global
economy, as well as individual companies, entire sectors, and securities and
commodities markets (including liquidity), in ways that may not necessarily be
foreseen at the present time. COVID-19 and other health crises in the future may
exacerbate other pre-existing political, social and economic risks, and its
impact in developing or emerging market countries may be greater due to less
established health care systems. The duration and ultimate impact of an outbreak
may be short term or may last for an extended period of time.
•New
Adviser Risk:
The Adviser is newly registered and therefore has limited operating history.
Mutual funds and their advisers are also subject to restrictions imposed by the
1940 Act, and the IRC that do not apply to the management of other types of
individual and institutional accounts. As a result, investors do not have a
long-term track record from which to judge the Adviser and the Adviser may not
achieve the intended result in managing the Funds.
•Price
Volatility Risk:
The values of all of a Fund’s investments have the potential to be volatile.
Price volatility of an investment refers to the variation of changes in that
investment’s value over time. Thus, an investment with higher price volatility
is likelier to have greater price swings over shorter time periods than an
investment with lower price volatility and a fund that invests in more volatile
investments may see its price also go up or down rapidly or unpredictably. Price
volatility can be caused by many factors, including changes in the economy or
financial markets or for reasons specific to a particular issuer.
•Redemption
Risk:
A Fund could experience a loss when selling securities, including securities of
other investment companies, to meet redemption requests by shareholders if the
redemption requests are unusually large or numerous, occur in times of market
turmoil or declining prices for the securities sold, or when the securities to
be sold are illiquid. Such redemptions may also increase expenses to the Fund
and cause the sale of securities in a short timeframe, both of which could
negatively impact performance.
•Sector
Risk:
A Fund may be invested more heavily from time to time (e.g.,
over 25% of its assets) in a particular sector (which is more broadly defined
than an industry classification). If a Fund is invested more heavily in a
particular sector, its performance will be more sensitive to risks and
developments that affect that sector. Individual sectors may rise and fall more
than the broader market. In addition, issuers within a sector may all react in
the same way to economic, political, regulatory or other events.
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ADDITIONAL
INFORMATION ABOUT FEES AND EXPENSES |
There
are two types of fees and expenses you pay when you invest in mutual funds: (i)
shareholder fees and (ii) operating expenses. Shareholder fees include sales
charges and account fees, as applicable, that you pay directly when you buy or
sell shares. Operating expenses incurred by each Fund are borne by shareholders
through their investment in such Fund. Your actual cost of investing in a Fund
may be higher than the total expenses shown in the Fees
and Expenses
of
the Fund
section for a variety of reasons, for example, if average net assets decrease.
In addition, certain expenses, such as brokerage costs, are not required to be
disclosed in fee table and expense examples. The Portfolio Optimization Funds
directly bear their annual operating expenses and indirectly bear the annual
operating expenses of their Underlying Funds in proportion to their allocations.
Annual
Fund Operating Expenses
are presented in the Fund
Summaries
section at the beginning of this Prospectus.
The
Acquired Fund Fees and Expenses line item in a Fund’s Annual
Fund Operating Expenses
table reflects a Fund’s pro-rata share of fees and expenses incurred indirectly
as a result of its ownership in other investment companies (registered and
unregistered) for the relevant fiscal period shown in the table. These
investment companies may include other mutual funds, exchange-traded funds,
business development companies and closed-end funds. Acquired Fund Fees and
Expenses have been estimated based on expected allocations to underlying
funds.
Operating
expenses paid by each Fund include the costs of distribution services and
shareholder services (under a 12b-1 plan for Class A shares and Class C shares).
The Trust also pays AIS for providing investment advisory services and
supervision and administration services.
Additional
Information About Shareholder Fees
Sales
Charges
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Portfolio
Optimization Funds |
Class
A |
Class
C |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
5.50%1 |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None2 |
1.00%3 |
None |
1 The
sales charge is reduced for purchases of $50,000 or more and is waived in
certain circumstances.
2 There
is a contingent deferred sales charge of 1% on redemptions of Class A shares
within one year of purchase if the purchase was part of an investment of $1
million or more where the initial sales charge was waived.
3 There
is a CDSC on the sale of shares within one year of purchase.
Sales
Charges
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Aristotle
Core Income
Fund,
Aristotle Strategic Income
Fund
and Aristotle High Yield Bond Fund |
Class
A |
Class
C |
Class
I |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
4.25%1 |
None |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None2 |
1.00%3 |
None |
None |
1 The
sales charge is reduced for purchases of $100,000 or more and is waived in
certain circumstances.
2 There
is a contingent deferred sales charge of 1% on redemptions of Class A shares
within one year of purchase if the purchase was part of an investment of
$500,000 or more where the initial sales charge was waived.
3 There
is a CDSC on the sale of shares within one year of purchase.
Sales
Charges
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Aristotle
Small/Mid Cap Equity Fund |
Class
A |
Class
C |
Class
I |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
4.25%1 |
None |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None2 |
1.00%3 |
None |
None |
1 The
sales charge is reduced for purchases of $100,000 or more and is waived in
certain circumstances.
2 There
is a contingent deferred sales charge of 1% on redemptions of Class A shares
within one year of purchase if the purchase was part of an investment of
$500,000 or more where the initial sales charge was waived.
3 There
is a CDSC on the sale of shares within one year of purchase.
Sales
Charges
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Aristotle
Small Cap Equity Fund |
Class
A |
Class
C |
Class
I |
Class
R6 |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
4.25%1 |
None |
None |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None2 |
1.00%3 |
None |
None |
None |
1 The
sales charge is reduced for purchases of $100,000 or more and is waived in
certain circumstances.
2 There
is a contingent deferred sales charge of 1% on redemptions of Class A shares
within one year of purchase if the purchase was part of an investment of
$500,000 or more where the initial sales charge was waived.
3 There
is a CDSC on the sale of shares within one year of purchase.
Sales
Charges
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Aristotle
Short Duration Income Fund and Aristotle Floating Rate Income
Fund |
Class
A |
Class
C |
Class
I |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
3.00%1 |
None |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None2 |
1.00%3 |
None |
None |
1 The
sales charge is reduced for purchases of $100,000 or more and is waived in
certain circumstances.
2 There
is a contingent deferred sales charge of 1% on redemptions of Class A shares
within one year of purchase if the purchase was part of an investment of
$500,000 or more where the initial sales charge was waived.
3 There
is a CDSC on the sale of shares within one year of purchase.
Sales
Charges
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Aristotle
Ultra Short Income Fund |
Class
A |
Class
I |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
None |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None |
None |
None |
Sales
Charges
|
|
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|
Aristotle
ESG Core Bond Fund |
Class
I |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None |
None |
Sales
Charges
|
|
|
|
|
|
|
|
|
|
|
|
Aristotle
Growth Equity Fund, Aristotle Value Equity Fund, Aristotle International
Equity Fund, Aristotle/Saul Global Equity Fund, Aristotle Core Equity
Fund |
Class
A |
Class
I |
Class
I-2 |
Maximum
Front-end Sales Charge on your investment (as a percentage of offering
price) |
4.25%1 |
None |
None |
Maximum
Contingent Deferred Sales Charge (as a percentage of purchase price or
redemption price, whichever is less) |
None2 |
None |
None |
1 The
sales charge is reduced for purchases of $100,000 or more and is waived in
certain circumstances.
2 There
is a contingent deferred sales charge of 1% on redemptions of Class A shares
within one year of purchase if the purchase was part of an investment of
$500,000 or more where the initial sales charge was waived.
Examples
for Class A Shares Purchased at NAV
Class
A shares may be purchased at NAV (without an initial sales charge) under certain
circumstances — see the Sales
Charges – Waivers and Reductions (Class A Shares)
subsection within the Overview
of the Share Classes
section of this Prospectus and the appendix to this Prospectus titled
Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries (the
“Appendix”) for eligibility. The examples that follow are intended to help
eligible persons compare the cost of investing in Class A shares of each Fund
that offers Class A shares when purchased at NAV to the cost of investing in
other mutual funds. Each example assumes that you invest $10,000 for the time
periods indicated, that your investment has an average annual return of 5%, and
that the Funds’ annual operating expenses (based on data as presented in the
applicable operating expenses tables) remain the same. The examples reflect the
current contractual fee waiver for the relevant contractual period. Although
your actual costs may be higher or lower, the examples show what your costs
would be based on these assumptions. Keep in mind that this is an estimate —
actual expenses may vary.
Your
expenses (in dollars) whether you SELL or DON’T SELL your shares at the end of
each period are the same, because there are no initial or deferred sales charges
associated with Class A shares purchased at NAV.
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|
Your
expenses (in dollars) |
|
1
Year |
3
Years |
5
Years |
10
Years |
Aristotle
Portfolio Optimization Conservative Fund |
$659 |
$889 |
$1,138 |
$1,849 |
Aristotle
Portfolio Optimization Moderate-Conservative Fund |
$660 |
$892 |
$1,143 |
$1,860 |
Aristotle
Portfolio Optimization Moderate Fund |
$658 |
$886 |
$1,133 |
$1,838 |
Aristotle
Portfolio Optimization Growth Fund |
$655 |
$878 |
$1,118 |
$1,806 |
Aristotle
Portfolio Optimization Aggressive-Growth Fund |
$655 |
$878 |
$1,118 |
$1,806 |
Aristotle
Ultra Short Income Fund |
$58 |
$183 |
$318 |
$714 |
Aristotle
Short Duration Income Fund |
$374 |
$532 |
$704 |
$1,202 |
Aristotle
Core Income Fund |
$508 |
$685 |
$876 |
$1,429 |
Aristotle
Strategic Income Fund |
$517 |
$712 |
$923 |
$1,531 |
Aristotle
Floating Rate Income Fund |
$401 |
$616 |
$850 |
$1,520 |
Aristotle
High Yield Bond Fund |
$518 |
$715 |
$928 |
$1,542 |
Aristotle
Small/Mid Cap Equity Fund |
$537 |
$775 |
$1,031 |
$1,763 |
Aristotle
Small Cap Equity Fund |
$537 |
$775 |
$1,031 |
$1,763 |
Aristotle
Growth Equity Fund |
$518 |
$715 |
$928 |
$1,542 |
Aristotle
Value Equity Fund |
$517 |
$712 |
$923 |
$1,531 |
Aristotle
International Equity Fund |
$526 |
$739 |
$969 |
$1,631 |
Aristotle/Saul
Global Equity Fund |
$526 |
$739 |
$969 |
$1,631 |
Aristotle
Core Equity Fund |
$513 |
$700 |
$902 |
$1,486 |
Additional
Information About Operating Expenses
Other
Expenses
Certain
Funds may disclose “interest expense” as part of the Other Expenses line item in
the Fund’s Annual
Fund Operating Expenses
table. Interest expense results from a Fund’s use of investments that are
considered to be a form of borrowing or financing for the Fund, such as reverse
repurchase agreements, sale-buyback financing transactions or short sales. The
level of interest expense incurred by a Fund will vary based on the Fund’s use
of these investments as an investment strategy in seeking to achieve the Fund’s
investment goal. Interest expenses may also result from a Fund’s use of its line
of credit and/or from custodian overdraft fees.
Management
Fees
Each
Fund pays for the advisory and supervision and administration services it
requires under what is essentially an all-in fee structure. The Management Fees
shown in each Fund’s Annual Fund Operating Expenses tables reflect both the
advisory fee and the supervision and administration fee paid by a Fund to AIS.
Additional information about the Management Fees is provided in the “About
Management” section below.
Fee
Waivers
For
Funds with a management fee waiver agreement in place, there is no guarantee
that AIS will continue such waiver after the expiration date of the fee waiver
agreement referenced therein. AIS has contractually agreed, through July 31,
2025 for certain Funds or Fund classes and through July 31, 2026 for other Funds
or Fund classes as illustrated in the chart below, to waive its management fees
to the extent that the Total Annual Fund Operating Expenses (but excluding
interest, taxes, brokerage commissions, dividends and interest experience on
securities sold short, other expenditures which are capitalized in accordance
with generally accepted accounting principles (other than offering costs), other
extraordinary expenses not incurred in the ordinary course of such Fund’s
business and amounts payable pursuant to a plan adopted in accordance with Rule
12b-1 under the 1940 Act) of the Funds exceed the amounts set forth below.
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|
Fund |
Class |
Expense
Limit
(based
on percentage of the average daily net assets) |
Fee
Waiver Expiration Date |
Aristotle
Portfolio Optimization Conservative Fund |
Class
A |
1.22% |
July
31, 2025 |
Class
C |
1.97% |
Class
I-2 |
0.97% |
Aristotle
Portfolio Optimization Moderate Conservative Fund |
Class
A |
1.22% |
July
31, 2025 |
Class
C |
1.97% |
Class
I-2 |
0.97% |
Aristotle
Portfolio Optimization Moderate Fund |
Class
A |
1.23% |
July
31, 2025 |
Class
C |
1.98% |
Class
I-2 |
0.98% |
Aristotle
Portfolio Optimization Growth Fund |
Class
A |
1.25% |
July
31, 2025 |
Class
C |
2.00% |
Class
I-2 |
1.00% |
Aristotle
Portfolio Optimization Aggressive Growth Fund |
Class
A |
1.26% |
July
31, 2025 |
Class
C |
2.01% |
Class
I-2 |
1.01% |
Aristotle
Ultra Short Income Fund |
Class
A |
0.57% |
July
31, 2025 |
Class
I |
0.32% |
Class
I-2 |
0.32% |
Aristotle
Short Duration Income Fund |
Class
A |
0.75% |
July
31, 2025 |
Class
C |
1.50% |
Class
I |
0.45% |
Class
I-2 |
0.50% |
Aristotle
Core Income Fund |
Class
A |
0.85% |
July
31, 2025 |
Class
C |
1.60% |
Class
I |
0.55% |
Class
I-2 |
0.55% |
Aristotle
ESG Core Bond Fund |
Class
I |
0.48% |
July
31, 2025 |
Class
I-2 |
0.48% |
Aristotle
Strategic Income Fund |
Class
A |
0.94% |
July
31, 2025 |
Class
C |
1.69% |
Class
I |
0.64% |
Class
I-2 |
0.69% |
Aristotle
Floating Rate Income Fund |
Class
A |
1.02% |
July
31, 2025 |
Class
C |
1.77% |
Class
I |
0.72% |
Class
I-2 |
0.77% |
Aristotle
High Yield Bond Fund |
Class
A |
0.95% |
July
31, 2025 |
Class
C |
1.70% |
Class
I |
0.65% |
Class
I-2 |
0.70% |
Aristotle
Small/Mid Cap Equity Fund |
Class
A |
1.20% |
July
31, 2025 |
Class
C |
1.95% |
Class
I |
0.85% |
Class
I-2 |
0.90% |
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|
|
Aristotle
Small Cap Equity Fund |
Class
A |
1.20% |
July
31, 2025 |
Class
C |
1.95% |
July
31, 2025 |
Class
I |
0.90% |
July
31, 2025 |
Class
I-2 |
0.90% |
July
31, 2026 |
Class
R6 |
0.85% |
July
31, 2025 |
Aristotle
Growth Equity Fund |
Class
I |
0.70% |
July
31, 2025 |
Aristotle
International Equity Fund |
Class
I-2 |
0.78% |
July
31, 2026 |
Aristotle
Value Equity Fund |
Class
I-2 |
0.69% |
July
31, 2026 |
Aristotle/Saul
Global Equity Fund |
Class
I-2 |
0.78% |
July
31, 2026 |
Aristotle
Core Equity Fund |
Class
I-2 |
0.65% |
July
31, 2026 |
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SHAREHOLDER
ACCOUNT INFORMATION |
Choosing
a Share Class
Class
A, Class C, Class I, Class R6 and Class I-2 shares of the Funds are continuously
offered through the Distributor. Shares of the Trust’s Funds are generally
purchased through broker-dealers, which may be affiliated with financial firms,
such as banks and retirement plan administrators, and which have entered into
selling group agreements with the Distributor (collectively, “selling group
members”). Such selling group members and their financial intermediaries, as
well as other service providers (such as registered investment advisers, banks,
trust companies, certified financial planners, third-party administrators,
recordkeepers, trustees, custodians, and financial consultants) may be referred
to as a “financial intermediary” or “financial intermediaries.”
Your
financial intermediary can help you choose the Fund or Funds that are
appropriate for you based upon your investment goal, risk tolerance, time
horizon, and other factors. Your financial intermediary can also explain to you
the various expenses associated with each share class and help you choose the
share class that is most appropriate for you. Your financial intermediary may
also assist you with establishing your account with the Trust. You should note,
however, that if you invest in the Funds through a financial intermediary,
different guidelines, conditions and restrictions may apply than if you held
your shares in the Fund directly or through another financial intermediary. We
encourage you to discuss the different options with your financial intermediary
and review the Trust’s SAI as well as the Appendix to this Prospectus for more
information. You should note that if the relationship between your brokerage
firm and you or the Trust is terminated, your account may become a temporary
“orphan” account and you will be requested to establish a new relationship with
another selling group member. If you hold your shares with a financial
intermediary (either in a networked account or through an omnibus platform) and
you change intermediaries, please contact your new financial intermediary for
information on transferring your account. If the relationship between your
financial intermediary and the Trust is terminated, please note that your shares
may be subject to certain delays and restrictions or even redemption; please
contact your financial intermediary for further information.
The
class of shares that best corresponds with your financial goals depends upon
several factors. All share classes of a Fund may not be available through a
broker-dealer or financial firm.
When
choosing among classes, you should consider the following
questions:
•How
long do I plan to hold the shares?
•How
much money do I intend to invest?
•Will
I be purchasing more shares in the future?
•What
expenses will I pay for each class?
•Do
I qualify for any sales charge discounts?
You
should also understand how the various fees, expenses, and charges would affect
your investment over time. Once you understand the differences among the share
classes, you can then make an informed decision and select a share class that
matches your needs, resources, and investment timeline. Your financial
intermediary will generally receive compensation no matter which share class you
select; however, that compensation may vary between share classes and may vary
with the size of your investment. Thus, a financial intermediary may have an
incentive for you to invest in one share class over another.
Although
the share class that you choose is ultimately your decision, you should seek to
learn which share class is economically more attractive for your particular
situation so that you can make an informed decision. For more information on
share classes or other mutual fund investing topics, please refer to the
websites of the Financial Industry Regulatory Authority (www.finra.org) and the
SEC, (www.sec.gov/investor).
The
sections that follow contain more detailed information about the share classes;
how to buy, sell and exchange shares; and other information about the
Funds.
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|
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OVERVIEW
OF THE SHARE CLASSES |
Each
Fund of the Trust may offer multiple classes of shares and not all Funds offer
all share classes discussed herein. Each class represents an interest in the
same portfolio of investments. Certain classes have higher expenses than other
classes which may lower the return on your investment when compared to a less
expensive class. In deciding which class of shares to purchase, you should
consider the following attributes of the various share classes, among other
things: (i) the eligibility requirements that apply to purchases of a particular
share class;
(ii)
the initial sales charges and CDSCs, if any, applicable to the class; (iii) the
distribution (12b-1) fee, if any, or service fees paid by the class of shares;
(iv) any shareholder privileges that are applicable to a particular share class
that would entitle you to reductions or waivers on sales charges, including
contingent deferred sales charges, that might otherwise apply to a purchase or
sale, as described further below in this section and in the Appendix to this
Prospectus; and (v) any services you may receive from a financial intermediary.
Please consult with your financial professional to assist you in making your
decision. For accounts sold through financial intermediaries, it is the primary
responsibility of the financial intermediary to ensure compliance with
eligibility requirements such as investor type and investment minimums. Please
refer to the Prospectus fee table for more information on the fees and expenses
of a particular Fund’s share classes. Because the information in this section
and in the Appendix to this Prospectus about sales charges and waivers and
reductions of sales charges is disclosed in this Prospectus (including the
Appendix) and the Trust’s SAI, and both this Prospectus (including the Appendix)
and the SAI are posted on the Aristotle Funds website, this information is not
separately provided on the website.
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Share
Class |
Front-end Sales
Charge |
Annual Distribution and/or Service
Fees |
CDSC |
Conversion
to Class A Shares |
Class
A |
YES—
initial sales charge which may be waived or reduced. |
0.25% |
NONE
—refer to the Contingent
Deferred Sales Charges (“CDSCs”)
subsection. |
N/A |
Class
C |
NONE |
1.00% |
YES
—1.00% on shares redeemed within one year of purchase. |
YES
– after six (6) years. |
Class
I |
NONE |
NONE |
NONE |
NO |
Class
R6 |
NONE |
NONE |
NONE |
NO |
Class
I-2 |
NONE |
NONE |
NONE |
NO |
Share
Class Eligibility
Class
A and Class C Shares
Class
A and Class C shares are available to all retail investors, including
individuals, trusts, corporations and other business and charitable
organizations and eligible employee benefit plans, as well as to AIS and certain
of its affiliates. The share classes offer different fee structures which are
intended to compensate financial intermediaries for services provided in
connection with the sale of shares and continued maintenance of the customer
relationship. You should consider the services provided by your financial
adviser and any other financial intermediaries who will be involved in the
servicing of your account when choosing a share class.
Class
I Shares
Class
I shares are available to certain Institutional Investors and directly to
certain Individual Investors as set forth below, as well as for investment by
the Portfolio Optimization Funds of the Trust and by AIS and certain of its
affiliates:
Institutional
Investors
are corporations, employee benefit plans, foundations/endowments and managed
account programs offered by broker-dealers, registered investment advisers,
insurance companies, trust institutions and bank trust departments which charge
an asset-based fee to their clients participating in those programs. In a
managed account program, the financial intermediary typically charges each
investor a single fee based on the value of the investor’s account in exchange
for providing various services to that account (like management, brokerage and
custody services).
Individual
Investors
include current and former trustees and officers of the Trust and Pacific Funds
Series Trust, the series of which were reorganized with and into corresponding
series of the Trust on April 17, 2023, current and former directors, officers,
and employees of AIS and Aristotle Capital Management, LLC (“Aristotle Capital”)
and their affiliates, and immediate family members of all such
persons.
Class
I-2 Shares
Class
I-2 shares are generally only available to certain employer-sponsored
retirement, savings or benefit plans held in plan level or omnibus accounts and
managed account programs offered by broker-dealers, registered investment
advisers, insurance companies, trust institutions and bank trust departments
which charge an asset-based fee to their clients participating in those
programs. In a managed account program, the financial intermediary typically
charges each investor a single fee based on the value of the investor’s account
in exchange for providing various services to that account (like management,
brokerage and custody services). Class I-2 shares may also be available on
certain brokerage platforms. Investors buying or selling Class I-2 shares
through a broker acting as an agent for the investor may be required to pay
commissions and/or other charges to the broker.
For
the Portfolio Optimization Funds, Class I-2 shares are also available for
purchase by current and former trustees and officers of the Trust and Pacific
Funds Series Trust, current and former directors, officers and employees of AIS
and Aristotle Capital and their affiliates, and immediate family members of all
such persons.
Class
R6 Shares
Class
R6 shares are available for investment by employer sponsored retirement and
benefit plans where the employer, administrator, recordkeeper, sponsor,
financial intermediary or other appropriate party has entered into an agreement
with the Trust’s administrator, to make Class R6 shares available to plan
participants. Class R6 shares generally are not available to retail
non-retirement accounts (unless otherwise specified herein). There is no minimum
for initial purchases of Class R6 shares, except for certain institutional
investors who purchase Class R6 shares directly with the Trust’s transfer agent
for which the minimum initial investment is $1,000,000. No dealer compensation,
marketing support payments, or sub-transfer agency fees are paid from fund
assets on sales of Class R6 shares.
Distribution
and/or Service Fees
To
pay for the cost of promoting the Funds and servicing your account, Class A
shares and Class C shares have adopted a Distribution and Service Plan in
accordance with Rule 12b-1 (“12b-1”) under the 1940 Act. Because 12b-1 and
service fees are paid out of the Fund’s assets on an ongoing basis, they will
increase the cost of your investment over time and may cause you to pay more
than the maximum permitted initial sales charges described in this
Prospectus.
Initial
Sales Charges
The
Funds that offer Class A shares are grouped into different categories for
determining initial sales charges. As used below, the term “offering price” with
respect to all categories of Class A shares includes the initial sales charge.
Because of rounding in the calculation of the “offering price”, the actual sales
charge you pay may be more or less than that calculated using the percentages
shown below.
Category
I — Portfolio Optimization Funds – Class A shares:
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|
Investment |
Sales
charge as a % of offering price |
Sales
charge as a % of Net Amount Invested |
Under
$50,000 |
5.50% |
5.82% |
$50,000
to under $100,000 |
4.75% |
4.99% |
$100,000
to under $250,000 |
3.75% |
3.90% |
$250,000
to under $500,000 |
3.00% |
3.09% |
$500,000
to under $1,000,000 |
2.10% |
2.15% |
$1,000,000
and over* |
0.00% |
0.00% |
Category
II — Aristotle Core Income Fund, Aristotle Strategic Income Fund, Aristotle High
Yield Bond Fund, Aristotle Small/Mid Cap Equity Fund, Aristotle Small Cap Equity
Fund, Aristotle Growth Equity Fund, Aristotle Value Equity Fund, Aristotle
International Equity Fund, Aristotle/Saul Global Equity Fund, Aristotle Core
Equity Fund – Class A shares:
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|
|
Investment |
Sales
charge as a % of offering price |
Sales
charge as a % of Net Amount Invested |
Under
$100,000 |
4.25% |
4.44% |
$100,000
to under $250,000 |
3.50% |
3.63% |
$250,000
to under $500,000 |
2.25% |
2.30% |
$500,000
and over* |
0.00% |
0.00% |
Category
III — Aristotle Short Duration Income Fund and Aristotle Floating Rate Income
Fund – Class A shares:
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|
Investment |
Sales
charge as a % of offering price |
Sales
charge as a % of Net Amount Invested |
Under
$100,000 |
3.00% |
3.09% |
$100,000
to under $250,000 |
2.25% |
2.30% |
$250,000
to under $500,000 |
1.50% |
1.52% |
$500,000
and over* |
0.00% |
0.00% |
Category
IV — Aristotle Ultra Short Income Fund – Class A
shares:
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|
Investment |
Sales
charge as a % of offering price |
Sales
charge as a % of Net Amount Invested |
N/A |
None |
None |
* Shares
will be subject to a CDSC of 1.00% if you sell shares within one year of
purchase. Please see the CDSCs
on Class A Shares
subsection within the Overview
of the Share Classes
section of this Prospectus for additional information.
As
noted in the tables above, discounts (breakpoints) are available for larger
purchases.
Sales
Charges — Waivers and Reductions (Class A Shares)
The
availability of the sales charge waivers and reductions (discounts) described in
this section and the following Contingent
Deferred Sales Charges (“CDSCs”) section
will depend upon whether you purchase or redeem your Class A shares directly
from a Fund or through a financial intermediary, as well as through which
financial intermediary you transact your shares. Financial intermediary-specific
sales charge waivers and reductions that may vary from the waivers and
reductions described below are set forth in the Appendix to this Prospectus
entitled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries.
In all circumstances, it is your responsibility to notify the Fund (if you
purchased directly from the Fund) or your financial intermediary (if you
purchased through a financial intermediary) at the time of purchase of any
relationship or other facts qualifying you for sales charge waivers or
reductions.
Waiver
of the Class A Initial Sales Charges
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Class
A shares may be purchased without a front-end sales charge by the
following individuals: |
|
•Registered
representatives and employees of broker-dealers with a current
distribution or selling agreement with the Trust and such broker-dealers’
affiliates;
•Employees
of current Managers to the Trust, other service providers to the Trust and
their affiliates;
•Immediate
family members, as described below under Aggregating Accounts, of all the
above referenced persons;
•Investors
who purchase through a fee-based advisory program sponsored by a financial
intermediary or similar program under which clients pay a fee to the
financial intermediary;
•Investors
who purchase through an omnibus account sponsored by a financial
intermediary that does not accept or charge the Class A initial sales
charge (Note: Your financial intermediary may charge transaction fees or
additional fees that are separate from Fund fees and
expenses.);
•Qualified
retirement plans where the plan’s investments are part of an omnibus
account sponsored by a financial intermediary that does not accept or
charge the Class A initial sales charge (Note: Your financial intermediary
may charge transaction fees or additional fees that are separate from Fund
fees and expenses.);
•Pacific
Life Individual(k) Program participants who purchase shares in repayment
of an outstanding loan under this program; and
•Investors
who purchase through a self-directed investment brokerage account offered
by a financial intermediary that does not accept or charge the Class A
initial sales charge (Note: Your financial intermediary may charge
transaction fees or additional fees that are separate from Fund fees and
expenses.). |
Investors
will not pay a Class A initial sales charge in the following
circumstances: |
|
•When
reinvesting dividends and distributions;
•When
exchanging Class A shares of one Fund, that were previously assessed a
sales charge, for Class A shares of another Fund;
•When
acquiring Class A shares of a Fund as a result of an automatic conversion
of the Fund’s Class C shares into Class A shares; and
•When
acquiring shares as a result of a Fund’s merger, consolidation, or
acquisition of the assets of another Fund. |
Reinstatement
Privilege |
|
If
you sell shares of a Fund and withdraw your money from a Fund, you may
reinstate into the same account, within 60 days of the date of your
redemption, some or all of the proceeds in that Fund, or the same share
class of any Fund that the Trust offers that you own at the time of the
reinstatement, without paying a front-end sales charge if you paid a
front-end sales charge when you originally purchased your shares. For
purposes of the CDSC, if you paid a CDSC when you sold your shares, you
would be credited with the amount of the CDSC proportional to the amount
reinvested. Reinstated shares will continue to age, as applicable, from
the date that you bought your original shares. This privilege can be used
only once per calendar year per account. Contact your financial
intermediary or Aristotle Funds customer service at 844-ARISTTL
(844-274-7885) for additional information. You must identify and provide
information to the Trust or your financial intermediary, as applicable,
regarding your historical purchases and holdings, and you should also
retain any records necessary to substantiate historical transactions and
costs because the Trust, its transfer agent, and financial intermediaries
will not be responsible for providing this
information. |
Requirements
To
receive a front-end sales charge waiver, the NAV Authorization section must be
completed on the applicable Account Application or completed on an Account
Maintenance Request form and provided to the Trust in advance of or at the time
of purchase. Any financial intermediary initiating a purchase of Class A shares
at NAV is responsible for verifying that each purchase is executed in accordance
with the waiver guidelines outlined above or in the Appendix to the Prospectus,
as applicable. If you or your financial intermediary fail to identify that you
qualify for a sales charge waiver, your purchase may include a front-end sales
charge.
