ck0000811030-20220630
Prospectus
Trillium ESG Global Equity
Fund
Institutional
Class Ticker: PORIX
Retail
Class Ticker: PORTX
Trillium ESG Small/Mid Cap
Fund
Institutional
Class Ticker: TSMDX
*Retail
Class Ticker: TBD
*Shares
are not available at this time
(together,
the “Funds”)
October 31,
2022
The
U.S. Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the accuracy or adequacy of this Prospectus. Any
representation to the contrary is a criminal offense.
Investment Objective
The Trillium ESG Global Equity
Fund (the “Global Equity Fund” or “Fund”) seeks long-term capital
appreciation.
Fees and Expenses of the Fund
This table describes the fees
and expenses that you may pay if you buy, hold and sell shares of the Global
Equity Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the tables and
expenses below. Institutional Shares may also be available on certain brokerage
platforms. An investor transacting in Institutional Shares through a broker
acting as an agent for the investor may be required to pay a commission and/or
other forms of compensation to the broker.
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Shareholder
Fees
(fees
paid directly from your investment) |
Institutional Class |
Retail Class |
Redemption
Fee (as
a percentage of amount redeemed within 90 days of
purchase) |
None |
None |
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Annual
Portfolio Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
Retail Class |
Management
Fee |
0.85 |
% |
0.85 |
% |
Distribution
and Service (12b-1) Fee |
None |
0.24 |
% |
Other
Expenses |
0.16 |
% |
0.21 |
% |
Total
Annual Fund Operating Expenses |
1.01 |
% |
1.30 |
% |
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Example
This Example is
intended to help you compare the costs of investing in the Global Equity Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem (sell)
all of your shares at the end of those periods. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher
or lower, based on these assumptions, your costs would be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
Institutional
Class |
$103 |
$322 |
$558 |
$1,236 |
Retail
Class |
$132 |
$412 |
$713 |
$1,568 |
Portfolio Turnover
The Global Equity Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
portfolio operating expenses or in the example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s turnover rate was 7% of the average value of its
portfolio.
Principal Investment Strategies
The Global Equity Fund invests
primarily in common stocks of companies that Trillium Asset Management, LLC (the
“Adviser”) believes are leaders in managing Environmental, Social, and
Governance
(“ESG”) risks and opportunities, have above average growth potential, and are
reasonably valued. Under normal market conditions, at least 80% of the Fund’s
net assets (plus any borrowings for investment purposes) will be invested in
equity securities that meet the Adviser’s ESG criteria, although the Adviser
intends to normally be fully invested in such securities.
When
selecting securities for the Fund, the Adviser conducts detailed financial
analysis that includes a review of ESG issues and how they may impact a stock’s
valuation or performance and selects securities that meet the Adviser’s
financial and ESG criteria. ESG factors can reflect a variety of key
sustainability issues that can influence company risks and opportunities and
span a range of metrics including climate change policies, supply chain and
human rights policies. Companies that meet the Adviser’s ESG criteria typically
have transparent sustainability data and policy reporting. ESG criteria may be
somewhat different industry by industry. For example, factory-level
environmental assessments are relevant to the Industrial Sector while not
applicable to the Financial Services sector. In its selection process, of the
three ESG components, the Adviser emphasizes “Environmental” factors, such as
ecological limits, environmental stewardship and environmental strategies for
the Fund, more than Social and Governance factors. The Adviser utilizes
information obtained from multiple third-party providers for both financial and
ESG data, in addition to internally generated analysis, throughout its
proprietary investment process. Third-party information providers currently
include Bloomberg L.P., MSCI Inc., FactSet Research Systems Inc., and
Institutional Shareholder Services, Inc.
The
Fund invests globally and has exposure to both emerging (including frontier
market countries) and developed markets. The Fund may invest in companies of any
size, and seeks diversification by country and economic sector. The Fund invests
primarily in common stocks or American Depositary Receipts (“ADRs”) and Global
Depositary Receipts (“GDRs”).
The
Global Equity Fund generally will invest between 35-50% of its net assets in
foreign companies. Foreign companies are those that either maintain their
principal place of business outside of the United States, have their securities
principally traded on non-U.S. exchanges or were formed under the laws of
non-U.S. countries. Foreign companies may include companies doing business
in the United States but meet the general criteria of a foreign company
described above. The Fund generally will invest in approximately 20 to 35
different countries outside of the United States.
The
Global Equity Fund’s foreign holdings may include companies domiciled in
emerging markets (including frontier market countries) as well as companies
domiciled in developed markets. There is no limit to the percent of the Fund’s
foreign holdings that may be invested in either emerging (including frontier
market countries) or developed markets and therefore the Fund may be invested
entirely in companies from emerging markets. The Adviser utilizes information
obtained from multiple third party economic and financial information providers
in its process to categorize emerging markets countries. Emerging markets are
markets of countries in the initial stages of industrialization and generally
have low per capita income. Certain emerging markets are sometimes referred to
as “frontier markets.” Frontier markets are the least advanced capital markets
in the developing world. Frontier markets are countries with investable stock
markets that are less established than those in the emerging markets.
The
Adviser believes that the best long-term investments are found in companies with
above-average financial characteristics and growth potential that also excel at
managing environmental risks and opportunities, societal impact, and corporate
governance impact. The Adviser believes that a company’s understanding of
environmental, social and governance principles demonstrates the qualities of
innovation and leadership that create a distinct competitive advantage and build
long-term value. Therefore, the Adviser conducts fundamental research to find
companies with attractive environmental,
societal,
and financial attributes. In conducting fundamental research, the Adviser
combines traditional investment information with proprietary environmental,
social, and governance analysis. The Adviser believes that this creates a
complete picture of how each company behaves commercially and how it deals with
existing and emerging environmental risks and opportunities. The Adviser
considers a company’s position on various factors such as ecological limits,
environmental stewardship, environmental strategies, stance on human rights and
equality, societal impact as well as its corporate governance practices.
The
Adviser believes that finding companies that meet its financial and
environmental standards is an important part of the process, but that it is also
critical to make investments at reasonable valuations.
The
Adviser may sell stocks for several reasons, including when the stock no longer
meets its ESG criteria or when the security declines in value or is overvalued
and no longer reflects the investment thesis defined by the Adviser.
Additionally, the Global Equity Fund may
participate in securities lending arrangements of up to 33 1/3% of the
securities in its portfolio to brokers, dealers and financial institutions (but
not individuals) in order to increase the return on its
portfolio.
Principal Investment Risks
There is a risk that you could lose all or a portion of
your investment in the Global Equity Fund. The following risks
are considered principal to the Global Equity Fund and could affect the value of
your investment in the Fund:
•Sustainability
(ESG) Policy Risk: The Fund’s ESG policy could cause it to perform differently
compared to similar funds that do not have such a policy. The application of the
Adviser’s social, environmental and governance standards may affect the Fund’s
exposure to certain issuers, industries, sectors, and factors that may impact
the relative financial performance of the Fund — positively or negatively —
depending on whether such investments are in or out of favor.
•Equity
Risk: Equity securities are susceptible to general stock market fluctuations
which may result in volatile increases and decreases in value. The price of
equity securities fluctuates based on changes in a company’s financial condition
and overall market and economic conditions. These fluctuations may cause a
security to be worth less than its cost when originally purchased or less than
it was worth at an earlier time.
•Foreign
Securities and Emerging Markets Risk: Foreign securities involve increased risks
due to political, social and economic developments abroad, as well as due to
differences between United States and foreign regulatory practices. Because
securities of foreign issuers generally will not be registered with the
Securities and Exchange Commission (“SEC”), and such issuers will generally not
be subject to the SEC’s reporting requirements, there is likely to be less
publicly available information concerning certain of the foreign issuers of
securities held by the Fund than is available concerning U.S. companies.
Additionally, with respect to some foreign countries there may be the
possibility of expropriation or confiscatory taxation. Securities that are
denominated in foreign currencies are subject to the further risk that the value
of the foreign currency will fall in relation to the U.S. dollar and/or will be
affected by volatile currency markets or actions of U.S. and foreign governments
or central banks. Currency exchange rates may fluctuate significantly over short
periods of time. To the extent the Fund invests in issuers located in emerging
countries, these risks may be more pronounced. Certain emerging markets are
sometimes referred to as “frontier markets.” Frontier markets, the least
advanced capital markets in the developing world, are among the riskiest markets
in
the
world in which to invest. Frontier markets have the fewest number of investors
and investment holdings and may not even have stock markets on which to trade.
Investments in this sector are typically illiquid, nontransparent and subject to
very low regulation levels as well as high transaction fees, and may also have
substantial political and currency risk.
The
remaining principal risks are presented in alphabetical order. Each risk
summarized below is considered a “principal risk” of investing in the Fund,
regardless of the order in which it appears.
