ck0001141819-20240531
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Prospectus |
September 30,
2024 |
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Jensen Quality Mid Cap
Fund
(formerly,
the Jensen Quality Value Fund)
Class
J Shares JNVSX
Class
I Shares JNVIX
Class
Y Shares JNVYX
Jensen Global Quality
Growth Fund
Class
J Shares JGQSX
Class
I Shares JGQIX
Class
Y Shares JGQYX
Each
a series of Trust for Professional Managers (the “Trust”)
615
East Michigan Street
Milwaukee,
WI 53202
800-992-4144
www.jenseninvestment.com
TABLE
OF CONTENTS
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Summary
Section - Quality Mid Cap Fund |
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Summary
Section - Global Quality Growth Fund |
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Management
of the Fund |
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Shareholder
Information |
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Choosing
a Share Class |
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Distribution
and Servicing of Fund Shares |
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Distribution
and Taxes |
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Confirmation
and Statements |
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Disclosure
of Portfolio Holdings Information |
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Shareholder
Inquiries |
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Financial
Highlights |
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Notice
of Privacy Policy |
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For
More Information |
Back
Cover |
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Prospectus |
Jensen
Funds |
1 |
Summary
Section - Quality Mid Cap Fund
Investment
Objective
The
objective of the Jensen Quality Mid Cap Fund (the “Quality Mid Cap Fund” or the
“Fund”) (f/k/a the Jensen Quality Value Fund) is long-term capital
appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the table and
Example below.
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Shareholder
Fees
(fees
paid directly from your investment) |
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| Class
J |
Class
I |
Class
Y |
| None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
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| Class
J |
Class
I |
Class
Y |
Management
Fees |
0.65% |
0.65% |
0.65% |
Distribution
and Shareholder Servicing (12b-1) Fees |
0.25% |
None |
None |
Shareholder
Servicing Fee
1 |
None |
0.02% |
None |
Other
Expenses |
0.18% |
0.18% |
0.18% |
Total
Annual Fund Operating Expenses |
1.08% |
0.85% |
0.83% |
Fee
Waiver/Expense Reimbursements |
-0.03% |
-0.03% |
-0.03% |
Total
Annual Fund Operating Expenses after Fee Waiver/Expense
Reimbursements2 |
1.05% |
0.82% |
0.80% |
1.The
Trust’s Board of Trustees (the “Board of Trustees”) has authorized a shareholder
servicing plan fee in the amount of 0.10% of the Fund’s average daily net assets
for Class I shares. Currently, the shareholder servicing plan fee being charged
is 0.02% of the Fund’s average daily net assets for Class I shares; however, the
fee may be increased to 0.10% of the Fund’s average daily net assets for Class I
shares at any time.
2.Pursuant
to an operating expense limitation agreement between the Fund’s investment
adviser, Jensen Investment Management, Inc. (the “Adviser”), and the Trust, on
behalf of the Fund, the Adviser has agreed to waive its management fees and/or
reimburse expenses of the Fund to ensure that Total Annual Fund Operating
Expenses (exclusive of front-end or contingent deferred loads, Rule 12b-1 plan
fees, shareholder servicing plan fees, interest (including interest incurred in
connection with bank and custody overdrafts), acquired fund fees and expenses,
leverage (i.e.,
any expenses incurred in connection with borrowings made by the Fund), tax
expenses, dividends and interest on short positions, brokerage commissions,
merger or reorganization expenses and extraordinary expenses), do not exceed
0.80% of the Fund’s average daily net assets through September 30,
2025. This operating expense limitation agreement can be
terminated only by, or with the consent of, the Board of Trustees. The Adviser
may request recoupment of previously waived fees and paid expenses from the Fund
up to three years from the date such fees and expenses were waived
or
paid,
subject to the operating expense limitation agreement, if such reimbursement
will not cause the Fund’s Total Annual Operating Expenses (after the amount of
the reimbursement is taken into account) to exceed the lesser of: (1) the
expense limitation in
place
at the time of the waiver and/or expense payment; or (2) the expense limitation
in place at the time of the recoupment.
Example
This Example is intended to help you compare the costs 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 either redeem or hold 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. The operating expense
limitation agreement discussed above is reflected only through
September 30, 2025. 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 |
Class
J |
$107 |
$340 |
$593 |
$1,314 |
Class
I |
$84 |
$268 |
$468 |
$1,046 |
Class
Y |
$82 |
$262 |
$458 |
$1,023 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
generate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These transaction costs, and potentially
higher taxes, which are not reflected in the Total Annual Fund Operating
Expenses or in the Example, affect the Fund’s performance. During the fiscal
year ended May 31, 2024, the Fund’s portfolio turnover rate was 24.92% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund’s investment strategy seeks to identify companies the Adviser deems to be
undervalued. To achieve its objective of long-term capital appreciation, the
Fund invests in equity securities of companies that satisfy the investment
criteria described below. Under normal circumstances, the Fund
invests at least 80% of its net assets (plus borrowing for investment purposes)
in equity securities of companies meeting the criteria for “quality” and
“mid-capitalization” as determined by the Adviser. The Adviser
considers a company to be a “mid-capitalization” company if it is listed in the
Russell Midcap® Index at the time that the Adviser creates the Fund’s investable
universe. The Adviser considers a company to be a “quality” company if it
possesses competitive advantages as evidenced by generating a return on equity
of 15% or greater for at least ten consecutive fiscal years as determined by the
Adviser.
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Jensen
Funds |
Prospectus |
The
Adviser determines the companies that qualify for inclusion in the Fund’s
investable universe on at least an annual basis. These companies are selected
from a universe of publicly traded U.S. companies that, as determined by the
Adviser, have produced long-term records of consistently high returns on
shareholder equity. In order to qualify for this universe, each company must
meet the Adviser’s definitions of “mid-capitalization” and “quality”, and may
include companies with negative equity resulting from debt-financing of large
share repurchases. These companies may have unique risk profiles depending on
the amount of debt incurred relative to the company’s ability to repay that
debt.
Equity
securities in which the Fund may invest as a principal strategy consist
primarily of common stocks of mid-cap U.S. companies.
The
Fund’s investment strategy is based on applying fundamental analysis and
valuation models to this select universe of companies in order to identify
investment opportunities. Fundamental analysis includes assessment of the
company’s industry, strategy, competitive advantages, business segments,
geographic distribution, growth and profitability, financial statements (income
statement, cash flow statement, balance sheet), and the company’s other
financial reports. The valuation models are rooted in fundamentals-based
investment principles and include discounted cash flow models (for example,
determining the present value of expected future cash flows), relative valuation
methods (for example, a company’s valuation relative to its own history, its
industry peers, or the broader stock market), and ratio methods (for example, a
company’s price-to-earnings ratios).
The
Fund may sell all or part of its position in a company when the Adviser has
determined that another qualifying security has a greater opportunity to achieve
the Fund’s objective. In addition, the Fund generally sells its position in a
company when the company no longer meets one or more of the Fund’s investment
criteria described above for inclusion in the universe of companies in which the
Fund may invest. In the event that the company no longer satisfies the
investment criteria and the failure is due to an extraordinary situation that
the Adviser believes will not have a material adverse impact on the company’s
operating performance, the Fund may continue to hold and invest in the company.
Examples of such extraordinary situations include a significant acquisition,
divestiture, or accounting rule change that results in a significant change to a
company’s equity balance and a non-meaningful return on equity
number.
The
Adviser expects to include in the Fund’s investment portfolio at any time
securities of approximately 30 to 50 primarily domestic companies. The Fund must
always own the securities of a minimum of 25 different companies in its
portfolio. The Fund strives to be fully invested at all times in publicly traded
common stocks and other
eligible equity securities issued by companies that meet the
investment criteria described in this Prospectus.
Principal Risks of Investing in
the Fund
Before
investing in the Fund, you should carefully consider your own investment goals,
the amount of time you are willing to leave your money invested, and the amount
of risk you are willing to take. Remember, in addition to possibly not
achieving your investment goals, you could lose money by investing in the
Fund. The principal risks of investing in this Fund
are:
+ Stock
Market Risk
The
market value of stocks held by the Fund may decline over a short, or even an
extended period of time, resulting in a decrease in the value of a shareholder’s
investment.
+ Management
Risk
The
investment process used by the Adviser, including the Adviser’s valuation
models, to select securities for the Fund’s investment portfolio may not prove
effective, and the Adviser’s judgments about the attractiveness, value and
potential appreciation of the Fund’s investments may prove to be incorrect in
that the investments chosen by the Adviser may not perform as anticipated.
Certain risks are inherent in the ownership of any security, and there is no
assurance that the Fund’s investment objective will be
achieved.
+ General
Market Risk
Certain
securities selected for the Fund’s portfolio may be worth less than the price
originally paid for them, or less than they were worth at an earlier
time.
+ Recent
Market Events Risk
U.S.
and international markets have experienced and may continue to experience
significant periods of volatility in recent years and months due to a number of
economic, political and global macro factors including uncertainty regarding
inflation and central banks’ interest rates, the possibility of a national or
global recession, trade tensions, political events, the war between Russia and
Ukraine, armed conflict in the Middle East, and the impact of the coronavirus
(COVID-19) global pandemic. The impact of COVID-19 may last for an extended
period of time. As a result of continuing political tensions and armed
conflicts, including the war between Ukraine and Russia, the U.S. and the
European Union imposed sanctions on certain Russian individuals and companies,
including certain financial institutions, and have limited certain exports and
imports to and from Russia. The war has contributed to recent market volatility
and may continue to do so. Continuing market volatility as a
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Prospectus |
Jensen
Funds |
3 |
result
of recent market conditions or other events may have an adverse effect on the
performance of the Fund.
+ Company and Sector
Risk
The
Fund’s investment strategy requires that a company selected for investment must,
among other criteria and in the determination of the Adviser, have attained a
return on equity of 15% or greater for at least ten consecutive fiscal years.
Due to the relatively limited number of companies that meet this investment
criteria and thereby qualify for investment consideration, at times the Fund is
prohibited from investing in certain companies and sectors that are experiencing
strong market appreciation, but have not attained the high level of consistent,
long-term business performance that is required for investment consideration by
the Fund. As a result, the Fund’s performance may trail the overall market over
a short or extended period of time compared to what its performance may have
been if the Fund was able to invest in such rapidly growing, non-qualifying
companies.
+ Mid-Capitalization Company
Risk
The
Fund may invest substantially all of its assets in the stocks of mid-cap
companies. Mid-cap companies may be more vulnerable to adverse business or
economic events than larger, more established companies. In particular, these
mid-cap companies may pose additional risks, including liquidity risk, because
these companies may have limited product lines, markets and financial resources,
and may depend upon a relatively small management group. Therefore, mid-cap
stocks may be more volatile than those of larger
companies.
+ Regulatory Risk
Legal,
tax and regulatory changes could occur that may adversely affect the Fund’s
ability to pursue its investment strategies and/or increase the costs of
implementing such strategies.
+
Competitive
Risk
Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments.
Investment
Suitability
The
Fund is designed for long-term investors who are willing to accept short-term
market price fluctuations.
Performance
The performance
information below demonstrates 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 the one year, five year, ten year and
since inception periods compare with those of a broad measure of market
performance and a second more narrowly tailored index.
The Fund’s past performance
information, both before and after taxes, is not necessarily an indication of
how the Fund will perform in the future. Updated performance
information is available on the Fund’s website at www.jenseninvestment.com,
or by calling the Fund toll-free at 800-992-4144.
Jensen
Quality Mid Cap Fund - Class J Shares1
Calendar
Year Returns as of December 31
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Jensen
Funds |
Prospectus |
1The
returns in the bar chart are for the Class J shares. Class I and Class Y shares
would have substantially similar annual returns as Class J shares because the
shares are invested in the same portfolio of securities and the annual returns
would differ only to the extent that the classes have different
expenses.
The
Fund’s calendar year-to-date return for Class J
shares as of June 30,
2024 was 3.32%. During the period of time shown in the bar
chart, the Fund’s highest quarterly return
for Class J shares was 21.16% for the quarter ended June 30, 2020, and
the lowest quarterly return for
Class J shares was -23.33% for the quarter ended March 31,
2020.
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Average
Annual Total Returns
For
the Periods Ended
December
31, 2023 |
One
Year |
Five
Year |
Ten
Year |
Since
Inception
3/31/2010 |
Class
J Shares |
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Return Before
Taxes |
18.57% |
13.07% |
8.34% |
9.84% |
Return After
Taxes on Distributions |
18.40% |
12.45% |
6.91% |
8.47% |
Return After
Taxes on Distributions and Sale of Fund Shares |
11.10% |
10.36% |
6.21% |
7.68% |
Class
I Shares |
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Return Before
Taxes |
18.83% |
13.34% |
8.55% |
10.05% |
Class
Y Shares* |
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Return Before
Taxes |
18.83% |
13.38% |
8.58% |
10.08% |
Russell
Midcap® Total Return Index
(reflects no deductions for
fees, expenses, or taxes) |
17.23% |
12.68% |
9.42% |
11.41% |
Russell
3000® Index**
(reflects
no deductions for fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
12.64% |
*Class Y shares commenced operations on January 15, 2020.
Performance shown for Class Y shares prior to their inception (five year, ten
year and since inception columns) reflects the performance of the Class I
shares, adjusted to reflect Class Y
expenses.
**Effective
September 30, 2024, the Fund added the Russell 3000® Index as a broad-based
securities market index as it is considered to be broadly representative of the
overall applicable securities market.
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 each investor’s individual tax situation and
may differ from those shown. Furthermore, the after-tax
returns shown are not relevant to those who hold their shares through
tax-deferred or other tax-advantaged arrangements such as 401(k) plans or
individual retirement accounts (“IRAs”). After-tax
returns are shown for the Class J shares only and after-tax returns for the
Class I and Class Y shares will
vary.
Management
Investment
Adviser
Jensen
Investment Management, Inc. is the Fund’s investment adviser.
Portfolio
Managers
The
Fund is managed by the Adviser’s investment team for the Fund, which is composed
of:
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Portfolio
Manager |
Year
Service Began with the Fund |
Primary
Title |
Eric
H. Schoenstein |
Since
2010 |
Chief
Investment Officer and Managing Director |
Kurt
M. Havnaer |
Since
2010 |
Portfolio
Manager |
Adam
D. Calamar |
Since
2013 |
Portfolio
Manager |
Tyra
S. Pratt |
Since
2021 |
Portfolio
Manager |
All
members of the Fund’s portfolio management team share responsibility in managing
the Fund and making decisions regarding the Fund’s investments.
Purchase
and Sale of Fund Shares
You
may purchase or redeem shares by mail (Jensen Quality Mid Cap Fund, c/o U.S.
Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular
mail) or 615 East Michigan Street, 3rd Floor, Milwaukee, WI 53202 (for
overnight or express mail)), by telephone at 800-992-4144, on any day the New
York Stock Exchange (“NYSE”) is open for trading, or by wire. Investors who wish
to purchase or redeem Fund shares through a financial intermediary should
contact the financial intermediary directly. The minimum initial and subsequent
investment amounts are as follows:
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| Minimum
Investment Amount |
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Additional |
Class
J Shares |
$2,500 |
$100 |
Class
I Shares |
$250,000 |
$100 |
Class
Y Shares |
$1,000,000 |
$100 |
These
minimums may be waived for accounts held in qualified retirement or profit
sharing plans, and/or omnibus accounts established by financial intermediaries
where the investment in the Fund is expected to meet the minimum investment
amount within a reasonable time period as determined by the Adviser. Registered
investment advisors and broker-dealers may generally meet the minimum investment
amount by aggregating multiple accounts with common ownership or discretionary
control within the Fund.
Tax
Information
The
Fund’s distributions will be taxed as ordinary income or long-term capital
gains, unless you are a tax-exempt investor or are
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Prospectus |
Jensen
Funds |
5 |
investing
through a tax-deferred or other tax-advantaged arrangement, such as a 401(k)
plan or an IRA. You may be taxed later upon withdrawal of monies from
tax-deferred arrangements.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create
conflicts of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. You may be
required to pay commissions and/or other forms of compensation to the
broker-dealer or other intermediaries for transactions in the Fund, which are
not reflected in the fee table or expense example. Ask your adviser or visit
your financial intermediary’s website for more information.
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Jensen
Funds |
Prospectus |
Summary
Section - Global Quality Growth Fund
Investment
Objective
The
objective of the Jensen Global Quality Growth Fund (the “Global Quality Growth
Fund” or the “Fund”) is long-term capital
appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the tables
and Example below.
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Shareholder
Fees
(fees
paid directly from your investment) |
| Class
J |
Class
I |
Class
Y |
| None |
None |
None |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
| Class
J |
Class
I |
Class
Y |
Management
Fees |
0.75% |
0.75% |
0.75% |
Distribution
and Shareholder Servicing (12b-1) Fees |
0.25% |
None |
None |
Shareholder
Servicing Fee1 |
None |
0.02% |
None |
Other
Expenses |
0.52% |
0.52% |
0.52% |
Total
Annual Fund Operating Expenses |
1.52% |
1.29% |
1.27% |
Fee
Waiver/Expense Reimbursements |
-0.27% |
-0.27% |
-0.27% |
Total
Annual Fund Operating Expenses after Fee Waiver/Expense
Reimbursements2 |
1.25% |
1.02% |
1.00% |
1.The
Trust’s Board of Trustees (the “Board of Trustees”) has authorized a shareholder
servicing plan fee in the amount of 0.10% of the Fund’s average daily net assets
for Class I shares. Currently, the shareholder servicing plan fee being charged
is 0.02% of the Fund's average daily net assets for Class I shares; however, the
fee may be increased to 0.10% of the Fund's average daily net assets for Class I
shares at any time.
