ck0001027596-20230630
|
|
| |
| DAVIDSON MULTI-CAP
EQUITY FUND |
|
|
|
|
|
| |
| Class
A |
DFMAX |
| Class
I |
DFMIX |
www.davidsonmutualfunds.com
PROSPECTUS
October 28,
2023
The
U.S. Securities and Exchange Commission (“SEC”) has not approved or disapproved
these securities or determined if this Prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
Table
of Contents
Investment
Objective
The
Davidson Multi-Cap Equity Fund (the “Fund”) seeks long-term capital
appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You may be required to pay commissions and/or other
forms of compensation to a broker for transactions in Class I shares, which are
not reflected in the tables or the examples below. You may qualify for sales
charge discounts if you and your family invest, or agree to invest in the
future, at least $25,000 in the Fund. Certain financial
intermediaries also may offer variations in Fund sales charges to their
customers as described in Appendix A to the statutory Prospectus. More
information about these and other discounts is available from your financial
intermediary and in the “Your Account with the Fund” section on page 9 of the
Fund’s statutory Prospectus, the “Class A Shares” section on page 10
of the Fund’s statutory Prospectus, the “Breakpoints/Volume Discounts and Sales
Charge Waivers” section on page 38 of the Fund’s Statement of Additional
Information (“SAI”), and Appendix A to the statutory
Prospectus.
|
|
|
|
|
|
|
|
| |
|
SHAREHOLDER
FEES
(fees
paid directly from your investment) |
Class
A |
Class
I |
Maximum
Sales Charge (Load) Imposed on Purchases
(as a percentage of offering
price) |
3.50% |
None |
|
|
|
|
|
|
|
|
| |
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
| Management
Fees |
0.65% |
0.65% |
| Distribution
and Service (Rule 12b-1) Fees |
0.25% |
None |
| Other
Expenses |
0.40% |
0.40% |
| Total
Annual Fund Operating Expenses |
1.30% |
1.05% |
|
Less:
Fee Waiver(1) |
-0.15% |
-0.15% |
| Total
Annual Fund Operating Expenses After Fee Waiver |
1.15% |
0.90% |
(1)Davidson
Investment Advisors, Inc. (the “Advisor”) has contractually agreed to waive all
or a portion of its management fees and pay expenses of the Fund to ensure that
Total Annual Fund Operating Expenses (excluding acquired fund fees and expenses
(“AFFE”), taxes, interest expense, dividends on securities sold short and
extraordinary expenses, Rule 12b-1 fees, shareholder servicing fees, and
any other class-specific expenses) do not exceed 0.90% of average daily net
assets of the Fund (the “Expense Cap”). The Expense Cap will remain in effect
through at least October 27,
2024, and may be terminated only by the Fund’s Board of Trustees
(the “Board”). The Advisor may request recoupment of previously waived fees and
paid expenses from the Fund for 36 months from the date they were waived or
paid, subject to the Expense Cap at the time such amounts were waived or at the
time of recoupment, whichever is lower.
Example.
This Example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds. The Example assumes that you invest $10,000 in
the Fund for the time periods indicated and then either redeem or do not redeem
all of your shares at the end of those periods. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same (taking into account the Expense Cap only in the first
year). Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
A |
$463 |
$733 |
$1,024 |
$1,850 |
| Class
I |
$92 |
$319 |
$565 |
$1,269 |
Portfolio
Turnover. The Fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate 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 the annual fund
operating expenses or in the Example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 16.44% of the average value of its
portfolio.
Principal Investment
Strategies of the Fund
Under
normal market conditions, the Fund invests at least 80% of its net assets
(including any borrowings for investment purposes) in equity securities across a
wide range of market capitalizations and investment styles with attractive
fundamental characteristics. The equity securities in which the Fund may invest
includes common stock, preferred stock, convertibles, warrants, American
Depositary Receipts (“ADRs”) and real estate investment trusts (“REITs”). The
Fund looks for companies with reasonable valuations, prudent debt levels, cash
flow generation, attractive growth characteristics and solid balance sheets. The
Fund invests its assets in both value and growth stocks, as well as
dividend-paying and non-dividend-paying stocks. The Fund seeks to achieve its
investment objective primarily through stock selection, with less emphasis on
sector weightings. As a result, the Fund expects to only occasionally make
modest sector changes, preferring to differentiate performance by relative
movement in individual stocks rather than in sectors or industries.
The
Fund may seek to enhance returns through investments in foreign securities
(which may include ADRs, dollar-denominated foreign securities, or direct
investment in foreign securities, including those in emerging markets), and
other investment companies (including exchange-traded funds (“ETFs”)). The Fund
may invest up to 25% of its net assets in foreign securities including in
emerging markets, and the Fund may invest up to 20% of its net assets in other
investment companies.
The
Advisor may sell a position if the fundamentals have deteriorated, catalysts
fail to develop, or a stock exceeds fair valuation. The Advisor may also sell a
position if a better alternative becomes available.
At the discretion of the Advisor, the Fund may invest its assets in
cash, cash equivalents, and high-quality, short-term debt securities and money
market instruments for temporary defensive purposes in response to adverse
market, economic, political or other conditions.
Principal Risks of Investing in
the Fund
Losing all or a portion of your
investment is a risk of investing in the Fund. The following
principal risks could affect the value of your investment:
•General
Market Risk.
Economies and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including: inflation (or expectations
for inflation); interest rates; global demand for particular products or
resources; natural disasters or events; pandemic diseases; terrorism; regulatory
events; and government controls. U.S. and international markets have experienced
significant periods of volatility in recent years and months due to a number of
economic, political and global macro factors, which has resulted in disruptions
to business operations and supply chains, stress on the global healthcare
system, growth concerns in the U.S. and overseas, staffing shortages and the
inability to meet consumer demand, and widespread concern and uncertainty.
Continuing uncertainties regarding interest rates, rising inflation, political
events, rising government debt in the U.S. and trade tensions also contribute to
market volatility. As a result of continuing political tensions and armed
conflicts, including the war between Ukraine and Russia, the U.S. and the
European Union imposed sanctions on certain Russian individuals and companies,
including certain financial institutions, and have limited certain exports and
imports to and from Russia. The war has contributed to recent market volatility
and may continue to do so.
•Equity
Securities Risk.
The price of equity securities may rise or fall because of economic or political
changes or changes in a company’s financial condition, sometimes rapidly or
unpredictably. These price movements may result from factors affecting
individual companies, sectors or industries selected for the Fund’s portfolio or
the securities market as a whole, such as changes in economic or political
conditions.
•Management
Risk.
Your investment in the Fund varies with the success and failure of the Advisor’s
investment strategies and the Advisor’s research, analysis and determination of
portfolio securities.
•Small
and Medium Companies Risk.
Investing in securities of small and medium capitalization companies may involve
greater volatility than investing in larger and more established companies
because small and medium capitalization companies can be subject to more abrupt
or erratic share price changes than larger, more established companies.
•Real
Estate Investment Trust (REIT) Risk.
Investments
in REITs will be subject to the risks associated with the direct ownership of
real estate. Risks commonly associated with the direct ownership of real estate
include fluctuations in the value of underlying properties, defaults by
borrowers or tenants, changes in interest rates and risks related to general or
local economic conditions. REITs have their own expenses, and the Fund will bear
a proportionate share of those expenses. In addition, the value of an individual
REIT’s securities can decline if the REIT fails to continue qualifying for
special tax treatment.
•Foreign
and Emerging Market Securities Risk.
Foreign securities may be more volatile and less liquid than domestic (U.S.)
securities, which could affect the Fund’s investments. Securities markets of
other countries are generally smaller than U.S. securities markets. These risks
are enhanced in emerging markets.
•ETF
and Mutual Fund Risk.
When the Fund invests in a mutual fund or ETF, it will bear additional expenses
based on its pro rata share of the mutual fund’s or ETF’s operating expenses,
including the potential duplication of management fees. The risk of owning a
mutual fund or ETF generally reflects the risks of owning the underlying
securities the mutual fund or ETF holds. The Fund also will incur brokerage
costs when it purchases ETFs.
The
Fund may be appropriate for investors who:
•Have
a long-term investment horizon;
•Want
to add an investment with potential for capital appreciation to diversify their
investment portfolio; and
•Can accept the greater risks of investing in a portfolio with equity
holdings.
Performance
The following
information provides some indication of the risks of investing in the
Fund. The bar chart shows the annual return for the Fund’s Class
A shares from year to year. The table shows how average annual returns for the
Fund’s Class A and Class I shares for the one-year, five-year, ten-year (for
Class A) and since inception periods compare with those of a broad measure of
market performance. Sales loads are reflected in the
table but are not reflected in the bar chart; if these amounts were reflected in
the bar chart, returns would be less than those shown.
The Fund’s past performance,
before and after taxes, is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available on the Fund’s website at www.davidsonmutualfunds.com or by calling the Fund toll-free at 1-877-332-0529.
Class A – Annual Returns as
of December 31
The
Fund’s year-to-date return, excluding
sales loads, as of September 30, 2023 was
7.36%.
During
the period of time shown in the bar chart, the highest
return for a calendar quarter was 21.67% (quarter ended June 30, 2020) and the
lowest return for a
calendar quarter was -19.77% (quarter ended March 31,
2020).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Average Annual
Total Returns
(for the periods ended December 31,
2022) |
|
|
| Since |
Since |
|
|
|
|
| Inception |
Inception |
|
| 1
Year |
5
Years |
10
Years |
(8/11/2008) |
(10/30/2013) |
| Class
A Shares |
|
|
|
| |
| Return Before
Taxes |
-16.21% |
9.72% |
11.35% |
9.32% |
N/A |
| Return After
Taxes on Distributions |
-18.22% |
7.20% |
9.55% |
7.96% |
N/A |
| Return After
Taxes on Distributions and Sale of Fund Shares |
-8.08% |
7.34% |
9.03% |
7.52% |
N/A |
| Class
I Shares |
|
|
|
| |
| Return Before
Taxes |
-12.95% |
10.78% |
N/A |
N/A |
10.30% |
|
S&P
1500®
Index
(reflects no deduction for
fees, expenses or
taxes) |
-17.78% |
9.15% |
12.40% |
9.96% |
10.74% |
Effective
October 28, 2020, the Maximum Sales Charge (Load) Imposed on Purchases (as a
percent of offering price) for Class A shares was reduced from 5.00% to 3.50%.
Accordingly, returns for the Class A shares reflect this reduction.