•Large
Companies Risk: Larger, more established companies may be unable to respond
quickly to new competitive challenges like changes in consumer tastes or
innovative smaller competitors. In addition, large-cap companies are sometimes
unable to attain the high growth rates of successful, smaller companies,
especially during extended periods of economic expansion.
•Management
Risk: The Adviser may fail to implement the Global Equity Fund’s investment
strategies and meet its investment objective. There is no guarantee that the
Adviser’s judgments about the attractiveness, value and potential appreciation
of particular investments in which the Fund invests will be correct or produce
the desired results.
•General
Market Risk: Economies and financial markets throughout the world are becoming
increasingly interconnected, which increases the likelihood that events or
conditions in one country or region will adversely impact markets or issuers in
other countries or regions. Securities in the Fund’s portfolio may underperform
in comparison to securities in general financial markets, a particular financial
market, or other asset classes due to a number of factors, including inflation
(or expectations for inflation), deflation (or expectations for deflation),
interest rates, global demand for particular products or resources, market
instability, debt crises and downgrades, embargoes, tariffs, sanctions and other
trade barriers, regulatory events, other governmental trade or market control
programs and related geopolitical events. In addition, the value of the Fund’s
investments may be negatively affected by the occurrence of global events such
as war, terrorism, environmental disasters, natural disasters or events, country
instability, and infectious disease epidemics or pandemics. For example, the
outbreak of COVID-19, a novel coronavirus disease, has negatively affected
economies, markets and individual companies throughout the world, including
those in which the Fund invests. The effects of this pandemic to public health
and business and market conditions, including exchange trading suspensions and
closures, may continue to have a significant negative impact on the performance
of the Fund’s investments, increase the Fund’s volatility, exacerbate
pre-existing political, social and economic risks to the Fund, and negatively
impact broad segments of businesses and populations. The Fund’s operations may
be interrupted as a result, which may contribute to the negative impact on
investment performance. In addition, governments, their regulatory agencies, or
self-regulatory organizations may take actions in response to the pandemic that
affect the instruments in which the Fund invests, or the issuers of such
instruments, in ways that could have a significant negative impact on the Fund’s
investment performance. The full impact of the COVID-19 pandemic, or other
future epidemics or pandemics, is currently unknown.
•Securities
Lending Risk: Securities lending involves the risk that the borrower may fail to
return the securities in a timely manner or at all. As a result, the Fund may
lose money and there may be a delay in recovering the loaned securities. The
Fund could also lose money if it does not recover the securities and/or the
value of the collateral falls, including the value of investments made with cash
collateral.
•Small and Mid-Sized Company Risk:
Investments in small to mid-sized companies may be speculative and volatile and
involve greater risks than are customarily associated with larger companies.
Small to mid-sized companies may be subject to greater market risk and have less
trading liquidity than larger companies. They may also have limited product
lines, markets, or financial resources. For these reasons, investors should
expect the Fund to be more volatile than a fund that invests exclusively in
large-capitalization companies.
Performance
The following
performance information provides some indication of the risks of investing in
the Global Equity Fund. The bar chart below illustrates how the
Fund’s Retail Class shares total returns have varied from year to year. The
table below illustrates how the Fund’s average annual total returns for 1, 5,
and 10-year periods compare with that of a broad-based securities index.
The Fund’s past performance,
before and after taxes, is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available on the Fund’s website at www.trilliummutualfunds.com.
Calendar Year Total Return as of
December 31, *
Retail Class
*
The Global Equity Fund’s
year-to-date return as of
September 30, 2022 was
-30.55%.
During the period shown in the
bar chart, the Global Equity Fund’s Retail Class shares’ highest quarterly return
was 18.50% for the quarter ended June 30, 2020, and the
lowest quarterly return was
-18.76% for the quarter ended March 31,
2020.
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Average Annual Total Returns as of
December 31, 2021 |
| 1
Year |
5
Years |
10
Years |
Retail
Class |
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Return Before
Taxes |
22.20% |
18.29% |
13.11% |
Return After Taxes on
Distributions |
21.43% |
17.61% |
12.26% |
Return After Taxes on Distributions and
Sale of Fund Shares |
13.65% |
14.76% |
10.74% |
Institutional
Class |
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Return Before
Taxes |
22.56% |
18.62% |
13.43% |
MSCI
All Cap World Index (Net Total Return)
(reflects no deduction for
fees or expenses) |
18.54% |
14.40% |
11.85% |
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 your 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 arrangements such as 401(k) plans or Individual Retirement Accounts
(“IRAs”). Such taxes are eligible for pass through of foreign
tax credits. Shareholders can use the foreign tax credits to reduce their tax
liability. With a reduced tax liability, the shareholders are then able to
reinvest more of the dividends allowing for a higher return.
Investment
Adviser
Trillium
Asset Management, LLC
Portfolio
Managers
The
Global Equity Fund is managed by the Portfolio Managers listed below:
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Name |
Title |
Managed
the Fund Since |
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Matthew
Patsky, CFA |
CEO,
Lead Portfolio Manager |
2018 |
Patrick
Wollenberg, CEFA |
Portfolio
Manager and Research Analyst |
2019 |
Laura
McGonagle, CFA |
Portfolio
Manager |
2021 |
John
Quealy, CPA |
Chief
Investment Officer and Portfolio Manager |
2021 |
Purchase
and Sale of Fund Shares
You
may purchase or redeem (sell) Fund shares on any business day by written request
via mail (Trillium Funds, c/o U.S. Bank Global Fund Services, P.O. Box
701, Milwaukee, WI 53201-0701), by wire transfer, by telephone toll-free at
866.209.1962, or through a financial intermediary. The minimum initial and
subsequent investment amounts are shown in the table below.
Minimum
Investments
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Open Regular Account |
To
Open Retirement or Tax-Deferred Account |
To
Add to Your Account |
Institutional
Class |
$100,000 |
$100,000 |
$1,000 |
Retail
Class |
$5,000 |
$1,000 |
$100 |
Tax
Information
The
Fund’s distributions are taxed as ordinary income or capital gains, unless you
are investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account. Investors may pay taxes on distributions through
such tax-deferred arrangements upon withdrawal of assets from the Fund.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary, the Fund and its related companies may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more information.
Investment Objective
The Trillium ESG Small/Mid Cap
Fund (the “SMID Fund” or “Fund”) seeks long-term capital
appreciation.
Fees and Expenses of the Fund
This table describes the fees
and expenses that you may pay if you buy, hold and sell shares of the SMID Fund.
You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and expenses
below. Institutional Shares may also be available on certain brokerage
platforms. An investor transacting in Institutional Shares through a broker
acting as an agent for the investor may be required to pay a commission and/or
other forms of compensation to the broker.
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Shareholder
Fees
(fees
paid directly from your investment) |
Institutional Class |
Retail Class |
Redemption
Fee (as
a percentage of amount redeemed within 90 days of
purchase) |
2.00 |
% |
2.00 |
% |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional Class |
Retail Class |
Management
Fees |
0.75 |
% |
0.75 |
% |
Distribution
and Service (12b-1) Fees |
None |
0.25 |
% |
Other
Expenses (includes
a 0.10% shareholder servicing fee for the Retail Class) |
0.61 |
% |
0.71 |
% |
Total
Annual Fund Operating Expenses |
1.36 |
% |
1.71 |
% |
Fee
Waiver and/or Expense Reimbursement |
-0.38 |
% |
-0.38 |
% |
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement(1) |
0.98 |
% |
1.33 |
% |
(1)Trillium Asset Management,
LLC (the “Adviser” or “Trillium”) has contractually agreed to reduce its fees
and/or pay Fund expenses (excluding acquired fund fees and expenses, interest
expense in connection with investment activities, taxes, extraordinary expenses,
Rule 12b-1 fees, shareholder servicing fees and any other class-specific
expenses) in order to limit Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement to 0.98% of the SMID Fund’s average daily
net assets (the “Expense Cap”). The Expense Cap is indefinite, but will remain
in effect until at least October 31,
2023. The Expense Cap may be terminated at any time by the
Trust’s Board of Trustees (the “Board”) upon 60 days’ notice to the Adviser, or
by the Adviser with consent of the Board. The Adviser is permitted, with Board
approval, to be reimbursed for fee reductions and/or expense payments made in
the prior three years from the date the fees were waived and/or expenses were
paid. This reimbursement may be requested if the aggregate amount actually paid
by the SMID Fund toward operating expenses for such period (taking into account
any reimbursement) does not exceed the lesser of the Expense Caps in place at
the time of waiver or at the time of reimbursement.
Example
This Example is
intended to help you compare the cost of investing in the SMID Fund with the
cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same (taking into account the contractual Expense Cap for the first
year only). Although your actual costs may be higher
or lower, based on these assumptions, your costs would be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
Institutional
Class |
$100 |
$393 |
$708 |
$1,602 |
Retail
Class |
$135 |
$502 |
$893 |
$1,988 |
Portfolio Turnover
The SMID Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the above example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s turnover rate was 21% of the average value of its
portfolio.