2.Pursuant
to an operating expense limitation agreement between the Fund’s investment
adviser, Jensen Investment Management, Inc. (the “Adviser”), and the Trust, on
behalf of the Fund, the Adviser has agreed to waive its management fees and/or
reimburse expenses of the Fund to ensure that Total Annual Fund Operating
Expenses (exclusive of front-end or contingent deferred sales loads, Rule 12b-1
plan fees, shareholder servicing plan fees, interest (including interest
incurred in connection with bank and custody overdrafts), acquired fund fees and
expenses, leverage (i.e., any expenses incurred in connection with borrowings
made by the Fund), tax expenses, dividends and interest on short positions,
brokerage commissions, merger or reorganization expenses and extraordinary
expenses), do not exceed 1.00% of the Fund’s average daily net assets through
September 30,
2025. This operating expense limitation agreement can be
terminated only by, or with the consent of, the Board of Trustees. The Adviser
may request recoupment of previously waived fees and paid expenses from the Fund
up to three years from the date such fees and expenses were waived or paid,
subject to the operating expense limitation agreement, if such reimbursement
will not cause the Fund’s Total Annual Fund Operating Expenses (after the amount
of the
reimbursement
is taken into account) to exceed the lesser of: (1) the expense limitation in
place at the time of the waiver and/or expense payment; or (2) the expense
limitation in place at the time of the
recoupment.
Example
This Example is intended to help you compare the costs 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 either redeem or hold 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 operating expenses remain the same. The operating expense
limitation agreement discussed above is reflected only through
September 30, 2025. 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 |
Class
J |
$127 |
$454 |
$803 |
$1,790 |
Class
I |
$104 |
$382 |
$682 |
$1,533 |
Class
Y |
$102 |
$376 |
$671 |
$1,510 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
generate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These transaction costs, and potentially
higher taxes, which are not reflected in the Total Annual Fund Operating
Expenses or in the Example, affect the Fund’s performance. During the fiscal
year ended May 31, 2024, the Fund's portfolio turnover rate was
11.76% of the average
value of its portfolio.
Principal Investment
Strategies
The
Fund’s approach to investing focuses on companies determined by the Adviser to
have a record of achieving a high level of business performance over the long
term and which are, in the opinion of the Adviser, well positioned to maintain
competitive advantages and continued high returns on equity and free cash flow.
Under normal circumstances, the Fund invests at least 80% of its net assets
(plus borrowings for investment purposes) in U.S. and foreign equity securities
of companies meeting the criteria for quality and growth as determined by the
Adviser. The Adviser considers a company to be a “growth” company if it is
determined by the Adviser to have above-average potential for growth in revenue,
earnings, or cash flow. Additionally, the Adviser seeks companies that display
positive
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Prospectus |
Jensen
Funds |
7 |
performance
in a variety of historical and future performance measurements, relative to the
overall U.S. equity market, over a period of time. Examples of such
characteristics include:
1. Projected
earnings growth based on expected five- to ten-year annual increase in operating
earnings per share.
2. Trailing
revenue growth based on annualized revenue growth for the previous five to ten
years.
3. Trailing
earnings growth based on annualized earnings per share growth for the previous
five to ten years.
4. The
company’s ability to grow its business from free cash flow over an extended
period of time.
The
list above is not exclusive and there is no single factor that is determinative
of whether the Adviser considers a company to be a “growth” company.
The
Adviser considers a company to be a “quality” company if it possesses
competitive advantages as evidenced by generating a return on equity of 15% or
greater for at least ten consecutive fiscal years as determined by the
Adviser.
The Fund will
invest in equity securities of approximately 25 to 40 U.S. and foreign companies
that satisfy the Adviser’s investment criteria of “growth” and
“quality”. Equity securities in which the Fund invests as a
principal strategy consist of publicly traded companies around the world,
including securities issued by corporations located in developing or emerging
markets. Generally, each company in which the Fund invests must, as determined
by the Adviser: (1) have consistently achieved a high return on equity over the
prior ten fiscal years; (2) be in excellent financial condition; and (3) be
capable of sustaining outstanding business performance. The Adviser determines
on an annual basis the companies that qualify for inclusion in the Fund’s
investable universe. These companies are selected from a universe of companies
that, as determined by the Adviser, have produced long-term records of
consistently high returns on shareholder equity. In order to qualify for this
universe, each company must have a market capitalization of $1 billion or
more.
The
Fund must always own the securities of a minimum of 15 different companies in
its portfolio. The Fund strives to essentially be fully invested at all times in
publicly traded common stocks and other eligible equity securities issued by
companies that meet the investment criteria described in this Prospectus. The
Fund’s investments in other eligible equity securities may include depositary
receipts, such as American Depositary Receipts (“ADRs”), European Depositary
Receipts (“EDRs”), Global Depositary Receipts (GDRs”), or other forms of
depositary receipts. The Fund typically invests in securities of issuers from at
least three or more countries, including the United States, with at least 40% of
the Fund’s net assets invested in foreign securities. In making a determination
of whether
an
issuer will be classified as “domestic” or “foreign,” the Adviser will generally
look to the location of the issuer’s primary stock listing and/or regulatory
filings. However, in some cases, it may consider other factors, such as the
location of the issuer’s headquarters and senior management.
The
Fund may purchase securities when they are priced below their full values as
determined by the Adviser. The Fund may sell all or part of its position in a
company when the Adviser has determined that another qualifying security has a
greater opportunity to achieve the Fund’s objective. In addition, the Fund
generally sells its position in a company when the company no longer meets one
or more of the Fund’s investment criteria. In the event that the company no
longer satisfies the investment criteria and the failure is due to an
extraordinary situation that the Adviser believes will not have a material
adverse impact on the company’s operating performance, the Fund may continue to
hold and invest in the company.
The
Fund is non-diversified, which means that a relatively high percentage of its
assets may be invested in a limited number of
securities.
Principal Risks of Investing in
the Fund
Before
investing in the Fund, you should carefully consider your own investment goals,
the amount of time you are willing to leave your money invested, and the amount
of risk you are willing to take. Remember, in
addition to possibly not achieving your investment goals,
you
could lose money by investing in the Fund. The principal risks of investing in this Fund
are:
+ Stock Market
Risk
The
market value of stocks held by the Fund may decline over a short, or even an
extended period of time, resulting in a decrease in the value of a shareholder’s
investment.
+ Management
Risk
The
investment process used by the Adviser, including the Adviser’s valuation
models, to select securities for the Fund’s investment portfolio may not prove
effective, and the Adviser’s judgments about the attractiveness, value and
potential appreciation of the Fund’s investments may prove to be incorrect in
that the investments chosen by the Adviser may not perform as anticipated.
Certain risks are inherent in the ownership of any security, and there is no
assurance that the Fund’s investment objective will be
achieved.
+
General
Market Risk
Certain
securities selected for the Fund’s portfolio may be worth less than the price
originally paid for them, or less than they were worth at an earlier
time.
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Jensen
Funds |
Prospectus |
+
Recent
Market Events Risk
U.S.
and international markets have experienced and may continue to experience
significant periods of volatility in recent years and months due to a number of
economic, political and global macro factors including uncertainty regarding
inflation and central banks’ interest rates, the possibility of a national or
global recession, trade tensions, political events, the war between Russia and
Ukraine, armed conflict in the Middle East, and the impact of the coronavirus
(COVID-19) global pandemic. The impact of COVID-19 may last for an extended
period of time. As a result of continuing political tensions and armed
conflicts, including the war between Ukraine and Russia, the U.S. and the
European Union imposed sanctions on certain Russian individuals and companies,
including certain financial institutions, and have limited certain exports and
imports to and from Russia. The war has contributed to recent market volatility
and may continue to do so. Continuing market volatility as a result of recent
market conditions or other events may have an adverse effect on the performance
of the Fund.
+ Company and Sector
Risk
The
Fund’s investment strategy requires that a company selected for investment must,
among other criteria and in the determination of the Adviser, have attained a
return on equity of at least 15% or greater for at least ten consecutive fiscal
years. Due to the relatively limited number of companies that meet this
investment criteria and thereby qualify for investment consideration, at times
the Fund is prohibited from investing in certain companies and sectors that are
experiencing strong market appreciation, but have not attained the high level of
consistent, long-term business performance that is required for investment
consideration by the Fund. As a result, the Fund’s performance may trail the
overall market over a short or extended period of time compared to what its
performance may have been if the Fund was able to invest in such rapidly
growing, non-qualifying companies.
+ Non-Diversification
Risk
The
Fund is classified as a “non-diversified” investment company under the
Investment Company Act of 1940, as amended (the “1940 Act”). Therefore, the Fund
may invest a relatively high percentage of its assets in a smaller number of
issuers or may invest a larger proportion of its assets in the obligations of a
single issuer. As a result, the gains and losses on a single investment may have
a greater impact on the Fund’s net asset value (“NAV”) and may make the Fund
more volatile than more diversified funds.
+ Foreign Securities and Currency
Risk
Non-U.S.
securities are subject to risks relating to political, social and economic
developments abroad and differences between U.S. and foreign regulatory
requirements and market practices, including fluctuations in foreign currencies.
A change in the value of a foreign currency against the U.S. dollar will result
in a corresponding change in value of securities denominated in that currency.
Issuers of foreign securities may not be required to provide operational or
financial information that is as timely or reliable as those required for
issuers of U.S. securities. The income or dividends earned on foreign securities
may be subject to foreign withholding taxes. The securities of foreign companies
are frequently denominated in foreign currencies. To the extent that a market is
closed while the markets for the underlying currencies remain open, certain
markets may not always reflect significant price and rate
movements.
+ Emerging Markets
Risk
Countries
in emerging markets are generally more volatile and can have relatively unstable
governments, social and legal systems that do not protect shareholders,
economies based on only a few industries, and securities markets that trade a
small number of issues. Emerging market securities may be subject to relatively
more abrupt and severe price declines due to the smaller securities markets,
lower trading volumes and less government regulation of securities markets in
emerging market countries compared to those in developed countries. Investments
in emerging market securities generally are more illiquid and volatile and
subject to a higher risk of settlement disruptions than investments in
securities of issuers in developed countries.
+ Large-Capitalization Company
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-capitalization companies are sometimes unable to attain the high
growth rates of successful, smaller companies, especially during extended
periods of economic expansion. The Adviser considers companies with market
capitalizations in excess of $10 billion to be large-capitalization
companies.
+ Growth Stock
Risk
The
prices of growth stocks may be more sensitive to changes in current or expected
earnings than the prices of other stocks and may be out of favor with investors
at different periods of time.
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Prospectus |
Jensen
Funds |
9 |
Compared
to value stocks, growth stocks may experience larger price
swings.
+ Depositary Receipts
Risk
Investments
in depositary receipts may entail the special risks of foreign investing,
including currency exchange fluctuations, government regulations, and the
potential for political and economic instability.
+
Regulatory Risk
Legal,
tax and regulatory changes could occur that may adversely affect the Fund’s
ability to pursue its investment strategies and/or increase the costs of
implementing such strategies.
+
Competitive Risk
Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments.
Investment
Suitability
The
Fund is designed for long-term investors who are willing to accept short-term
market price fluctuations.
Performance
The performance
information below demonstrates 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 the one year and since inception periods
compare with those of a broad measure of market performance.
The Fund’s past performance
information, both before and after taxes, is not necessarily an indication of
how the Fund will perform in the future. Updated performance
information is available on the Fund’s website at www.jenseninvestment.com,
or by calling the Fund toll-free at 800-992-4144.
Jensen
Global Quality Growth Fund - Class J Shares1
Calendar
Year Returns as of December 31
1The
returns in the bar chart are for the Class J shares. Class I and Class Y shares
would have substantially similar annual returns as Class J shares because the
shares are invested in the same portfolio of securities and the annual returns
would differ only to the extent that the classes have different
expenses.
The
Fund’s calendar year-to-date return for Class J
shares as of June 30,
2024 was 6.14%. During the period of time shown in the bar
chart, the Fund’s highest quarterly return
for Class J shares was 11.67% for the quarter ended December 31, 2021,
and the lowest quarterly return for
Class J shares was -12.77% for the quarter ended June 30,
2022.
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Jensen
Funds |
Prospectus |
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Average
Annual Total Returns
For
the Periods Ended
December
31, 2023 |
One
Year |
Since
Inception
4/15/2020 |
Class
J Shares |
| |
Return Before
Taxes |
16.98% |
12.72% |
Return After
Taxes on Distributions |
16.88% |
12.63% |
Return After
Taxes on Distributions and Sale of Fund Shares |
10.11% |
10.03% |
Class
I Shares |
| |
Return Before
Taxes |
17.24% |
12.98% |
Class
Y Shares |
| |
Return Before
Taxes |
17.25% |
13.00% |
MSCI
All Country World Index
(reflects no deductions for
fees, expenses, or taxes) |
22.20% |
14.51% |
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 each investor’s individual tax situation and
may differ from those shown. Furthermore, the after-tax
returns shown are not relevant to those who hold their shares through
tax-deferred or other tax-advantaged arrangements such as 401(k) plans or
individual retirement accounts (“IRAs”). After-tax
returns are shown for the Class J shares only and after-tax returns for the
Class I and Class Y shares will
vary.
Management
Investment
Adviser
Jensen
Investment Management, Inc. is the Fund’s investment adviser.
Portfolio
Managers
The
Fund is managed by the Adviser’s investment team for the Fund, which is composed
of:
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Portfolio
Manager |
Year
Service Began with the Fund |
Primary
Title |
Eric
H. Schoenstein |
Since
April 2020 |
Chief
Investment Officer and Managing Director |
Robert
D. McIver |
Since
April 2020 |
President
and Managing Director |
Allen
T. Bond |
Since
April 2020 |
Head
of Research and Managing Director |
Kevin
J. Walkush |
Since
April 2020 |
Head
of ESG and Portfolio Manager |
Jeffrey
D. Wilson |
Since
January 2023 |
Portfolio
Manager |
All
members of the Fund’s portfolio management team share responsibility jointly and
primarily in managing the Fund and making decisions regarding the Fund’s
investments.
Purchase
and Sale of Fund Shares
You
may purchase or redeem shares by mail (Jensen Global Quality Growth Fund, c/o
U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for
regular mail) or 615 East Michigan Street, 3rd Floor, Milwaukee, WI
53202 (for overnight or express mail)), by telephone at 800-992-4144, on any day
the New York Stock Exchange (“NYSE”) is open for trading, or by wire. Investors
who wish to purchase or redeem Fund shares through a financial intermediary
should contact the financial intermediary directly. The minimum initial and
subsequent investment amounts are as follows:
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Investment Amount |
| Initial |
Additional |
Class
J Shares |
$2,500 |
$100 |
Class
I Shares |
$250,000 |
$100 |
Class
Y Shares |
$1,000,000 |
$100 |
These
minimums may be waived for accounts held in qualified retirement or profit
sharing plans, and/or omnibus accounts established by financial intermediaries
where the investment in the Fund is expected to meet the minimum investment
amount within a reasonable time period as determined by the Adviser. Registered
investment advisors and broker-dealers may generally meet the minimum investment
amount by aggregating multiple accounts with common ownership or discretionary
control within the Fund.
Tax
Information
The
Fund’s distributions will be taxed as ordinary income or long-term capital
gains, unless you are a tax-exempt investor or are investing through a
tax-deferred or other tax-advantaged arrangement, such as a 401(k) plan or an
IRA. You may be taxed later upon withdrawal of monies from tax-deferred
arrangements.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create
conflicts of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. You may be
required to pay commissions and/or other forms of compensation to the
broker-dealer or other intermediaries for transactions in the Fund, which are
not reflected in the fee table or expense example. Ask your adviser or visit
your financial intermediary’s website for more
information.
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Funds |
11 |
Investment
Objective, Principal Investment Strategies and Principal Risks
Investment
Objective - Both Funds
Each
Fund’s investment objective is long-term capital appreciation. Each Fund’s
investment objective is not a fundamental policy and may be changed upon
approval by the Board of Trustees (the “Board” or the “Board of Trustees”)
without shareholder approval upon 60 days’ written notice to Fund
shareholders.
Quality
Mid Cap Fund
The
Fund may not make any change to its investment policy of investing at least 80%
of its net assets (plus borrowing for investment purposes) in equity securities
of companies meeting the Adviser’s criteria for quality and mid-capitalization,
as suggested by the Fund’s name, without first changing the Fund’s name and
providing shareholders with at least 60 days’ prior written notice.
Global
Quality Growth Fund
The
Fund may not make any change to its investment policy of investing at least 80%
of its net assets (plus borrowing for investment purposes) in U.S. and foreign
equity securities of companies meeting the Adviser’s criteria for quality and
growth, as suggested by the Fund’s name, without first changing the Fund’s name
and providing shareholders with at least 60 days’ prior written
notice.
Principal
Investment Strategies - Both Funds
The
Funds’ approach to investing focuses on those companies with a record of
achieving a high level of business performance over the long term and which are,
in the opinion of the Adviser, well positioned to continue to do
so.
Investment
Process - Quality Mid Cap Fund
The
Fund’s investment strategy seeks to identify companies the Adviser deems to be
undervalued. To achieve the Fund’s objective of long-term capital appreciation,
the Fund invests primarily in the common stocks of approximately 30 to 50 U.S.
companies selected according to the specific criteria established by the Adviser
and described more fully below. Under normal circumstances, the Fund invests at
least 80% of its net assets (plus borrowing for investment purposes) in equity
securities of companies meeting the Adviser’s criteria for “quality” and
“mid-capitalization” as determined by the Adviser. The Adviser considers a
company to be a “mid-capitalization” company if it is listed in the Russell
Midcap®
Index at the time that the Fund’s investable universe is created. The Adviser
considers a company to be a “quality” company if it possesses competitive
advantages as evidenced by generating a return on equity of 15% or greater for
at least ten consecutive fiscal years as determined by the Adviser.
The
Adviser determines the companies that qualify for inclusion in the Fund’s
investable universe on at least an annual basis. The Adviser selects investments
for the Fund from a universe of publicly traded U.S. companies that, as
determined by the Adviser, have produced long-term records of consistently high
returns on shareholder equity. The Fund’s investment strategy is based on
applying fundamental analysis and valuation models to this select universe of
companies in order to identify investment opportunities. Fundamental analysis
includes assessment of the company’s industry, strategy, competitive advantages,
business segments, geographic distribution, growth and profitability, financial
statements (income statement, cash flow statement, balance sheet), and the
company’s
other financial reports. The valuation models are rooted in fundamentals-based
investment principles and include discounted cash flow models (for example,
determining the present value of expected future cash flows), relative valuation
methods (for example, a company’s valuation relative to its own history, its
industry peers, or the broader stock market), and ratio methods (for example, a
company’s price-to-earnings ratios). Underpinnings of the philosophy are
embedded in academic research, the Adviser’s history as an investor and
extensive back-testing of the Fund’s investment universe.