Reduction
of Initial Sales Charge (Class A Shares)
You
and your immediate family members can reduce the initial sales charge of Class A
shares by taking advantage of breakpoint opportunities in the sales charge
schedule; refer to the Initial
Sales Charges subsection
of this Prospectus for the sales charge schedule applicable to your Fund. The
following may assist you with breakpoint reductions:
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Letter
of Intent Privilege |
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Allows
you to pledge to purchase Class A shares over a 13-month period and pay
the same sales charge (if any) as if the shares had all been purchased at
once whether you hold your shares directly with a Fund or through another
financial intermediary. Purchases in all account types (e.g.,
IRA, retail, etc.), and purchases of Classes A and C shares by you and
your immediate family members that are provided for purposes of the Letter
of Intent will credit towards fulfilling the Letter of Intent on the new
account. At the time you enter into the Letter of Intent, you select your
total investment goal amount. Any shares purchased within 90 days of the
date you sign the letter of intent may be used as credit toward
completion, but the reduced sales charge will only apply to new purchases
made on or after that date. Shares equal to 5.5% of the amount of the
Letter of Intent will be held in escrow during the 13-month period. If, at
the end of that time the total amount of purchases made is less than the
amount intended, you will be required to pay the difference between the
reduced sales charge and the sales charge applicable to the individual
purchases had the Letter of Intent not been in effect. This amount will be
obtained from redemption of the escrow shares. Any remaining escrow shares
will be released to you. Capital appreciation, reinvested dividends and
reinvested capital gains distributions do not count toward the Letter of
Intent amount. After a Letter of Intent has been fulfilled or terminated,
any applicable sales charge breakpoints will be determined by Rights of
Accumulation if the account includes this privilege. |
Rights
of Accumulation Privilege |
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Allows
you and your immediate family members and participants of a SIMPLE and SEP
group plan to include the current value (calculated at the offering price)
or original purchase amounts (calculated net of any applicable sales
charges) less withdrawals, whichever is more beneficial, in all share
classes of accounts already owned in order to calculate the sales charge
breakpoint for the next purchase at the offering price, whether you hold
your shares directly with a Fund or through another financial
intermediary. Accounts holding Class I, Class I-2, or Class R6 shares
cannot be combined for Rights of Accumulation. |
Combination
Privilege |
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You
may combine all identified orders received on the same day and processed
in a single transaction with any Class C shares to reduce your Class A
sales charge. Orders related to Class I, Class I-2 or Class R6 shares
cannot be used for Combination Privilege
purposes. |
It
is your responsibility to inform your financial intermediary or the Trust of any
and all other accounts that may be linked together for the purposes of
determining whether the application of a letter of intent, rights of
accumulation or combination privilege would make Class A shares a more suitable
investment than other share classes.
Aggregating
Accounts
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Immediate
Family Members |
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You
and your “immediate family members” may combine all of your Aristotle
Funds investments to reduce your Class A sales charge. Immediate family
members include: |
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•Parents
•Siblings
•Dependents
•Brothers-in-law
•Grandparents |
•Spouse
or as recognized under local law
•Children
•Parents-in-law
•Sisters-in-law |
Entities |
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If
the account owner is an entity (e.g.,
a trust, a qualified plan, etc.), the privileges described above will
apply to the beneficial owners and trustees of the entity. For purposes of
applying these privileges, investments for the accounts of entities and
their affiliates may be aggregated. Omnibus accounts or other accounts
that are not on the books of Aristotle Funds or its transfer agent may not
be aggregated unless documentation is provided that Aristotle Funds deems
sufficient to verify the ownership of such accounts, along with any other
information Aristotle Funds deems necessary to implement the appropriate
privileges, such as account values. |
Participants
of a SIMPLE and SEP Group Plan |
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Participants
of a SIMPLE IRA or SEP IRA group plan may combine all Aristotle Funds’
investments to reduce Class A sales charges. Rights of Accumulation, as
described above, are allowed once approved by the plan sponsor and
contributions are received at Aristotle Funds. As a participant, you must
elect to combine your account with either the plan or immediate family
members. Other personal accounts you own and accounts owned by immediate
family members cannot be linked to the SIMPLE IRA or SEP IRA group
plan. |
Requirements
To
take advantage of these privileges, the account owner (or beneficial owner or
trustee) must identify and provide all applicable Aristotle Funds account
numbers or other requested information, including those account numbers opened
through a financial intermediary, to the Trust in advance or at the time of the
purchase that they qualify for such a reduction. It is the responsibility of the
financial intermediary to ensure that an investor obtains the proper
“breakpoint” discounts. If the financial intermediary or the Trust is not
notified that you are eligible for a reduction, you may not receive a sales
charge discount that you would be otherwise entitled.
Contingent
Deferred Sales Charges (“CDSCs”)
CDSCs
on Class A Shares
If
your account value, including the amount of your current investment, totals $1
million or more for Category I Funds or $500,000 or more for Category II and III
Funds, you will not pay a front-end sales charge on your investment amount.
However, if you sell these shares (for which you did not pay a front-end sales
charge) within one year of purchase, you will pay a CDSC of 1%, unless you
qualify for one of the CDSC waivers outlined below.
CDSCs
on Class C shares
Class
C shares are sold without an initial sales charge. However, Class C shares are
subject to a CDSC. You will be charged a 1% CDSC on shares that you redeem
within one year of purchase, unless you qualify for one of the CDSC waivers
outlined below.
For
Category I Funds, the initial and subsequent purchase maximum per transaction
for Class C shares is less than $1 million. For Category II and III Funds, the
initial and subsequent purchase maximum per transaction for Class C shares is
less than $500,000. If you were to invest more than these stated amounts, in
most cases Class A or Class I shares for eligible investors would be the most
advantageous choice. You should carefully consider whether two or more purchases
exceeding the referenced amounts are suitable in light of your own
circumstances.
Computing
a CDSC
To
keep your CDSC as low as possible, the amount of the CDSC will be based on the
lesser of your purchase price or redemption price. We will first sell shares in
your account that are not subject to a CDSC and then will sell shares in the
order in which they were purchased (i.e.,
first in, first out). There is no CDSC on shares acquired through the
reinvestment of dividends and capital gains distributions. The CDSC, if
applicable, will be calculated on loans taken under the Pacific Life
Individual(k) Program. A new CDSC period will begin, when applicable, for each
investment made in repayment of an outstanding loan under such Program.
CDSC
Waivers
The
CDSC for each applicable Class will be waived in the following
cases:
•Redemptions
following the permanent disability (as defined by Section 72(m)(7) of the IRC)
of a shareholder. The waiver is available only for shares held at the time of
initial determination of permanent disability.
•Redemptions
following the death of a shareholder as long as full redemption is requested
within one year of the date of death.
•Redemptions
for an individual retirement account (“IRA”) account following the death of a
shareholder as long as re-registration is made within one year of death. The
waiver is available only for shares held at the time of death.
•Redemption
amounts made through a Systematic Withdrawal Plan (“SWP”) are limited to 10% per
year of the current account value on the day the SWP is established, provided
all dividends and distributions are reinvested (“CDSC Waiver Eligible Amount”).
The CDSC Waiver Eligible Amount will remain the same for subsequent SWP
redemptions. The SWP redemption amount may be higher or lower than the CDSC
Waiver Eligible Amount. The frequency of the SWP determines what portion of the
CDSC Waiver Eligible Amount applies to each SWP transaction. Any SWP redemption
in excess of the amount eligible for the CDSC waiver may be subject to a CDSC.
If the existing SWP is cancelled and a new SWP is established later, a new CDSC
Waiver Eligible Amount would be determined.
•Required
Minimum Distributions (“RMD”), as required under the IRC, to the extent of the
RMD amount attributed to your IRA with Aristotle Funds.
•Excess
contributions as required under the IRC.
Any
financial intermediary initiating a redemption eligible for a CDSC waiver is
responsible for verifying that each redemption is executed in accordance with
the CDSC waiver guidelines outlined above or in the Appendix to the Prospectus,
as applicable. If your financial intermediary fails to identify that you qualify
for a CDSC waiver, your redemption may include a CDSC.
If
you think that you might be eligible for a CDSC waiver, contact your financial
intermediary. To receive a CDSC waiver, the Trust must be notified at the time
of the redemption request. Please see the Distribution
of Trust Shares
section in the SAI for additional information about other CDSC
waivers.
Automatic
Conversion of Class C Shares to Class A Shares
Class
C shares automatically convert to Class A shares on a monthly basis
approximately six years after the original purchase date, reducing future annual
expenses. The conversion occurs in the month following the six-year anniversary
of the purchase date (including shares obtained by reinvestment of dividends and
distributions). The Internal Revenue Service currently takes the position that
these automatic conversions are not taxable. For Class C shares held through a
financial intermediary, it is the responsibility of the financial intermediary
(and not the Trust) to ensure that a shareholder is credited with the proper
holding period. Your ability to have Class C shares held through a financial
intermediary automatically convert to Class A shares may be limited due to
operational limitations at your financial intermediary, and specific
intermediaries may have different policies and procedures regarding the
conversion of Class C shares to Class A shares including a different conversion
schedule or different eligibility requirements. Please contact your financial
intermediary for additional information.
You
can invest in the Funds directly with the Trust by using a financial
professional or through a broker-dealer or other financial intermediary.
Financial intermediaries can help you buy, sell, and exchange shares and
maintain your account. Certain financial intermediaries may charge transaction
fees or other fees that are in addition to any fees described in this
Prospectus. The Funds can be used in a variety of retirement plans, including
individual retirement accounts, Roth IRAs, SEP IRAs, SIMPLE IRAs, SAR-SEP
Rollovers, Individual 401k plans and other qualified plans, such as Coverdell
ESAs. Contact your financial professional for more information regarding your
options. The Funds are generally available only in the United States (the 50
states, District of Columbia, and the territories of Guam, Puerto Rico, and the
U.S. Virgin Islands).
Minimums
The
following chart lists the minimum initial investment (which is also the account
minimum) and subsequent investment minimums.
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Account
Type / Plan |
Initial
Investment |
Subsequent
Investment |
The
minimum investments for Class A and Class C shares are as
follows: |
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Retail
Accounts |
$1,000
per Fund |
$50
per Fund |
IRAs,
Roth IRAs, SEP IRAs, ESAs |
$1,000
per Fund |
$50
per Fund |
SIMPLE
IRAs, SAR-SEPs |
No
minimum |
No
minimum |
Employer
Sponsored Retirement Plans |
No
minimum |
No
minimum |
Preauthorized
Investment Plan |
$50
per Fund, per draft |
$50
per Fund, per draft |
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The
minimum investments for Class I shares are as follows: |
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Class
I shares (Institutional Investors) |
$500,000 |
No
minimum |
Class
I shares (Individual Investors) |
No
minimum |
No
minimum |
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There
are no minimum investments for Class I-2 shares. |
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Class
R6 shares have no minimum investments (initial or subsequent) except for
certain institutional investors who purchase Class R6 shares directly with
the Trust’s transfer agent for which the minimum initial investment is
$1,000,000 with no minimum subsequent
investment. |
The
Trust reserves the right to waive minimum investment amounts, including for
certain types of retirement plans. The Trust and the Distributor reserve the
right to reject any request to buy shares.
How
to Purchase Shares
Class
A and Class C shares:
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Method |
Opening
an account |
Adding
to an account |
Through
a Financial Intermediary: |
Contact
your financial professional. |
Contact
your financial professional. |
By
Mail: |
Complete
the applicable Account Application, ensuring that you include your
registered representative’s name and appropriate share class. Account
Applications without a registered representative’s name or share class may
be returned by the Trust. Return the completed Account Application with
either your investment check or select electronic funds transfer (“EFT”)
option under How
to Fund Your Account
and send to Aristotle Funds to the following address:
Regular
Mail:
Aristotle Funds c/o U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701
Overnight
Mail:
Aristotle Funds c/o U.S. Bank Global Fund Services
615
E. Michigan Street, 3rd
Floor
Milwaukee,
WI 53202
The
Fund does not consider the U.S. Postal Service or other independent
delivery services to be its agents. Therefore, deposit in the mail or with
such services, or receipt at U.S. Bancorp Fund Services, LLC post office
box, of purchase orders or redemption requests does not constitute receipt
by the transfer agent of the Fund. Receipt of purchase orders or
redemption requests is based on when the order is received at the Transfer
Agent’s offices. Please see Execution
of Your Requests
subsection below. |
Complete
the Invest
by Mail
form included with your confirmation quarterly account statement or submit
a letter of instruction indicating the desired investment allocations.
Make your check payable to “Aristotle Funds” and remember to include your
account number and investment allocations with your check.
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By
Telephone: |
Not
applicable. |
To
transfer money from your bank account to your Aristotle Funds account
using EFT, call 844-ARISTTL (844-274-7885) and provide the Fund name and
share class, your Aristotle Funds account number, the name(s) in which the
Aristotle Funds account is registered and the amount of the electronic
transfer. If you elected this option on your account application, and your
account has been open for at least 7 business days, telephone orders will
be accepted via electronic funds transfer from your bank account through
the Automated Clearing House (ACH) network.
Refer
to Telephone
Instructions
under Execution
of Your Requests
below for additional information. |
By
Wire: |
To
open an account by wire, a completed account application is required
before your wire can be accepted. You may mail or overnight deliver your
account application to the transfer agent. Upon receipt of your completed
application, an account will be established for you. The account number
assigned will be required as part of the instruction that should be
provided to your bank to send the wire. Your bank must include the name of
the Fund you are purchasing, the account number, and your name so that
monies can be correctly applied. Your bank should transmit funds by wire
to:
U.S.
Bank, N.A.
777
East Wisconsin Avenue
Milwaukee,
WI 53202
ABA
#075000022
Credit:
U.S.
Bancorp Fund Services, LLC
Account
#112-952-137
Further
Credit:
(name
of Fund to be purchased)
(shareholder
registration)
(shareholder
account number)
Wired
funds must be received prior to 4:00 p.m. Eastern time to be eligible for
same day pricing. The Fund and U.S. Bank, N.A. are not responsible for the
consequences of delays resulting from the banking or Federal Reserve wire
system, or from incomplete wiring instructions. |
Before
sending your wire, please contact the Transfer Agent to advise them of
your intent to wire funds. This will ensure prompt and accurate credit
upon receipt of your wire. |
By
Preauthorized Investment Plan: |
You
may make systematic investments through a preauthorized transfer from your
bank or other financial institution to your Aristotle Funds account ($50
minimum per fund, per draft, if the initial investment of $1,000 is met).
This Plan provides a convenient method to have monies deducted from your
bank account, for investment into the Fund, on a monthly, bi-monthly,
quarterly, or semi-annual basis.
A
preauthorized investment plan may take up to 7 calendar days to establish
and become active. Your financial institution must be a member of the
Automated Clearing House (ACH) network. If your bank rejects your payment,
the Fund’s transfer agent will charge a $25 fee to your account. To begin
participating in the Plan, please complete the Automatic Investment Plan
section on the account application or call the Fund’s transfer agent at
844-ARISTTL (1-844-274-7885) for instructions. Any request to change or
terminate your Automatic Investment Plan should be submitted to the
transfer agent 5 days prior to the effective
date. |
Forms
of Payment
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Acceptable
forms of payment |
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•Personal
checks or bank draft (cashier’s check, official bank check, or treasury
check) drawn on a U.S. bank;
•Money
orders and traveler’s checks in single denominations of more than $10,000
if they were to originate in a U.S. bank;
•Third-party
checks when there is a clear connection of the third party to the
underlying transaction; and
•Wire
transfers that originate in U.S. banks. |
Unacceptable
forms of payment |
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•Cash;
•Starter
checks;
•Credit
cards or checks drawn against a credit account;
•Money
orders or traveler’s checks in single denominations of $10,000 or less
from any institution;
•Personal
check, bank drafts, money orders, traveler’s checks, or wire transfers
drawn on non-U.S. banks, even if the payment were effected through a U.S.
bank; and
•Third-party
checks when there is not a clear connection of the third party to the
underlying transaction. |
All
checks must be in U.S. Dollars drawn on a domestic bank. The Fund will not
accept payment in cash or money orders. The Fund does not accept postdated
checks or any conditional order or payment. To prevent check fraud, the Fund
will not accept third-party checks, Treasury checks, credit card checks,
traveler’s checks or starter checks for the purchase of shares.
All
unacceptable forms of investment will be returned. The Trust reserves the right
to accept or reject any form of payment and to change its forms of investment
policy at any time. The
transfer agent will charge a $25 fee against a shareholder’s account, in
addition to any loss sustained by the Fund, for any payment that is returned. It
is the policy of the Fund not to accept applications under certain circumstances
or in amounts considered disadvantageous to shareholders. The Fund reserves the
right to reject any application.
Class
I Shares:
Class
I shares are generally offered through financial intermediaries (including, but
not limited to, broker-dealers, retirement plans, bank trust departments, and
financial advisers) who do not require payment from the Fund or its service
providers for the provision of distribution, administrative or shareholder
retention services, except for networking and/or omnibus account fees. Investors
in Class I shares, other than the individual investors noted above, may
generally not purchase, exchange or redeem shares of the Fund directly from the
Fund. Shares instead may be purchased, exchanged or redeemed only through such
financial intermediaries. Class I shares made available through full service
broker-dealers may be available through fee-based advisory relationships under
which such broker-dealers impose additional fees for services connected to the
account. Contact your financial intermediary or refer to your plan documents for
instructions on how to purchase, exchange or redeem shares.
Class
R6 and Class I-2:
Contact
your financial intermediary for instructions on how to purchase Class R6 or
Class I-2 shares.
The
Trust and the Distributor reserve the right to reject any request to buy
shares.
Contribution
Limits:
Accounts
such as Traditional or Roth IRAs and Coverdell ESAs have contribution limits
that should not be exceeded. If your account is a SIMPLE IRA, SEP IRA, SAR-SEP
or 403(b)(7), or if your account were owned by a qualified plan or an individual
401(k) account, contribution limits would also apply, and contributions by
personal check may not be appropriate. Consult your tax adviser for additional
information.
Class
A, Class C and Individual Investors of Class I Shares:
You
may redeem (sell) Fund shares by contacting your financial intermediary or the
Trust directly. Refer to the Medallion
Signature Guarantees
subsection below for additional guidelines that may be applicable.
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In
Writing: |
To
sell shares in writing, send a signed written request or signed
distribution form specifying the Fund name and share class, account
number, name(s) registered on the account and the dollar value or number
of shares you wish to sell. Shareholders who have an IRA or other
retirement plan must indicate on their written redemption request whether
or not to withhold federal income tax. Redemption requests failing to
indicate an election not to have tax withheld will generally be subject to
10% withholding. Signatures of all shareholders are required and must
match the account registration or the authorized signer on
file.
Regular
Mail:
Aristotle
Funds
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701
Overnight
Mail:
Aristotle
Funds
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, 3rd Floor
Milwaukee,
WI 53202
The
Funds do not consider the U.S. Postal Service or other independent
delivery services to be its agents. Therefore, deposit in the mail or with
such services, or receipt at U.S. Bancorp Fund Services, LLC post office
box, of purchase orders or redemption requests does not constitute receipt
by the Transfer Agent of the Fund. Receipt of purchase orders or
redemption requests is based on when the order is received at the Transfer
Agent’s offices. |
By
Telephone: |
You
may sell shares up to $100,000 in gross value by telephone on certain
account types by calling customer service at 844-ARISTTL (844-274-7885)
provided certain criteria are met. To disable this option, check the
appropriate box on your Account Application or the applicable
redemption/distribution form. Corporate investors and other associations
must have an appropriate certification on file authorizing redemptions.
Shares held in IRA and other retirement accounts may be redeemed by
telephone at 844-ARISTTL (844-274-7885). Investors will be asked whether
or not to withhold taxes from any distribution. |
SWP: |
You
can set up automatic monthly, quarterly, semi-annual or annual redemptions
on your account, as long as the value of the account is at least $5,000 at
the time the SWP is established. You may redeem a fixed dollar amount
(minimum $50), a fixed number of shares (five shares or more) or a whole
percentage of the account value, which will be applied to the account
value at the time of each SWP redemption in order to determine the
redemption amount. Please be aware that SWP redemptions may be subject to
a CDSC – see the CDSC
Waivers
subsection for applicable waivers. Because a CDSC may apply, it may not be
advantageous to you to make additional investments while participating in
a SWP. To establish a SWP, you must complete the appropriate sections on
the applicable form. You may receive this form from customer service by
calling customer service at 844-ARISTTL
(844-274-7885). You may terminate your participation in the SWP by calling
or writing the Transfer Agent at least five calendar days before the next
withdrawal. |
Proceeds
will be mailed to an address that has been on record for at least 15 calendar
days or can be sent to a third-party recipient if a letter of instruction,
signed by all authorized shareholders, and a Signature Guarantee were to
accompany the request. Proceeds can also be wired to a pre-designated bank
account (subject to a $10,000 minimum), normally by the business day following
receipt of your instructions. If payment of liquidation proceeds is to be made
by Fedwire transfer, a $15 wire fee applies. We do not assume responsibility for
additional charges that the receiving institution may impose. To receive
proceeds by wire, check the appropriate box on the Account Application or the
applicable redemption/distribution form and attach a pre-printed voided check.
We will not wire proceeds or account assets to a non-U.S. bank or financial
institution.
Depending
on the class of shares you own, a CDSC may apply. We may liquidate shares to
cover transfer agent fees, including account, wire or overnight delivery fees.
We may also close your account and sell your shares if your account value
(except for those Class I accounts where the minimum initial investment required
is $500,000) were to fall below the account minimum (which is the initial
investment minimum, as identified in the Purchasing Shares – Minimums section of
the Prospectus) for any reason, including as a result of a redemption, an
account charge and/or a reduction in the market value of your account. This may
result in a gain or loss for federal income tax purposes and the imposition of a
CDSC. Shareholders with such accounts will be provided notice and an opportunity
to raise their account value above investment minimums to avoid having their
account closed.
Electronic
Funds Transfer
– You can initiate an electronic funds transfer (“EFT”) for as little as $50 or
as much as $100,000 from your Aristotle Funds account to your bank account. To
set up an EFT, you must complete the Financial Institution Information on the
Account Application or the applicable redemption/distribution form.
Signature
Guarantees
– Signature guarantees will generally be accepted from domestic banks, brokers,
dealers, credit unions, national securities exchanges, registered securities
associations, clearing agencies and savings associations, as well as from
participants in the New York Stock Exchange Medallion Signature Program and the
Securities Transfer Agents Medallion Program (“STAMP”). A notary public is not
an acceptable signature guarantor.
A
signature guarantee, from either a Medallion program member or a non-Medallion
program member, is required in the following situations:
•If
ownership is being changed on your account;
•When
redemption proceeds are payable or sent to any person, address or bank account
not on record;
•When
a redemption request is received by the transfer agent and the account address
has changed within the last 15 calendar days;
•For
all redemptions in excess of $100,000 from any shareholder account.
The
Fund may waive any of the above requirements in certain instances. In addition
to the situations described above, the Fund(s) and/or the Transfer Agent reserve
the right to require a signature guarantee in other instances based on the
circumstances relative to the particular situation.
Non-financial
transactions, including establishing or modifying certain services on an
account, may require a signature guarantee, signature verification from a
Signature Validation Program member, or other acceptable form of authentication
from a financial institution source.
Class
I Shares:
Investors
in Class I shares, other than the individual investors noted above, may
generally not redeem Fund shares directly from the Fund. Contact your financial
intermediary or refer to your plan documents for instructions on how to redeem
shares.
Class
R6 and Class I-2:
Contact
your financial intermediary for instructions on how to redeem Class R6 or Class
I-2.
Election
Under Rule 18f-1
The
Trust, on behalf of each Fund included in this Prospectus, has made an election
pursuant to Rule 18f-1 under the 1940 Act committing each such Fund to pay in
cash any request for redemption received during any 90-day period of up to the
lesser of 1% of the Fund’s NAV at the beginning of the period. This election is
irrevocable without prior approval by the SEC. Each Fund reserves the right to
pay redemption proceeds in-kind except as described in the Other
Fund Information section
below.
Class
A, Class C and Individual Investors of Class I Shares:
The
Trust’s exchange privilege affords you the ability to switch your investments
among the various Funds of the Trust if you satisfy eligibility requirements for
that fund. Exchanges are considered sales and may result in a gain or loss for
federal and state income tax purposes. There are currently no additional sales
charges or fees for exchanges. Generally, you may exchange a minimum of $50
worth of shares of one Fund for shares of any other available Fund of the Trust
within the same share class for shares in an identically registered account,
provided that the Fund is accepting additional investments by such exchanges,
and the shareholder is a resident of a state in which shares of the Fund are
qualified for sale and qualifies to purchase shares of that Fund. For shares
subject to a CDSC, the CDSC period begins on the date of the initial investment
in the shares subject to a CDSC.
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In
Writing: |
To
exchange shares in writing, send a signed written request or signed
Investment Exchange Request form specifying the “from” and “to” Fund
names, account number, name(s) registered on the account and the dollar
value or number of shares you wish to exchange. Signatures of all
shareholders are required and must match the account registration or the
authorized signer on file. |
By
Telephone: |
You
may exchange shares by telephone on certain account types by calling
844-ARISTTL (844-274-7885) provided certain criteria are met. To disable
this option, check the appropriate box on your Account Application or the
applicable redemption/distribution form. Corporate investors and other
associations must have an appropriate certification on file authorizing
exchanges. |
Dollar
Cost Averaging
Dollar
cost averaging may be used to buy shares of the available Funds in a series of
regular purchases instead of in a single purchase. This allows you to average
the price you pay for shares over time and may permit a “smoothing” of abrupt
peaks and drops in price. You may use dollar cost averaging to transfer amounts
(via an exchange of shares), either on a monthly, quarterly, semi-annual or
annual basis, from any available Fund with a value of at least $1,000 to one or
more other available Funds. Each exchange must be for at least $50.
Dollar
cost averaging may only be requested in writing by sending a signed letter of
instruction or signed Account Maintenance Request form specifying the “from” and
“to” Fund names, account number, name(s) registered on the account and the
dollar value or number of shares you wish to exchange. Signatures of all
shareholders are required and must match the account registration or the
authorized signer on file.
Class
R6, Class I-2 and Institutional Investors of Class I Shares:
Contact
your financial intermediary to exchange these shares.
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ADDITIONAL
INFORMATION ABOUT FUND PERFORMANCE |
The
following provides additional explanations regarding information presented in
the Performance subsections of the Fund Summaries section. All Fund performance
information shown in this Prospectus is the performance of the relevant
predecessor fund that reorganized with and into such Fund on April 17, 2023 or
October 20, 2023 (each, a “Reorganization”). Each predecessor fund was managed
using investment policies, objectives, guidelines and restrictions that were
substantially similar to those of the corresponding Fund. Prior to April 17,
2023, none of the Funds had commenced operations. Aristotle Portfolio
Optimization Conservative Fund, Aristotle Portfolio Optimization Moderate
Conservative Fund, Aristotle Portfolio Optimization Moderate Fund, Aristotle
Portfolio Optimization Growth Fund, Aristotle Portfolio Optimization Aggressive
Growth Fund, Aristotle Ultra Short Fund, Aristotle Short Duration Fund,
Aristotle Core Income Fund, Aristotle ESG Core Bond Fund, Aristotle Strategic
Income Fund, Aristotle Floating Rate Income Fund, Aristotle High Yield Bond
Fund, Aristotle Small/Mid Cap Equity Fund, Aristotle Small Cap Equity Fund and
Aristotle Growth Equity Fund each commenced operations on April 17, 2023 in
connection with the Reorganization with the corresponding predecessor funds that
occurred on April 14, 2023. Aristotle International Equity Fund and Aristotle
Core Equity Fund commenced operations on April 17, 2023. Aristotle International
Equity Fund, Aristotle Core Equity Fund and Aristotle Small Cap Equity Fund were
merged with the corresponding predecessor funds in the Reorganization that
occurred on October 20, 2023. Aristotle Value Equity Fund and Aristotle/Saul
Global Equity Fund commenced operations on October 23, 2023 in connection with
the Reorganization with corresponding predecessor funds that occurred on October
20, 2023.
The
performance information presented in the bar charts and the average annual total
return tables were prepared assuming reinvestment of dividends and
distributions.
The
Portfolio Optimization Funds:
Because the performance of Portfolio Optimization Fund is a composite of the
performance of each the Underlying Funds in which it invests (which may include
cash equivalents, fixed income, domestic and/or international equities), there
is no one broad-based index to use as a comparison to a Portfolio Optimization
Fund’s performance. Therefore, we have provided information regarding the two
broad-based benchmark indices that correspond to the two broad asset classes in
which the Portfolio Optimization Funds invest, which are broad measures of
market performance, to use as a comparison to the performance shown for each
Portfolio Optimization Fund. In addition, as another performance comparison,
composite benchmarks were constructed for each Portfolio Optimization Fund. Each
benchmark is comprised of three or more broad-based indices. More information on
each benchmark is provided below.
Index
Definitions
The
following provides definitions of the indices presented in the Fund
Summaries section
of the Prospectus. The indices have inherent performance advantages over the
Funds because they hold no cash and incur no expenses. An investor cannot invest
directly in an index. The performance of an index does not reflect the deduction
of expenses associated with a Fund, such as investment management
fees.
Bloomberg
Short Treasury Total Return Index
is composed of all U.S. Treasuries that have a remaining maturity between one
and twelve months. Results include the reinvestment of all
distributions.
Bloomberg
US 1-3 Year Government/Credit Bond Index
measures the performance of a subset of the Bloomberg US Aggregate Bond Index
and includes investment grade U.S. dollar-denominated, fixed-rate Treasuries,
government-related and corporate securities with maturities of one to three
years. Results include the reinvestment of all distributions.
Bloomberg
US Aggregate Bond Index
measures the performance of the investment grade, U.S. dollar-denominated,
fixed-rate taxable bond market, which includes Treasuries, government-related
and corporate securities, mortgage-backed securities, asset-backed securities
and commercial mortgage-backed securities. Results include the reinvestment of
all distributions.
Bloomberg
US Corporate High-Yield Bond Index
measures the performance of the U.S. dollar-denominated, high yield, fixed-rate
corporate bond market. Securities are classified as high yield if the middle
rating of Moody's, Fitch and S&P is Ba1/BB+/BB+ or below. Bonds from issuers
with an emerging markets country risk, based on the index provider’s definition
of an emerging market country, are excluded. Results include the reinvestment of
all distributions.
Bloomberg
US High-Yield 2% Issuer Capped Bond Index
is an issuer-constrained version of the Bloomberg US Corporate High-Yield Bond
Index that covers the U.S. dollar-denominated, high yield, fixed-rate corporate
bond market and limits issuer exposures to a maximum of 2% and redistributes the
excess market value index-wide on a pro-rata basis. Results include the
reinvestment of all distributions.
Credit
Suisse Leveraged Loan Index
tracks the investable market of the U.S. dollar-denominated leveraged loan
market. It consists of issues rated “5B” or lower, meaning that the
highest-rated issues included in this index are Moody’s/S&P ratings of
Baa1/BB+ or Ba1/BBB+. All loans are funded term loans with a tenure of at least
one year and are made by issuers domiciled in developed countries. Results
include the reinvestment of all distributions.
ICE
BofA U.S. 3-Month Treasury Bill (“T-Bill”) Index
is an index comprised of a single issue purchased at the beginning of the month
and held for a full month. At the end of the month that issue is sold and rolled
into a newly selected issue. The issue selected at each month-end rebalancing is
the outstanding Treasury Bill that matures closest to, but not beyond, three
months from the rebalancing date. To qualify for selection, an issue must have
settled on or before the month-end rebalancing date. Results include the
reinvestment of all distributions.
MSCI
Europe, Australasia and Far East (“EAFE”) Index is
a free float-adjusted market capitalization weighted index that is designed to
measure the equity market performance of developed markets, excluding the U.S.
& Canada. As of December 31, 2022, the MSCI EAFE Index consists of the
following developed market country indices: Australia, Austria, Belgium,
Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the
Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland and the United Kingdom. Results include the reinvestment of
dividends after the deduction of withholding tax, applying the tax rate to
non-resident individuals who do not benefit from double taxation treaties.