Principal Investment Strategies
Under
normal conditions, the SMID Fund seeks to achieve its objective by investing at
least 80% of its net assets (plus borrowings for investment purposes) in equity
securities of small and mid-sized companies that meet the Adviser’s
Environmental, Social, and Governance (“ESG”) criteria. The Adviser defines
small- and mid-cap companies as those whose market capitalization, at the time
of purchase, are consistent with the market capitalizations of companies in the
S&P 1000® Index. As of September 30, 2022, the market capitalization
range of companies in the S&P 1000® Index was $120 million to $15.3 billion.
The Adviser seeks stocks with high quality characteristics and strong ESG
profiles. Trillium defines high-quality characteristics to include:
•Financial
Statement Integrity
•Conservative
Debt Management
•Positive
and Growing Cash Flow from Operations
•Sector-leading
policies and performance related to key ESG Issues
When
selecting securities for the Fund, the Adviser conducts detailed financial
analysis that includes a review of ESG issues and how they may impact stock
valuation or performance. ESG criteria reflect a variety of key sustainability
issues that can influence company risks and opportunities and span a range of
metrics including board diversity, climate change policies, and supply chain and
human rights policies. Companies that meet our ESG criteria or sustainability
requirements typically have transparent sustainability data and policy
reporting. ESG criteria may be somewhat different industry by industry. For
example, assessment of chemical inputs used in the production of consumer
products could be considered relevant environmental criteria for analysis of the
Consumer Staples sector, while the same consideration is not applicable when
analyzing environmental standards within the Financials Sector. The Adviser
utilizes information obtained from multiple third-party providers for both
financial and ESG data, in addition to internally generated analysis, throughout
its proprietary investment process. Third-party information providers currently
include Bloomberg L.P., MSCI Inc., FactSet Research Systems Inc., and
Institutional Shareholder Services, Inc.
Additionally,
the Fund may invest up to 20% of its total assets in the securities of foreign
issuers, including indirectly through American Depositary Receipts (“ADRs”) and
Global Depositary Receipts (“GDRs”). The Fund’s foreign holdings may include
companies domiciled in frontier or emerging markets as well as companies
domiciled in developed markets. The Adviser utilizes information obtained from
multiple third party economic and financial information providers in its process
to categorize emerging markets countries. Emerging markets are markets of
countries in the initial stages of industrialization and generally have low per
capita income. Certain emerging markets are sometimes referred to as “frontier
markets.” Frontier markets are the least advanced capital markets in the
developing world. Frontier markets are countries with investable stock markets
that are less established than those in the emerging markets.
The Adviser may sell stocks for several
reasons, including when the stock no longer meets its ESG criteria or when the
security declines in value or is overvalued and no longer reflects the
investment thesis defined by the Adviser or if the security rises well beyond
the capitalization range of the product.
Principal Investment Risks
There is the risk that you could lose all or a portion
of your investment in the SMID Fund. The following risks are
considered principal to the SMID Fund and could affect the value of your
investment in the Fund:
•Sustainability
(ESG) Policy Risk: The Fund’s ESG policy could cause it to perform differently
compared to similar funds that do not have such a policy. The application of the
Adviser’s social, environmental and governance standards may affect the Fund’s
exposure to certain issuers, industries, sectors, and factors that may impact
the relative financial performance of the Fund — positively or negatively —
depending on whether such investments are in or out of favor.
•Equity
Risk: Equity securities are susceptible to general stock market fluctuations
which may result in volatile increases and decreases in value. The price of
equity securities fluctuates based on changes in a company’s financial condition
and overall market and economic conditions. These fluctuations may cause a
security to be worth less than its cost when originally purchased or less than
it was worth at an earlier time.
•Small
and Mid-Sized Company Risk: Investments in small to mid-sized companies may be
speculative and volatile and involve greater risks than are customarily
associated with larger companies. Small to mid-sized companies may be subject to
greater market risk and have less trading liquidity than larger companies. They
may also have limited product lines, markets, or financial resources. For these
reasons, investors should expect the Fund to be more volatile than a fund that
invests exclusively in large-capitalization companies.
The
remaining principal risks are presented in alphabetical order. Each risk
summarized below is considered a “principal risk” of investing in the Fund,
regardless of the order in which it appears.
•Foreign
Securities and Emerging Markets Risk: Foreign securities involve increased risks
due to political, social and economic developments abroad, as well as due to
differences between United States and foreign regulatory practices. Because
securities of foreign issuers generally will not be registered with the
Securities and Exchange Commission (“SEC”), and such issuers will generally not
be subject to the SEC’s reporting requirements, there is likely to be less
publicly available information concerning certain of the foreign issuers of
securities held by the Fund than is available concerning U.S. companies.
Additionally, with respect to some foreign countries there may be the
possibility of expropriation or confiscatory taxation. Securities that are
denominated in foreign currencies are subject to the further risk that the value
of the foreign currency will fall in relation to the U.S. dollar and/or will be
affected by volatile currency markets or actions of U.S. and foreign governments
or central banks. Currency exchange rates may fluctuate significantly over short
periods of time. To the extent the Fund invests in issuers located in emerging
countries, these risks may be more pronounced. Certain emerging markets are
sometimes referred to as “frontier markets.” Frontier markets, the least
advanced capital markets in the developing world, are among the riskiest markets
in the world in which to invest. Frontier markets have the fewest number of
investors and investment holdings and may not even have stock markets on which
to trade. Investments in this sector are typically illiquid, nontransparent and
subject to very low regulation levels as well as high transaction fees, and may
also have substantial political and currency risk.
•Management
Risk: Trillium may fail to implement the Fund’s investment strategies or meet
its investment objective. There is no guarantee that the Adviser’s judgments
about the attractiveness, value and potential appreciation of particular
investments in which the Fund invests will be correct or produce the desired
results.
•General
Market Risk: Economies and financial markets throughout the world are becoming
increasingly interconnected, which increases the likelihood that events or
conditions in one country or region will adversely impact markets or issuers in
other countries or regions. Securities in the Fund’s portfolio may underperform
in comparison to securities in general financial markets, a particular financial
market, or other asset classes due to a number of factors, including inflation
(or expectations for inflation), deflation (or expectations for deflation),
interest rates, global demand for particular products or resources, market
instability, debt crises and downgrades, embargoes, tariffs, sanctions and other
trade barriers, regulatory events, other governmental trade or market control
programs and related geopolitical events. In addition, the value of the Fund’s
investments may be negatively affected by the occurrence of global events such
as war, terrorism, environmental disasters, natural disasters or events, country
instability, and infectious disease epidemics or pandemics. For example, the
outbreak of COVID-19, a novel coronavirus disease, has negatively affected
economies, markets and individual companies throughout the world, including
those in which the Fund invests. The effects of this pandemic to public health
and business and market conditions, including exchange trading suspensions and
closures, may continue to have a significant negative impact on the performance
of the Fund’s investments, increase the Fund’s volatility, exacerbate
pre-existing political, social and economic risks to the Fund, and negatively
impact broad segments of businesses and populations. The Fund’s operations may
be interrupted as a result, which may contribute to the negative impact on
investment performance. In addition, governments, their regulatory agencies, or
self-regulatory organizations may take actions in response to the pandemic that
affect the instruments in which the Fund invests, or the issuers of such
instruments, in ways that could have a significant negative impact on the Fund’s
investment performance. The full impact of the COVID-19 pandemic, or other
future epidemics or pandemics, is currently
unknown.
Performance
The following
performance information provides some indication of the risks of investing in
the SMID Fund. The bar chart below illustrates how the Fund’s
Institutional Class shares total returns have varied from year to year. The
table below illustrates how the Fund’s Institutional Class shares average annual
total returns for the 1-year, 5-year and since inception periods compare with
that of a broad-based securities index. The Fund’s Institutional Class
shares past performance, before and after taxes, is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available on the Fund’s website at www.trilliummutualfunds.com.
Calendar Year Total Return as of
December 31, *
Institutional Class
* The SMID Fund’s
year-to-date return as of
September 30, 2022 was
-22.71%.
During the period shown in the
bar chart, the SMID Fund’s Institutional Class shares’ highest quarterly return
was 24.47% for the quarter ended December 31, 2020, and
the lowest quarterly return was
-28.79% for the quarter ended March 31,
2020.