The
after-tax returns were calculated using the historical highest individual
federal marginal income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns are not relevant to investors who hold shares of the Fund
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). The
after-tax returns are shown only for Class A and the
after-
tax returns for Class I will vary to the
extent it has different expenses. The Return
After Taxes on Distributions and Sale of Fund Shares is higher than other return
figures when a capital loss occurs upon redemption and provides an assumed tax
deduction that benefits the investor.
Management
Investment
Advisor. Davidson
Investment Advisors, Inc. is the Fund’s investment advisor.
Portfolio
Managers. The
Advisor uses a team approach for portfolio management. Messrs. Brian P. Clancy,
CFA, Senior Vice President and Portfolio Manager, and Paul G. Condrat, CFA,
Senior Vice President and Portfolio Manager, are principally responsible for the
day-to-day management of the Fund’s portfolio and serve as co-portfolio managers
of the Fund. Mr. Clancy has been responsible for the Fund’s portfolio management
since its inception in August 2008 and Mr. Condrat has been responsible for
the Fund’s portfolio management since 2011. Prior to becoming a portfolio
manager, Mr. Condrat served as a Senior Research Analyst on the Advisor’s
investment team for eight years.
Purchase
and Sale of Fund Shares
You
may purchase or redeem Fund shares on any business day by written request via
mail (Davidson Multi-Cap Equity Fund, c/o U.S. Bank Global Fund Services,
P.O. Box 701, Milwaukee, WI 53201-0701), by telephone at 1-877-332-0529, by
wire transfer or through a financial intermediary. Investors who wish to
purchase or redeem Fund shares through a financial intermediary should contact
the financial intermediary directly. The minimum initial and subsequent
investment amounts for Class A shares are shown below.
|
|
|
|
|
|
|
|
| |
| Type
of Account |
To
Open
Your
Account |
To
Add to
Your
Account |
| Regular
Accounts |
$2,500 |
Any
amount |
| IRAs
(Traditional, Roth, SEP, and SIMPLE IRAs) |
$2,500 |
Any
amount |
| 401(k),
Pension or Other Types of ERISA Accounts |
Any
amount |
Any
amount |
| Automatic
Investment Plan Accounts |
$2,500 |
$100 |
Class
I shares require a minimum investment of $100,000, are generally available for
purchase only by institutional investors, retirement accounts or high net worth
individuals and have no minimum subsequent investment requirements, provided the
other eligibility requirements for purchase are met. The minimum initial
investment is waived for wrap fee program accounts investing in Class I.
Tax
Information
The
Fund’s distributions are taxable, and, unless you are investing through a
tax-deferred vehicle, distributions will be taxed as ordinary income or capital
gains. Distributions on investments made through tax-deferred vehicles such as
401(k) plans or IRAs may be taxed upon withdrawal of assets from those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary,
the Fund and/or the Advisor or its affiliates may pay the 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 intermediary and your
salesperson to recommend the Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more information.
|
|
| |
|
PRINCIPAL
INVESTMENT STRATEGIES, RELATED RISKS
AND
DISCLOSURE OF PORTFOLIO HOLDINGS |
Principal
Investment Strategies
Under
normal market conditions, the Fund invests at least 80% of its net assets
(including any borrowings for investment purposes) in equity securities across a
wide range of market capitalizations and investment styles with attractive
fundamental characteristics. The equity securities in which the Fund may invest
includes common stock, preferred stock, convertibles, warrants, ADRs and REITs.
The Fund looks for companies with reasonable valuations, prudent debt levels,
cash flow generation, attractive growth characteristics and solid balance
sheets. The Fund will invest its assets in both value and growth stocks, as well
as dividend-paying and non-dividend-paying stocks. The Fund will seek to achieve
its investment objective primarily through stock selection, with less emphasis
on sector weightings. As a result, the Fund expects to only occasionally make
modest sector changes, preferring to differentiate performance by relative
movement in individual stocks rather than in sectors or industries.
The
Advisor may sell a position if the fundamentals have deteriorated, catalysts
fail to develop, or a stock exceeds fair valuation. The Advisor may also sell a
position if a better alternative becomes available. The Advisor does not base
sell decisions solely on price activity and will trim positions if either the
individual position or the sector has grown to be too large a percentage of the
portfolio.
The
Fund may seek to enhance returns through investments in foreign securities
(including in ADRs) and other investment companies, including ETFs. The Fund may
invest up to 25% of its net assets in foreign securities, including in emerging
markets. The Fund also may invest up to 20% of its net assets in other
investment companies. Investments in other investment companies that invest
predominantly in equity securities are considered equity securities for purposes
of the “80% test” described in the first paragraph above.
Temporary
or Cash Investments.
Under normal market conditions, the Fund will stay fully invested according to
its principal investment strategies as noted above. The Fund, however, may
temporarily depart from its principal investment strategies by making short-term
investments in cash, cash equivalents, and high-quality, short-term debt
securities and money market instruments for temporary defensive purposes in
response to adverse market, economic political or other conditions. This may
result in the Fund not achieving its investment objective during that
period.
For
longer periods of time, the Fund may hold a substantial cash position. If the
market advances during periods when the Fund is holding a large cash position,
the Fund may not participate to the extent it would have if the Fund had been
more fully invested. To the extent that the Fund uses a money market fund for
its cash position, there will be some duplication of expenses because the Fund
would bear its pro rata portion of such money market fund’s management fees and
operational expenses.
Related
Risks
The
risk exists that you could lose money on your investment in the Fund. The
principal risks of investing in the Fund that may adversely affect the Fund’s
net asset value (“NAV”) or total return are discussed below. By itself, the Fund
is not a complete, balanced investment plan and the success of the Fund cannot
be predicted.
General
Market Risk.
Economies and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including: inflation (or expectations
for inflation); interest rates; global demand for particular products or
resources; natural disasters or events;
pandemic
diseases; terrorism; regulatory events; and government controls. U.S. and
international markets have experienced significant periods of volatility in
recent years and months due to a number of economic, political and global macro
factors, which has resulted in disruptions to business operations and supply
chains, stress on the global healthcare system, growth concerns in the U.S. and
overseas, staffing shortages and the inability to meet consumer demand, and
widespread concern and uncertainty. Continuing uncertainties regarding interest
rates, rising inflation, political events, rising government debt in the U.S.
and trade tensions also contribute to market volatility. As a result of
continuing political tensions and armed conflicts, including the war between
Ukraine and Russia, the U.S. and the European Union imposed sanctions on certain
Russian individuals and companies, including certain financial institutions, and
have limited certain exports and imports to and from Russia. The war has
contributed to recent market volatility and may continue to do so.
Equity
Securities Risk.
An investor in the Fund faces the risk that the market value of a security may
move up and down, sometimes rapidly and unpredictably. These fluctuations may
cause a security to be worth less than the price originally paid for it, or less
than it was worth at an earlier time. Equity risk may affect a single issuer,
industry, sector of the economy or the stock market as a whole.
Management
Risk. The
skill of the Advisor will play a significant role in the Fund’s ability to
achieve its investment objective. The Fund’s ability to achieve its investment
objective depends on the ability of the Advisor to correctly identify economic
trends, especially with regard to accurately forecasting inflationary and
deflationary periods. In addition, the Fund’s ability to achieve its investment
objective depends on the Advisor’s ability to select stocks, particularly in
volatile stock markets. The Advisor could be incorrect in its analysis of
industries, companies and the relative attractiveness of growth and value stocks
and other matters. Neither the Board nor the Advisor can guarantee that the Fund
will achieve its investment objective.
Small
and Medium Companies Risk. Investing
in securities of small and medium capitalization companies may involve greater
volatility than investing in larger and more established companies because small
and medium capitalization companies can be subject to more abrupt or erratic
share price changes than larger, more established companies. Small and medium
capitalization companies may have limited product lines, markets or financial
resources and their management may be dependent on a limited number of key
individuals. Securities of those companies may have limited market liquidity and
their prices may be more volatile.
REIT
Risk.
Investments
in REITs will be subject to the risks associated with the direct ownership of
real estate. Risks commonly associated with the direct ownership of real estate
include fluctuations in the value of underlying properties, defaults by
borrowers or tenants, changes in interest rates and risks related to general or
local economic conditions. REITs are more dependent upon specialized management
skills, have limited diversification and are, therefore, generally dependent on
their ability to generate cash flow to make distributions to shareholders. REITs
are subject to complex tax qualification and compliance rules. In addition,
REITs have their own expenses, and the Fund will indirectly bear a proportionate
share of those expenses.
Foreign
and Emerging Market Securities Risk.
The Fund may invest in foreign securities, which may be subject to special
risks. The Fund’s returns and NAV may be affected by several factors, including
those described below.
Foreign
securities are also subject to higher political, social and economic risks.
These risks include, but are not limited to, a downturn in the country’s
economy, excessive taxation, political instability, and
expropriation
of assets by foreign governments. Compared to the U.S., foreign governments and
markets often have less stringent accounting, disclosure, and financial
reporting requirements.
Foreign
securities may be more volatile and less liquid than domestic (U.S.) securities,
which could affect the Fund’s investments. Securities markets of other countries
are generally smaller than U.S. securities markets. The exchange rates between
the U.S. dollar and foreign currencies might fluctuate, which could negatively
affect the value of the Fund’s investments.
Emerging
market countries entail greater investment risk than developed markets. Such
risks could include government dependence on few industries or resources,
government-imposed taxes on foreign investment or limits on the removal of
capital from a country, unstable government, and volatile markets.
ETF
and Mutual Fund Risk.
The risk of owning an ETF or mutual fund generally reflects the risks of owning
the underlying securities it holds. Many ETFs seek to replicate a specific
benchmark index. However, an ETF may not fully replicate the performance of its
benchmark index for many reasons, including because of 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 stocks held. Lack of liquidity in an ETF could
result in an ETF being more volatile than the underlying portfolio of securities
it holds. When the Fund invests in an ETF or mutual fund, investors will
indirectly bear a proportionate share of any fees and expenses charged by the
ETF or fund in which the Fund invests in addition to the expenses of the Fund.
The Fund also will incur brokerage costs when it purchases ETFs. Furthermore,
investments in other mutual funds could affect the timing, amount and character
of distributions to shareholders and therefore may increase the amount of taxes
payable by investors in the Fund.
Disclosure
of Portfolio Holdings
A
description of the Fund’s policies and procedures with respect to the disclosure
of the Fund’s portfolio securities is available in the Fund’s SAI. Currently,
disclosure of the Fund’s holdings is required to be made quarterly within 60
days of the end of each fiscal quarter in the Fund’s annual report and
semi-annual report to Fund shareholders and in the quarterly holdings report on
Part F of Form N-PORT. From time to time, the Advisor may select certain
portfolio characteristics for distribution to the public on the Fund’s website
at www.davidsonmutualfunds.com,
with such frequencies and lag times as the Advisor determines to be in the best
interests of shareholders.