MSCI
World Index is
a free float-adjusted market capitalization weighted index that is designed to
measure the equity market performance of developed markets, including the U.S.
& Canada. As of December 31, 2022, the MSCI World Index consists of the
following developed market country indices: Australia, Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the
Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland, the United Kingdom and the United States. Results include the
reinvestment of dividends after the deduction of withholding tax, applying the
tax rate to non-resident individuals who do not benefit from double taxation
treaties.
MSCI
All Country World (“ACWI”) Index is
a free float-adjusted market capitalization weighted index that is designed to
measure the equity market performance of developed and emerging markets. As of
December 31, 2022, the MSCI ACWI Index consists of the following developed
market country indices—Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New
Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United
Kingdom and the United States—and of the following emerging market country
indices—Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary,
India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland,
Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab
Emirates. Results include the reinvestment of dividends after the deduction of
withholding tax, applying the tax rate to non-resident individuals who do not
benefit from double taxation treaties.
MSCI
All Country World (“ACWI”) ex USA Index is
a free float-adjusted market capitalization weighted index that is designed to
measure the equity market performance of developed and emerging markets,
excluding the United States. As of December 31, 2022, the MSCI ACWI Index
consists of the following developed market country indices—Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel,
Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain,
Sweden, Switzerland and the United Kingdom—and of the following emerging market
country indices—Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece,
Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines,
Poland, Qatar, Saudi Arabia, South
Africa,
Taiwan, Thailand, Turkey and United Arab Emirates. Results include the
reinvestment of dividends after the deduction of withholding tax, applying the
tax rate to non-resident individuals who do not benefit from double taxation
treaties.
Aristotle
Portfolio Optimization Composite Benchmarks:
The composite benchmarks for the Portfolio Optimization Funds show the
performance of a combination of three or more broad-based market indices that
represent fixed income, domestic equity, international equity and cash asset
class categories in weights that are fixed and specific to each Fund. The
composition of each Fund’s composite benchmark is shown below. Results include
the reinvestment of all distributions.
Aristotle
Portfolio Optimization Conservative Composite Benchmark is
71% Bloomberg US Aggregate Bond, 17% S&P 500, 7% ICE BofA U.S. 3-Month
T-Bill, and 5% MSCI EAFE Indices.
Aristotle
Portfolio Optimization Moderate Conservative Composite Benchmark is
55% Bloomberg US Aggregate Bond, 30% S&P 500, 10% MSCI EAFE, and 5% ICE BofA
U.S. 3-Month T-Bill Indices.
Aristotle
Portfolio Optimization Moderate Composite Benchmark is
45% S&P 500, 38% Bloomberg US Aggregate Bond, 15% MSCI EAFE, and 2% ICE BofA
U.S. 3-Month T-Bill Indices.
Aristotle
Portfolio Optimization Growth Composite Benchmark
is
58% S&P 500, 23% Bloomberg US Aggregate Bond, and 19% MSCI EAFE Indices.
Aristotle
Portfolio Optimization Aggressive Growth Composite Benchmark is
69% S&P 500, 26% MSCI EAFE, and 5% Bloomberg US Aggregate Bond
Indices.
The
composite benchmarks for the Portfolio Optimization Funds are blended returns
calculated by the Trust using data values licensed from MSCI Inc. and others.
The SAI contains additional information on the limited relationship between MSCI
Inc. and the Trust.
Russell
1000®
Growth Index
measures the performance of the large capitalization growth segment of the U.S.
equity universe. It includes those Russell 1000®
Index companies that are considered more growth oriented relative to the overall
market as defined by the index provider. The Russell 1000®
Growth Index is constructed to provide a comprehensive and unbiased barometer
for the large capitalization growth segment. The Index is completely
reconstituted annually to ensure larger stocks do not distort the performance
and characteristics of the true large capitalization opportunity set and that
the represented companies continue to reflect growth characteristics. Results
include the reinvestment of all distributions.
Russell
1000®
Value Index
measures the performance of the large capitalization value segment of the U.S.
equity universe. It includes those Russell 1000®
Index companies that are considered more value oriented relative to the overall
market as defined by the index provider. The Russell 1000®
Value Index is constructed to provide a comprehensive and unbiased barometer for
the large capitalization value segment. The Index is completely reconstituted
annually to ensure larger stocks do not distort the performance and
characteristics of the true large capitalization opportunity set and that the
represented companies continue to reflect value characteristics. Results include
the reinvestment of all distributions.
Russell
2000®
Index
measures the performance of the small-capitalization segment of the U.S. equity
universe. It includes approximately 2,000 of the smallest securities based on a
combination of their market capitalization and current index membership. The
Russell 2000®
Index is constructed to provide a comprehensive and unbiased barometer for the
small-capitalization segment. The Index is completely reconstituted annually to
ensure larger stocks do not distort the performance and characteristics of the
true small-capitalization opportunity set. Results include the reinvestment of
all distributions.
Russell
2500®
Index
measures the performance of the small to mid-capitalization segment of the U.S.
equity universe, commonly referred to as “smid” cap. It includes approximately
2,500 of the smallest securities based on a combination of their market
capitalization and current index membership. The Russell 2500®
Index is constructed to provide a comprehensive and unbiased barometer for the
small to mid-capitalization segment. The Index is completely reconstituted
annually to ensure larger stocks do not distort the performance and
characteristics of the true small to mid-capitalization opportunity set. Results
include the reinvestment of all distributions.
S&P
500®
Index
is a capitalization-weighted index of 500 stocks. The Index is designed to
measure performance of the broad domestic economy through changes in the
aggregate market value of 500 stocks representing all major industries. Results
include the reinvestment of all distributions.
Frank
Russell Company and the London Stock Exchange Group companies (together the
“Licensor Parties”) are the source and owner of the trademarks, service marks
and copyrights related to each Russell®
index. No further distribution of a Russell®
index is permitted without the Licensor Parties’ express written consent, and
the Licensor Parties do not promote, sponsor or endorse the content of this
communication. All other third-party trademarks and service marks belong to
their respective owners.
Execution
of Your Requests
Purchase,
exchange and sale orders for accounts held directly with the Trust are executed
at the next NAV, plus or minus any applicable sales charges, determined after
the transfer agent of the Trust receives an order in proper form at its
processing location in Milwaukee, WI. Purchase, exchange and sale orders for
accounts held with a financial intermediary are executed at the next NAV, plus
or minus any applicable sales charges, determined after the order is received by
the financial intermediary in proper form. The NAV per share plus any applicable
sales charge is also known as the “offering price.” Systematic withdrawals
scheduled to fall on a month end (including year-end withdrawals) which is a
weekend or holiday, will be deemed an order for the last business day of that
month. If you were to purchase by wire, the order would be deemed to be in
proper form after the Account Application, telephone notification and the
federal funds wire have been received. If an order or payment by wire were
received after the scheduled close of the New York Stock Exchange (“NYSE”),
which usually closes at 4:00 p.m. Eastern time, the shares would not be credited
until the next business day. Thus, orders
received in proper form prior to the NYSE close receive that day’s NAV; orders
received after the NYSE close receive the following business day’s
NAV.
This order
acceptance
cut-off also applies when the NYSE has a scheduled or unscheduled early close.
You will receive a confirmation of each transaction in your account. You may
rely on these confirmations in lieu of certificates as evidence of your
ownership. Certificates representing shares of the Funds will not be issued.
Your financial intermediary can provide you with more information regarding the
time you must submit your purchase order and whether your intermediary is an
“authorized” agent or designee for the receipt of purchase and redemption
orders.
Under
normal conditions, we typically expect to pay redemption proceeds within three
business days following the receipt of your redemption request in proper form.
However, we have the right to take up to seven days to pay redemption proceeds
and may postpone payment longer in the event of unusual circumstances as
permitted by applicable law or an economic emergency as determined by the SEC.
When you sell shares, we will execute your request at the next determined NAV
per share; however, if the shares that were redeemed were recently purchased by
electronic funds transfer or check, we will send your redemption proceeds as
soon as the funds are received via transfer or the check clears, which may take
up to 15 calendar days from the purchase date. This delay is necessary to ensure
that the purchase has cleared. To reduce such delay, you should make investments
by bank wire or federal funds.
We
normally will pay cash for all Fund shares you sell using the Fund’s existing
cash positions, cash flows, cash reserves or cash generated through the sale of
portfolio securities. The Trust has also adopted a process under which it may
make redemptions-in-kind to shareholders (except for shareholders of a Portfolio
Optimization Fund). Redemptions-in-kind are redemptions where some or all of the
redemption payment is in securities at their then current market value equal to
the redemption price minus any applicable charges. Generally, a pro-rata slice
of each security in the portfolio would be allocated to the shareholder to meet
the redemption request with any balance paid in cash or other transferable
securities.
A
pro rata slice of any illiquid holdings or restricted securities would be
included if it is reasonable that the redeeming shareholder could hold those
securities. Any exceptions granted to this pro-rata methodology would be based
on the Trust’s redemption-in-kind policy and require a finding that the proposed
non-pro rata distribution is fair and non-discriminatory both to the redeeming
shareholder and the respective Fund. When making a redemption payment in cash
becomes harmful to remaining shareholders of a Fund, whether during normal or
stressed market conditions, redemptions-in-kind may be made. A shareholder
receiving a redemption-in-kind will bear market risk while holding such
securities and incur transaction costs upon converting the securities to cash.
During stressed market conditions, the Fund may be forced to sell portfolio
securities at reduced prices or under unfavorable conditions in order to meet
redemption requests, which could dilute the interests of the Fund’s remaining
shareholders and reduce the value of a Fund.
You
should review your account statements immediately upon receipt and contact the
Funds (if shares are held directly) or your financial intermediary to report any
transaction discrepancies within 45 days, or you may forfeit the ability to
challenge transaction information.
Telephone
Instructions
– Unless you elect not to have telephone exchange and/or sale privileges, they
will automatically be available to you. You may modify or discontinue telephone
privileges at any time. You may reinstate these privileges in writing. In order
to arrange for telephone redemptions after an account has been opened or to
change the bank account or address designated to receive redemption proceeds, a
written request must be sent to the transfer agent. The request must be signed
by each shareholder of the account and may require a signature guarantee,
signature verification from a Signature Validation Program member, or other form
of signature authentication from a financial institution source. Further
documentation may be requested from corporations, executors, administrators,
trustees and guardians. An exchange or sale request must be received and
confirmed prior to the scheduled close of the NYSE, which usually closes at 4:00
pm Eastern time, in order to receive the NAV calculated on that day. If an order
is received and/or confirmed after the scheduled close of the NYSE, the order
will receive the NAV calculated on the next business day. You may also transact
purchases by telephone if you have established EFT on your account and your
request is received in proper form. A telephone purchase request is considered
to be in proper form if it is received and confirmed prior to the scheduled
close of the NYSE, which usually closes at 4:00 pm Eastern time, and the EFT can
be initiated, which requires overnight processing. Because of this, purchase
requests generally will receive the NAV calculated on the next business day.
Procedures have been established that are reasonably designed to confirm that
instructions communicated by telephone are genuine. These procedures may include
requiring any person requesting a telephone transaction to provide specific
identifying information or recording of the telephone conversation. A written
confirmation will be sent to the shareholder(s) of record following a telephone
transaction. The Trust or its designee is authorized to act upon instructions
received by telephone and you agree that, so long as the procedures are
followed, you will hold harmless and indemnify the Trust and/or its
administrator or sub-administrator; any of its affiliates; and each of their
respective directors, trustees, officers, employees and agents from any losses,
expenses, costs or liability (including attorney fees) that may be incurred in
connection with these instructions or the exercise of the telephone privileges.
This means that so long as the procedures are followed, you will bear the risk
of loss on telephone transaction requests. The Trust or its designee reserves
the right to deny any transaction request made by telephone. You will be
notified immediately if your request cannot be processed over the telephone.
During periods of high market activity, shareholders may encounter higher than
usual call waits. Please allow sufficient time to place your telephone
transaction. If an account has more than one owner or authorized person, the
Fund will accept telephone instructions from any one owner or authorized person.
Proceeds from telephone transactions will only be mailed to your address of
record or sent (via federal funds wire or electronic funds transfer) to your
pre-established bank of record. Telephone privileges are not available for all
account types. Contact Aristotle Funds for information on
availability.
How
Share Prices Are Calculated
Valuation
Policy
The
Trust’s Board has adopted a policy (“Valuation Policy”) for determining the
value of the investments of each Fund of the Trust each business day. Under the
Valuation Policy and pursuant to regulatory authority, the Board has designated
AIS as its “valuation designee” for fair valuation determinations. AIS’s
Valuation Oversight Committee (“VOC”) values the Funds’ investments in
accordance with the Valuation Policy. The methodologies used to value the Funds’
investments are described in greater detail in the Investment
Valuation
subsection below.
Determination
of NAV
Each
Fund of the Trust is divided into shares and share classes, if applicable. The
price per share of each class of a Fund’s shares is called its NAV, which is
determined by taking the total value of its investments and other assets,
subtracting any liabilities, and dividing by the total number of shares
outstanding.
When
you buy shares, you pay the NAV (plus any applicable charges). When you sell
shares, you receive the NAV (minus any applicable charges). Exchange orders
within the Funds are effected at NAV (with any applicable charges). Each Fund’s
shares are purchased, sold or exchanged at the Fund’s NAV next calculated after
a request to buy, sell or exchange shares is received by the Trust or its
designee in proper form. However, as noted above, a Fund may pay for a sale, in
whole or in part, by a distribution of investments from a Fund (other than a
Portfolio Optimization Fund), in lieu of cash, in accordance with applicable
rules and Trust Procedures.
The
NAVs are calculated once per day on each day that the NYSE is open, including
days when foreign markets and/or bond markets are closed. Each NAV is generally
determined as of the close of trading of the NYSE (typically 4:00 p.m. Eastern
Time) on days that the NYSE is open. Information that becomes known to the Trust
or its agents after the determination of a NAV on a particular day will not
normally be used to retroactively adjust the price of a Fund’s investment or the
NAV determined earlier that day. Such information may include late dividend
notifications, legal or regulatory matters, corporate actions, and
corrected/adjusted last sales prices or official closing prices from an
exchange.
The
NAVs will not be calculated on days when the NYSE is closed. There may be a
delay in calculating the NAV if: (i) the NYSE is closed on a day other than a
NYSE scheduled holiday or weekend, (ii) trading on the NYSE is restricted or
halted, (iii) an emergency exists (as determined by the U.S. Securities and
Exchange Commission (“SEC”), making the sale of investments or determinations of
NAV not practicable, or (iv) the SEC permits a delay for the protection of
shareholders.
Based
on information obtained from the NYSE, it is anticipated that the NYSE will be
closed when the following annual holidays are observed: New Year’s Day; Martin
Luther King, Jr. Day; Washington’s Birthday; Good Friday; Memorial Day;
Juneteenth; Independence Day; Labor Day; Thanksgiving Day; and Christmas Day.
The NYSE is normally closed on the preceding Friday or subsequent Monday when
one of these holidays falls on a Saturday or Sunday, respectively. In addition,
the NYSE typically closes early (usually 1:00 p.m. Eastern Time) on the day
after Thanksgiving Day and the day before Christmas Day. Although the Trust
expects the same holidays to be observed in the future, the NYSE may modify its
holiday schedule or hours of operation at any time.
Certain
Funds may hold investments that are primarily listed on foreign exchanges.
Because those investments trade on weekends or other days when the Funds do not
calculate their NAVs, the value of those investments may change on days when a
shareholder will not be able to purchase or redeem shares of those
Funds.
In
the event the NYSE closes prior to 4:00 p.m. Eastern Time, whether due to a
scheduled or unscheduled early close, certain other markets or exchanges may
remain open. Generally, the valuation of the securities in those markets or
exchanges will follow the valuation procedures described below, which may be
after the official closing time of the NYSE.
Investment
Valuation
Investments
for which market quotations are readily available are valued at market value.
Investments in Underlying Funds that are open-end registered investment
companies that do not trade on an exchange are valued at the end of day NAV per
share. When a market quotation for a portfolio holding is not readily available
or is deemed unreliable (for example, when trading has been halted or there are
unexpected market closures or other material events that would suggest that the
market quotation is unreliable) and for purposes of determining the value of
other portfolio holdings, the portfolio holding is priced at its fair value. The
Board has designated AIS, as the valuation designee, to make fair value
determinations in good faith.
In
determining the fair value of a Fund’s portfolio holdings, AIS, pursuant to its
fair valuation policy, may consider inputs from pricing service providers,
broker-dealers, or a Fund’s sub-adviser. Issuer specific events, transaction
price, position size, nature and duration of restrictions on disposition of the
security, market trends, bid/ask quotes of brokers, and other market data may be
reviewed in the course of making a good faith determination of the fair value of
a portfolio holding. Because of the inherent uncertainties of fair valuation,
the values used to determine each Fund’s NAV may materially differ from the
value received upon actual sale of those investments. Thus, fair valuation may
have an unintended dilutive or accretive effect on the value of shareholders’
investments in each Fund.
Security
and Shareholder Protection
To
help fight the funding of terrorism and money laundering activities, federal law
generally requires financial institutions to obtain, verify and record
information identifying each person who opens an account and to determine
whether such person’s name appears on any governmental agency list of suspected
terrorists or terrorist organizations. The Trust may report certain transaction
activity to the government. When you open an account, you may be required to
provide your full name, date of birth, physical residential address (although
post office boxes are still permitted for mailing purposes) and Social Security
or tax identification number. You may also need to provide your driver’s
license, passport or other identifying documents, and corporations and other
non-natural persons may have to provide additional identifying information. Not
providing this information may result in incomplete orders and transactions,
failure to open your account, delayed or unprocessed transactions or account
closure. These requirements and procedures may change from time to time to
comply with government regulations or guidance.
Prevention
of Disruptive Trading
Most
Funds are not intended to serve as a vehicle for frequent trading in response to
short-term fluctuations in the market. Frequent short-term trading or trades
that involve relatively large amounts of assets in response to short-term
fluctuations in the market can disrupt the management of a Fund and can raise
expenses through increased trading and transaction costs, forced and unplanned
portfolio turnover, lost opportunity costs, and large asset swings that decrease
the Fund’s ability to provide maximum investment return to all shareholders. In
addition, certain trading activity that attempts to take advantage of
inefficiencies in the valuation of a Fund’s securities holdings may dilute the
interests of the remaining shareholders. This in turn can have an adverse effect
on the Fund’s performance. While these issues can occur in connection with any
of the Funds, Funds holding securities that are subject to market pricing
inefficiencies could be more susceptible to abuse. Accordingly, the Board
adopted a policy with respect to certain limitations on exchanges.
The
Trust requires that the limitations specified below on exchanges apply to all
persons (i.e.,
to natural persons, partnerships, corporations, limited liability companies,
trusts or any other type of entity) investing in the Funds of the
Trust.
To
discourage frequent trading, you:
•may
not make more than 12 exchanges out of each of the Fixed Income Funds or Equity
Funds per calendar year.
•For
clarification purposes, multiple exchanges out of the same Fixed Income Fund or
Equity Fund on the same trading day count as one exchange.
The
Trust does not accommodate trading in excess of these limitations. The exchange
limitations outlined above will not apply to the following
transactions:
•exchanges
from a Fund that seeks to achieve its investment goal by investing primarily in
other Funds of the Trust;
•redemptions
from a Fund;
•exchanges
from Aristotle Ultra Short Income Fund;
•exchanges
from one share class to another share class of the same Fund (share class
conversions);
•systematic
transactions (dollar cost averaging, dividend reinvestments, automatic
investment plans);
•loans
and loan repayments; or
•transactions
by omnibus accounts, provided the omnibus provider has its own trading policy
which is reasonably designed to prevent disruptive trading activity (as
determined by the Trust and the Adviser).
While
these policies have been adopted to attempt to detect and limit trading that is
frequent or disruptive to the Funds’ operations, there is no assurance that the
policies would be effective in deterring all such trading activity.
Organizations
and individuals that use market timing investment strategies and make frequent
exchanges should not invest in Funds of the Trust. The Trust maintains sole
discretion to restrict or reject, without prior notice, any exchange
instructions and to restrict or reject pre-authorized exchange forms from a
market timing organization or individual authorized to give exchange
instructions on behalf of multiple shareholders, if in the sole discretion of
the Trust (or its agent) the requested transactions were to have a negative
impact on remaining shareholders.
The
Trust might limit the size, number, and frequency of exchanges if they were to
be disruptive to the management of a Fund. The Trust may also otherwise
restrict, suspend, or reject any exchange request or privilege that could be
harmful to a Fund or to other shareholders, or cancel the exchange privilege
altogether. Notice of any limitations, restrictions, suspensions or rejections
may vary according to the particular circumstances.
The
Trust is unable to directly monitor the trading activity of beneficial owners
who hold shares of the Fixed Income Funds or Equity Funds through omnibus
accounts (i.e.,
accounts that are not on the books of the Trust’s transfer agent, for example,
third-party 401(k) and other group retirement plans) maintained by financial
intermediaries.
Omnibus
account arrangements enable financial intermediaries to aggregate share
ownership positions of multiple investors and purchase, redeem and exchange
shares without the identity of the particular shareholder(s) being known to the
Trust. Accordingly, the ability of the Trust to monitor, detect or limit
frequent share trading activity through omnibus accounts is limited. In such
cases, the Trust or its agent(s) may request from financial intermediaries’
information that differs from that which is normally available to the Trust or
its agent(s). In such instances, the Trust will seek to monitor purchase and
redemption activity through the overall omnibus account(s) or retirement and
benefit plan account(s). If the Trust identifies activity that might be
indicative of excessive short-term trading activity, the Trust or its designated
agent will notify the applicable financial intermediary or retirement and
benefit plan and request that it provide or review information on individual
account transactions so that the Trust or the financial intermediary or
retirement and benefit plan can determine if any investors were engaging in
excessive short-term trading activity. If an investor is identified as engaging
in undesirable trading activity, the Trust or its designated agent will request
that the financial intermediary or retirement and benefit plan take appropriate
action to curtail the activity and will also work with the relevant party to do
so. Such actions may include actions similar to those that the Trust would take
such as placing blocks on accounts to prohibit future purchases and exchanges of
a Fund’s shares, or requiring that the investor place trades on a manual basis,
either indefinitely or for a period of time. If the Trust determines that the
financial intermediary or retirement and benefit plan has not demonstrated
adequately that it has taken appropriate action to curtail the excessive
short-term trading, the Trust or its agent(s) may terminate the relationship.
Although these measures are available, there is no assurance that the Trust or
its agent(s) will be able to identify shareholders who may be engaging in
frequent trading activity through omnibus accounts or to curtail such
trading.
Retirement
and benefit plans include qualified and non-qualified retirement plans, deferred
compensation plans and certain other employer sponsored retirement, savings or
benefits plans, excluding Individual Retirement Accounts.
Dividends
and Distributions
Each
Fund intends to distribute substantially all of its net investment income, as
described in the schedule below, and distribute realized capital gains, if any,
to shareholders at least annually, although distributions could occur more or
less frequently if it is advantageous to the specific Fund and to its
shareholders.
Dividends
on net investment income, if any, are generally distributed according to the
following schedule, although distributions could occur more or less frequently
if it is advantageous to the specific Fund and to its shareholders:
•Portfolio
Optimization Funds and Equity Funds – dividends, if any, are generally declared
and paid annually.
•Fixed
Income Funds (except Aristotle Floating Rate Income Fund and Aristotle Ultra
Short Income Fund) – dividends, if any, are generally declared and paid
monthly.
•Aristotle
Floating Rate Income Fund and Aristotle Ultra Short Income Fund – dividends, if
any, are generally declared daily and paid monthly.
Pursuant
to the Trust’s reinvestment plan, all dividend and capital gains distributions
will be automatically reinvested into additional shares of the same class of the
same Fund, unless you instruct us otherwise in the Account Application.
Dividends and capital gains may also be directed to another available Fund
within the same account if you meet that Fund’s minimum balance requirement and
it must be for the same share class as the originating Fund. No sales charge or
CDSC will apply to the reinvested amounts. You may change your election by
writing or calling the Transfer Agent at least five days prior to the record
date of the next distribution.
Distribution
and Servicing Arrangements
Sales
and servicing commissions
The
Distributor pays broker-dealers that sell shares of the Funds various forms of
sales and servicing compensation as described in the SAI. The Distributor pays a
sales commission for selling Fund shares and a trail commission for servicing
Fund shareholders. Trail commissions may take into account, among other things,
the length of time the Funds’ shares have been held, your account value, and the
share class purchased. The Distributor receives compensation from sales charges
and distribution and service fees from the Trust’s Distribution and/or Service
Plans. See the SAI for details of sales and servicing commission
amounts.
Sales-based
payments, including sales commissions, primarily create incentives to make new
sales of Fund shares; asset-based payments, including trail commissions, create
incentives to retain previously sold Fund shares in investor
accounts.
Unaffiliated
financial intermediary payments
AIS
or its affiliates may pay amounts from their own resources (up to 0.25% of
account value, or a fixed dollar amount for each account, on an annual basis) to
compensate or reimburse unaffiliated financial intermediaries for administrative
services and transfer agency functions provided to certain shareholders of the
Funds (to the extent the Trust does not pay for such costs directly) such as
plans (and plan participants) or other omnibus accounts (and beneficial owners).
These administrative services and transfer agency functions include, among other
services, acting as shareholder of record, processing purchase and redemption
orders, answering questions, establishing and maintaining individual account
records (e.g.,
sub-accounting, cost basis reporting, beneficial owner account statements), and
delivering account statements, applicable tax forms, and proxy materials to
beneficial owners.
Information
about your broker
The
financial intermediary (your broker), who is responsible for selling the Funds’
shares to you, typically receives a portion of the compensation that is payable
to the selling group member with which he or she is associated, depending on the
agreement between your financial intermediary and his or her firm. The
Distributor and the Trust are not involved in determining that compensation
arrangement which may present its own incentives or conflicts. You may ask your
financial intermediary how he or she will personally be compensated for the
transaction.
AIS
and its affiliates may have other relationships with your brokerage firm
relating to the provisions of the service to the Trust, such as providing
omnibus account services, transaction processing service or effecting portfolio
transactions for Funds. If your brokerage firm provides these services, the
investment adviser or the Trust may compensate the firm for these services. In
addition, your brokerage firm may have other compensation relationships with the
investment adviser or its affiliates that are not related to the
Trust.
Additional
information
The
compensation that is described in this section as well as in the SAI, and any
other compensation or benefits provided by AIS, the Distributor or its
affiliates may be more or less than the overall compensation paid to selling
group members on similar or other products and may influence your financial
intermediary, broker-dealer, or other financial intermediaries to present or
make available Aristotle Funds over other investment options in the marketplace.
You should ask your financial intermediary how they are compensated for selling
shares of the Trust. Please refer to the SAI for additional details on
distribution and servicing arrangements, other compensation and allowances, and
revenue sharing payments.
General
Summary of Tax Consequences
The
following discussion relates only to U.S. federal income tax. Refer to the SAI
for additional U.S. federal income tax information. The consequences under other
tax laws may differ. You should consult with your tax adviser regarding the
possible application of foreign, state, and local income tax laws to Fund
dividends and capital gains distributions. Aristotle Funds, its Distributor
(Foreside Financial Services, LLC), its Administrator (AIS), its
Sub-Administrator (U.S. Bank Global Fund Services) and each of their respective
affiliates and representatives do not provide tax, accounting or legal advice.
Any taxpayer should seek advice based on the taxpayer’s particular circumstances
from an independent tax adviser.
Each
Fund will distribute substantially all of its income and realized capital gains
to its shareholders every year. These distributions may be taxed as either
ordinary income, “qualified dividends,” or long-term capital gains. Federal
income taxes on capital gains distributions are determined by how long the Fund
owned the investments that generated the gains, not how long a shareholder has
owned the shares, and there is no requirement that the Funds take into
consideration any tax implications when implementing their investment
strategies. Funds with high portfolio turnover may realize gains at an earlier
time than Funds with a lower turnover and may not hold securities long enough to
obtain the benefit of long-term capital gains tax rates. All distributions paid
by a Fund will generally be taxable to you regardless of whether they are paid
in cash or reinvested in additional shares of the Fund. Shareholders should note
that a Fund may have distributions of income and capital gains to shareholders,
which will be taxable to shareholders, even when share values have
declined.
Generally,
shareholders are subject to U.S. federal income tax on Fund dividends or
distributions or on sales or exchanges of Fund shares. However, shareholders
that are exempt from U.S. federal income tax, such as retirement plans that are
qualified under Section 401 of the IRC, generally are not subject to U.S.
federal income tax on Fund dividends or distributions or on sales or exchanges
of Fund shares within such tax-exempt accounts. Accordingly, a plan participant
whose retirement plan invests in a Fund generally is not taxed on dividends or
distributions received by the plan or on sales or exchanges of shares of a Fund
by the plan for U.S. federal income tax purposes. However, distributions to plan
participants from a retirement plan generally are taxable to plan participants
as ordinary income and may be subject to a 10% federal penalty tax if taken
prior to the age of 59 1⁄2.
Currently,
the maximum tax rate for individual taxpayers on long-term capital gains and
qualified dividends is either 15% or 20%, depending on whether the individual’s
income exceeds certain threshold amounts. This rate does not apply to corporate
taxpayers. Distributions of earnings from non-qualifying dividends, income with
respect to swaps, interest income and short-term capital gains will be taxed at
the taxpayer’s ordinary income tax rate. Distributions from Funds investing in
bonds and other debt instruments or swaps will not generally qualify for the
lower rates. Funds that invest in companies not paying significant dividends on
their stock will not generally derive much qualifying dividend income that is
eligible for the lower rate on qualified dividends. In addition, certain
holdings period requirements must be satisfied by both a Fund and shareholder in
order to be eligible for lower rates on qualified dividends.
A
Fund’s transactions in derivatives will be subject to special tax rules, which
may result in a higher percentage of the Fund’s distributions being taxed to
shareholders at ordinary income rates than if the Fund did not invest in
derivatives.
An
additional 3.8% Medicare tax is imposed on certain net investment income
(including ordinary dividends and capital gain distributions received from a
Fund and net gains from redemptions or other taxable dispositions of Fund
shares) of U.S. individuals, estates and trusts to the extent that such person’s
“modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds certain threshold
amounts.
You
will generally be subject to tax on distributions paid from income or gains
earned prior to your investment, which are included in the share price you pay.
For example, if you were to buy shares on or just before the record date of a
Fund distribution, you would pay full price for the shares and may receive a
portion of your investment back as a taxable distribution. If a Fund were to
declare a distribution in October, November or December but pay it in January,
you generally would be taxed on the amount of the distribution as if you were to
receive it in the previous year. Any gain resulting from selling or exchanging
shares will generally be subject to U.S. federal income tax. Any such gain or
loss upon a sale, redemption, or exchange of shares would be a capital gain or
loss if you were to hold the shares as a capital asset at the time of the sale,
redemption, or exchange. This gain or loss would generally be a long-term
capital gain or loss if you were to hold the shares for more than one year;
otherwise, such gain or loss would generally be a short-term capital gain or
loss.
You
must provide your correct taxpayer identification number and certify that you
are not subject to backup withholding for each Fund in which you invest. If not,
the Fund would be required to withhold a portion of your taxable distributions
and redemption proceeds as backup withholding. The backup withholding rate is
currently 24%. Backup withholding is not an additional tax and any amount
withheld may be credited against your U.S. federal income tax liability.