The
Fund’s strategy employs a multi-step process that defines the Fund’s investable
universe as publicly traded U.S. companies listed in the Russell
Midcap®
Index, and a return on equity of 15% or greater for at least ten consecutive
fiscal years. The return on equity is determined by the Adviser and may include
companies with negative equity resulting from debt-financing of large share
repurchases. These companies may have unique risk profiles depending on the
amount of debt incurred relative to the company’s ability to repay that debt.
The Adviser then conducts fundamental research on companies and applies
valuation models to determine potential investments.
Securities
of companies whose market capitalizations no longer meet the Adviser’s
definition of “mid-capitalization” after purchase may continue to be held in the
Fund. To a limited extent, the Fund may also purchase stocks of companies with
business characteristics similar to small- and mid-cap companies, but that may
have market capitalizations above the market capitalization of the largest
member of the Russell Midcap® Index.
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Jensen
Funds |
Prospectus |
The
Fund may sell all or part of its position in a company when the Adviser has
determined that another qualifying security has a greater opportunity to achieve
the Fund’s objective. In addition, the Fund generally sells its position in a
company when the company no longer meets one or more of the Fund’s investment
criteria. In the event that the company no longer satisfies the investment
criteria and the failure is due to an extraordinary situation that the Adviser
believes will not have a material adverse impact on the company’s operating
performance, the Fund may continue to hold and invest in the company. Examples
of such extraordinary situations include a significant acquisition, divestiture,
or accounting rule change that results in a significant change to a company’s
equity balance and a non-meaningful return on equity number.
In
its determination of which companies qualify for purchase by the Fund, the
Adviser also assesses a company's competitive, regulatory, and environmental,
social and governance ("ESG") risks to assess whether company management has, in
the opinion of the Adviser, adequately managed the impact of those risks to
mitigate business risk and enhance shareholder value. The Adviser does not make
portfolio purchase or sale decisions solely based on its evaluation of ESG
factors.
The
Quality Mid Cap Fund’s Portfolio Securities
Although
the Fund invests primarily in common stocks of U.S. companies, it may invest in
any of the securities set forth below, referred to as eligible equity
securities, issued by companies that meet the Fund’s investment criteria at the
time the Fund purchases the security.
+ Voting
common stock that is registered under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and is listed on a major U.S. stock exchange,
including the NYSE and the NASDAQ®
Stock Market LLC (“NASDAQ”).
+ Convertible
debt securities and convertible preferred stock listed on a major U.S. stock
exchange, including the NYSE and the NASDAQ, if the holder has the right to
convert the debt securities or preferred stock into common stock that satisfies
all the requirements above (as a non-principal strategy).
+ American
Depositary Receipts (“ADRs”) for the common stock of foreign corporations, if
the ADRs are issued in sponsored programs, registered under the Exchange Act and
listed on a major U.S. stock exchange, including the NYSE and the NASDAQ (as a
non-principal strategy). ADRs are receipts issued by domestic banks or trust
companies that represent the deposit
of
a security of a foreign issuer and are publicly traded in the U.S.
+ Equity
securities issued by foreign companies listed on a major U.S. stock exchange,
including the NYSE and the NASDAQ, (as a non-principal strategy). In making a
determination of whether an issuer will be classified as “domestic” or
“foreign,” the Adviser will generally look to the location of the issuer’s
primary stock listing and/or regulatory filings. However, in some cases, it may
consider other factors, such as the location of the issuer’s headquarters and
senior management.
The
Fund purchases investment securities with the expectation of holding them for
long-term appreciation. The Fund’s investment strategy governs the portfolio
turnover rate. The Fund’s investment policy permits the Fund to sell all or part
of its securities of a portfolio company when the Adviser determines that the
security should be replaced with another qualifying security that has a greater
opportunity for appreciation. In addition, the Fund generally sells its position
in a company if that company no longer satisfies the investment criteria
specified above, unless the failure is due to an extraordinary situation that
the Adviser believes will not have a material adverse impact on the company’s
operating performance, in which case the Fund may continue to hold and invest in
the company. Once the Fund makes a determination, however, that it must sell its
securities of a portfolio company no longer meeting the investment criteria, it
will sell its position. The strategies and timing for disposing of a position in
any portfolio company that no longer satisfies the Fund's investment criteria
are based on various and ongoing security-specific and portfolio-level
considerations taken into account by the Adviser. As a result, the Fund’s sale
of its position in a portfolio company may occur over an extended period of
time. The Fund is subject to some restrictions governing the percentage of its
assets that may be invested in the securities of any one company. See
“Fundamental Investment Restrictions,” “Portfolio Turnover” and “Tax Status of
the Fund” in the Fund’s Statement of Additional Information (“SAI”) for more
information on the Fund’s investment policies and restrictions. The Fund does
not engage in active and frequent trading of portfolio securities to achieve its
principal investment strategies.
Investment
Process - Global Quality Growth Fund
To
achieve the Fund’s investment objective of long-term capital appreciation, the
Fund invests primarily in the publicly traded common stocks of approximately 25
to 40 U.S. and foreign companies selected according to the specific, long-term
investment criteria established by the Adviser and described more fully below.
Under normal circumstances, the Fund invests at least 80% of its net assets
(plus borrowings for investment purposes) in U.S. and foreign equity
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Funds |
13 |
securities
of companies meeting the criteria for quality and growth as determined by the
Adviser. The Adviser considers a company to be a “growth” company if it is
determined by the Adviser to have above-average potential for growth in revenue,
earnings, or cash flow. Additionally, the Adviser seeks companies that display
positive performance in a variety of historical and future performance
measurements, relative to the overall U.S. equity market, over a period of time.
Examples of such characteristics include:
1. Projected
earnings growth based on expected five- to ten-year annual increase in operating
earnings per share.
2. Trailing
revenue growth based on annualized revenue growth for the previous five to ten
years.
3. Trailing
earnings growth based on annualized earnings per share growth for the previous
five to ten years.
4. The
company’s ability to grow its business from free cash flow over an extended
period of time.
The
list above is not exclusive and there is no single factor that is determinative
of whether the Adviser considers a company to be a “growth”
company.
The
Adviser considers a company to be a “quality” company if it possesses
competitive advantages as evidenced by generating a return on equity of 15% or
greater for at least ten consecutive fiscal years as determined by the
Adviser.
In
making a determination of whether an issuer will be classified as “domestic” or
“foreign,” the Adviser will generally look to the location of the issuer’s
primary stock listing and/or regulatory filings. However, in some cases, it may
consider other factors, such as the location of the issuer’s headquarters and
senior management. The Adviser believes these criteria provide objective
evidence that a company’s management is capable and dedicated to providing
above-average returns to the company’s shareholders. The Adviser determines on
an annual basis the companies that qualify for inclusion in the Fund’s
investable universe. These companies are selected from a universe of companies
that have produced long-term records of consistently high returns on shareholder
equity. In order to qualify for this universe, each company must have a market
capitalization of $1 billion or more.
As
determined by the Adviser in each case, a company must satisfy all of the
following criteria to be purchased by the Fund:
•As
determined annually, have a market capitalization of $1 billion or more and
attained a return on equity of at least 15% per year for each of its prior 10
fiscal years (which, for example, may include companies with negative equity
resulting from debt-financing of large share repurchases);
•Be
in excellent financial condition based on certain qualitative factors such as a
company’s ability to grow its business from free cash flow;
•Have
established entry barriers as evidenced by: (a) differentiated products, which
can be protected from competition by patents, copyright protection, effective
advertising or other means; (b) economies of scale in the production, marketing,
or maintenance of the company’s products or services; (c) absolute cost
advantages, such as obtaining raw materials at lower costs; (d) capital
requirements at a level which make it impractical for other firms to enter the
business; or (e) other sustainable competitive advantages identified by the
Adviser;
•Have
demonstrated a commitment to mitigating business risk and increasing shareholder
value by strategically investing free cash flow, for example, by acquiring
companies that contribute to their competitive advantage, reducing debt
obligations, repurchasing outstanding shares or increasing
dividends;
•Have
the capability of continuing to meet all of the above criteria; and
•Be
priced at a discount to its intrinsic value. Intrinsic value represents the
value of all estimated future cash flows generated by the company discounted to
the present. By acquiring the securities of companies having market prices below
intrinsic value, the Fund attempts to create a portfolio with less risk than the
overall securities markets.
In
its determination of which companies qualify for purchase by the Fund, the
Adviser also assesses a company's competitive, regulatory, and ESG risks to
assess whether company management has, in the opinion of the Adviser, adequately
managed the impact of those risks to mitigate business risk and enhance
shareholder value. The Adviser does not make portfolio purchase or sale
decisions solely based on its evaluation of ESG factors.
The
Adviser believes that its focus on companies that historically have been able to
achieve strong, consistent business performance and earnings growth over the
long term, as determined by the Adviser using the above-referenced criteria, is
consistent with the Fund’s investment objective of long-term capital
appreciation.
The
Fund purchases investment securities with the expectation of holding them for
long-term appreciation. The Fund’s investment strategy governs the portfolio
turnover rate. The Fund’s investment policy permits the Fund to sell all or part
of its securities of a portfolio company when the Adviser determines that the
security should be replaced with another qualifying security that has a greater
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opportunity
for appreciation. In addition, the Fund will begin to sell its position in a
portfolio company if that company no longer satisfies the investment criteria
specified above, including if its price exceeds intrinsic value, unless the
failure is due to an extraordinary situation that the Adviser believes will not
have a material adverse impact on the company's operating performance, in which
case the Fund may continue to hold and invest in the company. The strategies and
timing for disposing of a position in any portfolio company that no longer
satisfies the Fund's investment criteria are based on various and ongoing
security-specific and portfolio-level considerations taken into account by the
Adviser. As a result, the Fund’s sale of its position in a portfolio company may
occur over an extended period of time. The Fund is subject to some restrictions
governing the percentage of its assets that may be invested in the securities of
any one company. See “Fundamental Investment Restrictions” “Portfolio Turnover”
and “Tax Status of the Fund” in the Fund’s Statement of Additional Information
(“SAI”) for more information on the Fund’s investment policies and
restrictions.
The
Fund does not engage in active and frequent trading of portfolio securities to
achieve its principal investment strategies.
The
Global Quality Growth Fund’s Portfolio Securities
Although
the Fund invests primarily in common stocks of U.S. and foreign companies, it
may invest in any of the securities set forth below, referred to as eligible
equity securities, issued by companies that meet the Fund’s investment criteria
at the time the Fund purchases the security.
+ Voting
common stock that is registered under the Exchange Act, and is listed on a major
U.S. stock exchange, including the NYSE and the NASDAQ.
+ ADRs
for the common stock of foreign corporations, if the ADRs are issued in
sponsored programs, registered under the Exchange Act and listed on a major U.S.
stock exchange, including the NYSE and the NASDAQ. ADRs are receipts issued by
domestic banks or trust companies that represent the deposit of a security of a
foreign issuer and are publicly traded in the U.S.
+ EDRs
are negotiable securities issued by a European bank that represent the public
securities of non-European companies and trade on local exchanges. The shares
issued by the bank are priced in local currencies. EDRs are comparable to ADRs
in the U.S.
+ GDRs
are bank certificates issued in more than one country for shares of a non-U.S.
company. The bank certificate represents shares of the non-U.S. company, and an
international bank holds the shares.
+ Equity
securities issues by foreign companies listed on a major U.S. stock exchange,
including the NYSE and the NASDAQ.
+ Convertible
debt securities and convertible preferred stock listed on a major U.S. stock
exchange, including the NYSE and the NASDAQ, if the holder has the right to
convert the debt securities or preferred stock into common stock that satisfies
all the requirements above (as a non-principal strategy).
Foreign
Currency or Equivalents - Global Quality Growth Fund
The
Fund may invest in foreign currency exchange transactions as a non-principal
strategy. Exchange rates between the U.S. dollar and foreign currencies are a
function of such factors as supply and demand in the currency exchange markets,
international balances of payments, governmental intervention, speculation and
other economic and political conditions. Foreign exchange dealers may realize a
profit on the difference between the price at which the Fund buys and sells
currencies.
The
Funds’ Other Investments
As
a non-principal strategy, each Fund may also invest in cash or cash equivalents.
Some of these short-term instruments include:
+ Cash
held by the Funds’ custodian, U.S. Bank National Association;
+ Money
market mutual funds;
+ FDIC-insured
bank deposits;
+ United
States Treasury bills;
+ Commercial
paper rated A-1 by Standard and Poor’s Corporation (“S&P”) or Prime-1 by
Moody’s Investor Services, Inc. (“Moody’s”);
+ Demand
notes of companies whose commercial paper receives the same ratings listed above
by S&P or Moody’s;
+ Institutional-grade
paper maturing at 13 months or less; and
+ U.S.
government agency discount notes.
Implementation
of Investment Objective and Strategies
Each
Fund has developed a quality control program to ensure that the Fund’s
investment strategy, research process and administration are implemented
properly. The objectives of this program are to ensure that:
+ A
Fund’s investment strategy is applied consistently over time;
+ The
objective investment criteria are applied on a uniform basis; and
+ Management
focuses at all times on the best interests of the shareholders of a
Fund.
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Each
Fund’s investment strategy has been blended with certain administrative policies
to accomplish its investment objective. Each Fund has:
+ Established
an investment team to execute the investment discipline;
+ Objectively
defined each Fund’s research process so that every security in the Fund’s
portfolio has met specific objective and analytical tests;
+ Defined
each Fund’s trading policy to ensure that the Fund (a) purchases only eligible
equity securities issued by companies that meet the Fund’s investment criteria
and (b) makes changes to its portfolio only when such changes are consistent
with the Fund's investment discipline; and
+ Established
investment policies that prohibit each Fund from trading on margin, lending
securities, selling short, or trading in futures or options.
Temporary
Strategies; Cash or Similar Investments.
For
temporary defensive purposes, the Adviser may invest up to 100% of a Fund’s
total assets in high-quality, short-term debt securities and money market
instruments. These short-term debt securities and money market instruments
include shares of other mutual funds, commercial paper, certificates of deposit,
bankers’ acceptances, U.S. Government securities and repurchase agreements.
Taking a temporary defensive position may result in a Fund not achieving its
investment objective. Furthermore, to the extent that a Fund invests in money
market mutual funds for its cash position, there will be some duplication of
expenses because the Fund would bear its pro rata portion of such money market
funds’ management fees and operational expenses.
For
longer periods of time, a Fund may hold a substantial cash position. If the
market advances during periods when a Fund is holding a large cash position, the
Fund may not participate to the extent it would have if the Fund had been more
fully invested.
These
measures are in addition to those required by the 1940 Act. See the SAI for more
information on compliance with the 1940 Act.
Principal
Risks
Stock
Market Risk - Both Funds
Because
the Funds invest in common stock, the Funds are subject to the risk that the
market value of their securities may decrease over a short or extended period of
time. The prices of equity securities may change, sometimes rapidly and
unpredictably, in response to many different factors such as general economic
conditions, interest rates, the historical and prospective financial performance
of a company, the value of its assets, and investor sentiment and perception of
a company. In addition, particular sectors of the stock market may
underperform
or outperform the market as a whole, and the value of an individual security
held by a Fund may be more volatile than the market as a whole.
General
Market Risk - Both Funds
The
market value of a security may move up or down, sometimes rapidly and
unpredictably. These fluctuations may cause a security to be worth less than the
price originally paid for it, or less than it was worth at an earlier time.
Market risk may affect a single issuer, industry, sector of the economy or the
market as a whole. Global economies and financial markets are increasingly
interconnected, which increases the possibilities that conditions in one country
or region might adversely impact issuers in a different country or region. The
securities markets have experienced substantially lower valuations, reduced
liquidity, price volatility, credit downgrades, increased likelihood of default,
and valuation difficulties, all of which may increase the risks of investing in
securities held by the Funds.
Recent
Markets Events Risk - Both Funds
U.S.
and international markets have experienced and may continue to experience
significant periods of volatility in recent years and months due to a number of
economic, political and global macro factors including uncertainty regarding
inflation and central banks’ interest rates, the possibility of a national or
global recession, trade tensions, political events, the war between Russia and
Ukraine, armed conflict in the Middle East, and the impact of the coronavirus
(COVID-19) global pandemic. The impact of COVID-19 may last for an extended
period of time. As a result of continuing political tensions and armed
conflicts, including the war between Ukraine and Russia, the U.S. and the
European Union imposed sanctions on certain Russian individuals and companies,
including certain financial institutions, and have limited certain exports and
imports to and from Russia. The war has contributed to recent market volatility
and may continue to do so. Continuing market volatility as a result of recent
market conditions or other events may have an adverse effect on the performance
of the Fund.
Additionally,
a rise in protectionist trade policies, slowing global economic growth, risks
associated with epidemic and pandemic diseases, risks associated with the United
Kingdom’s departure from the European Union, the risk of trade disputes, and the
possibility of changes to some international trade agreements, could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen at the present time. Continuing market volatility as a
result of recent market conditions or other events may have adverse effects on
your account.
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Company
and Sector Risk - Both Funds
Each
Fund’s principal investment strategies require that a company selected for
investment must, among other criteria and in the determination of the Adviser,
have attained a return on equity of at least 15% or greater for at least ten
consecutive fiscal years. Due to the relatively limited number of companies that
meet this investment criteria and thereby qualify for investment consideration,
at times the Funds are prohibited from investing in certain companies and
sectors that are experiencing a shorter-term period of robust earnings growth
because they have not attained the high level of consistent, long-term business
performance that is required for investment consideration by the Funds. As a
result, the Funds’ performance may trail the overall market over a short or
extended period of time compared to what its performance may have been if the
Funds were able to invest in such rapidly growing, non-qualifying
companies.
ADRs
Risk - Both Funds
The
Funds may invest in ADRs. ADRs, which are typically issued by a U.S. financial
institution (a “depositary”), evidence ownership interests in a security or pool
of securities issued by a foreign company which are held by the depositary. ADRs
are denominated in U.S. dollars and trade in the U.S. securities markets.
Because ADRs are not denominated in the same currency as the underlying
securities into which they may be converted, they are subject to currency risks.
In addition, depositary receipts involve many of the same risks of investing
directly in foreign securities. Generally, ADRs are treated by the Funds the
same as foreign securities.