Investment
Advisor
Davidson
Investment Advisors, Inc. is the Fund’s investment advisor and provides
discretionary investment advisory services to the Fund pursuant to an investment
advisory agreement between the Advisor and the Board (the “Advisory Agreement”).
The Advisor’s corporate headquarters is located at The D.A. Davidson Building, 8
Third Street North, Great Falls, Montana 59401-3155. The Advisor has provided
investment advisory services to individuals, banks, pension and profit sharing
plans, trusts, estates, foundations and corporations since 1975. The Advisor has
provided investment advisory services to the Fund since its inception. The
Advisor is a wholly-owned subsidiary of D.A. Davidson Companies, a financial
services holding company.
The
Advisor provides the Fund with advice on buying and selling securities. The
Advisor also furnishes the Fund with office space and certain administrative
services and provides most of the personnel needed by the Fund. For its
services, the Advisor is entitled to receive an annual management fee,
calculated daily and payable monthly, equal to 0.65% of the Fund’s average daily
net assets. For the fiscal year
ended
June 30, 2023, the Advisor received net management fees of 0.50% of the Fund’s
average daily net assets after fees waived.
A
discussion regarding the basis for the Board’s approval of the Advisory
Agreement for the Fund is available in the Fund’s semi-annual report for the
period ended December 31, 2022.
Portfolio
Managers
The
Advisor uses a team approach for portfolio management. Brian P. Clancy, CFA and
Paul G. Condrat, CFA are principally responsible for the day-to-day management
of the Fund’s portfolio and serve as co-portfolio managers of the
Fund.
Brian
P. Clancy, CFA is
a Senior Vice President and Portfolio Manager of the Advisor. Mr. Clancy joined
the Advisor in October 2004. Prior to joining the Advisor, Mr. Clancy worked at
SAFECO Asset Management since 1996. During that time Mr. Clancy worked as
co-manager of the Multi-Cap Core Fund, as well as serving as a portfolio manager
for the SAFECO Trust Company. He earned a Master of Business Administration
degree from the University of Washington and is a graduate of the United States
Naval Academy, where he received a Bachelor of Science degree in Mathematics.
Mr. Clancy is a CFA charterholder and a member of the CFA Society of
Seattle.
Paul
G. Condrat, CFA
is a Senior Vice President and Portfolio Manager of the Advisor.
Mr. Condrat joined the Advisor in 2004. Prior to joining the Advisor, Mr.
Condrat interned at Bainbridge Capital as a business analyst. He earned a
Bachelor of Business Administration degree in finance and marketing from Gonzaga
University. Mr. Condrat is a CFA charterholder and a member of the CFA Society
of Seattle.
The
SAI provides additional information about the portfolio managers for the Fund,
including information about the portfolio managers’ compensation, other accounts
managed by the portfolio managers, their ownership of securities in the Fund and
any conflicts of interest.
Fund
Expenses
The
Fund is responsible for its own operating expenses. The Advisor has
contractually agreed, however, to waive its fees and pay expenses of the Fund to
ensure that the net annual fund operating expenses (excluding AFFE, taxes,
interest expense, dividends on securities sold short and extraordinary expenses,
Rule 12b-1 fees, shareholder servicing fees, and any other class-specific
expenses) do not exceed 0.90% of the Fund’s average daily net assets through at
least October 27, 2024. The term of the Fund’s operating expenses limitation
agreement is indefinite, and it can only be terminated by the Board. The Advisor
may request recoupment of previously waived fees and paid expenses in any
subsequent month in the 36-month period from the date of the management fee
reduction and expense payment if the aggregate amount actually paid by the Fund
toward the operating expenses for such fiscal year (taking into account the
reimbursement) will not cause the Fund to exceed the lesser of: (1) the
expense limitation in place at the time of the management fee reduction and
expense payment; or (2) the expense limitation in place at the time of the
reimbursement. Any such recoupment is contingent upon the subsequent review and
approval of the recouped amounts by the Board.
|
|
| |
| YOUR
ACCOUNT WITH THE FUND |
Set
forth below is information about the manner in which the Fund offers shares. A
financial intermediary may offer Fund shares subject to variations in or
elimination of the Fund sales charges (“variations”), provided such variations
are described in this Prospectus. All variations described in Appendix A are
applied by, and the responsibility of, the identified financial intermediary.
Sales charge variations may apply to purchases, sales, exchanges and
reinvestments of Fund shares and a shareholder transacting in Fund shares
through an intermediary identified on Appendix A should read the terms and
conditions of Appendix A carefully. For the variations applicable to shares
offered through Merrill Lynch-sponsored platforms, please see “Appendix A –
Financial Intermediary Sales Charge Variations.” A variation that is
specific
to a particular financial intermediary is not applicable to shares held directly
with the Fund or through another intermediary. Please consult your financial
intermediary with respect to any variations listed on Appendix A.
Description
of Classes
The
Board has adopted a multiple class plan that allows the Fund to offer one or
more classes of shares. The Fund has registered two classes of shares –
Class A shares and Class I shares. The different classes of shares represent
investments in the same portfolio of securities, but the classes are subject to
different expenses and may have different share prices as outlined
below:
•Class
A
shares are charged a front-end sales load. The Class A shares are
also charged a 0.25% Rule 12b-1 distribution and service fee. Class A
shares do not have a contingent deferred sales charge (“CDSC”) except that a
charge of 1.00% applies to certain redemptions made within twelve months,
following purchases of $1 million or more without an initial sales
charge.
•Class
I
shares are not charged a front-end sales load, a CDSC or a Rule 12b-1
distribution and service fee and are generally available for purchase only by
institutional investors, retirement accounts or high net worth
individuals.
Class
A Shares
Class
A shares of the Fund are retail shares that require that you pay a front-end
sales charge when you invest in the Fund unless you qualify for a reduction or
waiver of the sales charge. Class A shares are also subject to Rule 12b-1
fees (or distribution and service fees) of 0.25% of average daily net assets
which are assessed against the shares of the Fund.
If
you purchase Class A shares of the Fund you will pay the public offering price
(“POP”) which is the NAV per share next determined after your order is received
plus a sales charge (shown in percentages below) depending on the amount of your
investment. Since sales charges are reduced for Class A share purchases above
certain dollar amounts, known as “breakpoint levels,” the POP is lower for these
purchases. The dollar amount of the sales charge is the difference between the
POP of the shares purchased (based on the applicable sales charge in the table
below) and the NAV of those shares. Because of rounding in the calculation of
the POP, the actual sales charge you pay may be more or less than that
calculated using the percentages shown below. The sales charge does not apply to
shares purchased with reinvested dividends. The sales charge is calculated as
follows:
|
|
|
|
|
|
|
|
|
|
|
| |
| Amount
of Transaction |
Sales
Charge as a
%
of Public
Offering
Price(1) |
Sales
Charge as a
% of Net Amount Invested |
Dealer
Reallowance as a % of Public Offering Price |
| Less
than $25,000 |
3.50% |
3.63% |
3.50% |
| $25,000
but less than $50,000 |
3.00% |
3.09% |
3.00% |
| $50,000
but less than $100,000 |
2.50% |
2.56% |
2.50% |
| $100,000
but less than $250,000 |
2.00% |
2.04% |
2.00% |
| $250,000
but less than $500,000 |
1.50% |
1.52% |
1.50% |
| $500,000
but less than $1,000,000 |
1.00% |
1.01% |
1.00% |
|
$1,000,000
or more(2) |
0.00% |
0.00% |
1.00% |
(1)Offering
price includes the front-end sales load. The sales charge you pay may differ
slightly from the amount set forth above because of rounding that occurs in the
calculation used to determine your sales charge.
(2)U.S.
Bank Global Fund Services (the “Transfer Agent”) will assess Class A purchases
of $1,000,000 or more a 1.00% charge if they are redeemed within twelve months
from the date of purchase, unless the dealer of record waived its commission.
The 1.00% is applied to the NAV of the shares on the date of original purchase
or on the date of redemption, whichever is less.
The
Advisor’s affiliated broker-dealer, D.A. Davidson & Co. (“DAD”), will
receive all of the initial sales charge for purchases of Class A shares of the
Fund without a dealer of record and the 1.00% charge on Class A shares redeemed
within twelve months of purchase.
Reducing
Your Sales Charge
You
may be able to reduce the sales charge on Class A shares of the Fund based
on the combined market value of your accounts. If you believe you are eligible
for any of the following reductions or waivers, it is up to you to ask the
selling agent or shareholder servicing agent for the reduction and to provide
appropriate proof of eligibility.
•You
pay no sales charges on Fund shares you buy with reinvested
distributions.
•You
pay a lower sales charge if you are investing an amount over a specific
breakpoint level as indicated by the above table.
•You
pay no sales charges on Fund shares you purchase with the proceeds of a
redemption of Class A shares of the Fund within 365 days of the date of the
redemption. You must provide instruction at the time of purchase of your intent
to exercise this privilege.
•By
signing a Letter
of Intent (“LOI”)
prior to purchase, you pay a lower sales charge now in exchange for promising to
invest an amount over a specified breakpoint within the next 13 months.
Reinvested dividends and capital gains do not count as purchases made during
this period. The Fund will hold in escrow shares equal to approximately 3.50% of
the amount you say you intend to buy. If you do not invest the amount specified
in the LOI before the expiration date, the Transfer Agent will redeem enough
escrowed shares to pay the difference between the reduced sales load you paid
and the sales load you would have paid based on the total amount actually
invested in Class A shares on the expiration date. Otherwise, the Transfer
Agent will release the escrowed shares when you have invested the agreed 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.
•Rights
of Accumulation (“ROA”)
allow you to combine Class A shares of the Fund you already own in order to
reach breakpoint levels and to qualify for sales load discounts on subsequent
purchases of Class A shares. The purchase amount used in determining the
sales charge on your purchase will be calculated by multiplying the maximum
public offering price by the number of Class A shares of the Fund already
owned and adding the dollar amount of your current purchase.
Eligible
Accounts
Certain
accounts may be aggregated for ROA eligibility, including your current
investment in the Fund, and previous investments you and members of your primary
household group have made in the Fund, provided your investment was subject to a
sales charge. (Your primary household group consists of you, your spouse and
children under age 21 living at home.) Specifically, the following accounts are
eligible to be included in determining the sales charge on your purchase, if a
sales charge has been paid on those purchases:
•Individual
or joint accounts held in your name;
•Coverdell
Education Savings Accounts and UGMA/UTMA accounts for which you or your spouse
is parent or guardian of the minor child;
•Trust
accounts for which you or a member of your primary household group,
individually, is the beneficiary;
•Accounts
held in the name of you or your spouse’s sole proprietorship or single owner
limited liability company or S corporation; and
•Investors
who purchase shares that are to be included in certain retirement, benefit,
pension, trust or investment “wrap accounts” or through an omnibus account
maintained with the Fund by a broker-dealer.