The
Portfolio Optimization Funds can have income, gains or losses from any
distributions or redemptions in the Underlying Funds. Distributions of the
long-term capital gains of the Portfolio Optimization Funds or the Underlying
Funds will generally be taxed as long-term capital gains. Other distributions,
including short-term capital gains, will be taxed as ordinary income.
None
of the Portfolio Optimization Funds can use gains distributed by one Underlying
Fund to offset losses in another Underlying Fund. Redemptions of shares in an
Underlying Fund, including those resulting from allocation changes, could also
cause additional distributable gains to shareholders, a portion of which may be
short-term capital gains distributable as ordinary income. Further, a portion of
any losses on Underlying Fund share redemptions may be deferred under the “wash
sale” rules. As a result of these factors, the Portfolio Optimization Funds’
“fund of funds” structure could affect the amount, timing and character of
distributions to shareholders. The Portfolio Optimization Funds may be able to
pass through from the Underlying Funds any potential benefit from the foreign
tax credit or income from certain federal obligations (that may be exempt from
state tax).
Document
Delivery
Shareholder
Mailings
To
help reduce Fund expenses, environmental waste and the volume of mail you
receive, only one copy of Aristotle Funds’ shareholder documents (such as the
Prospectus, supplements, announcements, and if applicable, each annual and
semi-annual report) may be mailed to shareholders who share the same household
address (“Householding”). You may elect to not participate in Householding by
contacting the Trust or by opting out via the Account Application. If you are
not currently participating in Householding, you may elect to do so by writing
to Aristotle Funds. The current shareholder documents are available on the
Trust’s website at any time or an individual copy of any of these documents may
be requested as described on the back cover of this Prospectus.
Unless
you have enrolled in electronic delivery (see below), or previously elected to
receive paper copies, the Trust’s annual and semi-annual reports will not be
mailed to you. Instead, the reports will be made available on a website, and you
will be notified by mail each time a report is posted and provided with a
website link to access the report. You may elect to receive paper copies of
future reports, free of charge, by contacting the Trust or your financial
intermediary.
Unclaimed
Property
It
is the shareholder’s responsibility to ensure that the Trust maintains a correct
address for his or her account(s). If the Trust, or its transfer agent, is
unable to locate a shareholder, it may determine that the shareholder’s account
legally has been abandoned. In addition, if your account has no activity in it
for a certain period of time, or the Trust or its transfer agent have had no
contact with you and are unable to contact you regarding your account pursuant
to time periods set forth by certain state regulations, the Trust may be
required to transfer the assets in your account to the appropriate state under
its unclaimed property laws.
If
you are a resident of the state of Texas, you have the right to designate a
representative for the purposes of receiving notices if your account has been
determined to be abandoned. Please contact the Trust or its transfer agent if
you wish to complete a Texas designation of representation form.
If
you have previously elected to receive dividend and/or capital gains
distributions via check to your address of record instead of being automatically
reinvested in your account, and the check(s) are returned to us for non-delivery
or remain uncashed for six months, we will change
your
existing account distribution election to automatically reinvest any and all
future distributions into your account until you provide a new address. In
addition, following the six-month period, any returned and/or uncashed checks
may be canceled, and the amount of the check will be invested in your account.
No interest will accrue on any such amounts.
Electronic
Delivery Consent
Subject
to availability and/or current regulations, you may authorize the Trust to
provide prospectuses, prospectus supplements, annual and semi-annual reports,
quarterly statements and confirmations, proxy statements, privacy notice and
other notices and documentation in electronic format when available instead of
receiving paper copies of these documents by U.S. mail. You may enroll in this
service by indicating so on the Account Application, or by sending us
instructions (in writing in a form acceptable to us) of your request to receive
such documents electronically, or subject to availability, via our Internet
website. Not all account documentation and notifications may be currently
available in electronic format. You will continue to receive paper copies of any
documents and notifications not available in electronic format by U.S. mail. By
enrolling in this service, you consent to receive in electronic format any
documents added in the future. For jointly owned accounts, both owners are
consenting to receive information electronically. Documents will be available on
our Internet website. As documents become available, we will notify you of this
by sending you an e-mail message that will include instructions on how
to
retrieve the document. You must have ready access to a computer with Internet
access, an active e-mail account to receive this information electronically, and
the ability to read and retain it. You may access and print all documents
provided through this service.
If
you plan on enrolling in this service, or are currently enrolled, please note
that:
•We
impose no additional charge for electronic delivery, although your Internet
provider may charge for Internet access.
•You
must provide a current e-mail address and notify the Trust promptly when your
e-mail address changes.
•You
must update any e-mail filters that may prevent you from receiving e-mail
notifications from the Trust.
•You
may request a paper copy of the information at any time for no charge, even
though you consented to electronic delivery, or if you decide to revoke your
consent.
•For
jointly owned accounts, both owners are consenting that the primary owner will
receive information electronically. (Only the primary owner will receive e-mail
notices.)
•Electronic
delivery will be canceled if e-mails are returned undeliverable.
•This
consent will remain in effect until you revoke it.
The
Trust is not required to deliver this information electronically and may
discontinue electronic delivery in whole or in part at any time. If you are
currently enrolled in this service, please call customer service at 844-ARISTTL
(844-274-7885) if you would like to revoke your consent, wish to receive a paper
copy of the information above, or need to update your e-mail
address.
Trust
Organization
Aristotle
Funds Series Trust, which is organized as a Delaware statutory trust, may be
referred to as “Aristotle Funds,” the “Trust” or “We.” Its business and affairs
are managed by its Board. The Trust is comprised of multiple Funds. Each Fund
intends to qualify each year as a regulated investment company under Subchapter
M of the IRC. Funds that qualify do not have to pay income tax as long as they
distribute sufficient taxable income and net capital gains. The Trust may
discontinue offering shares of any Fund at any time or may offer shares of a new
Fund.
This
section provides information about Aristotle Investment Services, LLC, the
investment adviser and administrator to the Trust, and the sub-adviser firms
that manage the Funds offered in this Prospectus. Aristotle Investment Services,
LLC and the sub-advisers are each a “Manager” and together the “Managers.”
AIS
Aristotle
Investment Services, LLC (“AIS”), a Delaware limited liability company, is
located at 11100 Santa Monica Blvd., Suite 1700, Los Angeles, CA 90025. AIS is
registered with the SEC as an investment adviser. AIS was founded in 2022 as a
wholly-owned subsidiary of Aristotle Capital and has approximately $10.8 billion
in assets under management as of June 30, 2023, all of which are assets of the
Funds. Aristotle Capital is a privately owned, registered investment adviser
that specializes in equity portfolio management for institutional and individual
clients. Aristotle Capital is majority owned by employees and the Board of
Managers. Aristotle Capital has approximately $48.6 billion in assets under
management as of December 31, 2022.
In
its role as investment adviser and administrator, AIS, subject to the review of
the Board, supervises the investment activities of the Funds and the Funds’
business affairs and other administrative matters. AIS has retained other
management firms as sub-advisers for the Funds, many of which have a worldwide
market presence and extensive research capabilities, and each of which are
subsidiaries of Aristotle Capital and affiliated with AIS. AIS has the ultimate
responsibility, subject to the review of the Board, to oversee and monitor the
performance of these sub-advisers and recommends their hiring, termination and
replacement.
AIS
also oversees and monitors the nature and quality of the services provided by
the sub-advisers, including investment performance and execution of investment
strategies. AIS conducts due diligence on sub-advisers to evaluate their
investment processes, adherence to investment styles, strategies and techniques,
and other factors that may be relevant to the services provided to the Funds.
For all Funds, AIS also performs compliance monitoring services to help maintain
compliance with applicable laws and regulations. AIS also provides services
related to, among others, the valuation of Fund securities, risk management, and
oversight of trade execution and brokerage services.
Management
Fee
Each
Fund pays AIS an annual combined Management Fee, consisting of an advisory fee
and supervision and administration fee, for services it requires under what is
essentially an all-in fee structure.
Advisory
Fee. Each
Fund pays AIS fees in return for providing investment advisory services. AIS
also uses part of the advisory fee to pay for the services of the sub-advisers.
The Advisory Fee for each Fund differs depending on the average daily net assets
of the Fund.
Because
the Funds commenced investment operations on or after the date of this
Prospectus, the Funds did not pay any advisory fees in the prior fiscal year.
The advisory fee for each Fund is paid at the following annual
rates:
|
|
|
|
|
|
|
|
|
Fund |
|
Advisory
Fee
(as
a percentage of average net assets) |
Aristotle
Portfolio Optimization Conservative Fund
Aristotle
Portfolio Optimization Moderate Conservative Fund
Aristotle
Portfolio Optimization Moderate Fund
Aristotle
Portfolio Optimization Growth Fund
Aristotle
Portfolio Optimization Aggressive Growth Fund |
|
0.20% |
Aristotle
Ultra Short Income Fund |
|
0.25% |
Aristotle
ESG Core Bond Fund |
|
0.38% |
Aristotle
Short Duration Income Fund |
|
0.40% |
Aristotle
Core Income Fund |
|
0.50% |
Aristotle
Strategic Income Fund |
|
0.59% |
Aristotle
Floating Rate Income Fund |
|
0.62% |
Aristotle
High Yield Bond Fund |
|
0.60% |
Aristotle
Small/Mid Cap Equity Fund |
|
0.70% |
Aristotle
Small Cap Equity Fund |
|
0.70% |
Aristotle
Growth Equity Fund |
|
0.55% |
Aristotle
Value Equity Fund |
|
0.60% |
Aristotle
International Equity Fund |
|
0.70% |
Aristotle/Saul
Global Equity Fund |
|
0.70% |
Aristotle
Core Equity Fund |
|
0.50% |
Supervision
and Administration Fee.
The supervision and administration fee paid to AIS in its capacity as the Funds’
administrator (AIS, in its capacity as administrator, the “Administrator”) is
computed as a percentage of the Fund’s (including each Underlying Fund) assets
attributable in the aggregate to that class of shares. AIS as the Funds’
Administrator provides or procures supervision and administration services for
shareholders and also bears the costs of various third-party services required
by the Funds, including audit, custodial, portfolio accounting, legal, transfer
agency and printing costs. The Funds bear other expenses which are not covered
under the supervision and administration fee which may vary and affect the total
level of expenses paid by the shareholders, such as taxes and governmental fees;
brokerage fees; commissions and other transaction expenses; organizational
expenses; costs of borrowing money, including interest expenses and
extraordinary expenses (such as litigation and indemnification expenses); and
fees and expenses of the Trust’s Independent Trustees and their counsel. AIS
generally earns a profit on the supervision and administration fee paid by the
Funds. Also, under the terms of the supervision and administration agreement,
AIS, and not Fund shareholders, would benefit from any price decreases in
third-party services, including decreases resulting from an increase in net
assets.
Because
the Funds commenced operations on or after the date of this Prospectus, they did
not pay any supervision and administration fees in the prior fiscal year. The
supervision and administration fee for each class of each Fund is paid at the
following annual rates (stated as a percentage of the average daily net assets
attributable in the aggregate to each class’s shares taken
separately):
|
|
|
|
|
|
Fund |
Supervision
and Administration Fee |
Aristotle
Portfolio Optimization Conservative Fund |
Class
A |
0.25% |
Class
C |
0.25% |
Class
I-2 |
0.25% |
Aristotle
Portfolio Optimization Moderate Conservative Fund |
Class
A |
0.25% |
Class
C |
0.25% |
Class
I-2 |
0.25% |
Aristotle
Portfolio Optimization Moderate Fund |
Class
A |
0.25% |
Class
C |
0.25% |
Class
I-2 |
0.25% |
Aristotle
Portfolio Optimization Growth Fund |
Class
A |
0.25% |
Class
C |
0.25% |
Class
I-2 |
0.25% |
|
|
|
|
|
|
Fund |
Supervision
and Administration Fee |
Aristotle
Portfolio Optimization Aggressive Growth Fund |
Class
A |
0.25% |
Class
C |
0.25% |
Class
I-2 |
0.25% |
Aristotle
Ultra Short Income Fund |
Class
A |
0.07% |
Class
I |
0.07% |
Class
I-2 |
0.07% |
Aristotle
Short Duration Income Fund |
Class
A |
0.10% |
Class
C |
0.10% |
Class
I |
0.05% |
Class
I-2 |
0.10% |
Aristotle
Core Income Fund |
Class
A |
0.10% |
Class
C |
0.10% |
Class
I |
0.05% |
Class
I-2 |
0.05% |
Aristotle
ESG Core Bond Fund |
Class
I |
0.10% |
Class
I-2 |
0.10% |
Aristotle
Strategic Income Fund |
Class
A |
0.10% |
Class
C |
0.10% |
Class
I |
0.05% |
Class
I-2 |
0.10% |
Aristotle
Floating Rate Income Fund |
Class
A |
0.13% |
Class
C |
0.13% |
Class
I |
0.05% |
Class
I-2 |
0.13% |
Aristotle
High Yield Bond Fund |
Class
A |
0.10% |
Class
C |
0.10% |
Class
I |
0.05% |
Class
I-2 |
0.10% |
Aristotle
Small/Mid Cap Equity Fund |
Class
A |
0.20% |
Class
C |
0.20% |
Class
I |
0.15% |
Class
I-2 |
0.20% |
Aristotle
Small Cap Equity Fund |
Class
A |
0.20% |
Class
C |
0.20% |
Class
I |
0.20% |
Class
R6 |
0.15% |
Class
I-2 |
0.20% |
|
|
|
|
|
|
|
|
Fund |
Supervision
and Administration Fee |
Aristotle
Growth Equity Fund |
Class
A |
0.15% |
Class
I |
0.15% |
Class
I-2 |
0.15% |
Aristotle
Value Equity Fund |
Class
A |
0.09% |
Class
I |
0.09% |
Class
I-2 |
0.09% |
Aristotle
International Equity Fund |
Class
A |
0.08% |
Class
I |
0.08% |
Class
I-2 |
0.08% |
Aristotle/Saul
Global Equity Fund |
Class
A |
0.08% |
Class
I |
0.08% |
Class
I-2 |
0.08% |
Aristotle
Core Equity Fund |
Class
A |
0.15% |
Class
I |
0.15% |
Class
I-2 |
0.15% |
The
table that follows provides information about AIS, Aristotle Atlantic, Aristotle
Boston, Aristotle Capital, Aristotle Pacific and PLFA, and each individual team
member responsible for making investment decisions for the Funds (i.e.,
portfolio manager), including their primary title with the Manager (or
affiliate) and business experience for the past five years. Each of the
portfolio managers listed in the following table is jointly and primarily
responsible for the day-to-day management of the respective Fund, unless there
is only one portfolio manager listed which indicates that he or she is primarily
responsible for that Fund. For each portfolio manager listed, the SAI provides
additional information about compensation, other accounts managed and
information about the portfolio manager’s ownership of securities in the Fund(s)
(if any). The portfolio managers for a Fund may change at the Manager’s
discretion.
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Pacific
Life Fund Advisors LLC |
700
Newport Center Drive, Newport Beach, California 92660
Pacific
Life Fund Advisors LLC (“PLFA”) is the investment sub-adviser to the
Portfolio Optimization Funds.
As
of June 30, 2023, PFLA’s total assets under management were approximately
$39.4 billion. |
PORTFOLIO
OPTIMIZATION FUNDS |
Howard
T. Hirakawa, CFA |
Senior
Vice President of Pacific Life and PLFA since 2014, Vice President of
Pacific Select Fund since 2006, and Portfolio Manager since 2003. Mr.
Hirakawa is responsible for the investment oversight relating to Pacific
Select Fund and asset allocation services. He began his investment career
in 1999 and has a BS from San Diego State University and an MBA from
Claremont Graduate School. |
Carleton
J. Muench, CFA |
Vice
President of Pacific Life and PLFA since 2014, Assistant Vice President of
Pacific Select Fund since 2006, and Portfolio Manager since 2006. Mr.
Muench is responsible for the investment oversight relating to Pacific
Select Fund and asset allocation services. He began his investment career
in 1998 and has a BS and an MS from Northeastern
University. |
Samuel
S. Park |
Director
of Pacific Life and Director of fundamental research of PLFA since 2017,
and Portfolio Manager since 2013. Mr. Park is responsible for managing the
asset allocation function related to Pacific Select Fund. He began his
investment career in 1999 and has a BA from Boston
University. |
Edward
Sheng, PhD, CFA, CAIA |
Portfolio
Manager of PLFA since 2021, Assistant Vice President of Pacific Life and
Head of Asset Allocation of PLFA since 2022, Director of Pacific Life and
Director of Quantitative Research of PLFA since 2018 and Quantitative
Researcher of PLFA since 2016. Mr. Sheng is responsible for designing
advanced quantitative models that help guide the asset allocation
decisions for Pacific Select Fund. He is also responsible for strategic
asset allocation investment decisions. He began his investment career in
2013 and has a Ph.D. from Arizona State University, an MS degree from the
University of California, Los Angeles, and a BS from Nanjing University.
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Aristotle
Pacific Capital, LLC |
840
Newport Center Drive, 7th floor, Newport Beach, CA 92660
Aristotle
Pacific Capital LLC (formerly Pacific Asset Management LLC) (“Aristotle
Pacific”) is a registered investment adviser that provides investment
services to a variety of clients. Aristotle Pacific is the investment
sub-adviser to the Funds listed below. As of December 31, 2022, Aristotle
Pacific’s total assets under management were approximately $20.2
billion. |
ARISTOTLE
ULTRA SHORT INCOME FUND |
ARISTOTLE
ESG CORE BOND FUND |
David
Weismiller, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Weismiller is the Lead Portfolio Manager for the Short
Duration, Core Plus and Investment Grade Strategies. As the Lead Portfolio
Manager, he has final authority over all aspects of the Fund’s portfolio,
including security selection sector allocation and risk positioning. In
addition, Mr. Weismiller covers the utilities sector. Prior to Aristotle
Pacific, Mr. Weismiller was Managing Director and Portfolio Manager of
Pacific Asset Management since 2007. He began his investment career in
1997 and has a BA from the University of California, Santa Barbara and an
MBA from the University of California, Irvine. He is a CFA®
charterholder. |
Ying
Qiu, CFA |
Managing
Director and Portfolio Manager of Aristotle Pacific Capital, LLC. Ms. Qiu
is a Co-Portfolio Manager on various investment grade portfolios and has
credit research responsibilities focusing on asset-backed securities
("ABS"). Prior to Aristotle Pacific, Ms. Qiu was Managing Director and
Portfolio Manager of Pacific Asset Management since 2016. Prior to joining
Pacific Asset Management, Ms. Qiu was a Senior Vice President, Portfolio
Manager and Trader for both investment grade corporate and ABS with PIMCO
since 2008. Ms. Qiu began her investment career in 1997 and has a BA from
Renmin University of China and an MBA from the Emory University. She is a
CFA®
charterholder. |
ARISTOTLE
SHORT DURATION INCOME FUND |
David
Weismiller, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Weismiller is the Lead Portfolio Manager for the Short
Duration, Core Plus and Investment Grade Strategies. As the Lead Portfolio
Manager, he has final authority over all aspects of the Fund’s portfolio,
including security selection sector allocation and risk positioning. In
addition, Mr. Weismiller covers the utilities sector. Prior to Aristotle
Pacific, Mr. Weismiller was Managing Director and Portfolio Manager of
Pacific Asset Management since 2007. He began his investment career in
1997 and has a BA from the University of California, Santa Barbara and an
MBA from the University of California, Irvine. He is a CFA®
charterholder. |
Michael
Marzouk, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Marzouk is a Portfolio Manager to Aristotle Pacific’s
corporate (bank) loan strategy. Prior to Aristotle Pacific, Mr. Marzouk
was Managing Director and Portfolio Manager of Pacific Asset Management
since 2007. He began his investment career in 1997 and has a BA from the
University of California, Los Angeles and an MBA from the Anderson School
of Management. He is a CFA®
charterholder. |
Ying
Qiu, CFA |
Managing
Director and Portfolio Manager of Aristotle Pacific Capital, LLC. Ms. Qiu
is a Co-Portfolio Manager on various investment grade portfolios and has
credit research responsibilities focusing on asset-backed securities
("ABS"). Prior to Aristotle Pacific, Ms. Qiu was Managing Director and
Portfolio Manager of Pacific Asset Management since 2016. Prior to joining
Pacific Asset Management, Ms. Qiu was a Senior Vice President, Portfolio
Manager and Trader for both investment grade corporate and ABS with PIMCO
since 2008. Ms. Qiu began her investment career in 1997 and has a BA from
Renmin University of China and an MBA from the Emory University. She is a
CFA®
charterholder. |
ARISTOTLE
CORE INCOME FUND |
David
Weismiller, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Weismiller is the Lead Portfolio Manager for the Short
Duration, Core Plus and Investment Grade Strategies. As the Lead Portfolio
Manager, he has final authority over all aspects of the Fund’s portfolio,
including security selection sector allocation and risk positioning. In
addition, Mr. Weismiller covers the utilities sector. Prior to Aristotle
Pacific, Mr. Weismiller was Managing Director and Portfolio Manager of
Pacific Asset Management since 2007. He began his investment career in
1997 and has a BA from the University of California, Santa Barbara and an
MBA from the University of California, Irvine. He is a CFA®
charterholder. |
Michael
Marzouk, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Marzouk is a Portfolio Manager to Aristotle Pacific’s
corporate (bank) loan strategy. Prior to Aristotle Pacific, Mr. Marzouk
was Managing Director and Portfolio Manager of Pacific Asset Management
since 2007. He began his investment career in 1997 and has a BA from the
University of California, Los Angeles and an MBA from the Anderson School
of Management. He is a CFA®
charterholder. |
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Brian
M. Robertson, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Robertson also provides research and analysis of
investments in the forest products, paper and packaging sectors. Prior to
Aristotle Pacific, Mr. Robertson was Managing Director of Pacific Asset
Management since 2012 and Portfolio Manager of Pacific Asset Management
since 2008. He began his investment career in 2003 and has a BA from the
University of Michigan. He is a CFA®
charterholder. |
Ying
Qiu, CFA |
Managing
Director and Portfolio Manager of Aristotle Pacific Capital, LLC. Ms. Qiu
is a Co-Portfolio Manager on various investment grade portfolios and has
credit research responsibilities focusing on asset-backed securities
("ABS"). Prior to Aristotle Pacific, Ms. Qiu was Managing Director and
Portfolio Manager of Pacific Asset Management since 2016. Prior to joining
Pacific Asset Management, Ms. Qiu was a Senior Vice President, Portfolio
Manager and Trader for both investment grade corporate and ABS with PIMCO
since 2008. Ms. Qiu began her investment career in 1997 and has a BA from
Renmin University of China and an MBA from the Emory University. She is a
CFA®
charterholder. |
ARISTOTLE
STRATEGIC INCOME FUND |
Brian
M. Robertson, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Robertson also provides research and analysis of
investments in the forest products, paper and packaging sectors. Prior to
Aristotle Pacific, Mr. Robertson was Managing Director of Pacific Asset
Management since 2012 and Portfolio Manager of Pacific Asset Management
since 2008. He began his investment career in 2003 and has a BA from the
University of Michigan. He is a CFA®
charterholder. |
Michael
Marzouk, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Marzouk is a Portfolio Manager to Aristotle Pacific’s
corporate (bank) loan strategy. Prior to Aristotle Pacific, Mr. Marzouk
was Managing Director and Portfolio Manager of Pacific Asset Management
since 2007. He began his investment career in 1997 and has a BA from the
University of California, Los Angeles and an MBA from the Anderson School
of Management. He is a CFA®
charterholder. |
David
Weismiller, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Weismiller is the Lead Portfolio Manager for the Short
Duration, Core Plus and Investment Grade Strategies. As the Lead Portfolio
Manager, he has final authority over all aspects of the Fund’s portfolio,
including security selection sector allocation and risk positioning. In
addition, Mr. Weismiller covers the utilities sector. Prior to Aristotle
Pacific, Mr. Weismiller was Managing Director and Portfolio Manager of
Pacific Asset Management since 2007. He began his investment career in
1997 and has a BA from the University of California, Santa Barbara and an
MBA from the University of California, Irvine. He is a CFA®
charterholder. |
ARISTOTLE
FLOATING RATE INCOME FUND |
J.P.
Leasure |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. In addition to serving as a Portfolio Manager to Aristotle
Pacific’s corporate (bank) loan strategy, Mr. Leasure has responsibility
for overseeing REITs. Prior to Aristotle Pacific, Mr. Leasure was Senior
Managing Director and Portfolio Manager of Pacific Asset Management since
2007. He began his investment career in 1995 and has a BA from the
University of California, Los Angeles and an MBA from Columbia
University. |
Michael
Marzouk, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Marzouk is a Portfolio Manager to Aristotle Pacific’s
corporate (bank) loan strategy. Prior to Aristotle Pacific, Mr. Marzouk
was Managing Director and Portfolio Manager of Pacific Asset Management
since 2007. He began his investment career in 1997 and has a BA from the
University of California, Los Angeles and an MBA from the Anderson School
of Management. He is a CFA®
charterholder. |
ARISTOTLE
HIGH YIELD BOND FUND |
Brian
M. Robertson, CFA |
Senior
Managing Director and Portfolio Manager of Aristotle Pacific Capital, LLC
since 2023. Mr. Robertson also provides research and analysis of
investments in the forest products, paper and packaging sectors. Prior to
Aristotle Pacific, Mr. Robertson was Managing Director of Pacific Asset
Management since 2012 and Portfolio Manager of Pacific Asset Management
since 2008. He began his investment career in 2003 and has a BA from the
University of Michigan. He is a CFA®
charterholder. |
C.
Robert Boyd |
Senior
Managing Director, Head of Credit Research and Portfolio Manager of
Aristotle Pacific Capital, LLC since 2023. Mr. Boyd has responsibility for
overseeing all credit research activities for Pacific Asset Management.
Mr. Boyd is a member of the high yield portfolio management team and
provides research and analysis of investments in the leisure sector. Prior
to Aristotle Pacific, Mr. Boyd was Managing Director of Pacific Asset
Management since 2017 and Portfolio Manager of Pacific Asset Management
since 2014. Prior to joining Pacific Asset Management, he was a vice
president, Credit Analyst and Bank Loan Portfolio Manager at PIMCO since
1998. He began his investment career in 1998 and has a BA from California
State University, Long Beach and an MBA from the University of Southern
California. |
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Aristotle
Capital Boston, LLC |
One
Federal Street, 36th Floor, Boston, Massachusetts 02110
Aristotle
Capital Boston, LLC (“Aristotle Boston”) is registered with the SEC as an
investment adviser and provides investment advice to institutional and
high net worth clients. Aristotle Boston is the sub-adviser to the Funds
listed below. Aristotle Boston had approximately $3.2 billion in assets
under management as of December 31, 2022. |
ARISTOTLE
SMALL/MID CAP EQUITY FUND
ARISTOTLE
SMALL CAP EQUITY FUND |
David
M. Adams, CFA |
Principal,
Chief Executive Officer and Portfolio Manager, as well as a member of
Aristotle Boston’s investment team since 2015. Prior to joining Aristotle
Boston, Mr. Adams served as Managing Director and Portfolio Co-Manager at
Eagle Boston Investment Management (“Eagle Boston”) from 2006 to 2014.
Prior to working for Eagle Boston, he served as Vice President and
Portfolio Manager at Pioneer Investment Management, Inc. Mr. Adams began
his investment career in 1990. Mr. Adams holds a Bachelor of Science
degree in Finance and Economics and a Master of Science degree in Finance
from Boston College. He is a CFA®
charterholder. |
Jack
McPherson, CFA |
Principal,
President and Portfolio Manager, as well as a member of Aristotle Boston’s
investment team since 2015. Prior to joining Aristotle Boston, Mr.
McPherson served as Managing Director and Portfolio Co-Manager at Eagle
Boston from 2006 to 2014. Prior to working for Eagle Boston, Mr. McPherson
served as Vice President and Portfolio Manager at Pioneer Investment
Management, Inc. (“Pioneer”). Before working for Pioneer, he was a
Security Analyst at Middleton & Company, Inc.; a Vice President and
Equity Analyst at Evergreen Investment Management Company, LLC; and an
Equity Analyst at Pell, Rudman & Company, Inc. Mr. McPherson began his
investment career in 1988. Mr. McPherson holds a Bachelor of Science
degree in Finance from Northeastern University and a Master of Business
Administration from Babson College. He is a CFA®
charterholder. |
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Aristotle
Atlantic Partners, LLC |
50
Central Avenue, Suite 750, Sarasota, Florida 34236
Aristotle
Atlantic is a Delaware limited liability company formed in 2016. Aristotle
Atlantic has approximately $1.5 billion in assets under management as of
December 31, 2022. Senior members of Aristotle Atlantic and Aristotle
Capital hold a controlling interest in Aristotle
Atlantic. |
ARISTOTLE
GROWTH EQUITY FUND
ARISTOTLE
CORE EQUITY FUND |
Owen
Fitzpatrick, CFA |
Principal,
Managing Director, Lead Portfolio Manager and Senior Research Analyst at
Aristotle Atlantic since 2016. Prior to joining Aristotle Atlantic, Mr.
Fitzpatrick had multiple roles at Deutsche Asset Management from 1995 to
2016, including Managing Director and Head of the U.S. Equity Platform. As
Head of U.S. Equities, Mr. Fitzpatrick oversaw all active U.S. equity
strategies, and as a Portfolio Manager, he managed the Large Cap Growth
and Large Cap Core portfolios. Prior to Deutsche Asset Management, Mr.
Fitzpatrick managed equity portfolios for Chemical Bank, where he was also
responsible for research coverage of the consumer cyclical sector.
Additionally, he served as a Portfolio Manager at Manufacturers Hanover
Trust. Mr. Fitzpatrick began his investment career in 1986. Mr.
Fitzpatrick earned his Bachelor of Science degree in Finance and his
Master of Business Administration from Fordham University. He is a CFA®
charterholder. |
Thomas
M. Hynes, Jr., CFA |
Principal,
Managing Director, Portfolio Manager and Senior Research Analyst at
Aristotle Atlantic since 2016. Prior to joining Aristotle Atlantic, Mr.
Hynes worked as a Portfolio Manager and Senior Analyst for Deutsche Asset
Management from 2007 to 2016. Mr. Hynes’ previous experience also includes
serving as a Director and Client Portfolio Manager at Citigroup Asset
Management and as a Director for Deutsche Bank Private Wealth Management.