Management
Risk - Quality Mid Cap Fund
The
investment process used by the Adviser, including the Adviser’s valuation
models, to select securities for investment may not prove effective, and the
Adviser’s judgments about the attractiveness, value and potential appreciation
of the Fund’s investment may prove to be incorrect in that the investments
chosen by the Adviser may not perform as anticipated. Certain risks are inherent
in the ownership of any security, and there is no assurance that the Fund’s
investment objective will be achieved.
Mid-Capitalization
Company Risk - Quality Mid Cap Fund
Generally,
mid-capitalization, and less seasoned companies, have more potential growth than
large-capitalization companies. They also often involve greater risk than
large-capitalization companies, and these risks are passed on to the Fund.
Mid-capitalization companies may not have the management experience, financial
resources, product diversification and competitive strengths of
large-capitalization companies, and, therefore, their securities tend to be more
volatile than the securities of larger, more established companies, making them
less liquid than other securities. Mid-
capitalization
company stocks tend to be bought and sold less often and in smaller amounts than
larger company stocks. Because of this, if the Fund wants to sell a large
quantity of a mid-capitalization company’s stock, it may have to sell at a lower
price than the Adviser might prefer, or it may have to sell in smaller than
desired quantities over a period of time. An investment in a fund that is
subject to these risks may be more suitable for long-term investors who are
willing to bear the risk of these fluctuations.
Management
Risk - Global Quality Growth Fund
The
Adviser makes all decisions regarding the Fund’s investments. Accordingly, the
Fund’s investment success depends on the skill of the Adviser in evaluating,
selecting and monitoring the Fund’s assets and investments. The Fund may only
invest in those companies that can be purchased at a discount to their intrinsic
values as calculated by the Adviser. Since the intrinsic value is calculated
from estimated future cash flows, the Adviser’s estimate may be in error or
change as the forces of economics, competition, inflation, and other factors
affect each particular company, and as a result the market price of a company’s
securities may never reach the Adviser’s estimate of its intrinsic value. In
addition, because intrinsic value is a function of business performance and does
not change as much or as frequently as market value, the relationship between
the two is not constant, and this disconnect may result in the market price of a
company’s securities remaining significantly below the Adviser’s estimate of its
intrinsic value for extended periods of time. Although each company selected for
investment by the Fund must have demonstrated at least a decade of high
operating performance that the Adviser believes can be continued by maintaining
or increasing its advantage over competitors, there is a risk that other
companies engaged in the same business may succeed in gaining a competitive
advantage. The Adviser’s assessment of its investment criteria for a portfolio
company may be incorrect. Certain risks are inherent in the ownership of any
security, and there is no assurance that the Fund’s investment objective will be
achieved.
Non-Diversification
Risk - Global Quality Growth Fund
The
Fund is a non-diversified mutual fund. This means the Fund is not as restricted
as some other mutual funds are by the provisions of the 1940 Act with respect to
the diversification of its investments. The Fund’s “non-diversified status”
permits the investment of a greater portion of the Fund’s assets in the
securities of a smaller number of issuers than would be permissible under a
“diversified status.” The appreciation or depreciation of a single portfolio
security, or the performance of particular sectors of the stock market, may have
a greater impact on the NAV of the Fund. Accordingly, the NAV of the Fund may
fluctuate more than a comparable “diversified” fund.
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Foreign
Securities and Currency Risk - Global Quality Growth Fund
Generally,
foreign securities are issued by companies organized outside the U.S. and are
traded primarily in markets outside the U.S. Foreign securities may be more
difficult to sell than U.S. securities. Investments in foreign securities may
involve difficulties in receiving or interpreting financial and economic
information, possible imposition of taxes, higher brokerage and custodian fees,
possible currency exchange controls or other government restrictions, including
possible seizure or nationalization of foreign deposits or assets. Foreign
securities may also be less liquid and more volatile than U.S. securities. There
may also be difficulty in invoking legal protections across
borders.
Many
of the foreign securities in which the Fund invests will be denominated or
quoted in a foreign currency. Changes in foreign currency exchange rates will
affect the value of securities denominated or quoted in foreign currencies.
Exchange rate movements can be large and can endure for extended periods of
time, affecting either favorably or unfavorably the value of the Fund’s
assets.
Emerging
Markets Risk - Global Quality Growth Fund
The
risks of foreign investments are usually much greater when they are made in
emerging markets. Investments in emerging markets may be considered speculative.
Emerging markets are riskier than more developed markets because they tend to
develop unevenly and may never fully develop. They are more likely to experience
high rates of inflation and currency devaluations, which may adversely affect
returns. In addition, many emerging markets have far lower trading volumes and
less liquidity than developed markets. Since these markets are often small, they
may be more likely to suffer sharp and frequent price changes or long-term price
depression because of adverse publicity, investor perceptions or the actions of
a few large investors. In addition, traditional measures of investment value
used in the U.S., such as price to earnings ratios, may not apply to certain
emerging markets. Also, there may be less publicly available information about
issuers in emerging markets than would be available about issuers in more
developed capital markets, and such issuers may not be subject to accounting,
auditing and financial reporting standards and requirements comparable to those
to which companies in developed countries are subject. In addition, investments
in emerging market countries present risks to a greater degree than those
presented by investments in countries with developed securities markets and more
advanced regulatory systems.
Many
emerging markets have histories of political instability and abrupt changes in
policies. As a result, their governments may be more likely to take actions that
are hostile or detrimental to private enterprise or foreign investment than
those of more developed
countries,
including expropriation of assets, confiscatory taxation or unfavorable
diplomatic developments. Some emerging countries have pervasive corruption and
crime that may hinder investments. Certain emerging markets may also face other
significant internal or external risks, including the risk of war, and ethnic,
religious and 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. National policies that
may limit the Fund’s investment opportunities include restrictions on investment
in issuers or industries deemed sensitive to national interests.
Emerging
markets may also have differing legal systems and the existence or possible
imposition of exchange controls, custodial restrictions or other laws or
restrictions applicable to investments differ from those found in more developed
markets. Sometimes, they may lack, or be in the relatively early development of,
legal structures governing private and foreign investments and private property.
In addition to withholding taxes on investment income, some emerging market
countries may impose different capital gains taxes on foreign
investors.
Practices
in relation to settlement of securities transactions in emerging market
countries involve higher risks than those in developed markets, in part because
the Fund will need to use brokers and counterparties that are less well
capitalized, and custody and registration of assets in some countries may be
unreliable. The possibility of fraud, negligence, and/or undue influence being
exerted by the issuer or refusal to recognize ownership exists in some emerging
markets, and, along with other factors, could result in ownership registration
being completely lost. The Fund would absorb any loss resulting from such
registration problems and may have no successful claim for compensation. In
addition, communications between parties in the U.S. and parties in emerging
market countries may be unreliable, increasing the risk of delayed settlements
or losses of security certificates.
GDRs
and EDRs Risk - Global Quality Growth Fund
To
the extent the Fund may invest in foreign securities, the Fund may invest in
GDRs and EDRs. GDRs and EDRs are receipts issued by foreign banks or trust
companies, or foreign branches of U.S. banks that represent an interest in
shares of either a foreign or U.S. corporation. GDRs and EDRs may not be
denominated in the same currency as the underlying securities into which they
may be converted, and are subject to currency risks. Depositary receipts involve
many of the same risks of investing directly in foreign securities.
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Large-Capitalization
Company Risk - Global Quality Growth Fund
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-capitalization companies are sometimes unable to attain the high
growth rates of successful, smaller companies, especially during extended
periods of economic expansion. The Adviser considers companies with market
capitalizations in excess of $10 billion to be large-capitalization
companies.
Growth
Stock Risk - Global Quality Growth Fund
The
prices of growth stocks may be more sensitive to changes in current or expected
earnings than the prices of other stocks and may be out of favor with investors
at different periods of time. Compared to value stocks, growth stocks may
experience larger price swings.
Regulatory
Risk- Both Funds
Legal,
tax and regulatory changes could occur that may adversely affect the Funds’
ability to pursue its investment strategies and/or increase the costs of
implementing such strategies. The potential impact that such regulations could
have on securities held by the Funds is unknown. No assurance can be made that
the U.S. Government or a foreign government or any U.S. or foreign regulatory
body (or other authority or regulatory body) will not continue to take further
legislative or regulatory action in response to the continuing economic turmoil
or otherwise, and the effect of such actions, if taken, cannot be
known.
Competitive
Risk- Both Funds
Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. Some individual companies may be unable to
respond quickly to new competitive challenges, such as changes in technology and
consumer tastes, and also may not be able to attain the high growth rate of
other companies, especially during extended periods of economic expansion. Some
companies may have limited product lines or financial resources, may be
dependent upon a particular niche of the market, and may be dependent upon a
small or inexperienced management group.
Other
Investment Risks - Both Funds
The
Funds may engage in certain non-principal investment strategies as discussed in
this Prospectus. To the extent that the Funds engage in these non-principal
strategies, the Funds will be subject to the following risks:
Preferred
Stock Risk - Both Funds
A
preferred stock is a blend of the characteristics of a bond and common stock.
Preferred stock does not have the seniority of a bond and, unlike common stock,
its participation in the issuer’s growth may be limited. Generally, preferred
stock has preference over common stock in the receipt of dividends or in any
residual assets after payment to creditors should the issuer be dissolved.
Although the dividend on a preferred stock may be set at a fixed annual rate, in
some circumstances it may be changed or deferred by the issuer.
Convertible
Securities Risk - Both Funds
A
convertible security is a fixed-income security (a debt instrument or a
preferred stock) that may be converted at a stated price within a specified
period of time into a certain quantity of the common stock of the same or a
different issuer. Convertible securities are senior to common stock in an
issuer’s capital structure, but are usually subordinated to similar
non-convertible securities. The market value of a convertible security performs
like that of a regular debt security, that is, if market interest rates rise,
the value of the convertible security falls.
Cybersecurity
Risk - Both Funds
With
the increased use of technologies such as the Internet to conduct business, the
Funds are susceptible to operational, information security, and related risks.
In general, cyber incidents can result from deliberate attacks or unintentional
events. Cyber attacks include, but are not limited to, gaining unauthorized
access to digital systems (e.g., through “hacking” or malicious software coding)
for purposes of misappropriating assets or sensitive information, corrupting
data, or causing operational disruption. Cyber attacks may also be carried out
in a manner that does not require gaining unauthorized access, such as causing
denial-of-service attacks on websites (i.e., efforts to make network services
unavailable to intended users). Cyber incidents affecting the Funds or their
service providers have the ability to cause disruptions and impact business
operations, potentially resulting in financial losses, interference with the
Fund’s ability to calculate its NAV, impediments to trading, the inability of
shareholders to transact business, violations of applicable privacy and other
laws, regulatory fines, penalties, reputational damage, reimbursement or other
compensation costs, or additional compliance costs. Similar adverse consequences
could result from cyber incidents affecting issuers of securities in which the
Funds invest, counterparties with which the Funds engage in transactions,
governmental and other regulatory authorities, exchange and other financial
market operators, banks, brokers, dealers, insurance companies and other
financial institutions (including financial intermediaries and service providers
for shareholders) and other parties. In addition, substantial costs may be
incurred in order to prevent any cyber incidents in the future. While the Funds’
service
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providers
have established business continuity plans in the event of, and risk management
systems to prevent, such cyber incidents, there are inherent limitations in such
plans and systems including the possibility that certain risks have not been
identified. Furthermore, the Funds cannot control the cyber security plans and
systems put in place by its service providers or any other third parties whose
operations may affect the Funds or their shareholders. As a result, the Funds
and their shareholders could be negatively impacted.
International
Risk and Foreign Securities Risk - Quality Mid Cap Fund
Although
all of the Fund’s portfolio securities must be listed on U.S. stock exchanges,
including the NYSE and the NASDAQ, the Fund may invest in certain foreign
securities, as well as the securities of domestic companies that engage in
significant foreign business. These investments involve certain risks, such
as:
+ Political
or economic instability in the country where the company is headquartered or
doing business;
+ Fluctuations
in the relative rates of exchange between the currencies of different
nations;
+ The
difficulty of predicting international trade patterns; and
+ The
possibility of imposition of exchange control regulations.
These
securities may also be subject to greater fluctuations in price. With respect to
certain foreign countries, there also is a possibility of expropriation,
nationalization, confiscatory taxation, political, economic or social
instability and diplomatic developments that could affect investments in those
countries.
Management
of the Funds
Investment
Adviser
The
Adviser, Jensen Investment Management, Inc., is located at 5500 Meadows Road,
Suite 200, Lake Oswego, Oregon 97035-3623. The Adviser provides investment
management services to a wide array of individual and institutional clients,
including private clients, pension plans, foundations, endowments and other
businesses. The investments and business operations of the Funds are managed by
the Adviser subject to oversight by the Board of Trustees. The Adviser is also
responsible for selecting brokers and dealers to execute the Funds’ portfolio
transactions.
The
Quality Mid Cap Fund compensates the Adviser for its services at the annual rate
of 0.65% of its average daily net assets, payable on a monthly basis in arrears.
The Global Quality Growth Fund compensates the Adviser for its services at the
annual rate of 0.75% of its average daily net assets, payable on a monthly basis
in arrears. For the fiscal year ended May 31, 2024, the Adviser received
management fees of 0.62% (net of fee waivers) of the Quality Mid Cap Fund’s
average daily net assets, and 0.48% (net of fee waivers) of the Global Quality
Growth Fund’s average daily net assets.
Subject
to the general supervision of the Board of Trustees, the Adviser is responsible
for managing the Funds in accordance with their investment objectives and
policies and making decisions with respect to, and also orders for, all
purchases and sales of portfolio securities. The Adviser also maintains related
records for the Funds.
Fund
Expenses.
The Funds are responsible for their own operating expenses; however, pursuant to
an operating expense limitation agreement between the Adviser and the Trust, on
behalf of the Funds, the Adviser has agreed to waive its management fees and/or
reimburse expenses of each Fund to ensure that the Fund’s total annual operating
expenses (exclusive of front-end or contingent deferred loads, Rule 12b-1 plan
fees, shareholder servicing plan fees, interest (including interest incurred in
connection with bank and custody overdrafts), acquired fund fees and expenses,
leverage (i.e.,
any expenses incurred in connection with borrowings made by the Funds), tax
expenses, dividends and interest expenses on short positions, brokerage
commissions, merger or reorganization expenses and extraordinary expenses) do
not exceed 0.80% of the average daily net assets of the Quality Mid Cap Fund
through September 30, 2025, or 1.00% of the Global Quality Growth Fund’s
average daily net assets through September 30, 2025. Any waiver of
management fees or payment of expenses made by the Adviser may be reimbursed by
a Fund in subsequent years if the Adviser so requests. The Adviser may request
recoupment of previously waived fees and paid expenses from a Fund up to three
years from the date such fees and expenses were waived or paid, subject to the
operating expense limitation agreement, and is permitted to be reimbursed for
fee reductions and/or expense payments made in the prior three years, if such
reimbursement will not cause the Fund’s Total Annual Operating Expenses (after
the amount of the reimbursement is taken into account) to exceed the lesser of:
(1) the expense limitation in place at the time of the waiver and/or expense
payment; or (2) the expense limitation in place at the time of the recoupment.
Any such
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reimbursement
will be reviewed and approved by the Board of Trustees. The operating expense
limitation agreement can be terminated only by, or with the consent of, the
Board of Trustees.
The
Board of Trustees most recently approved the Funds’ investment advisory
agreement with the Adviser on August 15, 2024. A discussion regarding the basis
of the approval by the Board of Trustees of the Funds’ investment advisory
agreement with the Adviser will be included in the Funds’ semi-annual report to
shareholders for the six-month period ending November 30, 2024.
The
Adviser also serves as investment adviser to individual and institutional
accounts and was managing assets totaling approximately $12.1 billion at August
31, 2024. The Adviser also serves as investment adviser to The Jensen Quality
Growth Fund Inc., an open-end mutual fund and the Jensen Quality Growth ETF, an
exchange-traded fund, each of which is currently offered in a separate
prospectus and SAI.
Portfolio
Managers
Each
Fund is managed by a team composed of the Adviser’s investment team for the
Funds, which is responsible for all of the Funds’ investment decisions. All
members of each Fund’s portfolio management team share responsibility in
managing the Fund and making decisions regarding the Fund’s investments. The SAI
provides additional information about the investment team’s compensation, other
accounts managed by each member of the investment team, and each member’s
ownership of securities in the Funds. The investment team for the Quality Mid
Cap Fund is composed of Eric H. Schoenstein, Kurt M. Havnaer, Adam D. Calamar
and Tyra S. Pratt. The investment team for the Global Quality Growth Fund is
composed of Eric H. Schoenstein, Robert D. McIver, Allen T. Bond, Kevin J.
Walkush and Jeffrey D. Wilson.
Eric
H. Schoenstein, Chief Investment Officer, serves as a portfolio manager and
oversees the investment process, participating in investment decision-making.
Mr. Schoenstein previously held the position of Director of Business Analysis of
the Adviser. Mr. Schoenstein, a Vice President of the Adviser, has been a
Managing Director of the Adviser since 2003 and has over 37 years of accounting
and business analysis experience. He spent nearly 14 years with Arthur Andersen
LLP, having served as a Senior Audit Manager providing a wide variety of
services to clients in both the public and private sectors, primarily in the
manufacturing, transportation and wholesale and retail distribution
industries.
Kurt
M. Havnaer serves as a portfolio manager, participates in investment
decision-making, and has responsibilities for investment research. Mr. Havnaer,
CFA, Portfolio Manager, has been employed
by
the Adviser since December 2005, previously holding the position of Business
Analyst through September 2015. Mr. Havnaer has over 36 years of experience in
the investment management industry. Prior to joining the Adviser, he spent nine
years at Columbia Management Advisors as a high yield analyst and co-portfolio
manager. Prior to that, Mr. Havnaer was a portfolio manager, analyst and trader
at Safeco Asset Management.
Adam
D. Calamar serves as a portfolio manager, participates in investment
decision-making, and has responsibilities for investment research. Mr. Calamar,
CFA, Portfolio Manager, has been employed by the Adviser since May 2008, and has
over 17 years of experience in the investment management industry. Mr. Calamar
held the position of Business Analyst from January 2010 through September 2015,
and previously held the position of Manager of Institutional Services where he
assisted in relationship management with the company’s institutional clients.
Mr. Calamar was previously employed by Broadmark Asset Management,
LLC.