A
financial intermediary may impose different sales load discounts. Sales load
discount variations specific to certain financial intermediaries are described
in Appendix A to this Prospectus.
Waiving
Your Sales Charge
The
sales charges may be waived for certain groups or classes of shareholders. If
you fall into any of the following categories, you can buy Class A shares at NAV
without a sales charge:
•Current
and retired employees, directors/trustees and officers of:
◦Advisors
Series Trust;
◦Davidson
Investment Advisors, Inc. and its affiliates; and
◦Family
members (spouse, domestic partner, parents, grandparents, children,
grandchildren and siblings (including step and in-law)) of any of the
above.
•Current
employees of:
◦the
Fund’s Transfer Agent;
◦broker-dealers
who act as selling agents; and
◦Family
members (spouse, domestic partner, parents, grandparents, children,
grandchildren and siblings (including step and in-law)) of any of the
above.
•Qualified
registered investment advisors who buy through a broker-dealer or service agent
who has entered into an agreement with the Fund’s distributor that allows for
load-waived Class A purchases.
•Financial
intermediaries and qualified broker-dealers, including the Advisor’s affiliated
broker-dealer, DAD, who have entered into an agreement with the Fund’s
distributor that allows for load-waived Class A purchases.
•Financial
intermediaries who have entered into an agreement with the Fund’s distributor to
offer shares to self-directed investment brokerage accounts that may or may not
charge a transaction fee to its customers.
•Investment
advisory clients of the Advisor.
The
Board also reserves the right to enter into agreements that reduce or eliminate
sales charges for groups or classes of shareholders, or for Fund shares included
in other investment plans such as “wrap accounts.” If you own Fund shares as
part of another account or package, such as an IRA or a sweep account, you
should read the terms and conditions that apply for that account. Those terms
and conditions may supersede the terms and conditions discussed here. Contact
your selling agent for further information.
A
financial intermediary may impose different sales load waivers. Sales load
waiver variations specific to certain financial intermediaries are described in
Appendix
A
to this Prospectus. Investors who are converted from Class I shares by their
financial intermediary will not be subject to a sales load.
If
you hold shares through a financial intermediary and you believe you qualify for
a sales load waiver, please notify your financial intermediary prior to
purchase. You will be required to show proof of your eligibility for a sales
load waiver. The Board may terminate or amend the terms of these sales charge
waivers.
More
information regarding the Fund’s sales charges, breakpoints and waivers is
available free of charge on the Fund’s website: www.davidsonmutualfunds.com,
by clicking on “Breakpoints and Sales Loads.”
Class
I Shares
Class
I shares of the Fund are offered without any sales charge on purchases or sales
and without any ongoing distribution fee.
Class
I shares are available for purchase exclusively by (i) eligible
institutions (e.g., a
financial institution, corporation, trust, estate, or educational, religious or
charitable institution) with assets of at least $100,000, (ii) tax-exempt
retirement plans with assets of at least $100,000 (including 401(k) plans,
457 plans, employer-sponsored 403(b) plans, profit sharing and money
purchase plans, defined benefit plans and non-qualified deferred compensation
plans), (iii) fee-based investment programs with assets of at least
$100,000, (iv) qualified state tuition plan (529 plan) accounts and
(v) high net worth individuals. The minimum initial investment is waived
for wrap fee program accounts.
Class
I share participants in tax-exempt retirement plans must contact the plan’s
administrator to purchase shares. For plan administrator contact information,
participants should contact their respective employer’s human resources
department. Class I share participants in fee-based investment programs should
contact the program’s administrator or their financial advisor to purchase
shares. Transactions generally are effected on behalf of a tax-exempt retirement
plan participant by the administrator or a custodian, trustee or record keeper
for the plan and on behalf of a fee-based investment program participant by
their administrator or financial advisor. Class I share institutional clients
may purchase shares either directly or through an authorized
dealer.
Share
Price
Shares
of the Fund are sold based on the NAV per share, plus any applicable sales
charge, which is calculated as of the close of regular trading (generally, 4:00
p.m., Eastern Time) on each day that the New York Stock Exchange (“NYSE”) is
open for unrestricted business. However, the Fund’s NAV may be calculated
earlier if trading on the NYSE is restricted or as permitted by the SEC. The
NYSE is closed on weekends and most national holidays. The NAV will not be
calculated on days when the NYSE is closed for trading.
Purchase
and redemption requests are priced based on the next NAV per share calculated
after receipt of such requests. The NAV is the value of the Fund’s securities,
cash and other assets, minus all expenses and liabilities. NAV per share is
determined by dividing NAV by the number of shares outstanding. The NAV takes
into account the expenses and fees of the Fund, including management and
administration fees, which are accrued daily.
In
calculating the NAV, portfolio securities are valued using current market values
or official closing prices, if available. Each security owned by the Fund that
is listed on a securities exchange is valued at its last sale price on that
exchange on the date as of which assets are valued. Where the security is listed
on more than one exchange, the Fund will use the price of the exchange that the
Fund generally considers to be the principal exchange on which the security is
traded. When market quotations are not readily available, a security or other
asset is valued at its fair value as determined under procedures adopted by the
Advisor. These fair value procedures will also be used to price a security when
corporate events, events in the securities market and/or world events cause the
Advisor to believe that a security’s last sale price may not reflect its actual
market value. The intended effect of using fair value pricing procedures is to
ensure that the Fund is accurately priced. The Board has designated the Advisor
as its “valuation designee” under Rule 2a-5 of the 1940 Act, subject to its
oversight.
When
fair value pricing is employed, the prices of securities used to calculate the
Fund’s NAV may differ from quoted or published prices for the same securities.
Due to the subjective and variable nature of fair value pricing, it is possible
that the fair value determined for a particular security may be materially
different from the price of the security quoted or published by others or the
value when trading resumes or realized upon its sale. Therefore, if a
shareholder purchases or redeems shares in the Fund when it holds
securities
priced at a fair value, this may have the unintended effect of increasing or
decreasing the number of shares received in a purchase or the value of the
proceeds received upon a redemption.
In
the case of foreign securities, the occurrence of certain events after the close
of foreign markets, but prior to the time the Fund’s NAV is calculated (such as
a significant surge or decline in the U.S. or other markets) often will result
in an adjustment to the trading prices of foreign securities when foreign
markets open on the following business day. If such events occur, the Fund will
value foreign securities at fair value, taking into account such events, in
calculating the NAV. In such cases, use of fair valuation can reduce an
investor’s ability to seek to profit by estimating the Fund’s NAV in advance of
the time the NAV is calculated. The Advisor anticipates that the Fund’s
portfolio holdings will be fair valued only if market quotations for those
holdings are considered unreliable.
|
|
| |
| HOW
TO PURCHASE SHARES OF THE FUND |
There
are several ways to purchase shares of the Fund. An account application is used
if you send money directly to the Fund by mail or wire. Payment should be made
by check in U.S. dollars and drawn on a domestic financial institution, savings
and loan, or credit union, or sent by wire transfer. Checks should be made
payable to the Fund.
The
Fund will not accept payment in cash or money orders. To prevent check fraud,
the Fund will not accept third party checks, U.S. Treasury checks, credit card
checks, traveler’s checks or starter checks for the purchase of shares. The
Transfer Agent is unable to accept post-dated checks, or any conditional order
or payment.
If
your check is returned for any reason, a $25 fee will be assessed against your
account. You will also be responsible for any losses suffered by the Fund as a
result.
In
compliance with the USA PATRIOT Act of 2001, please note that the Transfer Agent
will verify certain information on your account application as part of the
Fund’s Anti-Money Laundering Program. As requested on the application, you must
provide your full name, date of birth, social security number and permanent
street address. If you are opening the accounts in the name of a legal entity
(e.g.,
partnership, limited liability company, business trust, corporation, etc.) you
must also supply the identity of the beneficial owners. Mailing addresses
containing only a P.O. Box will not be accepted. Please contact the Transfer
Agent at 1-877-332-0529 if you need assistance when completing your account
application.
If
the Transfer Agent does not have a reasonable belief of the identity of an
investor, the account will be rejected or you will not be allowed to perform a
transaction on the account until such information is received. In the rare event
that the Transfer Agent is unable to verify your identity, the Fund reserves the
right to redeem your account at the current day’s net asset value.
The
Fund does not issue share certificates and shares of the Fund have not been
registered for sale outside of the United States. The Fund generally does not
sell shares to investors residing outside of the United States, even if they are
United States citizens or lawful permanent residents, except to investors with
United States military APO or FPO addresses. The Fund reserves the right to
reject any purchase in whole or in part. If you have questions about how to
invest, or about how to complete the account application, please call an account
representative at 1-877-332-0529.
You
may Purchase Shares through an Investment Broker
You
may buy and sell shares of the Fund through certain brokers (and their agents,
together “brokers”) that have made arrangements with the Fund. An order placed
with such a broker is treated as if it was placed directly with the Fund, and
will be executed at the next share price calculated by the Fund. Brokers may be
authorized by the Fund’s principal underwriter to designate other brokers and
financial intermediaries to accept orders on the Fund’s behalf. An order is
deemed to be received when the Fund, a
Broker
or, if applicable, a Broker’s authorized designee accepts the order. Your shares
will be held in the broker’s name, and the broker will maintain your individual
ownership information. The Fund or Advisor may pay the broker for maintaining
these records as well as providing other shareholder services. In addition, the
broker may charge you a fee for handling your order. The broker is responsible
for processing your order correctly and promptly, keeping you advised of the
status of your individual account, confirming your transactions and ensuring
that you receive copies of the Fund’s Prospectus.
You
may be required to pay commissions and/or other forms of compensation to a
broker for transactions in Class I shares, which are not reflected in the
table or the example on page 1.
Class I
shares have no front-end load, deferred sales charge or other asset-based fee
for sales or distribution and so may be considered “Clean Shares.” As such,
Class I shares may also be available on brokerage platforms of firms that
have agreements with the Fund to offer such shares when acting solely on an
agency basis for the purchase or sale of such shares. If you transact in
Class I share through one of these programs, you may be required to pay a
commission and/or other forms of compensation to the broker. Shares of the Fund
are available in other share classes that have different fees and
expenses.