Mr. Hynes began his investment career in 1995. Mr. Hynes earned his
Bachelor of Science degree in Finance and Economics from Fordham
University. He is a CFA®
charterholder. |
Brendan
O’Neill, CFA |
Principal,
Director, Portfolio Manager and Senior Research Analyst at Aristotle
Atlantic since 2016. Prior to joining Aristotle Atlantic, Mr. O’Neill
worked as a Portfolio Manager and as a Research Analyst at Deutsche Asset
Management from 2000 to 2016. Mr. O’Neill began his investment career in
2000. Mr. O’Neill earned his Bachelor of Arts degree in Economics from
Queens College, CUNY and his Master of Science degree in Finance from
Zicklin School of Business, Baruch College. He is a CFA®
charterholder. |
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Aristotle
Capital Management, LLC |
11100
Santa Monica Boulevard, Suite 1700, Los Angeles, California,
90025
Aristotle
Capital is a Delaware limited liability company formed in 2006. In January
2012, Aristotle Capital merged with Los Angeles-based investment adviser
Reed, Conner & Birdwell, LLC (“RCB”), which has origins managing
assets dating back to 1959. Aristotle Capital has approximately $48.6
billion in assets under management as of December 31, 2022. Aristotle
Capital is a privately owned, registered investment adviser that
specializes in equity portfolio management for institutional and
individual clients. The firm is majority owned by employees and the Board
of Managers. |
ARISTOTLE
INTERNATIONAL EQUITY FUND |
Howard
Gleicher, CFA |
Founder,
Chief Executive Officer, Chief Investment Officer and Principal of
Aristotle Capital since 2010. Commencing in July 2006, Mr. Gleicher served
as the sole manager of a private fund with substantially the same
investment goal and strategies as the Global Equity Fund, in his capacity
as Chief Executive Officer and Chief Investment Officer at Metropolitan
West Capital Management, LLC (“MetWest Capital”). Mr. Gleicher was the
strategist for MetWest Capital’s Large Cap Intrinsic Value, International
Core Value, and Global Intrinsic Equity strategies. He also served as a
senior analyst with MetWest Capital’s investment team. Mr. Gleicher
departed MetWest Capital in October 2010 and continued to manage the
private fund at Aristotle Capital, commencing in November 2010. Mr.
Gleicher founded Aristotle Capital in 2006, and Aristotle Capital
registered with the SEC in January 2011. He is currently Chief Executive
Officer, Chief Investment Officer and Principal of Aristotle Capital.
Prior to co-founding MetWest Capital, Mr. Gleicher served as principal,
portfolio manager and Investment Policy Committee member with
Palley-Needelman Asset Management, Inc. and as vice president and equity
portfolio manager with Pacific Investment Management Company. Mr. Gleicher
began his investment career in 1984. Mr. Gleicher holds Bachelor of
Science and Master of Science degrees in Electrical Engineering from
Stanford University, and a Master of Business Administration from Harvard
Business School and is a CFA® charterholder. |
Geoffrey
S. Stewart, CFA |
Principal,
Portfolio Manager and a member of the research team of Aristotle Capital
since 2003. He was an Analyst and Portfolio Manager with Reed, Conner
& Birdwell, LLC (“RCB”) from 2003 to 2012 with responsibility for
co-managing the International strategy (RCB combined its business with
Aristotle Capital in January 2012). Prior to RCB, he served as an equity
analyst at Oppenheimer & Company. Mr. Stewart began his investment
career in 1999. Mr. Stewart holds a Bachelor of Arts degree in History
from Duke University and is a CFA® charterholder. |
Sean
M. Thorpe |
Principal,
Portfolio Manager and a member of the research team of Aristotle Capital
since 2007. Mr. Thorpe was an Analyst and Portfolio Manager with RCB from
2007 to 2012 with responsibility for co-managing the International
strategy (RCB combined its business with Aristotle Capital in January
2012). Prior to RCB, Mr. Thorpe served as Senior Vice President for
Shamrock Holdings, LLC, where he specialized in activist investments for
domestic small cap companies. He was also Managing Director for Mandeville
Partners, LLC, a Los Angeles based private equity firm, for more than a
decade, where he was involved in mergers and acquisitions throughout Latin
America. He has held positions as the Vice President in Strategic Planning
at Salick Health Care, Inc. and as financial analyst for both Kidder
Peabody & Co. and Drexel Burnham Lambert, Inc. Mr. Stewart began his
investment career in 1989. Mr. Thorpe holds a Bachelor of Arts degree in
Economics and Finance from the University of California, Los
Angeles. |
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ARISTOTLE
SAUL/GLOBAL EQUITY FUND
ARISTOTLE
VALUE EQUITY FUND
|
Howard
Gleicher, CFA |
Founder,
Chief Executive Officer, Chief Investment Officer and Principal of
Aristotle Capital since 2010. Commencing in July 2006, Mr. Gleicher served
as the sole manager of a private fund with substantially the same
investment goal and strategies as the Global Equity Fund, in his capacity
as Chief Executive Officer and Chief Investment Officer at Metropolitan
West Capital Management, LLC (“MetWest Capital”). Mr. Gleicher was the
strategist for MetWest Capital’s Large Cap Intrinsic Value, International
Core Value, and Global Intrinsic Equity strategies. He also served as a
senior analyst with MetWest Capital’s investment team. Mr. Gleicher
departed MetWest Capital in October 2010 and continued to manage the
private fund at Aristotle Capital, commencing in November 2010. Mr.
Gleicher founded Aristotle Capital in 2006, and Aristotle Capital
registered with the SEC in January 2011. He is currently Chief Executive
Officer, Chief Investment Officer and Principal of Aristotle Capital.
Prior to co-founding MetWest Capital, Mr. Gleicher served as principal,
portfolio manager and Investment Policy Committee member with
Palley-Needelman Asset Management, Inc. and as vice president and equity
portfolio manager with Pacific Investment Management Company. Mr. Gleicher
began his investment career in 1984. Mr. Gleicher holds Bachelor of
Science and Master of Science degrees in Electrical Engineering from
Stanford University, and a Master of Business Administration from Harvard
Business School and is a CFA® charterholder. |
Gregory
D. Padilla, CFA |
Principal,
Portfolio Manager and member of the research team of Aristotle Capital
since 2014. From 2012 through 2013, he was an Equity Analyst and portfolio
manager at Vinik Asset Management where he managed a portion of the Global
Value long-short portfolio and was a senior member of the Global Value
investment team. Prior to Vinik Asset Management, Mr. Padilla was a
Managing Director at Tradewinds Global Investors, LLC, where he co-managed
the Lipper award winning Nuveen Tradewinds Global Natural Resource Fund
from 2008 to 2012 and assisted in management of the Nuveen Tradewinds
Value Opportunities Fund from 2011 to 2012. In addition to his portfolio
management responsibilities, he was a senior member of the investment team
from 2006 through 2012 with primary analyst responsibility for businesses
in the global energy, industrial and utility sectors for all Tradewinds
Global Investors funds and separate accounts. Mr. Padilla began his
investment career in 2006. Mr. Padilla holds a Bachelor of Science degree
in Finance from Arizona State University and a Master of Business
Administration with honors and concentration in investments and financial
markets from the USC Marshall School of Business and is a CFA®
charterholder. |
The
Funds have assumed the accounting history of the corresponding Predecessor Fund
at the closing of the Reorganizations. The financial highlights for the
Predecessor Funds are included below.
The
information in the following tables has been derived from the relevant
Predecessor Fund’s financial statements, which have been audited by Deloitte
& Touche, LLP, which served as independent registered public accounting
firm, whose report, along with Predecessor Fund financial statements, is
included in the Predecessor Fund’s most recent annual report to shareholders,
which is available upon request.
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Fund |
|
Selected
Per Share Data |
|
Ratios
to Average Net Assets |
Supplemental
Data |
|
For
the Year Ended (1) |
Net
Asset Value, Beginning of Year |
Investment
Operations |
Distributions |
Net
Asset Value, End of Year |
Expenses
Before Reductions (3) |
Expenses
After Reductions (3),
(4) |
Net
Investment Income (Loss) (3) |
Total
Returns (5) |
Net
Assets, End of Year (in thousands) |
Portfolio
Turnover Rates |
|
Net
Investment Income (Loss)(2) |
Net
Realized and Unrealized Gain (Loss) |
Total |
Net
Investment Income |
Capital
Gains |
Total |
|
Pacific
Funds Portfolio Optimization Conservative (6) |
Class
A |
4/1/2022
- 3/31/2023 |
$10.77 |
$0.27 |
($1.00) |
($0.73) |
($0.02) |
($0.62) |
($0.64) |
$9.40 |
0.68% |
0.60% |
2.74% |
(6.71%) |
$139,384 |
28% |
|
4/1/2021
- 3/31/2022 |
11.46 |
0.18 |
(0.39) |
(0.21) |
(0.28) |
(0.20) |
(0.48) |
10.77 |
0.67% |
0.60% |
1.53% |
(2.13%) |
174,061 |
20% |
|
4/1/2020
- 3/31/2021 |
9.83 |
0.16 |
1.80 |
1.96 |
(0.33) |
— |
(0.33) |
11.46 |
0.67% |
0.60% |
1.47% |
19.96% |
191,406 |
37% |
|
4/1/2019
- 3/31/2020 |
10.23 |
0.17 |
(0.35) |
(0.18) |
(0.20) |
(0.02) |
(0.22) |
9.83 |
0.68% |
0.60% |
1.60% |
(1.95%) |
159,186 |
22% |
|
4/1/2018
- 3/31/2019 |
11.24 |
0.20 |
(0.04) |
0.16 |
(0.21) |
(0.96) |
(1.17) |
10.23 |
0.68% |
0.60% |
1.83% |
1.88% |
121,012 |
30% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$10.44 |
$0.19 |
($0.96) |
($0.77) |
$— |
($0.62) |
($0.62) |
$9.05 |
1.43% |
1.35% |
1.99% |
(7.34%) |
$24,031 |
28% |
|
4/1/2021
- 3/31/2022 |
11.14 |
0.09 |
(0.38) |
(0.29) |
(0.21) |
(0.20) |
(0.41) |
10.44 |
1.42% |
1.35% |
0.78% |
(2.85%) |
37,841 |
20% |
|
4/1/2020
- 3/31/2021 |
9.59 |
0.08 |
1.74 |
1.82 |
(0.27) |
— |
(0.27) |
11.14 |
1.42% |
1.35% |
0.72% |
18.96% |
46,869 |
37% |
|
4/1/2019
- 3/31/2020 |
9.97 |
0.09 |
(0.35) |
(0.26) |
(0.10) |
(0.02) |
(0.12) |
9.59 |
1.43% |
1.35% |
0.86% |
(2.72%) |
46,909 |
22% |
|
4/1/2018
- 3/31/2019 |
11.00 |
0.11 |
(0.03) |
0.08 |
(0.15) |
(0.96) |
(1.11) |
9.97 |
1.43% |
1.35% |
1.08% |
1.13% |
111,233 |
30% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$10.84 |
$0.29 |
($1.00) |
($0.71) |
($0.03) |
($0.62) |
($0.65) |
$9.48 |
0.43% |
0.35% |
2.99% |
(6.50%) |
$6,871 |
28% |
|
4/1/2021
- 3/31/2022 |
11.52 |
0.21 |
(0.39) |
(0.18) |
(0.30) |
(0.20) |
(0.50) |
10.84 |
0.42% |
0.35% |
1.78% |
(1.84%) |
13,647 |
20% |
|
4/1/2020
- 3/31/2021 |
9.88 |
0.19 |
1.80 |
1.99 |
(0.35) |
— |
(0.35) |
11.52 |
0.42% |
0.35% |
1.72% |
20.17% |
11,299 |
37% |
|
4/1/2019
- 3/31/2020 |
10.26 |
0.20 |
(0.35) |
(0.15) |
(0.21) |
(0.02) |
(0.23) |
9.88 |
0.43% |
0.35% |
1.85% |
(1.68%) |
6,994 |
22% |
|
4/1/2018
- 3/31/2019 |
11.26 |
0.22 |
(0.03) |
0.19 |
(0.23) |
(0.96) |
(1.19) |
10.26 |
0.43% |
0.35% |
2.08% |
2.26% |
6,893 |
30% |
|
Pacific
Funds Portfolio Optimization Moderate-Conservative (6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$11.62 |
$0.23 |
($1.14) |
($0.91) |
$— |
($1.24) |
($1.24) |
$9.47 |
0.67% |
0.60% |
2.26% |
(7.59%) |
$207,516 |
26% |
|
4/1/2021
- 3/31/2022 |
12.52 |
0.15 |
(0.20) |
(0.05) |
(0.29) |
(0.56) |
(0.85) |
11.62 |
0.65% |
0.60% |
1.14% |
(0.83%) |
262,457 |
19% |
|
4/1/2020
- 3/31/2021 |
9.95 |
0.15 |
2.74 |
2.89 |
(0.32) |
— |
(0.32) |
12.52 |
0.66% |
0.60% |
1.25% |
29.06% |
283,474 |
28% |
|
4/1/2019
- 3/31/2020 |
10.70 |
0.17 |
(0.66) |
(0.49) |
(0.22) |
(0.04) |
(0.26) |
9.95 |
0.67% |
0.60% |
1.55% |
(4.94%) |
231,749 |
20% |
|
4/1/2018
- 3/31/2019 |
12.58 |
0.18 |
(0.06) |
0.12 |
(0.20) |
(1.80) |
(2.00) |
10.70 |
0.68% |
0.60% |
1.55% |
1.91% |
199,827 |
45% |
|
Class
C |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4/1/2022
- 3/31/2023 |
$11.29 |
$0.15 |
($1.12) |
($0.97) |
$— |
($1.24) |
($1.24) |
$9.08 |
1.42% |
1.35% |
1.51% |
(8.37%) |
$19,045 |
26% |
|
4/1/2021
- 3/31/2022 |
12.20 |
0.05 |
(0.18) |
(0.13) |
(0.22) |
(0.56) |
(0.78) |
11.29 |
1.41% |
1.35% |
0.39% |
(1.54%) |
31,538 |
19% |
|
4/1/2020
- 3/31/2021 |
9.72 |
0.06 |
2.66 |
2.72 |
(0.24) |
— |
(0.24) |
12.20 |
1.41% |
1.35% |
0.50% |
28.06% |
45,349 |
28% |
|
4/1/2019
- 3/31/2020 |
10.44 |
0.09 |
(0.66) |
(0.57) |
(0.11) |
(0.04) |
(0.15) |
9.72 |
1.42% |
1.35% |
0.80% |
(5.63%) |
48,929 |
20% |
|
4/1/2018
- 3/31/2019 |
12.34 |
0.09 |
(0.06) |
0.03 |
(0.13) |
(1.80) |
(1.93) |
10.44 |
1.43% |
1.35% |
0.80% |
1.11% |
136,522 |
45% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$11.70 |
$0.26 |
($1.15) |
($0.89) |
$— |
($1.24) |
($1.24) |
$9.57 |
0.41% |
0.35% |
2.51% |
(7.36%) |
$4,479 |
26% |
|
4/1/2021
- 3/31/2022 |
12.60 |
0.18 |
(0.20) |
(0.02) |
(0.32) |
(0.56) |
(0.88) |
11.70 |
0.40% |
0.35% |
1.39% |
(0.64%) |
6,710 |
19% |
|
4/1/2020
- 3/31/2021 |
10.00 |
0.18 |
2.76 |
2.94 |
(0.34) |
— |
(0.34) |
12.60 |
0.41% |
0.35% |
1.50% |
29.44% |
6,126 |
28% |
|
4/1/2019
- 3/31/2020 |
10.75 |
0.20 |
(0.67) |
(0.47) |
(0.24) |
(0.04) |
(0.28) |
10.00 |
0.42% |
0.35% |
1.80% |
(4.67%) |
5,659 |
20% |
|
4/1/2018
- 3/31/2019 |
12.62 |
0.21 |
(0.06) |
0.15 |
(0.22) |
(1.80) |
(2.02) |
10.75 |
0.42% |
0.35% |
1.80% |
2.10% |
7,701 |
45% |
|
Pacific
Funds Portfolio Optimization Moderate
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$13.33 |
$0.17 |
($1.38) |
($1.21) |
$— |
($2.18) |
($2.18) |
$9.94 |
0.64% |
0.60% |
1.52% |
(8.67%) |
$677,263 |
32% |
|
4/1/2021
- 3/31/2022 |
14.35 |
0.10 |
0.11 |
0.21 |
(0.36) |
(0.87) |
(1.23) |
13.33 |
0.63% |
0.60% |
0.68% |
0.92% |
845,027 |
20% |
|
4/1/2020
- 3/31/2021 |
10.60 |
0.12 |
4.06 |
4.18 |
(0.32) |
(0.11) |
(0.43) |
14.35 |
0.64% |
0.60% |
0.95% |
39.61% |
897,486 |
27% |
|
4/1/2019
- 3/31/2020 |
12.01 |
0.17 |
(0.95) |
(0.78) |
(0.19) |
(0.44) |
(0.63) |
10.60 |
0.66% |
0.60% |
1.38% |
(7.24%) |
714,447 |
19% |
|
4/1/2018
- 3/31/2019 |
14.26 |
0.16 |
0.04 |
0.20 |
(0.23) |
(2.22) |
(2.45) |
12.01 |
0.66% |
0.60% |
1.17% |
2.49% |
652,731 |
41% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$12.98 |
$0.08 |
($1.33) |
($1.25) |
$— |
($2.18) |
($2.18) |
$9.55 |
1.39% |
1.35% |
0.77% |
(9.24%) |
$70,433 |
32% |
|
4/1/2021
- 3/31/2022 |
14.03 |
(0.01) |
0.11 |
0.10 |
(0.28) |
(0.87) |
(1.15) |
12.98 |
1.38% |
1.35% |
(0.07%) |
0.14% |
107,229 |
20% |
|
4/1/2020
- 3/31/2021 |
10.39 |
0.03 |
3.96 |
3.99 |
(0.24) |
(0.11) |
(0.35) |
14.03 |
1.39% |
1.35% |
0.20% |
38.56% |
143,244 |
27% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Selected
Per Share Data |
|
Ratios
to Average Net Assets |
Supplemental
Data |
|
4/1/2019
- 3/31/2020 |
11.77 |
0.08 |
(0.94) |
(0.86) |
(0.08) |
(0.44) |
(0.52) |
10.39 |
1.41% |
1.35% |
0.63% |
(7.97%) |
142,846 |
19% |
|
4/1/2018
- 3/31/2019 |
14.04 |
0.05 |
0.06 |
0.11 |
(0.16) |
(2.22) |
(2.38) |
11.77 |
1.41% |
1.35% |
0.42% |
1.78% |
381,170 |
41% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$13.41 |
$0.20 |
($1.38) |
($1.18) |
$— |
($2.18) |
($2.18) |
$10.05 |
0.39% |
0.35% |
1.77% |
(8.39%) |
$21,881 |
32% |
|
4/1/2021
- 3/31/2022 |
14.42 |
0.14 |
0.11 |
0.25 |
(0.39) |
(0.87) |
(1.26) |
13.41 |
0.38% |
0.35% |
0.93% |
1.17% |
30,378 |
20% |
|
4/1/2020
- 3/31/2021 |
10.64 |
0.16 |
4.07 |
4.23 |
(0.34) |
(0.11) |
(0.45) |
14.42 |
0.39% |
0.35% |
1.20% |
39.99% |
35,732 |
27% |
|
4/1/2019
- 3/31/2020 |
12.05 |
0.20 |
(0.96) |
(0.76) |
(0.21) |
(0.44) |
(0.65) |
10.64 |
0.41% |
0.35% |
1.63% |
(7.07%) |
21,729 |
19% |
|
4/1/2018
- 3/31/2019 |
14.29 |
0.19 |
0.04 |
0.23 |
(0.25) |
(2.22) |
(2.47) |
12.05 |
0.41% |
0.35% |
1.42% |
2.75% |
26,959 |
41% |
|
Pacific
Funds Portfolio Optimization Growth
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$14.33 |
$0.11 |
($1.47) |
($1.36) |
$— |
($2.61) |
($2.61) |
$10.36 |
0.64% |
0.60% |
0.97% |
(8.93%) |
$586,164 |
30% |
|
4/1/2021
- 3/31/2022 |
15.50 |
0.07 |
0.39 |
0.46 |
(0.40) |
(1.23) |
(1.63) |
14.33 |
0.64% |
0.60% |
0.46% |
2.22% |
712,010 |
19% |
|
4/1/2020
- 3/31/2021 |
10.59 |
0.11 |
5.19 |
5.30 |
(0.23) |
(0.16) |
(0.39) |
15.50 |
0.64% |
0.60% |
0.80% |
50.27% |
743,213 |
28% |
|
4/1/2019
- 3/31/2020 |
12.77 |
0.19 |
(1.45) |
(1.26) |
(0.22) |
(0.70) |
(0.92) |
10.59 |
0.66% |
0.60% |
1.45% |
(11.24%) |
544,605 |
18% |
|
4/1/2018
- 3/31/2019 |
15.46 |
0.12 |
0.13 |
0.25 |
(0.21) |
(2.73) |
(2.94) |
12.77 |
0.66% |
0.60% |
0.84% |
2.92% |
529,247 |
53% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$13.86 |
$0.03 |
($1.44) |
($1.41) |
$— |
($2.61) |
($2.61) |
$9.84 |
1.39% |
1.35% |
0.22% |
(9.63%) |
$64,896 |
30% |
|
4/1/2021
- 3/31/2022 |
15.06 |
(0.04) |
0.38 |
0.34 |
(0.31) |
(1.23) |
(1.54) |
13.86 |
1.39% |
1.35% |
(0.29%) |
1.51% |
89,501 |
19% |
|
4/1/2020
- 3/31/2021 |
10.33 |
0.01 |
5.03 |
5.04 |
(0.15) |
(0.16) |
(0.31) |
15.06 |
1.39% |
1.35% |
0.05% |
48.99% |
116,482 |
28% |
|
4/1/2019
- 3/31/2020 |
12.45 |
0.09 |
(1.41) |
(1.32) |
(0.10) |
(0.70) |
(0.80) |
10.33 |
1.41% |
1.35% |
0.70% |
(11.81%) |
100,768 |
18% |
|
4/1/2018
- 3/31/2019 |
15.18 |
0.01 |
0.13 |
0.14 |
(0.14) |
(2.73) |
(2.87) |
12.45 |
1.42% |
1.35% |
0.08% |
2.12% |
271,000 |
53% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$14.44 |
$0.15 |
($1.49) |
($1.34) |
$— |
($2.61) |
($2.61) |
$10.49 |
0.39% |
0.35% |
1.22% |
(8.72%) |
$15,875 |
30% |
|
4/1/2021
- 3/31/2022 |
15.60 |
0.11 |
0.39 |
0.50 |
(0.43) |
(1.23) |
(1.66) |
14.44 |
0.39% |
0.35% |
0.71% |
2.46% |
19,833 |
19% |
|
4/1/2020
- 3/31/2021 |
10.65 |
0.14 |
5.23 |
5.37 |
(0.26) |
(0.16) |
(0.42) |
15.60 |
0.39% |
0.35% |
1.05% |
50.62% |
20,137 |
28% |
|
4/1/2019
- 3/31/2020 |
12.82 |
0.22 |
(1.45) |
(1.23) |
(0.24) |
(0.70) |
(0.94) |
10.65 |
0.41% |
0.35% |
1.70% |
(10.98%) |
14,485 |
18% |
|
4/1/2018
- 3/31/2019 |
15.51 |
0.16 |
0.12 |
0.28 |
(0.24) |
(2.73) |
(2.97) |
12.82 |
0.41% |
0.35% |
1.09% |
3.12% |
19,458 |
53% |
|
Pacific
Funds Portfolio Optimization Aggressive-Growth
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$16.37 |
$0.06 |
($1.74) |
($1.68) |
$— |
($3.74) |
($3.74) |
$10.95 |
0.66% |
0.60% |
0.46% |
(9.53%) |
$230,188 |
29% |
|
4/1/2021
- 3/31/2022 |
17.62 |
0.02 |
0.63 |
0.65 |
(0.52) |
(1.38) |
(1.90) |
16.37 |
0.65% |
0.60% |
0.12% |
2.80% |
270,691 |
15% |
|
4/1/2020
- 3/31/2021 |
11.38 |
0.09 |
6.70 |
6.79 |
(0.21) |
(0.34) |
(0.55) |
17.62 |
0.66% |
0.60% |
0.56% |
60.05% |
275,818 |
31% |
|
4/1/2019
- 3/31/2020 |
14.25 |
0.19 |
(1.89) |
(1.70) |
(0.23) |
(0.94) |
(1.17) |
11.38 |
0.67% |
0.60% |
1.31% |
(13.66%) |
191,505 |
19% |
|
4/1/2018
- 3/31/2019 |
17.03 |
0.10 |
0.25 |
0.35 |
(0.25) |
(2.88) |
(3.13) |
14.25 |
0.68% |
0.60% |
0.61% |
3.39% |
193,470 |
55% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$15.62 |
($0.04) |
($1.66) |
($1.70) |
$— |
($3.74) |
($3.74) |
$10.18 |
1.41% |
1.35% |
(0.29%) |
(10.16%) |
$26,893 |
29% |
|
4/1/2021
- 3/31/2022 |
16.92 |
(0.11) |
0.60 |
0.49 |
(0.41) |
(1.38) |
(1.79) |
15.62 |
1.40% |
1.35% |
(0.63%) |
2.04% |
35,333 |
15% |
|
4/1/2020
- 3/31/2021 |
10.97 |
(0.03) |
6.45 |
6.42 |
(0.13) |
(0.34) |
(0.47) |
16.92 |
1.41% |
1.35% |
(0.19%) |
58.83% |
43,705 |
31% |
|
4/1/2019
- 3/31/2020 |
13.76 |
0.08 |
(1.82) |
(1.74) |
(0.11) |
(0.94) |
(1.05) |
10.97 |
1.42% |
1.35% |
0.56% |
(14.25%) |
35,339 |
19% |
|
4/1/2018
- 3/31/2019 |
16.59 |
(0.02) |
0.24 |
0.22 |
(0.17) |
(2.88) |
(3.05) |
13.76 |
1.43% |
1.35% |
(0.14%) |
2.57% |
85,434 |
55% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$16.48 |
$0.09 |
($1.74) |
($1.65) |
$— |
($3.74) |
($3.74) |
$11.09 |
0.41% |
0.35% |
0.71% |
(9.25%) |
$9,333 |
29% |
|
4/1/2021
- 3/31/2022 |
17.72 |
0.07 |
0.62 |
0.69 |
(0.55) |
(1.38) |
(1.93) |
16.48 |
0.40% |
0.35% |
0.37% |
3.02% |
10,940 |
15% |
|
4/1/2020
- 3/31/2021 |
11.44 |
0.12 |
6.74 |
6.86 |
(0.24) |
(0.34) |
(0.58) |
17.72 |
0.41% |
0.35% |
0.81% |
60.35% |
14,855 |
31% |
|
4/1/2019
- 3/31/2020 |
14.29 |
0.23 |
(1.89) |
(1.66) |
(0.25) |
(0.94) |
(1.19) |
11.44 |
0.42% |
0.35% |
1.56% |
(13.34%) |
9,606 |
19% |
|
4/1/2018
- 3/31/2019 |
17.07 |
0.14 |
0.23 |
0.37 |
(0.27) |
(2.88) |
(3.15) |
14.29 |
0.43% |
0.35% |
0.86% |
3.57% |
10,860 |
55% |
|
Pacific
Funds Ultra Short Income
(6) |
|
Class
I |
|
4/1/2022
- 3/31/2023 |
$9.92 |
$0.31 |
($0.09) |
$0.22 |
($0.28) |
$— |
($0.28) |
$9.86 |
0.73% |
0.32% |
3.16% |
2.30% |
$13,231 |
51% |
|
4/1/2021
- 3/31/2022 |
10.07 |
0.06 |
(0.10) |
(0.04) |
(0.07) |
(0.04) |
(0.11) |
9.92 |
0.66% |
0.32% |
0.62% |
(0.42%) |
12,929 |
75% |
|
4/1/2020
- 3/31/2021 |
9.65 |
0.12 |
0.44 |
0.56 |
(0.12) |
(0.02) |
(0.14) |
10.07 |
0.70% |
0.32% |
1.16% |
5.81% |
12,993 |
96% |
|
6/28/2019
- 3/31/2020 |
10.00 |
0.17 |
(0.35) |
(0.18) |
(0.17) |
(0.00)
(7) |
(0.17) |
9.65 |
0.87% |
0.32% |
2.27% |
(1.81%) |
12,273 |
81% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$9.92 |
$0.31 |
($0.09) |
$0.22 |
($0.28) |
$— |
($0.28) |
$9.86 |
0.77% |
0.32% |
3.16% |
2.30% |
$50,169 |
51% |
|
4/1/2021
- 3/31/2022 |
10.07 |
0.06 |
(0.10) |
(0.04) |
(0.07) |
(0.04) |
(0.11) |
9.92 |
0.66% |
0.32% |
0.62% |
(0.42%) |
18,598 |
75% |
|
4/1/2020
- 3/31/2021 |
9.65 |
0.12 |
0.44 |
0.56 |
(0.12) |
(0.02) |
(0.14) |
10.07 |
0.69% |
0.32% |
1.16% |
5.81% |
18,449 |
96% |
|
6/28/2019
- 3/31/2020 |
10.00 |
0.17 |
(0.35) |
(0.18) |
(0.17) |
(0.00)
(7) |
(0.17) |
9.65 |
0.97% |
0.32% |
2.27% |
(1.81%) |
12,401 |
81% |
|
Pacific
Funds Short Duration Income
