ck0000030126-20221231
Each
of the funds has its own risk profile, so be sure to read this Prospectus
carefully before investing in any of the funds.
Mutual
funds are not bank accounts and are neither insured nor guaranteed by the FDIC
or any other government agency. An investment in any mutual fund entails the
risk of losing money.
INVESTMENT
OBJECTIVE:
The RMB Fund (the
“Fund”) seeks capital appreciation, mainly long term. Income is generally of
lesser importance, meaning that it is a secondary goal.
There can be no assurance that the Fund
will be successful in achieving its investment objective.
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FEES AND EXPENSES OF THE
FUND |
The
table below describes the fees and expenses you may pay if you buy, hold and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in
the Fund. More information about these and other discounts is
available from your financial intermediary and in the “Choosing
a Share Class” section
on page 51 of this prospectus, Appendix A to this prospectus, and the
“Purchase
and Redemption of Shares” section on page 29 of the Fund’s Statement
of Additional Information.
Fee
Table
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| Class
A |
Class
C |
Class
I |
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Shareholder
Fees
(fees
paid directly from your investment) |
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| Maximum
front-end sales charge on purchases (load) (as a % of offering
price) |
5.00% |
N/A |
N/A |
| Maximum
deferred sales charge (load) (as a % of offering price or the amount you
receive when you sell shares, whichever is less) |
N/A |
1.00% |
N/A |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
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| Management
fees |
0.60% |
0.60% |
0.60% |
| Distribution
and Shareholder Service (12b-1) fees |
0.25% |
1.00% |
N/A |
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| Other
expenses |
0.35% |
0.34% |
0.34% |
| Total
Annual Fund Operating Expenses |
1.20% |
1.94% |
0.94% |
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The first Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods, followed by an Example that assumes you
do not redeem your Class
C shares at the end of the periods. The
Examples also assume that your investment has a 5% return each year and that the
Fund’s operating expenses remain the same. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
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year |
3
years |
5
years |
10
years |
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Class
A |
$616 |
$862 |
$1,127 |
$1,882 |
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Class
C |
$297 |
$609 |
$1,047 |
$2,264 |
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Class
I |
$96 |
$300 |
$520 |
$1,155 |
You would
pay the following expenses if you did not redeem your shares:
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1
year |
3
years |
5
years |
10
years |
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Class
C |
$197 |
$609 |
$1,047 |
$2,264 |
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
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
18% of the average value of its
portfolio.
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PRINCIPAL INVESTMENT
STRATEGIES |
The
Fund pursues its investment objective by investing in a diverse portfolio
primarily consisting of common stocks of U.S. companies.
The
Fund generally invests in high quality companies of all market capitalizations
with a focus on businesses that have sustainable, long term competitive
advantages. Portfolio companies may range from small and mid-sized businesses
that are earlier in their growth life cycle, to larger more mature companies
that return capital to shareholders through increasing dividend payments and
share buy-backs. High quality companies are generally defined as companies with
product leadership, that have potential for sustained operating and revenue
growth and that are run by strong management teams that allocate shareholder
capital wisely and align their economic interests with shareholders. The Fund
employs a long-term approach when selecting stocks and seeks to own businesses
that have durable franchises that can weather the ups and downs of volatile
business cycles.
From
time to time, the Fund may invest in companies that are experiencing unusual and
possibly unique developments. Potential investments in the stock of these
companies are usually the result of companies uncovered in the research process
that do not meet the criteria employed by the Fund but may have opportunities
for significant returns. These companies are deemed “special situations.”
Special situations include companies going through reorganizations,
recapitalizations, mergers, spin-offs, or facing resolutions of litigation,
management team changes, or important technological improvements or discoveries.
The Fund’s investment strategy seeks to
build wealth over time by purchasing the stock of high quality growth companies
that are deemed to be trading below their intrinsic value. The Fund’s portfolio
is constructed on a stock by stock basis. Position sizes are determined based on
current portfolio characteristics, valuation, the risk/reward profile and
confidence in the company. The Fund may consider larger macro-economic trends,
and will occasionally pursue investment themes across multiple holdings, when
constructing the portfolio. The Fund seeks to manage risk by diversifying its
holdings across sectors and industries. The Fund typically owns 30-40 stocks
which is intended to allow for enough diversification to minimize risk, but
enough concentration to allow the highest conviction ideas to impact the
portfolio. A position will be sold if a core tenet for ownership has been
violated, if valuation discounts substantially all of the upside of a company,
or if a better use of capital presents itself.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
objective. The Fund’s share price fluctuates, which means you could lose money
by investing in the Fund. The Fund is not a complete investment program and
should be considered only as part of an investment portfolio. The principal
risks of investing in the Fund are summarized below:
Any of the following situations could cause the Fund to
lose money or underperform in comparison with its peer group:
•Market
Risk
— This is the risk that the price of a security will fall due to changing
economic, political or market conditions that are not specifically related to a
particular company. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues,
recessions, natural disasters, or other events could have a significant impact
on the Fund and its investments. The market value of a security or instrument
also may decline because of factors that affect a particular sector, sub-sector,
or group of industries, such as labor shortages or increased production costs
and competitive conditions within an industry. The risk would be greater if any
of the categories of securities that the Fund emphasizes fell out of favor with
the market.
•Equity
Securities Risk
— The risk that the market price of common stocks and other equity securities,
including preferred stocks, warrants and rights, may go up or down, sometimes
rapidly or unpredictably, including due to
factors
affecting equity securities markets generally, particular industries represented
in those markets, or the issuer itself. Companies in the Fund’s portfolio could
fail to achieve earnings estimates or other market expectations, causing their
stock prices to drop.
•Management
Risk
— The Fund is subject to management risk because it is an actively managed
investment portfolio. The adviser will apply its investment techniques and risk
analyses in making investment decisions for the Fund, but there is no guarantee
that its decisions will produce the intended result. The Fund’s management
strategy or security selection methods could prove less successful than
anticipated or unsuccessful. This risk is common for all actively managed funds.
Individual stocks selected by the adviser may decline in value or not increase
in value, even when the stock market in general is rising.
•Large-Cap
Companies Risk
— Larger, more established companies may be unable to respond quickly to new
competitive challenges, such as changes in consumer tastes or innovative smaller
competitors. Also, large-cap companies are sometimes unable to attain the high
growth rates of successful, smaller companies, especially during extended
periods of economic expansion.
•Dividend
Risk
— This is the risk that an issuer of stock held by the Fund may choose not to
declare a dividend or the dividend rate might not remain at current levels.
Dividend paying stocks might not experience the same level of earnings growth or
capital appreciation as non-dividend paying stocks. The Fund’s performance
during a broad market advance could suffer because dividend paying stocks may
not experience the same capital appreciation as non-dividend paying stocks.
•Small-
and Mid-Cap Companies Risk
— The Fund may invest in the securities of companies with small- and
mid-capitalizations, which can involve greater risk and the possibility of
greater portfolio volatility than investments in securities of
large-capitalization companies. Historically, stocks of small- and
mid-capitalization companies and recently organized companies have been more
volatile in price than those of the larger market capitalization companies.
Among the reasons for the greater price volatility is the lower degree of
liquidity in the markets for such stocks. Small- and mid-capitalization
companies may have limited product lines and financial resources and may depend
upon a limited or less experienced management group. The securities of
small-capitalization companies trade in the over-the-counter markets or on
regional exchanges and may not be traded daily or in the volume typical of
trading on a national securities exchange, which may make these securities more
difficult to value and to sell.
•Growth
Investing Risk
— Growth stocks may fall out of favor with investors and underperform other
asset types during given periods. A company may never achieve the earnings
growth the team anticipated.
•Special
Situations Risk
— The Fund will seek to benefit from “special situations,” such as mergers,
reorganizations, or other unusual events expected to affect a particular issuer.
There is a risk that the “special situation” might not occur or involve longer
time frames than originally expected, which could have a negative impact on the
price of the issuer’s securities and fail to produce gains or produce a loss for
the Fund.
The bar chart
and table below provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns for 1, 5 and 10 years compare with
those of a broad measure of market performance. The Fund’s
performance figures assume that all distributions were reinvested in the Fund
and reflect the Fund’s operating expenses. Returns shown for periods prior to
July 1, 2016 were generated under the management of the Fund’s former investment
adviser.
The
returns in the bar chart do not include the effect of Class A shares’ front-end
sales charges. These figures would be lower if
they reflected such sales charges. The returns in the performance table
reflect any applicable sale charges. Bear in mind that past
performance (before and after taxes) is not a guarantee of future
performance. Updated performance information may be obtained on
the Fund’s website at www.rmbfunds.com
or by calling 1-800-462-2392.
RMB Fund – Return for Class A Shares
Best Quarter:
22.00% in 2nd
Quarter of 2020
Worst Quarter:
-23.73% in 1st
Quarter of 2020
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Average
Annual Total Returns (For
the following periods ended 12/31/2022) |
1
year |
5
years |
10
years |
| CLASS
A SHARES |
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| Total Return Before
Taxes |
-25.14% |
8.50% |
9.79% |
| Total Return After Taxes on
Distributions |
-26.65% |
6.98% |
7.09% |
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Total
Return After Taxes on Distributions and Sale of Fund Shares1 |
-13.71% |
6.63% |
7.33% |
| CLASS
C SHARES |
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| Total Return Before
Taxes |
-22.51% |
8.80% |
9.52% |
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CLASS
I SHARES2 |
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| Total Return Before
Taxes |
-21.02% |
9.88% |
10.51% |
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S&P
500® Index (total return)3
(reflects no deduction of
fees, expenses or taxes) |
-18.11% |
9.42% |
12.56% |
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Russell
3000® Index (total return)3
(reflects
no deduction of fees, expenses or taxes) |
-19.21% |
8.79% |
12.13% |
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1The “The Total Return
After Taxes on Distributions and Sale of Fund Shares” can be higher than other
return figures when a capital loss occurs upon the redemption of Fund shares. If
realized losses occur upon the sale of Fund shares, the capital loss is recorded
as a tax benefit, which increases the
return.
2Class I
shares commenced investment operations on February 1,
2017. Performance shown prior to
February 1, 2017 for the Class I shares reflects the performance of Class A
shares, excluding
the front-end sales charge that is applicable to Class A shares but not
applicable to Class I shares. Class I shares are also not
subject to the distribution and shareholder service (12b-1) fees applicable to
Class A shares, which reduce the performance shown for the Class I shares
prior
to February 1, 2017.
3The “Total Return” of the
index reflects reinvestment of dividends in the
index.
After-tax returns are
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. After-tax
returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). The after-tax returns are
shown only for Class A shares; after-tax returns for Class C and Class I shares
will vary.
The
Fund is advised by RMB Capital Management, LLC (the “Adviser”).
Todd
Griesbach, CFA has had primary day-to-day responsibility for the Fund’s
portfolio since July 2016. Mr. Griesbach is a Senior Vice President and
Portfolio Manager of the Adviser.
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PURCHASE
AND SALE OF FUND SHARES |
You
may purchase or redeem Fund shares on any day that the Fund is open for business
by sending a written request by mail (RMB Investors Trust, c/o BNY Mellon Asset
Servicing, P.O. Box 534464,
Pittsburgh, Pennsylvania 15253-4464),
by telephone (BNY Mellon Asset Servicing, 1-800-462-2392), or through certain
financial intermediaries.
The
table below sets forth the minimum initial and subsequent purchase amounts
required for each share class and certain types of shareholder accounts.
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| Minimum
Initial Investment |
Minimum
Subsequent Investment |
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| Class
A and C |
Class
I |
Class
A and C |
Class
I |
| Regular
Account |
$2,500 |
$100,000 |
$500 |
$25,000 |
| Automatic
Investment Program, IRA and minor custodial account |
$100 |
$100,000 |
$50 |
$25,000 |
For
additional information about purchase and sale of Fund shares, please turn to
“How
to Buy Shares”
in this Prospectus.
The
Fund’s distributions are taxable and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-advantaged arrangement, such as a
401(k) plan or individual retirement account. Such tax-advantaged arrangements
may be taxed later upon a withdrawal from those arrangements.
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FINANCIAL
INTERMEDIARY COMPENSATION |
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank or financial advisor), the Fund and/or its Adviser 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 sales person to recommend the Fund over another
investment. Ask your salesperson or visit your financial intermediary’s website
for more information.
INVESTMENT OBJECTIVE:
The RMB Mendon
Financial Services Fund (the “Fund”) seeks capital appreciation.
There can be no assurance that the Fund
will be successful in achieving its investment objective.
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FEES AND EXPENSES OF THE
FUND |
The
table below describes the fees and expenses you may pay if you buy, hold and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in
the Fund. More information about these and other discounts is
available from your financial intermediary and in the “Choosing
a Share Class” section
on page 51 of this prospectus, Appendix A to this prospectus, and the
“Purchase
and Redemption of Shares” section on page 29 of the Fund’s Statement
of Additional Information.
Fee
Table
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| Class
A |
Class
C |
Class
I |
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Shareholder
Fees
(fees
paid directly from your investment) |
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| Maximum
front-end sales charge on purchases (load) (as a % of offering
price) |
5.00% |
N/A |
N/A |
| Maximum
deferred sales charge (load) (as a % of offering price or the amount you
receive when you sell shares, whichever is less) |
N/A |
1.00% |
N/A |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
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| Management
fees |
0.75% |
0.75% |
0.75% |
| Distribution
and Shareholder Service (12b-1) fees |
0.25% |
1.00% |
N/A |
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| Other
expenses |
0.29% |
0.29% |
0.29% |
| Acquired
fund fees and expenses |
0.21% |
0.21% |
0.21% |
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Total
Annual Fund Operating Expenses1 |
1.50% |
2.25% |
1.25% |
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1Total Annual Fund
Operating Expenses do not correlate to the Ratio of Total Expenses to Average
Net Assets in the Financial Highlights section of the statutory prospectus,
which reflects the operating expenses of the Fund and does not include acquired
fund fees and expenses (“AFFE”).
These Examples are
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds. The first Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods, followed by an Example that assumes you do
not redeem your Class C shares at the end of the periods. The Examples also
assume that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
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Class
A |
$645 |
$950 |
$1,278 |
$2,201 |
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Class
C |
$328 |
$703 |
$1,205 |
$2,585 |
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Class
I |
$127 |
$397 |
$686 |
$1,511 |
You would
pay the following expenses if you did not redeem your shares:
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1
year |
3
years |
5
years |
10
years |
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Class
C |
$228 |
$703 |
$1,205 |
$2,585 |
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 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 42% of the average value of its
portfolio.
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PRINCIPAL INVESTMENT
STRATEGIES |
The
Fund pursues its investment objective by investing, under normal circumstances,
at least 80% of its net assets (plus any borrowings for investment purposes) in
stocks of U.S. companies that are in the financial services industry. The Fund
includes the market value of derivatives that provide exposure to the financial
services industry in determining compliance with the Fund’s 80% investment
policy. The Fund may invest in companies of any size, but, under normal
conditions, the Fund invests primarily in mid-, small- and micro-capitalization
financial services companies. For
this purpose, the Fund defines a mid-, small-, and micro-capitalization company
as any company with a market capitalization within the range of the market
capitalizations of the constituents of the NASDAQ Bank Index, which as of March
31, 2023 ranged from $17 million to $18.1 billion.
For purposes of selecting investments, the Fund defines the financial services
industry broadly. It includes (but is not limited to) the following:
•Banks
•Insurance
companies
•Consumer
and commercial finance companies
•Securities
brokerage firms and electronic trading networks
•Investment
management and advisory firms
•Financial
conglomerates
•Financial
technology companies
Ordinarily,
the Fund’s portfolio will be invested primarily in common stocks. In selecting
stocks, the Fund’s sub-adviser uses a combination of growth and value style
investment criteria. Growth criteria include such items as capable management,
attractive business niches, sound financial and accounting practices and/or
demonstrated ability to sustain growth in revenues, earnings and cash flow.
Value criteria include companies that appear to be undervalued based on their
balance sheets or individual circumstances, temporarily distressed, or poised
for a merger or acquisition.
The
Fund may also invest in companies that may experience unusual and possibly
unique developments, or “special situations,” which may create a special
opportunity for significant returns. Special situations include: significant
technological improvements or discoveries; reorganizations, recapitalizations or
mergers; favorable resolutions of litigation; new management or material changes
in company policies; and actual or potential changes in control of a company.
These companies are deemed “special situations.” Special situations include
companies going through reorganizations, recapitalizations, mergers, spin-offs
or facing resolutions of litigation, management team changes or important
technological improves or discoveries.
The
portfolio manager constructs the Fund’s portfolio using both a top-down and
bottom-up analysis. Examples of top-down analysis include the study of interest
rates, credit trends and other macroeconomic factors that broadly affect the
financial services industry. Examples of bottom-up analysis include industry
screens, sell-side company research reports, company models and other
fundamental research that are used to construct the Fund’s portfolio on a
stock-by-stock basis. The sub-adviser attempts to identify how various financial
services sub-sectors and the individual companies therein will move in reaction
to market events. Each potential investment is evaluated by weighing its
potential for gain against its associated risks. Because of the way the
sub-adviser constructs the Fund’s portfolio, there may be times when the Fund’s
investments are focused in one or more financial services sub-sectors and/or a
limited number of regions of the U.S.
The
Fund may sell securities for a variety of reasons, such as to secure gains,
limit losses or redeploy assets into other opportunities.
The
Fund may also use futures and options on securities, indices and other
derivatives (a type of instrument whose value is determined by reference to the
value or the change in value of one or more securities, indices or other
financial instruments) to hedge against market changes or as a substitute for
securities transactions. It may also use derivatives in attempts to profit from
anticipated market and security movements. The Fund will limit its derivatives
exposure to 10% of its net assets. The Fund
expects that its primary investments in derivatives will be in written covered
call options and long call options. As the writer of a covered call option, the
Fund forgoes, during the option’s life, the opportunity to profit from increases
in the market value of the security covering the call option above the sum of
the premium and the strike price of the call, but has retained the risk of loss
should the price of the underlying security decline. Long call option purchases
allow the option holder to be exposed to the general market characteristics of a
security without the outlay of capital necessary to own the
security.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
objective. The Fund’s share price fluctuates, which means you could
lose money by investing in the Fund. The Fund is not a complete
investment program and should be considered only as part of an investment
portfolio. The principal risks of investing in the Fund are summarized below:
•Market
Risk
— This is the risk that the price of a security will fall due to changing
economic, political or market conditions that are not specifically related to a
particular company. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues,
recessions, natural disasters, or other events could have a significant impact
on the Fund and its investments. The market value of a security or instrument
also may decline because of factors that affect a particular sector, sub-sector,
or group of industries, such as labor shortages or increased production costs
and competitive conditions within an industry. The risk would be greater if any
of the categories of securities that the Fund emphasizes fell out of favor with
the market.
•Equity
Securities Risk
— The risk that the market price of common stocks and other equity securities,
including preferred stocks, warrants and rights, may go up or down, sometimes
rapidly or unpredictably, including due to factors affecting equity securities
markets generally, particular industries represented in those markets, or the
issuer itself. Companies in the Fund’s portfolio could fail to achieve earnings
estimates or other market expectations, causing their stock prices to drop.
•Financial
Services Risk
— A fund that focuses its investments in specific industries or sectors is more
susceptible to developments affecting those industries and sectors than a more
broadly diversified fund would be. Because the Fund invests significantly in
financial services companies, the Fund may perform poorly during a downturn in
the financial services industry. The financial services industry can be
significantly affected by changes in interest rates, the rate of corporate and
consumer debt defaults, the availability and cost of borrowing and raising
capital, reduced credit market liquidity, regulatory changes, price competition,
bank failures and other financial crises, and general economic and market
conditions. Changing interest rates could reduce the profitability of certain
types of companies in the financial services industry. Financial services
companies may have concentrated portfolios, such as a high level of loans to one
or more industries or sectors, which makes them vulnerable to economic
conditions that affect such industries or sectors. Significant events, such as
the COVID-19 pandemic may have a significant negative impact on economies and
financial markets worldwide, resulting in higher debt defaults, loan write-offs,
and government intervention, historically low interest rates, and potentially
the failure of some financial institutions, each of which would reduce
investment performance of financial services companies held by the Fund.
•Management
Risk
— The Fund is subject to management risk because it is an actively managed
investment portfolio. The adviser will apply its investment techniques and risk
analyses in making investment decisions for the Fund, but there is no guarantee
that its decisions will produce the intended result. The Fund’s management
strategy or security selection methods could prove less successful than
anticipated or unsuccessful. This risk is common for all actively managed funds.
Individual stocks selected by the adviser may decline in value or not increase
in value, even when the stock market in general is rising.
•Derivatives
Risk
—
The
use of derivatives presents risks different from, and possibly greater than, the
risks associated with investing directly in traditional securities as well as
increased transaction costs. The use of derivatives can lead to losses because
of adverse movements in the price or value of the underlying asset, reference
rate or index. Also, a liquid market may not always exist for the Fund’s
derivative positions at times when the Fund might wish to terminate or sell such
positions.
•Call
and Put Options Risk
— A call option obligates the writer (or seller) of the option to sell a
specified asset to the holder of the option at a specified price when the holder
exercises the option prior to expiration. A put option obligates the writer (or
seller) of the option to buy a specified asset from the holder of the option at
a specified price when the holder exercises the option prior to expiration.
Writing covered call options may deprive the Fund of the opportunity to profit
from an increase in the market price of the
reference
asset. Writing covered put options may subject the Fund to a decrease in the
market price of the reference asset. Purchasing an option subjects the buyer to
the risk that the benefit received from exercising the option, if any, will not
exceed the premium paid to purchase the option. Options are wasting assets and
expire, and as a result can expose the Fund to significant loss. The Fund will
have no control over the exercise of the call options it writes and therefore
may be forced to realize capital gains or losses at inopportune times.
•Futures
Risk
— The risk of loss in trading futures contracts and in writing futures options
can be substantial because of the low margin deposits required, the extremely
high degree of leverage involved in futures and options pricing, and the
potential high volatility of the futures markets. As a result, a relatively
small price movement in a futures position may result in immediate and
substantial loss (or gain) for the Fund, and losses could exceed the amount
invested in the position. The Fund bears the risk that the adviser will
incorrectly predict future market trends. If the adviser attempts to use a
futures contract or a futures option as a hedge against, or as a substitute for,
a portfolio investment, the Fund will be exposed to the risk that the futures
position will have or will develop imperfect or no correlation with the
portfolio investment. This could cause substantial losses for the Fund. The Fund
could suffer losses if it is unable to close out a futures contract or a futures
option because of an illiquid secondary market, and there can be no assurance
that a liquid secondary market will exist for any particular futures product at
any specific time.
•Small-
and Mid-Cap Companies Risk
— The Fund may invest in the securities of companies with small- and
mid-capitalizations, which can involve greater risk and the possibility of
greater portfolio volatility than investments in securities of
large-capitalization companies. Historically, stocks of small- and
mid-capitalization companies and recently organized companies have been more
volatile in price than those of the larger market capitalization companies.
Among the reasons for the greater price volatility is the lower degree of
liquidity in the markets for such stocks. Small- and mid-capitalization
companies may have limited product lines and financial resources and may depend
upon a limited or less experienced management group. The securities of
small-capitalization companies trade in the over-the-counter markets or on
regional exchanges and may not be traded daily or in the volume typical of
trading on a national securities exchange, which may make these securities more
difficult to value and to sell.
•Growth
Investing Risk
— Growth stocks may fall out of favor with investors and underperform other
asset types during given periods. A company may never achieve the earnings
growth the adviser anticipated.
•Value
Investing Risk
— Value stocks may not increase in price, may not issue the anticipated stock
dividends or may decline in price, based upon the market’s belief of the
issuer’s intrinsic worth.
•Micro-Cap
Companies Risk
— Micro-cap companies may be less financially secure than large, mid or small
capitalization companies. Micro-cap companies may be in the early stage of
development or newly formed with limited markets or product lines. There may
also be less public information about micro-cap companies. In addition,
micro-cap companies that rely on smaller management teams may be vulnerable to
key personnel losses. Micro-cap stock prices also may be more volatile than
large, mid or small-cap stocks, may have lower trading volume and lower degree
of liquidity which makes these securities difficult to value and to sell. The
securities of micro-cap companies may not be traded daily. As a result, some of
the Fund’s holdings may be considered or become illiquid.
•Special
Situations Risk — The Fund will seek to benefit from
“special situations,” such as mergers, reorganizations, or other unusual events
expected to affect a particular issuer. There is a risk that the “special
situation” might not occur or involve longer time frames than originally
expected, which could have a negative impact on the price of the issuer’s
securities and fail to produce gains or produce a loss for the
Fund.
The bar chart
and table below provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns for 1, 5 and 10 years compare with those
of a broad measure of market performance. The Fund’s performance
figures assume that all distributions were reinvested in the Fund and reflect
the Fund’s operating expenses.
The
returns in the bar chart do not include the effect of Class A shares’ front-end
sales charges. These figures would be lower if
they reflected such sales charges. The returns in the performance table reflect
any applicable sales charges. Bear in mind that past
performance (before and after taxes) is not a guarantee of future
performance. Updated performance information may be obtained on
the Fund’s website at www.rmbfunds.com
or by calling 1-800-462-2392.
RMB Mendon Financial Services Fund – Return for Class
A Shares
Best Quarter:
44.15% in the 4th
Quarter of 2020
Worst Quarter:
-42.59% in the 1st
Quarter of 2020
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|
|
|
|
|
|
|
|
| |
|
Average
Annual Total Returns
(For the following periods ended
12/31/2022) |
1
year |
5
years |
10
years |
| CLASS
A SHARES |
|
| |
| Total Return Before
Taxes |
-23.05% |
2.95% |
11.78% |
| Total Return After Taxes on
Distributions |
-25.78% |
1.82% |
10.78% |
|
Total
Return After Taxes on Distributions and Sale of Fund Shares3 |
-11.76% |
2.19% |
9.67% |
| CLASS
C SHARES |
|
| |
| Total Return Before
Taxes |
-20.27% |
3.23% |
11.52% |
|
CLASS
I SHARES1 |
|
| |
| Total Return Before
Taxes |
-18.80% |
4.27% |
12.61% |
|
NASDAQ
Bank Index Total Return2
(reflects no deduction of
fees, expenses or taxes) |
-16.28% |
2.90% |
10.51% |
|
|
|
| |
1.Class I shares
commenced investment operations on February 1,
2017. Performance shown prior to
February 1, 2017 for the Class I shares reflects the performance of Class A
shares, excluding the front-end sales charge that is applicable to Class A
shares but not applicable to Class I shares. Class I shares are also not subject
to the distribution and shareholder service (12b-1) fees applicable to Class A
shares, which reduce the performance shown for the Class I shares prior to
February 1, 2017.
2.“Total return” of the
index reflects reinvestment of dividends in the
index.
3.The “Total Return After
Taxes on Distributions and Sale of Fund Shares” can be higher than other return
figures when a capital loss occurs upon the redemption of Fund Shares. If
realized losses occur upon the sale of Fund shares, the capital loss is recorded
as a tax benefit, which increases the return.
After-tax returns are
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. After-tax
returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans or IRAs.
The after-tax returns are
shown only for Class A shares; after-tax returns for Class C and Class I shares
will vary.
The
Fund is advised by RMB Capital Management, LLC (the “Adviser”).
Mendon
Capital Advisors Corp. (“Mendon”) is the Fund’s sub-adviser.
Anton
Schutz and Dan Goldfarb are primarily responsible for the day-to-day management
of the Fund's portfolio. Mr. Schutz is President and Senior Portfolio Manager of
Mendon, and he has served as portfolio manager of the Fund since its inception
in 1999. Mr. Goldfarb is a Portfolio Manager of Mendon and has served as
portfolio manager of the Fund since May 2022.
|
|
| |
|
PURCHASE
AND SALE OF FUND SHARES |
You
may purchase or redeem Fund shares on any day that the Fund is open for business
by sending a written request by mail (RMB Investors Trust, c/o BNY Mellon Asset
Servicing, P.O. Box 534464,
Pittsburgh, Pennsylvania 15253-4464),
by telephone (BNY Mellon Asset Servicing, 1-800-462-2392), or through certain
financial intermediaries.