You
may Send Money to the Fund by Mail
If
you wish to invest by mail, simply complete the account application and mail it
with a check (made payable to Davidson Multi-Cap Equity Fund) to the Transfer
Agent at the following address:
|
|
|
|
|
| |
| Regular
Mail |
Overnight
Delivery |
| Davidson
Multi-Cap Equity Fund |
Davidson
Multi-Cap Equity Fund |
| c/o
U.S. Bank Global Fund Services |
c/o
U.S. Bank Global Fund Services |
| P.O.
Box 701 |
615
East Michigan Street, Third Floor |
| Milwaukee,
Wisconsin 53201-0701 |
Milwaukee,
Wisconsin 53202 |
Note: 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. Bank Global Fund Services 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.
You
may Wire Money to the Fund
If
you are making your first investment in the Fund, before you wire funds, please
contact the Fund by phone to make arrangements with a telephone service
representative to submit your completed account application via mail, overnight
delivery or facsimile. Upon receipt of your completed application, your account
will be established and a service representative will contact you to provide
your new account number and wiring instructions. If you do not receive this
information within one business day, you may call the Transfer Agent at
1-877-332-0529.
You
may then instruct your bank to initiate the wire. Prior to sending the wire,
please call the Fund at 1-877-332-0529 to advise them of the wire and to ensure
proper credit upon receipt. Your bank must include the Fund’s name, your name
and account number so that your wire can be correctly applied. Your bank should
transmit immediately available funds by wire to:
U.S.
Bank National Association
777
East Wisconsin Avenue
Milwaukee,
Wisconsin 53202
ABA
No.: 075000022
Credit: U.S.
Bancorp Fund Services, LLC
A/C
No.: 112-952-137
FFC: Davidson
Multi-Cap Equity Fund
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. Neither the Fund nor U.S. Bank N.A. is responsible for the
consequences of delays resulting from the banking or Federal Reserve wire
system, or from incomplete wiring instructions.
Please
contact the Transfer Agent prior to sending a wire in order to ensure proper
credit. If you are making a subsequent purchase, your bank should wire funds as
indicated above. It is essential that your bank include complete information
about your account in all wire instructions. If you have questions about how to
invest by wire, you may call the Transfer Agent at 1-877-332-0529. Your bank may
charge you a fee for sending a wire payment to the Fund.
When
is Money Invested in the Fund?
Your
share price will be the next NAV per share (plus any applicable sales charge)
calculated after the Transfer Agent or your broker receives your request in good
order. “Good order” means that your purchase request includes: (1) the name
of the Fund, (2) the dollar amount of shares to be purchased, (3) your
purchase application or investment stub, and (4) a check payable to the
Fund in which you are investing. All requests received in good order before 4:00
p.m., Eastern Time will be processed on that same day. Requests received after
4:00 p.m., Eastern Time will be based on the next business day’s NAV per
share.
What
is the Price of the Fund?
Class
A shares of the Fund are sold at NAV per share plus any applicable sales charge;
Class I shares of the Fund are sold at NAV per share. The Fund’s NAV per share,
or price per share, is calculated by dividing the value of the Fund’s total
assets, less its liabilities, by the number of its shares outstanding. The
Fund’s assets are the market value of securities held in its portfolio, plus any
cash and other assets. The Fund’s liabilities are fees and expenses it owes. The
number of Fund shares outstanding is the amount of shares which have been issued
to shareholders. The price you will pay to buy Fund shares or the amount you
will receive when you sell your Fund shares is based on the NAV per share next
calculated after your order is received and accepted.
Conversion
Feature
If
consistent with your financial intermediary’s program, Class A shares of the
Fund that have been purchased by a financial intermediary on behalf of clients
participating in (i) 401(k) plans, Section 457 deferred compensation plans,
employer-sponsored 403(b) plans, profit-sharing and money purchase pension
plans, defined benefit plans and nonqualified deferred compensation plans (ii)
investment advisory clients of the Advisor (iii) eligible institutions or (iv)
investment programs in which the clients pay an all-inclusive fee, such as a
wrap fee, or other fee-based program, may be converted into Class I shares of
the Fund if the financial intermediary satisfies any then-applicable eligibility
requirements for investment in Class I shares of the Fund. Any such conversion
will be effected at net asset value without the imposition of any fee or other
charges by the Fund. Please contact your financial intermediary about any fees
that it may charge.
Investors
who hold Class I shares of the Fund through a financial intermediary’s fee-based
program, but who subsequently become ineligible to participate in the program or
withdraw from the program (while continuing their relationship with the
financial intermediary as a brokerage client), may be subject to conversion of
their Class I shares by their financial intermediary to another class of shares
of the Fund having expenses (including Rule 12b-1 fees) that may be higher than
the expenses of the Class I shares. Investors should contact their financial
intermediary to obtain information about their eligibility for the financial
intermediary’s fee-based program and the class of shares they would receive upon
such a conversion.
The
minimum initial and subsequent investment amounts for the Fund’s Class A shares
are shown in the table below:
|
|
|
|
|
|
|
|
| |
| Type
of Account |
To
Open
Your
Account |
To
Add to
Your
Account |
| Regular
Accounts |
$2,500 |
Any
amount |
| IRAs
(Traditional, Roth, SEP, and SIMPLE IRAs) |
$2,500 |
Any
amount |
| 401(k),
Pension or Other Types of ERISA Accounts |
Any
amount |
Any
amount |
| Automatic
Investment Plan Accounts |
$2,500 |
$100 |
Class
I shares for the Fund require a minimum investment of $100,000, are generally
available for purchase only by institutional investors, retirement accounts or
high net worth individuals and have no minimum subsequent investment
requirements, provided the other eligibility requirements for purchase are met.
The minimum initial investment is waived for wrap fee program accounts investing
in Class I.
The
Fund’s minimum investment requirements may be waived from time to time by the
Advisor, and for the following types of shareholders:
•current
and retired employees, directors/trustees and officers of Advisors Series Trust,
the Advisor and its affiliates and certain family members of each of them
(i.e.,
spouse, domestic partner, child, parent, sibling, grandchild and grandparent, in
each case including in-law, step and adoptive relationships);
•any
trust, pension, profit sharing or other benefit plan for current and retired
employees, directors/trustees and officers of the Advisor and its
affiliates;
•current
employees of the Transfer Agent, broker-dealers who act as selling agents for
the Fund, intermediaries that have marketing agreements in place with the
Advisor and the immediate family members of any of them;
•existing
clients of the Advisor;
•registered
investment advisers who buy through a broker-dealer or service agent who has
entered into an agreement with the Fund’s distributor; and
•qualified
broker-dealers who have entered into an agreement with the Fund’s
distributor.
Subsequent
Investments
By
Mail
You
may purchase additional shares of the Fund by sending a check, with the stub
from an account statement, to the Fund at the address above. Please also write
your account number on the check. If you do not have a stub from an account
statement, you can write your name, address and account number on a separate
piece of paper and enclose it with your check. If you want to invest additional
money by wire, it is important for you to first call the Fund at
1-877-332-0529.
By
Telephone
If
you have been authorized to perform telephone transactions (either by completing
the required portion of your account application or by subsequent arrangement in
writing with the Fund), you may purchase additional shares by calling the Fund
toll-free at 1-877-332-0529. You may not make your initial purchase of Fund
shares by telephone. Telephone orders will be accepted via electronic
funds transfer from your pre-designated bank account through the ACH
network. Your account must be open for at least seven business days and you
must have banking information established on your account prior to making a
telephone purchase. Only bank accounts held at domestic institutions that
are ACH members may be used for telephone transactions. If your order is
received prior to 4:00 p.m., Eastern Time, shares will be purchased at the NAV
next calculated, plus any applicable sales charge. For security
reasons, requests by telephone may be recorded. Once a telephone
transaction has been placed, it cannot be cancelled or modified after the close
of regular trading on the NYSE (generally, 4:00 p.m., Eastern
Time).
Automatic
Investment Plan (“AIP”)
You
may make regular monthly investments in the Fund using the AIP. In order to
participate in the AIP, your financial institution must be an Automated Clearing
House (“ACH”) member. An ACH debit is drawn electronically against your account
at a financial institution of your choice. Upon receipt of the withdrawn funds,
the Fund automatically invests the money in additional shares of the Fund at the
next calculated NAV per share plus any applicable sales charge. There is no
charge by the Fund for this service. The Fund may terminate or modify this
privilege at any time. You may terminate or modify your participation by
notifying the Transfer Agent at least five calendar days prior to the effective
date. Once the initial minimum investment of $2,500 for regular accounts and
IRAs is made, the subsequent minimum monthly investment amount is $100. A
request to change bank information may require a signature guarantee or a
signature verification from a Signature Validation Program member or other
acceptable form of authentication from a financial institution source.
Additionally, the Transfer Agent will charge a $25 fee for any payment returned
as unpaid. You will also be responsible for any losses suffered by the Fund as a
result. To establish the AIP, an investor must complete the appropriate section
of the account application. For additional information on the AIP, please call
the Transfer Agent at 1-877-332-0529.
|
|
| |
| HOW
TO REDEEM YOUR SHARES |
You
have the right to redeem all or any portion of your shares of the Fund at their
next calculated NAV per share on each day the NYSE is open for trading and
receive proceeds of your sales in a check, via ACH, or via federal wire
transfer. A redemption may result in recognition of a gain or loss for federal
income tax purposes.
Redemptions
in Writing
You
may redeem your shares by simply sending a written request to the Fund. Please
provide the Fund’s name, your name, account number and state the number of
shares or dollar amount you would like redeemed. The letter should be signed by
all of the shareholders whose names appear in the account registration. Please
have the signatures guaranteed, if applicable. No redemption requests will
become effective until all documents have been received in good order by the
Transfer Agent. Shareholders should contact U.S. Bank Global Fund Services for
further information concerning documentation required for a redemption of Fund
shares. 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. You should send your redemption
request to:
|
|
|
|
|
| |
| Regular
Mail |
Overnight
Delivery |
| Davidson
Multi-Cap Equity Fund |
Davidson
Multi-Cap Equity Fund |
| c/o
U.S. Bank Global Fund Services |
c/o
U.S. Bank Global Fund Services |
| P.O.
Box 701 |
615
East Michigan Street, Third Floor |
| Milwaukee,
Wisconsin 53201-0701 |
Milwaukee,
Wisconsin 53202 |
Note: 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. Bank Global Fund Services post office box, of purchase orders
or redemption requests does not constitute receipt by the Fund’s Transfer
Agent.
Redemptions
by Telephone
If
you authorized the telephone redemption option on your account application, you
may redeem up to $100,000 of your shares on any business day the NYSE is open by
calling the Transfer Agent at 1-877-332-0529 before the close of trading on the
NYSE. Redemption proceeds will be sent on the next business day to the address
that appears on the Transfer Agent’s records.