Tyra
S. Pratt serves as a portfolio manager, participates in investment
decision-making, and has responsibilities for investment research. Ms. Pratt,
CFA, Portfolio Manager, has been employed by the Adviser since July 2017,
previously holding the position of Business Analyst through January 2021, and
has 13 years of experience in the investment management industry. Ms. Pratt was
previously employed by CTC | myCFO from July 2014 until July 2017.
Robert
D. McIver serves as a portfolio manager and participates in investment
decision-making. Mr. McIver joined the Adviser in September 2004 as Director of
Operations and Portfolio Manager and was appointed President and Managing
Director of the Adviser in February 2007. Mr. McIver has over 36 years of
experience in the banking and investment management business, including 2 years
with National Westminster Bank as a corporate banker, 10 years with Schroder
Investment Management in London, and two additional years with Schroder &
Co. Trust Bank where he served as Chief Investment Officer, Latin America. He
managed two private property management and resort companies in British
Columbia, Canada from 2001 - 2004.
Allen
T. Bond, Head of Research, serves as a portfolio manager and has served as Vice
President and Managing Director of the Adviser since September 2017,
participates in investment decision-making, and has responsibilities for
investment research. Mr. Bond, CFA, has been employed by the Adviser since
February 2007, previously holding the position of Business Analyst through
September 2015, and Portfolio Manager since October 2015. Mr. Bond has over 26
years of experience in the investment management industry. Mr. Bond previously
served as a Credit Analyst at Washington Mutual,
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Inc.
where he performed fundamental analysis on investment-grade corporate bond
issuers in connection with a fixed-income securities portfolio managed by the
insurance company subsidiary of Washington Mutual, Inc. Prior to Washington
Mutual, Inc., he was a High Yield Credit Analyst and Trader for Columbia
Management Group. Mr. Bond began his career as a trader at Ferguson Wellman
Capital Management.
Kevin
J. Walkush, Head of ESG, serves as a portfolio manager, participates in
investment decision-making, and has responsibilities for investment research.
Mr. Walkush, Portfolio Manager, has been employed by the Adviser since May 2007,
previously holding the position of Business Analyst through September 2015. Mr.
Walkush has over 20 years of experience in the investment management industry.
Mr. Walkush joined the Adviser from Morningstar, Inc. where he held the position
of Stock Analyst. In that role, Mr. Walkush provided equity research coverage of
industrial, mining and alternative energy stocks. Prior to Morningstar, Inc.,
Mr. Walkush consulted for Lux Capital where he performed due diligence on
investment candidates as well as prepared university-based technology for
commercialization. Mr. Walkush has also held various
finance
and operational roles at Amazon.com and Weyerhaeuser Company.
Jeffrey
D. Wilson serves as a portfolio manager, participates in investment
decision-making, and has responsibilities for investment research. Mr. Wilson,
CFA, Portfolio Manager, has been employed by the Adviser since July 2019,
previously holding the position of Business Analyst through December 2022, and
has over 19 years of experience in the investment management industry. Mr.
Wilson joined the Adviser from Scharf Investments, LLC (“Scharf”) where he held
the position of Senior Research Analyst. In that role, Mr. Wilson provided
global equity research coverage of domestic and international stocks. Prior to
Scharf, he was an Analyst and Portfolio Manager at Freestone Capital Management,
LLC, performing due diligence on several all-cap quality strategies during his
six-year tenure. Mr. Wilson began his career at ICM Asset Management as a
Research Analyst in 2005.
CFA®
is a registered trademark owned by the CFA Institute.
Shareholder
Information
Choosing
a Share Class
Below
is information about the manner in which the Funds offer shares.
The
Funds offer Class J, Class I and Class Y shares. The different classes represent
investments in the same portfolio of securities, but the classes are subject to
different expenses and may have different share prices as outlined below. Each
class of shares has different expenses and distribution arrangements to provide
for different investment needs. You should always discuss the suitability of
your investment with your broker-dealer or financial adviser.
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| Class
J |
Class
I |
Class
Y |
Initial
Sales Charge |
No.
Entire purchase price is invested in shares of the Fund. |
No.
Entire purchase price is invested in shares of the Fund. |
No.
Entire purchase price is invested in shares of the Fund. |
Ongoing
Distribution and/or Shareholder Service (Rule 12b-1 Fees) |
0.25% |
No. |
No. |
Shareholder
Servicing Fee |
No. |
0.10% |
No. |
Conversion
feature(1) |
Yes. |
Yes. |
Yes. |
(1)See
the section titled “Share Class Conversions” in this Prospectus for more
information on the voluntary and/or automatic conversions that apply to each
share class.
Class
J Shares.
You may purchase shares of the Funds directly from the Funds. Class J shares of
the Funds are sold at the NAV, which means that you pay no sales charges or
commissions when you purchase shares. Your share price will be the next NAV
calculated after a Fund receives your request in good order.
Class
I Shares.
Unless otherwise exempt from its investment minimum, only investors who are
willing to make a significant initial investment may purchase Class I shares of
the Funds directly from the Funds. Class I shares of the Funds are sold at the
NAV, which means that you pay no sales charges or commissions when you purchase
shares. Your share price will be the next NAV calculated after a Fund receives
your request in good order.
Class
Y Shares. Class
Y shares are available only to institutional and individual investors willing to
make a significant initial investment, to employees and clients of the Adviser,
and to employee benefit plans sponsored by the Adviser. Your share price will be
the next NAV calculated after a Fund receives your request in good
order.
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Distribution
and Shareholder Servicing Plan – Class J Shares
Each
Fund has implemented a Distribution and Shareholder Servicing Plan (the “12b-1
Plan”) in accordance with Rule 12b‑1 of the 1940 Act. The 12b-1 Plan allows
the Funds to pay Rule 12b-1 fees to financial intermediaries (including
broker-dealers that sponsor mutual fund supermarket programs) and other service
providers for the sale and distribution of Class J shares and for shareholder
servicing and maintenance of shareholder accounts. The 12b-1 Plan authorizes and
provides for payments of 0.25% per year of a Fund’s average daily net assets for
Class J shares for sale and distribution services and shareholder servicing. As
these fees are paid out of a 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.
In
addition, the Adviser may make substantial payments from its own resources,
which include the investment advisory fees received from the Funds and other
clients, to compensate those financial intermediaries (including broker-dealers
that sponsor mutual fund supermarket programs) and other service providers that
provide sales and distribution services and shareholder servicing and account
maintenance to a Fund’s Class J shares and charge a higher fee than the 0.25%
paid by the Class J shares under the 12b-1 Plan. The portion of these fees that
are not sub-transfer agency fees and which are in excess of 0.25% is paid by the
Adviser and not by a Fund’s Class J shares. The fee rates charged by these
financial intermediaries vary. The SAI provides more information concerning
payments to financial intermediaries. Investors should consult their financial
intermediary regarding the amount and other details of the payments the
financial intermediary receives for the services it provides to a Fund’s Class J
shares and other mutual funds available to the financial intermediary’s
customers. To the extent that these fees received by the financial intermediary
for its services to the Funds, or other payments it receives for providing Fund
marketing support, are higher than those paid by other mutual funds, it may
create an incentive for the financial intermediary and its financial
professionals to sell the Funds rather than other mutual funds or to sell Class
J shares over other share classes of the Funds for which the intermediary does
not receive payment or receives a lower amount.
Shareholder
Servicing Plan – Class I Shares
Each
Fund has implemented a Shareholder Servicing Plan (the “Shareholder Servicing
Plan”) on behalf of its Class I shares that allows the Funds to make payments to
financial intermediaries and other service providers for Class I shareholders in
return for shareholder servicing and maintenance of a Fund’s Class I shareholder
accounts. These shareholder servicing and maintenance
fees
may not exceed 0.10% per year of a Fund’s average daily net assets for Class I
shares and may not be used to pay for any services in connection with the
distribution and sale of Class I shares. Currently, the shareholder servicing
fee being charged for each Fund is 0.02% of the Fund’s average daily net assets
for Class I shares; however, the fee may be increased to 0.10% of the Fund’s
average daily net assets for Class I shares at any time.
In
addition, the Adviser may make payments from its own resources, which include
the investment advisory fees received from the Funds and other clients, to
compensate any financial intermediaries and other service providers that provide
shareholder servicing and account maintenance to a Fund’s Class I shares and
charge a higher fee than the 0.10% paid by the Class I shares under the
Shareholder Servicing Plan. Any portion of these fees in excess of 0.10% is paid
by the Adviser and not by a Fund’s Class I shares. The fee rates charged by
these financial intermediaries vary. The SAI provides more information
concerning payments to financial intermediaries. Investors should consult their
financial intermediary regarding the details of the payments the financial
intermediary receives for providing servicing for a Fund’s Class I shares and
other mutual funds. These payments made by the Funds to a financial intermediary
may be higher than payments made for the same services by other mutual funds
that are available to customers of the financial intermediary. In such case, the
financial intermediary and its financial professionals may have an incentive to
sell the Funds rather than other mutual funds that are available to the
financial intermediary’s customers or to sell Class I shares over other share
classes of the Funds or which the intermediary does not receive payment or
receives a lower amount.
Pricing
of Fund Shares
The
price of each class of Fund shares is its NAV. The NAV of each class of shares
is calculated at the close of regular trading hours of the NYSE (generally 4:00
p.m., Eastern Time) each day the NYSE is open. Your purchase and redemption
requests are priced at the next NAV calculated after receipt of a properly
completed purchase or redemption order. If the NYSE closes early, each Fund will
calculate its NAV at the closing time on that day. If an emergency exists as
permitted by the SEC, the NAV may be calculated at a different time. The NAV for
each class is calculated by dividing the total value of each Fund’s securities
and other assets that are allocated to the class, less the liabilities allocated
to that class, by the total number of shares outstanding for the class. Due to
the fact that different expenses are charged to a Fund’s share classes, the NAVs
of the different classes of a Fund may vary.
Each
equity security owned by a Fund that is listed on a national securities
exchange, except for portfolio securities listed on
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NASDAQ,
is valued at its last sale price on that exchange on the date as of which assets
are valued.
If
a security is listed on more than one exchange, the Funds will use the price on
the exchange that the Funds generally consider to be the principal exchange on
which the security is traded. Portfolio securities listed on NASDAQ will be
valued at the NASDAQ Official Closing Price, which may not necessarily represent
the last sale price. If there has been no sale on such exchange or on NASDAQ on
such day, the security is valued at the mean between the most recent quoted bid
and asked prices at the close of the exchange on such day or the security shall
be valued at the latest sales price on the “composite market” for the day such
security is being valued. The composite market is defined as a consolidation of
the trade information provided by national securities and foreign exchanges and
over-the-counter markets as published by an approved independent pricing service
(a “Pricing Service”).
Foreign
securities will be priced in their local currencies as of the close of their
primary exchange or market or as of the close of the NYSE, generally 4:00 p.m.
Eastern Time, whichever is earlier. Foreign securities, currencies and other
assets denominated in foreign currencies are then translated into U.S. dollars
at the exchange rate of such currencies against the U.S. dollar using the
applicable currency exchange rates as of the close of the NYSE, generally 4:00
p.m. Eastern Time. The Global Quality Growth Fund invests in securities that
trade on exchanges that are open on days when the Fund is not priced, which may
cause the Fund’s NAV to change during times when the Fund is not available for
purchase or sale.
Debt
securities, including short-term debt instruments having a maturity of 60 days
or less, are valued at the mean in accordance with prices supplied by a Pricing
Service. Pricing Services may use various valuation methodologies such as the
mean between the bid and the asked prices, matrix pricing and other analytical
pricing models as well as market transactions and dealer quotations. If a price
is not available from a Pricing Service, the most recent quotation obtained from
one or more broker-dealers known to follow the issue will be obtained.
Quotations will be valued at the mean between the bid and the offer. Any
discount or premium is accreted or amortized using the “constant yield” method
until maturity.
Money
market funds, demand notes and repurchase agreements are valued at cost. If cost
does not represent current market value, the securities will be priced at fair
value.
The
market value of the securities in a Fund’s portfolio changes daily and the NAV
of each class of Fund shares changes accordingly. The
NAV
will not be calculated on days that the NYSE is closed for trading.
Fair
Value Pricing
If
market quotations are not readily available, a security or other asset will be
valued at its fair value in accordance with Rule 2a-5 under the 1940 Act as
determined in good faith by the Adviser under the Adviser’s fair value pricing
procedures subject to oversight by the Board of Trustees. These fair value
procedures will also be used to price a security when corporate events, events
in the securities market and/or world events cause the Adviser to believe that a
security’s last sale price may not reflect its actual fair value. The intended
effect of using fair value pricing procedures is to ensure that the Funds are
accurately priced.
The
Quality Mid Cap Fund normally invests in common stock of domestic issuers listed
on U.S. stock exchanges, including the NYSE or the NASDAQ, the majority of which
are small- and mid-capitalization, liquid securities. The Global Quality Growth
Fund invests in common stock of domestic issuers listed on U.S. stock exchanges,
including the NYSE or the NASDAQ, the majority of which are
large-capitalization, highly liquid securities. Nonetheless, these securities
may at times not have market quotations readily available, including, but not
limited to, such instances where the market quotation for a security has become
stale, sales of a security have been infrequent, or where there is a thin market
in the security. To address these situations, the Adviser has developed
procedures which utilize fair value pricing when reliable market quotations are
not readily available or the Funds’ Pricing Service does not provide a valuation
(or provides a valuation that, in the judgment of the Adviser, does not
represent the security’s fair value), or when, in the judgment of the Adviser,
events have rendered the market value unreliable. Valuing securities at fair
value involves reliance on judgment. When a security is fair valued, it is
priced at the amount that the owner of the security might reasonably expect to
receive upon its current sale.
The
Global Quality Growth Fund also invests in common stock of foreign issuers
listed on U.S. and foreign exchanges, the majority of which are
large-capitalization, highly liquid securities. The occurrence of certain events
after the close of foreign markets, but prior to the time the Global Quality
Growth Fund’s NAV is calculated (such as a significant surge or decline in the
U.S. or foreign markets) often will result in an adjustment to the trading
prices of foreign securities when foreign markets open on the following business
day. In the absence of a price or the occurrence of events that occur after a
foreign exchange closes that affect the value of a foreign security held by the
Global Quality Growth Fund, the security will be valued at fair value. In
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such
cases, use of fair valuation can reduce an investor’s ability to seek profit by
estimating the Global Quality Growth Fund’s NAV in advance of the time the NAV
is calculated.
Because
fair value pricing is subjective in nature, there can be no assurance that a
Fund could purchase or sell a portfolio security at the price used to calculate
the Fund’s NAV. There can be significant deviations between a fair value price
at which a portfolio security is being carried and the price at which it is
purchased or sold. Furthermore, changes in the fair valuation of portfolio
securities may be less frequent and of greater magnitude than changes in the
price of portfolio securities valued using market quotations.
See
the SAI for more information about the pricing of the Funds’
shares.
How
to Purchase Shares
Shares
of the Funds are sold at the NAV, which means that you pay no sales charges or
commissions when you purchase shares. Your share price will be the next NAV
calculated after a Fund receives your request in good order. Forms are available
by request and at www.jenseninvestment.com.
In
compliance with the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “USA PATRIOT
Act”), U.S. Bancorp Fund Services, LLC, the Funds’ transfer agent (the “Transfer
Agent”), will verify certain information on your account application as part of
the Funds’ anti-money laundering program. As requested on the application, you
must supply your full name, date of birth, social security number and permanent
street address. If you are opening the account in the name of a legal entity
(e.g.,
partnership, limited liability company, business trust, corporation, etc.), you
must also supply the identity of the beneficial owners. Mailing addresses
containing only a P.O. Box will not be accepted. Please contact the Transfer
Agent at 800-992-4144 if you need additional assistance when completing your
account application.
If
we cannot confirm your identity through reasonable means, your account will be
rejected or you will not be allowed to perform a transaction on the account
until such information is received. In the rare event that we are unable to
verify your identity, the Funds reserve the right to redeem your account at the
current day’s net asset value.
When
making a purchase request, make sure your request is in good order. For
purchases made through the Transfer Agent, “good order” means your purchase
request includes:
+ The
name
of
the Fund and class of shares you are investing in;
+ The
dollar
amount
of shares to be purchased;
+ Account
application form or investment stub; and
+ Check
payable to “Jensen Quality Mid Cap Fund” or “Jensen Global Quality Growth
Fund.”
For
information about your financial intermediary’s requirements for purchases in
good order, please contact your financial intermediary.
Share
Classes and Minimum Investments
Class
J shares are available to retail investors and assessed a combined distribution
and shareholder servicing fee of 0.25% per year of a Fund’s average daily net
assets for Class J shares. Class I shares are available to institutions and
individuals willing to make a significant initial investment. Class I shares are
assessed a shareholder servicing fee not to exceed 0.10% per year of a Fund’s
average daily net assets for Class I shares. Currently, the shareholder
servicing fee being charged is 0.02% of a Fund’s average daily net assets for
Class I shares; however, the fee may be increased to 0.10% of a Fund’s average
net assets attributable to the Class I shares at any time. Class I shares are
not subject to any distribution fees. Class Y shares are available only to
institutional and individual investors willing to make a significant initial
investment, to employees and clients of the Adviser, and to employee benefit
plans sponsored by the Adviser. Class Y shares are not subject to any
distribution or shareholder servicing fees.
Except
as described in this section, the minimum investment amount for Fund shares is
as follows:
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| Initial
Investment |
Additional
Investment |
Class
J |
$2,500 |
$100 |
Class
I |
$250,000 |
$100 |
Class
Y |
$1,000,000 |
$100 |
These
minimums may be waived for accounts held in qualified retirement or profit
sharing plans, and/or omnibus accounts established by financial intermediaries
where the investment in a Fund is expected to meet the minimum investment amount
within a reasonable time period as determined by the Adviser. Registered
investment advisors and broker-dealers may generally meet the minimum investment
amount by aggregating multiple accounts with common ownership or discretionary
control within the Fund(s).
Current
and former employees of the Adviser and their spouses (including domestic
partners) and children, as well as employee benefit plans sponsored by the
Adviser, may purchase Class Y shares and are not subject to any minimum initial
investment amount.
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Subsequent
investments by such shareholders are subject to the $100 minimum described
above.
The
Funds reserve the right to waive the minimum initial investment or minimum
subsequent investment amounts at its discretion. Shareholders will be given at
least 30 days’ written notice of any increase in the minimum dollar amount of
initial or subsequent investments.