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Average Annual Total Returns as of
December 31, 2021 |
| 1
Year |
5
Years |
Since
Inception (8/31/2015) |
Institutional
Class |
|
| |
Return Before
Taxes |
23.19% |
13.06% |
11.79% |
Return After Taxes on
Distributions |
22.53% |
12.34% |
11.14% |
Return After Taxes on Distributions and
Sale of Fund Shares |
14.17% |
10.27% |
9.33% |
S&P
1000® Index
(reflects no deduction for
fees or expenses) |
25.35% |
12.89% |
13.54% |
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 your 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 arrangements such as 401(k) plans or Individual Retirement Accounts
(“IRAs”). The “Return After Taxes on
Distributions” may be higher than the “Return Before Taxes” figures because the
Fund receives dividends on securities that are net of foreign
taxes. Such taxes are eligible for pass through of foreign tax
credits. Shareholders can use the foreign tax credits to reduce their tax
liability. With a reduced tax liability, the shareholders are then able to
reinvest more of the dividends allowing for a higher return.
Investment
Adviser
Trillium
Asset Management, LLC
Portfolio
Managers
The
SMID Fund is managed by the Portfolio Managers listed below:
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Name |
Title |
Managed
the Fund Since |
Laura
McGonagle, CFA |
Portfolio
Manager |
Inception
(2015) |
Elizabeth
Levy, CFA |
Head
of ESG Strategy and Portfolio Manager |
2017 |
Mitali
Prasad, CFA |
Portfolio
Manager and Research Analyst |
2019 |
Purchase
and Sale of Fund Shares
You
may purchase, redeem, or exchange Fund shares on any business day by written
request via mail (Trillium Funds, c/o U.S. Bank Global Fund Services, P.O.
Box 701, Milwaukee, WI 53201-0701), by wire transfer, by telephone at
866.209.1962, or through a financial intermediary. The minimum initial
investment in the Fund is $100,000 for Institutional Class and $5,000 for Retail
Class. You can make additional investments at any time.
Minimum
Investments
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| |
| To
Open Regular Account |
To
Open Retirement or Tax-Deferred Account |
To
Add to Your Account |
Institutional
Class |
$100,000 |
$100,000 |
$1,000 |
Retail
Class |
$5,000 |
$1,000 |
$100 |
Tax
Information
The
Fund’s distributions are taxed as ordinary income or capital gains, unless you
are investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account. Investors may pay taxes on distributions through
such tax-deferred arrangements upon withdrawal of assets from the Fund.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary, the Fund and its related companies may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
Investment
Objectives
The
Funds each seek long-term capital appreciation.The investment objective
reflected in each Fund’s Summary Section is non-fundamental; that is, it can be
changed by a vote of the Board of Trustees alone and without a shareholder vote
upon at least 60 days’ prior written notice to shareholders. There is no
assurance that a Fund will achieve its investment objective. The objective and
strategies description for each Fund tells you:
•what
the Fund is trying to achieve;
•how
the Adviser intends to invest your money; and
•what
makes each Fund different from the other Fund offered in this
Prospectus.
This
section also provides a summary of each Fund’s principal investments, policies
and practices. Unless otherwise indicated, these investment policies and
practices apply on an ongoing basis. The investment policy of each Fund
concerning “80% of the Fund’s net assets” may be changed by the Board of
Trustees without shareholder approval, but shareholders would be given at least
60 days’ written notice before any such change.
Principal
Investment Strategies – Global Equity Fund
The
Global Equity Fund invests in companies that the Adviser believes to be leaders
in managing ESG risks and opportunities, have above average growth potential,
and are reasonably valued.
The
Global Equity Fund is a global equity fund that invests in both domestic and
foreign companies of any size or market capitalization. The Fund invests
primarily in common stocks or American Depositary Receipts (“ADRs”) and Global
Depositary Receipts (“GDRs”). Under normal market conditions, at least 80% of
the Fund’s net assets (plus any borrowings for investment purposes) will be
invested in equity securities that meet the Adviser’s ESG criteria, although the
Adviser intends to normally be fully invested in such securities.
The
Fund will typically hold between 50 and 150 stocks in its portfolio. When
selecting securities for the Fund, the Adviser conducts detailed financial
analysis that includes a review of ESG issues and how they may impact a stock’s
valuation or performance and selects securities that meet the Adviser’s
financial and ESG criteria. ESG factors can reflect a variety of key
sustainability issues that can influence company risks and opportunities and
span a range of metrics including climate change policies, supply chain and
human rights policies. Companies that meet the Adviser’s ESG criteria typically
have transparent sustainability data and policy reporting. ESG criteria may be
somewhat different industry by industry. For example, factory-level
environmental assessments are relevant to the Industrial Sector while not
applicable to the Financial Services sector.
In
its selection process, of the three ESG components, the Adviser emphasizes
“Environmental” factors, such as ecological limits, environmental stewardship
and environmental strategies for the Fund, more than Social and Governance
factors.The Adviser utilizes information obtained from multiple third-party
providers for both financial and ESG data, in addition to internally generated
analysis, throughout its proprietary investment process. Third-party information
providers currently include Bloomberg L.P., MSCI Inc., FactSet Research Systems
Inc., and Institutional Shareholder Services, Inc.
The
Global Equity Fund generally will invest between 35-50% of its net assets in
foreign companies. Foreign companies are those that either maintain their
principal place of business outside of the United States, have their securities
principally traded on non-U.S. exchanges or were formed under the laws of
non-U.S. countries. Foreign companies may include companies doing business
in the United States but
who
meet the criteria of a foreign company described above. The Fund generally will
invest in approximately 20 to 35 countries outside of the United
States.
The
Global Equity Fund’s foreign holdings may include companies domiciled in
emerging markets (including frontier market countries) as well as companies
domiciled in developed markets. There is no limit to the percent of the Fund’s
foreign holdings that may be invested in either emerging (including frontier
market countries) or developed markets and therefore the Fund may be invested
entirely in companies from emerging markets. The Adviser utilizes information
obtained from multiple third party economic and financial information providers
in its process to categorize emerging markets countries. Emerging markets are
markets of countries in the initial stages of industrialization and generally
have low per capita income. Certain emerging markets are sometimes referred to
as “frontier markets.” Frontier markets are the least advanced capital markets
in the developing world. Frontier markets are countries with investable stock
markets that are less established than those in the emerging
markets.
The
Adviser believes that the best long-term investments are found in companies with
above-average financial characteristics and growth potential that excel at
managing ESG risks and opportunities. The Adviser believes that a company’s
understanding of ESG principles demonstrates the qualities of innovation and
leadership that create a distinct competitive advantage and build long-term
value. Therefore, the Adviser conducts fundamental research to find companies
with attractive ESG and financial attributes.
In
conducting fundamental research, the Adviser combines traditional investment
information with proprietary ESG analysis. The Adviser believes that this
creates a complete picture of how each company behaves commercially and how it
deals with existing and emerging ESG risks and opportunities.
The
Adviser seeks certain traditional business qualities in each of the companies it
considers for the Fund, such as:
•A
history of innovation and competitiveness
•Products
and services that meet important needs
•Strong
market position and the potential for sustained long-term growth
•Above-average
business fundamentals with attractive margins
•An
ability to manage within ecological limits and to manage environmental risk and
opportunity
•Business
practices that are adaptable and reflect industry best practices
Principles
for Investment (Global Equity Fund)
Trillium’s
investment approach considers principles that establish a high bar and assure
consistency in our decision-making process.
Ecological
Limits: Companies
shall demonstrate an understanding of the ecological limits that exist for their
business and address their specific impact areas through a range of verifiable
initiatives.
Environmental
Stewardship: All
companies are in a position to protect and preserve the environment and shall
have appropriate policies to guide their behavior, as well as a history of
appropriate behavior.
Environmental
Strategy: Companies
shall have strategies for becoming more efficient in their interactions with the
environment and show progress toward meaningful goals.
Human
Rights & Equality: Companies
shall assure that they are not directly, or indirectly through their supply
chain, involved in egregious labor practices.
Corporate
Governance: All
companies shall seek to balance the needs of and responsibilities to its
stakeholders and strive to maintain a strong corporate culture. Essential to
this achievement is a company’s corporate governance structure and
policies.
There
are certain industries and business activities that we currently conclude are
too environmentally risky or present social outcomes that are too unattractive
to warrant investment consideration. We exclude the extractive industries of
mining and fossil fuel production, as well as companies exclusively involved in
agricultural biotechnology, gambling, nuclear energy, tobacco, and weapons
production. We also evaluate companies to ensure they meet our animal testing
requirements.
The
Adviser believes that finding companies that meet its financial and
environmental standards is an important part of the process, but that it is also
critical to make investments at reasonable valuations.
In
the Adviser’s opinion, each company is unique in terms of its business and
environmental risk profile. As a result, the Adviser considers many factors in
valuing a company, such as:
•Environmental
risk factors
•Management
reputation
•Traditional
analysis of the stock price relative to earnings, cash flow, dividend yield, and
book value
•Valuation
of the stock relative to the company’s history, peer group, and to the broad
market
•Balance
sheet and debt service analysis, including various measures of financial
leverage and interest coverage ratios
The
Adviser looks to achieve capital appreciation by investing in superior companies
while also maintaining adequate diversification to avoid excessive
risk.