The
table below sets forth the minimum initial and subsequent purchase amounts
required for each share class and certain types of shareholder accounts.
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|
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|
|
|
|
|
|
| |
|
| Minimum
Initial Investment |
Minimum
Subsequent Investment |
|
| Class
A and C |
Class
I |
Class
A and C |
Class
I |
| Regular
Account |
$2,500 |
$100,000 |
$500 |
$25,000 |
| Automatic
Investment Program, IRA and minor custodial account |
$100 |
$100,000 |
$50 |
$25,000 |
For
additional information about purchase and sale of Fund shares, please turn to
“How
to Buy Shares”
in this prospectus.
The
Fund’s distributions are taxable and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-advantaged arrangement, such as a
401(k) plan or individual retirement account. Such tax-advantaged arrangements
may be taxed later upon a withdrawal from those arrangements.
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| |
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FINANCIAL
INTERMEDIARY COMPENSATION |
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank or financial advisor), the Fund and/or its Adviser 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 sales person to recommend the Fund over another
investment. Ask your salesperson or visit your financial intermediary’s website
for more information.
INVESTMENT
OBJECTIVE:
The RMB
International Fund (the “Fund”) seeks long-term capital appreciation.
There can be no assurance that the Fund
will be successful in achieving its investment objective.
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| |
|
FEES AND EXPENSES OF THE
FUND |
The
table below describes the fees and expenses you may pay if you buy, hold and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the Fee Table or the Example
below.
Fee
Table
|
|
|
|
|
|
|
|
| |
|
| Investor
Class |
Class
I |
|
Shareholder
Fees
(fees
paid directly from your investment) |
| |
| Maximum
front-end sales charge (load) on purchases |
None |
None |
| Maximum
deferred sales charge (load) |
None |
None |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
| |
| Management
fees |
0.75% |
0.75% |
| Distribution
and Shareholder Service (12b-1) fees |
0.25% |
None |
| Other
expenses |
0.21%¹ |
0.21% |
|
|
| |
|
Total
Annual Fund Operating Expenses2 |
1.21% |
0.96% |
1 Investor Class shares of the Fund
are not currently offered for purchase. As a result, “Other Expenses” for
Investor Class shares have been estimated.
2
Total Annual Fund
Operating Expenses do not correlate to the Ratio of Total Expenses to Average
Net Assets in the Financial Highlights section of the statutory prospectus,
which reflects the operating expenses of the Fund and does not include acquired
fund fees and expenses (“AFFE”).
The 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 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. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
|
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|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Investor
Class |
$123 |
$384 |
$665 |
$1,466 |
|
Class
I |
$98 |
$306 |
$531 |
$1,178 |
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
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
30% of the average value of its
portfolio.
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|
| |
|
PRINCIPAL INVESTMENT
STRATEGIES |
The
Fund pursues its investment objective by investing, under normal conditions, in
at least three different countries and at least 40% of its total assets in
securities of non-U.S. issuers organized or having their principal place of
business outside the U.S. or doing a substantial amount (more than 50%) of
business outside the U.S. Investments in exchange-traded funds (“ETFs”) based on
non-U.S. market indices are considered investments outside the U.S. for purposes
of the 40% requirement noted above.
The
Fund’s non-U.S. investments will be primarily in developed markets, but the Fund
may invest in emerging markets. As of the date of this Prospectus, the Fund’s
investment adviser believes that developed markets outside the United States
include, but may not be limited to, the following: Austria, Australia, Belgium,
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy,
Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland and the United Kingdom. The Fund considers emerging markets to be
markets located in countries classified as emerging or frontier markets by MSCI,
and are generally located in the AsiaPacific region, Eastern Europe, the Middle
East, Central and South America and Africa. There are no geographic limits on
the Fund’s non-U.S. investments.
The
Fund may invest in companies of any size, but primarily invests in mid-and
large-capitalization companies and targeting a balanced allocation across this
market capitalization spectrum. For
this purpose, the Fund defines a mid- and large-capitalization company as any
company with a market capitalization within the range of the market
capitalizations of the constituents of the MSCI EAFE Index, which as of March
31, 2023 had a market capitalization range from $1.4 billion to $335.5
billion.
At times the Fund may increase the relative emphasis of its investments in a
particular region, country, sector, industry or other segment of the market.
The
Fund primarily invests in equity securities, including common stocks, preferred
stocks, warrants and other rights, and securities convertible into or
exchangeable for common stocks. The Fund may also invest in real estate
investment trusts (“REITs”), depositary receipts, including American, European
and Global Depositary Receipts. The Fund’s investments may be hedged or unhedged
to foreign currencies depending on the market opportunities.
The
adviser uses a fundamental, bottom up approach to identify what it believes are
quality companies, as evidenced by the durability of the company’s business
model (strong competitive advantages and high barriers to entry), the company’s
financial strength (greater returns on capital, free cash flow generation,
healthy balance sheets), the presence of long-term growth, and value-accretive
management teams.
From
time to time the Fund may invest in companies that are experiencing unusual and
possibly unique developments. Potential investments in the stock of these
companies are usually the result of companies uncovered in the research process
that are otherwise outside of the standard investment criteria employed by the
Fund, but may have opportunities for significant returns. These companies are
deemed “special situations”. Special situations include companies going through
reorganizations, recapitalizations, mergers, spin-offs, or facing resolutions of
litigation, management team changes, or important technological improvements or
discoveries.
The
Fund will buy such quality companies when the adviser believes their
fundamentals are mispriced relative to their long-term potential and when their
stock prices reflect reasonable valuations.
The Fund will sell companies when
fundamentals deteriorate, thus impairing the long-term quality of the business;
when the market price exceeds the adviser’s estimate of intrinsic value; when
the adviser’s investment thesis supporting its decision to purchase and hold the
company is no longer valid; and/or when the adviser believes a more attractive
risk/reward opportunity exists.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
objective. The Fund’s share price fluctuates, which means you could
lose money by investing in the Fund. The Fund is not a complete
investment program and should be considered only as part of an investment
portfolio. The principal risks of investing in the Fund are summarized below:
•Market
Risk
— This is the risk that the price of a security will fall due to changing
economic, political or market conditions, that are not specifically related to a
particular company. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues,
recessions, natural disasters, or other events could have a significant impact
on the Fund and its investments. The market value of a security or instrument
also may decline because of factors that affect a particular sector, sub-sector,
or group of industries, such as labor shortages or increased production costs
and competitive conditions within an industry. The risk would be greater if any
of the categories of securities that the Fund emphasizes fell out of favor with
the market.
•Foreign
Investing Risk
— Foreign securities may underperform U.S. securities and may be more volatile
than U.S. securities. Risks relating to investments in foreign securities
(including, but not limited to, depositary receipts and participation
certificates) and to securities of issuers with significant exposure to foreign
markets include currency exchange rate fluctuation; less available public
information about the issuers of securities; less stringent regulatory
standards; lack of uniform accounting, auditing and financial reporting
standards; imposition of foreign withholding and other taxes; country risks,
including less liquidity, high inflation rates and unfavorable economic
practices; and political instability and expropriation and nationalization
risks.
•Equity
Securities Risk
— The risk that the market price of common stocks and other equity securities,
including preferred stocks, warrants and rights, may go up or down, sometimes
rapidly or unpredictably, including due to factors affecting equity securities
markets generally, particular industries represented in those markets, or the
issuer itself. Companies in the Fund’s portfolio could fail to achieve earnings
estimates or other market expectations, causing their stock prices to drop.
•Management
Risk
— The Fund is subject to management risk because it is an actively managed
investment portfolio. The adviser will apply its investment techniques and risk
analyses in making investment decisions for the Fund, but there is no guarantee
that its decisions will produce the intended result. The Fund’s management
strategy or security selection methods could prove less successful than
anticipated or unsuccessful. This risk is common for all actively managed funds.
Individual stocks selected by the adviser may decline in value or not increase
in value, even when the stock market in general is rising.
•Emerging
Markets Risk —
Investment risks typically are greater in emerging and less developed markets.
For example, in addition to the risks associated with investments in any foreign
country, political, legal and economic structures in these less developed
countries may be new and changing rapidly, which may cause instability and
greater risk of loss. Emerging markets may be less developed, and securities in
emerging markets are generally more volatile and less liquid than those in the
developed markets. Investing in emerging market countries may involve
substantial risk due to, among other reasons, limited issuer information; higher
brokerage costs; different and less stringent accounting, auditing and financial
reporting standards; less developed legal systems and thinner trading markets as
compared to those in developed countries; different clearing and settlement
procedures and custodial services; and currency blockages or transfer
restrictions. Emerging market countries also are more likely to experience high
levels of inflation, deflation or currency devaluations, which could hurt their
economies and securities markets. Certain emerging markets also may face other
significant internal or external risks, including a heightened risk of war or
ethnic, religious or racial conflicts. In addition, governments in many emerging
market countries participate to a significant degree in their economies and
securities markets, which may impair investment and economic growth of companies
in those markets. Such markets may also be heavily reliant on foreign capital
and, therefore, vulnerable to capital flight.
•Depositary
Receipts Risk — The
Fund’s investments in depositary receipts include American Depositary Receipts
(“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts
(“EDRs”). ADRs are receipts issued by U.S. banks evidencing ownership in
securities of foreign issuers, and GDRs and EDRs are receipts issued by banks in
more than one country evidencing ownership in securities of foreign issuers.
Although depositary receipts have risks similar to the foreign securities that
they represent, they may also involve higher expenses and may trade at a
discount (or premium) to the underlying security. In addition, depositary
receipts may not pass through voting and other shareholder rights, and may be
less liquid than the underlying securities listed on an exchange.
•Currency
Risk
— Foreign securities usually are denominated and traded in foreign currencies
and the exchange rates between foreign currencies and the U.S. dollar fluctuate
continuously. The Fund’s performance will be affected by its direct or indirect
exposure, which may include exposure through U.S. dollar denominated depositary
receipts and participation certificates, to a particular currency due to
favorable or unfavorable changes in currency exchange rates relative to the U.S.
dollar. The Fund’s direct or indirect exposure to a particular currency may be
hedged to mitigate currency volatility or because the Fund believes a currency
is overvalued. There can be no guarantee that any hedging activity will be
successful. Hedging activity and/or use of forward foreign currency exchange
contracts may reduce or limit the opportunity for gain and involves counterparty
risk, which is the risk that the contracting party will not fulfill its
contractual obligation to deliver the currency contracted for at the agreed upon
price to the Fund.
•REIT
Risk — The
Fund’s
investments
in real estate related securities (primarily REITs) are subject to the risk that
the value of the real estate underlying the securities will go down, which can
be caused by deteriorating economic conditions and rising interest rates, and
may also be subject to the risk that borrowers or tenants may default on their
payment obligations. Investments in REITs involve additional risks. REITs may
have limited financial resources and real estate diversification and are
dependent on specialized management skills. In addition, the failure of a REIT
to qualify as a REIT for federal income tax purposes would adversely affect the
REIT’s value.
•Large-Cap
Companies Risk
— Larger, more established companies may be unable to respond quickly to new
competitive challenges, such as changes in consumer tastes or innovative smaller
competitors. Also, large-cap companies are sometimes unable to attain the high
growth rates of successful, smaller companies, especially during extended
periods of economic expansion.
•Mid-Cap
Companies Risk
— The Fund may invest in the securities of companies with mid-capitalizations,
which can involve greater risk and the possibility of greater portfolio
volatility than investments in securities of large-capitalization companies.
Historically, stocks of mid-capitalization companies have been more volatile in
price than those of the larger market capitalization companies. Among the
reasons for the greater price volatility is the lower degree of liquidity in the
markets for such stocks. Mid-capitalization companies may have limited product
lines and financial resources and may depend upon a limited or less experienced
management group.
•Liquidity
Risk
— Liquidity risk exists when particular investments are difficult to sell, and
such investments (particularly investments deemed to be illiquid) may be harder
to value. If the Fund sells these investments to meet shareholder redemption
requests or for other purposes, the Fund may suffer a loss.
•Region,
Country, Sector or Industry Focus Risk
— The prices of securities of issuers in a particular region, country, sector,
industry or other segment of the market may be more susceptible to fluctuations
due to changes in economic or business conditions, government regulations,
availability of basic resources or supplies, wars, geopolitical events, or other
events that affect that market segment more than securities of issuers in other
market segments, and such volatility will cause fluctuations in the Fund’s share
price to the extent that the Fund emphasizes its investments in that region,
county, sector, industry or other market segment.
•Special
Situations Risk —
The Fund will seek to benefit from “special situations,” such as mergers,
reorganizations, or other unusual events expected to affect a particular issuer.
There is a risk that the “special situation” might not occur or involve longer
time frames than originally expected, which could have a negative impact on the
price of the issuer’s securities and fail to produce gains or produce a loss for
the Fund.
The bar chart
and table below provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns for 1 year, 5 years and since inception
compare with those of a broad measure of market performance.
The Fund’s performance figures
assume that all distributions were reinvested in the Fund and reflect the Fund’s
operating expenses. Bear in mind that past
performance (before and after taxes) is not a guarantee of future
performance. Updated performance information may be obtained on
the Fund’s website at www.rmbfunds.com
or by calling 1-800-462-2392.
RMB International Fund – Return for Class I
Shares
Best Quarter:
15.55% in the 4th
Quarter of 2020
Worst Quarter:
-21.52% in the 1st
Quarter of 2020
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|
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|
|
|
|
| |
|
Average
Annual Total Returns (For
the following periods ended 12/31/2022) |
1
year |
5
years |
Since
Inception1 |
| CLASS
I SHARES |
|
| |
| Total Return Before
Taxes |
-16.94% |
-1.91% |
-1.90% |
| Total Return After Taxes on
Distributions |
-17.14% |
-2.00% |
-2.00% |
|
Total
Return After Taxes on Distributions and Sale of Fund Shares2 |
-9.54% |
-1.29% |
-1.29% |
|
MSCI
EAFE Index
(reflects no deduction of
fees, expenses or taxes) |
-14.45% |
1.54% |
1.64% |
1Class I shares commenced
investment operations on December 27,
2017.
2The “Total Return After
Taxes on Distributions and Sale of Fund Shares” can be higher than other return
figures when a capital loss occurs upon the redemption of Fund shares. If
realized losses occur upon the sale of Fund shares, the capital loss is recorded
as a tax benefit, which increases the
return.
After-tax returns are
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. After-tax
returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans or IRAs. No
returns are provided for Investor Class shares, which have not been offered for
sale.
The
Fund is advised by RMB Capital Management, LLC (the “Adviser”).
Masa
Hosomizu, CFA, and Jim Plumb are primarily responsible for the day-to-day
management of the Fund's portfolio. Mr. Hosomizu is Partner and Portfolio
Manager of the Adviser, and he has served as portfolio manager of the Fund since
2019. Mr. Plumb is a Portfolio Manager of the Adviser and has served as
portfolio manager of the Fund since May 2022.
|
|
| |
|
PURCHASE
AND SALE OF FUND SHARES |
You
may purchase or redeem Fund shares on any day that the Fund is open for business
by sending a written request by mail (RMB Investors Trust, c/o BNY Mellon Asset
Servicing, P.O. Box 534464,
Pittsburgh, Pennsylvania
15253-4464),
by telephone (BNY Mellon Asset Servicing, 1-800-462-2392), or through certain
financial intermediaries.
The
table below sets forth the minimum initial and subsequent purchase amounts
required for each share class and certain types of shareholder accounts.
|
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|
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| |
|
| Minimum
Initial Investment |
Minimum
Subsequent Investment |
|
| Investor
Class (not available for purchase) |
Class
I |
Investor
Class (not available for purchase) |
Class
I |
| Regular
Account |
$2,500 |
$100,000 |
$500 |
$25,000 |
| Automatic
Investment Program, IRA and minor custodial account |
$2,500 |
$2,500 |
$500 |
$500 |
For
additional information about purchase and sale of Fund shares, please turn to
“How
to Buy Shares” in
this Prospectus.
The
Fund’s distributions are taxable and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-advantaged arrangement, such as a
401(k) plan or individual retirement account. Such tax-advantaged arrangements
may be taxed later upon a withdrawal from those arrangements.
|
|
| |
|
FINANCIAL
INTERMEDIARY COMPENSATION |
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank or financial advisor), the Fund and/or its Adviser 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 sales person to recommend the Fund over another
investment. Ask your salesperson or visit your financial intermediary’s website
for more information.
INVESTMENT
OBJECTIVE:
The RMB Japan Fund
(the “Fund”) seeks long-term capital appreciation.
There can be no assurance that the Fund
will be successful in achieving its investment objective.
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| |
|
FEES AND EXPENSES OF THE
FUND |
The table below
describes the fees and expenses you may pay if you buy, hold and sell shares of
the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the Fee Table or the Example below.
Fee
Table
|
|
|
|
|
|
|
|
| |
|
| Investor
Class |
Class
I |
|
Shareholder
Fees
(fees
paid directly from your investment) |
| |
| Maximum
front-end sales charge (load) on purchases |
None |
None |
| Maximum
deferred sales charge (load) |
None |
None |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
| |
| Management
fees |
0.90% |
0.90% |
| Distribution
and Shareholder Service (12b-1) fees |
0.25% |
None |
| Other
expenses |
0.74%¹ |
0.74% |
|
|
| |
|
Total
Annual Fund Operating Expenses3 |
1.89% |
1.64% |
|
Less
Fee Waiver and/or Expense Reimbursement2 |
-0.33% |
-0.33% |
|
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement3 |
1.56% |
1.31% |
1 Investor Class shares of
the Fund are not currently offered for purchase. As a result, “Other Expenses”
for Investor Class shares have been
estimated.
2 RMB
Capital Management, LLC (the “Adviser”) has contractually agreed to reduce its
compensation due from and/or assume expenses of the Fund to the extent necessary
to ensure that the Fund’s operating expenses (excluding interest, taxes,
brokerage commissions and other transaction costs, expenditures that are
capitalized in accordance with generally accepted accounting principles,
acquired fund fees and expenses, short sale dividends and extraordinary expenses
not incurred in the ordinary course of business) do not exceed 1.55% and 1.30%
of the average daily net assets of the Fund’s Investor Class and Class I shares,
respectively (the “Expense Cap”). The Expense Cap is in effect through
April 30,
2024
and cannot be terminated prior thereto without the approval of the Fund’s Board
of Trustees. To the extent the Adviser waives its compensation and/or assumes
expenses to satisfy the Expense Cap, the Adviser may seek repayment by the Fund
of a portion or all of such amounts at any time within three years from the date
on which such amounts were waived or assumed, provided that the Fund is able to
make the repayment without exceeding the lesser of the expense cap in effect at
the time of the waiver/reimbursement or in effect at the time of the repayment.
3
Total Annual Fund
Operating Expenses do not correlate to the Ratio of Total Expenses to Average
Net Assets in the Financial Highlights section of the statutory prospectus,
which reflects the operating expenses of the Fund and does not include acquired
fund fees and expenses (“AFFE”).
The 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 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 in the first year only. 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 |
|
Investor
Class |
$159 |
$562 |
$991 |
$2,185 |
|
Class
I |
$133 |
$485 |
$861 |
$1,916 |
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
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
32% of the average value of its
portfolio.
|
|
| |
|
PRINCIPAL INVESTMENT
STRATEGIES |
The
Fund pursues its investment objective by investing, under normal conditions, at
least 80% of its net assets (plus any borrowings for investment purposes) in
equity securities of Japanese companies.
The
Adviser considers a Japanese company to be a company organized under the laws of
Japan, for which the principal securities trading market is Japan, or a company
that has a majority of its assets or business in Japan.
The
Fund primarily invests in equity securities, including common stocks, preferred
stocks, warrants and other rights and securities convertible into or
exchangeable for common stocks. The Fund may also invest in real estate
investment trusts (“REITs”) and depositary receipts, including American,
European and Global Depositary Receipts. The Fund’s investments may be hedged or
unhedged to foreign currencies depending on the market opportunities. The Fund
may invest in companies of any size, but primarily invests in mid- and
large-capitalization companies and targeting a balanced allocation across this
market capitalization spectrum. For
this purpose, the Fund defines a mid- and large-capitalization company as any
company with a market capitalization within the range of the market
capitalizations of the constituents of the MSCI Japan Index, which as of March
31, 2023 had a market capitalization range from $1.6 billion to $149.8 billion.
The
Adviser uses a fundamental, bottom-up research approach. Fundamental analysis
includes evaluation of management teams and shareholder structure, and
examination of competitive positioning and industry dynamics, including pricing
power, stable free cash flow, and barriers to entry.
The Fund will seek to buy companies when
the Adviser believes the companies have a sustainable competitive advantage,
strong free cash flow and reasonable valuations relative to their long-term
potential. The Fund will sell securities when they are no longer trading below
their intrinsic value; when the Adviser believes there has been a deterioration
in the company’s fundamentals, and/or a change in the company’s business
outlook; or when a better use of capital presents itself.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
objective. The Fund’s share price fluctuates, which means you could
lose money by investing in the Fund. The Fund is not a complete
investment program and should be considered only as part of an investment
portfolio. The principal risks of investing in the Fund are summarized below:
•Market
Risk
— This is the risk that the price of a security will fall due to changing
economic, political or market conditions, that are not specifically related to a
particular company. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues,
recessions, natural disasters, or other events could have a significant impact
on the Fund and its investments. The market value of a security or instrument
also may decline because of factors that affect a particular sector, sub-sector,
or group of industries, such as labor shortages or increased production costs
and competitive conditions within an industry. The risk would be greater if any
of the categories of securities that the Fund emphasizes fell out of favor with
the market.
•Foreign
Investing Risk —
Foreign securities may underperform U.S. securities and may be more volatile
than U.S. securities. Risks relating to investments in foreign securities
(including, but not limited to, depositary receipts and participation
certificates) and to securities of issuers with significant exposure to foreign
markets include currency exchange rate fluctuation; less available public
information about the issuers of securities; less stringent regulatory
standards; lack of uniform accounting, auditing and financial reporting
standards; imposition of foreign withholding and other taxes; country risks,
including less liquidity, high inflation rates and unfavorable economic
practices; and political instability and expropriation and nationalization
risks.
•Equity
Securities Risk
— The risk that the market price of common stocks and other equity securities,
including preferred stocks, warrants and rights, may go up or down, sometimes
rapidly or unpredictably, including due to factors affecting equity securities
markets generally, particular industries represented in those markets, or the
issuer itself. Companies in the Fund’s portfolio could fail to achieve earnings
estimates or other market expectations, causing their stock prices to drop.
•Management
Risk
— The Fund is subject to management risk because it is an actively managed
investment portfolio. The adviser will apply its investment techniques and risk
analyses in making investment decisions for the Fund, but there is no guarantee
that its decisions will produce the intended result. The Fund’s management
strategy or security selection methods could prove less successful than
anticipated or unsuccessful. This risk is common for all actively managed funds.
Individual stocks selected by the adviser may decline in value or not increase
in value, even when the stock market in general is rising.
•Risks
Associated with Japan —
The Japanese economy continues to emerge from a prolonged economic downturn.
Since the year 2000, Japan’s economic growth rate has remained relatively low.
The economy is characterized by an aging demographic, declining population,
large government debt and highly regulated labor market. Economic growth is
dependent on domestic consumption, deregulation and consistent government
policy. International trade, particularly with the U.S., also impacts growth,
and adverse economic conditions in the U.S. or other such trade partners may
affect Japan. Japan also has a growing economic relationship with China and
other Southeast Asian countries, and thus Japan’s economy may also be affected
by economic, political, or social instability in those countries (whether
resulting from local or global events).
•Currency
Risk
— Foreign securities usually are denominated and traded in foreign currencies
and the exchange rates between foreign currencies and the U.S. dollar fluctuate
continuously. The Fund’s performance will be affected by its direct or indirect
exposure, which may include exposure through U.S. dollar denominated depositary
receipts and participation certificates, to a particular currency due to
favorable or unfavorable changes in currency exchange rates relative to the U.S.
dollar. The Fund’s direct or indirect exposure to a particular currency may be
hedged to mitigate currency volatility or because the Fund believes a currency
is overvalued. There can be no guarantee that any hedging activity will be
successful. Hedging activity and/or use of forward foreign currency exchange
contracts may reduce or limit the opportunity for gain and involves counterparty
risk, which is the risk that the contracting party will not fulfill its
contractual obligation to deliver the currency contracted for at the agreed upon
price to the Fund.
•REIT
Risk — The
Fund’s
investments
in real estate related securities (primarily REITs) are subject to the risk that
the value of the real estate underlying the securities will go down, which can
be caused by deteriorating economic conditions and rising interest rates, and
may also be subject to the risk that borrowers or tenants may default on their
payment obligations. Investments in REITs involve additional risks. REITs may
have limited financial resources and real estate diversification and are
dependent on specialized management skills. In addition, the failure of a REIT
to qualify as a REIT for federal income tax purposes would adversely affect the
REIT’s value.
•Depositary
Receipts Risk — The
Fund’s investments in depositary receipts include American Depositary Receipts
(“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts
(“EDRs”). ADRs are receipts issued by U.S. banks evidencing ownership in
securities of foreign issuers, and GDRs and EDRs are receipts issued by banks in
more than one country evidencing ownership in securities of foreign issuers.
Although depositary receipts have risks similar to the foreign securities that
they represent, they may also involve higher expenses and may trade at a
discount (or premium) to the underlying security. In addition, depositary
receipts may not pass through voting and other shareholder rights, and may be
less liquid than the underlying securities listed on an exchange.
•Large-Cap
Companies Risk
— Larger, more established companies may be unable to respond quickly to new
competitive challenges, such as changes in consumer tastes or innovative smaller
competitors. Also, large-cap companies are sometimes unable to attain the high
growth rates of successful, smaller companies, especially during extended
periods of economic expansion.
•Mid-Cap
Companies Risk
— The Fund may invest in the securities of companies with mid-capitalizations,
which can involve greater risk and the possibility of greater portfolio
volatility than investments in securities of large-capitalization companies.
Historically, stocks of mid-capitalization companies have been more volatile in
price than those of the larger market capitalization companies. Among the
reasons for the greater price volatility is the lower degree of liquidity in the
markets for such stocks. Mid-capitalization companies may have limited product
lines and financial resources and may depend upon a limited or less experienced
management group.
•Liquidity
Risk — Liquidity risk exists when particular
investments are difficult to sell, and such investments (particularly
investments deemed to be illiquid) may be harder to value. If the Fund sells
these investments to meet shareholder redemption requests or for other purposes,
the Fund may suffer a loss.
The bar chart
and table below provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns for 1 year, 5 years and since inception
compare with those of a broad measure of market performance.
The Fund’s performance figures
assume that all distributions were reinvested in the Fund and reflect the Fund’s
operating expenses. Bear in mind that past
performance (before and after taxes) is not a guarantee of future
performance. Updated performance information may be obtained on
the Fund’s website at www.rmbfunds.com
or by calling 1-800-462-2392.
RMB Japan Fund – Return for Class I
Shares
Best Quarter:
14.90% in the 4th
Quarter of 2020
Worst Quarter:
-18.84% in the 1st
Quarter of 2020
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|
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|
|
|
|
|
|
|
| |
|
Average
Annual Total Returns (For
the following periods ended 12/31/2022) |
1
year |
5
years |
Since
Inception1 |
| CLASS
I SHARES |
|
| |
| Total Return Before
Taxes |
-14.52% |
-0.94% |
-0.94% |
| Total Return After Taxes on
Distributions |
-14.52% |
-1.27% |
-1.26% |
|
Total
Return After Taxes on Distributions and Sale of Fund Shares2 |
-8.24% |
-0.50% |
-0.50% |
|
MSCI
Japan Index
(reflects no deduction of
fees, expenses or taxes) |
-16.65% |
0.23% |
0.20% |
1Class
I shares commenced investment operations on
December 27,
2017.