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$10.16 |
$0.23 |
($0.16) |
$0.07 |
($0.23) |
$— |
($0.23) |
$10.00 |
0.87% |
0.75% |
2.33% |
0.75% |
$117,609 |
61% |
|
4/1/2021
- 3/31/2022 |
10.57 |
0.12 |
(0.31) |
(0.19) |
(0.12) |
(0.10) |
(0.22) |
10.16 |
0.87% |
0.75% |
1.14% |
(1.85%) |
174,444 |
60% |
|
4/1/2020
- 3/31/2021 |
10.05 |
0.16 |
0.52 |
0.68 |
(0.16) |
— |
(0.16) |
10.57 |
0.88% |
0.75% |
1.50% |
6.78% |
204,761 |
76% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Selected
Per Share Data |
|
Ratios
to Average Net Assets |
Supplemental
Data |
|
4/1/2019
- 3/31/2020 |
10.30 |
0.24 |
(0.25) |
(0.01) |
(0.24) |
— |
(0.24) |
10.05 |
0.99% |
0.75% |
2.33% |
(0.13%) |
154,309 |
56% |
|
4/1/2018
- 3/31/2019 |
10.24 |
0.26 |
0.05 |
0.31 |
(0.25) |
— |
(0.25) |
10.30 |
1.03% |
0.75% |
2.57% |
3.11% |
118,935 |
50% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$10.14 |
$0.16 |
($0.16) |
$0.00(7) |
($0.16) |
$— |
($0.16) |
$9.98 |
1.62% |
1.50% |
1.58% |
0.00% |
$30,904 |
61% |
|
4/1/2021
- 3/31/2022 |
10.55 |
0.04 |
(0.31) |
(0.27) |
(0.04) |
(0.10) |
(0.14) |
10.14 |
1.62% |
1.50% |
0.39% |
(2.59%) |
39,891 |
60% |
|
4/1/2020
- 3/31/2021 |
10.03 |
0.08 |
0.52 |
0.60 |
(0.08) |
— |
(0.08) |
10.55 |
1.63% |
1.50% |
0.75% |
6.00% |
51,385 |
76% |
|
4/1/2019
- 3/31/2020 |
10.28 |
0.16 |
(0.25) |
(0.09) |
(0.16) |
— |
(0.16) |
10.03 |
1.74% |
1.50% |
1.58% |
(0.87%) |
48,816 |
56% |
|
4/1/2018
- 3/31/2019 |
10.22 |
0.19 |
0.05 |
0.24 |
(0.18) |
— |
(0.18) |
10.28 |
1.78% |
1.50% |
1.82% |
2.35% |
46,167 |
50% |
|
Class
I |
|
4/1/2022
- 3/31/2023 |
$10.14 |
$0.26 |
($0.16) |
$0.10 |
($0.26) |
$— |
($0.26) |
$9.98 |
0.62% |
0.45% |
2.63% |
1.06% |
$195,023 |
61% |
|
4/1/2021
- 3/31/2022 |
10.56 |
0.15 |
(0.32) |
(0.17) |
(0.15) |
(0.10) |
(0.25) |
10.14 |
0.62% |
0.48% |
1.40% |
(1.69%) |
171,154 |
60% |
|
4/1/2020
- 3/31/2021 |
10.03 |
0.18 |
0.54 |
0.72 |
(0.19) |
— |
(0.19) |
10.56 |
0.63% |
0.50% |
1.75% |
7.16% |
141,974 |
76% |
|
4/1/2019
- 3/31/2020 |
10.29 |
0.27 |
(0.26) |
0.01 |
(0.27) |
— |
(0.27) |
10.03 |
0.63% |
0.50% |
2.58% |
0.03% |
106,402 |
56% |
|
4/1/2018
- 3/31/2019 |
10.22 |
0.29 |
0.06 |
0.35 |
(0.28) |
— |
(0.28) |
10.29 |
0.63% |
0.50% |
2.82% |
3.47% |
83,436 |
50% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$10.16 |
$0.26 |
($0.16) |
$0.10 |
($0.26) |
$— |
($0.26) |
$10.00 |
0.62% |
0.50% |
2.58% |
1.01% |
$651,148 |
61% |
|
4/1/2021
- 3/31/2022 |
10.58 |
0.15 |
(0.32) |
(0.17) |
(0.15) |
(0.10) |
(0.25) |
10.16 |
0.62% |
0.50% |
1.39% |
(1.70%) |
622,664 |
60% |
|
4/1/2020
- 3/31/2021 |
10.05 |
0.18 |
0.54 |
0.72 |
(0.19) |
— |
(0.19) |
10.58 |
0.63% |
0.50% |
1.75% |
7.14% |
778,271 |
76% |
|
4/1/2019
- 3/31/2020 |
10.31 |
0.27 |
(0.26) |
0.01 |
(0.27) |
— |
(0.27) |
10.05 |
0.73% |
0.50% |
2.58% |
0.02% |
717,804 |
56% |
|
4/1/2018
- 3/31/2019 |
10.24 |
0.29 |
0.06 |
0.35 |
(0.28) |
— |
(0.28) |
10.31 |
0.78% |
0.50% |
2.82% |
3.46% |
483,476 |
50% |
|
Pacific
Funds Core Income
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$10.41 |
$0.31 |
($0.72) |
($0.41) |
($0.32) |
$— |
($0.32) |
$9.68 |
0.97% |
0.85% |
3.25% |
(3.90%) |
$99,406 |
118% |
|
4/1/2021
- 3/31/2022 |
11.18 |
0.20 |
(0.52) |
(0.32) |
(0.21) |
(0.24) |
(0.45) |
10.41 |
0.97% |
0.85% |
1.83% |
(3.11%) |
127,727 |
82% |
|
4/1/2020
- 3/31/2021 |
10.60 |
0.22 |
0.66 |
0.88 |
(0.22) |
(0.08) |
(0.30) |
11.18 |
0.98% |
0.85% |
1.95% |
8.29% |
160,701 |
102% |
|
4/1/2019
- 3/31/2020 |
10.52 |
0.29 |
0.08 |
0.37 |
(0.29) |
— |
(0.29) |
10.60 |
1.09% |
0.85% |
2.70% |
3.51% |
140,650 |
70% |
|
4/1/2018
- 3/31/2019 |
10.45 |
0.33 |
0.07 |
0.40 |
(0.33) |
— |
(0.33) |
10.52 |
1.13% |
0.85% |
3.22% |
3.99% |
82,136 |
93% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$10.41 |
$0.24 |
($0.73) |
($0.49) |
($0.24) |
$— |
($0.24) |
$9.68 |
1.72% |
1.60% |
2.50% |
(4.63%) |
$23,038 |
118% |
|
4/1/2021
- 3/31/2022 |
11.18 |
0.12 |
(0.53) |
(0.41) |
(0.12) |
(0.24) |
(0.36) |
10.41 |
1.72% |
1.60% |
1.08% |
(3.84%) |
35,731 |
82% |
|
4/1/2020
- 3/31/2021 |
10.60 |
0.14 |
0.66 |
0.80 |
(0.14) |
(0.08) |
(0.22) |
11.18 |
1.73% |
1.60% |
1.20% |
7.48% |
53,990 |
102% |
|
4/1/2019
- 3/31/2020 |
10.52 |
0.21 |
0.08 |
0.29 |
(0.21) |
— |
(0.21) |
10.60 |
1.84% |
1.60% |
1.95% |
2.73% |
58,397 |
70% |
|
4/1/2018
- 3/31/2019 |
10.46 |
0.26 |
0.06 |
0.32 |
(0.26) |
— |
(0.26) |
10.52 |
1.88% |
1.60% |
2.47% |
3.11% |
81,309 |
93% |
|
Class
I |
|
4/1/2022
- 3/31/2023 |
$10.42 |
$0.34 |
($0.72) |
($0.38) |
($0.35) |
$— |
($0.35) |
$9.69 |
0.72% |
0.55% |
3.55% |
(3.60%) |
$116,338 |
118% |
|
4/1/2021
- 3/31/2022 |
11.19 |
0.24 |
(0.53) |
(0.29) |
(0.24) |
(0.24) |
(0.48) |
10.42 |
0.72% |
0.55% |
2.13% |
(2.81%) |
118,420 |
82% |
|
4/1/2020
- 3/31/2021 |
10.61 |
0.25 |
0.67 |
0.92 |
(0.26) |
(0.08) |
(0.34) |
11.19 |
0.73% |
0.55% |
2.25% |
8.61% |
107,857 |
102% |
|
4/1/2019
- 3/31/2020 |
10.53 |
0.33 |
0.07 |
0.40 |
(0.32) |
— |
(0.32) |
10.61 |
0.73% |
0.55% |
3.00% |
3.81% |
60,355 |
70% |
|
4/1/2018
- 3/31/2019 |
10.46 |
0.36 |
0.08 |
0.44 |
(0.37) |
— |
(0.37) |
10.53 |
0.73% |
0.55% |
3.52% |
4.30% |
26,394 |
93% |
|
Class
P |
|
4/1/2022
- 3/31/2023 |
$10.45 |
$0.34 |
($0.72) |
($0.38) |
($0.35) |
$— |
($0.35) |
$9.72 |
0.72% |
0.55% |
3.55% |
(3.59%) |
$71,459 |
118% |
|
4/1/2021
- 3/31/2022 |
11.23 |
0.24 |
(0.54) |
(0.30) |
(0.24) |
(0.24) |
(0.48) |
10.45 |
0.72% |
0.55% |
2.13% |
(2.88%) |
34,896 |
82% |
|
4/1/2020
- 3/31/2021 |
10.64 |
0.26 |
0.67 |
0.93 |
(0.26) |
(0.08) |
(0.34) |
11.23 |
0.73% |
0.55% |
2.25% |
8.68% |
46,122 |
102% |
|
4/1/2019
- 3/31/2020 |
10.56 |
0.33 |
0.08 |
0.41 |
(0.33) |
— |
(0.33) |
10.64 |
0.73% |
0.55% |
3.00% |
3.80% |
31,831 |
70% |
|
4/1/2018
- 3/31/2019 |
10.49 |
0.37 |
0.07 |
0.44 |
(0.37) |
— |
(0.37) |
10.56 |
0.73% |
0.55% |
3.52% |
4.29% |
40,570 |
93% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$10.43 |
$0.34 |
($0.72) |
($0.38) |
($0.35) |
$— |
($0.35) |
$9.70 |
0.72% |
0.55% |
3.55% |
(3.60%) |
$600,431 |
118% |
|
4/1/2021
- 3/31/2022 |
11.21 |
0.24 |
(0.54) |
(0.30) |
(0.24) |
(0.24) |
(0.48) |
10.43 |
0.72% |
0.55% |
2.13% |
(2.89%) |
625,283 |
82% |
|
4/1/2020
- 3/31/2021 |
10.62 |
0.26 |
0.67 |
0.93 |
(0.26) |
(0.08) |
(0.34) |
11.21 |
0.73% |
0.55% |
2.25% |
8.70% |
801,154 |
102% |
|
4/1/2019
- 3/31/2020 |
10.54 |
0.33 |
0.08 |
0.41 |
(0.33) |
— |
(0.33) |
10.62 |
0.84% |
0.55% |
3.00% |
3.81% |
679,287 |
70% |
|
4/1/2018
- 3/31/2019 |
10.48 |
0.36 |
0.07 |
0.43 |
(0.37) |
— |
(0.37) |
10.54 |
0.88% |
0.55% |
3.52% |
4.19% |
393,645 |
93% |
|
Pacific
Funds ESG Core Bond
(6) |
|
Class
I |
|
4/1/2022
- 3/31/2023 |
$9.17 |
$0.20 |
($0.58) |
($0.38) |
($0.20) |
$— |
($0.20) |
$8.59 |
0.88% |
0.48% |
2.30% |
(4.12%) |
$15,172 |
42% |
|
4/1/2021
- 3/31/2022 |
9.70 |
0.10 |
(0.52) |
(0.42) |
(0.11) |
— |
(0.11) |
9.17 |
1.01% |
0.48% |
1.06% |
(4.37%) |
14,534 |
51% |
|
12/14/2020
- 3/31/2021 |
10.00 |
0.03 |
(0.30) |
(0.27) |
(0.03) |
— |
(0.03) |
9.70 |
0.97% |
0.48% |
0.88% |
(2.73%) |
12,156 |
26% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$9.17 |
$0.20 |
($0.58) |
($0.38) |
($0.20) |
$— |
($0.20) |
$8.59 |
0.88% |
0.48% |
2.30% |
(4.12%) |
$11,144 |
42% |
|
4/1/2021
- 3/31/2022 |
9.70 |
0.10 |
(0.52) |
(0.42) |
(0.11) |
— |
(0.11) |
9.17 |
1.01% |
0.48% |
1.06% |
(4.37%) |
11,626 |
51% |
|
2/14/2020
- 3/31/2021 |
10.00 |
0.03 |
(0.30) |
(0.27) |
(0.03) |
— |
(0.03) |
9.70 |
0.97% |
0.48% |
0.88% |
(2.73%) |
12,156 |
26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Selected
Per Share Data |
|
Ratios
to Average Net Assets |
Supplemental
Data |
|
Pacific
Funds Strategic Income
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$10.96 |
$0.44 |
($0.72) |
($0.28) |
($0.44) |
($0.04) |
($0.48) |
$10.20 |
1.07% |
0.94% |
4.34% |
(2.41%) |
$101,292 |
45% |
|
4/1/2021
- 3/31/2022 |
11.52 |
0.33 |
(0.47) |
(0.14) |
(0.32) |
(0.10) |
(0.42) |
10.96 |
1.07% |
0.94% |
2.85% |
(1.30%) |
134,612 |
40% |
|
4/1/2020
- 3/31/2021 |
9.72 |
0.40 |
1.79 |
2.19 |
(0.39) |
— |
(0.39) |
11.52 |
1.08% |
0.95% |
3.57% |
22.82% |
104,659 |
86% |
|
4/1/2019
- 3/31/2020 |
10.60 |
0.43 |
(0.88) |
(0.45) |
(0.43) |
— |
(0.43) |
9.72 |
1.19% |
0.95% |
3.94% |
(4.58%) |
71,510 |
98% |
|
4/1/2018
- 3/31/2019 |
10.71 |
0.47 |
(0.11) |
0.36 |
(0.47) |
— |
(0.47) |
10.60 |
1.23% |
0.95% |
4.43% |
3.43% |
61,503 |
99% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$10.93 |
$0.37 |
($0.72) |
($0.35) |
($0.36) |
($0.04) |
($0.40) |
$10.18 |
1.82% |
1.68% |
3.60% |
(3.04%) |
$63,154 |
45% |
|
4/1/2021
- 3/31/2022 |
11.49 |
0.25 |
(0.47) |
(0.22) |
(0.24) |
(0.10) |
(0.34) |
10.93 |
1.82% |
1.64% |
2.15% |
(1.99%) |
78,497 |
40% |
|
4/1/2020
- 3/31/2021 |
9.69 |
0.32 |
1.80 |
2.12 |
(0.32) |
— |
(0.32) |
11.49 |
1.83% |
1.65% |
2.87% |
22.04% |
72,157 |
86% |
|
4/1/2019
- 3/31/2020 |
10.58 |
0.35 |
(0.89) |
(0.54) |
(0.35) |
— |
(0.35) |
9.69 |
1.94% |
1.65% |
3.24% |
(5.35%) |
63,134 |
98% |
|
4/1/2018
- 3/31/2019 |
10.69 |
0.39 |
(0.11) |
0.28 |
(0.39) |
— |
(0.39) |
10.58 |
1.98% |
1.65% |
3.73% |
2.73% |
58,634 |
99% |
|
Class
I |
|
4/1/2022
- 3/31/2023 |
$10.89 |
$0.47 |
($0.71) |
($0.24) |
($0.47) |
($0.04) |
($0.51) |
$10.14 |
0.82% |
0.64% |
4.64% |
(2.03%) |
$126,525 |
45% |
|
4/1/2021
- 3/31/2022 |
11.45 |
0.36 |
(0.46) |
(0.10) |
(0.36) |
(0.10) |
(0.46) |
10.89 |
0.82% |
0.64% |
3.15% |
(1.02%) |
142,365 |
40% |
|
4/1/2020
- 3/31/2021 |
9.66 |
0.42 |
1.80 |
2.22 |
(0.43) |
— |
(0.43) |
11.45 |
0.84% |
0.65% |
3.87% |
23.23% |
13,842 |
86% |
|
4/1/2019
- 3/31/2020 |
10.54 |
0.46 |
(0.88) |
(0.42) |
(0.46) |
— |
(0.46) |
9.66 |
0.83% |
0.65% |
4.24% |
(4.32%) |
16,622 |
98% |
|
4/1/2018
- 3/31/2019 |
10.65 |
0.50 |
(0.11) |
0.39 |
(0.50) |
— |
(0.50) |
10.54 |
0.83% |
0.65% |
4.73% |
3.77% |
5,750 |
99% |
|
Class
I-2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4/1/2022
- 3/31/2023 |
$10.97 |
$0.47 |
($0.73) |
($0.26) |
($0.46) |
($0.04) |
($0.50) |
$10.21 |
0.82% |
0.69% |
4.59% |
(2.16%) |
$1,185,434 |
45% |
|
4/1/2021
- 3/31/2022 |
11.52 |
0.36 |
(0.46) |
(0.10) |
(0.35) |
(0.10) |
(0.45) |
10.97 |
0.82% |
0.69% |
3.10% |
(0.97%) |
1,245,830 |
40% |
|
4/1/2020
- 3/31/2021 |
9.72 |
0.43 |
1.79 |
2.22 |
(0.42) |
— |
(0.42) |
11.52 |
0.83% |
0.70% |
3.82% |
23.12% |
832,054 |
86% |
|
4/1/2019
- 3/31/2020 |
10.60 |
0.45 |
(0.87) |
(0.42) |
(0.46) |
— |
(0.46) |
9.72 |
0.94% |
0.70% |
4.19% |
(4.34%) |
491,221 |
98% |
|
4/1/2018
- 3/31/2019 |
10.71 |
0.49 |
(0.11) |
0.38 |
(0.49) |
— |
(0.49) |
10.60 |
0.98% |
0.70% |
4.68% |
3.70% |
456,428 |
99% |
|
Pacific
Funds Floating Rate Income
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$9.66 |
$0.59 |
($0.38) |
$0.21 |
($0.59) |
$— |
($0.59) |
$9.28 |
1.13% |
0.98%(8) |
6.35% |
2.50% |
$265,188 |
66% |
|
4/1/2021
- 3/31/2022 |
9.72 |
0.35 |
(0.06) |
0.29 |
(0.35) |
— |
(0.35) |
9.66 |
1.13% |
1.00% |
3.56% |
2.87% |
280,827 |
90% |
|
4/1/2020
- 3/31/2021 |
8.80 |
0.34 |
0.92 |
1.26 |
(0.34) |
— |
(0.34) |
9.72 |
1.17% |
1.02% |
3.63% |
14.52% |
170,353 |
116% |
|
4/1/2019
- 3/31/2020 |
9.88 |
0.46 |
(1.08) |
(0.62) |
(0.46) |
— |
(0.46) |
8.80 |
1.27% |
1.02% |
4.64% |
(6.69%) |
162,511 |
116% |
|
4/1/2018
- 3/31/2019 |
10.12 |
0.49 |
(0.24) |
0.25 |
(0.49) |
— |
(0.49) |
9.88 |
1.29% |
1.01% |
4.92% |
2.57% |
202,929 |
122% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$9.64 |
$0.52 |
($0.37) |
$0.15 |
($0.52) |
$— |
($0.52) |
$9.27 |
1.88% |
1.71%(8) |
5.61% |
1.75% |
$109,877 |
66% |
|
4/1/2021
- 3/31/2022 |
9.71 |
0.28 |
(0.07) |
0.21 |
(0.28) |
— |
(0.28) |
9.64 |
1.88% |
1.70% |
2.86% |
2.15% |
109,161 |
90% |
|
4/1/2020
- 3/31/2021 |
8.79 |
0.28 |
0.92 |
1.20 |
(0.28) |
— |
(0.28) |
9.71 |
1.92% |
1.72% |
2.93% |
13.74% |
87,940 |
116% |
|
4/1/2019
- 3/31/2020 |
9.86 |
0.39 |
(1.08) |
(0.69) |
(0.38) |
— |
(0.38) |
8.79 |
2.03% |
1.72% |
3.94% |
(7.31%) |
102,846 |
116% |
|
4/1/2018
- 3/31/2019 |
10.10 |
0.42 |
(0.24) |
0.18 |
(0.42) |
— |
(0.42) |
9.86 |
2.04% |
1.71% |
4.22% |
1.86% |
197,081 |
122% |
|
Class
I |
|
4/1/2022
- 3/31/2023 |
$9.67 |
$0.62 |
($0.38) |
$0.24 |
($0.62) |
$— |
($0.62) |
$9.29 |
0.88% |
0.68%(8) |
6.65% |
2.69% |
$1,486,461 |
66% |
|
4/1/2021
- 3/31/2022 |
9.73 |
0.38 |
(0.06) |
0.32 |
(0.38) |
— |
(0.38) |
9.67 |
0.88% |
0.70% |
3.86% |
3.29% |
1,838,625 |
90% |
|
4/1/2020
- 3/31/2021 |
8.81 |
0.38 |
0.91 |
1.29 |
(0.37) |
— |
(0.37) |
9.73 |
0.91% |
0.72% |
3.93% |
14.87% |
1,019,062 |
116% |
|
4/1/2019
- 3/31/2020 |
9.90 |
0.49 |
(1.09) |
(0.60) |
(0.49) |
— |
(0.49) |
8.81 |
0.91% |
0.72% |
4.94% |
(6.49%) |
415,170 |
116% |
|
4/1/2018
- 3/31/2019 |
10.14 |
0.52 |
(0.23) |
0.29 |
(0.53) |
— |
(0.53) |
9.90 |
0.90% |
0.71% |
5.22% |
2.88% |
497,335 |
122% |
|
Class
P |
|
4/1/2022
- 3/31/2023 |
$9.67 |
$0.62 |
($0.38) |
$0.24 |
($0.62) |
$— |
($0.62) |
$9.29 |
0.88% |
0.68%(8) |
6.65% |
2.71% |
$29,744 |
66% |
|
4/1/2021
- 3/31/2022 |
9.73 |
0.38 |
(0.06) |
0.32 |
(0.38) |
— |
(0.38) |
9.67 |
0.89% |
0.70% |
3.86% |
3.28% |
53,045 |
90% |
|
4/1/2020-
3/31/2021 |
8.81 |
0.37 |
0.92 |
1.29 |
(0.37) |
— |
(0.37) |
9.73 |
0.91% |
0.72% |
3.93% |
14.85% |
9,560 |
116% |
|
4/1/2019
- 3/31/2020 |
9.90 |
0.49 |
(1.09) |
(0.60) |
(0.49) |
— |
(0.49) |
8.81 |
0.91% |
0.72% |
4.95% |
(6.49%) |
7,900 |
116% |
|
4/1/2018
- 3/31/2019 |
10.14 |
0.53 |
(0.25) |
0.28 |
(0.52) |
— |
(0.52) |
9.90 |
0.89% |
0.71% |
5.22% |
2.87% |
32,176 |
122% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$9.69 |
$0.61 |
($0.37) |
$0.24 |
($0.62) |
$— |
($0.62) |
$9.31 |
0.88% |
0.73%(8) |
6.60% |
2.66% |
$1,840,333 |
66% |
|
4/1/2021
- 3/31/2022 |
9.75 |
0.37 |
(0.06) |
0.31 |
(0.37) |
— |
(0.37) |
9.69 |
0.88% |
0.75% |
3.81% |
3.25% |
1,778,969 |
90% |
|
4/1/2020
- 3/31/2021 |
8.83 |
0.37 |
0.92 |
1.29 |
(0.37) |
— |
(0.37) |
9.75 |
0.91% |
0.77% |
3.88% |
14.78% |
716,233 |
116% |
|
4/1/2019
- 3/31/2020 |
9.92 |
0.48 |
(1.09) |
(0.61) |
(0.48) |
— |
(0.48) |
8.83 |
1.03% |
0.77% |
4.89% |
(6.52%) |
506,347 |
116% |
|
4/1/2018
- 3/31/2019 |
10.16 |
0.52 |
(0.24) |
0.28 |
(0.52) |
— |
(0.52) |
9.92 |
1.04% |
0.76% |
5.17% |
2.83% |
830,452 |
122% |
|
Pacific
Funds High Income
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$9.85 |
$0.49 |
($0.81) |
($0.32) |
($0.50) |
$— |
($0.50) |
$9.03 |
1.16% |
0.95% |
5.37% |
(3.09%) |
$6,141 |
35% |
|
4/1/2021
- 3/31/2022 |
10.34 |
0.47 |
(0.50) |
(0.03) |
(0.46) |
— |
(0.46) |
9.85 |
1.12% |
0.95% |
4.53% |
(0.36%) |
6,816 |
40% |
|
4/1/2020
- 3/31/2021 |
8.75 |
0.51 |
1.59 |
2.10 |
(0.51) |
— |
(0.51) |
10.34 |
1.13% |
0.95% |
5.13% |
24.45% |
7,496 |
66% |
|
4/1/2019
- 3/31/2020 |
10.07 |
0.52 |
(1.33) |
(0.81) |
(0.51) |
— |
(0.51) |
8.75 |
1.24% |
0.95% |
5.11% |
(8.61%) |
7,227 |
63% |
|
4/1/2018
- 3/31/2019 |
10.23 |
0.55 |
(0.16) |
0.39 |
(0.55) |
— |
(0.55) |
10.07 |
1.31% |
0.95% |
5.48% |
3.97% |
5,174 |
64% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Selected
Per Share Data |
|
Ratios
to Average Net Assets |
Supplemental
Data |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$9.83 |
$0.42 |
($0.80) |
($0.38) |
($0.43) |
$— |
($0.43) |
$9.02 |
1.91% |
1.68% |
4.64% |
(3.81%) |
$903 |
35% |
|
4/1/2021
- 3/31/2022 |
10.33 |
0.40 |
(0.51) |
(0.11) |
(0.39) |
— |
(0.39) |
9.83 |
1.87% |
1.65% |
3.83% |
(1.17%) |
1,291 |
40% |
|
4/1/2020
- 3/31/2021 |
8.74 |
0.44 |
1.59 |
2.03 |
(0.44) |
— |
(0.44) |
10.33 |
1.88% |
1.65% |
4.43% |
23.61% |
1,937 |
66% |
|
4/1/2019
- 3/31/2020 |
10.06 |
0.45 |
(1.33) |
(0.88) |
(0.44) |
— |
(0.44) |
8.74 |
2.00% |
1.65% |
4.41% |
(9.28%) |
2,007 |
63% |
|
4/1/2018
- 3/31/2019 |
10.21 |
0.48 |
(0.15) |
0.33 |
(0.48) |
— |
(0.48) |
10.06 |
2.06% |
1.65% |
4.78% |
3.35% |
3,726 |
64% |
|
Class
I |
|
4/1/2022
- 3/31/2023 |
$9.74 |
$0.50 |
($0.80) |
($0.30) |
($0.53) |
$— |
($0.53) |
$8.91 |
0.92% |
0.65% |
5.67% |
(2.91%) |
$1,694 |
35% |
|
4/1/2021
- 3/31/2022 |
10.24 |
0.49 |
(0.50) |
(0.01) |
(0.49) |
— |
(0.49) |
9.74 |
0.87% |
0.69% |
4.79% |
(0.20%) |
86 |
40% |
|
4/1/2020
- 3/31/2021 |
8.66 |
0.53 |
1.59 |
2.12 |
(0.54) |
— |
(0.54) |
10.24 |
0.88% |
0.70% |
5.38% |
24.76% |
62 |
66% |
|
4/1/2019
- 3/31/2020 |
9.98 |
0.54 |
(1.33) |
(0.79) |
(0.53) |
— |
(0.53) |
8.66 |
0.88% |
0.70% |
5.36% |
(8.36%) |
54 |
63% |
|
4/1/2018
- 3/31/2019 |
10.14 |
0.57 |
(0.16) |
0.41 |
(0.57) |
— |
(0.57) |
9.98 |
0.91% |
0.70% |
5.73% |
4.27% |
175 |
64% |
|
Class
P |
|
4/1/2022
- 3/31/2023 |
$9.74 |
$0.51 |
($0.80) |
($0.29) |
($0.53) |
$— |
($0.53) |
$8.92 |
0.91% |
0.65% |
5.67% |
(2.83%) |
$60,734 |
35% |
|
4/1/2021
- 3/31/2022 |
10.24 |
0.49 |
(0.50) |
(0.01) |
(0.49) |
— |
(0.49) |
9.74 |
0.87% |
0.69% |
4.79% |
(0.20%) |
134,177 |
40% |
|
4/1/2020
- 3/31/2021 |
8.66 |
0.53 |
1.59 |
2.12 |
(0.54) |
— |
(0.54) |
10.24 |
0.88% |
0.70% |
5.38% |
24.91% |
146,345 |
66% |
|
4/1/2019
- 3/31/2020 |
9.98 |
0.54 |
(1.33) |
(0.79) |
(0.53) |
— |
(0.53) |
8.66 |
0.88% |
0.70% |
5.36% |
(8.46%) |
120,807 |
63% |
|
4/1/2018
- 3/31/2019 |
10.14 |
0.57 |
(0.16) |
0.41 |
(0.57) |
— |
(0.57) |
9.98 |
0.91% |
0.70% |
5.73% |
4.27% |
113,317 |
64% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$9.87 |
$0.51 |
($0.81) |
($0.30) |
($0.52) |
— |
($0.52) |
$9.05 |
0.91% |
0.70% |
5.62% |
(2.84%) |
$8,707 |
35% |
|
4/1/2021
- 3/31/2022 |
10.36 |
0.50 |
(0.50) |
0.00(7) |
(0.49) |
— |
(0.49) |
9.87 |
0.87% |
0.70% |
4.78% |
(0.11%) |
6,741 |
40% |
|
4/1/2020
- 3/31/2021 |
8.76 |
0.54 |
1.60 |
2.14 |
(0.54) |
— |
(0.54) |
10.36 |
0.88% |
0.70% |
5.38% |
24.86% |
3,937 |
66% |
|
4/1/2019
- 3/31/2020 |
10.08 |
0.54 |
(1.33) |
(0.79) |
(0.53) |
— |
(0.53) |
8.76 |
1.00% |
0.70% |
5.36% |
(8.38%) |
3,329 |
63% |
|
4/1/2018
- 3/31/2019 |
10.24 |
0.58 |
(0.17) |
0.41 |
(0.57) |
— |
(0.57) |
10.08 |
1.06% |
0.70% |
5.73% |
4.23% |
3,669 |
64% |
|
Pacific
Funds Small/Mid-Cap
(6) |
|
Class
A |
|
4/1/2022
- 3/31/2023 |
$15.98 |
$0.04 |
($1.91) |
($1.87) |
$— |
($4.82) |
($4.82) |
$9.29 |
1.29% |
1.21% |
0.34% |
(11.41%) |
$13,055 |
33% |
|
4/1/2021
- 3/31/2022 |
17.47 |
(0.07) |
(0.34) |
(0.41) |
— |
(1.08) |
(1.08) |
15.98 |
1.23% |
1.20% |
(0.38%) |
(2.82%) |
19,675 |
34% |
|
4/1/2020
- 3/31/2021 |
9.52 |
(0.04) |
7.99 |
7.95 |
— |
— |
— |
17.47 |
1.24% |
1.20% |
(0.33%) |
83.51% |
22,988 |
64% |
|
4/1/2019
- 3/31/2020 |
13.02 |
(0.00)(7) |
(3.47) |
(3.47) |
(0.03) |
— |
(0.03) |
9.52 |
1.37% |
1.23% |
(0.03%) |
(26.71%) |
14,379 |
36% |
|
4/1/2018
- 3/31/2019 |
13.23 |
(0.02) |
0.16 |
0.14 |
— |
(0.35) |
(0.35) |
13.02 |
1.48% |
1.30% |
(0.11%) |
1.19% |
21,872 |
33% |
|
Class
C |
|
4/1/2022
- 3/31/2023 |
$15.24 |
($0.05) |
($1.82) |
($1.87) |
$— |
($4.82) |
($4.82) |
$8.55 |
2.04% |
1.96% |
(0.41%) |
(12.01%) |
$5,260 |
33% |
|
4/1/2021
- 3/31/2022 |
16.83 |
(0.19) |
(0.32) |
(0.51) |
— |
(1.08) |
(1.08) |
15.24 |
1.98% |
1.95% |
(1.13%) |
(3.53%) |
9,370 |
34% |
|
4/1/2020
- 3/31/2021 |
9.24 |
(0.14) |
7.73 |
7.59 |
— |
— |
— |
16.83 |
1.99% |
1.95% |
(1.08%) |
82.14% |
10,990 |
64% |
|
4/1/2019
- 3/31/2020 |
12.70 |
(0.10) |
(3.36) |
(3.46) |
— |
— |
— |
9.24 |
2.13% |
1.98% |
(0.78%) |
(27.24%) |
9,277 |
36% |
|
4/1/2018
- 3/31/2019 |
13.01 |
(0.11) |
0.15 |
0.04 |
— |
(0.35) |
(0.35) |
12.70 |
2.23% |
2.05% |
(0.87%) |
0.43% |
16,875 |
33% |
|
Class
R6 |
|
4/1/2022
- 3/31/2023 |
$17.17 |
$0.09 |
($2.04) |
($1.95) |
$— |
($4.82) |
($4.82) |
$10.40 |
1.03% |
0.86% |
0.69% |
(11.11%) |
$497 |
33% |
|
4/1/2021
- 3/31/2022 |
17.61 |
(0.01) |
(0.43) |
(0.44) |
— |
— |
— |
17.17 |
0.98% |
0.85% |
(0.03%) |
(2.44%) |
1,017 |
34% |
|
4/1/2020
- 3/31/2021 |
9.59 |
0.00(7) |
8.08 |
8.08 |
(0.06) |
— |
(0.06) |
17.61 |
0.99% |
0.86% |
0.01% |
84.32% |
1,558 |
64% |
|
4/1/2019
- 3/31/2020 |
13.12 |
0.04 |
(3.50) |
(3.46) |
(0.07) |
— |
(0.07) |
9.59 |
1.01% |
0.93% |
0.27% |
(26.57%) |
4,802 |
36% |
|
4/1/2018
- 3/31/2019 |
13.29 |
0.02 |
0.16 |
0.18 |
(0.00)(7) |
(0.35) |
(0.35) |
13.12 |
1.08% |
1.00% |
0.19% |
1.52% |
6,422 |
33% |
|
Class
I-2 |
|
4/1/2022
- 3/31/2023 |
$16.12 |
$0.08 |
($1.92) |
($1.84) |
$— |
($4.82) |
($4.82) |
$9.46 |
1.04% |
0.96% |
0.59% |
(11.15%) |
$72,294 |
33% |
|
4/1/2021
- 3/31/2022 |
17.57 |
(0.02) |
(0.35) |
(0.37) |
— |
(1.08) |
(1.08) |
16.12 |
0.98% |
0.95% |
(0.13%) |
(2.52%) |
184,718 |
34% |
|
4/1/2020
- 3/31/2021 |
9.58 |
(0.01) |
8.05 |
8.04 |
(0.05) |
— |
(0.05) |
17.57 |
1.00% |
0.95% |
(0.08%) |
84.04% |
312,981 |
64% |
|
4/1/2019
- 3/31/2020 |
13.11 |
0.03 |
(3.50) |
(3.47) |
(0.06) |
— |
(0.06) |
9.58 |
1.12% |
0.98% |
0.22% |
(26.61%) |
214,344 |
36% |
|
4/1/2018
- 3/31/2019 |
13.28 |
0.02 |
0.16 |
0.18 |
(0.00)(7) |
(0.35) |
(0.35) |
13.11 |
1.23% |
1.05% |
0.13% |
1.50% |
328,171 |
33% |
|
PF
Growth Fund |
|
Class
P |
|
4/1/2022
- 3/31/2023 |
$29.12 |
$0.01 |
($4.62) |
($4.61) |
$— |
($12.15) |
($12.15) |
$12.36 |
0.86% |
0.70% |
0.03% |
(13.10%) |
$146,168 |
78% |
|
4/1/2021
- 3/31/2022 |
30.54 |
(0.10) |
3.07 |
2.97 |
— |
(4.39) |
(4.39) |
29.12 |
0.77% |
0.70% |
(0.30%) |
7.84% |
158,592 |
10% |
|
4/1/2020
- 3/31/2021 |
27.10 |
(0.08) |
13.51 |
13.43 |
— |
(9.99) |
(9.99) |
30.54 |
0.78% |
0.70% |
(0.24%) |
50.42% |
179,183 |
32% |
|
4/1/2019
- 3/31/2020 |
27.18 |
(0.02) |
0.93 |
0.91 |
(0.00)(7) |
(0.99) |
(0.99) |
27.10 |
0.77% |
0.70% |
(0.06%) |
3.04% |
163,575 |
20% |
|
4/1/2018
- 3/31/2019 |
25.38 |
0.00(7) |
3.62 |
3.62 |
(0.01) |
(1.81) |
(1.82) |
27.18 |
0.77% |
0.70% |
0.01% |
14.99% |
186,331 |
28% |
|
(1)
For share classes that commenced operations after April 1, 2018, the first date
reported represents the commencement date of operations for that share class.