The
portfolio is diversified by:
•Economic
sector, although the Adviser is willing to have substantial over and under
weights relative to the market based on where the Adviser finds the most
attractive opportunities
•Country
or region, based on where the Adviser finds individual
opportunities
•Size
of companies, with a consistent overall profile of large, global companies but
also including smaller companies with perceived good future potential or unique
business models
The
Adviser’s approach of investing in what it believes to be great companies
results in a portfolio that looks quite different from the overall market. The
Adviser monitors the portfolio closely in an effort to assure prudent
diversification based on exposure to a variety of economic trends and investment
themes.
Additionally,
the Global Equity Fund may participate in securities lending arrangements of up
to 33 1/3% of the securities in its portfolio to brokers, dealers and
financial institutions (but not individuals) in order to increase the return on
its portfolio.
Principal
Investment Strategies – SMID Fund
Under
normal conditions, the SMID Fund seeks to achieve its objective by investing at
least 80% of its net assets (plus borrowings for investment purposes) in equity
securities of small and mid-sized companies that meet the Adviser’s ESG
criteria.The Adviser’s investment philosophy is that integrating ESG criteria
into the financial analysis process can help identify the best companies
positioned to deliver long-term risk adjusted performance. Trillium seeks to
identify companies that it believes are strategic leaders, based on business
models that it believes are superior and with the ability to create consistent
earnings
growth. In addition, Trillium looks to identify companies with strong board and
management qualities, as evidenced by transparent and conservative financial
reporting, and better management of ESG risks such as risks from new
environmental regulations, product safety risk, and reputational risks from
major controversies or accidents. In general, Trillium seeks to identify
companies with strong management and awareness of ESG opportunities and risks in
areas important to their respective industry. Illustrative opportunities and
risks include:
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Environmental |
Social |
Governance |
•clean
tech opportunities
•climate
change policies
•sustainable
agriculture
•water
use
|
•healthier
products
•product
safety
•supply
chain and human rights
•worker
safety
|
•board
diversity
•employee
relations
•executive
compensation
|
At
a minimum, the Fund will not invest in any companies with material exposure to
agricultural biotechnology, coal mining, hard rock mining, nuclear power, tar
sands, tobacco, weapons/firearms and companies with major recent or ongoing
controversies involving environmental, governance, human rights, product safety,
and workplace matters.
Trillium’s
investment process includes several components: a research process focused on
identifying companies with high quality characteristics as defined above, input
on macroeconomic environment, including changes in interest rates, growth rates,
and employment rates. Adherence to risk control parameters such as the maximum
size of an individual holding, relative sector weights, and a target average
market capitalization for the portfolio. In general, Trillium favors companies
with the following characteristics:
◦Financial
Statement Integrity
◦Conservative
Debt Management
◦Positive
and Growing Cash Flow from Operations
◦Sector-leading
policies and performance related to key ESG Issues
When
selecting securities for the Fund, the Adviser conducts detailed financial
analysis that includes a review of ESG issues and how they may impact stock
valuation or performance. ESG criteria reflect a variety of key sustainability
issues that can influence company risks and opportunities and span a range of
metrics including board diversity, climate change policies, and supply chain and
human rights policies. Companies that meet our ESG criteria or sustainability
requirements typically have transparent sustainability data and policy
reporting. ESG criteria may be somewhat different industry by industry. For
example, assessment of chemical inputs used in the production of consumer
products could be considered relevant environmental criteria for analysis of the
Consumer Staples sector, while the same consideration is not applicable when
analyzing environmental standards within the Financials Sector. The Adviser
utilizes information obtained from multiple third-party providers for both
financial and ESG data, in addition to internally generated analysis, throughout
its proprietary investment process. Third-party information providers currently
include Bloomberg L.P., MSCI Inc., FactSet Research Systems Inc., and
Institutional Shareholder Services, Inc.
Additionally,
the Fund may invest up to 20% of its total assets in the securities of foreign
issuers, including indirectly through American Depositary Receipts (“ADRs”) and
Global Depositary Receipts (“GDRs”). The Fund’s foreign holdings may include
companies domiciled in frontier or emerging markets as well as companies
domiciled in developed markets. The Adviser utilizes information obtained from
multiple third party economic and financial information providers in its process
to categorize emerging markets countries. Emerging markets are markets of
countries in the initial stages of
industrialization
and generally have low per capita income. Certain emerging markets are sometimes
referred to as “frontier markets.” Frontier markets are the least advanced
capital markets in the developing world. Frontier markets are countries with
investable stock markets that are less established than those in the emerging
markets.
Principal
Investment Strategies – Both Funds
We
believe in active ownership. Engaging companies on Environmental, Social, and
Governance (ESG) topics using shareholder rights and powers can lead to
improvements in corporate ESG performance, practices, and policies. We are
devoted to aligning stakeholders’ values and objectives, combining impactful
investment solutions with active ownership with the goal to provide positive
impact, long-term value, and ‘social dividends’. Trillium’s shareholder advocacy
is primarily conducted by a dedicated advocacy team which uses multiple tools of
engagement including direct dialogue, filing or co-filing shareholder proposals,
working within multi-stakeholder institutions, convening company/stakeholder
meetings, investor and proxy advisor education, and speaking publicly about ESG
topics. We work in coalitions and individually. Examples of Trillium’s
shareholder engagement topics include, but are not limited to, climate change,
workplace diversity, supply chain responsibility, and human rights. Trillium
votes Funds’ shares on shareholder proposals and other proxy matters consistent
with our fiduciary duties to the Fund. Many of those proposals are on ESG topics
and our proxy voting guidelines incorporate ESG matters and votes are executed
accordingly. Trillium regularly voices its perspective on public policy matters
that relate to ESG topics.
Trillium
may choose to sell a security out of the Funds after analyzing the security and
reviewing any top-down change in asset or sector allocation targets set by
Trillium. The Adviser also considers any negative changes to a company’s
fundamentals, deterioration in the ESG characteristics, overvaluation or a
decline in the security’s relative valuation or position.
Temporary
or Cash Investments. Under
normal market conditions, each Fund will invest according to its principal
investment strategies described above. However, a Fund may temporarily depart
from its principal investment strategies by making short-term investments in
cash and cash equivalents, such as certificates of deposits, bankers’
acceptances, time deposits, commercial paper, short-term notes, exchange traded
funds of similar instruments, or money market instruments in response to adverse
market, economic or political conditions. As a result, a Fund may not achieve
its investment objective to the extent that it makes such “defensive”
investments. In the event that a Fund uses a money market fund for its cash
position, there will be some duplication of expenses because the Fund would bear
its pro rata portion of such money market fund’s advisory fees and operational
expenses.
The
principal risks of investing in the Funds that may adversely affect the Funds’
net asset value (“NAV”) or total return have previously been summarized in the
“Summary Section.” These risks are discussed in more detail below in order of
relevance to the Funds.
Sustainability
(ESG) Policy Risk. Each
Fund’s ESG policy could cause it to perform differently compared to similar
funds that do not have such a policy. The application of the Adviser’s social,
environmental and governance standards may affect a Fund’s exposure to certain
issuers, industries, sectors, and factors that may impact the relative financial
performance of a Fund — positively or negatively — depending on whether such
investments are in or out of favor. Additionally, it may be difficult in certain
instances for the Adviser to correctly evaluate an issuer’s commitment to ESG
practices, and a failure to do so may result in investment issuers with
practices that are not consistent with a Fund’s aspirations.
Equity
Risk. This
is the risk that stock prices will fall over short or extended periods. Although
the stock market has historically outperformed other asset classes over the long
term, the stock market tends to move in cycles. Individual stock prices may
fluctuate drastically from day-to-day and may underperform other asset classes
over an extended period. Individual companies may report poor results or be
negatively affected by industry and/or economic trends and developments and the
prices of securities issued by such companies may suffer a decline in response.
These price movements may result from factors affecting individual companies,
industries or the securities market as a whole. Investor perceptions may impact
the market and are based on various and unpredictable factors including
expectations regarding government, economic, monetary and fiscal policies;
inflation and interest rates; economic expansion or contraction; and global or
regional political, economic and banking crises. If you hold common stocks of
any given issuer, you would generally be exposed to greater risk than if you
hold preferred stock or debt obligations of the issuer because common
stockholders generally have inferior rights to receive payments from issuers in
comparison with the rights of preferred stockholders, bondholders and other
creditors of such issuers.
Foreign
Securities Risk. Foreign
investments, including ADRs, GDRs, and similar investments, may be subject to
more risks than U.S. investments. These additional risks may potentially include
lower liquidity, greater price volatility and risks related to adverse
political, regulatory, market or economic developments. Foreign companies also
may be subject to significantly higher levels of taxation than
U.S. companies, including potentially confiscatory levels of taxation,
thereby reducing the earnings potential of such foreign companies. Amounts
realized on sales of or distributions with respect to foreign securities may be
subject to high and potentially confiscatory levels of foreign taxation and
withholding when compared to comparable transactions in U.S. securities.