2The “Total Return After
Taxes on Distributions and Sale of Fund Shares” can be higher than other return
figures when a capital loss occurs upon the redemption of Fund shares. If
realized losses occur upon the sale of Fund shares, the capital loss is recorded
as a tax benefit, which increases the
return.
After-tax returns are
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. After-tax
returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans or IRAs. No
returns are provided for Investor Class shares, which have not been offered for
sale.
The
Fund is advised by RMB Capital Management, LLC (the “Adviser”).
Masa
Hosomizu, CFA, and Ilhwa Lee are primarily responsible for the day-to-day
management of the Fund's portfolio. Mr. Hosomizu is Partner and Portfolio
Manager of the Adviser, and he has served as portfolio manager of the Fund since
its inception in 2017. Mr. Lee is a Portfolio Manager of the Adviser and has
served as portfolio manager of the Fund since May 2022.
|
|
| |
|
PURCHASE
AND SALE OF FUND SHARES |
You
may purchase or redeem Fund shares on any day that the Fund is open for business
by sending a written request by mail (RMB Investors Trust, c/o BNY Mellon Asset
Servicing, P.O. Box 534464,
Pittsburgh, Pennsylvania 15253-4464),
by telephone (BNY Mellon Asset Servicing, 1-800-462-2392), or through certain
financial intermediaries.
The
table below sets forth the minimum initial and subsequent purchase amounts
required for each share class and certain types of shareholder accounts.
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|
|
|
|
|
|
|
|
|
|
|
| |
|
| Minimum
Initial Investment |
Minimum
Subsequent Investment |
|
| Investor
Class (not available for purchase) |
Class
I |
Investor
Class (not available for purchase) |
Class
I |
| Regular
Account |
$2,500 |
$100,000 |
$500 |
$25,000 |
| Automatic
Investment Program, IRA and minor custodial account |
$2,500 |
$2,500 |
$500 |
$500 |
For
additional information about purchase and sale of Fund shares, please turn to
“How
to Buy Shares” in
this Prospectus.
The
Fund’s distributions are taxable and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-advantaged arrangement, such as a
401(k) plan or individual retirement account. Such tax-advantaged arrangements
may be taxed later upon a withdrawal from those arrangements.
|
|
| |
|
FINANCIAL
INTERMEDIARY COMPENSATION |
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank or financial advisor), the Fund and/or its Adviser 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 sales person to recommend the Fund over another
investment. Ask your salesperson or visit your financial intermediary’s website
for more information.
INVESTMENT
OBJECTIVE:
The RMB Small Cap Fund (the
“Fund”) seeks capital appreciation.
|
|
| |
|
FEES AND EXPENSES OF THE
FUND |
The
table below describes the fees and expenses you may pay if you buy, hold and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the Fee Table or the Example
below.
Fee
Table
|
|
|
|
|
|
|
|
| |
|
| Investor
Class |
Class
I |
|
Shareholder
Fees
(fees
paid directly from your investment) |
| |
| Maximum
front-end sales charge (load) on purchases |
None |
None |
| Maximum
deferred sales charge (load) |
None |
None |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
| |
| Management
fees |
0.85% |
0.85% |
| Distribution
and Shareholder Service (12b-1) fees |
0.25% |
None |
| Other
expenses |
0.29%¹ |
0.29% |
|
Total
Annual Fund Operating Expenses3 |
1.39% |
1.14% |
|
Less
Fee Waiver and/or Expense Reimbursement2 |
-0.18% |
-0.18% |
|
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement3 |
1.21% |
0.96% |
1 Investor Class shares of
the Fund are not currently offered for purchase. As a result, “Other Expenses”
for Investor Class shares have been estimated.
2 RMB Capital Management,
LLC (the “Adviser”) has contractually agreed to reduce its compensation due from
and/or assume expenses of the Fund to the extent necessary to ensure that the
Fund’s operating expenses (excluding, interest, taxes, brokerage commissions and
other transaction costs, expenditures that are capitalized in accordance with
generally accepted accounting principles, acquired fund fees and expenses, if
any, and other extraordinary expenses not incurred in the ordinary course of
business) do not exceed 1.20% and 0.95% of the average net assets of the Fund’s
Investor Class and Class I, respectively (the “Expense Cap”). The Expense Cap is
in effect through April 30,
2024
and
cannot be terminated prior thereto without the approval of the Fund’s Board of
Trustees. To the extent the Adviser waives its compensation and/or assumes
expenses to satisfy the Expense Cap, the Adviser may seek repayment by the Fund
of a portion or all of such amounts at any time within three years from the date
on which such amounts were waived or assumed, provided that the Fund is able to
make the repayment without exceeding the lesser of the expense cap in effect at
the time of the waiver/reimbursement of in effect at the time of the
repayment.
3
Total Annual Fund
Operating Expenses do not correlate to the Ratio of Total Expenses to Average
Net Assets in the Financial Highlights section of the statutory prospectus,
which reflects the operating expenses of the Fund and does not include acquired
fund fees and expenses (“AFFE”).
The 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 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 in the first year only. 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 |
|
Investor
Class |
$123 |
$422 |
$743 |
$1,653 |
|
Class
I |
$98 |
$344 |
$610 |
$1,370 |
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 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 15% of the average value of its
portfolio.
|
|
| |
|
PRINCIPAL
INVESTMENT
STRATEGIES |
The
Fund seeks to achieve its investment objective by investing, under normal market
conditions, at least 80% of its net assets (plus borrowings for investment
purposes) in equity securities of U.S. companies with small market
capitalizations. For this purpose, the Adviser defines a small-capitalization
company as any company with a market capitalization less than or equal to the
largest market capitalization (determined at the time of investment) of any
company in the Russell 2000®
Index, which, as of March
31, 2023, was approximately $7.68 billion.
Equity securities in which the Fund invests consist primarily of common stocks,
and may include other types of equity securities. The Fund may also invest in
real estate investment trusts (“REITs”).
The
Adviser actively manages the Fund by applying an economic return framework that
seeks to identify attractively-priced companies at all stages of the corporate
lifecycle that allocate capital in a way that creates long-term value. The
Adviser’s economic return framework analyzes key determinants of success, such
as cash flow, capital investments, credit worthiness and sales momentum. Taking
into account a company’s stage in the corporate lifecycle, the Adviser evaluates
the sustainability of the company’s economic returns and further evaluates
potential investments to determine which stocks are most attractively priced. In
managing the Fund, the Adviser seeks to construct a portfolio that is
diversified across both economic sectors and corporate lifecycle. As a result of
its lifecycle diversification, the Fund invests in both growth- and value-style
equity securities. As
part of the Adviser's investment process, the investment team evaluates the
general and industry-specific Environmental, Social, and Governance (“ESG”)
factors that the Adviser believes to be the most financially material to a
company's short-, medium, and long-term enterprise value at any given time. The
Adviser defines materiality in terms of the impact on a company’s net income
over the longer term. Specific ESG factors the Adviser considers at any given
time vary greatly by geography and industry, and may also vary between companies
within the same geographic region or industry.
The Adviser reduces positions or sells
securities in the Fund for a variety of reasons, such as when the securities
reach their target price or when a position would exceed 5% of the Fund’s net
assets.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
objective. The Fund’s share price fluctuates, which means you could
lose money by investing in the Fund. The Fund is not a complete
investment program and should be considered only as part of an investment
portfolio. The principal risks of investing in the Fund are summarized below:
•Market
Risk
— This is the risk that the price of a security will fall due to changing
economic, political or market conditions, that are not specifically related to a
particular company. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues,
recessions, natural disasters, or other events could have a significant impact
on the Fund and its investments. The market value of a security or instrument
also may decline because of factors that affect a particular sector, sub-sector,
or group of industries, such as labor shortages or increased production costs
and competitive conditions within an industry. The risk would be greater if any
of the categories of securities that the Fund emphasizes fell out of favor with
the market.
•Small-Cap
Companies Risk
— Historically, stocks of small-capitalization companies and recently organized
companies have been more volatile in price than those of the larger market
capitalization companies. Among the reasons for the greater price volatility is
the lower degree of liquidity in the markets for such securities, which may make
these securities difficult to value and to sell. As a result, some of the Fund’s
small cap holdings may be considered or become illiquid. Such companies also may
have limited product lines and financial resources and may depend upon a limited
or less experienced management group.
•Equity
Securities Risk
— The risk that the market price of common stocks and other equity securities,
including preferred stocks, warrants and rights, may go up or down, sometimes
rapidly or unpredictably, including due to factors affecting equity securities
markets generally, particular industries represented in those markets, or the
issuer itself. Companies in the Fund’s portfolio could fail to achieve earnings
estimates or other market expectations, causing their stock prices to drop.
•Management
Risk
— The Fund is subject to management risk because it is an actively managed
investment portfolio. The adviser will apply its investment techniques and risk
analyses in making investment decisions for the
Fund,
but there is no guarantee that its decisions will produce the intended result.
The Fund’s management strategy or security selection methods could prove less
successful than anticipated or unsuccessful. This risk is common for all
actively managed funds. Individual stocks selected by the adviser may decline in
value or not increase in value, even when the stock market in general is rising.
•Growth
Investing Risk —
Growth companies are generally more susceptible than established companies to
market events and sharp declines in value.
•Value
Investing Risk
— Value stocks may not increase in price, may not issue the anticipated stock
dividends or may decline in price, based upon the market’s belief of the
issuer’s intrinsic worth.
•ESG
Risk —
Incorporation of ESG factors into the Fund’s investment process may cause the
Fund to make different investments and have different investment performance and
exposures to different issuers than funds that do not incorporate ESG
considerations. When evaluating a company, the Adviser is dependent on
information or data obtained through company or third-party reporting that may
be incomplete, inaccurate, or unavailable, which could compromise the Adviser’s
assessment of a company’s ESG characteristics and/or the financial materiality
of those characteristics. Because ESG factor analysis is just one part of the
Adviser’s overall investment process for the Fund, the Fund may hold portfolio
companies that many or all market participants view as having an unfavorable ESG
profile.
•REIT
Risk — The
Fund’s
investments in real estate related
securities (primarily REITs) are subject to the risk that the value of the real
estate underlying the securities will go down, which can be caused by
deteriorating economic conditions and rising interest rates, and may also be
subject to the risk that borrowers or tenants may default on their payment
obligations. Investments in REITs involve additional risks. REITs may have
limited financial resources and real estate diversification and are dependent on
specialized management skills. In addition, the failure of a REIT to qualify as
a REIT for federal income tax purposes would adversely affect the REIT’s
value.
The bar chart
and table below provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns for 1, 5, and 10 years compare with
those of a broad measure of market performance. The Fund’s performance figures
assume that all distributions were reinvested in the Fund and reflect the Fund’s
operating expenses. Bear in mind that past
performance (before and after taxes) is not a guarantee of future
performance. Updated performance information may be obtained on
the Fund’s website at www.rmbfunds.com
or by calling 1-800-462-2392.
The Fund commenced operations upon
completion of the reorganization of the IronBridge Small Cap Fund (the
“IronBridge Predecessor Fund”), a series of IronBridge Funds, Inc., into the
Fund, which occurred on June 21, 2019 (the “IronBridge Reorganization”). As a
result of the IronBridge Reorganization, the performance and accounting history
of the IronBridge Predecessor Fund were assumed by the Fund’s Class I shares.
Prior to June 21, 2019, the Fund’s Class I performance shown is that of the
IronBridge Predecessor Fund.
RMB Small Cap Fund – Return for Class I
Shares
Best Quarter:
28.97% in the 4th
Quarter of 2020
Worst Quarter:
-26.83% in the 1st
Quarter of 2020
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|
|
|
| |
|
Average
Annual Total Returns (For
the following periods ended 12/31/2022) |
1
year |
5
Years |
10
Years |
| CLASS
I SHARES |
|
| |
| Total Return Before
Taxes |
-24.80% |
5.91% |
8.78% |
| Total Return After Taxes on
Distributions |
-25.26% |
3.46% |
6.14% |
|
Total
Return After Taxes on Distributions and Sale of Fund Shares1 |
-14.33% |
4.38% |
6.67% |
|
Russell
2000®
Index
(reflects no deduction of
fees, expenses or taxes) |
-20.44% |
4.13% |
9.01% |
|
|
|
| |
1 The “Total Return After
Taxes on Distributions and Sale of Fund Shares” can be higher than other return
figures when a capital loss occurs upon the redemption of Fund shares. If
realized losses occur upon the sale of Fund shares, the capital loss is recorded
as a tax benefit, which increases the
return.
After-tax returns are
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. After-tax
returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans or IRAs. No
returns are provided for Investor Class shares, which have not been offered for
sale.
The
Fund is advised by RMB Capital Management, LLC (the “Adviser”).
Christopher
C. Faber, Senior Vice President and Portfolio Manager of the Adviser, has had
primary day-to-day responsibility for the management of the Fund’s portfolio
since inception of its predecessor fund in August 2002.
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PURCHASE
AND SALE OF FUND SHARES |
You
may purchase or redeem Fund shares on any day that the Fund is open for business
by sending a written request by mail (RMB Investors Trust, c/o BNY Mellon Asset
Servicing, P.O. Box 534464,
Pittsburgh, Pennsylvania 15253-4464),
by telephone (BNY Mellon Asset Servicing, 1-800-462-2392), or through certain
financial intermediaries.
The
table below sets forth the minimum initial and subsequent purchase amounts
required for each share class and certain types of shareholder accounts.
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| |
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| Minimum
Initial Investment |
Minimum
Subsequent Investment* |
|
| Investor
Class (not available for purchase) |
Class
I |
Investor
Class (not available for purchase) |
Class
I |
| Regular
Account |
$2,500 |
$100,000 |
$500 |
$25,000 |
| Automatic
Investment Program, IRA and minor custodial account |
$2,500 |
$2,500 |
$500 |
$500 |
* Shareholders
who hold shares issued to them pursuant to the IronBridge Reorganization are
subject to a $1,000 minimum for subsequent investments in Class I.
For
additional information about purchase and sale of Fund shares, please turn to
“How
to Buy Shares” in
this Prospectus.
The
Fund’s distributions are taxable and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-advantaged arrangement, such as a
401(k) plan or individual retirement account. Such tax-advantaged arrangements
may be taxed later upon a withdrawal from those arrangements.
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FINANCIAL
INTERMEDIARY COMPENSATION |
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank or financial advisor), the Fund and/or its Adviser 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 sales person to recommend the Fund over another
investment. Ask your salesperson or visit your financial intermediary’s website
for more information.
INVESTMENT
OBJECTIVE:
The RMB SMID Cap Fund (the
“Fund”) seeks capital appreciation.
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FEES AND EXPENSES OF THE
FUND |
The
table below describes the fees and expenses you may pay if you buy, hold and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the Fee Table or the Example
below.
Fee
Table
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| |
|
| Investor
Class |
Class
I |
|
Shareholder
Fees
(fees
paid directly from your investment) |
| |
| Maximum
front-end sales charge (load) on purchases |
None |
None |
| Maximum
deferred sales charge (load) |
None |
None |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
| |
| Management
fees |
0.70% |
0.70% |
| Distribution
and Shareholder Service (12b-1) fees |
0.25% |
None |
| Other
expenses |
0.22%¹ |
0.22% |
|
Total
Annual Fund Operating Expenses3 |
1.17% |
0.92% |
|
Less
Fee Waiver and/or Expense Reimbursement2 |
-0.11% |
-0.11% |
|
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement3 |
1.06% |
0.81% |
1 Investor Class shares of the Fund
are not currently offered for purchase. As a result, “Other Expenses” for
Investor Class shares have been estimated.
2 RMB Capital Management,
LLC (the “Adviser”) has contractually agreed to reduce its compensation due from
and/or assume expenses of the Fund to the extent necessary to ensure that the
Fund’s operating expenses (excluding interest, taxes, brokerage commissions and
other transaction costs, expenditures that are capitalized in accordance with
generally accepted accounting principles and acquired fund fees and expenses, if
any, and other extraordinary expenses not incurred in the ordinary course of
business) do not exceed 1.05% and 0.80% of the average net assets of the Fund’s
Investor Class and Class I, respectively (the “Expense Cap”). The Expense Cap is
in effect through April 30,
2024 and cannot be terminated prior thereto without the approval
of the Fund’s Board of Trustees. To the extent the Adviser waives its
compensation and/or assumes expenses to satisfy the Expense Cap, the Adviser may
seek repayment by the Fund of a portion or all of such amounts at any time
within three years from the date on which such amounts were waived or assumed,
provided that the Fund is able to make the repayment without exceeding the
lesser of the expense cap in effect at the time of the waiver/reimbursement or
in effect at the time of the repayment.
3
Total Annual Fund Operating
Expenses do not correlate to the Ratio of Total Expenses to Average Net Assets
in the Financial Highlights section of the statutory prospectus, which reflects
the operating expenses of the Fund and does not include acquired fund fees and
expenses (“AFFE”).
The 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 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 in the first year only. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
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|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Investor
Class |
$108 |
$361 |
$633 |
$1,411 |
|
Class
I |
$83 |
$282 |
$499 |
$1,121 |
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
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
4% of the average value of its
portfolio.
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PRINCIPAL
INVESTMENT
STRATEGIES |
The
Fund seeks to achieve its investment objective by investing, under normal market
conditions, at least 80% of its net assets (plus borrowings for investment
purposes) in equity securities of companies with small- to-mid- market
capitalizations. For this purpose, the Adviser defines a small- to-mid-
capitalization company as a company that has a market capitalization of between
$500 million and $40.02 billion at the time of purchase. Equity securities in
which the Fund invests consist primarily of common stocks, and may include other
types of equity securities. The Fund may also invest in real estate investment
trusts (“REITs”).
The
Adviser actively manages the Fund by applying an economic return framework that
seeks to identify attractively-priced companies at all stages of the corporate
lifecycle that allocate capital in a way that creates long-term value. The
Adviser’s economic return framework analyzes key determinants of success, such
as cash flow, capital investments, credit worthiness and sales momentum. Taking
into account a company’s stage in the corporate lifecycle, the Adviser evaluates
the sustainability of the company’s economic returns and further evaluates
potential investments to determine which stocks are most attractively priced. In
managing the Fund, the Adviser seeks to construct a portfolio that is
diversified across both economic sectors and corporate lifecycle. As a result of
its lifecycle diversification, the Fund invests in both growth- and value-style
equity securities. As
part of the Adviser's investment process, the investment team evaluates the
general and industry-specific Environmental, Social, and Governance (“ESG”)
factors that the Adviser believes to be the most financially material to a
company's short-, medium, and long-term enterprise value at any given time. The
Adviser defines materiality in terms of the impact on a company’s net income
over the longer term. Specific ESG factors the Adviser considers at any given
time vary greatly by geography and industry, and may also vary between companies
within the same geographic region or industry.
The Adviser reduces positions or sells
securities in the Fund for a variety of reasons, such as when the securities
reach their target price or when a position would exceed 5% of the Fund’s net
assets.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
objective. The Fund’s share price fluctuates, which means you could
lose money by investing in the Fund. The Fund is not a complete
investment program and should be considered only as part of an investment
portfolio. The principal risks of investing in the Fund are summarized below:
•Market
Risk
— This is the risk that the price of a security will fall due to changing
economic, political or market conditions, that are not specifically related to a
particular company. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues,
recessions, natural disasters, or other events could have a significant impact
on the Fund and its investments. The market value of a security or instrument
also may decline because of factors that affect a particular sector, sub-sector,
or group of industries, such as labor shortages or increased production costs
and competitive conditions within an industry. The risk would be greater if any
of the categories of securities that the Fund emphasizes fell out of favor with
the market.
•Equity
Securities Risk
— The risk that the market price of common stocks and other equity securities,
including preferred stocks, warrants and rights, may go up or down, sometimes
rapidly or unpredictably, including due to factors affecting equity securities
markets generally, particular industries represented in those markets, or the
issuer itself. Companies in the Fund’s portfolio could fail to achieve earnings
estimates or other market expectations, causing their stock prices to drop.
•Management
Risk
— The Fund is subject to management risk because it is an actively managed
investment portfolio. The adviser will apply its investment techniques and risk
analyses in making investment decisions for the Fund, but there is no guarantee
that its decisions will produce the intended result. The Fund’s management
strategy or
security
selection methods could prove less successful than anticipated or unsuccessful.
This risk is common for all actively managed funds. Individual stocks selected
by the adviser may decline in value or not increase in value, even when the
stock market in general is rising.
•Small-
and Mid-Cap Companies Risk
— The Fund may invest in the securities of companies with small- and
mid-capitalizations, which can involve greater risk and the possibility of
greater portfolio volatility than investments in securities of large-
capitalization companies. Historically, stocks of small- and mid-capitalization
companies and recently organized companies have been more volatile in price than
those of the larger market capitalization companies. Among the reasons for the
greater price volatility is the lower degree of liquidity in the markets for
such stocks. Small- and mid-capitalization companies may have limited product
lines and financial resources and may depend upon a limited or less experienced
management group. The securities of small-capitalization companies trade in the
over-the-counter markets or on regional exchanges and may not be traded daily or
in the volume typical of trading on a national securities exchange, which may
make these securities more difficult to value and to sell.
•Growth
Investing Risk
— Growth companies are generally more susceptible than established companies to
market events and sharp declines in value.
•Value
Investing Risk
— Value stocks may not increase in price, may not issue the anticipated stock
dividends or may decline in price, based upon the market’s belief of the
issuer’s intrinsic worth.
•ESG
Risk
—
Incorporation
of ESG factors into the Fund’s investment process may cause the Fund to make
different investments and have different investment performance and exposures to
different issuers than funds that do not incorporate ESG considerations. When
evaluating a company, the Adviser is dependent on information or data obtained
through company or third-party reporting that may be incomplete, inaccurate, or
unavailable, which could compromise the Adviser’s assessment of a company’s ESG
characteristics and/or the financial materiality of those characteristics.
Because ESG factor analysis is just one part of the Adviser’s overall investment
process for the Fund, the Fund may hold portfolio companies that many or all
market participants view as having an unfavorable ESG profile.
•REIT
Risk — The
Fund’s
investments
in real estate related securities (primarily REITs) are subject to the risk that
the value of the real estate underlying the securities will go down, which can
be caused by deteriorating economic conditions and rising interest rates, and
may also be subject to the risk that borrowers or tenants may default on their
payment obligations. Investments in REITs involve additional risks. REITs may
have limited financial resources and real estate diversification and are
dependent on specialized management skills. In addition, the failure of a REIT
to qualify as a REIT for federal income tax purposes would adversely affect the
REIT’s value.
•Large
Shareholder Risk —
From time to time, shareholders of the Fund may make relatively large
redemptions or purchases of Fund shares. These transactions may cause the Fund
to sell securities or invest additional cash, as the case may be, at
disadvantageous prices. Redemptions of a large number of shares also may
increase transaction and other costs or have adverse tax consequences for
shareholders of the Fund by requiring a sale of portfolio securities. Purchases
of a large number of shares may adversely affect the Fund’s performance to the
extent that it takes time to invest new cash and the Fund maintains a larger
cash position than it ordinarily would.
The bar chart
and table below provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns for 1, 5, and 10 years compare with
those of a broad measure of market performance. The Fund’s performance figures
assume that all distributions were reinvested in the Fund and reflect the Fund’s
operating expenses. Bear in mind that past
performance (before and after taxes) is not a guarantee of future
performance. Updated performance information may be obtained on
the Fund’s website at www.rmbfunds.com
or by calling 1-800-462-2392.
The Fund commenced operations upon
completion of the reorganization of the IronBridge SMID Cap Fund (the
“IronBridge Predecessor Fund”), a series of IronBridge Funds, Inc., into the
Fund, which occurred on June 21, 2019 (the “IronBridge Reorganization”). As a
result of the IronBridge Reorganization, the performance and accounting history
of the IronBridge Predecessor Fund were assumed by the Fund’s Class I shares.
Prior to June 21, 2019, the performance shown is that of the IronBridge
Predecessor Fund, which commenced operations on July 23,
2010.
RMB SMID Cap Fund – Return for Class I
Shares
Best
Quarter:25.40% in the 2nd
Quarter of 2020
Worst Quarter:
-25.28% in the 1st
Quarter of 2020
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|
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| |
|
Average
Annual Total Returns
(For the following periods ended
12/31/2022) |
1
year |
5
Years |
10
Years |
| CLASS
I SHARES |
|
| |
| Total Return Before
Taxes |
-20.87% |
9.56% |
10.53% |
| Total Return After Taxes on
Distributions |
-22.34% |
7.20% |
7.76% |
|
Total
Return After Taxes on Distributions and Sale of Fund Shares1 |
-11.31% |
7.23% |
7.93% |
|
Russell
2500TM
Index
(reflects no deduction of
fees, expenses or taxes) |
-18.37% |
5.89% |
10.03% |
1
The “Total Return After
Taxes on Distributions and Sale of Fund Shares” can be higher than other return
figures when a capital loss occurs upon the redemption of Fund shares. If
realized losses occur upon the sale of Fund shares, the capital loss is recorded
as a tax benefit, which increases the
return.
After-tax returns are
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. After-tax
returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans or IRAs. No
returns are provided for Investor Class shares, which have not been offered for
sale.
The
Fund is advised by RMB Capital Management, LLC (the “Adviser”).
Christopher
C. Faber, Senior Vice President and Portfolio Manager of the Adviser, has had
primary day-to-day responsibility for the management of the Fund’s portfolio
since inception of its predecessor fund in August 2002.
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PURCHASE
AND SALE OF FUND SHARES |
You
may purchase or redeem Fund shares on any day that the Fund is open for business
by sending a written request by mail (RMB Investors Trust, c/o BNY Mellon Asset
Servicing, P.O. Box 534464,
Pittsburgh, Pennsylvania 15253-4464),
by telephone (BNY Mellon Asset Servicing, 1-800-462-2392), or through certain
financial intermediaries.
The
table below sets forth the minimum initial and subsequent purchase amounts
required for each share class and certain types of shareholder accounts.
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|
|
|
|
| |
|
| Minimum
Initial Investment |
Minimum
Subsequent Investment* |
|
| Investor
Class (not available for purchase) |
Class
I |
Investor
Class (not available for purchase) |
Class
I |
| Regular
Account |
$2,500 |
$100,000 |
$500 |
$25,000 |
| Automatic
Investment Program, IRA and minor custodial account |
$2,500 |
$2,500 |
$500 |
$500 |
* Shareholders
who hold shares issued to them pursuant to the IronBridge Reorganization are
subject to a $1,000 minimum for subsequent investments in Class I.
For
additional information about purchase and sale of Fund shares, please turn to
“How
to Buy Shares” in
this Prospectus.
The
Fund’s distributions are taxable and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-advantaged arrangement, such as a
401(k) plan or individual retirement account. Such tax-advantaged arrangements
may be taxed later upon a withdrawal from those arrangements.
|
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| |
|
FINANCIAL
INTERMEDIARY COMPENSATION |
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank or financial advisor), the Fund and/or its Adviser 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 sales person to recommend the Fund over another
investment. Ask your salesperson or visit your financial intermediary’s website
for more information.
RMB
Investors Trust (the “Trust”), located at 115 S. LaSalle Street, 34th Floor,
Chicago, Illinois 60603, is an open-end management investment company registered
under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust
is comprised of six series, each of which is a separate portfolio of investments
with its own investment objective.
Information
relating to the RMB Fund, RMB Mendon Financial Services Fund (“Financial
Services Fund”), RMB International Fund (the “International Fund”), RMB Japan
Fund (the “Japan Fund”), RMB Small Cap Fund (the “Small Cap Fund”) and the RMB
SMID Cap Fund (the “SMID Cap Fund”) (each, a “Fund” and collectively, the
“Funds”) in this section is in addition to the information included in the
Summary section for each Fund.