Financial
Intermediaries
You
may also purchase shares of the Funds through a third-party financial
intermediary, such as a broker-dealer, financial institution or other financial
service firm. When you purchase shares of the Funds through a financial
intermediary, the financial intermediary may be listed as the shareholder of
record of the shares. In addition, a financial intermediary may use procedures
and impose restrictions that are different from those applicable to shareholders
that invest in the Funds directly. The Funds may make arrangements with certain
financial intermediaries (“Authorized Intermediaries”) to receive purchase and
redemption orders on its behalf.
Authorized
Intermediaries may be authorized to designate other intermediaries to receive
purchase and redemption requests on behalf of the Funds. The Funds will be
deemed to have received a purchase order when an Authorized Intermediary, or, if
applicable, its designee receives the order. Purchase requests submitted to an
Authorized Intermediary or its designee after the Authorized Intermediary’s or
designee’s imposed cut-off time may not be received by the Funds prior to the
Funds’ cut-off time at the close of regular trading (generally 4:00 p.m.,
Eastern time) on that day. Such purchase requests will be processed at the NAV
calculated at the close of regular trading on the next day that the NYSE is open
for business. For more information about your financial intermediary’s rules and
procedures, whether your financial intermediary is an Authorized Intermediary,
and whether your financial intermediary imposes cut-off times for the receipt of
orders that are earlier than the cut-off times established by the Funds, contact
your financial intermediary directly.
The
price per share you will receive will be the NAV next computed after your
request is received in good order by an Authorized Intermediary (or its
authorized designee).
If
you intend to invest in the Funds through a financial intermediary, you should
read the program materials provided by the financial intermediary as a
supplement to this Prospectus. Financial intermediaries may charge you
transaction-based fees or other charges for the services they provide to you.
These charges are not reflected in the fee table or expense example in this
Prospectus, and
such
charges are retained by the financial intermediary and are not paid to the Funds
or the Adviser.
Buying
Shares by Mail
Complete
an application and send it, with a check for at least the minimum amount made
payable to the applicable Fund, to one of the addresses below. To make
additional investments once you have opened your account, write your account
number on the check and send it together with the Invest by Mail form from your
most recent confirmation statement received from the Transfer Agent. If you do
not have the Invest by Mail form, include the applicable Fund name and your
name, address, and account number on a separate piece of paper and mail it with
your check made payable to the Fund to:
By
Mail:
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
PO
Box 701
Milwaukee,
WI 53201-0701
By
Overnight or Express Mail:
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
615
East Michigan Street
Milwaukee,
WI 53202
The
Funds do not consider the U.S. Postal Service or other independent delivery
services to be its agents. Therefore, deposit in the mail or with such services,
or receipt at the Transfer Agent’s post office box, of purchase orders or
redemption requests does not constitute receipt by the Transfer Agent. Receipt
of purchase orders or redemption requests is based on when the order is received
at the Transfer Agent’s offices.
The
Funds will not accept payment in cash or money orders. To prevent check fraud,
the Funds will not accept third-party checks, Treasury checks, credit card
checks, traveler’s checks or starter checks for the purchase of shares. The
Funds are unable to accept post-dated checks or any conditional order or
payment. All purchases must be in U.S. dollars drawn on a domestic financial
institution.
NOTE:
The Transfer Agent will charge your account a $25 fee for any payment returned.
In addition, you will be responsible for any losses suffered by the Funds as a
result.
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Buying
Shares by Wire
If
you are making an initial investment in the Funds by wire transfer, please
contact the Funds by telephone before you wire funds to make arrangements with a
telephone service representative to submit your completed application via mail,
overnight delivery or facsimile. Upon receipt of your application, your account
will be established and a service representative will contact you to provide
your new account number and wiring instructions. If you do not receive this
information within one business day, you may call the Transfer Agent toll free
at 800-992-4144. You may then contact your bank to wire funds according to the
instructions you were given. Your purchase will be placed as of the date the
funds are received provided the funds are received before the close of the
market. If the funds are received after the close of the market, your shares
will be purchased using the next business day’s closing NAV. The Funds and U.S.
Bank National Association are not responsible for the consequences of delays
resulting from the banking or Federal Reserve wire system, or from incomplete
wiring instructions.
For
subsequent investments by wire, please contact the Transfer Agent at
800-992-4144 prior to sending your wire. This will alert the Funds to your
intention and will ensure proper credit when your wire is received. Instruct
your bank to wire transfer your investment to:
U.S.
Bank National Association
777
E. Wisconsin Ave
Milwaukee,
Wisconsin 53202
ABA
Number: 075000022
For
credit to U.S. Bancorp Fund Services, LLC
Account
Number: 112-952-137
Further
credit to: [Name of Fund]
Shareholder
account name and account number
Buying
Shares by Telephone
If
you have established bank instructions on your account and have not declined
telephone transaction privileges on your New Account Application Form, you may
purchase additional shares of the Funds, in amounts of $100 or more, by calling
the Transfer Agent toll free at 800-992-4144. You must also have submitted a
voided check or a savings deposit slip to have banking information established
on your account. If your account has been open for at least 7 business days,
this option allows you to move money from your bank account to a Fund account
upon request. Only bank accounts held at domestic financial institutions that
are Automated Clearing House (“ACH”) members may be used for telephone
transactions.
Shares
will be purchased in your account at the applicable price determined on the day
of your order, as long as your order is received by the Transfer Agent or an
Authorized Intermediary prior to the close of the NYSE (generally 4:00 p.m.,
Eastern Time). If your payment is rejected by your bank, the Transfer Agent will
charge your account a $25 fee. In
addition
to the fee, you will also be responsible for any resulting loss incurred by the
Funds.
Automatic
Investment Program (Class J shares only)
You
may purchase Class J shares automatically from your bank under the automatic
investment program, which allows monies to be transferred directly from your
checking or savings account to invest in Class J shares.
+ Purchases
may be made on a monthly basis.
+ To
be eligible, your account must be maintained at a domestic financial institution
that is an ACH member.
+ You
may sign up for the automatic investment program by completing an application
form.
+ Minimum
initial investment is $100 (for automatic investment program only).
+ Minimum
subsequent investment is $100.
Please
call our shareholder services at 800-992-4144 for more information about
participating in the program. Any request to change or terminate your Automatic
Investment Plan should be submitted to the Transfer Agent five days prior to the
effective date of the request. The Transfer Agent will charge your account a $25
fee for any ACH payment that is not honored.
Anti-Money
Laundering Program
The
Trust has established an Anti-Money Laundering Compliance Program as required by
the USA PATRIOT Act and related anti-money laundering laws and regulations. To
ensure compliance with these laws, the Account Application asks for, among other
things, the following information for all “customers” seeking to open an
“account” (as those terms are defined in rules adopted pursuant to the USA
PATRIOT Act):
+ full
name;
+ date
of birth (individuals only);
+ Social
Security or taxpayer identification number; and
+ permanent
street address (a P.O. Box alone is not acceptable).
If
you are opening an account in the name of a legal entity (e.g.,
a partnership, limited liability company, business trust, corporation, etc.),
you must also supply the identity of the beneficial owners of the legal entity.
Accounts opened by entities, such as corporations, limited liability companies,
partnerships or trusts, will require additional documentation. Please note that
if any information listed above is missing, your Account Application will be
returned and your account will not be opened. In compliance with the USA PATRIOT
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Act
and other applicable anti-money laundering laws and regulations, the Transfer
Agent will verify the information on your application. The Funds reserve the
right to request additional clarifying information to form a reasonable belief
as to the true identity of a customer. In the rare event that we are unable to
verify your identity, the Funds reserve the right to redeem your account at the
current day’s net asset value. If you require additional assistance when
completing your application, please contact the Transfer Agent at
800-992-4144.
Choosing
a Distribution Option
When
you complete your account application, you may choose from four distribution
options.
1.You
may invest all net investment income distributions and net capital gains
distributions in additional shares of the Funds. This option is assigned
automatically if no other choice is made.
2.You
may elect to receive net investment income distributions and net capital gains
distributions in cash.
3.You
may elect to receive net investment income distributions in cash and to reinvest
net capital gains distributions in additional shares of the Funds.
4.You
may elect to invest net investment income distributions in additional shares of
the Funds and receive net capital gains distributions in cash.
If
you elect to receive distributions by check and the post office cannot deliver
such check, or if such check remains uncashed for six months, the Funds reserve
the right to reinvest the distribution check in your account at the Funds then
current NAV per share and to reinvest all subsequent distributions in shares of
the Funds until an updated address is received. You may change your election at
any time. Your request for a change must be received by the Transfer Agent in
writing or by telephone at least five (5) days prior to the record date for the
distribution for which a change is requested.
Retirement
Plans
Tax-deferred
retirement plans including IRAs, Keogh plan accounts, SEP accounts and other
ERISA-qualified plans may invest in the Funds, subject to the other requirements
of the Funds. If a plan has already been established with a custodian or
trustee, the plan may purchase shares of the Funds in the same manner as any
other shareholder, subject to any special charges imposed by the plan’s
custodian or trustee.
If
you want to establish an IRA naming the Transfer Agent as custodian, please call
our shareholder services at 800-992-4144 for information and
forms.
Additional
Purchase Information
The
Funds reserve the right to reject your purchase order and suspend the offering
of a Fund’s shares to you if management determines the rejection or suspension
is in the best interests of the Fund.
Shares
of the Funds have not been registered for sale outside of the U.S., Puerto Rico
and the U.S. Virgin Islands. The Funds generally do not sell shares to investors
residing outside the U.S., even if they are U.S. citizens or lawful permanent
residents, except with respect to investors with U.S. military APO or FPO
addresses.
Stock
Certificates
The
issuance of Fund shares is recorded on the books of the Funds in full and
fractional shares carried to the third decimal place. For investor convenience
and to avoid additional operating costs, the Funds do not expect to issue share
certificates.
Exchanging
Shares
You
may exchange all or a portion of your investment from a Fund to the same share
class in an identically registered account of any other mutual fund managed by
the Adviser. Any new account established through an exchange will be subject to
the minimum investment requirements described above. Exchanges will be executed
on the basis of the relative NAV of the shares exchanged. An exchange of Fund
shares for shares of another fund is considered to be a sale of shares for
federal income tax purposes which may result in the recognition of a taxable
gain or loss. Call the Funds (toll-free) at 800-992-4144 to learn more about
exchanges.
The
Funds and the Transfer Agent are available to assist you in opening accounts and
when purchasing, exchanging or redeeming shares.
Share
Class Conversions
Shareholders
of Class J shares may be or become eligible to invest in Class I shares or Class
Y shares of the Funds. Holders of Class I shares may be or become eligible to
invest in Class Y shares of the Funds. Such shareholders may convert their
shares into shares of the other share class provided that following the
conversion the shareholder meets the then-applicable eligibility requirements
for the share class. Neither the Class I shares nor Class Y shares is subject to
any sales charges or Rule 12b-1 distribution fees. The conversion will be
executed on the basis of the respective NAVs of the share classes.
Investors
who hold Class I shares of a Fund through a fee-based program of a financial
intermediary, but who subsequently become
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ineligible
to participate in the program or withdraw from the program, may be subject to
conversion of their Class I shares by their program provider to another class of
shares of the same Fund 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.
A
share conversion from one class of shares of a Fund to a different class of the
same Fund will generally not result in the recognition of a capital gain or loss
for federal income tax purposes.
Closure
of a Fund
The
Board of Trustees retains the right to close a Fund (or partially close a Fund)
to new purchases if it is determined to be in the best interest of Fund
shareholders. Based on market and Fund conditions, the Adviser may recommend to
the Board of Trustees that a Fund be closed to new investors, all investors or
certain classes of investors (such as fund supermarkets) at any time. If a Fund
is closed to new purchases it will continue to honor redemption requests, unless
the right to redeem Fund shares has been temporarily suspended as permitted by
federal law.
Householding
In
an effort to decrease costs, the Funds have reduced the number of duplicate
prospectuses, supplements and certain other shareholder documents you receive
and sends only one copy of each of these documents to those addresses shared by
two or more accounts. Call toll-free at 800-992-4144 to request individual
copies of these documents, or if your shares are held through a financial
institution please contact them directly. The Funds will begin sending
individual copies 30 days after receiving your request. This policy does not
apply to account statements.
Lost
Shareholders, Inactive Accounts and Unclaimed Property.
It
is important that the Funds maintain a correct address for each shareholder. An
incorrect address may cause a shareholder’s account statements and other
mailings to be returned to the Funds. Based upon statutory requirements for
returned mail, the Funds will attempt to locate the shareholder or rightful
owner of the account. If the Funds are unable to locate the shareholder, then
they will determine whether the shareholder’s account can legally be considered
abandoned. Your mutual fund account may be transferred to the state government
of your state of residence if no activity occurs within your account during the
“inactivity period” specified in your state’s abandoned property laws. The Funds
are legally obligated to escheat (or transfer) abandoned property to the
appropriate
state’s unclaimed property administrator in accordance with statutory
requirements. The shareholder’s last known address of record determines which
state has jurisdiction. Please proactively contact the Transfer Agent toll-free
at 800-992-4144 at least annually to ensure your account remains in active
status.
If
you are a resident of the state of Texas, you may designate a representative to
receive notifications that, due to inactivity, your mutual fund account assets
may be delivered to the Texas Comptroller. Please contact the Transfer Agent if
you wish to complete a Texas Designation of Representative form.
How
to Redeem Shares
You
may redeem Fund shares on any business day the NYSE is open. Shares of the Funds
are redeemed at the next NAV calculated after a Fund has received your
redemption request in good order. Payment is typically made within one to three
business days of receipt of a valid redemption request.
Redemption
by Mail
You
may mail your redemption request to:
By
Mail:
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
PO
Box 701
Milwaukee,
WI 53201-0701
By
Overnight or Express Mail:
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
615
East Michigan Street
Milwaukee,
WI 53202
The
Funds and the Transfer Agent do not consider the U.S. Postal Service or other
independent delivery services to be their agents. Therefore, deposit in the mail
or with such services, or receipt at the Transfer Agent’s post office box, of
purchase orders or redemption requests does not constitute receipt by the
Transfer Agent. Receipt of purchase orders or redemption requests is based on
when the order is received at the Transfer Agent’s offices.
It
is important that your redemption request be mailed to the correct address and
be in good order. If a redemption request is inadvertently sent to the Funds at
their corporate address, it will be forwarded to the Transfer Agent, but the
effective date of the redemption will be delayed. No redemption will be made
until a request is submitted in good order.
A
redemption request made through the Transfer Agent is considered to be in “good
order” if the following information is included:
+ The
name
of the shareholder;
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+ The
name
of the Fund and class of shares;
+ The
dollar
amount or number of shares being redeemed;
+ The
account registration number; and
+ The
signatures of all registered shareholders as registered, providing a signature
guarantee(s) if applicable (see “Signature Guarantee” below).
The
Funds reserve the right to change the requirements of “good order.” Shareholders
will be given advance notice if the requirements of “good order” change. For
information about your financial intermediary’s requirements for redemption
requests in good order, please contact your financial intermediary.
Redemption
requests for accounts registered in the names of corporations, fiduciaries and
institutions may require additional redemption documents, such as corporate
resolutions, certificates of incumbency or copies of trust documents. Please
contact the Transfer Agent if your account is registered in one of these
categories.
You
may receive proceeds of your sale by a check sent to the address of record,
electronically via the ACH network using the previously established bank
instructions or via federal wire transfer to your pre-established bank account.
The Funds typically expect that it will take one to three business days
following the receipt of your redemption request to pay out redemption proceeds,
regardless of whether the redemption proceeds are paid by check, ACH transfer or
wire. Please note that wires are subject to a $15 fee. There is no charge to
have proceeds sent via ACH; however, funds are typically credited to your bank
within two to three business days after redemption. Proceeds will be processed
within seven calendar days after a Fund receives your redemption request, unless
the Fund has suspended your right of redemption or postponed the payment date as
permitted under the federal securities laws.
The
Funds typically expect they will hold cash or cash equivalents to meet
redemption requests. A Fund may also use the proceeds from the sale of portfolio
securities to meet redemption requests if consistent with the management of the
Fund. These redemption methods will be used regularly under normal market
conditions and may also be used during periods of stressed market
conditions.
Redemptions
In-Kind
The
Funds generally pay redemption proceeds in cash. However, the Trust has filed a
notice of election under Rule 18f-1 under the 1940 Act with the SEC, under which
the Trust has reserved the right to satisfy redemption requests in-kind under
certain circumstances, meaning that redemption proceeds are paid in liquid
securities with a market value equal to the redemption price. If a Fund pays
your
redemption
proceeds by a distribution of securities, you could incur brokerage or other
charges when converting the securities to cash. These securities redeemed
in-kind remain subject to general market risks until sold. For federal income
tax purposes, redemptions in-kind are taxed in the same manner to a redeeming
shareholder as redemptions made in cash. In addition, sales of such in-kind
securities may generate taxable gains. Any redemptions in-kind are generally
paid using a pro-rata portion of all liquid securities held by a
Fund.
Redemptions
in-kind are typically used to meet redemption requests that represent a large
percentage of a Fund’s net assets in order to minimize the effect of large
redemptions on the Fund and its remaining shareholders. Redemptions in-kind may
also be used during periods of stressed market conditions. The Funds have in
place a line of credit that may be used to meet redemption requests during
periods of stressed market conditions.
IRA
Redemption
If
you hold your Fund shares through an IRA, you must indicate on your written
redemption request whether or not to withhold federal income tax. If your
redemption request fails to make an indication, your redemption proceeds will be
subject to withholding at a current withholding rate of 10%. Shares held in IRA
accounts may be redeemed by telephone at 800-992-4144. Investors will be asked
whether or not to withhold taxes from any redemption.
IRA
accounts will be charged a $15 annual maintenance fee.
Redemption
by Telephone
Unless
you have declined telephone transaction privileges on your New Account
Application Form, you may redeem shares in any amount not less than $100 and not
more than $50,000, by instructing the Transfer Agent by telephone at
800-992-4144. A signature verification from a Signature Validation Program
member or other acceptable form of authentication from a financial institution
source may be required of all shareholders in order to add or change telephone
redemption privileges on an existing account.