Investments in foreign securities involve exposure to fluctuations in foreign
currency exchange rates. Such fluctuations may reduce the value of the
investment. Foreign investments are also subject to risks including potentially
higher withholding and other taxes, higher costs of custody and trading, trade
settlement, custodial, and other operational risks and less stringent investor
protection and disclosure standards in certain foreign markets. In addition,
foreign markets can, and often do, perform differently than U.S. markets. Given
the global interrelationships of today’s economy, volatility or threats to
stability of any significant currency, such as occurred in the recent past with
the European Monetary Union, or significant political instability, may affect
other markets and affect the risk of an investment in a Fund. Changes in foreign
tax laws, exchange controls, investment regulations and policies on
nationalization and expropriation as well as political instability may affect
the operations of foreign companies and the value of their
securities.
Emerging
Markets Risk. Emerging
markets are markets of countries in the initial stages of industrialization and
generally have low per capita income. In addition to the risks of foreign
securities in general, 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 that could reduce
liquidity.
Because
of the above factors, investments in emerging market countries are subject to
greater price volatility and illiquidity than investments in developed
markets.
Certain
emerging markets are sometimes referred to as “frontier markets.” Frontier
markets are the least advanced capital markets in the developing world. Frontier
markets are countries with investable stock markets that are less established
than those in the emerging markets. They are also known as “pre-emerging
markets.” Frontier markets are categorically the riskiest markets in the world
in which to invest. Frontier markets have the least number of investors and
investment holdings and may not even have stock
markets
on which to trade. Investments in this sector are typically illiquid,
nontransparent and subject to very low regulation levels as well as high
transaction fees, and may also have substantial political and currency
risk.
Emerging
and frontier markets both offer the prospect of higher returns with higher risk.
However, emerging markets are more stable and developed than frontier markets.
The economies of emerging market countries have achieved a rudimentary level of
development, while frontier markets represent the least economically developed
nations in the global marketplace. Emerging and frontier markets also carry
several types of investment risk, including market, political and currency risk,
as well as the risk of nationalization.
Small
and Mid-Sized Company Risk. Investments
in smaller and mid-size companies may be speculative and volatile and involve
greater risks than are customarily associated with investments in larger
companies. Many small to mid-size companies are more vulnerable than larger
companies to adverse business or economic developments. Securities of these
types of companies may have limited liquidity and their prices may be more
volatile. They may have limited product lines, markets or financial resources.
New and improved products or methods of development may have a substantial
impact on the earnings and revenues of such companies. Any such positive or
negative developments could have a corresponding positive or negative impact on
the value of their shares. You should expect that the Funds’ shares will be more
volatile than a fund that invests exclusively in large-capitalization
companies.
The
remaining risks are considered “principal risks” of investing in the Funds,
regardless of the order in which they appear.
Management
Risk. Management
risk describes the Funds’ ability to meet their investment objectives based on
the Adviser’s success or failure at implementing investment strategies for the
Funds. The value of your investment is subject to the effectiveness of the
Adviser’s research, analysis and asset allocation among portfolio securities. If
the Adviser’s investment strategies do not produce the expected results, your
investment could be diminished.
General
Market Risk.
Economies and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in a Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market, or other
asset classes due to a number of factors, including inflation (or expectations
for inflation), deflation (or expectations for deflation), interest rates,
global demand for particular products or resources, market instability, debt
crises and downgrades, embargoes, tariffs, sanctions and other trade barriers,
regulatory events, other governmental trade or market control programs and
related geopolitical events. In addition, the value of a Fund’s investments may
be negatively affected by the occurrence of global events such as war,
terrorism, environmental disasters, natural disasters or events, country
instability, and infectious disease epidemics or pandemics. For example, the
outbreak of COVID-19, a novel coronavirus disease, has negatively affected
economies, markets and individual companies throughout the world, including
those in which the Funds invest. The effects of this pandemic to public health
and business and market conditions, including exchange trading suspensions and
closures, may continue to have a significant negative impact on the performance
of a Fund’s investments, increase a Fund’s volatility, exacerbate pre-existing
political, social and economic risks to a Fund, and negatively impact broad
segments of businesses and populations. A Fund’s operations may be interrupted
as a result, which may contribute to the negative impact on investment
performance. In addition, governments, their regulatory agencies, or
self-regulatory organizations may take actions in response to the pandemic that
affect the instruments in
which
the Funds invest, or the issuers of such instruments, in ways that could have a
significant negative impact on a Fund’s investment performance. The full impact
of the COVID-19 pandemic, or other future epidemics or pandemics, is currently
unknown.
Large
Companies Risk (Global
Equity Fund only).
Large
company stock risk is the risk that stocks of larger companies may underperform
relative to those of small and mid-sized companies. Larger, more established
companies may be unable to respond quickly to new competitive challenges, such
as changes in technology and consumer tastes. Many larger companies may not be
able to attain the high growth rate of successful smaller companies, especially
during extended periods of economic expansion.
Securities
Lending Risk (Global
Equity Fund only).
There
are certain risks associated with securities lending, including the risk that
when lending portfolio securities, the securities may not be available to the
Fund on a timely basis and the Fund may, therefore, lose the opportunity to sell
the securities at a desirable price. When the Fund loans its portfolio
securities, it will receive collateral consisting of cash or cash equivalents,
securities issued or guaranteed by the U.S. government or one of its agencies or
instrumentalities, an irrevocable bank letter of credit, or any combination
thereof. Nevertheless, the Fund risks a delay in the recovery of the loaned
securities, or even the loss of rights in the collateral deposited by the
borrower if the borrower should fail financially. In addition, any investments
made with the collateral received are subject to the risks associated with such
investments. If such investments lose value, the Fund will have to cover the
loss when repaying the collateral.
A
complete description of the Funds’ policies and procedures with respect to the
disclosure of the Funds’ portfolio holdings is available in the Funds’ Statement
of Additional Information (“SAI”) and on the Funds’ website at
www.trilliummutualfunds.com.
The
Funds have entered into investment advisory agreements (the “Advisory
Agreements”) with Trillium Asset Management, LLC, Two Financial Center,
60 South Street, Suite 1100, Boston, Massachusetts 02111, pursuant to
which Trillium manages the Funds’ investments and business affairs subject to
the supervision of the Board. The Adviser provides the Funds with advice on
buying and selling securities. The Adviser also furnishes the Funds with office
space and certain administrative services. As of June 30, 2022, the
Adviser had approximately $4.4 billion in assets under management. Under
the Advisory Agreement for the Funds, the Adviser is entitled to receive a
monthly management fee from each Fund for its investment advisory services
calculated daily and payable monthly based on average daily net assets. The
Adviser is entitled to receive management fees from each Fund as indicated
below. After implementing breakpoints and waivers, the Adviser actually received
the amounts shown below for the fiscal year ended June 30, 2022.
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Fund |
Management
Fee |
Net
Advisory Fee Paid for FYE June 30, 2022 |
SMID
Fund |
0.75%
of average daily net assets |
0.37% |
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Fund |
Management
Fee |
Net
Advisory Fee Paid for FYE June 30, 2022 |
Global
Equity Fund |
0.85%
for average daily net assets up to $1 billion; 0.72% for average daily
net assets greater than $1 billion* |
0.85% |
*
Prior to October 31, 2021, the Adviser was entitled to receive a monthly
management fee of 0.85% of average daily net assets.
A
discussion regarding the basis for the Board’s approval of the Funds’ Advisory
Agreement is available in the Funds’ Annual Report to shareholders for the
period ended June 30, 2022.
The
Adviser has contractually agreed to reduce fees and/or pay Fund expenses to
ensure that Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement (excluding interest expense in connection with investment
activities, taxes, Acquired Fund Fees and Expenses, extraordinary expenses, Rule
12b-1 fees, shareholder servicing fees and any other class-specific expenses)
will not exceed the amount shown below as a percentage of the SMID Fund’s
average daily net assets (the “Expense Cap”).
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Fund |
Expense
Cap |
SMID
Fund |
0.98% |
Any
reduction in advisory fees or payment of expenses made by the Adviser is subject
to reimbursement by the Fund if requested by the Adviser and the Board approves
such reimbursement in subsequent years. The Adviser may be reimbursed for fee
reductions and/or expense payments made in the prior three years from the date
the fees were waived and/or expenses paid. The Adviser may request reimbursement
if the aggregate amount actually paid by the Fund towards operating expenses for
such period (taking into account any reimbursement) does not exceed the lesser
of the Expense Cap in place at the time of waiver or at the time of
reimbursement. The Fund must pay its current ordinary operating expenses before
the Adviser is entitled to any reimbursement of fees waived and/or expenses
reimbursed. The current Expense Cap is in place indefinitely, but at a minimum
through October 31, 2023. The Expense Cap agreement may be terminated at any
time by the Board of Trustees upon 60 days’ notice to the Adviser, or by the
Adviser with the consent of the Board.