If
you request, redemption proceeds will be wired on the next business day to your
designated bank account, or sent via electronic funds transfer through the ACH
network to your predetermined bank account. The minimum amount that may be wired
is $1,000. Wire charges, currently $15, will be deducted from your account
balance on dollar specific trades. If you are redeeming your entire account or
are requesting a redemption for a specific share amount, the wire charge will be
deducted from the redemption proceeds. In the case of a partial redemption or a
certain dollar redemption, the fee will be deducted above and beyond the
requested redemption amount. There is no charge to have proceeds sent by
electronic funds transfer and credit is typically available in two to three
business days. Telephone redemptions cannot be made if you notify the Transfer
Agent of a change of address within 30 calendar days before the redemption
request. Once a telephone transaction has been placed, it cannot be canceled or
modified after the close of regular trading on the NYSE (generally, 4:00 p.m.,
Eastern Time). If an account has more than one owner or authorized person, the
Fund will accept telephone instructions from any one owner or authorized
person.
Shares
held in IRA or other retirement accounts may be redeemed by telephone at
1-877-332-0529. IRA investors will be asked whether or not to withhold taxes
from any distribution.
By
establishing telephone redemption privileges, you authorize the Fund and the
Transfer Agent to act upon the instruction of any person who makes the telephone
call to redeem shares from your account and transfer the proceeds to the
financial institution account designated on the account application. The Fund
and the Transfer Agent will use procedures to confirm that redemption
instructions received by telephone are genuine, including recording of telephone
instructions and requiring a form of personal identification before acting on
these instructions. If these normal identification procedures are followed,
neither the Fund nor the Transfer Agent will be liable for any loss, liability,
or cost that results from acting upon instructions of a person believed to be a
shareholder with respect to the telephone redemption privilege. The Fund may
change, modify, or terminate these privileges at any time upon at least
60 days’ notice to shareholders.
You
may request telephone redemption privileges after your account is opened;
however, the authorization form may require a separate signature guarantee or
signature verification from a Signature Validation Program member or other form
of authentication from a financial institution source. Shareholders may
experience delays in exercising telephone redemption privileges during periods
of abnormal market activity. If this occurs, you may make your redemption
request in writing.
Signature
Guarantees
A
signature guarantee, from either a Medallion program member or non-Medallion
program member, is required in the following situations:
•When
ownership is being changed on your account;
•When
redemption proceeds are payable to or sent to any person, address or bank
account not on record;
•When
a redemption is received by the Transfer Agent and the account address has
changed within the last 30 calendar days;
•For
all redemptions in excess of $100,000 from any shareholder account.
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.
In
addition to the situations described above, the Fund and/or the Transfer Agent
may require a signature guarantee or signature validation program stamp in other
instances based on the facts and circumstances.
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. A notary public is not a signature
guarantor.
Systematic
Withdrawal Plan (“SWP”)
The
Fund offers a SWP whereby you may request that a check or ACH drawn in a
predetermined amount be sent to you monthly, quarterly or annually. To start the
SWP, your account must have Fund shares with a value of at least $5,000, and the
minimum amount that may be withdrawn monthly, quarterly, or annually is $100.
The SWP may be terminated or modified by you or the Fund at any time without
charge or penalty. Termination and modification of your SWP should be provided
to the Transfer Agent five calendar days prior to the next withdrawal. A
withdrawal under the SWP involves a redemption of shares of the Fund, and may
result in a gain or loss for federal income tax purposes. In addition, if the
amount withdrawn exceeds the dividends credited to your account, the account
ultimately may be depleted.
Payment
of Redemption Proceeds
You
may redeem Fund shares at a price equal to the NAV per share next determined
after the Transfer Agent receives your redemption request in good order.
Shareholders should contact the Transfer Agent at 1‑877‑332‑0529 for further
information concerning documentation required for redemption of Fund shares.
Your redemption request cannot be processed on days the NYSE is closed. All
requests received in good order by the Fund before the close of the regular
trading session of the NYSE (generally, 4:00 p.m., Eastern Time) will
usually be processed the same day. Payment for shares redeemed will usually be
sent to the bank you indicate or mailed to the address of record within one to
two business days, but no later than the seventh calendar day after receipt of
the redemption request by the Transfer Agent. However, the Fund may suspend the
right of redemption under certain extraordinary circumstances in accordance with
rules of the SEC.
The
Fund typically expects to meet redemption requests by paying out proceeds from
cash or cash equivalent portfolio holdings, or by selling portfolio holdings. In
stressed market conditions, redemption methods may include redeeming in kind,
which is a distribution of securities from the Fund’s portfolio. If the Fund
pays your redemption proceeds by a distribution of securities, you could incur
brokerage or other charges in converting the securities to cash. A redemption,
whether in cash or in-kind, is a taxable event for you.
If
you purchase shares using a check or electronic funds transfer through the ACH
network and soon after request a redemption, the Fund will honor the redemption
request, but will not mail the proceeds until your purchase amount has cleared
(usually within 15 calendar days). This delay can be avoided by investing
by wire to make your purchase. Furthermore, there are certain times when you may
be unable to sell Fund shares or receive proceeds.
Specifically,
the Fund may suspend the right to redeem shares or postpone the date of payment
upon redemption for more than seven business days (1) for any period during
which the NYSE is closed (other than customary weekend or holiday closings) or
trading on the NYSE is restricted; (2) for any period during which an
emergency exists as a result of which disposal by the Fund of securities owned
by it is not reasonably practicable or it is not reasonably practicable for the
Fund fairly to determine the value of its net assets; or (3) for such other
periods as the SEC may permit for the protection of the Fund’s
shareholders.
Other
Redemption Information
Your
redemption proceeds are net of any CDSC fees.
The
Board has elected to be governed by Rule 18f-1 under the 1940 Act. Specifically,
if the amount you are redeeming is in excess of the lesser of $250,000 or 1% of
the Fund’s net assets, the Fund has the right to redeem your shares by giving
you the amount that exceeds $250,000 or 1% of the Fund’s net assets in
securities instead of cash. If the Fund pays your redemption proceeds by a
distribution of securities, you could incur brokerage or other charges in
converting the securities to cash, and will bear any market risks associated
with such securities until they are converted into cash.
Due
to the relatively high cost of maintaining smaller accounts, the shares in your
account (unless it is a retirement plan or Uniform Gifts or Transfers to Minors
Act account) may be redeemed by the Fund if, due to redemptions you have made,
the total value of your account falls below the minimum initial investment. If
the Fund determines to make such an involuntary redemption, you will first be
notified that the value of your account is less than the minimum initial
investment, and you will be allowed 30 days to make an additional
investment to bring the value of your account to at least the minimum initial
investment before the Fund takes any action.
Tools
to Combat Frequent Transactions
The
Board has adopted policies and procedures with respect to frequent purchases and
redemptions of Fund shares by Fund shareholders. The Fund discourages excessive,
short-term trading and other abusive trading practices that may disrupt
portfolio management strategies and harm the Fund’s performance. The Fund takes
steps to reduce the frequency and effect of these activities in the Fund. These
steps include monitoring trading practices and using fair value pricing.
Although these efforts (which are described in more detail below) are designed
to discourage abusive trading practices, these tools cannot eliminate the
possibility that such activity may occur. Further, while the Fund makes efforts
to identify and restrict frequent trading, the Fund receives purchase and sale
orders through financial intermediaries and cannot always know or detect
frequent trading that may be facilitated by the use of intermediaries or the use
of group or omnibus accounts by those intermediaries. The Fund seeks to exercise
its judgment in implementing these tools to the best of its abilities in a
manner that the Fund believes is consistent with shareholder
interests.
Monitoring
Trading Practices
The
Fund monitors selected trades in an effort to detect excessive short-term
trading activities. If, as a result of this monitoring, the Fund believes that a
shareholder has engaged in excessive short-term trading, it may, in its
discretion, ask the shareholder to stop such activities or refuse to process
purchases in the shareholder’s accounts. The Fund may decide to restrict
purchase and sale activity in its shares based on various factors, including
whether frequent purchase and sale activity will disrupt portfolio
management
strategies and adversely affect the Fund’s performance or whether the
shareholder has conducted four round trip transactions within a 12-month period.
In making such judgments, the Fund seeks to act in a manner that it believes is
consistent with the best interests of shareholders. Due to the complexity and
subjectivity involved in identifying abusive trading activity and the volume of
shareholder transactions the Fund handles, there can be no assurance that the
Fund’s efforts will identify all trades or trading practices that may be
considered abusive. In addition, the Fund’s ability to monitor trades that are
placed by individual shareholders within group or omnibus accounts maintained by
financial intermediaries is limited because the Fund does not have simultaneous
access to the underlying shareholder account information.
In
compliance with Rule 22c-2 of the 1940 Act, the Fund’s Distributor, on behalf of
the Fund, has entered into written agreements with each of the Fund’s financial
intermediaries, under which the intermediary must, upon request, provide the
Fund with certain shareholder and identity trading information so that the Fund
can enforce its market timing policies.
Fair
Value Pricing
The
Fund employs fair value pricing selectively to ensure greater accuracy in its
daily NAV and to prevent dilution by frequent traders or market timers who seek
to take advantage of temporary market anomalies. The Advisor has developed
procedures which utilize fair value pricing when reliable market quotations are
not readily available or the Fund’s pricing service does not provide a valuation
(or provides a valuation that in the judgment of the Advisor to the Fund does
not represent the security’s fair value), or when, in the judgment of the
Advisor, events have rendered the market value unreliable. Valuing securities at
fair value involves reliance on judgment. Fair value determinations are made in
good faith in accordance with procedures adopted by the Advisor. There can be no
assurance that the Fund will obtain the fair value assigned to a security if it
were to sell the security at approximately the time at which the Fund determines
its NAV per share.
More
detailed information regarding fair value pricing can be found under the heading
titled, “YOUR ACCOUNT WITH THE FUND – Share Price.”
|
|
| |
| DISTRIBUTION
OF FUND SHARES |
Distribution
and Service (Rule 12b-1) Plan
The
Board has adopted a plan pursuant to Rule 12b-1 that allows the Fund’s Class A
shares shares to pay distribution and service fees for the sale, distribution
and servicing of its shares. The plan provides for the payment of a distribution
and service fee at the annual rate of 0.25% of average daily net assets of the
Fund’s Class A shares. Because these fees are paid out of the Fund’s assets,
over time these fees will increase the cost of your investment and may cost you
more than paying other types of sales charges.