The
investment objective of the RMB Fund is to seek capital appreciation, mainly
long term; income is generally of lesser importance, meaning that it is a
secondary goal. The investment objective of the Financial Services Fund,
International Fund, Japan Fund, Small Cap Fund and SMID Cap Fund is to seek
capital appreciation.
Except
for the RMB Fund, the Board of Trustees may change a Fund’s investment objective
without shareholder approval. The RMB Fund’s objective is fundamental and may
not be changed without shareholder approval. There can be no assurance that a
Fund will be successful in achieving its investment objective.
The
Financial Services Fund, Japan Fund, Small Cap Fund, and SMID Cap Fund have each
adopted a non-fundamental investment policy to invest at least 80% of the Fund’s
net assets (plus borrowings for investment purposes) in the types of investments
suggested by the Fund’s name. Each Fund’s 80% investment policy is disclosed in
the Principal Investment Strategies Section of the applicable Fund Summary and
may be changed by the Fund upon 60 days’ notice to shareholders.
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ADDITIONAL
INFORMATION REGARDING PRINCIPAL INVESTMENT STRATEGIES OF THE
FUNDS |
RMB
Fund. The
Fund generally invests in high quality companies of all market capitalizations
with a focus on businesses that have sustainable, long term competitive
advantages. Portfolio companies may range from small and mid-sized businesses
that are earlier in their growth life cycle, to larger more mature companies
that return capital to shareholders through increasing dividend payments and
share buy-backs. High quality companies are generally defined as companies with
product leadership, that have potential for sustained operating and revenue
growth and that are run by strong management teams that allocate shareholder
capital wisely and align their economic interests with shareholders. The Fund
employs a long-term approach when selecting stocks and seeks to own businesses
that have durable franchises that can weather the ups and downs of volatile
business cycles.
Mendon
Financial Services Fund. The
Fund pursues its investment objective by investing, under normal circumstances,
at least 80% of its net assets (plus any borrowings for investment purposes) in
stocks of U.S. companies that are in the financial services industry. The Fund
includes the market value of derivatives that provide exposure to the financial
services industry in determining compliance with the Fund’s 80% investment
policy. The Fund may invest in companies of any size, but, under normal
conditions, the Fund invests primarily in mid-, small- and micro-capitalization
financial services companies. For this purpose, the Fund defines a mid-, small-,
and micro-capitalization company as any company with a market capitalization
within the range of the market capitalizations of the constituents of the NASDAQ
Bank Index, which as of March 31, 2023 ranged from $17 million to $18.1 billion.
For purposes of selecting investments, the Fund defines the financial services
industry broadly. It includes (but is not limited to) the following:
•Banks
•Insurance
companies
•Consumer
and commercial finance companies
•Securities
brokerage firms and electronic trading networks
•Investment
management and advisory firms
•Financial
conglomerates
•Financial
technology companies
International
Fund. The
Fund pursues its investment objective by investing, under normal conditions, in
at least three different countries and at least 40% of its total assets in
securities of non-U.S. issuers organized or having their principal
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ADDITIONAL
INFORMATION ABOUT THE FUNDS’ INVESTMENTS
33 |
place
of business outside the U.S. or doing a substantial amount (more than 50%) of
business outside the U.S. Investments in exchange-traded funds (“ETFs”) based on
non-U.S. market indices are considered investments outside the U.S. for purposes
of the 40% requirement noted above.
The
Fund’s non-U.S. investments will be primarily in developed markets, but the Fund
may invest in emerging markets. As of the date of this Prospectus, the Fund’s
investment adviser believes that developed markets outside the United States
include, but may not be limited to, the following: Austria, Australia, Belgium,
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy,
Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland and the United Kingdom. The Fund considers emerging markets to be
markets located in countries classified as emerging or frontier markets by MSCI,
and are generally located in the AsiaPacific region, Eastern Europe, the Middle
East, Central and South America and Africa. There are no geographic limits on
the Fund’s non-U.S. investments.
The
Fund may invest in companies of any size, but primarily invests in mid- and
large-capitalization companies and targeting a balanced allocation across this
market capitalization spectrum. For
this purpose, the Fund defines a mid- and large-capitalization company as any
company with a market capitalization within the range of the market
capitalizations of the constituents of the MSCI EAFE Index, which as of March
31, 2023 had a market capitalization range from $1.4 billion to $335.5 billion.
At
times the Fund may increase the relative emphasis of its investments in a
particular region, country, sector, industry or other segment of the
market.
The
Fund primarily invests in equity securities, including common stocks, preferred
stocks, warrants and other rights, and securities convertible into or
exchangeable for common stocks. The Fund may also invest in real estate
investment trusts (“REITs”), depositary receipts, including American, European
and Global Depositary Receipts. The Fund’s investments may be hedged or unhedged
to foreign currencies depending on the market opportunities.
Japan
Fund. The
Fund pursues its investment objective by investing, under normal conditions, at
least 80% of its net assets (plus any borrowings for investment purposes) in
equity securities of Japanese companies. The Adviser considers a Japanese
company to be a company organized under the laws of Japan, for which the
principal securities trading market is Japan, or a company that has a majority
of its assets or business in Japan.
The
Fund primarily invests in equity securities, including common stocks, preferred
stocks, warrants and other rights and securities convertible into or
exchangeable for common stocks. The Fund may also invest in real estate
investment trusts (“REITs”) and depositary receipts, including American,
European and Global Depositary Receipts. The Fund’s investments may be hedged or
unhedged to foreign currencies depending on the market opportunities. The Fund
may invest in companies of any size, but primarily invests in mid- and
large-capitalization companies and targeting a balanced allocation across this
market capitalization spectrum. For
this purpose, the Fund defines a mid- and large-capitalization company as any
company with a market capitalization within the range of the market
capitalizations of the constituents of the MSCI Japan Index, which as of March
31, 2023 had a market capitalization range from $1.6 billion to $149.8 billion.
Small
Cap Fund.
The Fund seeks to achieve its investment objective by investing, under normal
market conditions, at least 80% of its net assets (plus borrowings for
investment purposes) in equity securities of U.S. companies with small market
capitalizations. For this purpose, the Adviser defines a small-capitalization
company as any company with a market capitalization less than or equal to the
largest market capitalization (determined at the time of investment) of any
company in the Russell 2000® Index, which, as of March
31, 2023, was approximately $7.68 billion.
Equity securities in which the Fund invests consist primarily of common stocks,
and may include other types of equity securities. The Fund may also invest in
REITs.
The
Adviser actively manages the Fund by applying an economic return framework that
seeks to identify attractively-priced companies at all stages of the corporate
lifecycle that allocate capital in a way that creates long-term value. The
Adviser’s economic return framework analyzes key determinants of success, such
as cash flow, capital investments, credit worthiness and sales momentum. Taking
into account a company’s stage in the corporate lifecycle, the Adviser evaluates
the sustainability of the company’s economic returns and further evaluates
potential investments to determine which stocks are most attractively priced. In
managing the Fund, the Adviser seeks to construct a portfolio that is
diversified across both economic sectors and corporate lifecycle. As a result of
its lifecycle diversification, the Fund invests in both growth- and value-style
equity securities.
The
first phase in the decision-making process involves screening a broad equity
universe of approximately 3,000 small market capitalization issuers to determine
which look most promising based on analysis of several key determinants of
success, such as capital investments, credit worthiness and sales momentum. From
there, the Adviser narrows the list and
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34
ADDITIONAL INFORMATION ABOUT THE FUNDS’
INVESTMENTS |
evaluates
approximately 600 companies, with a focus on each company’s stage in its life
cycle and the level, trend and sustainability of economic returns. This results
in a potential “buy” list of 150 companies the Adviser believes are
well-managed, and which are evaluated further to determine which stocks are most
attractively priced. Following additional analysis of accounting numbers,
financial statement data and recent corporate news, the Adviser arrives at a
target price for each stock and makes risk/reward comparisons among all of the
potential investments. The Adviser typically constructs the Small Cap Fund’s
portfolio of the approximately 40 to 80 holdings that result from this process,
with close attention paid to the Russell 2000® Index sector weightings, which
may result in a significant portion of the Small Cap Fund’s assets being
invested in particular sectors, such as the financial services industry. Stocks
are sold or positions are reduced at a variety of times, including when they
reach the target price, when there is a significant change in economic return
trend, or when a position reaches 5% of the Small Cap Fund’s net
assets.
SMID
Cap Fund.
The Fund seeks to achieve its investment objective by investing, under normal
market conditions, at least 80% of its net assets (plus borrowings for
investment purposes) in equity securities of companies with small- to mid-
market capitalizations. For this purpose, the Adviser defines a small- to mid-
capitalization company as a company that has a market capitalization of between
$500 million and $40.02 billion at the time of purchase. Equity securities in
which the Fund invests consist primarily of common stocks, and may include other
types of equity securities. The Fund may also invest in REITs.
The
Adviser actively manages the Fund by applying an economic return framework that
seeks to identify attractively-priced companies at all stages of the corporate
lifecycle that allocate capital in a way that creates long-term value. The
Adviser’s economic return framework analyzes key determinants of success, such
as cash flow, capital investments, credit worthiness and sales momentum. Taking
into account a company’s stage in the corporate lifecycle, the Adviser evaluates
the sustainability of the company’s economic returns and further evaluates
potential investments to determine which stocks are most attractively priced. In
managing the Fund, the Adviser seeks to construct a portfolio that is
diversified across both economic sectors and corporate lifecycle. As a result of
its lifecycle diversification, the Fund invests in both growth- and value-style
equity securities.
The
first phase in the decision-making process involves screening a broad equity
universe of approximately 2,500 small-to-mid- market capitalization issuers to
determine which look most promising based on analysis of several key
determinants of success, such as capital investments, credit worthiness and
sales momentum. From there, the Adviser narrows the list and evaluates
approximately 600 companies, with a focus on each company’s stage in its life
cycle and the level, trend and sustainability of economic returns. This results
in a potential “buy” list of 150 companies the Adviser believes are
well-managed, and which are evaluated further to determine which stocks are most
attractively priced. Following additional analysis of accounting numbers,
financial statement data and recent corporate news, the Adviser arrives at a
target price for each stock and makes risk/reward comparisons among all of the
potential investments. The Adviser typically constructs the SMID Cap Fund’s
portfolio of the approximately 40 to 80 holdings that result from this process,
with close attention paid to the Russell 2500TM
Index sector weightings, which may result in a significant portion of the SMID
Cap Fund’s assets being invested in particular sectors, such as the financial
services industry. Stocks are sold or positions are reduced at a variety of
times, including when they reach the target price, when there is a significant
change in economic return trend, or when a position reaches 5% of the SMID Cap
Fund’s net assets.
Small
Cap Fund and SMID Cap Fund.
As part of the Adviser’s investment process for the Small Cap Fund and SMID Cap
Fund, the investment team evaluates the general and industry-specific ESG
factors that the Adviser believes to be the most financially material to a
company’s short-, medium-, and long-term enterprise value at any given time. The
Adviser defines materiality in terms of the impact on a company’s net income
over the long term. Specific ESG factors the Adviser considers at any given time
vary greatly by geography and industry, and may also vary between companies
within the same geographic region or industry. The Adviser believes its
evaluation of ESG factors contributes to its overall analysis of a company’s
value creation and future financial performance.
The
Adviser primarily utilizes data from company filings and information from
engagement with company management, and may also use data from third-party
sources, in its proprietary ESG evaluation process. The Adviser’s proprietary
ESG evaluation process seeks to identify ESG factors that the Adviser believes
will materially contribute to or detract from a company’s financial performance.
The investment team assigns a grade (e.g., A, B, or C) for the company’s
environmental, social, and governance practices, as well as an overall ESG grade
for the company. The weight given to any particular ESG factor may vary
depending upon a company’s industry and may change over time.
The
ESG grades the Adviser assigns to a company are only one of many inputs
considered by the investment team in evaluating whether to buy, sell or hold the
company for the Fund’s portfolio.
Across
industries, the investment team evaluates common corporate ESG factors,
including but not limited to those listed below.
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ADDITIONAL
INFORMATION ABOUT THE FUNDS’ INVESTMENTS
35 |
Environmental:
greenhouse gas emissions, energy management, and water management.
Social:
recruitment and management of a global, diverse, and skilled workforce,
community relations, product
safety,
and labor practices.
Governance:
composition and structure of the board of directors, executive management’s
compensation level and
structure,
competitive behavior, systematic risk management, and business
ethics.
Industry-specific
ESG factors the investment team evaluates include, but are not limited to, those
listed below.
Environmental:
environmental footprint of hardware infrastructure, hazardous materials
management, waste and
discharge
management, distribution network efficiency, and fleet fuel
management.
Social:
data security, lending practices, food safety, energy affordability, and
advertising integrity.
Governance:
intellectual property protection, nuclear safety and emergency management,
management of systemic
risks
from technology disruptions, management of conflicts of interest, and critical
incident risk management.
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NON-PRINCIPAL
INVESTMENTS - ALL FUNDS |
Restricted
and Illiquid Securities
In
addition to the strategies noted in the Summary sections for each Fund, each
Fund may also invest in securities that are sold (i) in private placement
transactions between their issuers and their purchasers and that are neither
listed on an exchange nor traded over-the-counter, including private placements
issued under Regulation S, or (ii) in transactions between qualified
institutional buyers pursuant to Rule 144A under the Securities Act of
1933, as amended (“1933 Act”). Such restricted securities are subject to
contractual or legal restrictions on subsequent transfer. As a result of the
absence of a public trading market, such restricted securities may in turn be
less liquid and more difficult to value than publicly traded securities.
Although these securities may be resold in privately negotiated transactions,
the prices realized from the sales could, due to illiquidity, be less than those
originally paid by a Fund or less than their fair value. In addition, issuers
whose securities are not publicly traded may not be subject to the disclosure
and other investor protection requirements that may be applicable if their
securities were publicly traded. If any privately placed or Rule 144A
securities held by a Fund are required to be registered under the securities
laws of one or more jurisdictions before being resold, the Fund may be required
to bear the expenses of registration.
Illiquid
investments are investments that the Adviser reasonably expects cannot be sold
or disposed of in current market conditions within seven calendar days or less
without the sale or disposition significantly changing the market value of the
investment. If a Fund holds illiquid investments it may be unable to quickly
sell them or may be able to sell them only at a price below current value.
Illiquid investments may be more difficult to value.
Each
Fund will not invest more than 15% of its net assets in illiquid securities. The
Japan Fund will limit its investment in all restricted securities (liquid and
illiquid), including Rule 144A securities, to 15% of its total
assets.
Temporary
Defensive Positions
For
temporary and defensive purposes, each Fund may invest up to 100% of its total
assets in investment grade short-term fixed-income securities (including
short-term U.S. Government securities, money market instruments, including
negotiable certificates of deposit, non-negotiable fixed time deposits, bankers’
acceptances, commercial paper and floating rate notes) and repurchase
agreements. Each Fund may also hold significant amounts of its assets in cash,
subject to the applicable percentage limitations for short-term securities. A
Fund will not be achieving its investment objective to the extent it takes a
temporary defensive position.
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ADDITIONAL
INFORMATION REGARDING MARKET
INDEXES |
The
following are descriptions of the Funds’ broad based securities market indexes
disclosed in this prospectus. These indexes are unmanaged and the returns
disclosed do not reflect the payment of transaction costs and advisory and other
fees associated with an investment in the Funds. The securities that comprise
these indexes may differ substantially from the securities in the Funds’
portfolios. A Fund’s specific investment strategy and restrictions may exclude
certain investments that reflect the makeup of its benchmark index. It is not
possible to invest directly in an index. Each index named is not the only index
which may be used to evaluate performance of a specific Fund and other indexes
may portray different comparative performance.
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36
ADDITIONAL INFORMATION ABOUT THE FUNDS’
INVESTMENTS |
S&P
500®
Index (Total Return),
is a capital weighted, unmanaged index that represents the aggregate market
value of the common equity of 500 stocks primarily traded on the New York Stock
Exchange, and includes the reinvestment of dividends in the index.
NASDAQ
Bank Index (Total Return),
contains securities of NASDAQ-listed companies classified according to the
Industry Classification Benchmark as banks, and includes the reinvestment of
dividends in the index. These banks provide a broad range of financial services,
including retail banking, loans and money transmissions.
Morgan
Stanley Capital International (MSCI) Europe, Australia, and Far East (EAFE)
Index,
is an equity index which captures large- and mid-cap representation across 21
developed market countries around the world, excluding the US and Canada. With
more than 750 constituents, the index covers approximately 85% of the free
float-adjusted market capitalization in each country.
Morgan
Stanley Capital International (MSCI) Japan Index,
is designed to measure the performance of the large- and mid-cap segments of the
Japanese market. With more than 200 constituents, the index covers approximately
85% of the free float-adjusted market capitalization in Japan.
Russell
2000®
Index.
The
Russell 2000®
Index measures the performance of the 2,000 smallest companies in the Russell
3000®
Index. The Russell 3000®
Index measures the performance of the 3,000 largest U.S. companies based on
total market capitalization.
Russell
2500TM
Index.
The
Russell 2500TM
Index measures the performance of the 2,500 smallest companies in the Russell
3000®
Index. The Russell 3000®
Index
measures the performance of the 3,000 largest U.S. companies based on total
market capitalization.
Russell
3000®
Index.
The Russell 3000®
Index
measures the performance of the largest 3,000 U.S. companies representing
approximately 96% of the investable U.S. equity market, as of the most recent
reconstitution. The Russell 3000®
Index is constructed to provide a comprehensive, unbiased and stable barometer
of the broad market and is completely reconstituted annually to ensure new and
growing equities are included.
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ADDITIONAL
INFORMATION ABOUT THE FUNDS’ INVESTMENTS
37 |
ADDITIONAL
INFORMATION REGARDING PRINCIPAL INVESTMENT RISKS
The
Fund’s principal risks are set forth below. Before you decide whether to invest
in a Fund, carefully consider these risk factors and special considerations
associated with investing in the Funds, which may cause you to lose
money.
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RMB
Fund |
Financial
Services Fund |
Interna-tional
Fund |
Japan
Fund |
Small
Cap Fund |
SMID
Cap Fund |
|
Market
Risk |
l |
l |
l |
l |
l |
l |
|
Equity
Securities Risk |
l |
l |
l |
l |
l |
l |
|
Management
Risk |
l |
l |
l |
l |
l |
l |
|
Micro-Cap
Companies Risk |
|
l |
|
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| |
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Small/Mid-Cap
Companies Risk |
l |
l |
|
|
|
l |
|
Large-Cap
Companies Risk |
l |
|
l |
l |
| |
| Small-Cap
Companies Risk |
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|
l |
|
| Mid-Cap
Companies Risk |
|
|
l |
l |
| |
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Foreign
Investing Risk |
|
| l |
l |
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Emerging
Markets Risk |
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l |
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Currency
Risk |
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l |
l |
| |
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Derivatives
Risk |
|
l |
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Call
and Put Options Risk |
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l |
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| Futures
Risk |
|
l |
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Region,
Country, Sector or Industry Risk |
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l |
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Risks
Associated with Japan |
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l |
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Financial
Services Risk |
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l |
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Special
Situations Risk |
l |
l |
l |
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| |
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| |
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Liquidity
Risk |
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|
l |
l |
| |
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Depositary
Receipts Risk |
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|
l |
l |
| |
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REIT
Risk |
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|
l |
l |
l |
l |
|
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Growth
Investing Risk |
l |
l |
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|
l |
l |
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Value
Investing Risk |
|
l |
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|
l |
l |
|
Dividend
Risk |
l |
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| Large
Shareholder Risk |
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l |
| ESG
Risk |
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l |
l |
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•Market
Risk
— The market price of a security or instrument may decline, sometimes rapidly or
unpredictably, due to general market conditions that are not specifically
related to a particular company, such as real or perceived adverse economic or
political conditions throughout the world, changes in the general outlook for
corporate earnings, changes in interest or currency rates or adverse investor
sentiment generally. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues,
recessions, natural disasters, or other events could have a significant impact
on a Fund and its investments. The market value of a security or instrument also
may decline because of factors that affect a particular sector, sub-sector, or
group of industries, such as labor shortages or increased production costs and
competitive conditions within an industry.
COVID-19
may continue to cause significant global economic and societal disruption as
further variants circulate. Future infectious disease outbreaks that may arise,
as well as actions taken in response by governmental authorities or other third
parties, may negatively impact the market. The 2022 Russian invasion of Ukraine
has, and other potential hostilities or geopolitical tensions may, negatively
impact the market. Inflation or financial crises, and governmental and central
bank responses to these events, may also negatively impact the market. These
market impacts would reduce the value of the Funds' investments, possibly
significantly.
•Equity
Securities Risk
— The market prices of common stocks and other equity securities may go up or
down, sometimes rapidly or unpredictably. The values of equity securities may
decline due to general market conditions that are not necessarily related to a
particular company, such as real or perceived adverse economic conditions,
changes in the general outlook for corporate earnings, changes in interest or
currency rates, or adverse investor sentiment generally. They also may decline
due to factors which affect a particular industry or industries, such as labor
shortages or increased production costs and competitive conditions within an
industry. In addition, the values of equity securities may decline for
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38
ADDITIONAL INFORMATION ABOUT THE FUNDS’
INVESTMENTS |
a
number of reasons that may relate directly to the issuer, such as management
performance, financial leverage, non-compliance with regulatory requirements,
and reduced demand for the issuer’s goods or services. Equity securities
generally have greater price volatility than bonds and other debt securities,
although under certain market conditions various debt investments may have
comparable or greater price volatility. The values of equity securities paying
dividends at high rates may be more sensitive to change in interest rates than
are other equity securities.
•Management
Risk
— The Funds are subject to management risk because they are actively managed
investment portfolios. The Adviser will apply its investment techniques and risk
analyses in making investment decisions for the Funds, but there is no guarantee
that its decisions will produce the intended result. A Fund’s management
strategy or security selection methods could prove less successful than
anticipated or unsuccessful. This risk is common for all actively managed funds.
Individual stocks selected by the adviser may decline in value or not increase
in value, even when the stock market in general is rising.
•Micro-Cap
Companies Risk
— Certain of the Fund’s investments may be considered “micro-cap”. Micro-cap
companies may be less financially secure than large, mid or small-capitalization
companies. Micro-cap companies may be in the early stage of development or newly
formed with limited markets or product lines. There may also be less public
information about micro-cap companies. In addition, micro-cap companies that
rely on smaller management teams may be vulnerable to key personnel losses.
Micro-cap stock prices also may be more volatile than large, mid or small-cap
stocks, may have lower trading volume and lower degree of liquidity which makes
these securities difficult to value and to sell. The securities of micro-cap
companies may not be traded daily. As a result, some of the Fund’s holdings may
be considered or become illiquid.
•Small/Mid-Cap
Companies Risk
— Investing in small-capitalization or mid-capitalization companies generally
involves greater risks than investing in large-capitalization companies. Small-
or mid-cap companies may have limited product lines, markets or financial
resources or may depend on the expertise of a few people and may be subject to
more abrupt or erratic market movements than securities of larger, more
established companies or market averages in general. Many small-capitalization
companies may be in the early stages of development. Since equity securities of
smaller companies may lack sufficient market liquidity and may not be regularly
traded, it may be difficult or impossible to sell securities at an advantageous
time or a desirable price.
•Large-Cap
Companies Risk
— Market capitalization is determined by multiplying the number of a company’s
outstanding shares by the current market price per share. Larger, more
established, companies may have fewer opportunities to expand the market for
their products or services, may focus their competitive efforts on maintaining
or expanding their market share, and may be unable to respond quickly to new
competitive challenges, like price competition, changes in consumer tastes or
innovative products. Also, large-cap companies are sometimes unable to attain
the high growth rates of successful, smaller companies, especially during
extended periods of economic expansion. These factors could result in the share
price of larger companies not keeping pace with the overall stock market or
growth in the general economy, and could have a negative effect on a Fund’s
portfolio, performance and share price.
•Foreign
Investing Risk
— Foreign securities may underperform U.S. securities and may be more volatile
than U.S. securities. Risks relating to investments in foreign securities
(including, but not limited to, depositary receipts and participation
certificates) and to securities of issuers with significant exposure to foreign
markets include currency exchange rate fluctuation; less available public
information about the issuers of securities; less stringent regulatory
standards; lack of uniform accounting, auditing and financial reporting
standards; imposition of foreign withholding and other taxes; country risks,
including less liquidity, high inflation rates and unfavorable economic
practices; and political instability and expropriation and nationalization
risks.
•Emerging
Markets Risk — Investment
risks typically are greater in emerging, less developed and developing markets.
For example, in addition to the risks associated with investments in any foreign
country, political, legal and economic structures in these less developed
countries may be new and changing rapidly, which may cause instability and
greater risk of loss. Emerging markets may be less developed, and securities in
emerging markets are generally more volatile and less liquid than those in the
developed markets. Emerging and developing market countries also are more likely
to experience high levels of inflation or even deflation, which could hurt their
economies and securities markets. The currencies of certain emerging market
countries may experience devaluation relative to the U.S. dollar, which will
adversely affect the value of a Fund's assets denominated in such currencies.
Certain emerging and developing markets also may face other significant internal
or external risks, including a heightened risk of war, or ethnic, religious or
racial conflicts. In addition, governments in many emerging and developing
market countries participate to a significant degree in their economies and
securities markets, which may impair investment and economic growth of companies
in those markets. Such markets may also be heavily reliant on foreign capital
and, therefore, vulnerable to capital flight.
Investing
in emerging and developing market countries involves substantial risk due to,
among other reasons, limited issuer information; higher brokerage costs;
different and less stringent accounting, auditing and financial reporting
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ADDITIONAL
INFORMATION ABOUT THE FUNDS’ INVESTMENTS
39 |
standards;
less developed legal systems and thinner trading markets as compared to those in
developed countries; and currency blockages or transfer restrictions.
There
may be little financial or accounting information available with respect to
issuers located in emerging market countries, and this information may not
reflect the issuer's financial position in the same way as it would be reflected
if the financial and accounting information had been prepared in accordance with
U.S. Generally Accepted Accounting Principles. As a result, it may be difficult
to assess the value or prospects of an investment in such issuers. The legal
remedies for investors in emerging markets may be more limited than the remedies
available in the U.S., and the ability of U.S. authorities (e.g., the SEC and
the U.S. Department of Justice) to take action with respect to bad actors may be
limited.The securities markets of emerging and developing market countries may
be substantially smaller, less developed, less liquid and more volatile than the
major securities markets in the U.S. and other developed nations. The limited
size of many securities markets in emerging and developing market countries and
limited trading volume in issuers compared to the volume in U.S. securities or
securities of issuers in other developed countries could cause prices to be
erratic for reasons other than factors that affect the quality of the
securities. In addition, emerging and developing market countries’ exchanges and
broker-dealers may generally be subject to less regulation than their
counterparts in developed countries. Brokerage commissions and dealer mark-ups,
custodial expenses and other transaction costs are generally higher in emerging
and developing market countries than in developed countries, all of which can
increase fund operating expenses and/or negatively impact fund
performance.
Emerging
and developing market countries may have different clearance and settlement
procedures than in the U.S., and in certain markets there may be times when
settlements fail to keep pace with the volume of securities transactions, making
it difficult to conduct such transactions. Further, satisfactory custodial
services for investment securities may not be available in some emerging and
developing market countries, which may result in additional costs and delays in
trading and settlement. The inability of a Fund to make intended security
purchases due to settlement problems or the risk of intermediary or counterparty
failures could cause a Fund to miss attractive investment opportunities. The
inability to dispose of a portfolio security due to settlement problems could
result either in losses to a Fund due to subsequent declines in the value of
such portfolio security or, if the Fund has entered into a contract to sell the
security, could result in possible liability to the purchaser.