A
portfolio team is responsible for the day-to-day management of each Fund as
indicated below. Decisions regarding each Fund’s investments are made by
majority agreement of the members of the portfolio team.
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Portfolio
Manager |
Length
of Service with the Funds |
Business
Experience During the Past Five Years |
Laura
McGonagle, CFA |
Trillium
ESG Small/Mid Cap Fund (Portfolio Manager since inception) Trillium
ESG Global Equity Fund (Portfolio Manager since 2021) |
Laura
McGonagle, CFA,
joined the Adviser in 2001 and currently serves as Portfolio Manager, and
leads the Small/Mid Cap Core strategy. Prior to joining Trillium, Laura
was an equity research analyst at Adams, Harkness and Hill, a Boston-based
investment bank that focuses on emerging growth companies. Laura’s last
position at Adams was as a sell-side equity analyst in the “Healthy
Living” group. This group covered specialty consumer stocks, which
addressed the consumers’ growing awareness of the impact of nutrition,
environment and lifestyle choices on their well-being. Laura earned a B.A.
in quantitative economics from Tufts University in 1992. Laura is a member
of the Boston Security Analysts Society and is a Chartered Financial
Analyst charterholder. |
Elizabeth
Levy, CFA |
Trillium
ESG Small/Mid Cap Fund (Portfolio Manager since 2017) |
Elizabeth
Levy, CFA,
is the Head of ESG Strategy, Lead Portfolio Manager on Trillium’s ESG Core
Equity strategy, and a Portfolio Manager on Trillium’s ESG Small/Mid Cap
Core strategy. As Head of ESG Strategy, Elizabeth is responsible for
leading the development and oversight of the implementation of ESG-related
policies and initiatives across all investment strategies. She
collaborates with all members of the ESG research team to maintain and
expand upon Trillium’s thought leadership on ESG and responsible investing
processes and operating protocols. Before joining Trillium in 2012, she
worked as a portfolio manager for Winslow Management Company, a division
of Brown Advisory, where she had been since 2004. She managed two
environmentally-focused investment strategies, the Winslow Green Large Cap
strategy from 2009-2011 and the Winslow Green Growth strategy during 2011.
Before joining Winslow she was a research associate for Tellus Institute,
an environmental research organization. Elizabeth is currently the
Treasurer of the Board of Directors of Our Bodies, Ourselves, a nonprofit
that advocates for women’s health and social justice. She has previously
held volunteer board positions for the Harvest Cooperative Markets in
Boston and the Boston Chapter of the Appalachian Mountain Club. Elizabeth
holds a B.S. in Chemistry from the College of William and Mary, and a
Master of Environmental Management from the Yale School of Forestry and
Environmental Studies. She is a member of the Boston Security Analysts
Society and is a Chartered Financial Analyst
charterholder. |
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| |
Portfolio
Manager |
Length
of Service with the Funds |
Business
Experience During the Past Five Years |
Mitali
Prasad, CFA |
Trillium
ESG Small/Mid Cap Fund (Portfolio Manager since 2019) |
Mitali
Prasad, CFA,
Portfolio Manager, joined Trillium in 2016. She previously served as a
portfolio manager and equity research analyst at Washington Capital
Management, where she covered multiple industry sectors and managed MID
and SMID GARP portfolios. She held similar portfolio manager and equity
analyst roles at OFI Institutional (Oppenheimer Funds) and Babson Capital
Management, where she started her career in 1994.
Mitali
holds a Bachelor of Electronics and Telecommunications Engineering from
the Delhi Institute of Technology in New Delhi, India and a Master of
International Affairs from Columbia University in New York. She earned an
M.B.A. from the Indian Institute of Management in Bangalore, India in
1991.
She
is a Chartered Financial Analyst (CFA) charterholder and a member of the
CFA Institute and the CFA Society Boston, serving on its SRI committee
from 2008 - 2010 and as Chair of its Value Investing committee from
2009-2013.
|
Matthew
Patsky, CFA |
Trillium
ESG Global Equity Fund (Portfolio Manager since 2018; Lead Portfolio
Manager since 2021) |
Matthew
Patsky, CFA,
joined Trillium in 2009 and is CEO and Portfolio Manager. Matt began his
career at Lehman Brothers in 1984 as a technology analyst. In 1989, while
covering emerging growth companies for Lehman, he began to incorporate
environmental, social and governance factors into his research, becoming
the first sell side analyst in the United States to publish on the topic
of socially responsible investing in 1994. As Director of Equity Research
for Adams, Harkness & Hill, he built that firm’s powerful research
capabilities in socially and environmentally responsible areas such as
renewable energy, resource optimization, and organic and natural products.
Matt was most recently at Winslow Management Company in Boston, where he
served as director of research, chairman of the investment committee and
portfolio manager for the Green Solutions Strategy and the Winslow Green
Solutions Fund. He holds a Bachelor of Science in Economics from
Rensselaer Polytechnic Institute and is a Chartered Financial Analyst
charterholder.
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| |
Portfolio
Manager |
Length
of Service with the Funds |
Business
Experience During the Past Five Years |
Patrick
Wollenberg, CEFA |
Trillium
ESG Global Equity Fund (Portfolio Manager since 2019) |
Patrick
Wollenberg, CEFA,
Portfolio Manager, joined the Advisor in September 2018 with previous
experience as a portfolio manager and equity research analyst for several
Global and European equity funds at ING Investment Management and Robeco
Asset Management, where he started his career in 1994. Immediately prior
to joining Trillium, he was an Investment Director at John Hancock
Investments (JHI), covering global, international, emerging markets and US
equity funds for John Hancock. While at JHI, Patrick served as an ESG
specialist at the firm, driving product development, content creation and
client education. Patrick also served in due diligence roles at Merrill
Lynch Global Wealth & Investment Management.
Patrick
completed his Masters of Science (Honors) in Business Administration in
1992 and Masters of Science Economics (Honors) in 1994 from Erasmus
University Rotterdam, The Netherlands. Patrick is a Certified European
Financial Analyst.
|
John
Quealy, CPA |
Trillium
ESG Global Equity Fund (Portfolio Manager since 2021) |
John
Quealy, CPA,
is Chief Investment Officer, overseeing the management of all investment
strategies and portfolio construction at Trillium and a Portfolio Manager
on the Trillium ESG Global Equity Fund. He joined the firm in 2018 and has
extensive experience in sustainability-related capital markets, companies,
and technologies. Prior to joining Trillium, John spent 17 years with
Canaccord Genuity in Equity Research, where he was a Managing Director,
specializing in the Sustainability and Industrial Technology sectors.
Prior to Canaccord, John worked for Deloitte & Touche, where he was a
Manager in the Audit and Assurance practice, serving a wide range of
domestic and international, public, and private companies. John received a
B.S. degree in Accounting and Philosophy cum laude from Boston College and
is a licensed Certified Public Accountant in Massachusetts.
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The
SAI provides additional information on the portfolio managers’ compensation,
other accounts they manage and their ownership of shares of the
Funds.
Pricing
of Fund Shares
The
Funds sell their shares at net asset value (NAV). The NAV is determined by
dividing the value of the Funds’ securities, cash and other assets, minus all
liabilities, by the number of shares outstanding (assets – liabilities / number
of shares = NAV). The NAV takes into account the expenses and fees of the Funds,
including
management, administration and other fees, which accrue daily. The Funds’ share
price is calculated as of the close of regular trading (generally 4:00 p.m.
Eastern time) on each day that the New York Stock Exchange (“NYSE”) is open for
business.
All
shareholder transaction orders received in good form (as described below under
“How to Buy Shares”) by U.S. Bancorp Fund Services, LLC, doing business as U. S.
Bank Global Fund Services (“Transfer Agent”), the Funds’ transfer agent, or an
authorized financial intermediary by 4:00 p.m. Eastern time will be
processed at that day’s NAV. Transaction orders received after 4:00 p.m.
Eastern time will receive the next day’s NAV. The Funds’ NAV, however, may be
calculated earlier if trading on the NYSE is restricted, or as permitted by the
SEC. The Funds do not determine the NAV of their shares on any day when the NYSE
is not open for trading, such as weekends and certain national holidays as
disclosed in the SAI (even if there is sufficient trading in its portfolio
securities on such days to materially affect the NAV per share). In certain
cases, the Funds may make fair value determinations made as described below
under procedures as adopted by the Adviser.