Distribution
and Service Fees – Other Payments to Third Parties
In
addition to the fees that the Fund may pay to its Transfer Agent, the Fund may
pay service fees to intermediaries such as banks, broker-dealers, financial
advisors or other financial institutions, for sub-administration, sub-transfer
agency and other shareholder services associated with shareholders whose shares
are held of record in omnibus, other group accounts or accounts traded through
registered securities clearing agents.
The
Fund has policies and procedures in place for the monitoring of payments to
broker-dealers and other financial intermediaries for distribution-related
activities and the following non-distribution activities: sub-transfer agent,
administrative, and other shareholder servicing services.
The
Advisor, out of its own resources, and without additional cost to the Fund or
its shareholders, may provide additional cash payments or non-cash compensation
to intermediaries who sell shares of the Fund. Such payments and compensation
are in addition to service fees paid by the Fund. These
additional
cash payments are generally made to intermediaries that provide shareholder
servicing, marketing support and/or access to sales meetings, sales
representatives and management representatives of the intermediary. Cash
compensation may also be paid to intermediaries for inclusion of the Fund on its
sales list, including a preferred or select sales list, in other sales programs
or as an expense reimbursement in cases where the intermediary provides
shareholder services to the Fund’s shareholders. The Advisor may also pay cash
compensation in the form of finder’s fees that vary depending on the Fund and
the dollar amount of the shares sold.
Some
of the following policies are mentioned above. In general, the Fund reserves the
right to:
•Refuse,
change, discontinue, or temporarily suspend account services, including
purchase, or telephone redemption privileges, for any reason;
•Reject
any purchase request for any reason. Generally, the Fund does this if the
purchase is disruptive to the efficient management of the Fund (due to the
timing of the investment or an investor’s history of excessive
trading);
•Redeem
all shares in your account if your balance falls below the Fund’s minimum
initial investment requirement due to redemption activity. If, within 30 days of
the Fund’s written request, you have not increased your account balance, you may
be required to redeem your shares. The Fund will not require you to redeem
shares if the value of your account drops below the investment minimum due to
fluctuations of NAV;
•Delay
paying redemption proceeds for up to seven calendar days after receiving a
request, if an earlier payment could adversely affect the Fund; and
•Reject
any purchase or redemption request that does not contain all required
documentation.
If
you elect telephone privileges on the account application or in a letter to the
Fund, you may be responsible for any fraudulent telephone orders as long as the
Fund has taken reasonable precautions to verify your identity. If an account has
more than one owner or authorized person, the Fund will accept telephone
instructions from any one owner or authorized person. In addition, once you
place a telephone transaction request, it cannot be canceled or modified after
the close of regular trading on the NYSE (generally, 4:00 p.m., Eastern
Time).
Telephone
trades must be received by or prior to market close. During periods of high
market activity, shareholders may encounter higher than usual call wait times.
Please allow sufficient time to ensure that you will be able to complete your
telephone transaction prior to market close. If you are unable to contact the
Fund by telephone, you may also mail your request to the Fund at the address
listed under “How to Purchase Shares of the Fund.”
Your
financial intermediary may establish policies that differ from those of the
Fund. For example, the organization may charge transaction fees, set higher
minimum investments, or impose certain limitations on buying or selling shares
in addition to those identified in this Prospectus. Contact your financial
intermediary for details.
Fund
Mailings
Statements
and reports that the Fund sends to you include the following:
•Confirmation
statements (after every transaction that affects your account balance or your
account registration); and
•Quarterly
account statements.
Householding
In
an effort to decrease costs, the Fund intends to reduce the number of duplicate
prospectuses, proxy statements and other similar documents you receive by
sending only one copy of each to those addresses shared by two or more accounts
and to shareholders the Transfer Agent reasonably believes are from the same
family or household. Once implemented, if you would like to discontinue
householding for your accounts, please call toll-free at 1-877-332-0529 to
request individual copies of these documents. Once the Transfer Agent receives
notice to stop householding, the Transfer Agent will begin sending individual
copies thirty days after receiving your request. This policy does not apply to
account statements.
Lost
Shareholders, Inactive Accounts and Unclaimed Property
It
is important that the Fund maintain a correct address for each shareholder.
An incorrect address may cause a shareholder’s account statements and
other mailings to be returned to the Fund. Based upon statutory
requirements for returned mail, the Fund will attempt to locate the shareholder
or rightful owner of the account. If the Fund is unable to locate the
shareholder, then it will determine whether the shareholder’s account can
legally be considered abandoned. Your mutual fund account may be
transferred to the state government of your state of residence if no activity
occurs within your account during the “inactivity period” specified in your
state’s abandoned property laws. The Fund is legally obligated to escheat
(or transfer) abandoned property to the appropriate state’s unclaimed property
administrator in accordance with statutory requirements. The shareholder’s
last known address of record determines which state has jurisdiction.
Please proactively contact the Transfer Agent toll-free at 1-877-332-0529
at least annually to ensure your account remains in active status.
If
you are a resident of the state of Texas, you may designate a representative to
receive notifications that, due to inactivity, your mutual fund account assets
may be delivered to the Texas Comptroller. Please contact the Transfer
Agent if you wish to complete a Texas Designation of Representative
form.
|
|
| |
| DIVIDENDS
AND DISTRIBUTIONS |
Dividends
from net investment income, if any, are normally declared and paid by the Fund
typically in December. Capital gain distributions, if any, are also normally
made in December, but the Fund may make an additional payment of dividends or
capital gain distributions if it deems it desirable at another time during any
year.
All
distributions will be reinvested in Fund shares unless you choose one of the
following options:
(1) receive
dividends in cash while reinvesting capital gain distributions in additional
Fund shares;
(2) receive
capital gain distributions in cash while reinvesting dividends in additional
Fund shares; or
(3) receive
all distributions in cash. Distributions are taxable whether received in cash or
additional Fund shares.
If
you elect to receive any distributions paid in cash, and the U.S. Postal Service
cannot deliver the check, or if a check remains outstanding for six months, the
Fund reserves the right to reinvest the distribution check in your account, at
the Fund’s current NAV per share, and to reinvest all subsequent distributions.
If you wish to change your distribution option, notify the Transfer Agent in
writing or by telephone at least five days in advance of the payment date for
the distribution.
Any
dividend or capital gain distribution paid by the Fund has the effect of
reducing the NAV per share on the ex-dividend date by the amount of the dividend
or capital gain distribution. You should note that a dividend or capital gain
distribution paid on shares purchased shortly before that dividend or capital
gain distribution was declared will be subject to income taxes even though the
dividend or capital gain distribution represents, in an economic sense, a
partial return of capital to you.
The
Fund has elected and intends to continue to qualify to be taxed as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986, as
amended (the “Code”). As a regulated investment company, the Fund will not be
subject to federal income tax if it distributes its taxable income as required
by the tax law and satisfies certain other requirements that are described in
the SAI.
Distributions
made by the Fund will be taxable to shareholders whether received in shares
(through reinvestment) or in cash. Distributions derived from net investment
income, including net short-term capital gains, are taxable to shareholders as
ordinary income or, under current law, as qualified dividend income.
Distributions reported as capital gain dividends are taxable as long-term
capital gains regardless of the length of time shares of the Fund have been
held. There is no requirement that the Fund take into consideration any tax
implications when implementing its investment strategy. Shareholders should note
that the Fund may make taxable distributions of income and capital gains even
when share values have declined. Qualified dividend income, the amount of which
will be reported to you by the Fund, is taxed at a maximum federal rate of 20%.
The eligibility for qualified dividend tax rates depends on the underlying
investments of the Fund. Some or all of your distributions may not be eligible
for this preferential tax rate. A 3.8% surtax applies to net investment income
(which generally will include dividends and capital gains from an investment in
the Fund) of shareholders with adjusted gross income over $200,000 for single
filers and $250,000 for married joint filers. Although distributions are
generally taxable when received, certain distributions declared in October,
November, or December to shareholders of record on a specified date in such a
month but paid in January are taxable as if received the prior December. You
should consult your own advisor concerning federal, state and local taxation of
distributions from the Fund.
For
the taxable years beginning after 2017 and before 2025, non-corporate taxpayers
generally may deduct 20% of “qualified business income” derived either directly
or through partnerships or S corporations. For this purpose, “qualified business
income” generally includes ordinary dividends paid by a real estate investment
trust (“REIT”) and certain income from publicly traded partnerships. Regulations
recently adopted by the United States Treasury allow non-corporate shareholders
of a Fund to benefit from the 20% deduction with respect to net REIT dividends
received by the Fund if the Fund meets certain reporting requirements, but do
not permit any such deduction with respect to publicly traded
partnerships.
By
law, the Fund must withhold from your taxable distributions and redemptions
proceeds an amount as backup withholding determined at a rate set forth under
Section 3406 of the Code, if you do not provide your correct Social Security or
taxpayer identification number and certify that you are not subject to backup
withholding, or if the Internal Revenue Service instructs the Fund to do
so.
Sale
of your Fund shares is a taxable event for you. Depending on the purchase and
sale price of the shares you sell you may have a gain or a loss on the
transaction. You are responsible for any tax liabilities generated by your
transaction and your investment in the Fund. The Code limits the deductibility
of capital losses in certain circumstances.
Additional
information concerning the taxation of the Fund and its shareholders is
contained in the SAI. Tax consequences are not the primary consideration of the
Fund in making its investment decisions. You should consult your own tax advisor
concerning federal, state and local taxation of distributions from the
Fund.
Please
note that you cannot invest directly in an index. The figures presented in the
average annual total returns table reflect all dividends
reinvested.
The
S&P
1500®
Index
combines the S&P 500®
Index, the S&P MidCap 400®
Index,
and the S&P SmallCap 600®
Index. S&P 500®
Index is an unmanaged index considered representative of the U.S. stock market.
S&P MidCap 400®
Index
is an unmanaged index considered representative of mid-sized U.S. companies.
S&P SmallCap 600®
Index is a market-value weighted index considered representative of small-cap
U.S. stocks.
The
financial highlights tables below are intended to help you understand the Fund’s
financial performance for the period of the Fund’s operations. Certain
information reflects financial results for a single Fund share. The total
returns in the table represent the rate that an investor would have earned (or
lost) on an investment in the Fund (assuming reinvestment of all dividends and
distributions). This information has been audited by Tait, Weller & Baker
LLP, an independent registered public accounting firm, whose report, along with
the Fund’s financial statements, are included in the Fund’s annual
report,
which is available upon request.