•Currency
Risk
— Foreign securities usually are denominated and traded in foreign currencies,
while each Fund values its assets in U.S. dollars. The exchange rates between
foreign currencies and the U.S. dollar fluctuate continuously. As a result, a
Fund’s performance will be affected by its direct or indirect exposure, which
may include exposure through U.S. dollar denominated depositary receipts and
participation certificates, to a particular currency due to favorable or
unfavorable changes in currency exchange rates relative to the U.S. dollar.
Currency exchange rates fluctuate significantly for many reasons, including
changes in supply and demand in the currency exchange markets, actual or
perceived changes in interest rates, intervention (or the failure to intervene)
by U.S. or foreign governments, central banks, or supranational agencies such as
the International Monetary Fund and currency controls or other political and
economic developments in the U.S. or abroad.
A
Fund’s direct or indirect exposure to a particular currency may be hedged to
mitigate currency volatility or because the Fund believes a currency is
overvalued. There can be no guarantee that any hedging activity will be
successful. Hedging activity and/or use of forward foreign currency exchange
contracts may mitigate the risk of loss from changes in currency exchange rates,
but also may reduce or limit the opportunity for gain and involves the risk that
the contracting party will not fulfill its contractual obligation to deliver the
currency contracted for at the agreed upon price to the Fund. The success of any
hedging strategy is highly uncertain, and a Fund may be required to buy or sell
additional currency on the spot market (and bear the expense of such
transaction) if the Adviser’s predictions regarding the movement of foreign
currency or securities markets prove inaccurate.
•Derivatives
Risk —
Investing
in derivatives involves investment techniques and risks different from those
associated with ordinary securities transactions and may involve increased
transaction costs. The Fund’s investment in derivatives may rise or fall more
rapidly in value than other investments and may reduce the Fund’s returns.
Changes in the value of the derivative may not correlate perfectly, or at all,
with the underlying asset, reference rate or index, and the Fund could lose more
than the principal amount invested. Derivatives also may not behave as
anticipated by the Fund, especially in abnormal market conditions. The use of
derivatives may increase the volatility of the Fund’s net asset value.
Derivatives may be leveraged such that a small investment in derivative
securities can have a significant impact on the Fund’s exposure to stock market
values, interest rates, currency exchange rates or other investments. As a
result, a relatively small price movement in a derivatives contract may cause an
immediate and substantial loss or gain. It may be difficult or impossible for
the Fund to purchase or sell certain derivatives in sufficient amounts to
achieve the desired level of exposure, which may result in a loss or may be
costly to the Fund. In addition, the possible lack of a liquid secondary market
for certain derivatives and the resulting inability of the Fund to sell or
otherwise close-out a derivatives position
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ADDITIONAL INFORMATION ABOUT THE FUNDS’
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could
expose the Fund to losses and could make such derivatives more difficult for the
Fund to value accurately. Some derivatives are more sensitive to market price
fluctuations and to interest rate changes than other investments. The Fund also
could suffer losses related to its derivatives positions as a result of
unanticipated market movements, which losses are potentially unlimited. The Fund
also may be exposed to losses if the counterparty in the transaction does not
fulfill its contractual obligation. In addition, derivatives traded
over-the-counter (“OTC derivatives”) do not benefit from the protections
provided by exchanges in the event that a counterparty is unable to fulfill its
contractual obligation. Such OTC derivatives therefore involve greater
counterparty and credit risk and may be more difficult to value than
exchange-traded derivatives. When a derivative is used as a hedge against a
position that the Fund holds, any loss generated by the derivative should
generally be offset by gains on the hedged instrument, and vice versa. While
hedging can reduce or eliminate losses, it also can reduce or eliminate gains.
Hedges are sometimes subject to imperfect matching between the derivative and
the hedged investment, and there can be no assurance that the Fund’s hedging
transactions will be effective. Also, suitable derivative transactions may not
be available in all circumstances. Derivatives are subject to fees and other
costs which are not reflected in the Annual Fund Operating Expenses table.
Derivative instruments may also be subject to the additional risks described
below.
•Counterparty
risk.
The
risk that a Fund will be subject to credit risk with respect to the
counterparties to derivative contracts and other instruments entered into
directly by the Fund. Other than to maintain its status as a regulated
investment company for U.S. federal income tax purposes, a Fund is not subject
to any limit with respect to the number of transactions it can enter into with a
single counterparty. To the extent that a Fund enters into multiple transactions
with a single or a small set of counterparties, it will be subject to increased
counterparty risk.
•Leverage
Risk. To
the extent the Fund’s use of derivatives creates financial leverage, the value
of the Fund’s shares may be more volatile because financial leverage will
amplify the effect of increases or decreases in the value of the Fund’s
derivative investments, and results in increased volatility. The Fund will have
the potential for greater gains, as well as the potential for greater losses,
than if the Fund does not use derivatives instruments that have a leveraging
effect. A Fund’s use of options, such as purchased call options, can magnify the
Fund’s exposure beyond its existing investment in the underlying security (i.e.,
economic leverage).
•Liquidity
Risk.
Derivatives are also subject to liquidity risk. Liquidity risk is the risk that
a derivative instrument cannot be sold, closed out or replaced quickly at or
very close to its fundamental value. Generally, exchange-traded derivatives are
very liquid because the exchange clearinghouse is the counterparty of every
contract. OTC derivatives are less liquid than exchange-traded derivatives since
they often can be closed out only with the other party to the transaction. The
Fund’s ability to sell or close out a position in an instrument prior to
expiration or maturity depends on the existence of a liquid secondary market or,
in the absence of such a market, the ability and willingness of the counterparty
to enter into a transaction closing out the position. Therefore, there is no
assurance that any derivatives position can be sold or closed out at a time and
price that is favorable to the Fund.
•Swap
risk. Risks
associated with swap agreements include changes in the returns of the underlying
instruments, failure of the counterparties to perform under the contract’s terms
and the possible lack of liquidity with respect to the swap agreements.
Moreover, a Fund bears the risk of loss of the amount expected to be received
under a swap agreement in the event of the default or bankruptcy of a swap
agreement counterparty. The swaps market is subject to extensive government
regulation. It is possible that developments in the swaps market, including new
and additional government regulation, could result in higher Fund costs and
expenses and could adversely affect the Fund’s ability, among other things, to
terminate existing swap agreements or to realize amounts to be received under
such agreements.
•Interest
rate swap risk. Risks
associated with interest rate swaps include changes in market conditions that
may affect the value of the contract or the cash flows, and the possible
inability of the counterparty to fulfill its obligations under the agreement.
Certain interest rate swap arrangements also may involve the risk that they do
not fully offset adverse changes in interest rates. Interest rate swaps may in
some cases be illiquid and may be difficult to trade or value, especially in the
event of market disruptions. Under certain market conditions, the investment
performance of a Fund may be less favorable than it would have been if the Fund
had not used the swap agreement.
•Options
risk. Options
transactions involve special risks that may make it difficult or impossible to
close a position when a Fund desires. These risks include the potential lack of
a liquid secondary market at any particular time and possible price fluctuation
limits. In addition, the option activities of a Fund may affect its portfolio
turnover rate and the amount of brokerage commissions paid by the
Fund.
•Call
and Put Options Risk
— A call option obligates the writer (or seller) of the option to sell a
specified asset to the holder of the option at a specified price when the holder
exercises the option prior to expiration. A put option obligates the writer (or
seller) of the option to buy a specified asset from the holder of the option at
a specified price when the holder
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41 |
exercises
the option prior to expiration. Options are wasting assets and expire, and as a
result can expose the Fund to significant losses.
•Covered
Call Options.
By
selling a covered call option, the Fund may forego the opportunity to benefit
from an increase in price of the underlying asset above the exercise price, but
continues to bear the risk of a decline in the value of the underlying asset. A
liquid market may not exist for the option. If the Fund is not able to close out
the options transactions, the Fund will not be able to sell the underlying asset
until the option expires or is exercised.
•Covered
Put Options.
By
selling a covered put option, the Fund’s gains are limited to the extent of the
premiums received; however, in return for the option premium, the Fund accepts
the risk that it may be required to purchase the underlying asset at a price in
excess of the asset’s market value at the time of purchase. A liquid market may
not exist for the option. If the Fund is not able to sell or exercise the
option, the option would expire worthless and the entire premium would be
lost.
•Tax
Consequences to Writing Covered Call Options Risk.
The Fund expects to generate premiums from its sale of call options. If a call
option written by the Fund expires, the Fund will typically realize a short-term
capital gain for federal income tax purposes, which usually will be taxable as
ordinary income when distributed to shareholders. Transactions involving the
disposition of the Fund’s underlying securities (whether pursuant to the
exercise of a call option or otherwise) will give rise to capital gains or
losses. Because the Fund will have no control over the exercise of the call
options it writes, it may be forced to realize capital gains or losses at
inopportune times.
•Futures
risk —
The
risk of loss in trading futures contracts and in writing futures options can be
substantial because of the low margin deposits required, the extremely high
degree of leverage involved in futures and options pricing, and the potential
high volatility of the futures markets. As a result, a relatively small price
movement in a futures position may result in immediate and substantial loss (or
gain) for the Fund, and losses could exceed the amount invested in the position.
In the event of adverse price movements, the Fund would continue to be required
to make daily cash payments to maintain its required margin. In such situations,
if the Fund has insufficient cash, it may have to sell portfolio securities to
meet daily margin requirements at a time when it may be disadvantageous to do
so. In addition, on the settlement date, the Fund may be required to make
delivery of the instruments underlying the futures positions it
holds.
The
Fund bears the risk that the Adviser will incorrectly predict future market
trends. If the Adviser attempts to use a futures contract or a futures option as
a hedge against, or as a substitute for, a portfolio investment, the Fund will
be exposed to the risk that the futures position will have or will develop
imperfect or no correlation with the portfolio investment. This could cause
substantial losses for the Fund.
The
Fund could suffer losses if it is unable to close out a futures contract or a
futures option because of an illiquid secondary market, and there can be no
assurance that a liquid secondary market will exist for any particular futures
product at any specific time. The Fund could lose all or a portion of margin
payments it has deposited with its futures commission merchant if, for example,
the futures commission merchant breaches its agreement with the Fund or becomes
insolvent or goes into bankruptcy.
•Region,
Country, Sector or Industry Focus Risk
— At times the Fund may increase the relative emphasis of its investments in a
particular region, country, sector or industry. The prices of securities of
issuers in a particular industry or sector may be more susceptible to
fluctuations due to changes in economic or business conditions, government
regulations, availability of basic resources or supplies, wars, geopolitical
events, or other events that affect that industry or sector more than securities
of issuers in other industries and sectors. To the extent that the Fund
increases the relative emphasis of its investments in a particular industry or
sector, its shares’ values may fluctuate in response to events affecting that
industry or sector.
•Risks
Associated with Japan —
The Japanese economy continues to emerge from a prolonged economic downturn.
Japan’s economic growth rate has remained relatively low. The economy is
characterized by an aging demographic, declining population, large government
debt and highly regulated labor market. Economic growth is dependent on domestic
consumption, deregulation and consistent government policy. International trade,
particularly with the U.S., also impacts growth, and adverse economic conditions
in the U.S. or other such trade partners may affect Japan. Any restrictions on
global trade are lately to have a significant adviser effect on the country.
Japan also has a growing economic relationship with China and other Southeast
Asian countries, and thus Japan’s economy may also be affected by economic,
political, or social instability in those countries (whether resulting from
local or global events).
•Financial
Services Risk
— A fund that focuses its investments in specific industries or sectors is more
susceptible to developments affecting those industries and sectors than a more
broadly diversified fund would be. Because the Fund invests significantly in
financial services companies, the Fund may perform poorly during a downturn in
the financial services industry. The financial services industry can be
significantly affected by changes in interest rates, the rate of corporate and
consumer debt defaults, the availability and cost of borrowing and raising
capital, reduced credit market liquidity, regulatory changes, price competition,
bank failures and other financial crises, and general economic and market
conditions. Changing interest rates could reduce the profitability of certain
types of companies in the financial services
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ADDITIONAL INFORMATION ABOUT THE FUNDS’
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industry.
Financial services companies may have concentrated portfolios, such as a high
level of loans to one or more industries or sectors, which makes them vulnerable
to economic conditions that affect such industries or sectors. Significant
events, such as the COVID-19 pandemic may have a significant negative impact on
economies and financial markets worldwide, resulting in higher debt defaults,
loan write-offs, and government intervention, historically low interest rates,
and potentially the failure of some financial institutions, each of which would
reduce investment performance of financial services companies held by the Fund.
Future outbreaks of infectious disease or other natural disasters or crises
could have similar, or even more severe, impacts on the financial services
industry.
•Special
Situations Risk —
Securities of companies that are involved in an initial public offering or a
major corporate event, such as a business consolidation or restructuring, may be
exposed to heightened risk because of the high degree of uncertainty that can be
associated with such events. Securities issued in initial public offerings often
are issued by companies that are in the early stages of development, have a
history of little or no revenues and may operate at a loss following the
offering. It is possible that there will be no active trading market for the
securities after the offering, and that the market price of the securities may
be subject to significant and unpredictable fluctuations. Initial public
offerings are subject to many of the same risks as investing in companies with
smaller market capitalizations. To the extent the Fund determines to invest in
initial public offerings, it may not be able to invest to the extent desired,
because, for example, only a small portion (if any) of the securities being
offered in an initial public offering are available to the Fund. The investment
performance of the Fund during periods when it is unable to invest significantly
or at all in initial public offerings may be lower than during periods when the
Fund is able to do so. Securities purchased in initial public offerings which
are sold within 12 months after purchase may result in increased short-term
capital gains, which will be taxable to the Fund’s shareholders as ordinary
income. Certain “special situation” investments are investments in securities or
other instruments that are determined to be illiquid or lacking a readily
ascertainable fair value.
•Liquidity
Risk
— Liquidity risk exists when particular investments are difficult to sell. In
addition, liquid investments may become illiquid after purchase by the Fund,
particularly during periods of market turmoil. When a Fund holds illiquid
investments, the portfolio may be harder to value, especially in changing
markets, and if the Fund is forced to sell these investments to meet redemption
requests or for other cash needs, the Fund may suffer a loss. In addition, when
there is illiquidity in the market for an investment, a Fund, due to limitations
on illiquid investments, may be unable to achieve its desired level of exposure
to a certain sector.
•Depositary
Receipts Risk —
The
Funds’ investments in depositary receipts include ADRs, GDRs and EDRs. ADRs are
U.S. dollar-denominated receipts issued in registered form by a domestic bank or
trust company that evidence ownership of underlying securities issued by a
foreign issuer. EDRs are foreign currency-denominated receipts issued in Europe,
typically by foreign banks or trust companies and foreign branches of domestic
banks, that evidence ownership of foreign or domestic securities. GDRs are
receipts structured similarly to ADRs and EDRs and are marketed
globally.
Although
depositary receipts have risks similar to the securities that they represent,
they may also involve higher expenses and may trade at a discount (or premium)
to the underlying security. In addition, depositary receipts may not pass
through voting and other shareholder rights, and may be less liquid than the
underlying securities listed on an exchange.
•REIT
Risk —
Investments
in real estate related securities are subject to the risk that the value of the
real estate underlying the securities will decline. Many factors may affect the
value of real estate underlying real estate related securities, such as, but not
limited to, national, regional and local economies in which the real estate is
located, amounts of new construction, consumer demand, laws and regulations
(including zoning and tax laws), availability of mortgages and changes in
interest rates, and the economy and consumer perception in general.
Investments
in REITs involve unique risks. REITs may have limited financial resources, may
trade less frequently and in limited volume, and may be more volatile than other
securities. In addition, to the extent a Fund holds interests in REITs,
investors in the Fund bear two layers of asset-based management fees and
expenses (directly at the Fund level and indirectly at the REIT level). The
risks of investing in REITs include certain risks associated with the direct
ownership of real estate and the real estate industry in general. These include
risks related to general, regional and local economic conditions; fluctuations
in interest rates and property tax rates; shifts in zoning laws, environmental
regulations and other governmental action such as the exercise of eminent
domain; cash flow dependency; increased operating expenses; lack of availability
of mortgage funds; losses due to natural disasters; overbuilding; losses due to
casualty or condemnation; changes in property values and rental rates; and other
factors.
•Growth
Investing Risk
— Growth stocks may fall out of favor with investors and underperform other
asset types during given periods. A company may never achieve the earnings
growth the team anticipated. Investors often expect growth companies to increase
their earnings at a certain rate. Failures by such companies to meet these
expectations may result in sharp declines in the prices of these stocks, even if
earnings do increase. In addition, growth stocks typically lack the dividend
yield that can cushion stock prices in market downturns. This may result in a
decline in the value of the Funds’ investments.
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ADDITIONAL
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43 |
•Value
Investing Risk
— Value-style stocks are those that the Adviser believes will increase in value,
pay dividends or are undervalued at the time of purchase. Value-style stocks may
never increase in price or pay dividends as anticipated by the Adviser, or may
decline if the market fails to recognize the company’s intrinsic value, if the
factors that the Adviser believes will increase the price do not occur or if a
stock is appropriately priced.
•ESG
Risk
— Incorporation of ESG factors into a Fund’s investment process may cause the
Fund to make different investments, and result in different exposures to various
issuers, than funds that do not incorporate such considerations into their
strategy or investment processes. The Adviser’s ESG considerations may also
result in a greater emphasis on long-term performance, which may result in the
Fund forgoing shorter-term opportunities to buy certain securities when it might
otherwise be advantageous to do so, or selling securities for ESG-related
reasons when it might not otherwise be advantageous to do so. This may affect
the Fund’s performance depending on whether certain investments are in or out of
favor, and the Fund’s investment performance could be different compared to
funds that do not incorporate ESG considerations.
There
are significant differences in interpretations of what it means for a company to
meet ESG criteria. The Adviser’s assessment of a company may differ from that of
other funds advised by different advisers, and the Adviser’s assessment of a
company’s ESG factors could change over time. As a result, stocks selected by
the Adviser may not reflect the beliefs and values of any particular investor.
When evaluating an issuer, the Adviser is dependent on information or data
obtained through voluntary or third-party reporting that may be incomplete,
inaccurate, or unavailable, which could cause the Adviser to incorrectly assess
an issuer’s ESG practices. Because ESG factor analysis is used as one part of
the Adviser’s overall investment process, a Fund may still invest in securities
of issuers that many or all market participants view as having an unfavorable
ESG profile.
•Dividend
Risk
—
This is the risk than an issuer of stock held by the Fund may choose not to
declare a dividend or the dividend rate might not remain at current levels.
Dividend paying stocks might not experience the same level of earnings growth or
capital appreciation as non-dividend paying stocks. The Fund’s performance
during a broad market advance could suffer because dividend paying stocks may
not experience the same capital appreciation as non-dividend paying
stocks.
•Large
Shareholder Risk —
From time to time, shareholders of the Fund may make relatively large
redemptions or purchases of Fund shares. These transactions may cause the Fund
to sell securities or invest additional cash, as the case may be, at
disadvantageous prices. Redemptions of a large number of shares also may
increase transaction and other costs or have adverse tax consequences for
shareholders of the Fund by requiring a sale of portfolio securities. Purchases
of a large number of shares may adversely affect the Fund’s performance to the
extent that it takes time to invest new cash and the Fund maintains a larger
cash position than it ordinarily would.
Non-Principal
Risks
In
addition to the principal investment risks described above, the Funds may also
invest or engage in, or be subject to risks associated with, the
following:
•Cybersecurity
Risk
— Investment companies, including the Funds, must rely in part on digital and
network technologies (collectively, “cyber networks”) to conduct their
businesses. Such cyber networks might in some circumstances be at risk of
cyber-attacks or failures. As a result, the Funds or their service providers, or
the issuers of securities in which the Funds invest, may experience disruptions
in business operations that may potentially result in financial losses, the
inability of the Funds or Fund shareholders to transact business, the inability
of the Funds to calculate a net asset value, violations of applicable privacy
and other laws (including unauthorized access to sensitive information about the
Funds or their investors), regulatory fines, penalties, reputational damage,
reimbursement or other compensation costs and/or additional compliance costs.
The Funds and their shareholders could be negatively impacted as a result.
Cyber-attacks might potentially be carried out by persons or organizations,
including foreign governments, using techniques, including electronically
circumventing network security, overwhelming websites, gathering intelligence,
engaging in ransomware attacks and social engineering functions aimed at
obtaining information necessary to gain access.
•Operational
Risk —
The Funds are exposed to operational risk arising from a number of factors,
including, but not limited to, human error, processing and communication errors,
errors of the Fund's service providers, counterparties or other third parties,
failed or inadequate processes and technology or system failures. The Funds seek
to reduce these operational risks through controls and procedures believed to be
reasonably designed to address these risks. However, these controls and
procedures cannot address every possible risk and may not fully mitigate the
risks that they are intended to address.
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ADDITIONAL INFORMATION ABOUT THE FUNDS’
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•Restricted
Securities Risk
— Restricted securities are privately-placed securities whose resale is
restricted under the U.S. securities laws. The Funds may invest in restricted
securities, including unregistered securities eligible for resale without
registration pursuant to Rule 144A (“Rule 144A Securities”) and privately-placed
securities of U.S. and non-U.S. issuers offered outside the U.S. without
registration with the U.S. Securities and Exchange Commission pursuant to
Regulation S (“Regulation S Securities”) under the 1933 Act. Rule 144A
Securities and Regulation S Securities may be freely traded among certain
qualified institutional investors, such as the Funds, but whose resale in the
U.S. is permitted only in limited circumstances. While restricted securities
offer attractive investment opportunities otherwise not available on an open
market, because such securities are available to few buyers, they are often both
difficult to sell and to value.
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ADDITIONAL
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DISCLOSURE
OF PORTFOLIO HOLDINGS |
A
full schedule of portfolio holdings for each Fund current as of month-end, is
available on the Funds’ website at www.rmbfunds.com approximately 30 days after
the end of each month. This information will remain available on the website at
least until the date on which the Funds file a Form N-CSR or Form N-PORT with
the U.S. Securities and Exchange Commission (the “Commission” or the “SEC”) for
the period or date that includes the date as of which the information is
current. The Trust may suspend the posting of this information or modify this
policy without notice to shareholders. A description of the Trust’s policies and
procedures with respect to the disclosure of the Trust’s portfolio securities is
available in the Statement of Additional Information (the “SAI”).
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ADDITIONAL INFORMATION ABOUT THE FUNDS’
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SHAREHOLDER
FEES
The
following definitions may be helpful in understanding the Funds’ shareholder
fees:
“Front-End
Sales Charge.”
An amount charged for the sale of Class A shares and reflected in the asked or
offering price.
“Asked
or Offering Price.” The
price at which a Fund’s shares may be purchased. The asked or offering price
includes the current net asset value per share (“NAV”) plus any front-end sales
charge.
“Contingent
Deferred Sales Charge or CDSC.”
A fee imposed when certain shares are redeemed less than one year after
purchase. Please refer to “Choosing a Share Class” for further information on
alternative purchase arrangements.
FUND
EXPENSES
The
following definitions may be helpful in understanding Fund
expenses:
“Management
Fees.” Fees
paid to the Adviser for the supervision of a Fund’s investment
program.
“Distribution
and Shareholder Servicing (Rule 12b-1) Fees.” Pursuant
to Rule 12b-1 under the 1940 Act, as amended, mutual funds may use some of their
assets to pay commissions to brokers, other marketing expenses and shareholder
service fees. Because these fees are paid out of the Fund’s assets on an
on-going basis, over time these fees will increase the cost of your investment
and may cost you more than paying other types of sales charges. You should take
Rule 12b-1 fees into account when choosing a Fund and share class.
“Other
Expenses.” Fees
paid by the Fund for miscellaneous items such as transfer agency, custodian,
administration, professional and registration fees.
The
Trust’s investment adviser is RMB, located at 115 South LaSalle Street, 34th
Floor, Chicago, Illinois, 60603. The Adviser was founded in 2005. RMB is an
independent diversified financial services firm with approximately $9.5
billion in regulatory assets under management, as of March 31, 2023,
that
provides advisory and investment services to individuals, institutions and
employers, utilizing both internally and externally managed investment products.
RMB is a wholly-owned subsidiary of RMB Capital Holdings LLC, which in turn, is
controlled by its board of directors. RMB commenced service as the investment
adviser to the RMB Fund and Financial Services Fund effective July 1, 2016. The
International Fund and Japan Fund commenced operations on or about December 27,
2017.
The
Small Cap Fund and SMID Cap Fund commenced operations as series of the Trust
upon completion of the IronBridge Reorganizations on June 21, 2019. Previously,
the Adviser served as investment adviser to the IronBridge Small Cap Fund
(predecessor to the Small Cap Fund) and the IronBridge SMID Cap Fund
(predecessor to the SMID Cap Fund) (collectively, the “IronBridge Predecessor
Funds”) since June 24, 2017.
Pursuant
to an investment advisory agreement, the Adviser is responsible for managing the
investment and reinvestment of each Fund’s assets in accordance with the Fund’s
investment objective and policies, including economic research, industry and
company analysis, the purchase and sale of portfolio securities and maintaining
books and records of the Fund. The Adviser also has overall responsibility for
the general management of the Funds’ operations, including arranging for and
assisting the Board with oversight of the services provided by third party
service providers. In return for its services, the Adviser receives a fee from
each Fund as set forth below under the heading “Management Fees and Expense
Limitation Agreement.”
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ADDITIONAL
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47 |
With
respect to the Financial Services Fund, the Adviser has entered into an
agreement with Mendon, which has been approved by the Board and the Fund’s
shareholders, pursuant to which Mendon provides the Fund with investment advice,
consistent with the Fund’s investment objective and policies, subject to the
oversight of the Adviser. The Adviser pays a sub-advisory fee to Mendon out of
the Adviser’s own assets. The Fund is not responsible for paying any portion of
the sub-advisory fee to Mendon.
ADVISORY
AND SUB-ADVISORY AGREEMENT APPROVAL
A
discussion regarding the Board of Trustees’ basis for approving (1) the
investment advisory agreement between the Trust, on behalf of each Fund, the
Adviser and (2) the investment sub-advisory agreement between the Adviser
and Mendon with respect to the Financial Services Fund, is included in the
semi-annual report for these Funds for the period ended June
30, 2022.
MANAGEMENT
FEES AND EXPENSE LIMITATION AGREEMENT
The
Adviser has contractually agreed to waive all or a portion of its management
fees and reimburse other expenses to the extent required so that each Fund’s
Total Annual Fund Operating Expenses do not exceed amounts specified for each
share class. The expense limitation agreement excludes the following expenses
for purposes of determining a Fund’s expense levels and the Adviser’s waiver and
reimbursement obligations: interest charges on Fund borrowings, taxes, brokerage
commissions, dealer spreads and other transaction costs, expenditures that are
capitalized in accordance with generally accepted accounting principles,
“Acquired Fund” (as defined in Form N-1A under the 1940 Act) fees and expenses,
short sale dividends, “extraordinary expenses” not incurred in the ordinary
course of a Fund’s business (e.g., litigation and indemnification), and any
other costs and expenses that may be approved by the Board of Trustees of the
Trust (the “Board”). Extraordinary expenses are expenses that are unusual or are
expected to recur infrequently, and may include, but are not limited to: (i)
expenses of the reorganization, restructuring or merger of a Fund, including the
acquisition of all the assets of a Fund or the acquisition by a Fund of another
fund’s assets, (ii) expenses of substantially rewriting and reformatting a
Fund’s disclosure documents (as distinguished from routine annual revisions and
updates), (iii) expenses of holding, and soliciting proxies for, a shareholder
meeting to consider and vote upon changes to a Fund’s investment policies and
restrictions, charter documents or other fundamental matters (as distinguished
from routine matters such as the election of Trustees or the approval of
accountants), and (iv) expenses of converting to a new custodian, transfer agent
or other service provider. The table below sets forth the expense limits agreed
to by the Adviser and the Trust for each Fund and share class, as a percentage
of the Fund’s average daily net assets.