(2)
Net
investment income (loss) per share has been calculated using the average shares
method.
(3)
The ratios are annualized for periods of less than one full year.
(4)
The
ratios of expenses after expense reductions to average net assets are after
advisory fee waivers and adviser expense reimbursements, if any. The expense
ratios for all the Portfolio Optimization Funds do not include fees and expenses
of the Funds in which they invest.
(5)
The total returns include reinvestment of all dividends and capital gain
distributions, if any, and do not include deductions of any applicable sales
charges. Total returns are not annualized for periods less than one full year.
(6)
Advisor Class shares were renamed to Class I-2 shares on August 1, 2022.
(7)
Reflects
an amount rounding to less than $0.01 per share.
(8)
The annualized ratios of expenses, excluding interest expense, after expense
reductions to average net assets for the year ended March 31, 2023 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
Class
A |
Class
C |
Class
I |
Class
P |
Class
I-2 |
Pacific
Funds Floating Rate Income |
0.96 |
% |
1.69 |
% |
0.66 |
% |
0.66 |
% |
0.71 |
% |
(9)
Includes $0.09 per share return of capital distribution.
The
information in the following tables has been derived from the relevant
Predecessor Fund’s financial statements, which have been audited by Tait, Weller
& Baker LLP, which served as independent registered public accounting firm,
whose report, along with Predecessor Fund financial statements, is included in
the Predecessor Fund’s most recent annual report to shareholders, which is
available upon request.
Aristotle/Saul
Global Equity Fund
FINANCIAL
HIGHLIGHTS
Class
I
Per
share operating performance.
For
a capital share outstanding throughout each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Six Months Ended June 30, 2023 (Unaudited) |
|
For
the Year Ended December 31, |
|
|
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
Net
asset value, beginning of period |
$ |
12.98 |
|
|
$ |
16.53 |
|
|
$ |
14.18 |
|
|
$ |
12.79 |
|
|
$ |
10.76 |
|
|
$ |
13.29 |
|
|
Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)1 |
0.11 |
|
|
0.14 |
|
|
0.11 |
|
|
0.11 |
|
|
0.12 |
|
|
0.13 |
|
|
Net
realized and unrealized gain (loss) |
1.34 |
|
|
(3.01) |
|
|
2.65 |
|
|
2.01 |
|
|
2.83 |
|
|
(1.35) |
|
|
Total
from investment operations |
1.45 |
|
|
(2.87) |
|
|
2.76 |
|
|
2.12 |
|
|
2.95 |
|
|
(1.22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
From
net investment income |
— |
|
|
(0.16) |
|
|
(0.11) |
|
|
(0.12) |
|
|
(0.17) |
|
|
(0.23) |
|
|
From
net realized gain |
— |
|
|
(0.52) |
|
|
(0.30) |
|
|
(0.61) |
|
|
(0.75) |
|
|
(1.08) |
|
|
Total
distributions |
— |
|
|
(0.68) |
|
|
(0.41) |
|
|
(0.73) |
|
|
(0.92) |
|
|
(1.31) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption
fee proceeds1 |
— |
|
|
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
|
— |
|
2 |
Net
asset value, end of period |
$ |
14.43 |
|
|
$ |
12.98 |
|
|
$ |
16.53 |
|
|
$ |
14.18 |
|
|
$ |
12.79 |
|
|
$ |
10.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return3 |
11.17 |
% |
4 |
(17.49) |
% |
|
19.54 |
% |
|
16.68 |
% |
|
27.55 |
% |
|
(9.53) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (in thousands) |
$ |
60,379 |
|
|
$ |
67,499 |
|
|
$ |
94,029 |
|
|
$ |
69,128 |
|
|
$ |
70,240 |
|
|
$ |
64,844 |
|
|
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
0.99 |
% |
5 |
0.95 |
% |
|
0.95 |
% |
|
1.07 |
% |
|
1.02 |
% |
|
1.20 |
% |
|
After
fees waived and expenses absorbed/recovered |
0.80 |
% |
5 |
0.80 |
% |
|
0.80 |
% |
|
0.80 |
% |
|
0.80 |
% |
|
0.93 |
% |
6 |
Ratio
of net investment income (loss) to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
1.40 |
% |
5 |
0.88 |
% |
|
0.55 |
% |
|
0.63 |
% |
|
0.75 |
% |
|
0.71 |
% |
|
After
fees waived and expenses absorbed/recovered |
1.59 |
% |
5 |
1.03 |
% |
|
0.70 |
% |
|
0.90 |
% |
|
0.97 |
% |
|
0.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
6 |
% |
4 |
22 |
% |
|
13 |
% |
|
12 |
% |
|
22 |
% |
|
37 |
% |
|
1Based
on average shares outstanding for the period.
2Amount
represents less than $0.01 per share.
3Total
returns would have been lower/higher had expenses not been waived or
absorbed/recovered by the Advisor. Returns shown do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
4Not
annualized.
5Annualized.
6Effective
September 1, 2018, the Fund's advisor had contractually agreed to waive its fees
and/or absorb expenses of the Fund to ensure that total annual fund operating
expenses (excluding taxes, leverage interest, brokerage commissions, dividend
expenses on short sales, acquired fund fees and expenses as determined in
accordance with SEC Form N-1A, expenses incurred in connection with any merger
or reorganization, or extraordinary expenses such as litigation) do not exceed
0.80% of average daily net assets of the Fund. Prior to September 1, 2018, the
annual operating expense limitation was 0.98%.
Aristotle
International Equity Fund
FINANCIAL
HIGHLIGHTS
Class
I
Per
share operating performance.
For
a capital share outstanding throughout each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Six Months Ended June 30, 2023 |
|
For
the Year Ended December 31, |
|
(Unaudited) |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
Net
asset value, beginning of period |
$ |
11.38 |
|
|
$ |
14.56 |
|
|
$ |
12.80 |
|
|
$ |
11.66 |
|
|
$ |
9.54 |
|
|
$ |
10.74 |
|
|
Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)1 |
0.13 |
|
|
0.15 |
|
|
0.13 |
|
|
0.10 |
|
|
0.18 |
|
|
0.16 |
|
|
Net
realized and unrealized gain (loss) |
1.23 |
|
|
(3.19) |
|
|
1.88 |
|
|
1.11 |
|
|
2.11 |
|
|
(1.22) |
|
|
Total
from investment operations |
1.36 |
|
|
(3.04) |
|
|
2.01 |
|
|
1.21 |
|
|
2.29 |
|
|
(1.06) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
From
net investment income |
— |
|
|
(0.14) |
|
|
(0.11) |
|
|
(0.07) |
|
|
(0.15) |
|
|
(0.14) |
|
|
From
net realized gain |
— |
|
|
— |
|
|
(0.14) |
|
|
— |
|
|
(0.02) |
|
|
— |
|
|
From
return of capital |
— |
|
|
— |
|
|
— |
|
2 |
— |
|
|
— |
|
|
— |
|
|
Total
distributions |
— |
|
|
(0.14) |
|
|
(0.25) |
|
|
(0.07) |
|
|
(0.17) |
|
|
(0.14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption
fee proceeds1 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
Net
asset value, end of period |
$ |
12.74 |
|
|
$ |
11.38 |
|
|
$ |
14.56 |
|
|
$ |
12.80 |
|
|
$ |
11.66 |
|
|
$ |
9.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return3 |
11.95 |
% |
4 |
(20.91) |
% |
|
15.79 |
% |
|
10.40 |
% |
|
23.98 |
% |
|
(9.89) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (in thousands) |
$ |
404,529 |
|
|
$ |
378,577 |
|
|
$ |
391,477 |
|
|
$ |
245,021 |
|
|
$ |
91,225 |
|
|
$ |
45,636 |
|
|
Ratio
of expenses to average net assets (including tax reclaim service
fees): |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
0.94 |
% |
5 |
0.94 |
% |
|
0.93 |
% |
|
1.04 |
% |
|
1.17 |
% |
|
1.42 |
% |
|
After
fees waived and expenses absorbed/recovered |
0.80 |
% |
5 |
0.80 |
% |
|
0.80 |
% |
|
0.80 |
% |
|
0.80 |
% |
|
0.88 |
% |
6 |
Ratio
of net investment income (loss) to average net assets (including tax
reclaim service fees): |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
2.04 |
% |
5 |
1.12 |
% |
|
0.78 |
% |
|
0.72 |
% |
|
1.26 |
% |
|
0.90 |
% |
|
After
fees waived and expenses absorbed/recovered |
2.18 |
% |
5 |
1.26 |
% |
|
0.91 |
% |
|
0.96 |
% |
|
1.63 |
% |
|
1.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
11 |
% |
4 |
18 |
% |
|
10 |
% |
|
14 |
% |
|
11 |
% |
|
17 |
% |
|
1Based
on average shares outstanding for the period.
2Amount
represents less than $0.01 per share.
3Total
returns would have been lower/higher had expenses not been waived or
absorbed/recovered by the Advisor. Returns shown do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
4Not
annualized.
5Annualized.
6Effective
September 1, 2018, the Fund's advisor had contractually agreed to waive its fees
and/or absorb expenses of the Fund to ensure that total annual fund operating
expenses (excluding taxes, leverage interest, brokerage commissions, dividend
expenses on short sales,
acquired
fund fees and expenses as determined in accordance with SEC Form N-1A, expenses
incurred in connection with any merger or reorganization, or extraordinary
expenses such as litigation) do not exceed 0.80% of average daily net assets of
the Fund. Prior to September 1, 2018, the annual operating expense limitation
was 0.93%.
Aristotle
Value Equity Fund
FINANCIAL
HIGHLIGHTS
Class
I
Per
share operating performance.
For
a capital share outstanding throughout each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Six Months Ended June 30, 2023 |
|
For
the Year Ended December 31, |
|
(Unaudited) |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
Net
asset value, beginning of period |
$ |
17.14 |
|
|
$ |
20.55 |
|
|
$ |
16.83 |
|
|
$ |
14.79 |
|
|
$ |
11.29 |
|
|
$ |
12.64 |
|
|
Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)1 |
0.13 |
|
|
0.21 |
|
|
0.16 |
|
|
0.13 |
|
|
0.13 |
|
|
0.13 |
|
|
Net
realized and unrealized gain (loss) |
1.28 |
|
|
(3.29) |
|
|
4.03 |
|
|
2.00 |
|
|
3.50 |
|
|
(1.33) |
|
|
Total
from investment operations |
1.41 |
|
|
(3.08) |
|
|
4.19 |
|
|
2.13 |
|
|
3.63 |
|
|
(1.20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
From
net investment income |
— |
|
|
(0.21) |
|
|
(0.13) |
|
|
(0.09) |
|
|
(0.13) |
|
|
(0.07) |
|
|
From
net realized gain |
— |
|
|
(0.12) |
|
|
(0.34) |
|
|
— |
|
|
— |
|
|
(0.08) |
|
|
Total
distributions |
— |
|
|
(0.33) |
|
|
(0.47) |
|
|
(0.09) |
|
|
(0.13) |
|
|
(0.15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption
fee proceeds1 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
Net
asset value, end of period |
$ |
18.55 |
|
|
$ |
17.14 |
|
|
$ |
20.55 |
|
|
$ |
16.83 |
|
|
$ |
14.79 |
|
|
$ |
11.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return3 |
8.23 |
% |
4 |
(15.04) |
% |
|
24.90 |
% |
|
14.38 |
% |
|
32.18 |
% |
|
(9.53) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (in thousands) |
$ |
678,603 |
|
|
$ |
683,322 |
|
|
$ |
947,191 |
|
|
$ |
396,792 |
|
|
$ |
99,537 |
|
|
$ |
98,731 |
|
|
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
0.72 |
% |
5 |
0.71 |
% |
|
0.71 |
% |
|
0.79 |
% |
|
0.93 |
% |
|
0.96 |
% |
|
After
fees waived and expenses absorbed/recovered |
0.69 |
% |
5 |
0.69 |
% |
|
0.69 |
% |
|
0.70 |
% |
6 |
0.78 |
% |
|
0.78 |
% |
|
Ratio
of net investment income (loss) to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
1.41 |
% |
5 |
1.16 |
% |
|
0.78 |
% |
|
0.83 |
% |
|
0.82 |
% |
|
0.89 |
% |
|
After
fees waived and expenses absorbed/recovered |
1.44 |
% |
5 |
1.18 |
% |
|
0.80 |
% |
|
0.92 |
% |
|
0.97 |
% |
|
1.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
3 |
% |
4 |
20 |
% |
|
14 |
% |
|
14 |
% |
|
86 |
% |
|
18 |
% |
|
1Based
on average shares outstanding for the period.
2Amount
represents less than $0.01 per share.
3Total
returns would have been lower/higher had expenses not been waived or
absorbed/recovered by the Advisor. Returns shown do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
4Not
annualized.
5Annualized.
6Effective
March 1, 2020, the Fund's advisor had contractually agreed to waive its fees
and/or absorb expenses of the Fund to ensure that total annual fund operating
expenses (excluding any taxes, leverage interest, brokerage commissions,
dividend and interest expenses on short sales, acquired fund fees and expenses
(as determined in accordance with Form N-1A), expenses incurred in connection
with any merger or reorganization, and extraordinary expenses such as litigation
expenses) do not exceed 0.69% of average daily net assets of the Fund. Prior to
March 1, 2020, the annual operating expense limitation was 0.78%.
Aristotle
Small Cap Equity Fund
FINANCIAL
HIGHLIGHTS
Class
I
Per
share operating performance.
For
a capital share outstanding throughout each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Six Months Ended June 30, 2023 |
|
For
the Year Ended December 31, |
|
(Unaudited) |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
Net
asset value, beginning of period |
$ |
13.67 |
|
|
$ |
15.99 |
|
|
$ |
13.90 |
|
|
$ |
12.96 |
|
|
$ |
10.74 |
|
|
$ |
12.83 |
|
|
Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)1 |
0.03 |
|
|
— |
|
|
(0.01) |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
Net
realized and unrealized gain (loss) |
0.23 |
|
|
(1.63) |
|
|
2.61 |
|
|
1.19 |
|
|
2.41 |
|
|
(1.56) |
|
|
Total
from investment operations |
0.26 |
|
|
(1.63) |
|
|
2.60 |
|
|
1.20 |
|
|
2.42 |
|
|
(1.55) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
From
net investment income |
— |
|
|
— |
|
|
— |
|
2 |
— |
|
2 |
— |
|
2 |
(0.01) |
|
|
From
net realized gain |
— |
|
|
(0.69) |
|
|
(0.51) |
|
|
(0.26) |
|
|
(0.20) |
|
|
(0.53) |
|
|
Total
distributions |
— |
|
|
(0.69) |
|
|
(0.51) |
|
|
(0.26) |
|
|
(0.20) |
|
|
(0.54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption
fee proceeds1 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
|
Net
asset value, end of period |
$ |
13.93 |
|
|
$ |
13.67 |
|
|
$ |
15.99 |
|
|
$ |
13.90 |
|
|
$ |
12.96 |
|
|
$ |
10.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return3 |
1.90 |
% |
4 |
(10.26) |
% |
|
18.87 |
% |
|
9.31 |
% |
|
22.59 |
% |
|
(12.29) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (in thousands) |
$ |
199,903 |
|
|
$ |
190,626 |
|
|
$ |
215,876 |
|
|
$ |
161,570 |
|
|
$ |
117,255 |
|
|
$ |
40,902 |
|
|
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
1.00 |
% |
5 |
1.01 |
% |
|
1.00 |
% |
|
1.13 |
% |
|
1.16 |
% |
|
1.44 |
% |
|
After
fees waived and expenses absorbed/recovered |
0.90 |
% |
5 |
0.90 |
% |
|
0.90 |
% |
|
0.90 |
% |
|
0.90 |
% |
|
0.90 |
% |
|
Ratio
of net investment income (loss) to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
0.30 |
% |
5 |
(0.09) |
% |
|
(0.16) |
% |
|
(0.17) |
% |
|
(0.21) |
% |
|
(0.46) |
% |
|
After
fees waived and expenses absorbed/recovered |
0.40 |
% |
5 |
0.02 |
% |
|
(0.06) |
% |
|
0.06 |
% |
|
0.05 |
% |
|
0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
4 |
% |
4 |
19 |
% |
|
14 |
% |
|
24 |
% |
|
59 |
% |
|
94 |
% |
|
1Based
on average shares outstanding for the period.
2Amount
represents less than $0.01 per share.
3Total
returns would have been lower/higher had expenses not been waived or
absorbed/recovered by the Advisor. Returns shown do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
4Not
annualized.
5Annualized.
Aristotle
Core Equity Fund
FINANCIAL
HIGHLIGHTS
Class
I
Per
share operating performance.
For
a capital share outstanding throughout each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Six Months Ended June 30, 2023 |
|
For
the Year Ended December 31, |
|
(Unaudited) |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
Net
asset value, beginning of period |
$ |
16.89 |
|
|
$ |
21.87 |
|
|
$ |
17.86 |
|
|
$ |
14.33 |
|
|
$ |
10.66 |
|
|
$ |
11.42 |
|
|
Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)1 |
0.05 |
|
|
0.09 |
|
|
0.07 |
|
|
0.10 |
|
|
0.09 |
|
|
0.08 |
|
|
Net
realized and unrealized gain (loss) |
2.50 |
|
|
(4.93) |
|
|
4.28 |
|
|
3.58 |
|
|
3.67 |
|
|
(0.72) |
|
|
Total
from investment operations |
2.55 |
|
|
(4.84) |
|
|
4.35 |
|
|
3.68 |
|
|
3.76 |
|
|
(0.64) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
From
net investment income |
— |
|
|
(0.08) |
|
|
(0.06) |
|
|
(0.07) |
|
|
(0.07) |
|
|
(0.07) |
|
|
From
net realized gain |
— |
|
|
(0.06) |
|
|
(0.28) |
|
|
(0.08) |
|
|
(0.02) |
|
|
(0.05) |
|
|
Total
distributions |
— |
|
|
(0.14) |
|
|
(0.34) |
|
|
(0.15) |
|
|
(0.09) |
|
|
(0.12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption
fee proceeds1 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
2 |
— |
|
|
Net
asset value, end of period |
$ |
19.44 |
|
|
$ |
16.89 |
|
|
$ |
21.87 |
|
|
$ |
17.86 |
|
|
$ |
14.33 |
|
|
$ |
10.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return3 |
15.10 |
% |
4 |
(22.15) |
% |
|
24.34 |
% |
|
25.69 |
% |
|
35.24 |
% |
|
(5.66) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (in thousands) |
$ |
180,435 |
|
|
$ |
167,455 |
|
|
$ |
178,513 |
|
|
$ |
90,679 |
|
|
$ |
27,269 |
|
|
$ |
10,755 |
|
|
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
0.78 |
% |
5 |
0.79 |
% |
|
0.79 |
% |
|
0.96 |
% |
|
1.47 |
% |
|
2.59 |
% |
|
After
fees waived and expenses absorbed/recovered |
0.65 |
% |
5 |
0.65 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
Ratio
of net investment income (loss) to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Before
fees waived and expenses absorbed/recovered |
0.46 |
% |
5 |
0.37 |
% |
|
0.19 |
% |
|
0.31 |
% |
|
(0.15) |
% |
|
(1.28) |
% |
|
After
fees waived and expenses absorbed/recovered |
0.59 |
% |
5 |
0.51 |
% |
|
0.33 |
% |
|
0.62 |
% |
|
0.67 |
% |
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
10 |
% |
4 |
18 |
% |
|
8 |
% |
|
20 |
% |
|
18 |
% |
|
32 |
% |
|
1Based
on average shares outstanding for the period.
2Amount
represents less than $0.01 per share.
3Total
returns would have been lower/higher had expenses not been waived or
absorbed/recovered by the Advisor. Returns shown do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
4Not
annualized.
5Annualized.
|
|
|
HISTORICAL
PERFORMANCE OF CERTAIN FUNDS’
SUB-ADVISERS |
Performance
Information for Similar Accounts
Certain
Funds show the performance of a predecessor fund that may have been managed by a
different portfolio management team. For some of these Funds, the following
tables set forth historical performance information for the composite consisting
of all discretionary accounts managed by the applicable sub-adviser (the
“Managing Entity”), that have substantially similar investment objectives,
policies, strategies, risks and investment restrictions as each listed Fund. The
Aristotle Small/Mid Cap Equity Composite and Aristotle Small Cap Equity
Composite are each composites reflecting the performance of accounts managed by
Aristotle Boston. The Aristotle Large Cap Growth Composite and Aristotle Core
Equity Composite are each composites reflecting the performance of accounts
managed by Aristotle Atlantic. The Aristotle International Equity Composite is a
composite reflecting the performance of accounts managed by Aristotle
Capital.
The
results presented below may not necessarily equate with the return experienced
by any particular investor as a result of the timing of investments and
redemptions. In addition, the effect of taxes on any investor will depend on
such person's tax status, and the results have not been reduced to reflect any
income tax that may have been payable.
Composite
Data
Composite
(defined by the Global Investment Performance Standards (“GIPS®”)
as an “aggregation of one or more portfolios managed according to a
substantially similar investment mandate, objective or strategy”) data
(“Composite”) is provided to illustrate, with respect to each Fund, the past
performance of the applicable Managing Entity in managing all substantially
similar accounts as measured against specified market indices. Composite data
does not represent the performance of any of the Funds. The accounts in each
Composite are separate and distinct from the Fund; the Composite performance is
not intended as a substitute for the Fund’s performance and should not be
considered a prediction of the future performance of the Fund or the applicable
Managing Entity. The performance of the accounts in each Composite may differ,
sometimes significantly, from the performance of the Fund for a variety of
reasons, including divergences in underlying investments resulting from various
regulatory restrictions specific to mutual funds as well as other differences
relating to the account type and/or product design.
Each
of Aristotle Atlantic, Aristotle Boston and Aristotle Capital claims compliance
with GIPS®.
For GIPS®
purposes, each Managing Entity is defined and held out to the public as the
investment management firm providing advisory services. Additional information
regarding the Composites and each Managing Entity's policies for valuing
portfolios, calculating performance, and preparing compliant presentations is
available upon request.
Each
Composite's performance data shown below was calculated in accordance with
recognized industry standards, consistently applied to all time periods. All
returns presented were calculated on a total return basis and include all
dividends and interest, accrued income and realized and unrealized gains and
losses. All returns reflect the deduction of brokerage commissions and execution
costs paid by the discretionary institutional accounts, without provision for
federal or state income taxes. “Net of Fees” composite figures are calculated by
reducing the gross return by the actual annual management fees and expenses for
the accounts that comprise the Composite. Each Composite includes all actual
discretionary institutional accounts managed by the applicable Managing Entity
for at least one full month that have investment objectives, policies,
strategies, and risks substantially similar to those of the corresponding Fund.
The fees and expenses of accounts included in the composite are lower than the
anticipated operating expenses of the Fund and accordingly, the performance
results of the Composite would have been lower had it been subject to the Fund’s
anticipated fees and expenses. The Composites may include both tax-exempt and
taxable accounts and all reinvestment of earnings. Each Composite's performance
information is calculated on the basis of the returns of underlying accounts
expressed in U.S. dollars.
Securities
transactions are accounted for on trade date and accrual accounting is utilized.
Cash and equivalents are included in performance returns. Monthly returns of a
Composite combine the individual accounts' returns (calculated on a
time-weighted rate of return basis that is revalued daily) by asset-weighting
each account's asset value as of the beginning of the month. Annual returns are
calculated by geometrically linking (i.e., calculating the product of) the
monthly returns. Investors should be aware that the performance information
shown below was calculated differently than the methodology mandated by the SEC
for registered investment companies.
The
discretionary institutional accounts that are included in the Composites in
general are subject to lower expenses than the Fund and are not subject to the
same diversification requirements, specific tax restrictions and investment
limitations imposed on the Fund by the 1940 Act or Subchapter M of the Code.
Consequently, the performance results for each Fund would have been less
favorable than the corresponding Composite.
Aristotle
Small/Mid Cap Equity Composite (managed by Aristotle Boston)
The
Aristotle Small/Mid Cap Equity Composite is managed by Aristotle Boston using
substantially similar investment objectives, policies, strategies, risks, and
investment restrictions to that of the Aristotle Small/Mid Cap Equity
Fund.
Annualized
Returns for periods ended December 31, 2022 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Small/Mid Cap Equity Composite
(Net
of Fees) |
|
Russell
2500 Index |
|
Since
Inception (January 1, 2008) to December 31, 2022 |
|
|
8.17 |
% |
|
|
8.09 |
% |
|
10
Years |
|
|
9.54 |
% |
|
|
10.02 |
% |
|
5
Years |
|
|
4.52 |
% |
|
|
5.88 |
% |
|
3
Years |
|
|
4.21 |
% |
|
|
4.99 |
% |
|
1
Year |
|
|
(12.52) |
|
% |
|
|
(18.37) |
|
% |
|
Calendar
Year Returns for the periods ended December 31 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Small/Mid Cap Equity Composite
(Net
of Fees) |
|
Russell
2500 Index |
|
2022 |
|
|
(12.52) |
|
% |
|
|
(18.37) |
|
% |
|
2021 |
|
|
17.93 |
% |
|
|
18.18 |
% |
|
2020 |
|
|
9.71 |
% |
|
|
19.99 |
% |
|
2019 |
|
|
23.25 |
% |
|
|
27.77 |
% |
|
2018 |
|
|
(10.55) |
|
% |
|
|
(10.00) |
|
% |
|
2017 |
|
|
13.24 |
% |
|
|
16.81 |
% |
|
2016 |
|
|
22.05 |
% |
|
|
17.59 |
% |
|
2015 |
|
|
3.17 |
% |
|
|
(2.90) |
|
% |
|
2014 |
|
|
1.78 |
% |
|
|
7.07 |
% |
|
2013 |
|
|
37.41 |
% |
|
|
36.80 |
% |
|
Aristotle
Small Cap Equity Composite (managed by Aristotle Boston)
The
Aristotle Small Cap Equity Composite is managed by Aristotle Boston using
substantially similar investment objectives, policies, strategies, risks, and
investment restrictions to that of the Aristotle Small Cap Equity
Fund.
Annualized
Returns for periods ended December 31, 2022 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Small Cap Equity Composite
(Net
of Fees) |
|
Russell
2000 Index |
|
Since
Inception (November 1, 2006) to December 31, 2022 |
|
|
8.56 |
% |
|
|
6.71 |
% |
|
10
Years |
|
|
10.17 |
% |
|
|
9.01 |
% |
|
5
Years |
|
|
5.08 |
% |
|
|
4.12 |
% |
|
3
Years |
|
|
5.46 |
% |
|
|
3.10 |
% |
|
1
Year |
|
|
(10.13) |
|
% |
|
|
(20.44) |
|
% |
|
Calendar
Year Returns for the periods ended December 31 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Small Cap Equity Composite
(Net
of Fees) |
|
Russell
2000 Index |
|
2022 |
|
|
(10.13) |
|
% |
|
|
(20.44) |
|
% |
|
2021 |
|
|
19.24 |
% |
|
|
14.82 |
% |
|
2020 |
|
|
9.47 |
% |
|
|
19.96 |
% |
|
2019 |
|
|
24.20 |
% |
|
|
25.53 |
% |
|
2018 |
|
|
(12.04) |
|
% |
|
|
(11.01) |
|
% |
|
2017 |
|
|
18.43 |
% |
|
|
14.65 |
% |
|
2016 |
|
|
18.92 |
% |
|
|
21.31 |
% |
|
2015 |
|
|
2.72 |
% |
|
|
(4.41) |
|
% |
|
2014 |
|
|
2.50 |
% |
|
|
4.89 |
% |
|
2013 |
|
|
38.73 |
% |
|
|
38.82 |
% |
|
Aristotle
Large Cap Growth Composite (managed by Aristotle Atlantic)
The
Aristotle Large Cap Growth Composite is managed by Aristotle Atlantic using
substantially similar investment objectives, policies, strategies, risks, and
investment restrictions to that of the Aristotle Growth Equity
Fund.