Class
A
For
a share outstanding throughout each year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Year
Ended June 30, |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
|
| Net
asset value, beginning of year |
$27.65 |
| $32.80 |
| $24.99 |
| $25.26 |
| $26.01 |
|
|
|
|
|
|
|
|
|
|
|
| |
| Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
|
Net
investment income^ |
0.08 |
| 0.05 |
| 0.13 |
| 0.16 |
| 0.15 |
|
|
Net
realized and unrealized
gain/(loss)
on investments |
3.83 |
| (2.29) |
| 10.98 |
| 1.40 |
| 1.58 |
|
| Total
from investment operations |
3.91 |
| (2.24) |
| 11.11 |
| 1.56 |
| 1.73 |
|
|
|
|
|
|
|
|
|
|
|
| |
| Less
distributions: |
|
|
|
|
|
|
|
|
| |
| From
net investment income |
(0.07) |
| (0.07) |
| (0.13) |
| (0.15) |
| (0.36) |
|
| From
net realized gain on investments |
(2.89) |
| (2.84) |
| (3.17) |
| (1.68) |
| (2.12) |
|
| Total
distributions |
(2.96) |
| (2.91) |
| (3.30) |
| (1.83) |
| (2.48) |
|
|
|
|
|
|
|
|
|
|
|
| |
| Redemption
fees retained |
— |
| 0.00 |
^# |
— |
| — |
| 0.00 |
^# |
|
|
|
|
|
|
|
|
|
|
| |
| Net
asset value, end of year |
$28.60 |
| $27.65 |
| $32.80 |
| $24.99 |
| $25.26 |
|
|
|
|
|
|
|
|
|
|
|
| |
| Total
return |
14.98% |
| -8.10% |
| 47.29% |
| 6.20% |
| 7.71% |
|
|
|
|
|
|
|
|
|
|
|
| |
| Ratios/supplemental
data: |
|
|
|
|
|
|
|
|
| |
| Net
assets, end of year (thousands) |
$60,926 |
| $65,143 |
| $79,939 |
| $61,821 |
| $70,763 |
|
| Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
| |
| Before
fee waivers |
1.30% |
| 1.26% |
| 1.26% |
| 1.30% |
| 1.28% |
|
| After
fee waivers |
1.15% |
| 1.15% |
| 1.15% |
| 1.15% |
| 1.15% |
|
|
Ratio
of net investment income
to
average net assets: |
|
|
|
|
|
|
|
|
| |
| Before
fee waivers |
0.12% |
| 0.04% |
| 0.33% |
| 0.48% |
| 0.47% |
|
| After
fee waivers |
0.27% |
| 0.15% |
| 0.44% |
| 0.63% |
| 0.60% |
|
| Portfolio
turnover rate |
16.44% |
| 15.60% |
| 25.04% |
| 22.69% |
| 21.39% |
|
^ Based
on average shares outstanding.
# Amount
is less than $0.01 per share.
Class
I
For
a share outstanding throughout each year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Year
Ended June 30, |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
|
| Net
asset value, beginning of year |
$27.65 |
| $32.80 |
| $24.99 |
| $25.26 |
| $26.06 |
|
|
|
|
|
|
|
|
|
|
|
| |
| Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
| Net
investment income^ |
0.15 |
| 0.13 |
| 0.20 |
| 0.22 |
| 0.23 |
|
| Net
realized and unrealized gain/(loss) on investments |
3.83 |
| (2.29) |
| 10.98 |
| 1.41 |
| 1.55 |
|
| Total
from investment operations |
3.98 |
| (2.16) |
| 11.18 |
| 1.63 |
| 1.78 |
|
|
|
|
|
|
|
|
|
|
|
| |
| Less
distributions: |
|
|
|
|
|
|
|
|
| |
| From
net investment income |
(0.15) |
| (0.15) |
| (0.20) |
| (0.22) |
| (0.46) |
|
| From
net realized gain on investments |
(2.89) |
| (2.84) |
| (3.17) |
| (1.68) |
| (2.12) |
|
| Total
distributions |
(3.04) |
| (2.99) |
| (3.37) |
| (1.90) |
| (2.58) |
|
|
|
|
|
|
|
|
|
|
|
| |
| Redemption
fees retained |
— |
| 0.00 |
^# |
— |
| 0.00 |
^# |
— |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
asset value, end of year |
$28.59 |
| $27.65 |
| $32.80 |
| $24.99 |
| $25.26 |
|
|
|
|
|
|
|
|
|
|
|
| |
| Total
return |
15.28% |
| -7.87% |
| 47.65% |
| 6.47% |
| 7.96% |
|
|
|
|
|
|
|
|
|
|
|
| |
| Ratios/supplemental
data: |
|
|
|
|
|
|
|
|
| |
| Net
assets, end of year (thousands) |
$51,828 |
| $46,307 |
| $54,106 |
| $39,419 |
| $41,261 |
|
| Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
| |
| Before
fee waivers |
1.05% |
| 1.01% |
| 1.01% |
| 1.05% |
| 1.03% |
|
| After
fee waivers |
0.90% |
| 0.90% |
| 0.90% |
| 0.90% |
| 0.90% |
|
|
Ratio
of net investment income
to
average net assets: |
|
|
|
|
|
|
|
|
| |
| Before
fee waivers |
0.38% |
| 0.29% |
| 0.58% |
| 0.73% |
| 0.77% |
|
| After
fee waivers |
0.53% |
| 0.40% |
| 0.69% |
| 0.88% |
| 0.90% |
|
| Portfolio
turnover rate |
16.44% |
| 15.60% |
| 25.04% |
| 22.69% |
| 21.39% |
|
^ Based
on average shares outstanding.
# Amount
is less than $0.01 per share.
Investment
Advisor
Davidson
Investment Advisors, Inc.
Davidson
Building
8
Third Street North
Great
Falls, Montana 59401-3155
Independent
Registered Public Accounting Firm
Tait,
Weller & Baker LLP
Two
Liberty Place
50
South 16th Street, Suite 2900
Philadelphia,
Pennsylvania 19102
Legal
Counsel
Sullivan
& Worcester LLP
1633
Broadway, 32nd Floor
New
York, New York 10019
Custodian
U.S.
Bank National Association
Custody
Operations
1555
North RiverCenter Drive, Suite 302
Milwaukee,
Wisconsin 53212
Transfer
Agent, Fund Accountant and Fund Administrator
U.S.
Bank Global Fund Services
615
East Michigan Street
Milwaukee,
Wisconsin 53202
Distributor
Quasar
Distributors, LLC
111
East Kilbourn Avenue, Suite 2200
Milwaukee,
Wisconsin 53202
PRIVACY
NOTICE
The
Fund collects non-public information about you from the following
sources:
•Information
we receive about you on applications or other forms;
•Information
you give us orally; and/or
•Information
about your transactions with us or others.
We
do not disclose any non-public personal information about our customers or
former customers without the customer’s authorization, except as permitted by
law or in response to inquiries from governmental authorities. We may share
information with affiliated and unaffiliated third parties with whom we have
contracts for servicing the Fund. We will provide unaffiliated third parties
with only the information necessary to carry out their assigned
responsibilities. We maintain physical, electronic and procedural safeguards to
guard your non-public personal information and require third parties to treat
your personal information with the same high degree of
confidentiality.
In
the event that you hold shares of the Fund through a financial intermediary,
including, but not limited to, a broker-dealer, bank, or trust company, the
privacy policy of your financial intermediary would govern how your non-public
personal information would be shared by those entities with unaffiliated third
parties.
DAVIDSON
MULTI-CAP EQUITY FUND
A
series of Advisors Series Trust
www.davidsonmutualfunds.com
You
can find more information about the Fund in the following
documents:
Statement
of Additional Information
The
SAI provides additional details about the investments and techniques of the Fund
and certain other additional information. A current SAI is on file with the SEC
and is incorporated into this Prospectus by reference. This means that the SAI
is legally considered a part of this Prospectus even though it is not physically
within this Prospectus.
Annual
and Semi-Annual Reports
The
Fund’s annual and semi-annual reports (collectively, the “Shareholder Reports”)
provide the most recent financial statements and portfolio listings. The annual
report contains a discussion of the market conditions and investment strategies
that affected the Fund’s performance during the Fund’s last fiscal
year.
The
SAI and the Shareholder Reports are available free of charge on the Fund’s
website at www.davidsonmutualfunds.com.
You can obtain a free copy of the SAI and Shareholder Reports, request other
information, or make general inquires about the Fund by calling the Fund
(toll-free) at 1-877-332-0529 or by writing to:
DAVIDSON
FUNDS
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
Wisconsin 53201-0701
Reports
and other information about the Fund are also available:
•Free
of charge from the Commission’s EDGAR database on the Commission’s Internet
website at http://www.sec.gov;
or
|
|
| |
| (SEC
Investment Company Act file number is
811-07959.) |
APPENDIX
A
Financial
Intermediary Sales Charge Variations
The
availability of certain sales charge waivers and discounts will depend on
whether you purchase your shares directly from the Fund or through a financial
intermediary. Merrill Lynch has different policies and procedures regarding the
availability of front-end sales load waivers or contingent deferred (back-end)
sales load (“CDSC”) waivers, which are discussed below. 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.
Merrill
Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”)
Shareholders
purchasing Fund shares through a Merrill Lynch platform or account 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 this Fund’s prospectus or
SAI.
|
|
| |
| Front-end
Sales Load Waivers on Class A Shares available at Merrill
Lynch |
| 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 Lynch affiliated investment advisory
program |
| Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated
investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load
discounts and waivers |
| Shares
purchased by third party investment advisors on behalf of their advisory
clients through Merrill Lynch’s platform |
| [Shares
of funds purchased through the Merrill Edge Self-Directed platform] (if
applicable) |
| 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
exchanged from Class C (i.e.,
level-load) shares of the same fund pursuant to Merrill Lynch’s policies
relating to sales load discounts and waivers |
| Employees
and registered representatives of Merrill Lynch 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 the this prospectus |
|
Eligible
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). Automated transactions (i.e.,
systematic purchases and withdrawals) and purchases made after shares are
automatically sold to pay Merrill Lynch’s account maintenance fees are not
eligible for reinstatement |
| CDSC
Waivers on Class A Shares available at Merrill Lynch |
| 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 Internal Revenue Code |
| Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by
Merrill Lynch |
|
|
| |
| 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
(applicable to A and C shares only) |
| Shares
received through an exchange due to the holdings moving from a Merrill
Lynch affiliated investment advisory program to a Merrill Lynch brokerage
(non-advisory) account pursuant to Merrill Lynch’s policies relating to
sales load discounts and waivers |
| Front-end
load Discounts Available at Merrill Lynch: 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 fund family assets held by accounts
(including 529 program holdings, where applicable) within the purchaser’s
household at Merrill Lynch. Eligible fund family assets not held at
Merrill Lynch 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 a fund family, through Merrill Lynch, over a 13-month
period of time (if applicable) |