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| Limit
on Total Annual Fund Operating Expenses |
|
| RMB
Fund |
Financial
Services Fund |
| Class
A |
1.59% |
1.80% |
| Class
C |
2.34% |
2.55% |
| Class
I |
1.34% |
1.55% |
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|
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|
|
|
|
|
|
|
|
|
|
| |
|
| Limit
on Total Annual Fund Operating Expenses |
|
| International
Fund |
Japan
Fund |
Small
Cap Fund |
SMID
Cap Fund |
| Investor
Class |
1.40% |
1.55% |
1.20% |
1.05% |
| Class
I |
1.15% |
1.30% |
0.95% |
0.80% |
The
Adviser’s expense waiver and reimbursement obligations under the agreement are
determined monthly, based on each Fund’s annualized expenses for the month. The
Adviser may recoup from a Fund fees and expenses waived and reimbursed by the
Adviser pursuant to the agreement for a period of three years following the date
on which the waiver or reimbursement occurred, provided that such recoupment
does not cause the Fund to exceed the expense limits in effect at the time of
the waiver/reimbursement or recoupment. The expense limitation agreement will
remain in effect through April
30, 2024
for each Fund, unless its continuance is approved by all parties to the
agreement, and cannot be terminated with respect to a Fund prior to such dates
without the approval of the Board. There can be no assurance that the Expense
Limitation Agreement will be continued, or that any other similar agreement will
be effective, after the end dates stated above.
|
|
| |
|
48
ADDITIONAL INFORMATION ABOUT THE FUNDS’
INVESTMENTS |
The
table below sets forth the management fees paid by the Funds for the fiscal year
ended December
31, 2022,
taking into account the Expense Limitation Agreement in effect with the
Adviser.
|
|
|
|
|
|
|
|
| |
| Fee
as a % of Average Daily NAV |
Contractual
Management Fee Rate for Fiscal Year Ended 12/31/22 |
Actual
Management Fee Rate (after Expense Limits for Fiscal Year Ended
12/31/22 |
| RMB
Fund |
0.60% |
0.60% |
| RMB
Mendon Financial Services Fund |
0.75% |
0.75% |
| RMB
International Fund |
0.75% |
0.75% |
| RMB
Japan Fund |
0.90% |
0.57% |
| RMB
Small Cap Fund |
0.85% |
0.67% |
| RMB
SMID Cap Fund |
0.70% |
0.59% |
Mendon
Mendon
is a registered investment adviser incorporated in the State of Delaware.
Mendon’s principal office is located at 31 Ocean Reef Drive, Suite C101 #249,
Key Largo, Florida 33037. Mendon has been providing investment advisory services
that focus on the financial services industry since 1996 and has served as the
Financial Services Fund’s sub-adviser since its inception in 1999. For services
provided to these Funds, the Adviser (and not the Funds) pay the sub-adviser at
the rates set forth in the sub-advisory agreement.
The
Adviser’s and the Sub-Adviser’s investment and portfolio decision-making process
is based on a team approach. For each Fund, a portfolio manager from the
investment team has primary responsibility for the day-to-day management of the
Fund. Information regarding each Fund’s portfolio manager, the portfolio
manager’s title and length of service is set forth below. The SAI provides
additional information about each portfolio manager’s compensation, other
accounts under management, and ownership of securities in their respective
Fund(s).
|
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| |
|
ADDITIONAL
INFORMATION ABOUT THE FUNDS’ INVESTMENTS
49 |
|
|
|
|
|
|
|
|
| |
| Portfolio
Manager |
Primary
Role |
Title
and Recent Biography |
|
Todd
Griesbach, CFA
RMB
Fund
|
Responsible
for the day-to-day management of the RMB Fund’s investment portfolio since
July 2016. |
Senior
Vice President and Portfolio Manager of the Adviser (since
2011). |
|
Christopher
C. Faber
RMB
Small Cap Fund
RMB
SMID Cap Fund
|
Mr.
Faber, Senior Vice President and Portfolio Manager of the Adviser, has had
primary day-to-day responsibility for the management of the Fund’s
portfolio since inception of its predecessor fund in August 2002. Prior to
joining the Adviser in 2017, Mr. Faber was the President and a portfolio
manager of IronBridge Capital Management, L.P. (“IronBridge”) from 1999 to
2017. Mr. Faber was a founding partner of HOLT Value Associates, L.P., the
former parent company of IronBridge, from May 1986 to April
1999. |
Senior
Vice President and Portfolio Manager of the Adviser (since
2017). |
|
Anton
Schutz
Financial
Services Fund
|
Responsible
for the day-to-day management of the Financial Services Fund’s investment
portfolio since inception in 1999. Mr. Schutz is Mendon's Lead Portfolio
Manager for the Financial Services Fund and has final decision-making
authority with respect to the Fund's other portfolio managers. |
President
and Portfolio Manager of Mendon (since 1996). |
|
Masa
Hosomizu, CFA
Japan
Fund
International
Fund |
Responsible
for the day-to-day management of the Japan Fund’s investment portfolio
since inception in December 2017. Responsible for the day-to-day
management of the International Fund’s investment portfolio since 2019.
Mr. Hosomizu is the Adviser's Lead Portfolio Manager for the Japan Fund
and International Fund and has final decision-making authority with
respect to the Fund's other portfolio managers. |
Partner
and Portfolio Manager of the Adviser (since 2013). Prior experience
includes: Coghill Capital Management (Portfolio Manager) (2009 to 2013),
(Research Analyst) (2005 to 2008); Nomura Securities (various roles
including Equity Research Sales and Wealth Management Advisor) (1998 to
2005). Mr. Hosomizu received a BA in Law from the University of Tokyo and
an MBA from the University of Chicago. |
|
IIhwa
Lee
Japan
Fund |
Responsible
for the day-to-day management of the Japan Fund’s investment portfolio
since May 2022. |
Vice
President and Portfolio Manager of the Adviser (since 2017). Prior
experience includes: Crystal Rock Capital Management, Equity Research
Analyst (2016-2017); Cambridge Associates Asia Pte Ltd, Investment
Director (2012-2015); Artisan Partners, Equity Research Intern (2011); and
Mirae Asset Securities, Quant Analyst (2007-2010). Mr. Lee received a BA
in Economics and Psychology from Seoul National University and an MBA from
the University of Chicago Booth School of Business. |
|
Jim
Plumb
International
Fund |
Responsible
for the day-to-day management of the International Fund’s investment
portfolio since May 2022. |
Vice
President and Portfolio Manager of the Adviser (since June 2017). Prior
experience includes: IronBridge Capital Management (Senior Equity Analyst)
(2005 to 2017). |
|
Dan
GoldFarb
Financial
Services Fund |
Responsible
for the day-to-day management of the Financial Services Fund’s investment
portfolio since May 2022. |
Portfolio
Manager of Mendon (since September 2020). Prior experience includes:
Self-employed from 2019 to 2020; Portfolio Manager at AlphaOne Micro Cap
Fund (2017 to 2019). Mr. GoldFarb received a BA from Hobart College and an
MBA from the Owen Graduate School of Management, Vanderbilt
University. |
|
|
| |
As
an investor, you have flexibility in choosing a share class, setting up your
account, making exchanges between funds in the Trust (including the Funds
offered in this Prospectus), and withdrawing money from your account. In this
section, you will find detailed information about the various options available
to you. It is important to read the entire section so that you will understand
all of the factors — including tax liability, sales charges and transaction
volume — that should influence your investment decisions.
Information
about the manner in which the Funds offer shares is set forth below in this
section and subsequent sections of this Prospectus. Information relating to
eligibility to invest in a particular share class, minimum investment amounts,
investor services, and sales charge reductions and waivers applies if you are
transacting directly with the Funds. Shares of the Funds are also available
through certain financial intermediaries, such as a
|
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50
ADDITIONAL INFORMATION ABOUT THE FUNDS’
INVESTMENTS |
bank
or broker-dealer. If you invest through an intermediary, you are not transacting
directly with a Fund and you must follow that intermediary’s transaction
procedures which may include different requirements to invest in a particular
share class, minimum investment amounts, investor services, and sales charge
reductions and waivers. Your intermediary may impose charges for its services in
addition to the fees charged by the Funds. You should consult with your
intermediary for information regarding its conditions, procedures, and fees for
transacting in Fund shares. The Funds are not responsible for the implementation
of any intermediary’s transaction procedures or sales charge reductions and
waivers. Appendix A to this Prospectus sets forth a description of the sales
charge reductions and waivers applicable to Fund shares purchased through
Raymond James & Associates, Inc., Janney Montgomery Scott LLC, Oppenheimer
& Co. Inc., Robert W. Baird & Co.,
and Ameriprise Financial as
such information was provided to the Fund by the intermediary.
DISTRIBUTION
AND SHAREHOLDER SERVICE FEES
The
Trust has adopted a plan on behalf of the Funds pursuant to Rule 12b-1 of the
1940 Act (the “12b-1 Plan”) which allows the Funds to pay distribution and
shareholder service fees for the sale and distribution of its Investor Class
shares (when available) and the maintenance of shareholder
accounts.
Foreside
Fund Services, LLC, the Funds’ principal underwriter (the “Distributor”), serves
as the Funds’ distributor in connection with the offering of the Funds’ shares.
The Distributor may enter into arrangements with banks, broker-dealers and other
financial institutions through which investors may purchase or redeem
shares.
The
Distributor is not affiliated with the Adviser, the Sub-Adviser or their
affiliates.
For
Class A shares of the RMB Fund and the Financial Services Fund, the maximum
annual fee payable to the Distributor for such distribution and/or shareholder
services is 0.25% of the average daily net assets of such shares. For Class C
shares, the maximum annual fees payable to the Distributor for distribution and
shareholder services are 0.75% and 0.25%, respectively, of the average daily net
assets of such shares. Since these fees are paid out of each Fund’s assets
attributable to that Fund’s Class A shares and Class C shares, respectively,
these fees will increase the cost of your investment and, over time, may cost
you more than paying other types of sales charges. The net income attributable
to Class A shares and Class C shares will be reduced by the amount of
distribution and service fees and other expenses of the Fund associated with
that respective class of shares. The Distributor may pay any or all amounts
received under the 12b-1 Plan to other persons for any distribution or services
provided by such persons to the Fund. Payments under the 12b-1 Plan are not tied
exclusively to expenses actually incurred by the Distributor or others and the
payments may exceed or be less than the amount of expenses actually
incurred.
The
Adviser is entitled to retain all fees related to the 12b-1 Plan for the first
12 months on any investment in Class C shares to recoup its expenses with
respect to the payment of up-front commissions paid for Class C shares.
Financial intermediaries will become eligible for compensation under the 12b-1
Plan beginning in the 13th month following the purchase of Class C shares,
although the Distributor or Adviser may, pursuant to a written agreement between
the Distributor or Adviser and a particular financial intermediary, pay such
financial intermediary these fees prior to the 13th month following the purchase
of Class C shares. Up-front payments to broker-dealers or financial advisors are
financed solely by the Adviser and are not financed by investors or the Fund.
The Adviser also receives any contingent deferred sales charges paid with
respect to Class C shares.
For
Investor Class shares of the International Fund, Japan Fund, Small Cap Fund and
SMID Cap Fund, pursuant to the 12b-1 Plan, the maximum annual fee payable to the
Distributor for such distribution and/or shareholder services is 0.25% of the
average daily net assets of the Investor Class shares. Since these fees are paid
out of each Fund’s assets attributable to the Investor Class shares, these fees
will increase the cost of your investment and, over time, may cost you more than
paying other types of sales charges. The net income attributable to Investor
Class shares will be reduced by the amount of distribution and service fees and
other expenses of the Fund associated with those shares. The Distributor may pay
any or all amounts received under the 12b-1 Plan to other persons for any
distribution or services provided by such persons to the Fund. Payments under
the 12b-1 Plan are not tied exclusively to expenses actually incurred by the
Distributor or others and the payments may exceed or be less than the amount of
expenses actually incurred.
To
assist investors in comparing classes of shares, the table under the Prospectus
heading “Fees and Expenses of the Fund” provides a summary of expenses of the
Fund applicable to each class of shares offered in this Prospectus.
Why
provide different share classes?
By
offering different share classes, a Fund allows you to choose the method of
purchasing shares that is the most beneficial given the amount of your purchase,
length of time you expect to hold your shares, the fees for each share class and
other relevant circumstances. Each investor’s personal situation is different
and you may wish to discuss with your financial intermediary the share classes
the Funds offer, which share classes are available to you and which share class
is appropriate for you.
The
RMB Fund and Financial Services Fund offer Class A, Class C and Class I
shares.
The
International Fund, Japan Fund, Small Cap Fund, and SMID Cap Fund offer Class I
shares. Investor Class shares are not available for purchase.
Class
A Sales Charges and Fees*
|
|
| |
|
•The
front-end sales charge varies based on the amount you invest and is
included in the offering price. See schedule of sales charge breakpoints
below.
•Rule
12b-1 fee of 0.25% annually of average NAV for the RMB Fund and Financial
Services Fund. |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Sales
Charge as a % of |
|
| Amount
invested |
Offering
Price |
Net
Amount Invested |
Dealer
Concession or Agency Commission As a Percentage of Offering
Price |
| less
than $50,000 |
5.00% |
5.26% |
4.50% |
| $50,000
but less than $100,000 |
4.50% |
4.71% |
4.00% |
| $100,000
but less than $250,000 |
4.00% |
4.17% |
3.50% |
| $250,000
but less than $500,000 |
3.00% |
3.09% |
2.75% |
| $500,000
but less than $1,000,000 |
2.00% |
2.04% |
1.75% |
| $1,000,000
and above |
— |
— |
— |
Class
C Sales Charges and Fees
|
|
| |
|
•CDSC
of 1.00% for a purchase to redemption period of less than one year. The
CDSC is calculated from the NAV of the shares redeemed at the time of
purchase or sale, whichever is lower. No sales charge would be paid
thereafter.
•Rule
12b-1 fee of 0.75% and shareholder service fee of 0.25% annually of
average daily NAV.
•Maximum
purchase $500,000. |
Shares
not subject to a CDSC are redeemed first; remaining shares are redeemed in the
order purchased. No CDSC applies to shares that:
•Represent
increases in the NAV above the net cost of the original investment
•Were
acquired through reinvestment of dividends or distributions
•Class
C shares do not convert to any other class of shares
Class
I Shares
You
may buy Class I shares without paying a sales charge. The Class I shares are
available to all investors directly from the Trust or through a financial
intermediary, including but not limited to, financial advisors, retirement
plans, broker-dealers and bank trust departments. To meet the minimum initial
investment amount described under “How to Buy Shares,” investors may consider
aggregating multiple accounts with common ownership and financial advisors may
consider aggregating multiple client accounts within the Trust. Class I share
accounts offered through a service organization may meet the minimum initial
investment amount by aggregating multiple accounts within the Trust. Exceptions
to the Class I share investment minimums may apply for qualified retirement
plans and other account types with lower or no networking and/or omnibus fees
charged to the Trust. The Trust reserves the right to change the amount of
minimums through service organizations from time to time or to waive them in
whole or in part.
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 fee
tables or the expense examples in the Fund Summaries above.
Class
I shares may also be available on brokerage platforms of firms that have
agreements with the Distributor 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
shares through one of these programs, you may be required to pay a commission
and/or other forms of compensation to the broker. Shares of each Fund are
available in other share classes that have different fees and
expenses.
Holders
through Financial Intermediaries:
Investors who hold Class I shares of the Funds through a fee-based program at a
financial intermediary but who subsequently become ineligible to participate in
the program, withdraw from the program, or change to a non-fee based program,
may be subject to conversion of their Class I shares by their financial
intermediary to another class of shares of the Funds having expenses (including
Rule 12b-1 fees) that may be higher than the expenses of the Class I shares.
Investors should contact their program provider to obtain information about
their eligibility for the provider’s program and the class of shares they would
receive upon such a conversion. Investors do not pay a sales charge, including a
CDSC, upon the conversion of their Class I shares to Class A shares. Such
conversions are not expected to be a taxable event for federal income tax
purposes. Investors are not charged a redemption/exchange fee by the
Fund.
Investor
Class Shares
The
Investor Class shares are not currently available for purchase. When available,
you may buy Investor Class shares without paying a sales charge. The Investor
Class shares have lower investment minimums than the Class I shares and are
subject to an annual Rule 12b-1 distribution fee of 0.25% (discussed above in
the section entitled “Understanding Fund Fees and Expenses – Distribution and
Shareholder Servicing (Rule 12b-1) Fees”).
Under
certain conditions, as noted below, the following investors can buy Class A
shares without a sales charge:
•Shareholders
of the RMB Fund who purchased shares directly from the Fund before August 27,
1998
•Officers,
directors, trustees, employees of the Adviser, the Distributor, certain other
service providers and any of their affiliated companies and immediate family
members of any of these people
•Employer-sponsored
retirement plans having more than 25 eligible employees or a minimum of $250,000
in plan assets
•Employees
of dealers that are members of the Financial Industry Regulatory Authority,
members of their immediate families and their employee benefit
plans
•Certain
trust companies, bank trust departments and investment advisers that invest on
behalf of their clients and charge account management fees
•Participants
in no-transaction fee programs of discount brokerages that maintain an omnibus
account with the Trust
•Individuals
investing distributions from tax-advantaged savings and retirement
plans
•All
retirement plan transfer of assets established directly with the Trust utilizing
BNY Mellon Investment Services as the plan’s custodian
•Shares
purchased with reinvested dividends
CDSCs
will be waived on redemptions of Class C shares in connection with:
•Distributions
from certain employee tax-qualified benefit plans
•The
shareholder’s death or disability
•Withdrawals
under an automatic withdrawal plan, provided the annual withdrawal is less than
10% of your account’s original value
*Please
see Appendix A in this Prospectus for a description of variations in sales
charges and waivers for Fund shares purchased through Raymond James, Janney
Montgomery Scott, Oppenheimer & Co., Robert
W. Baird & Co., and Ameriprise Financial.
|
|
| |
|
WAYS
TO REDUCE SALES CHARGES* |
Under
certain conditions, investors can reduce or eliminate sales charges on Class A
shares provided that sufficient identifying information is supplied at the time
of each purchase.
Combined
Purchase
Purchases
made at the same time by an individual, his or her spouse and any children under
the age of 21 are added together to determine the sales charge rate. You may
request that your total aggregate purchase in all Funds, regardless of share
class, be taken into consideration when calculating your total purchase for
purposes of determining the applicable sales load.
Right
of Accumulation
If
you, your spouse or any children under the age of 21 already hold shares of any
Fund, the sales charge rate on additional purchases of Class A shares can be
based on the total current NAV of your aggregate holdings in all Funds. You may
request that your aggregate NAV of all shares held in all Funds, regardless of
share class, be taken into consideration when calculating your combined
total.
Letter
of Intent
This
non-binding agreement allows you to purchase Class A shares over a period of 13
months with the sales charge that would have applied if you had purchased them
all at once.
Please
note:
You
must advise your dealer, the transfer agent or the Fund that you believe you
qualify for a reduction and/or waiver in sales charges at the time of each
purchase in addition to providing proof of your eligibility. Failure to provide
such notification and proof may result in the assessment of a sales load that
you otherwise would not have been required to pay. Additional information
concerning sales charges is available in the SAI. Sales charge information
contained in this Prospectus and the SAI is also available free of charge on the
Funds’ website at www.rmbfunds.com by using the direct hyperlinks to these
documents.
*Please
see Appendix A in this Prospectus for a description of variations in sales
charges and waivers for Fund shares purchased through Raymond James, Janney
Montgomery Scott, Oppenheimer & Co., Robert
W. Baird & Co., and Ameriprise Financial.
|
|
| |
|
Calculation
of net asset value |
Each
Fund calculates the NAV of each share
class as of the close of regular trading on the New York Stock Exchange (the
“NYSE”) (generally 4:00 p.m. Eastern Time) on each business day that the NYSE is
open for regular trading. The NYSE is not open, and the Funds will not calculate
an NAV or be available for purchase, redemption, or exchange, on certain
federal
holidays. If the NYSE closes early, the time for calculating the NAV and the
deadline for share transactions will be accelerated to the earlier closing time.
Purchase and redemption orders received by the Trust’s transfer agent before the
regular close of the NYSE will be executed at the offering price calculated at
that day’s closing.
The
NAV of each share
class of a Fund is the total value of its assets attributable to a class less
its liabilities attributable to that class, divided by the total number of
outstanding Fund shares of that class. Each Fund values the securities in its
portfolio on the basis of official closing or last reported sale prices on the
security’s primary exchange, the mean of the closing or last reported bid and
ask prices for the security and valuations provided by independent pricing
services. In addition, the values of foreign securities denominated in non-U.S.
dollar currencies will be converted to U.S. dollars utilizing foreign exchange
rates in effect as of the time established for determining the respective Fund’s
NAV. When valuations from such pricing sources are not readily available or
determined by the Adviser to be unreliable, a Fund will use a security’s fair
value as determined by
the Adviser in its capacity as “valuation designee” pursuant to Rule 2a-5 under
the 1940 Act. The Adviser makes fair value determinations pursuant
to procedures approved by the Board. When fair valuation is used to price
securities, the values for those securities may be higher or lower than values
used by another fund to price the security. Also, the use of fair valuation may
cause the Fund’s performance to diverge to a greater degree from the performance
of various benchmarks used to compare the Fund’s performance because benchmarks
generally do not use fair valuation
techniques.
Because of the judgment involved in fair valuation decisions, there can be no
assurance that the value ascribed to a particular security is accurate.
The
Adviser
uses
a third-party vendor’s proprietary fair value pricing model to assist in
determining current valuation for foreign securities traded in markets that
close prior to the NYSE. When fair value pricing is employed, the value of the
portfolio security used to calculate the Funds’ NAV may differ from quoted or
official closing prices. Due to the subjective and variable nature of fair value
pricing, it is possible that the value determined for a particular security may
be materially different from the value realized upon its sale. It is possible
that market timers may attempt to buy or sell Fund shares to profit from price
movements in foreign markets that are not yet reflected in a Fund’s NAV. Such
trades may have the effect of reducing the value of existing shareholders’
investments. The Adviser’s
use of fair value pricing is designed to more accurately reflect the current
market value of a portfolio security and to minimize the possibilities for
time-zone arbitrage; however, the fair
valuation
process may not be effective in preventing to prevent short-term NAV arbitrage
trading.
Please
see the section of the SAI entitled “Net
Asset Value”
for additional information.
Important
information about opening a new account with the Funds
In
furtherance of the national effort to stop the funding of terrorism and to
curtail money laundering, the USA PATRIOT Act and other Federal regulations
require financial institutions, including mutual funds, to adopt certain
policies and programs to prevent money laundering activities, including
procedures to verify the identity of all investors opening new accounts.
Accordingly, when opening a new account you will be required to complete the
Trust’s new account application and supply the Trust with certain information
for all persons owning or permitted to transact in an account. This information
includes: name, date of birth, taxpayer identification number and street
address. Also, as required by law, the Trust employs various procedures, such as
comparing the information you provide against fraud databases or requesting
additional information or documentation from you, to ensure that the information
supplied by you is correct. Until it has received your new account application
and the required verifications are made, the Trust may reject, cancel, suspend,
or limit your share purchase orders. In addition, the Trust may close your
account if it is unable to verify your identity.
The
Trust generally will not accept new account applications to establish an account
with a non-U.S. address or for a non-resident alien. Puerto Rico, Guam and U.S.
military addresses are acceptable.
The
table below sets forth the minimum initial and subsequent purchase amounts
required for each share class and type of account.
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|
|
|
|
|
|
|
|
| |
|
|
| Minimum
Initial Investment |
Minimum
Subsequent Investment |
|
|
| Class A,
Class C and Investor Class* |
Class
I |
Class A,
Class C and Investor Class* |
Class
I |
| All
Funds |
Regular
Account |
$2,500 |
$100,000 |
$500 |
$25,000 |
| RMB
Fund and Financial Services Fund |
Automatic
Investment Program, IRA and minor custodial account |
$100 |
$100,000 |
$50 |
$25,000 |
| International
Fund, Japan Fund, Small Cap Fund, and SMID Cap Fund |
Automatic
Investment Program, IRA and minor custodial account |
$2,500 |
$2,500 |
$500 |
$500 |
* Note:
Investor Class is not yet available for purchase.
** Shareholders
who hold shares issued to them pursuant to the IronBridge Reorganization are
subject to a $1,000 minimum for subsequent investments in Class I.
The
Funds’ minimum investment amounts may be waived or charged at the Trust’s
discretion. Minimums for Class I shares are waived for automated or
pre-established exchanges (including tax-free cross class exchanges); asset
allocation models; fee-based wrap programs; systematic purchase exchanges or
dollar cost averaging programs.
|
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|
|
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|
|
| |
|
Method |
|
Procedure |
|
|
| |
| Mail |
Open
an account |
Complete
and sign the new account application form. Send a check drawn on a U.S.
bank for at least the minimum amount required. Make the check payable to
“RMB Investors Trust.” Send the check and application form to the address
below. |
|
|
| |
|
| Open
an IRA |
Shares
of the Trust are available for purchase through IRAs and other retirement
plans. An IRA application and further details about IRAs and other
retirement plans are available from the transfer agent by calling
1-800-462-2392 or your investment professional. |
|
|
| |
|
| Subsequent
purchase |
Send
in a check for the appropriate minimum amount (or more) with your account
name and number. For your convenience, you may use the deposit slip
attached to your quarterly account statements. |
|
|
| |
| Federal
Funds Wire |
Subsequent
purchase |
This
option is available to existing open accounts only. New accounts must
complete a new account application form and forward payment to the address
listed below.
Please
contact the transfer agent at 1-800-462-2392 for wire
instructions. |
|
|
| |
| Automatic
Investment Program (Investor Class only) |
| You
can make automatic monthly, quarterly or annual purchases (on the 5th or
15th day of each month) of $100 or more. To activate the automatic
investment plan, complete an account application notifying the Trust. You
may change the purchase amount or terminate the plan at any time by
writing to the Trust. |
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| Electronic
Funds Transfer |
| To
purchase shares via electronic funds transfer, check this option on your
account application form. Your bank must be a member of the ACH
system. |
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| Authorized
Broker/Dealer or Investment Professional |
| Contact
your broker/dealer or investment professional to set up a new account,
purchase fund shares, and make subsequent investments. Purchase orders
that are received by your broker/dealer before 4:00 p.m. Eastern Time on
any business day and properly forwarded by the broker/dealer or investment
professional to the transfer agent will receive that day’s NAV. Your
broker/dealer or investment professional is responsible for properly
forwarding completed orders to the Trust’s transfer agent. Broker/dealers
or investment professionals may charge their customers a processing or
service fee in connection with the purchase of fund shares that are in
addition to the sales and other charges disclosed in this Prospectus.
Shareholders should check with their broker/dealer or investment
professional for specific information about any processing or service fees
that they may be charged. |
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| Send
regular mail to: |
| Send
overnight mail to: |
Call
shareholder service agent: |
RMB
Investors Trust
c/o BNY Mellon Asset Servicing
P.O. Box
534464
Pittsburgh, PA 15253-4464 |
| RMB
Investors Trust
c/o BNY Mellon Asset Servicing
Attn: 534464
500
Ross Street, 154-0520
Pittsburgh, PA 15262 |
BNY
Mellon Asset Servicing
toll-free at
1-800-462-2392 |
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Method |
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Procedure |
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| By
Mail |
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Send
a letter of instruction, an endorsed stock power or share certificates (if
you hold certificate shares) to “RMB Investors Trust” to the address
below. Please be sure to specify:
• the
name of the fund(s) you wish to exchange or redeem;
• your
account number; and
• the
dollar value or number of shares you wish to sell
Include
all necessary signatures and any additional documents as well as a
medallion signature guarantee if required. (See “What is a Medallion
Signature Guarantee?” below). |
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| By
Telephone |
| As
long as the transaction does not require a written or medallion signature
guarantee, you or your financial professional can sell shares by calling
the Trust at 1-800-462-2392. Press 1 and follow the automated menu to
speak to a customer service representative. A check will be mailed to you
on the following business day. The Trust has procedures to verify that
your telephone instructions are genuine. These may include asking for
identifying information and recording the call. As long as the Trust and
its representatives take reasonable measures to verify the authenticity of
the call, you will be held responsible for any losses cause by
unauthorized telephone orders. |
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| Authorized
Broker/Dealer or Investment Professional |
| If
you invest through an authorized broker/dealer or investment professional,
they can sell or exchange shares for you. Broker/dealers or investment
professionals may charge their customers a processing or service fee in
connection with the redemption or exchange of fund shares that are in
addition to the sales and other charges described in this Prospectus.