Annualized
Returns for periods ended December 31, 2022 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Large Cap Growth Composite
(Net
of Fees) |
|
Russell
1000
Growth
Index |
|
Since
Inception (November 1, 2016) to December 31, 2022 |
|
|
13.07 |
% |
|
|
14.17 |
% |
|
10
Years |
|
|
N/A |
|
|
|
N/A |
|
|
5
Years |
|
|
9.83 |
% |
|
|
10.95 |
% |
|
3
Years |
|
|
5.81 |
% |
|
|
7.78 |
% |
|
1
Year |
|
|
(31.61) |
|
% |
|
|
(29.14) |
|
% |
|
Calendar
Year Returns for the periods ended December 31 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Large Cap Growth Composite
(Net
of Fees) |
|
Russell
1000
Growth
Index |
|
2022 |
|
|
(31.61) |
|
% |
|
|
(29.14) |
|
% |
|
2021 |
|
|
21.66 |
% |
|
|
27.60 |
% |
|
2020 |
|
|
42.40 |
% |
|
|
38.49 |
% |
|
2019 |
|
|
36.73 |
% |
|
|
36.39 |
% |
|
2018 |
|
|
(1.34) |
|
% |
|
|
(1.51) |
|
% |
|
2017 |
|
|
28.99 |
% |
|
|
30.21 |
% |
|
2016
(Nov – Dec) |
|
|
3.49 |
% |
|
|
3.44 |
% |
|
2015 |
|
|
N/A |
|
|
|
N/A |
|
|
2014 |
|
|
N/A |
|
|
|
N/A |
|
|
2013 |
|
|
N/A |
|
|
|
N/A |
|
|
Aristotle
International Equity Composite (managed by Aristotle Capital)
The
Aristotle International Equity Composite is managed by Aristotle Capital using
substantially similar investment objectives, policies, strategies, risks, and
investment restrictions to that of the Aristotle International Equity
Fund.
Annualized
Returns for periods ended December 31, 2022 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
International Equity Composite
(Net
of Fees) |
|
MSCI
EAFE
Index
(Net) |
|
MSCI
ACWI ex USA Index (Net) |
Since
Inception (January 1, 2008) to December 31, 2022 |
|
|
4.32 |
% |
|
|
1.81 |
% |
|
1.52 |
|
% |
|
10
Years |
|
|
4.90 |
% |
|
|
4.67 |
% |
|
3.80 |
|
% |
|
5
Years |
|
|
2.54 |
% |
|
|
1.54 |
% |
|
0.88 |
|
% |
|
3
Years |
|
|
0.47 |
% |
|
|
0.87 |
% |
|
0.07 |
|
% |
|
1
Year |
|
|
(20.86) |
|
% |
|
|
(14.45) |
|
% |
|
(16.00) |
|
% |
|
Calendar
Year Returns for the periods ended December 31 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
International Equity Composite
(Net
of Fees) |
|
MSCI
EAFE
Index
(Net) |
|
MSCI
ACWI ex USA Index (Net) |
2022 |
|
|
(20.86) |
|
% |
|
|
(14.45) |
|
% |
|
(16.00) |
% |
2021 |
|
|
16.46 |
% |
|
|
11.26 |
% |
|
7.82 |
% |
2020 |
|
|
10.03 |
% |
|
|
7.82 |
% |
|
10.65 |
% |
2019 |
|
|
24.50 |
% |
|
|
22.01 |
% |
|
21.51 |
% |
2018 |
|
|
(10.19) |
|
% |
|
|
(13.79) |
|
% |
|
(14.20) |
% |
2017 |
|
|
23.20 |
% |
|
|
25.03 |
% |
|
27.19 |
% |
2016 |
|
|
0.61 |
% |
|
|
1.00 |
% |
|
4.50 |
% |
2015 |
|
|
0.49 |
% |
|
|
(0.81) |
|
% |
|
(5.66) |
% |
2014 |
|
|
(5.38) |
|
% |
|
|
(4.90) |
|
% |
|
(3.87) |
% |
2013 |
|
|
20.79 |
% |
|
|
22.78 |
% |
|
15.29 |
% |
Aristotle
Core Equity Composite (managed by Aristotle Atlantic)
The
Aristotle Core Equity Composite is managed by Aristotle Atlantic using
substantially similar investment objectives, policies, strategies, risks, and
investment restrictions to that of the Aristotle Core Equity Fund.
Annualized
Returns for periods ended December 31, 2022 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Core Equity Composite
(Net
of Fees) |
|
S&P
500
Index |
|
Since
Inception (August 1, 2013) to December 31, 2022 |
|
|
11.57 |
% |
|
|
11.24 |
% |
|
10
Years |
|
|
N/A |
|
|
|
N/A |
|
|
5
Years |
|
|
9.47 |
% |
|
|
9.42 |
% |
|
3
Years |
|
|
7.08 |
% |
|
|
7.65 |
% |
|
1
Year |
|
|
(21.94) |
|
% |
|
|
(18.11) |
|
% |
|
Calendar
Year Returns for the periods ended December 31 (net of fees)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Aristotle
Core Equity Composite
(Net
of Fees) |
|
S&P
500
Index |
|
2022 |
|
|
(21.94) |
|
% |
|
|
(18.11) |
|
% |
|
2021 |
|
|
24.55 |
% |
|
|
28.71 |
% |
|
2020 |
|
|
26.30 |
% |
|
|
18.40 |
% |
|
2019 |
|
|
35.30 |
% |
|
|
31.49 |
% |
|
2018 |
|
|
(5.35) |
|
% |
|
|
(4.38) |
|
% |
|
2017 |
|
|
21.85 |
% |
|
|
21.83 |
% |
|
2016 |
|
|
9.97 |
% |
|
|
11.96 |
% |
|
2015 |
|
|
5.13 |
% |
|
|
1.38 |
% |
|
2014 |
|
|
11.61 |
% |
|
|
13.69 |
% |
|
2013
(Aug – Dec) |
|
|
13.51 |
% |
|
|
10.68 |
% |
|
Appendix
to the Prospectus dated October 19, 2023, for
shares of
Aristotle
Portfolio Optimization Conservative Fund
Aristotle
Portfolio Optimization Moderate Conservative Fund
Aristotle
Portfolio Optimization Moderate Fund
Aristotle
Portfolio Optimization Growth Fund
Aristotle
Portfolio Optimization Aggressive Growth Fund
Aristotle
Ultra Short Income Fund
Aristotle
Short Duration Income Fund
Aristotle
Core Income Fund
Aristotle
ESG Core Bond Fund
Aristotle
Strategic Income Fund
Aristotle
Floating Rate Income Fund
Aristotle
High Yield Bond Fund
Aristotle
Small/Mid Cap Equity Fund
Aristotle
Small Cap Equity Fund
Aristotle
Growth Equity Fund
Aristotle
Value Equity Fund
Aristotle
International Equity Fund
Aristotle/Saul
Global Equity Fund
Aristotle
Core Equity Fund
VARIATIONS
IN SALES CHARGE WAIVERS AND DISCOUNTS
AVAILABLE
THROUGH SPECIFIC FINANCIAL INTERMEDIARIES
|
|
|
The
information in this Appendix is a part of, and incorporated into, the
Prospectus for the Funds, and
must be delivered with the
Prospectus. |
The
Funds offer several ways to waive or reduce the front-end sales charge on Class
A shares, which are set forth in the Prospectus. The Prospectus also describes
the circumstances under which the Funds will waive or reduce the CDSC imposed on
redemptions of Class C shares and certain Class A shares purchased at NAV. The
availability of the sales charge waivers and reductions discussed in the
Prospectus will depend upon whether you purchase your shares directly from a
Fund or through a financial intermediary. The availability of certain initial or
deferred sales charge waivers and discounts may depend on the particular
financial intermediary or type of account through which you purchase or hold
Fund shares.
Financial
intermediaries/firms may have different policies and procedures than the Trust
regarding the availability of front-end sales load waivers, CDSC waivers,
account investment minimums (initial and subsequent) and minimum account
balances, all of which are discussed below. The following information has been
provided directly by the financial intermediaries, which each firm has
represented is current as of the date of this Prospectus. These waivers or
discounts or minimums, which may vary from those disclosed elsewhere in the
Prospectus, are subject to change. The Funds will update this Appendix
periodically based on information provided by the applicable financial firm.
Neither the Funds, PLFA nor the Distributor supervises the implementation of
these waivers or discounts or verifies the firms’ administration of these
waivers or discounts.
In
all instances, it is the purchaser’s responsibility to notify the Fund or the
purchaser’s financial intermediary at the time of purchase of any relationship
or other facts qualifying the purchaser for sales charge waivers or discounts.
For waivers and discounts not available through a particular intermediary,
shareholders will have to purchase Fund shares directly from the Fund or through
another intermediary to receive these waivers or discounts. Please contact your
financial intermediary for more information about the sales charge waivers or
reductions available to you.
Intermediary-Defined
Sales Charge Waiver Policies at Robert W. Baird & Co. (“Baird”)
Shareholders
purchasing Fund shares through a Baird platform or account will only be eligible
for the following sales charge waivers (front-end sales charge waivers and CDSC
waivers) and discounts, which may differ from those disclosed elsewhere in the
Aristotle
Funds Prospectus or the Statement of Additional Information.
|
|
|
FRONT-END
SALES CHARGE WAIVERS ON CLASS A SHARES AVAILABLE AT BAIRD |
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing share of the same fund |
•Share
purchase by employees and registers representatives of Baird or its
affiliate and their family members as designated by
Baird |
•Shares
purchased using the proceeds of redemptions within Aristotle Funds Series
Trust, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same accounts,
and (3) redeemed shares were subject to a front-end or deferred sales
charge (known as Right of Reinstatement) |
•A
shareholder in a Fund’s Class C Shares will have their share converted at
NAV to Class A shares (or the appropriate share class) of the same Fund if
the shares are no longer subject to a CDSC and the conversion is in line
with the policies and procedures of Baird |
•Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage
account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase pension plans and defined
benefit plans. For purposes of this provision, employer-sponsored
retirement plans do not include SEP IRAs, Simple IRAs or
SAR-SEPs |
CDSC
WAIVERS ON CLASS A AND CLASS C SHARES AVAILABLE AT BAIRD |
•Due
to death or disability of the shareholder |
•Shares
sold as part of a systematic withdrawal plan as described in the
Prospectus |
•Return
of excess contributions from an IRA Account |
•Shares
sold as part of a required minimum distribution for IRA and retirement
accounts pursuant to the IRC |
•Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird |
•Shares
acquired through a Right of Reinstatement |
FRONT-END
SALES CHARGE DISCOUNTS AVAILABLE AT BAIRD: BREAKPOINTS, RIGHTS OF
ACCUMULATION, LETTER OF INTENT |
•Breakpoints
as described in this Prospectus |
•Rights
of Accumulations (“ROA”), which entitles shareholders to breakpoint
discounts as described in the Fund’s Prospectus, will be automatically
calculated based on the aggregated holding of Aristotle Funds Series Trust
assets held by accounts within the purchaser’s household at Baird.
Eligible Aristotle Funds Series Trust assets not held at Baird may be
included in the ROA calculation only if the shareholder notifies his or
her financial advisor about such assets |
•Letters
of Intent (“LOI”), which allow for breakpoint discounts based on
anticipated purchases within Aristotle Funds Series Trust, through Baird,
over a 13-month period of time |
Policies
Regarding Transactions Through Edward Jones
Clients
of Edward Jones (also referred to as “shareholders”) purchasing Aristotle Funds
shares on the Edward Jones commission and fee-based platforms are eligible only
for the following sales charge discounts (also referred to as “breakpoints”) and
waivers, which can differ from discounts and waivers described elsewhere in the
Aristotle Funds Prospectus or SAI or through another broker-dealer. In all
instances, it is the shareholder’s responsibility to inform Edward Jones at the
time of purchase of any relationship, holdings of Aristotle Funds, or other
facts
qualifying the purchaser for discounts or waivers. Edward Jones can ask for
documentation of such circumstance. Shareholders should contact Edward Jones if
they have questions regarding their eligibility for these discounts and
waivers.
|
|
|
BREAKPOINTS |
•Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as
described in the Prospectus. |
RIGHTS
OF ACCUMULATION (“ROA”) |
•The
applicable sales charge on a purchase of Class A shares is determined by
taking into account all share classes (except certain money market funds
and any assets held in group retirement plans) of Aristotle Funds held by
the shareholder or in an account grouped by Edward Jones with other
accounts for the purpose of providing certain pricing considerations
(“pricing groups”). If grouping assets as a shareholder, this includes all
share classes held on the Edward Jones platform and/or held on another
platform. The inclusion of eligible fund family assets in the ROA
calculation is dependent on the shareholder notifying Edward Jones of such
assets at the time of calculation. Money market funds are included only if
such shares were sold with a sales charge at the time of purchase or
acquired in exchange for shares purchased with a sales
charge. |
•The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping as opposed to including all share classes at a
shareholder or pricing group level. |
•ROA
is determined by calculating the higher of cost minus redemptions or
market value (current shares x NAV). |
LETTER
OF INTENT (“LOI”) |
•Through
a LOI, shareholders can receive the sales charge and breakpoint discounts
for purchases shareholders intend to make over a 13-month period from the
date Edward Jones receives the LOI. The LOI is determined by calculating
the higher of cost or market value of qualifying holdings at LOI
initiation in combination with the value that the shareholder intends to
buy over a 13-month period to calculate the front-end sales charge and any
breakpoint discounts. Each purchase the shareholder makes during that
13-month period will receive the sales charge and breakpoint discount that
applies to the total amount. The inclusion of eligible fund family assets
in the LOI calculation is dependent on the shareholder notifying Edward
Jones of such assets at the time of calculation. Purchases made before the
LOI is received by Edward Jones are not adjusted under the LOI and will
not reduce the sales charge previously paid. Sales charges will be
adjusted if the LOI is not met. |
•If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected
to establish or change ROA for the IRA accounts associated with the plan
to a plan-level grouping, LOIs will also be at the plan-level and may only
be established by the employer. |
SALES
CHARGE WAIVERS |
Sales
charges are waived for the following shareholders and in the following
situations: |
•Associates
of Edward Jones and its affiliates and their family members who are in the
same pricing group (as determined by Edward Jones under its policies and
procedures) as the associate. This waiver will continue for the remainder
of the associate’s life if the associate retires from Edward Jones in
good-standing and remains in good standing pursuant to Edward Jones’
policies and procedures. |
•Shares
purchased in an Edward Jones fee-based program. |
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment. |
•Shares
purchased from the proceeds of redeemed shares of the same fund family so
long as the following conditions are met: 1) the proceeds are from the
sale of shares within 60 days of the purchase, and 2) the sale and
purchase are made in the same share class and the same account or the
purchase is made in an individual retirement account with proceeds from
liquidations in a non-retirement account. |
•Shares
exchanged into Class A shares from another share class so long as the
exchange is into the same fund and was initiated at the discretion of
Edward Jones. Edward Jones is responsible for any remaining CDSC due to
the fund company, if applicable. Any future purchases are subject to the
applicable sales charge as disclosed in the Prospectus. |
•Exchanges
from Class C shares to Class A shares of the same fund, generally, in the
84th month following the anniversary of the purchase date or earlier at
the discretion of Edward Jones. |
CDSC
WAIVERS |
If
the shareholder purchases shares that are subject to a CDSC and those
shares are redeemed before the CDSC is expired, the shareholder is
responsible to pay the CDSC except in the following
conditions: |
•The
death or disability of the shareholder |
•Systematic
withdrawals with up to 10% per year of the account
value |
•Return
of excess contributions from an Individual Retirement Account
(IRA) |
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|
•Shares
sold as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder
reaches qualified age based on applicable IRS
regulations |
•Shares
sold to pay Edward Jones fees or costs in such cases where the transaction
is initiated by Edward Jones |
•Shares
exchanged in an Edward Jones fee-based program |
•Shares
acquired through NAV reinstatement |
•Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as
described below. |
OTHER
IMPORTANT INFORMATION REGARDING TRANSACTIONS THROUGH EDWARD
JONES |
1.1
Minimum Purchase Amounts |
•Initial
purchase minimum: $250 |
•Subsequent
purchase minimum: none |
1.2 Minimum
Balances |
•Edward
Jones has the right to redeem at its discretion fund holdings with a
balance of $250 or less. The following are examples of accounts that are
not included in this policy: |
oA
fee-based account held on an Edward Jones platform |
oA
529 account held on an Edward Jones platform |
oAn
account with an active systematic investment plan or
LOI |
1.3 Exchanging
Share Classes |
•At
any time it deems necessary, Edward Jones has the authority to exchange at
NAV a shareholder's holdings in a fund to Class A shares of the same
fund. |
Sales
Charge Waivers and Reductions Available through Merrill Lynch
(“Merrill”)
Shareholders
purchasing Fund shares through a Merrill platform or account will be eligible
only for the following waivers (front-end sales charge waivers and CDSC waivers)
and discounts, which may differ from and may be more limited than those
disclosed elsewhere in the Aristotle Funds Prospectus or SAI. Additional details
regarding these waivers and discounts are available from Merrill.
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|
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FRONT-END
SALES CHARGE WAIVERS ON CLASS A SHARES AVAILABLE AT MERRILL |
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including
health savings accounts) and trusts used to fund those plans, provided
that the shares are not held in a commission-based brokerage account and
shares are held for the benefit of the plan |
•Shares
purchased by a 529 Plan (does not include 529 Plan units or 529-specific
share classes or equivalents) |
•Shares
purchased through a Merrill affiliated investment advisory
program |
•Shares
exchanged due to the holdings moving from a Merrill affiliated investment
advisory program to a Merrill brokerage (non-advisory) account pursuant to
Merrill’s policies relating to sales load discounts and
waivers |
•Shares
purchased by third-party investment advisors on behalf of their advisory
clients through Merrill’s platform |
•Shares
purchased through the Merrill Edge Self-Directed
platform |
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the Aristotle Funds Series Trust) |
•Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill’s policies
relating to sales load discounts and waivers |
•Employees
and registered representatives of Merrill or its affiliates and their
family members |
•Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or
any of its affiliates, as described in this Prospectus |
•Eligible
shares purchased from the proceeds of redemptions within the Aristotle
Funds Series Trust, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the
same account, and (3) redeemed shares were subject to a front-end or
deferred sales load (known as Rights of Reinstatement). Automated
transactions (i.e.
systematic purchases and withdrawals) and purchases made after shares are
automatically sold to pay Merrill’s account maintenance fees are not
eligible for reinstatement |
CDSC
WAIVERS ON CLASS A AND CLASS C SHARES AVAILABLE AT MERRILL |
•Death
or disability of the shareholder |
•Shares
sold as part of a systematic withdrawal plan as described in the
Prospectus |
•Return
of excess contributions from an IRA Account |
•Shares
sold as part of a required minimum distribution for IRA and retirement
accounts pursuant to the IRC |
•Shares
sold to pay Merrill fees but only if the transaction is initiated by
Merrill |
•Shares
acquired through a Right of Reinstatement |
•Shares
held in retirement brokerage accounts, that are exchanged for a lower cost
share class due to transfer to certain fee-based accounts or
platforms |
•Shares
received through an exchange due to the holdings moving from a Merrill
affiliated investment advisory program to a Merrill brokerage
(non-advisory) account pursuant to Merrill’s policies relating to sales
load discounts and waivers |
FRONT-END
LOAD DISCOUNTS AVAILABLE AT MERRILL: BREAKPOINTS, RIGHTS OF ACCUMULATION
& LETTERS OF INTENT |
•Breakpoints
as described in this Prospectus |
•Rights
of Accumulation (“ROA”), which entitle shareholders to breakpoint
discounts as described in the Fund’s Prospectus, will be automatically
calculated based on the aggregated holding of Aristotle Funds Series Trust
assets held by accounts (including 529 program holdings, where applicable)
within the purchaser’s household at Merrill. Eligible Aristotle Funds
Series Trust assets not held at Merrill may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor
about such assets |
•Letters
of Intent (“LOI”), which allow for breakpoint discounts based on
anticipated purchases within Aristotle Funds Series Trust, through
Merrill, over a 13-month period of time.
|
Front-End
Sales Charge Waivers on Class A Shares Available at Morgan Stanley Wealth
Management (“Morgan Stanley”)
Shareholders
purchasing Fund shares through a Morgan Stanley Wealth Management transactional
brokerage account will be eligible only for the following front-end sales charge
waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in the Aristotle Funds Prospectus or SAI.
Additional details regarding these waivers are available from Morgan Stanley
Wealth Management.
|
|
|
FRONT-END
SALES CHARGE WAIVERS ON CLASS A SHARES AVAILABLE AT MORGAN STANLEY WEALTH
MANAGEMENT |
•Employer-sponsored
retirement plans (e.g.,
401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing
and money purchase pension plans and defined benefit plans). For purposes
of this provision, employer-sponsored retirement plans do not include SEP
IRAs, Simple IRAs, SAR-SEPs or Keogh plans |
•Morgan
Stanley employee and employee-related accounts according to Morgan
Stanley’s account linking rules |
•Shares
purchased through reinvestment of dividends and capital gains
distributions when purchasing shares of the same fund |
•Shares
purchased through a Morgan Stanley self-directed brokerage
account |
•Class
C (i.e.,
level-load) shares that are no longer subject to a contingent deferred
sales charge and are converted to Class A shares of the same fund pursuant
to Morgan Stanley Wealth Management’s share class conversion
program |
•Shares
purchased from the proceeds of redemptions within the same fund family,
provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account,
and (iii) redeemed shares were subject to a front-end or deferred sales
charge. |
Sales
Charge Waivers and Reductions Available through Oppenheimer & Co. Inc.
(“OPCO”)
Shareholders
purchasing Fund shares through an OPCO platform or account are eligible only for
the following load waivers (front-end sales charge waivers and contingent
deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in the Aristotle Funds Prospectus or
SAI.
|
|
|
FRONT-END
SALES LOAD WAIVERS ON CLASS A SHARES AVAILABLE AT OPCO |
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including
health savings accounts) and trusts used to fund those plans, provided
that the shares are not held in a commission-based brokerage account and
shares are held for the benefit of the plan |
•Shares
purchased by or through a 529 Plan |
•Shares
purchased through an OPCO affiliated investment advisory
program |
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the fund family) |
•Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front-end or deferred sales load
(known as Rights of Restatement). |
•A
shareholder in the Fund's Class C shares will have their shares converted
at NAV to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line
with the policies and procedures of OPCO |
•Employees
and registered representatives of OPCO or its affiliates and their family
members |
•Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or
any of its affiliates, as described in this Prospectus |
CDSC
WAIVERS ON CLASS A AND CLASS C SHARES AVAILABLE AT OPCO |
•Death
or disability of the shareholder |
•Shares
sold as part of a systematic withdrawal plan as described in the Fund's
Prospectus |
•Return
of excess contributions from an IRA Account |
•Shares
sold as part of a required minimum distribution for IRA and retirement
accounts pursuant to the IRC |
•Shares
sold to pay OPCO fees but only if the transaction is initiated by
OPCO |
•Shares
acquired through a right of reinstatement |
FRONT-END
LOAD DISCOUNTS AVAILABLE AT OPCO: BREAKPOINTS, RIGHTS OF ACCUMULATION
and/or LETTERS OF INTENT |
•Breakpoints
as described in this Prospectus |
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holding of fund
family assets held by accounts within the purchaser's household at OPCO.
Eligible fund family assets not held at OPCO may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor
about such assets |
Raymond
James & Associates, Inc., Raymond James Financial Services, Inc. and each
entity’s affiliates (“Raymond James”)
Shareholders
purchasing fund shares through a Raymond James platform or account, or through
an introducing broker-dealer or independent registered investment adviser for
which Raymond James provides trade execution, clearance, and/or custody
services, will be eligible only for the following load waivers (front-end sales
charge waivers and contingent deferred, or back-end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in the Aristotle
Funds Prospectus or SAI.
|
|
|
FRONT-END
SALES LOAD WAIVERS ON CLASS A SHARES AVAILABLE AT RAYMOND
JAMES |
•Shares
purchased in an investment advisory program. |
•Shares
purchased within the same fund family through a systematic reinvestment of
capital gains and dividend distributions. |
•Employees
and registered representatives of Raymond James or its affiliates and
their family members as designated by Raymond James. |
•Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front-end or deferred sales load
(known as Rights of Reinstatement). |
•A
shareholder in the Fund’s Class C shares will have their shares converted
at NAV to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line
with the policies and procedures of Raymond James. |
CDSC
WAIVERS ON CLASS A AND CLASS C SHARES AVAILABLE AT RAYMOND
JAMES |
•Death
or disability of the shareholder. |
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
Prospectus. |
•Return
of excess contributions from an IRA Account. |
•Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based on
applicable IRS regulations as described in the Fund’s
Prospectus. |
•Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James. |
•Shares
acquired through a right of reinstatement. |
FRONT-END
LOAD DISCOUNTS AVAILABLE AT RAYMOND JAMES: BREAKPOINTS, RIGHTS OF
ACCUMULATION, AND/OR LETTERS OF INTENT |
•Breakpoints
as described in this Prospectus |
•Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Raymond James.
Eligible fund family assets not held at Raymond James may be included in
the calculation of rights of accumulation only if the shareholder notifies
his or her financial advisor about such assets. |
•Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13-month time period. Eligible fund
family assets not held at Raymond James may be included in the calculation
of letters of intent only if the shareholder notifies his or her financial
advisor about such assets. |
J.P.
Morgan Securities LLC (“J.P. Morgan")
Effective
September 25, 2023, if you purchase or hold fund shares through an applicable
J.P. Morgan brokerage account, you will be eligible for the following sales
charge waivers (front-end sales charge waivers and CDSC, or back-end sales
charge, waivers), share class conversion policy and discounts, which may differ
from those disclosed elsewhere in this Prospectus or SAI.
|
|
|
FRONT-END
SALES CHARGE WAIVERS ON CLASS A SHARES AVAILABLE AT J.P.
MORGAN |
•Shares
exchanged from Class C (i.e. level-load) shares that are no longer subject
to a CDSC and are exchanged into Class A shares of the same fund pursuant
to J.P. Morgan’s share class exchange policy. |
•Qualified
employer-sponsored defined contribution and defined benefit retirement
plans, nonqualified deferred compensation plans, other employee benefit
plans and trusts used to fund those plans. For purposes of this
provision, such plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or
501(c)(3) accounts. |
•Shares
of funds purchased through J.P. Morgan Self-Directed Investing accounts.
|
•Shares
purchased through rights of reinstatement. |
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the fund family). |
•Shares
purchased by employees and registered representatives of J.P. Morgan or
its affiliates and their spouse or financial dependent as defined by J.P.
Morgan. |
CLASS
A TO CLASS C CONVERSION |
•A
shareholder in the fund’s Class C shares will have their shares converted
to Class A shares (or the appropriate share class) of the same fund if the
shares are no longer subject to a CDSC and the conversion is consistent
with J.P. Morgan’s policies and procedures. |
CDSC
WAIVERS ON CLASS A AND C SHARES AVAILABLE AT J.P. MORGAN |
•Shares
sold upon the death or disability of the shareholder. |
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus. |
•Shares
purchased in connection with a return of excess contributions from an IRA
account. |
|
|
|
•Shares
sold as part of a required minimum distribution for IRA and retirement
accounts pursuant to the IRC. |
•Shares
acquired through a right of reinstatement. |
FRONT-END
LOAD DISCOUNTS AVAILABLE AT J.P. MORGAN: BREAKPOINTS, RIGHTS OF
ACCUMULATION AND LETTERS OF INTENT |
•Breakpoints
as described in the prospectus. |
•Rights
of Accumulation (“ROA”) which entitle shareholders to breakpoint discounts
as described in the fund’s prospectus will be automatically calculated
based on the aggregated holding of fund family assets held by accounts
within the purchaser’s household at J.P. Morgan. Eligible fund family
assets not held at J.P. Morgan (including 529 program holdings, where
applicable) may be included in the ROA calculation only if the shareholder
notifies their financial advisor about such assets. |
•Letters
of Intent (“LOI”) which allow for breakpoint discounts based on
anticipated purchases within a fund family, through J.P. Morgan, over a
13-month period of time (if applicable).
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Aristotle
Funds |
Mailing
address: |
Aristotle
Funds
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701 |
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|
Visit
us at our Website: aristotlefunds.com |
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|
WHERE
TO GO FOR MORE INFORMATION |
You
can find more information about the Funds in the following
documents:
Appendix
to the Prospectus
The
Appendix to this Prospectus, titled Variations
in Sales Charge Waivers and Discounts Available Through Specific Financial
Intermediaries,
is a separate document that is incorporated by reference into this Prospectus
and contains information on sales charge reductions and waivers available
through specific financial intermediaries that differ from the sales charge
waivers and reductions disclosed in this Prospectus and the related
SAI.
Annual
and Semi-Annual Reports
The
Trust’s annual and semi-annual reports for the Funds included in this
Prospectus, once available, will provide additional information about Fund
investments. The Trust’s annual report lists the holdings of each Fund,
describes Fund performance, includes audited financial statements and discusses
how investment strategies and Fund performance have responded to recent market
conditions and economic trends during the last fiscal year. The Trust’s
semi-annual report lists the holdings of each Fund and includes unaudited
financial statements. The Trust’s annual and semi-annual reports may be obtained
as noted below.
SAI
The
SAI contains detailed information about each Fund’s investments, strategies and
risks and a full description of the Trust’s policies and procedures regarding
disclosure of the Funds’ portfolio holdings. The SAI is considered to be part of
this Prospectus because it is incorporated herein by reference.
How
to Obtain Documents
The
prospectuses, the SAI, information statements and other regulatory documents of
the Trust, once filed, are available, free of charge, on the Trust’s website
(aristotlefunds.com).
You may also call the telephone number(s) or write to the address provided below
in “How to Contact the Trust” for a free copy of these documents.
Portfolio
Holdings Information
Each
Fund’s unaudited portfolio holdings information can be found at
aristotlefunds.com. Month-end portfolio holdings for Funds are generally posted
approximately three to five business days following month end. There may be an
additional delay for certain Funds as indicated on the website. The investment
adviser reserves the right to post holdings for any Fund more frequently than
monthly but may resume posting monthly at its discretion. Holdings information
will remain available on the website until the next period’s information is
posted or longer if required by law. Further description of each Fund’s policies
and procedures with respect to the disclosure of each Fund’s portfolio holdings
is available in the Fund’s SAI.
How
to Contact the Trust
If
you have any questions about any of the Funds or would like to obtain a copy of
the Trust’s prospectuses, SAI or annual or semi-annual report at no cost, you
can contact the Trust by:
Regular
mail:
Aristotle
Funds
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701
Express
mail:
Aristotle
Funds
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, 3rd Floor
Milwaukee,
WI 53202
Telephone:
844-ARISTTL (844-274-7885)
How
to Contact the U.S. Securities and Exchange Commission
You
may also access reports and other information about a Fund on the EDGAR Database
on the Commission’s Internet site at www.sec.gov and copies of this information
may be obtained, after paying a duplication fee, by electronic request at the
following E-mail address: [email protected].
FINRA
BrokerCheck
The
Financial Industry Regulatory Authority (“FINRA”) provides investor protection
education through its website and printed materials. The FINRA website address
is www.finra.org. An investor brochure that includes information describing
FINRA BrokerCheck may be obtained from FINRA. The FINRA BrokerCheck hotline
number is 1-800-289-9999. FINRA does not charge a fee for BrokerCheck
services.
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SEC
file number 811-23850 |