Neither
the Funds nor any of their service providers will be liable for any loss or
expense in acting upon instructions that are reasonably believed to be genuine,
subject to applicable law. To confirm that all telephone instructions are
genuine, the Funds will use reasonable procedures, such as
requesting:
+ That
you correctly state your Fund account number;
+ The
name in which your account is registered;
+ The
Social Security or tax identification number under which the account is
registered; and
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+ The
address of the account holder, as stated in the New Account Application
Form.
Telephone
redemptions must be received by or prior to the close of the NYSE (generally
4:00 p.m., Eastern time). During periods of high market activity, shareholders
may encounter higher than usual call waits. Please allow sufficient time to
place your telephone redemption. Once a telephone redemption has been placed, it
cannot be canceled or modified after the close of regular trading on the NYSE
(generally 4:00 p.m., Eastern time). If an account has more than one owner or
authorized person, the Funds will accept telephone instructions from any one
owner or authorized person. Telephone redemptions will not be made if you have
notified the Transfer Agent of a change of address within 15 calendar days
before the redemption request.
Systematic
Withdrawal Program
The
Funds offer a systematic withdrawal plan (the “SWP”) whereby shareholders or
their representatives may request a redemption in a specific dollar amount be
sent to them each month, calendar quarter or annually. Investors may choose to
have a check sent to the address of record, or proceeds may be sent to a
pre-designated bank account via the ACH network. To start the SWP, your account
must have Fund shares with a value of at least $10,000, and the minimum amount
that may be withdrawn each month, calendar quarter or year is $500. This program
may be terminated or modified by the Funds at any time. Any request to change or
terminate your SWP should be communicated in writing or by telephone to the
Transfer Agent no later than five days before the next scheduled withdrawal. A
withdrawal under the SWP involves a redemption of Fund shares, and may result in
a taxable capital gain or loss for federal income tax purposes. In addition, if
the amount withdrawn exceeds the amounts credited to your account, the account
ultimately may be depleted. Please call 800-992-4144 for additional information
regarding the SWP.
Signature
Guarantee
The
Transfer Agent may require a signature guarantee for certain redemption
requests. Signature guarantees can be obtained from domestic banks, brokers,
dealers, credit unions, national securities exchanges, registered securities
associations, clearing agencies and savings associations, as well as from
participants in the New York Stock Exchange Medallion Signature Program and the
Securities Transfer Agents Medallion Program (“STAMP”), but not from a notary
public. A signature guarantee, from either a Medallion program member or a
non-Medallion program member, of each owner is required in the following
situations:
+ If
ownership is being changed on your account;
+ When
redemption proceeds are payable or sent to any person, address or bank account
not on record;
+ When
a redemption request is received by the Transfer Agent and the account address
has changed within the last 15 calendar days;
+ For
redemptions over $50,000 from any shareholder account.
The
Funds reserve the right to require a signature guarantee or other acceptable
signature verification under other circumstances. Non-financial transactions
including establishing or modifying certain services on an account may require a
signature guarantee, a signature verification from a Signature Validation
Program member, or other acceptable form of authentication from a financial
institution source. Signature guarantees may be obtained from domestic banks,
brokers, dealers, credit unions, national securities exchanges, registered
securities associations, clearing agencies and savings associations, as well as
from participants in the New York Stock Exchange Medallion Signature Program and
STAMP but not from a notary public.
Redemption
Price and Payment for Fund Shares
Redemption
requests are processed at the NAV next computed after the Transfer Agent or
other authorized agent receives a redemption request in good order (as defined
above). If your redemption request is received by the Transfer Agent or other
authorized agent in good order before the close of regular trading hours on the
NYSE (generally 4:00 p.m., Eastern time), the request is effective on the day
received. If your redemption request is received in good order after the close
of regular trading hours on the NYSE, it is effective on the next business
day.
Payment
for your redeemed Fund shares will be mailed to you generally within one to
three business days, but no later than the seventh day after your redemption
request is received in good order by the Transfer Agent. However, if any portion
of the shares to be redeemed represents an investment made by check or
electronic funds transfer through the ACH network, a Fund may delay the payment
of the redemption proceeds until the Transfer Agent is reasonably satisfied that
the purchase amount has been collected. This may take up to 12 calendar days
from the date you purchased shares. You may avoid these delays by purchasing
shares of a Fund by wire transfer. The Funds may, however, suspend your right of
redemption or postpone the payment date at times when the NYSE is closed or
during certain other periods as permitted under the federal securities
laws.
The
Funds may be required to withhold federal income tax (backup withholding) from
distribution payments and redemption proceeds if you do not provide a Fund with
a correct social security or other
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taxpayer
identification number and certain certifications or the Internal Revenue Service
(“IRS”) notifies the Funds that you are subject to backup withholding. See
“Distributions and Taxes” in this Prospectus for more information. Securities
received in-kind remain subject to general market risks until sold. For federal
income tax purposes, redemptions in-kind are taxed in the same manner to a
redeeming shareholder as redemptions made in cash. In addition, sales of such
securities received in-kind may generate taxable gains.
Your
redemption payment will be mailed by check to the account name(s) and address
exactly as registered. You may also request payment by wire transfer or
electronic funds transfer through the ACH network to your predetermined bank
account. There is no charge for redemption payments that are mailed or sent via
ACH. ACH payments are usually available within two business days. Redemption
payments sent by wire transfer must be at least $1,000, and the Funds’ Transfer
Agent currently charges $15 for each wire transfer which, for financial
intermediaries, may be paid for by the Funds. Your bank may also impose an
incoming wire charge. Wire fees are charged against the account only in the case
of dollar specific redemptions. In the case of share specific or complete
liquidation, fees are deducted from the redemption proceeds.
Redemptions
at the Option of the Funds
In
addition, the Funds may institute a policy whereby they automatically redeem
shares if an account balance drops below a specified amount as a result of
redemptions by the shareholder. If such a policy is instituted, the Funds may
not implement such redemption if the decrease in the account balance was caused
by any reason other than shareholder redemptions. As of the date of this
Prospectus, the Funds have not instituted such a policy. However, the Trust’s
Declaration of Trust authorizes the Board of Trustees to institute such a policy
if the board determines that such a policy is in the best interests of a Fund
and its shareholders. A redemption by a Fund may result in the recognition of a
taxable capital gain or loss for federal income tax purposes.
Financial
Intermediaries
You
may also redeem your shares of the Funds through a third-party financial
intermediary, such as a broker-dealer, financial institution or other financial
service firm. Such financial intermediaries are authorized to designate other
financial intermediaries to receive redemption orders on behalf of the Funds. If
you purchased your shares of the Funds through a financial intermediary, your
redemption order must be placed through the same financial intermediary. The
Funds will be deemed to have received the redemption order when such financial
intermediary receives the order. A financial intermediary may use procedures and
impose restrictions (and possibly charge fees) that are different from those
applicable to shareholders who redeem directly from the
Funds.
Market
Timing
The
Funds are designed for long-term investors. Investors who engage in frequent
purchases and redemptions of Fund shares, referred to as “market timing,” may
dilute the value of Fund shares, interfere with the efficient management of a
Fund’s portfolio and increase a Fund’s brokerage and administrative costs. The
Board of Trustees has adopted a policy regarding such market timing. The Quality
Mid Cap Fund believes that its investment strategy is not attractive to market
timing investors because its portfolio holdings are primarily of domestic
issuers, which eliminates “time-zone arbitrage” that may be associated with
funds that have significant holdings in foreign securities traded on foreign
exchanges. The Global Quality Growth Fund believes that its investment strategy
is not attractive to market timing investors because the Fund’s investments are
primarily large capitalization “blue chip” companies that have historically
exhibited a relatively low level of the short-term volatility usually sought by
market-timing investors. As a result, the Funds do not currently impose any
trading restrictions or redemption fees on Fund shareholders.
Additional
Redemption Information
Neither
the Funds, the Adviser nor the Transfer Agent will be liable for any loss, cost
or expense of acting on written instructions believed by the party receiving the
instructions to be genuine and in accordance with the procedures described in
this Prospectus.
General
Transaction Policies
The
Funds reserve the right to:
+ Vary
or waive any minimum investment requirement.
+ Redeem
all shares in your account if your balance falls below a Fund’s minimum for the
applicable class of shares. If, within 60 days of a Fund’s written request, you
have not increased your account balance, you may be required to redeem your
shares. The Funds will not require you to redeem shares if the value of your
account drops below the investment minimum due to fluctuations of
NAV.
+ Delay
paying redemption proceeds for up to seven days after receiving a request, if an
earlier payment could adversely affect the Funds.
+ Modify
or terminate the Automatic Investment Plan at any time.
Your
broker-dealer or other financial service firm may establish policies that differ
from those of the Funds. For example, the financial service firm may charge
transaction fees, set higher minimum investments, or impose certain limitations
on buying or selling shares in addition to those identified in this Prospectus.
Contact your broker-dealer or other financial service firm for
details.
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Distribution
and Servicing of Shares
Distributor
The
Trust has entered into a Distribution Agreement (the “Distribution Agreement”)
with Quasar Distributors, LLC, a wholly-owned subsidiary of Foreside Financial
Group, LLC d/b/a ACA Group (the “Distributor”), located at Three Canal Plaza,
Suite 100, Portland, Maine 04101, pursuant to which the Distributor acts as the
Funds’ principal underwriter, provides certain administration services and
promotes and arranges for the sale of the Funds’ shares. The offering of the
Funds’ shares is continuous, and the Distributor distributes the Funds’ shares
on a best efforts basis. The Distributor is not obligated to sell any certain
number of shares of the Funds. The Distributor is a registered broker-dealer and
member of the Financial Industry Regulatory Authority, Inc.
Sub-Transfer
Agency Fees – Class J Shares
The
Funds’ Class J shares may make payments to certain financial intermediaries who
have chosen to maintain an “omnibus account” with a Fund, which is a single
account in a Fund that contains the combined investment in Class J shares for
all of a financial intermediary’s customers. In turn, these financial
intermediaries provide shareholder recordkeeping and servicing to their
individual customers who are beneficial owners of a Fund via these omnibus
accounts. If made, these payments by a Fund, commonly known as “sub-transfer
agency fees,” to such financial intermediaries for the shareholder recordkeeping
and servicing they provide to their individual customers who are indirect Fund
shareholders will approximate the fees that would be paid by a Fund to its
Transfer Agent for maintaining and servicing these accounts if the financial
intermediaries’ customers were instead direct shareholders of the
Fund.
Distributions
and Taxes
Distributions
The
Funds declare and make distributions from their investment company taxable
income (which includes, but is not limited to, dividends, interest, net
short-term capital gain and net foreign currency gain) on a quarterly basis and
declare and distribute any net capital gain (the excess of net long-term capital
gain over net short-term capital loss) realized by the Funds at least on an
annual basis. These distributions are paid in additional Fund shares unless the
shareholder elects in writing or by telephone to receive distributions in cash
as described above in “How to Purchase Shares – Choosing a Distribution
Option.”
If
you elect to receive distributions of investment company taxable income and/or
net capital gain paid in cash and the U.S. Postal Service is unable to deliver
the check or the check remains outstanding for six months, the Funds reserve the
right to reinvest the check in your account at a Fund’s then-current NAV per
share and reinvest all subsequent distributions in Fund shares.
The
Funds will notify you following the end of each calendar year of the amounts of
investment company taxable income and net capital gain distributions paid (or
deemed paid) for the year.
Federal
Income Tax Consequences
Changes
in income tax laws, potentially with retroactive effect, could impact the Funds’
investments or the tax consequences to you of investing in the Funds. Some of
the changes could affect the timing, amount and tax treatment of each Fund’s
distributions made to shareholders. Please consult your tax adviser before
investing.
Each
Fund intends to qualify at all times and elect to be taxed as a regulated
investment company (“RIC”) under Subtitle A, Chapter 1, Subchapter M of the
Internal Revenue Code of 1986, as amended (the “Code”). By qualifying and
electing to be taxed as a RIC and satisfying certain other requirements, a Fund
will not be subject to federal income or excise taxes to the extent a Fund
distributes sufficient amounts of its investment company taxable income and net
capital gain to its shareholders.
The
taxation of distributions from the Funds is the same whether such distributions
are paid in cash or in additional Fund shares. Distributions are generally
taxable when received. However, distributions declared in October, November, or
December to shareholders of record and paid in January of the following year are
taxable as if received on December 31.
For
federal income tax purposes, distributions of investment company taxable income
(which includes, but is not limited to, interest,
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dividends,
net short-term capital gain and net gain from foreign currency transactions) are
generally taxable to a Fund’s shareholders as ordinary income. For non-corporate
shareholders, to the extent that distributions of investment company taxable
income are attributable to and reported as “qualified dividend” income, such
income is currently taxable at long-term capital gain rates, if the shareholder
meets certain holding period requirements with respect to its shares. For
corporate shareholders, a portion of a Fund’s distributions of investment
company taxable income may qualify for the dividends-received deduction to the
extent a Fund receives dividends directly or indirectly from U.S. corporations,
reports the amount distributed as eligible for the deduction and the corporate
shareholder meets certain holding period requirements with respect to its
shares. To the extent that the Funds’ distributions of investment company
taxable income are attributable to net short-term capital gain, such
distributions will be treated as ordinary income and generally cannot be offset
by a shareholder’s capital losses from other investments.
Distributions
of a Fund’s net capital gain (net long-term capital gain less net short-term
capital loss) are generally taxable to such Fund’s shareholders as long-term
capital gain regardless of the length of time that a shareholder has owned Fund
shares. Distributions of net capital gain are not eligible for qualified
dividend income treatment or the dividends-received deduction referred to in the
previous paragraph.
Shareholders
who sell, exchange, or redeem shares generally will have a capital gain or loss
from the sale, exchange, or redemption. The amount of the gain or loss and the
applicable rate of tax will depend upon the amount paid for the shares, the
amount received from the sale, exchange, or redemption (including redemptions in
kind), and how long the shares were held by a shareholder. Gain or loss realized
upon a sale, exchange, or redemption of Fund shares will generally be treated as
a long-term capital gain or loss if the shares have been held for more than one
year and as a short-term capital gain or loss if the shares have been held for
one year or less. Any loss arising from the sale, exchange, or redemption of
shares held for six months or less, however, is treated as a long-term capital
loss to the extent of any distributions of net capital gain received or deemed
to be received with respect to such shares. In determining the holding period of
such shares for this purpose, any period during which your risk of loss is
offset by means of options, short sales, or similar transactions is not counted.
If you purchase a Fund’s shares (through reinvestment of distributions or
otherwise)
within
30 days before or after selling, exchanging, or redeeming shares of the same
Fund at a loss, all or part of that loss will not be deductible and will instead
increase the basis of the new shares to preserve the loss until a future sale,
exchange, or redemption.
Federal
law requires the Funds to withhold a percentage of all distributions and
redemption proceeds paid to shareholders that have not provided the Funds with
their correct Social Security number or other taxpayer identification number or
certified to the Funds that backup withholding does not apply. Each prospective
shareholder is asked to certify on its application to open an account that the
Social Security number or other taxpayer identification number provided is
correct and that the prospective shareholder is not subject to backup
withholding for previous under-reporting of income to the IRS. The Funds
generally do not accept an application to open an account that does not comply
with these requirements.
In
general, qualified REIT dividends that an investor receives directly from a REIT
are automatically eligible for the 20% qualified business income deduction. The
IRS has issued final Treasury Regulations that permit a dividend or part of a
dividend paid by a RIC and reported as a “section 199A dividend” to be treated
by the recipient as a qualified REIT dividend for purposes of the 20% qualified
business income deduction, if certain holding period and other requirements have
been satisfied by the recipient with respect to its Fund shares. The final
Treasury Regulations do not extend such conduit treatment to qualified publicly
traded partnership income, as defined under Section 199A of the Code, earned by
a RIC. Therefore, non-corporate shareholders may not include any qualified
publicly traded partnership income earned through a Fund in their qualified
business income deduction. The IRS and Treasury Department may be continuing to
evaluate whether it is appropriate to provide such conduit
treatment.
In
addition to the federal income tax, certain individuals, trusts and estates may
be subject to a net investment income (“NII”) tax of 3.8%. The NII tax is
imposed on the lesser of: (i) a taxpayer’s investment income, net of deductions
properly allocable to such income; or (ii) the amount by which such taxpayer’s
modified adjusted gross income exceeds certain thresholds ($250,000 for married
individuals filing jointly, $200,000 for unmarried individuals and $125,000 for
married individuals filing separately). A Fund’s distributions are includable in
a shareholder’s investment income for purposes of this NII tax. In addition, any
capital gain realized by a shareholder upon a sale, exchange or redemption of
Fund shares is includable in such shareholder’s investment income for purposes
of this NII tax.
The
Funds are required to report to certain shareholders and the IRS the cost basis
of Fund shares acquired on or after January 1, 2012 when those shareholders
subsequently sell, exchange or redeem those shares. The Funds will determine the
cost basis of such shares using the loss/gain utilization method unless you
elect in writing any alternate IRS-approved cost basis method. Please see the
SAI for more information regarding cost basis
reporting.
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34 |
Jensen
Funds |
Prospectus |
The
federal income tax status of all distributions made by the Funds for the
preceding year will be annually reported to shareholders. Additional tax
information may be found in the SAI.
You
may also be subject to state or local taxes with respect to distributions from
the Funds or sales, exchanges, or redemptions of Fund shares. You are advised to
consult your tax adviser with respect to state and local tax consequences of
owning shares of the Funds.
This
tax discussion is only a brief summary of some of the important federal income
tax considerations generally affecting the Funds and their shareholders. There
may be other foreign, federal, state or local tax considerations applicable to a
particular shareholder. Prospective investors in the Funds are urged to consult
their tax advisers prior to purchasing shares of the Funds.
Confirmation
and Statements
The
Transfer Agent will send you a statement of your account after every transaction
affecting your share balance or account registration. Please allow seven to ten
business days for the Transfer Agent to confirm your order. The Transfer Agent
will send a quarterly account statement to you, regardless of whether you have
purchased or redeemed any shares during the quarter. Generally, a statement with
tax information will be mailed to you by January 31 of each year. A copy of the
tax statement also is filed with the IRS.
The
Funds’ audited annual report and unaudited semi-annual report are available by
contacting 1-800-992-4144, by sending an e-mail request to
[email protected] and on the Funds’ website at
www.jenseninvestment.com. Each of these reports includes a statement listing the
Fund’s portfolio securities.