Shareholders should check with their broker/dealer or investment
professional for specific information about any processing or service fees
that they may be charged. |
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| Systematic
Withdrawal Plans |
| If
you have an account balance equal to the greater of (i) the minimum
initial investment amount applicable to your share class and account type
or (ii) $5,000, you may elect to have monthly, quarterly or annual
payments of a specified amount ($50 minimum) sent to you or someone you
designate. The Trust does not charge for this service. See “Systematic
Withdrawal Plan” information below. |
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| By
Federal Funds Wire |
| Confirm
with the Trust that a wire redemption privilege, including your bank
designation, is in place on your account. Once this is established, you
may request to sell shares of any Trust fund. Proceeds will be wired to
your pre-designated bank account. See “Federal Funds Wire” information
below. |
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| By
exchange |
| Read
this Prospectus before making an exchange. You may only exchange fund
shares for shares of another fund in the Trust of the same class. Call RMB
Investors Trust at 1-800-462-2392. Press 1 and follow the automated menu
to speak to a customer service representative to place your
exchange. |
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| Send
regular mail to: |
| Send
overnight mail to: |
Call
shareholder service agent: |
RMB
Investors Trust
c/o BNY Mellon Asset Servicing
P.O. Box
534464
Pittsburgh, PA 15253-4464 |
| RMB
Investors Trust
c/o BNY Mellon Asset Servicing
Attn: 534464
500
Ross Street, 154-0520
Pittsburgh, PA 15262 |
BNY
Mellon Asset Servicing
toll-free at
1-800-462-2392 |
Paying
for shares
All
purchases must be made in U.S. dollars and checks must be drawn on U.S. banks.
Please note that cash, credit cards, traveler’s checks, credit card checks,
cashier’s checks, starter checks from newly established checking accounts or
money orders will not be accepted. For Fund shares purchased by check, if your
check does not clear for
any
reason, your purchase will be canceled. If your purchase is canceled due to
insufficient funds, an incomplete, missing or unverified new account
application, or for any other reason, you will be liable for any losses or fees
imposed by your bank and may be liable for losses to the Trust resulting from
your canceled order. If you are a current shareholder, the Trust may redeem some
or all of your shares to cover such loss.
Third
party checks
Third
party checks will not be accepted.
Federal
funds wires
A
federal funds wire transaction must total at least $5,000. Your bank may also
charge a fee to send or receive wires.
Telephone
transactions
The
Trust has procedures to verify that your telephone instructions are genuine.
These may include asking for identifying information and recording the call. As
long as the Trust and its representatives take reasonable measures to verify the
authenticity of calls, you will be held responsible for any losses caused by
unauthorized telephone orders.
Regular
Investing and Dollar-Cost Averaging
Dollar-cost
averaging is the practice of making regular investments over time. When share
prices are high, your investment buys fewer shares. When the share price is low,
your investment buys more shares. This generally lowers the average price per
share that you pay over time.
Dollar-cost
averaging cannot guarantee you a profit or prevent losses in a declining
market.
Other
Policies
Under
certain circumstances, the Trust reserves the right to:
•Suspend
the offering of shares
•Reject
any exchange or investment order
•Change,
suspend or revoke exchange privileges
•Suspend
the telephone order privilege without advance notice to
shareholders
•Satisfy
a redemption order by paying redemption proceeds with portfolio securities or
non-cash assets for certain large orders
•Suspend
or postpone your right to sell Fund shares on days when trading on the NYSE is
restricted, or as otherwise permitted by the Commission
•Change
the investment minimums or other requirements for buying or selling shares, or
waive minimums and requirements for certain investors
You
may redeem your shares in the Funds on any business day. The proceeds are
generally sent out within three business days after your order is executed. Sale
proceeds may be delayed beyond the normal three business days:
•In
unusual circumstances where the law allows additional time if
needed
•If
a check you wrote to buy shares has not cleared by the time you sell the
shares
If
you think you will need to redeem shares soon after buying them, you can avoid
the check clearing time (which may be up to 15 days) by investing by wire or
certified check.
The
Funds typically expect to meet redemption requests by paying out proceeds from
cash or cash equivalents held in their portfolios, or by selling other portfolio
holdings or borrowed under the Funds’ line of credit. The Funds reserve the
right to redeem “in-kind” as described under “Redemption in Kind,” below. The
Funds may use any of these methods of satisfying redemption requests under
stressed or normal market conditions. During periods of distressed market
conditions, when a significant portion of a Fund’s portfolio may be comprised of
less-liquid investments, a Fund may be more likely to pay proceeds by giving you
securities.
The
Funds reserve the right to pay redeeming shareholders with large accounts
securities instead of cash in certain circumstances. The
Funds have elected under Rule 18f-1 under the 1940 Act to pay all redemptions of
Fund shares by a single shareholder during any 90-day period in cash, up to the
lesser of (i) $250,000 or (ii) 1% of the Fund's net assets measured as of the
beginning of such 90-day period.
If your shares are redeemed in kind, then you will incur transaction costs when
you subsequently sell the securities distributed to you. Redemptions in kind are
taxable for federal income tax purposes in the same manner as redemptions for
cash.
What
is a medallion signature guarantee?
A
medallion signature guarantee verifies that your signature is authentic. Most
banks and financial institutions can provide you with a medallion signature
guarantee, provided that the financial institution participates in the Medallion
Program. Some financial institutions charge a fee, but it is usually waived if
you are a customer of the financial institution. The three recognized medallion
programs are Securities Transfer Agents Medallion Program, Stock Exchanges
Medallion Program and New York Stock Exchange, Inc. Medallion Signature
Program.
A
notary public cannot provide a medallion signature guarantee.
You
will need a medallion signature guarantee on a written request to sell shares in
certain cases, including:
•When
selling more than $50,000 worth of shares
•When
you want your check to be payable to someone other than the owner of record, or
sent somewhere other than the address of record
•When
you want the proceeds sent by wire or electronic transfer to a bank account you
have not designated in advance
•When
you would like a check mailed to an address that has been changed within 30 days
of your redemption request
You
may exchange shares of your Fund at NAV for shares of the same class of another
fund in the Trust based on the funds’ respective NAVs, provided you meet the
investment requirements of the fund for which you wish to exchange your shares
as described in that fund’s Prospectus under “How to Buy Shares.” An exchange of
shares of a fund for shares of another fund is a taxable event and has the same
tax consequences as a sale or redemption. The Trust’s general policy is that
sales charges on investments entering the Trust should be applied only once.
Therefore, you may exchange shares freely between funds within the same share
class without paying additional sales charges. Special tax rules may apply. See
the “Federal Income Taxes” section of the SAI.
In
limited circumstances, the Trust may permit beneficial holders with financial
intermediary sponsored fee-based programs to exchange their shares in a
particular share class of a Fund for shares in a different share class of the
same Fund if the shareholder meets the eligibility requirements for that class
of shares or the shareholder is
otherwise
eligible to purchase that class of shares. Such an exchange is generally a
non-taxable exchange for federal income tax purposes. Except as noted above,
exchanges must meet the investment requirements of the applicable
Fund.
Each
Fund reserves the right to modify this policy in the future. The Funds may
restrict or cancel the exchange privilege of any person that, in the opinion of
the Funds, is using market timing strategies.
Frequent
trades in your account or accounts controlled by you can disrupt portfolio
investment strategies and increase Fund expenses, including brokerage and
administrative costs, and may also dilute the value of the holdings of other
shareholders of the Fund. The Board has adopted policies and procedures designed
to discourage short-term trading of Fund shares. Fund shares are not intended
for market timing or excessive trading and no Fund accommodates short-term
trading. The Trust or its agents reserve the right to restrict, reject, or
cancel (with respect to cancellation, on the next business day after the receipt
of the order), without any prior notice, any purchase orders (including exchange
purchases) by any investor or group of investors indefinitely for any reason,
including in particular, purchase orders that they believe are attributable to
market timers or are otherwise excessive or potentially disruptive to the
Funds.
This
policy applies to transactions accepted by any investor’s financial
intermediary. In the event that an exchange request is rejected or cancelled,
neither the redemption nor the purchase side of the exchange will be processed.
The Trust reserves the right to delay for one business day the processing of
exchange requests in the event that, in the Trust or its agents’ judgment, such
delay would be in a Fund’s best interest, in which case both the redemption and
the purchase side of the exchange will receive the Fund’s NAV at the conclusion
of the delay period.
Specifically,
to deter market timing and excessive trading, the Trust or its agents undertake
to temporarily or permanently restrict, reject, or cancel, without any prior
notice, purchase and exchange orders of any investor who makes more than two
exchanges (each exceeding $10,000 in value) out of a Fund within 30 days of each
other.
Certain
automated or pre-established exchange, asset allocation, systematic purchase,
exchange or redemption, or dollar cost average programs are exempt from this
policy. This policy may be modified for accounts held by certain retirement
plans to conform to plan exchange limits or Department of Labor regulations.
These exchange limits are subject to the Trust’s ability to monitor exchange
activity, as discussed under “Limitations on the Ability to Detect and Curtail
Excessive Trading Practices” below. In applying this policy, the Trust considers
the information available to it at the time and may consider trading done in
multiple accounts known to be under common ownership, control or
influence.
Limitations
on the Ability to Detect and Curtail Excessive Trading Practices.
Shareholders
seeking to engage in excessive trading practices may deploy a variety of
strategies to avoid detection and, despite the best efforts of the Trust to
prevent excessive trading, there is no guarantee that the Trust or its agents
will be able to identify such shareholders or curtail their trading practices.
The Trust receives Fund purchase, exchange and redemption orders through
financial intermediaries and cannot always know or reasonably detect excessive
trading that may be facilitated by these intermediaries or by the use of omnibus
account arrangements offered by these intermediaries to investors. Omnibus
account arrangements are common forms of holding shares of a Fund, particularly
among financial intermediaries such as brokers, retirement plans and variable
insurance products. These arrangements often permit financial intermediaries to
aggregate their clients’ share ownership positions and to purchase, redeem and
exchange Fund shares where the identity of the particular shareholder(s) is not
known to a Fund.
The
Trust reserves the right to close your account upon 60 days’ notice if, due to
redemptions and not as a result of a decline in market value, your balance is
less than the minimum initial investment amount applicable to such share class
and account type. If the Trust redeems your shares and closes your account, you
may recognize a gain or loss for federal income tax purposes.
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Escheatment
of Shares to States |
If
no account activity occurs in your account within the time period specified by
applicable state law, the assets in your account may be considered abandoned and
transferred (also known as “escheated”) to the appropriate state. The
escheatment time period varies by state. The Trust is not responsible for
notifying shareholders if or when a state may escheat an investor’s shares of a
Fund.
To
help protect their accounts, shareholders should keep their accounts up-to-date
and active, which may include calling the Fund at 1-800-462-2392 to generate
shareholder initiated activity such as completing an account transaction.
Investors who are residents of the state of Texas may designate a representative
to receive legislatively required unclaimed property due diligence
notifications. Please contact the Fund to complete a Texas Designation of
Representative form.
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Reinstatement
Privilege (Class A and Class C
Shares) |
A
shareholder of Class A or Class C shares who has redeemed such shares and has
not previously exercised the reinstatement privilege may reinvest any portion or
all of the redemption proceeds in Class A shares at NAV without a front-end
sales charge, provided that such reinstatement occurs within 120 calendar days
after such redemption and the account meets the investment requirements
described under “How to Buy Shares”. This privilege may be modified or
terminated at any time by the Trust.
In
order to use this privilege, the shareholder must clearly indicate by written
request to the applicable Fund that the purchase represents a reinvestment of
proceeds from previously redeemed Class A or Class C shares. If a shareholder
realizes a gain on redemption of shares, this gain is taxable for federal income
tax purposes even if all of such proceeds are reinvested. Special tax rules may
apply if the redeemed shares were held for less than 91 days by the shareholder.
If a shareholder incurs a loss on a redemption and reinvests the proceeds in the
same Fund, part or all of such loss may not be currently deductible for such tax
purposes. See the “Federal Income Taxes” section of the Trust’s SAI for further
details on the application of these rules to shareholders.
THE
REINSTATEMENT PRIVILEGE MAY BE USED BY EACH SHAREHOLDER ONLY ONCE, REGARDLESS OF
THE NUMBER OF SHARES REDEEMED OR REPURCHASED. However, the privilege may be used
without limit in connection with transactions for the sole purpose of
transferring a shareholder’s interest in a Fund to his or her IRA or other
tax-qualified retirement plan account.
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Systematic
Withdrawal Plan |
A
systematic withdrawal plan (“SWP”) is available for shareholders who maintain an
account balance at least equal to the greater of: (i) the minimum initial
investment amount applicable to your share class and account type or (ii)
$5,000, and who want to receive a specific amount of cash in amounts not less
than $50 either monthly, quarterly, or annually. You may subscribe to this
service by contacting your account executive, or by contacting the shareholder
service agent at 1-800-462-2392.
The
Trust’s transfer agent will redeem a sufficient number of your shares, held in
book-entry form, at the NAV at the close of business of the NYSE on or about the
20th day of each payment month. A check will be mailed to you no later than
three business days following the date on which the shares are redeemed. SWPs
are taxable transactions that have the same tax consequences as other
redemptions.
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Household
Delivery of Fund Documents |
With
your consent, the Trust may send a single Prospectus and shareholder report to
your residence for you and any other member of your household who has an account
with the Trust. If you want to revoke your consent to this practice, you may do
so by notifying the Trust, by phone or in writing. See “How to Contact Us”
below. The Trust will begin mailing separate Prospectuses and shareholder
reports to you within 30 days after receiving your notice.
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Distribution
Arrangements |
Shares
of the Funds may be offered through financial intermediaries. If you
purchase Fund shares through a financial intermediary, you may be subject to
different fees or policies than those set forth in this Prospectus.
Payments
to Financial Intermediaries. From
time to time, the Distributor or an affiliate may enter into arrangements with
brokers or other financial intermediaries pursuant to which such parties agree
to perform sub-transfer agent, record-keeping, administrative or other services
on behalf of their clients who are shareholders of the Funds. Pursuant to
these arrangements, the Distributor or an affiliate may make payments to
financial intermediaries for services provided to clients who hold shares of the
Funds through omnibus accounts. In some circumstances, the Funds may
directly pay the intermediary for performing transfer agent and related
services, provided that the aggregate fee does not exceed what the Funds would
pay the Transfer Agent if the intermediary’s clients were direct shareholders of
the Funds. In addition, the Distributor or an affiliate may pay additional
compensation to certain financial intermediaries. Under these
arrangements, the Distributor or an affiliate may make payments from their own
resources, and not as an additional charge to a Fund, to a financial
intermediary to compensate it for distribution and marketing services, including
the opportunity to distribute the Funds. For example, the Distributor or
an affiliate may compensate financial intermediaries for providing the Funds
with “shelf space” or access to a third-party platform or fund offering list or
other marketing programs, including, without limitation, inclusion of the Funds
on preferred or recommended sales lists, mutual fund “supermarket” platforms,
other formal sales programs and other forms of marketing support. The
amount of these payments is determined from time to time by the Distributor or
an affiliate and may differ among such financial intermediaries based upon one
or more of the following factors: gross sales, current assets, the number
of accounts of a Fund held by the financial intermediaries or other factors
agreed to by the parties. The receipt of (or prospect of receiving) such
compensation may provide the intermediary and its salespersons with an incentive
to favor sales of Fund shares over other investment alternatives. You may
wish to consider whether such arrangements exist when evaluating recommendations
from an intermediary.
Each
Fund has elected, qualified, and intends to continue to qualify for each taxable
year as a “regulated investment company” under Subchapter M of Subtitle A,
Chapter 1, of the Internal Revenue Code of 1986, as amended (the “Code”). As
such, each Fund intends to comply with the requirements of the Code regarding
the sources of its income, the timing of its distributions, and the
diversification of its assets. If each Fund meets all such requirements, each
Fund will not be subject to federal income tax on its investment company taxable
income and net capital gain (the excess of net long-term capital gain over net
short-term capital loss) that is distributed to shareholders in accordance with
the timing and other requirements of the Code. If a Fund did not qualify as a
regulated investment company, it would be treated as a corporation subject to
U.S. federal income tax, thereby subjecting any income earned by the Fund to tax
at the corporate level, and when such income is distributed to a further tax at
the shareholder level.
Each
Fund pays dividends and distributions, if any, as described in the table below.
A
Fund may make additional dividend payments or capital gain distributions as it
deems appropriate.
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Type
of Distribution |
Declared
& Paid |
Federal
Income Tax Status |
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Dividends
from Net Investment Income |
annually |
ordinary
income or qualified dividend income |
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Short-term
capital gains |
annually |
ordinary
income |
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Long-term
capital gains |
annually |
long-term
capital gain |
Unless
you notify your Fund otherwise, your income and capital gains distributions from
the Fund will be reinvested in that Fund. However, if you prefer you
may:
•Receive
all distributions in cash or
•Reinvest
capital gains distributions but receive your income distributions in
cash
You
may indicate your distribution choice on your application form upon purchase.
For shareholders that are subject to tax, you will be taxable on the amount of
the distribution whether you reinvest the distribution or receive it as
cash.
If
you invest in a Fund through a tax-advantaged account, such as an IRA, you will
not be subject to federal income tax on dividends and distributions from the
Fund or the sale of the Fund shares, if those amounts remain in the
tax-advantaged account and the Fund shares were not financed with borrowings.
However, withdrawals from a tax-advantaged account may be subject to
taxes.Distributions from a Fund’s investment company taxable income (determined
without regard to the deduction for dividends paid) are generally taxable for
federal income tax purposes either as ordinary income or, if so reported by a
Fund in written statements furnished to its shareholders and certain other
conditions are met, as “qualified dividend income” taxable to individual and
other non-corporate shareholders at long-term capital gain rates.
Generally,
distributions attributable to long-term capital gains will be taxable as
long-term capital gain, and distributions attributable to short-term capital
gain will be taxable as ordinary income. The maximum individual federal income
tax rate applicable to “qualified dividend income” and long-term capital gains
is currently 23.8% (which includes a 3.8% Medicare tax discussed
below).
A
Fund may also pay dividends and distributions at other times if necessary for
the Fund to avoid federal income or excise tax. Distributions generally are
taxable in the year you receive them. However, in some cases, distributions you
receive in January are taxable as if they were paid during the previous
year.
Each
Fund issues Form 1099 tax information statements recording all distributions and
redemptions for the preceding year. These forms are mailed to shareholders and
to the Internal Revenue Service (the “IRS”) each year. Any shareholder who does
not supply a valid taxpayer identification number or make certain required
certifications to the Funds may be subject to federal backup
withholding.
It
is generally a taxable event for federal income tax purposes whenever you redeem
shares or exchange shares of a Fund for shares of another Fund. Generally, you
will recognize a capital gain or capital loss in an amount equal to the
difference between the net amount of the redemption proceeds (or in the case of
an exchange, the fair market value of the shares) that you receive and your tax
basis for the shares you redeem or exchange. Any gain or loss you realize upon a
redemption or exchange of shares of a Fund will generally be treated as
long-term capital gain or loss if the shares have been held for more than one
year and, if not held for such period, as short-term capital gain or loss.
Short-term capital gain is taxable at ordinary income tax rates for federal
income tax purposes. Any loss realized on sales or exchanges of Fund shares held
six months or less will be treated as a long-term capital loss to the extent of
any long-term capital gain distributions you received with respect to such
shares. Your ability to utilize capital losses for federal income tax purposes
may be limited.
An
additional 3.8% Medicare tax is imposed on certain net investment income
(including income dividends and capital gain distributions received from a Fund
and net gains from redemptions or other taxable dispositions of Fund shares) of
U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount.
You
should consult your tax adviser about your own particular tax
situation.
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Buying
Shares Before a Distribution |
The
money a Fund earns, either as income or as capital gains, is reflected in its
share price until the Fund makes a distribution. At that time, the amount of the
distribution is deducted from the share price and is either reinvested in
additional shares or paid to shareholders in cash.
If
you buy Fund shares just before a distribution, you will get some of your
investment back in the form of a taxable distribution. You can avoid this by
waiting to invest until after the Fund makes its distribution.
Investments
in tax-advantaged accounts are not affected by the timing of distribution
payments because generally there are no tax consequences on distributions to
these accounts.
When
you fill out your application form, be sure to provide your social security
number or taxpayer ID number. Otherwise, the IRS will require each Fund to
backup withhold at a rate of 24% on all dividends, distributions, sales proceeds
and any other payments to you from the Fund. In certain circumstances, the IRS
may also require a Fund to backup withhold even when an appropriate number has
been provided by a shareholder.
A
Fund (or its agent) must report to the IRS and furnish to Fund shareholders cost
basis information for Fund shares purchased on or after January 1, 2012, and
sold or exchanged on or after that date. The Funds have selected average cost as
the default cost basis method. Fund shareholders should consult with their tax
advisors to determine the best IRS-accepted cost basis method for their tax
situation and to obtain more information about how the cost basis reporting law
applies to them. If you wish to select another cost basis method, please contact
the Funds for further information.
We
offer a number of tax-advantaged plans for retirement savings:
TRADITIONAL
IRAs allow money to grow tax-deferred until you take it out. Contributions may
be deductible for some investors.
ROTH
IRAs also offer tax-free growth. Contributions are non-deductible, but
withdrawals are tax-free for investors who meet certain
requirements.
SEP-IRAs
and other types of plans are also available. Consult your tax professional to
determine which type of plan may be beneficial to you.
COVERDELL
EDUCATION SAVINGS ACCOUNTS. Contributions are non-deductible, but withdrawals
for eligible education expenses are tax-free for investors who meet certain
requirements.
These
Financial Highlights tables are intended to help you understand each Fund’s
financial performance over the past five years or for the life of the Fund’s
reporting period, if less than five years. Certain information reflects
financial results for a single share. The total returns in each table represent
the rate that an investor would have earned (or lost) on an investment in that
fund, assuming reinvestment of all dividends and distributions. Except as noted
below, for the fiscal periods ended December
31, 2022, 2021, 2020, 2019, and 2018,
this information has been derived from the financial statements audited by Tait,
Weller & Baker LLP, Independent Registered Public Accounting Firm to the
Funds, whose report, along with the Trust’s financial statements, is included in
the annual report, which is available upon request (see back cover) or by
visiting the SEC’s internet site at http://www.sec.gov.
The
Small Cap Fund and SMID Cap Fund commenced operations as series of the Trust on
June 21, 2019 upon completion of the IronBridge Reorganizations. Information
below for the Small Cap Fund and the SMID Cap Fund has been derived from the
applicable IronBridge Predecessor Fund’s, each a former series of IronBridge
Funds, Inc., financial statements for the fiscal year ended June 30, 2018, which
may be obtained free of charge by visiting the SEC’s internet site at
http://www.sec.gov.
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|
|
|
|
| |
|
| Income
from investment operations |
| Less
distributions |
|
| Net
asset value, beginning of period |
Net
investment
income
(loss)a |
| Net
realized and unrealized gain (loss) on securities and options |
Total
from investment operations |
| Dividends
from net investment income |
Distributions
from capital gains (from securities and options transactions) |
Total
distributions |
| RMB
Fund |
|
|
|
|
|
|
|
| |
| CLASS
A SHARES |
|
|
|
|
|
|
|
| |
| 12/31/2022 |
$38.14 |
| ($0.02) |
|
| ($7.94) |
| ($7.96) |
|
| ($0.01) |
| ($2.66) |
| ($2.67) |
|
| 12/31/2021 |
31.13 |
| (0.01) |
|
| 9.30 |
| 9.29 |
|
| (0.02) |
| (2.26) |
| (2.28) |
|
| 12/31/2020 |
28.19 |
| 0.00 |
|
d |
4.45 |
| 4.45 |
|
| (0.01) |
| (1.50) |
| (1.51) |
|
| 12/31/2019 |
20.90 |
| 0.01 |
|
| 7.75 |
| 7.76 |
|
| (0.01) |
| (0.46) |
| (0.47) |
|
| 12/31/2018 |
23.56 |
| 0.04 |
|
| (0.61) |
| (0.57) |
|
| — |
| (2.09) |
| (2.09) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| CLASS
C SHARES |
|
|
|
|
|
|
|
| |
| 12/31/2022 |
$29.70 |
| ($0.20) |
|
| ($6.15) |
| ($6.35) |
|
| ($0.01) |
| ($2.66) |
| ($2.67) |
|
| 12/31/2021 |
24.82 |
| (0.21) |
|
| 7.37 |
| 7.16 |
|
| (0.02) |
| (2.26) |
| (2.28) |
|
| 12/31/2020 |
22.91 |
| (0.16) |
|
| 3.57 |
| 3.41 |
|
| — |
| (1.50) |
| (1.50) |
|
| 12/31/2019 |
17.18 |
| (0.14) |
|
| 6.33 |
| 6.19 |
|
| — |
| (0.46) |
| (0.46) |
|
| 12/31/2018 |
19.87 |
| (0.12) |
|
| (0.48) |
| (0.60) |
|
| — |
| (2.09) |
| (2.09) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| CLASS
I SHARES |
|
|
|
|
|
|
|
| |
| 12/31/2022 |
$38.37 |
| $0.06 |
|
| ($8.00) |
| ($7.94) |
|
| ($0.01) |
| ($2.66) |
| ($2.67) |
|
| 12/31/2021 |
31.23 |
| 0.08 |
|
| 9.34 |
| 9.42 |
|
| (0.02) |
| (2.26) |
| (2.28) |
|
| 12/31/2020 |
28.27 |
| 0.07 |
|
| 4.47 |
| 4.54 |
|
| (0.08) |
| (1.50) |
| (1.58) |
|
| 12/31/2019 |
20.96 |
| 0.08 |
|
| 7.76 |
| 7.84 |
|
| (0.07) |
| (0.46) |
| (0.53) |
|
| 12/31/2018 |
23.56 |
| 0.10 |
|
| (0.61) |
| (0.51) |
|
| — |
| (2.09) |
| (2.09) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| RMB
Mendon Financial Services Fund |
|
|
|
|
|
|
|
| |
| CLASS
A SHARES |
|
|
|
|
|
|
|
| |
| 12/31/2022 |
$60.65 |
| $0.27 |
|
| ($11.55) |
| ($11.28) |
|
| ($0.34) |
| ($6.94) |
| ($7.28) |
|
| 12/31/2021 |
39.31 |
| 0.26 |
|
| 21.90 |
| 22.16 |
|
| (0.42) |
| (0.40) |
| (0.82) |
|
| 12/31/2020 |
41.70 |
| 0.13 |
|
| (2.52) |
| (2.39) |
|
| — |
| — |
| — |
|
| 12/31/2019 |
34.25 |
| (0.04) |
|
| 7.85 |
| 7.81 |
|
| — |
| (0.36) |
| (0.36) |
|
| 12/31/2018 |
43.40 |
| (0.07) |
|
| (7.23) |
| (7.30) |
|
| — |
| (1.85) |
| (1.85) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| CLASS
C SHARES |
|
|
|
|
|
|
|
| |
| 12/31/2022 |
$53.71 |
| ($0.10) |
|
| ($10.19) |
| ($10.29) |
|
| $— |
| ($6.94) |
| ($6.94) |
|
| 12/31/2021 |
34.99 |
| (0.12) |
|
| 19.44 |
| 19.32 |
|
| (0.20) |
| (0.40) |
| (0.60) |
|
| 12/31/2020 |
37.40 |
| (0.09) |
|
| (2.32) |
| (2.41) |
|
| — |
| — |
| — |
|
| 12/31/2019 |
30.98 |
| (0.29) |
|
| 7.07 |
| 6.78 |
|
| — |
| (0.36) |
| (0.36) |
|
| 12/31/2018 |
39.76 |
| (0.36) |
|
| (6.57) |
| (6.93) |
|
| — |
| (1.85) |
| (1.85) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| CLASS
I SHARES |
|
|
|
|
|
|
|
| |
| 12/31/2022 |
$61.84 |
| $0.42 |
|
| ($11.80) |
| ($11.38) |
|
| ($0.48) |
| ($6.94) |
| ($7.42) |
|
| 12/31/2021 |
40.06 |
| 0.41 |
|
| 22.32 |
| 22.73 |
|
| (0.55) |
| (0.40) |
| (0.95) |
|
| 12/31/2020 |
42.39 |
| 0.20 |
|
| (2.53) |
| (2.33) |
|
| — |
| — |
| — |
|
| 12/31/2019 |
34.72 |
| 0.05 |
|
| 7.98 |
| 8.03 |
|
| — |
| (0.36) |
| (0.36) |
|
| 12/31/2018 |
43.87 |
| 0.06 |
|
| (7.36) |
| (7.30) |
|
| — |
| (1.85) |
| (1.85) |
|
|
|
|
|
|
|
|
|
|
| |
aPer
share values have been calculated using the average shares method.