Disclosure
of Portfolio Holdings Information
The
Funds’ complete portfolio holdings are filed with the SEC within 60 days of the
end of each fiscal quarter in the annual report and semi-annual report to Fund
shareholders on Form N-CSR and in the holdings report on Part F of Form N-PORT.
The Funds also disclose their portfolio holdings as of each calendar quarter end
on their website at www.jenseninvestment.com. The portfolio holdings information
is normally updated within 10 days after each quarter end and remains posted on
the website until replaced with the next calendar quarter’s portfolio holdings
information.
Portfolio holdings information posted on the Funds’ website may be separately
provided to any person commencing the day after it is first published on the
website. A further description of the Funds’ policies and procedures with
respect to the disclosure of each Fund’s portfolio securities is available in
the SAI.
Shareholder
Inquiries
Shareholder
inquiries are answered promptly. Any inquiries you have should be addressed to
U.S. Bank Global Fund Services at 615 E. Michigan Street, Milwaukee, Wisconsin
53202 (telephone 800-992-4144).
In
addition, you may review your account information online by visiting
https://www.jenseninvestment.com/individual/contact-us/
and
clicking on the US Bank Investor Portal or visiting
https://www.secureaccountview.com/BFWeb/clients/jen
sen/index
directly.
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35 |
Financial
Highlights
The
following financial highlights tables show the financial performance of the
Quality Mid Cap Fund’s
(formerly, the Quality Value Fund)
Class J and Class I fiscal years ended May 31, 2020, 2021, 2022, 2023 and 2024
as applicable, and Class Y shares for the fiscal periods ended May 31, 2020,
2021, 2022, 2023 and 2024. The following financial highlights tables show the
financial performance of the Global Quality Growth Fund's Class J, Class I and
Class Y shares for the fiscal period from April 15, 2020 (the commencement of
operations) through May 31, 2020 and for the fiscal years ended May 31, 2021,
2022, 2023 and 2024. Certain information reflects financial results for a single
Fund share. The total returns in the tables represent the rate that you would
have earned or lost on an investment in a Fund (assuming you reinvested all
distributions). This information has been audited by Cohen & Company, Ltd.,
the independent registered public accounting firm of the Funds, whose report,
along with the Funds’ financial statements, are included in the Funds’ 2024
Annual
Report to Shareholders,
which is available free of charge upon request.
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Jensen
Quality Mid Cap Fund - Class J |
(formerly,
the Jensen Quality Value Fund) |
Year
Ended May 31, |
| 2024 |
2023 |
2022 |
2021 |
2020 |
Per
Share Data: |
|
|
|
| |
Net
asset value, beginning of year |
$15.89 |
$15.85 |
$17.47 |
$12.17 |
$12.24 |
Income
(loss) from investment operations: |
|
|
|
| |
Net
investment income(1) |
0.06 |
0.08 |
0.05 |
0.06 |
0.08 |
Net
realized and unrealized gain (loss) on investments |
3.13 |
0.40 |
(1.21) |
5.43 |
0.41 |
Total
from investment operations |
3.19 |
0.48 |
(1.16) |
5.49 |
0.49 |
Less
distributions: |
|
|
|
| |
Dividends
from net investment income |
(0.07) |
(0.06) |
(0.04) |
(0.06) |
(0.08) |
Distributions
from net realized gain on investments |
– |
(0.38) |
(0.42) |
(0.13) |
(0.48) |
Total
distributions |
(0.07) |
(0.44) |
(0.46) |
(0.19) |
(0.56) |
Net
asset value, end of year |
$19.01 |
$15.89 |
$15.85 |
$17.47 |
$12.17 |
Total
return |
20.14% |
3.12% |
(6.98)% |
45.37% |
3.72% |
Supplemental
data and ratios: |
|
|
|
| |
Net
assets, end of year (000’s) |
$30,191 |
$28,366 |
$38,942 |
$37,105 |
$6,569 |
Ratio
of expenses to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses |
1.08% |
1.10% |
1.11% |
1.25% |
1.57% |
After
waivers and reimbursements of expenses |
1.05% |
1.05% |
1.05% |
1.05% |
1.05% |
Ratio
of net investment income to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses |
0.32% |
0.47% |
0.25% |
0.18% |
0.16% |
After
waivers and reimbursements of expenses |
0.35% |
0.52% |
0.31% |
0.38% |
0.68% |
Portfolio
turnover rate |
24.92% |
15.57% |
17.78% |
18.15% |
36.19% |
(1)Per
share amounts are calculated using the average shares outstanding
method.
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Jensen
Quality Mid Cap Fund - Class I |
(formerly,
the Jensen Quality Value Fund) |
Year
Ended May 31, |
| 2024 |
2023 |
2022 |
2021 |
2020 |
Per
Share Data: |
|
|
|
| |
Net
asset value, beginning of year |
$15.86 |
$15.81 |
$17.43 |
$12.13 |
$12.18 |
Income
(loss) from investment operations: |
|
|
|
| |
Net
investment income(1) |
0.10 |
0.12 |
0.09 |
0.09 |
0.12 |
Net
realized and unrealized gain (loss) on investments |
3.13 |
0.40 |
(1.21) |
5.42 |
0.39 |
Total
from investment operations |
3.23 |
0.52 |
(1.12) |
5.51 |
0.51 |
Less
distributions: |
|
|
|
| |
Dividends
from net investment income |
(0.11) |
(0.09) |
(0.08) |
(0.08) |
(0.08) |
Distributions
from net realized gain on investments |
– |
(0.38) |
(0.42) |
(0.13) |
(0.48) |
Total
distributions |
(0.11) |
(0.47) |
(0.50) |
(0.21) |
(0.56) |
Net
asset value, end of year |
$18.98 |
$15.86 |
$15.81 |
$17.43 |
$12.13 |
Total
return |
20.45% |
3.38% |
(6.79)% |
45.80% |
3.88% |
Supplemental
data and ratios: |
|
|
|
| |
Net
assets, end of year (000’s) |
$94,339 |
$93,813 |
$104,867 |
$44,113 |
$2,491 |
Ratio
of expenses to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses |
0.85% |
0.87% |
0.88% |
1.00% |
1.23% |
After
waivers and reimbursements of expenses |
0.82% |
0.82% |
0.82% |
0.82% |
0.82% |
Ratio
of net investment income to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses |
0.54% |
0.70% |
0.50% |
0.42% |
0.51% |
After
waivers and reimbursements of expenses |
0.57% |
0.75% |
0.56% |
0.60% |
0.92% |
Portfolio
turnover rate |
24.92% |
15.57% |
0.18% |
18.15% |
36.19% |
(1)Per
share amounts are calculated using the average shares outstanding
method.
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Funds |
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Jensen
Quality Mid Cap Fund - Class Y |
(formerly,
the Jensen Quality Value Fund) |
|
|
|
| |
| Year
Ended May 31, 2024 |
Year
Ended May 31, 2023 |
Year
Ended May 31, 2022 |
Year
Ended May 31, 2021 |
Period
ended
May
31, 2020(1) |
Per
Share Data: |
|
|
|
| |
Net
asset value, beginning of year/period |
$15.82 |
$15.78 |
$17.39 |
$12.11 |
$13.38 |
Income
(loss) from investment operations: |
|
|
|
| |
Net
investment income(2) |
0.11 |
0.12 |
0.09 |
0.10 |
0.04 |
Net
realized and unrealized gain (loss) on investments |
3.12 |
0.39 |
(1.20) |
5.40 |
(1.28) |
Total
from investment operations |
3.23 |
0.51 |
(1.11) |
5.50 |
(1.24) |
Less
distributions: |
|
|
|
| |
Dividends
from net investment income |
(0.12) |
(0.09) |
(0.08) |
(0.09) |
(0.03) |
Distributions
from net realized gain on investments |
– |
(0.38) |
(0.42) |
(0.13) |
– |
Total
distributions |
(0.12) |
(0.47) |
(0.50) |
(0.22) |
(0.03) |
Net
asset value, end of year/period |
$18.93 |
$15.82 |
$15.78 |
$17.39 |
$12.11 |
Total
return(3) |
20.46% |
3.34% |
(6.73)% |
45.72% |
(9.24)% |
Supplemental
data and ratios: |
|
|
|
| |
Net
assets, end of year/period (000’s) |
$72,033 |
$55,126 |
$57,196 |
$50,693 |
$35,326 |
Ratio
of expenses to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
0.83% |
0.85% |
0.86% |
1.05% |
1.52% |
After
waivers and reimbursements of expenses(4) |
0.80% |
0.80% |
0.80% |
0.80% |
0.80% |
Ratio
of net investment income to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
0.56% |
0.73% |
0.50% |
0.40% |
0.23% |
After
waivers and reimbursements of expenses(4) |
0.59% |
0.78% |
0.56% |
0.65% |
0.95% |
Portfolio
turnover rate(3) |
24.92% |
15.57% |
17.78% |
18.15% |
36.19% |
(1)Class
Y shares commenced operations on January 15, 2020.
(2)Per
share amounts are calculated using the average shares outstanding
method.
(3)Not
annualized for periods less than one year.
(4)Annualized
for periods less than one year.
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Jensen
Global Quality Growth Fund - Class J |
|
| Year
Ended May 31, 2024 |
Year
Ended May 31, 2023 |
Year
Ended May 31, 2022 |
Year
Ended May 31, 2021 |
Period
ended
May
31, 2020(1) |
Per
Share Data: |
|
|
|
| |
Net
asset value, beginning of year/period |
$14.40 |
$13.73 |
$14.20 |
$10.81 |
$10.00 |
Income
(loss) from investment operations: |
|
|
|
| |
Net
investment income(2) |
0.04 |
0.05 |
0.05 |
0.06 |
0.02 |
Net
realized and unrealized gain (loss) on investments |
1.55 |
0.66 |
(0.48) |
3.38 |
0.79 |
Total
from investment operations |
1.59 |
0.71 |
(0.43) |
3.44 |
0.81 |
Less
distributions: |
|
|
|
| |
Dividends
from net investment income |
(0.04) |
(0.04) |
(0.04) |
(0.05) |
– |
Total
distributions |
(0.04) |
(0.04) |
(0.04) |
(0.05) |
– |
Net
asset value, end of year/period |
$15.95 |
$14.40 |
$13.73 |
$14.20 |
$10.81 |
Total
return(3) |
11.09% |
5.23% |
(3.02)% |
31.94% |
8.10% |
Supplemental
data and ratios: |
|
|
|
| |
Net
assets, end of year/period (000’s) |
$2,482 |
$2,526 |
$2,145 |
$1,700 |
$454 |
Ratio
of expenses to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
1.52% |
1.61% |
1.64% |
2.68% |
33.40% |
After
waivers and reimbursements of expenses(4) |
1.25% |
1.25% |
1.25% |
1.25% |
1.25% |
Ratio
of net investment income to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
0.04% |
0.02% |
(0.06)% |
(0.92)% |
(30.52)% |
After
waivers and reimbursements of expenses(4) |
0.31% |
0.38% |
0.33% |
0.51% |
1.63% |
Portfolio
turnover rate(3) |
11.76% |
16.82% |
3.04% |
4.05% |
0.00% |
(1)The
Fund commenced operations on April 15, 2020.
(2)Per
share amounts are calculated using the average shares outstanding
method.
(3)Not
annualized for periods less than one year.
(4)Annualized
for periods less than one year.
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Funds |
39 |
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Jensen
Global Quality Growth Fund - Class I |
|
| Year
Ended May 31, 2024 |
Year
Ended May 31, 2023 |
Year
Ended May 31, 2022 |
Year
Ended May 31, 2021 |
Period
ended
May
31, 2020(1) |
Per
Share Data: |
|
|
|
| |
Net
asset value, beginning of year/period |
$14.40 |
$13.75 |
$14.21 |
$10.81 |
$10.00 |
Income
(loss) from investment operations: |
|
|
|
| |
Net
investment income(2) |
0.08 |
0.08 |
0.09 |
0.11 |
0.02 |
Net
realized and unrealized gain (loss) on investments |
1.55 |
0.65 |
(0.48) |
3.37 |
0.79 |
Total
from investment operations |
1.63 |
0.73 |
(0.39) |
3.48 |
0.81 |
Less
distributions: |
|
|
|
| |
Dividends
from net investment income |
(0.08) |
(0.08) |
(0.07) |
(0.08) |
– |
Total
distributions |
(0.08) |
(0.08) |
(0.07) |
(0.08) |
– |
Net
asset value, end of year/period |
$15.95 |
$14.40 |
$13.75 |
$14.21 |
$10.81 |
Total
return(3) |
11.33% |
5.39% |
(2.74)% |
32.27% |
8.10% |
Supplemental
data and ratios: |
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|
|
| |
Net
assets, end of year/period (000’s) |
$2,813 |
$2,249 |
$2,350 |
$1,842 |
$227 |
Ratio
of expenses to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
1.29% |
1.36% |
1.42% |
2.11% |
33.49% |
After
waivers and reimbursements of expenses(4) |
1.02% |
1.02% |
1.02% |
1.02% |
1.02% |
Ratio
of net investment income to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
0.27% |
0.28% |
0.17% |
(0.28)% |
(30.60)% |
After
waivers and reimbursements of expenses(4) |
0.54% |
0.62% |
0.57% |
0.81% |
1.87% |
Portfolio
turnover rate(3) |
11.76% |
16.82% |
3.04% |
4.05% |
0.00% |
(1)The
Fund commenced operations on April 15, 2020.
(2)Per
share amounts are calculated using the average shares outstanding
method.
(3)Not
annualized for periods less than one year.
(4)Annualized
for periods less than one year.
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Jensen
Global Quality Growth Fund - Class Y |
|
| Year
Ended May 31, 2024 |
Year
Ended May 31, 2023 |
Year
Ended May 31, 2022 |
Year
Ended May 31, 2021 |
Period
ended
May
31, 2020(1) |
Per
Share Data: |
|
|
|
| |
Net
asset value, beginning of year/period |
$14.41 |
$13.75 |
$14.21 |
$10.81 |
$10.00 |
Income
(loss) from investment operations: |
|
|
|
| |
Net
investment income(2) |
0.08 |
0.08 |
0.09 |
0.11 |
0.03 |
Net
realized and unrealized gain (loss) on investments |
1.55 |
0.66 |
(0.48) |
3.37 |
0.78 |
Total
from investment operations |
1.63 |
0.74 |
(0.39) |
3.48 |
0.81 |
Less
distributions: |
|
|
|
| |
Dividends
from net investment income |
(0.08) |
(0.08) |
(0.07) |
(0.08) |
– |
Total
distributions |
(0.08) |
(0.08) |
(0.07) |
(0.08) |
– |
Net
asset value, end of year/period |
$15.96 |
$14.41 |
$13.75 |
$14.21 |
$10.81 |
Total
return(3) |
11.35% |
5.48% |
(2.72)% |
32.29% |
8.10% |
Supplemental
data and ratios: |
|
|
|
| |
Net
assets, end of year/period (000’s) |
$50,316 |
$39,536 |
$33,361 |
$23,555 |
$1,206 |
Ratio
of expenses to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
1.27% |
1.36% |
1.40% |
2.15% |
32.29% |
After
waivers and reimbursements of expenses(4) |
1.00% |
1.00% |
1.00% |
1.00% |
1.00% |
Ratio
of net investment income to average net assets |
|
|
|
| |
Before
waivers and reimbursements of expenses(4) |
0.30% |
0.27% |
0.18% |
(0.32)% |
(29.29)% |
After
waivers and reimbursements of expenses(4) |
0.57% |
0.63% |
0.58% |
0.82% |
2.00% |
Portfolio
turnover rate(3) |
11.76% |
16.82% |
3.04% |
4.05% |
0.00% |
(1)The
Fund commenced operations on April 15, 2020.
(2)Per
share amounts are calculated using the average shares outstanding
method.
(3)Not
annualized for periods less than one year.
(4)Annualized
for periods less than one year.
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Prospectus |
Jensen
Funds |
41 |
Jensen
Quality Mid Cap Fund
Jensen
Global Quality Growth Fund
Investment
Adviser
Jensen
Investment Management, Inc.
5500
Meadows Road, Suite 200
Lake
Oswego, OR 97035-3623
Telephone: 503-726-4384
800-221-4384
www.jenseninvestment.com
Independent
Registered Public Accounting Firm
Cohen
& Company, Ltd.
342
North Water Street, Suite 830
Milwaukee,
WI 53202
Legal
Counsel
Godfrey
& Kahn, S.C.
833
East Michigan Street, Suite 1800
Milwaukee,
WI 53202-3590
Custodian
U.S.
Bank National Association
Custody
Operations
1555
North RiverCenter Drive, Suite 302
Milwaukee,
WI 53212-3958
Transfer
Agent, Fund Administrator
and
Fund Accountant
U.S.
Bancorp Fund Services, LLC
615
East Michigan Street
Milwaukee,
WI 53202-5207
Telephone:
800-992-4144
Distributor
Quasar
Distributors, LLC
Three
Canal Plaza, Suite 100
Portland,
ME 04101
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42 |
Jensen
Funds |
Prospectus |
Notice
of Privacy Policy
The
Funds collect non-public personal information about you from the following
sources:
•information
we receive about you on applications or other forms;
•information
you give us orally; and/or
•information
about your transactions with us or others.
The
types of non-public personal information we collect and share can
include:
•social
security numbers;
•account
balances;
•account
transactions;
•transaction
history;
•wire
transfer instructions; and
•checking
account information.
What
Information We Disclose
We
do not disclose any non-public personal information about our shareholders or
former shareholders without the shareholder’s authorization, except as permitted
by law or in response to inquiries from governmental authorities. We may share
information with affiliated parties and unaffiliated third parties with whom we
have contracts for servicing the Funds.
How
We Protect Your Information
We
will provide unaffiliated third parties with only the information necessary to
carry out their assigned responsibility. All shareholder records will be
disposed of in accordance with applicable law.
We
maintain physical, electronic and procedural safeguards to protect your
non-public personal information and require third parties to treat your
non-public personal information with the same high degree of
confidentiality.
In
the event that you hold shares of the Funds through a financial intermediary,
including, but not limited to, a broker-dealer, bank or trust company, the
privacy policy of your financial intermediary would govern how your non-public
personal information would be shared with unaffiliated third
parties.
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Prospectus |
Jensen
Funds |
43 |