bIncludes
interest expense of $2,702 or 0.00% for Class A, $55 or 0.00% for Class C and
$925 or 0.00% for Class I of average net assets for the year ended December 31,
2022.
cIncludes
interest expense of $459 or 0.00% for Class A, $13 or 0.00% for Class C and
$191 or 0.00% for Class I of average net assets for the year ended December 31,
2021.
dLess
than $0.01 per share.
eIncludes
interest expense of $409 or 0.00% for Class A, $15 or 0.00% for Class C and
$143 or 0.00% for Class I of average net assets for the year ended December 31,
2020.
fLess
than 0.01%.
gIncludes
interest expense of $211 or 0.00% for Class A, $69 or 0.00% for Class C and
$392 or 0.00% for Class I of average net assets for the year ended December 31,
2022.
hIncludes
interest expense of $203 or 0.00% for Class A, $68 or 0.00% for Class C and
$361 or 0.00% for Class I of average net assets for the year ended December 31,
2021.
iIncludes
interest expense of $303 or 0.00% for Class A, $101 or 0.00% for Class C and
$582 or 0.00% for Class I of average net assets for the year ended December 31,
2020.
jIncludes
interest expense of $39 or 0.00% for Class A, $11 or 0.00% for Class C and $78
or 0.00% for Class I of average net assets for the year ended December 31,
2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Ratio
to average net assets % |
| |
| Redemption
fees |
| Net
asset value, end of period |
Total
return % |
| Net
assets, end of period (in $000’s) |
| Ratio
of total expenses after extraordinary expense and
reimbursement
/recovery (Note 5) |
Ratio
of total expenses before extraordinary expense and
reimbursement
/recovery (Note 5) |
Ratio
of net investment income (loss) |
Portfolio
turnover rate % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $— |
|
| $27.51 |
| (21.20) |
|
| $73,375 |
|
| 1.20 |
|
b |
1.20 |
|
b |
(0.05) |
|
| 18 |
|
| — |
|
| 38.14 |
| 29.99 |
|
| 99,229 |
|
| 1.12 |
|
c |
1.12 |
|
c |
(0.02) |
|
| 12 |
|
| — |
|
| 31.13 |
| 15.93 |
|
| 82,093 |
|
| 1.23 |
|
e |
1.23 |
|
e |
0.00 |
|
f |
29 |
|
| — |
|
| 28.19 |
| 37.16 |
|
| 77,152 |
|
| 1.16 |
|
| 1.16 |
|
| 0.06 |
|
| 22 |
|
| — |
|
|
20.90 |
| (2.84) |
|
| 62,225 |
|
| 1.25 |
|
|
1.25 |
|
|
0.14 |
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $— |
|
| $20.68 |
| (21.81) |
|
| $1,483 |
|
| 1.94 |
|
b |
1.94 |
|
b |
(0.81) |
|
| 18 |
| |
| — |
|
| 29.70 |
| 29.03 |
|
| 2,610 |
|
| 1.87 |
|
c |
1.87 |
|
c |
(0.77) |
|
| 12 |
| |
| — |
|
| 24.82 |
| 15.07 |
|
| 2,580 |
|
| 1.98 |
|
e |
1.98 |
|
e |
(0.75) |
|
| 29 |
|
|
| — |
|
| 22.91 |
| 36.07 |
|
| 2,944 |
|
| 1.91 |
|
|
1.91 |
|
|
(0.69) |
|
|
22 |
|
|
| — |
|
|
17.18 |
| (3.51) |
|
| 2,584 |
|
| 2.00 |
|
|
2.00 |
|
|
(0.60) |
|
| 23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $— |
|
| $27.76 |
| (21.02) |
|
| $25,183 |
|
| 0.94 |
|
b |
0.94 |
|
b |
0.19 |
|
| 18 |
| |
| — |
|
| 38.37 |
| 30.31 |
|
| 43,013 |
|
| 0.87 |
|
c |
0.87 |
|
c |
0.22 |
|
| 12 |
| |
| — |
|
| 31.23 |
| 16.22 |
|
| 34,380 |
|
| 0.97 |
|
e |
0.97 |
|
e |
0.26 |
|
| 29 |
| |
| — |
|
| 28.27 |
| 37.53 |
| |
31,197 |
|
| 0.91 |
|
|
0.91 |
|
|
0.32 |
|
| 22 |
|
|
| — |
|
|
20.96 |
| (2.62) |
|
| 8,905 |
|
| 1.02 |
|
|
1.02 |
|
|
0.43 |
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $— |
|
| $42.09 |
| (19.00) |
|
| $67,571 |
|
| 1.29 |
|
g |
1.29 |
|
g |
0.52 |
|
| 42 |
| |
| — |
|
| 60.65 |
| 56.44 |
|
| 95,124 |
|
| 1.24 |
|
h |
1.24 |
|
h |
0.49 |
|
| 70 |
| |
| — |
|
| 39.31 |
| (5.73) |
|
| 68,082 |
|
| 1.43 |
|
i |
1.41 |
|
i |
0.41 |
|
| 82 |
| |
| — |
|
| 41.70 |
| 22.80 |
|
| 117,615 |
|
| 1.28 |
|
j |
1.28 |
|
j |
(0.12) |
|
| 27 |
| |
| 0.00 |
|
d |
34.25 |
| (17.02) |
|
| 177,624 |
|
| 1.27 |
|
|
1.27 |
|
|
(0.15) |
|
| 58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $— |
|
| $36.48 |
| (19.59) |
|
| $22,193 |
|
| 2.04 |
|
g |
2.04 |
|
g |
(0.23) |
|
| 42 |
| |
| — |
|
| 53.71 |
| 55.28 |
|
| 30,687 |
|
| 1.99 |
|
h |
1.99 |
|
h |
(0.27) |
|
| 70 |
| |
| — |
|
| 34.99 |
| (6.44) |
|
| 24,150 |
|
| 2.19 |
|
i |
2.17 |
|
i |
(0.32) |
|
| 82 |
|
|
| — |
|
| 37.40 |
| 21.88 |
|
| 34,797 |
|
| 2.03 |
|
j |
2.03 |
|
j |
(0.87) |
|
| 27 |
|
|
| 0.00 |
|
d |
30.98 |
| (17.65) |
|
| 40,385 |
|
| 2.02 |
|
|
2.02 |
|
|
(0.89) |
|
| 58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $— |
|
| $43.04 |
| (18.80) |
|
| $127,472 |
|
| 1.04 |
|
g |
1.04 |
|
g |
0.77 |
|
| 42 |
| |
| — |
|
| 61.84 |
| 56.84 |
|
| 184,454 |
|
| 0.99 |
|
h |
0.99 |
|
h |
0.75 |
|
| 70 |
| |
| — |
|
| 40.06 |
| (5.50) |
|
| 106,981 |
|
| 1.18 |
|
i |
1.16 |
|
i |
0.63 |
|
| 82 |
| |
| — |
|
| 42.39 |
| 23.13 |
| |
234,303 |
|
| 1.03 |
|
j |
1.03 |
|
j |
0.14 |
|
| 27 |
|
|
| 0.00 |
|
d |
34.72 |
| (16.84) |
|
| 313,808 |
|
| 1.02 |
|
|
1.02 |
|
|
0.13 |
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
Income
from investment operations |
| Less
distributions |
|
| Net
asset
value,
beginning of
period |
Net
investment
income
(loss) |
| Net
realized
and
unrealized
gain (loss)
on securities |
| Total
from
investment
operations |
| Dividends
from
net
investment
income |
Distributions
from
return of capital |
Distributions
from
capital
gains (from
securities transactions) |
Total
distributions |
| RMB
International Fund |
|
|
|
|
| |
| |
| |
|
| CLASS
I SHARES |
|
|
|
|
| |
| |
| |
|
| 12/31/2022 |
$10.60 |
| $0.15 |
|
a |
($1.94) |
|
| ($1.79) |
|
| ($0.18) |
| $— |
| $— |
| ($0.18) |
|
| 12/31/2021 |
9.78 |
| 0.10 |
|
a |
0.83 |
|
| 0.93 |
|
| (0.11) |
| — |
| — |
| (0.11) |
|
| 12/31/2020 |
9.20 |
| 0.07 |
|
a |
0.57 |
|
| 0.64 |
|
| (0.06) |
| — |
| — |
| (0.06) |
|
| 12/31/2019 |
7.81 |
| 0.11 |
|
a |
1.39 |
|
| 1.50 |
|
| (0.11) |
| — |
| — |
| (0.11) |
|
| 12/31/2018 |
10.01 |
| 0.04 |
|
a |
(2.22) |
|
| (2.18) |
|
| (0.02) |
| — |
| — |
| (0.02) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
| RMB
Japan Fund |
|
|
|
|
| |
| |
| |
|
| CLASS
I SHARES |
|
|
|
|
| |
| |
| |
|
| 12/31/2022 |
$10.14 |
| $0.09 |
|
a |
($1.56) |
|
| ($1.47) |
|
| $— |
| $— |
| ($0.09) |
| ($0.09) |
|
| 12/31/2021 |
11.25 |
| 0.05 |
|
a |
(0.34) |
|
| (0.29) |
|
| (0.30) |
| — |
| (0.52) |
| (0.82) |
|
| 12/31/2020 |
9.98 |
| 0.05 |
|
a |
1.25 |
|
| 1.30 |
|
| (0.03) |
| — |
| — |
| (0.03) |
|
| 12/31/2019 |
8.58 |
| 0.07 |
|
a |
1.44 |
|
| 1.51 |
|
| (0.11) |
| — |
| — |
| (0.11) |
|
| 12/31/2018 |
9.96 |
| 0.06 |
|
a |
(1.41) |
|
| (1.35) |
|
| (0.03) |
| — |
| — |
| (0.03) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
| RMB
Small Cap Fund |
|
|
|
|
| |
| |
| |
|
| CLASS
I SHARES |
|
|
|
|
| |
| |
| |
|
| 12/31/2022 |
$18.15 |
| $0.09 |
|
a |
($4.58) |
|
| ($4.49) |
|
| ($0.09) |
| $— |
| ($0.27) |
| ($0.36) |
|
| 12/31/2021 |
15.56 |
| 0.08 |
|
a |
3.68 |
|
| 3.76 |
|
| (0.09) |
| — |
| (1.08) |
| (1.17) |
|
| 12/31/2020 |
13.83 |
| (0.00) |
a,f |
2.41 |
|
| 2.41 |
|
| — |
| — |
| (0.68) |
| (0.68) |
|
| For
the period from 7/1/2019 |
|
|
|
|
|
|
|
|
|
| |
|
through
12/31/2019g |
13.63 |
| 0.03 |
|
| 0.82 |
|
| 0.85 |
|
| (0.06) |
| — |
| (0.59) |
| (0.65) |
|
| 6/30/2019 |
18.76 |
| 0.04 |
|
|
(0.00 |
) |
f |
0.04 |
|
| — |
| — |
| (5.17) |
| (5.17) |
|
| 6/30/2018 |
19.33 |
| 0.08 |
|
|
3.00 |
|
| 3.08 |
|
| (0.09) |
| — |
| (3.56) |
| (3.65) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
| RMB
SMID Cap Fund |
|
|
|
|
| |
| |
| |
|
| CLASS
I SHARES |
|
|
|
|
| |
| |
| |
|
| 12/31/2022 |
$15.43 |
| $0.09 |
|
a |
($3.31) |
|
| ($3.22) |
|
| ($0.15) |
| $— |
| ($0.80) |
| ($0.95) |
|
| 12/31/2021 |
12.73 |
| 0.08 |
|
a |
3.47 |
|
| 3.55 |
|
| (0.08) |
| (0.01) |
| (0.76) |
| (0.85) |
|
| 12/31/2020 |
10.80 |
| 0.00 |
|
a,f |
2.61 |
|
| 2.61 |
|
| (0.03) |
| — |
| (0.65) |
| (0.68) |
|
| For
the period from 7/1/2019 |
|
|
|
|
|
|
|
|
|
| |
|
through
12/31/2019g |
11.45 |
| 0.03 |
|
| 0.86 |
|
| 0.89 |
|
| (0.06) |
| — |
| (1.48) |
| (1.54) |
|
| 6/30/2019 |
12.45 |
| 0.03 |
|
|
0.44 |
|
| 0.47 |
|
| — |
| — |
| (1.47) |
| (1.47) |
|
| 6/30/2018 |
12.12 |
| 0.07 |
|
|
1.94 |
|
| 2.01 |
|
| (0.07) |
| — |
| (1.61) |
| (1.68) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
aPer
share values have been calculated using the average shares method.
bIncludes
interest expense of $18 or 0.00% of average net assets for RMB International
Fund, $246 or 0.00% for RMB Japan Fund, $422 or 0.00% for RMB Small Cap Fund,
and $3,449 or 0.00% for RMB SMID Cap Fund for the year ended December 31,
2022.
cIncludes
interest expense of $28 or 0.00% of average net assets for RMB International
Fund, $2,436 or 0.00% for RMB Japan Fund, $2,336 or 0.00% for RMB Small Cap
Fund, and $61 or 0.00% for RMB SMID Cap Fund for the year ended December 31,
2020.
dIncludes
interest expense of $1,563 or 0.00% of average net assets for RMB Japan Fund
and $586 or 0.00% for RMB SMID Cap Fund for the year ended December 31,
2021.
eIncludes
interest expense of $83 or 0.00% of average net assets for RMB Japan Fund,
$4,073 or 0.00% for RMB Small Cap Fund, and $7,786 or 0.00% for RMB SMID Cap
Fund for the year/period ended December 31, 2019.
fLess
than $0.01 per share.
gRMB
Small Cap Fund and RMB SMID Cap Fund changed fiscal year end from June 30 to
December 31 effective close of business September 5, 2019.
hNot
Annualized.
iAnnualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| Ratio
to average net assets % |
| |
| Net
asset value, end of period |
Total
return % |
| Net
assets, end of period (in $000’s) |
Ratio
of total expenses after reimbursement/recovery (Note 5) |
| Ratio
of total
expenses before reimbursement/recovery (Note 5) |
| Ratio
of net
investment
income (loss) after
reimbursement/recovery |
| Ratio
of net
investment
income (loss) before
reimbursement/recovery |
| Portfolio
turnover rate % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $8.63 |
| (16.94) |
|
| $242,798 |
| 0.95 |
|
b |
0.95 |
|
b |
1.62 |
|
| 1.62 |
|
| 30 |
| |
| 10.60 |
| 9.53 |
|
| 317,071 |
| 0.91 |
|
| 0.91 |
|
| 0.99 |
|
| 0.99 |
|
| 21 |
| |
| 9.78 |
| 7.01 |
|
| 257,706 |
| 0.98 |
|
c |
0.98 |
|
c |
0.83 |
|
| 0.83 |
|
| 51 |
| |
| 9.20 |
| 19.20 |
|
| 216,030 |
| 0.95 |
|
| 0.94 |
|
| 1.27 |
|
| 1.28 |
|
| 112 |
| |
| 7.81 |
| (21.81) |
|
| 112,799 |
| 1.15 |
|
| 1.16 |
|
| 0.38 |
|
| 0.37 |
|
| 28 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $8.58 |
| (14.52) |
|
| $25,597 |
| 1.30 |
|
b |
1.63 |
|
b |
1.05 |
|
| 0.72 |
|
| 32 |
| |
| 10.14 |
| (2.56) |
|
| 42,705 |
| 1.30 |
|
d |
1.38 |
|
d |
0.45 |
|
| 0.37 |
|
| 18 |
| |
| 11.25 |
| 13.06 |
|
| 62,769 |
| 1.30 |
|
c |
1.32 |
|
c |
0.51 |
|
| 0.49 |
|
| 75 |
| |
| 9.98 |
| 17.63 |
|
| 70,245 |
| 1.30 |
|
e |
1.28 |
|
e |
0.77 |
|
| 0.79 |
|
| 76 |
| |
| 8.58 |
| (13.57) |
|
| 44,314 |
| 1.30 |
|
| 1.84 |
|
| 0.61 |
|
| 0.07 |
|
| 135 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $13.30 |
| (24.80) |
|
| $89,694 |
| 0.95 |
|
b |
1.13 |
|
b |
0.61 |
|
| 0.43 |
|
| 15 |
| |
| 18.15 |
| 24.38 |
|
| 141,517 |
| 0.95 |
|
| 1.06 |
|
| 0.44 |
|
| 0.33 |
|
| 7 |
| |
| 15.56 |
| 17.59 |
|
| 116,651 |
| 1.00 |
|
c |
1.18 |
|
c |
(0.02) |
|
| (0.02) |
|
| 35 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 13.83 |
| 6.33 |
|
h |
101,201 |
| 1.10 |
|
e,
i |
1.24 |
|
e,
i |
0.35 |
|
i |
0.21 |
|
i |
6 |
|
h |
| 13.63 |
| 3.96 |
|
| 118,421 |
| 1.10 |
|
| 1.23 |
|
| 0.32 |
|
| 0.19 |
|
| 19 |
| |
| 18.76 |
| 17.88 |
|
| 147,844 |
| 1.10 |
|
| 1.16 |
|
| 0.53 |
|
| 0.47 |
|
| 20 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| $11.26 |
| (20.87) |
|
| $88,824 |
| 0.80 |
|
b |
0.91 |
|
b |
0.71 |
|
| 0.60 |
|
| 4 |
| |
| 15.43 |
| 28.10 |
|
| 287,589 |
| 0.80 |
|
d |
0.84 |
|
d |
0.54 |
|
| 0.50 |
|
| 9 |
| |
| 12.73 |
| 24.39 |
|
| 231,657 |
| 0.84 |
|
c |
0.94 |
|
c |
0.02 |
|
| (0.08) |
|
| 21 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 10.80 |
| 8.06 |
|
h |
158,743 |
| 0.96 |
|
e,
i |
1.04 |
|
e,
i |
0.35 |
|
i |
0.27 |
|
i |
4 |
|
h |
| 11.45 |
| 5.71 |
|
| 181,588 |
| 0.95 |
|
| 1.05 |
|
| 0.22 |
|
| 0.12 |
|
| 16 |
| |
| 12.45 |
| 18.20 |
|
| 193,538 |
| 0.95 |
|
| 1.00 |
|
| 0.58 |
|
| 0.53 |
|
| 14 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
APPENDIX
A
Additional
Information about Sales Charge Variations, Waivers and Discounts
The
sales charge reductions and waivers applicable to Fund shares purchased
through
Raymond
James, Janney Montgomery Scott, Oppenheimer & Co.,
Robert W. Baird & Co., and Ameriprise Financial are
set forth below. The availability of certain sales charge variations, waivers
and discounts will depend on whether you purchase your shares directly from the
Fund or through a financial intermediary. Financial intermediaries may impose
different sales charges and have unique policies and procedures regarding the
availability of sales charge waivers and/or discounts (including based on
account type), which differ from those described in the Prospectus and are
disclosed below. All sales charges and sales charge variations, waivers and
discounts available to investors, other than those set forth below, are
described in the Prospectus. To the extent a financial intermediary notifies the
Adviser or Distributor of its intention to impose sales charges or have sales
charge waivers and/or discounts that differ from those described in the
Prospectus, such information provided by that financial intermediary will be
disclosed in this Appendix.
In
all instances, it is your responsibility to notify your financial intermediary
at the time of purchase of any relationship or other facts qualifying you for
sales charge waivers or discounts. Please contact your financial intermediary
with questions regarding your eligibility for applicable sales charge
variations, waivers and discounts or for additional information regarding your
financial intermediary’s policies for implementing particular sales charge
variations, waivers and discounts.
The
information provided below for any particular financial intermediary is
reproduced based on information provided by that financial intermediary. A
financial intermediary’s administration and implementation of its particular
policies with respect to any variations, waivers and/or discounts is neither
supervised nor verified by the Funds, the Adviser or the
Distributor.
******************
Raymond
James & Associates, Inc., Raymond James Financial Services, Inc. & each
entity’s affiliates (“Raymond James”)
Effective
March 1, 2019, shareholders purchasing fund shares through a Raymond James
platform or account, or through an introducing broker-dealer or independent
registered investment adviser for which Raymond James provides trade execution,
clearance, and/or custody services, will be eligible only for the following load
waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed
elsewhere in this Fund’s prospectus or SAI.
Front-end
sales load waivers on Class A shares available at Raymond James
•Shares
purchased in an investment advisory program.
•Shares
purchased within the same fund family through a systematic reinvestment of
capital gains distributions and dividend reinvestment when purchasing shares of
the same fund (but not any other fund within the fund family).
•
Employees and registered representatives of Raymond James or its affiliates and
their family members as designated by Raymond James.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Reinstatement).
•A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond James.
CDSC
Waivers on Classes A, B and C shares available at Raymond James
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the Funds’ prospectus.
•Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James.
•Shares
acquired through a right of reinstatement.
Front-end
load discounts available at Raymond James: breakpoints, and/or rights of
accumulation, and/or letters of intent
•Breakpoints
as described in this prospectus.
•Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the calculation
of rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
•Letters
of intent which allow for breakpoint discounts based on anticipated purchases
within a fund family, over a 13-month time period. Eligible fund family assets
not held at Raymond James may be included in the calculation of letters of
intent only if the shareholder notifies his or her financial advisor about such
assets.
Janney
Montgomery Scott LLC
Effective
May 1, 2020, if you purchase fund shares through a Janney Montgomery Scott LLC
(“Janney”) brokerage account, you will be eligible for the following load
waivers (front-end sales charge waivers and contingent deferred sales charge
(“CDSC”), 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 charge* waivers on Class A shares available at Janney
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
purchased by employees and registered representatives of Janney or its
affiliates and
their
family members as designated by Janney.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within ninety (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 (i.e., right of
reinstatement).
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
•Shares
acquired through a right of reinstatement.
•Class
C shares that are no longer subject to a contingent deferred sales charge and
are converted to Class A shares of the same fund pursuant to Janney’s policies
and procedures.
CDSC
waivers on Class A and C shares available at Janney
•Shares
sold upon the death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
Prospectus.
•Shares
purchased in connection with a return of excess contributions from an IRA
account.
•Shares
sold as part of a required minimum distribution for IRA and other retirement
accounts due to the shareholder reaching age 70½ as described in the fund’s
Prospectus.
•Shares
sold to pay Janney fees but only if the transaction is initiated by
Janney.
•Shares
acquired through a right of reinstatement.
•Shares
exchanged into the same share class of a different fund.
Front-end
sales charge* discounts available at Janney: breakpoints, rights of
accumulation, and/or letters of intent
•Breakpoints
as described in the fund’s Prospectus.
•Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts,
will be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
•Letters
of intent which allow for breakpoint discounts based on anticipated purchases
within a fund family, over a 13-month time period. Eligible fund family assets
not held at Janney Montgomery Scott may be included in the calculation of
letters of intent only if the shareholder notifies his or her financial advisor
about such assets.
*Also
referred to as an “initial sales charge.”
Oppenheimer
& Co. Inc.
Effective
May 1, 2020, shareholders purchasing Fund shares through an OPCO platform or
account are eligible only for the following load waivers (front-end sales charge
waivers and contingent deferred, or back-end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
Front-end
Sales Load Waivers on Class A Shares available at OPCO
–
Employer-sponsored retirement, deferred compensation and employee benefit plans
(including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account
and shares are held for the benefit of the plan
–Shares
purchased by or through a 529 Plan
–Shares
purchased through a OPCO affiliated investment advisory program
–Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family)
–Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same amount, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of Restatement).
–A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of OPCO
–Employees
and registered representatives of OPCO or its affiliates and their family
members
–Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any
of its affiliates, as described in this prospectus
CDSC
Waivers on A, B and C Shares available at OPCO
–Death
or disability of the shareholder
–Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus
–Return
of excess contributions from an IRA Account
–Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching age 70½ as described in the
prospectus
–Shares
sold to pay OPCO fees but only if the transaction is initiated by
OPCO
–Shares
acquired through a right of reinstatement
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation &
Letters of Intent
–Breakpoints
as described in this prospectus.
–Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such assets
Robert
W. Baird & Co. (“Baird”):
Effective
June 15, 2020, shareholders purchasing fund shares through a Baird platform or
account will only be eligible for the following sales charge waivers (front-end
sales charge waivers and CDSC waivers) and discounts, which may differ from
those disclosed elsewhere in this prospectus or the SAI
Front-End
Sales Charge Waivers on Investors A-shares Available at Baird
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund
•Shares
purchase by employees and registers representatives of Baird or its affiliate
and their family members as designated by Baird
•Shares
purchased using the proceeds of redemptions from a Fund, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same
accounts,
and (3) redeemed shares were subject to a front-end or deferred sales charge
(known as rights of reinstatement)
•A
shareholder in the Funds Investor C Shares will have their share converted at
net asset value to Investor A shares of the same fund if the shares are no
longer subject to CDSC and the conversion is in line with the policies and
procedures of Baird
•Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs
CDSC
Waivers on Investor A and C shares Available at Baird
•Shares
sold due to death or disability of the shareholder
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
Prospectus
•Shares
bought due to returns of excess contributions from an IRA Account
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable Internal
Revenue Service regulations as described in the Fund’s prospectus
•Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird
•Shares
acquired through a right of reinstatement
Front-End
Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulations
•Breakpoints
as described in this prospectus
•Rights
of accumulations which entitles shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of Fund assets held by
accounts within the purchaser’s household at Baird. Eligible Fund assets not
held at Baird may be included in the rights of accumulations calculation only if
the shareholder notifies his or her financial advisor about such
assets
•Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of
Fund shares through Baird, over a 13-month period of time
Class
A Shares Front-End Sales Charge Waivers Available at Ameriprise
Financial:
The
following information applies to Class A shares purchases if you have an account
with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise Financial brokerage account are
eligible for the following front-end sales charge waivers, which may differ from
those disclosed elsewhere in this Fund’s prospectus or SAI:
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
•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 same fund family).
•Shares
exchanged from Class C shares of the same fund in the month of or following the
7-year anniversary of the purchase date. To the extent that this prospectus
elsewhere provides for a waiver with respect to exchanges of Class C shares or
conversion of Class C shares following a shorter holding period, that waiver
will apply.
•Employees
and registered representatives of Ameriprise Financial or its affiliates and
their immediate family members.
•Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education
Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit
plans) that are held by a covered family member, defined as an Ameriprise
financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step-son, daughter,
step-daughter, grandson, granddaughter, great grandson, great granddaughter) or
any spouse of a covered family member who is a lineal descendant.
•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 (i.e. Rights of
Reinstatement).