Fair
Value Pricing
Occasionally,
reliable market quotations are not readily available, there may be events
affecting the value of foreign securities, or other securities held by the Funds
that occur when regular trading on a foreign exchange is closed, but before
trading on the NYSE is closed (a “Significant Event”). The Board has designated
the Adviser as its “valuation designee” under Rule 2a-5 of the 1940 Act, subject
to its oversight. Fair value determinations are then made in good faith in
accordance with procedures adopted by the Adviser. Generally, the fair value of
a portfolio security or other assets shall be the amount that the owner of the
security or asset might reasonably expect to receive upon its current sale. The
net asset value of a Fund’s shares may change on days when shareholders will not
be able to purchase or redeem the Fund’s shares. To help determine whether a
Significant Event has occurred with respect to securities traded principally in
foreign markets for the Global Equity Fund, a third-party service provider has
been engaged to systematically recommend the adjustment of closing market prices
of non-U.S. securities based upon changes in a designated U.S. securities market
index occurring from the time of the close of the relevant foreign market and
the close of trading on the NYSE.
Attempts
to determine the fair value of securities introduce an element of subjectivity
to the pricing of securities. As a result, the price of a security determined
through fair valuation techniques may differ from the price quoted or published
by other sources and may not accurately reflect the market value of the security
when trading resumes. If a reliable market quotation becomes available for a
security formerly valued through fair valuation techniques, the Funds would
compare the new market quotation to the fair value price to evaluate the
effectiveness of its fair valuation procedures. If any significant discrepancies
exist, the Funds may adjust their fair valuation procedures.
How
to Buy Shares
To
purchase shares of the Funds, you must make a minimum initial or subsequent
investment as listed in the table below:
Minimum
Investments
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| To
Open Regular Account |
To
Open Retirement or Tax-Deferred Account |
To
Add to Your Account |
Institutional
Class |
$100,000 |
$100,000 |
$1,000 |
Retail
Class |
$5,000 |
$1,000 |
$100 |
You
may purchase shares by completing an account application. Your order will not be
accepted until the completed account application is received by the Funds or the
Transfer Agent. Shares are purchased at the NAV next determined after the
Transfer Agent receives your order in good order. “Good order” means your
purchase request includes: (1) the name of the Fund, (2) the dollar
amount of shares to be purchased, (3) your purchase application or
investment stub, and (4) a check payable to “Trillium Funds.” Account
applications will not be accepted unless they are accompanied by payment in
U.S. dollars drawn on a U.S. financial institution. The Funds do not
accept payment in cash or money orders. To prevent check fraud, the Funds do not
accept third party checks, U.S. Treasury checks, credit card checks,
traveler’s checks or starter checks for the purchase of shares. The Funds are
unable to accept postdated checks or any conditional order or payment. If you
pay with a check that does not clear, your purchase will be canceled. If your
check is returned for any reason, a $25 fee will be assessed against your
account. You will also be responsible for any losses suffered by the Funds as a
result. The Funds do not issue share certificates. The Funds reserve the right
to reject any purchase in whole or in part. The minimum investment requirements
may be reduced from time to time by the Funds.
The
Funds have not registered shares for sale outside of the United States. The
Funds generally do not sell shares to investors residing outside of the United
States, even if they are United States citizens or lawful permanent residents,
except to investors with United States military APO or FPO
addresses.
You
may be required to pay commissions and/or other forms of compensation to a
broker for transactions in Institutional Class Shares, which are not reflected
in the tables or the examples on pages 1 and 8.
Institutional
Class Shares have no front-end load, deferred sales charge or other asset-based
fee for sales or distribution and so may be considered “Clean Shares.” As such,
Institutional Class Shares may also be available on brokerage platforms of firms
that have agreements with the Funds to offer such shares when acting solely on
an agency basis for the purchase or sale of such shares. If you transact in
Institutional Class Shares through one of these programs, you may be required to
pay a commission and/or other forms of compensation to the broker. Shares of the
Funds are available in other share classes that have different fees and
expenses.
USA
PATRIOT ACT. The
USA PATRIOT Act of 2001 requires financial institutions, including the Funds, to
adopt certain policies and programs to prevent money-laundering activities,
including procedures to verify the identity of customers opening new accounts.
When completing the account 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. Until such verification is made, the Funds may temporarily limit
additional share purchases. In addition, the Funds may close an account if they
are unable to verify a shareholder’s identity. As required by law, the Funds may
employ various procedures, such as comparing the information to fraud databases
or requesting additional information or documentation from you, to ensure that
the information supplied by you is correct. Corporate, trust and other entity
accounts require further documentation. Please contact the Transfer Agent at
866.209.1962 if you need additional assistance when completing your account
application.
If
the Funds do not have a reasonable belief of the identity of a shareholder, the
account application will be rejected and you will not be allowed to perform a
transaction in the account until such information is received. In the rare event
that the Transfer Agent is unable to verify your identity, the Funds reserve the
right to redeem your account at the current day’s net asset value. Only persons
with a valid social security number or tax identification number and permanent
U.S. street address may open accounts.
By
Mail. To
purchase Fund shares by mail, simply complete and sign an account application
and mail it with a check made payable to Trillium Funds to:
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For
Regular Mail Delivery:
Trillium
Funds
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701 |
For
Overnight Delivery:
Trillium
Funds
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, 3rd Floor
Milwaukee,
WI 53202 |
NOTE: The
Funds do not consider the U.S. Postal Service or other independent delivery
services to be its agents. Therefore, deposit in the mail or with such services,
or receipt at U.S. Bank Global Fund Services post office box, of purchase orders
or redemption requests does not constitute receipt by the transfer agent of the
Funds. Receipt of purchase orders or redemption requests is based on when the
order is received at the Transfer Agent’s offices.
If
you are making a subsequent purchase, detach the Invest by Mail form that is
attached to the confirmation statement you will receive after each transaction
and mail it with a check made payable to “Trillium Funds” to the Transfer Agent
in the envelope provided with your statement or to the address noted above. You
should write your account number on the check. If you do not have the stub from
your account statement, include your name, address and account number on a
separate piece of paper.
By
Telephone. If
you accepted telephone options on the account application, you may purchase
additional shares by calling the Funds toll free at 866.209.1962. If your
account has been open for at least 7 business days, telephone orders, in
the amount of $1,000 or more, are acceptable via electronic funds transfer from
your bank account through the Automated Clearing House (“ACH”) network. You must
have banking information established on your account prior to making a purchase.
Only bank accounts held at domestic institutions that are ACH members may be
used for telephone transactions. If the Funds receive your order prior to 4:00
p.m. Eastern time, the Transfer Agent will purchase shares at the NAV next
calculated on the day of your purchase order. For security reasons, requests by
telephone may be recorded. Once a telephone transaction has been placed, it
cannot be canceled or modified after the close of regular trading on the NYSE
(generally, 4:00 p.m., Eastern time).
By
Wire
Initial
Investment. If
you are making an initial investment in the Funds, before you wire funds, please
contact the Transfer Agent at 866.209.1962 to arrange with a service
representative to submit your completed account application via overnight
delivery or facsimile. Upon receipt of your account application, the Transfer
Agent will establish an account for you and a service representative will
contact you to provide you with an account number and wiring instructions. If
you do not receive this information within one business day, you may call the
Transfer agent at 866.209.1962.
Once
your account is established, you may instruct your bank to initiate the wire
using the instructions given by the service representative. Prior to sending the
wire purchase, please contact the Transfer Agent at 866.209.1962 to advise of
your wire and to ensure proper credit upon receipt. It is essential that your
bank include the name of the Funds, your name and account number in all wire
instructions.
Subsequent
Investment. If
you are making a subsequent purchase, your bank should wire funds as indicated
below. Before each wire purchase, please contact the Funds to advise of your
intent to wire funds. This will ensure prompt and accurate credit upon receipt
of your wire. It is essential that your bank include the name of the Funds and
your name and account number in all wire instructions. If you have questions
about how to invest by wire, you may call the Transfer Agent. Your bank may
charge you a fee for sending a wire to the Funds.
Your
bank should transmit funds by wire to:
U.S.
Bank N.A.
777
E. Wisconsin Avenue
Milwaukee,
WI 53202
ABA
Routing Number 075000022
For
credit to U.S. Bancorp Fund Services, LLC
DDA
#112-952-137
for
further credit to [insert Fund name]
[shareholder
name and account number]
Wired
funds must be received prior to 4:00 p.m., Eastern time, to be eligible for same
day pricing. Neither the Funds, or U.S. Bank N.A., the Funds’ custodian, are
responsible for the consequences of delays resulting from the banking or Federal
Reserve wire system or from incomplete wiring instructions. If you have
questions about how to invest by wire, you may contact the Funds by telephoning
toll free at 866.209.1962.
Through
a Financial Intermediary. You
may buy and sell shares of the Funds through certain financial intermediaries
and their agents that have made arrangements with the Funds and are authorized
to buy and sell shares of the Funds (collectively, “Financial Intermediaries”).
Financial Intermediaries may have different investment minimum requirements than
those outlined in this prospectus. Additionally, Financial Intermediaries may
aggregate several customer accounts to accumulate the requisite initial
investment minimum. Please consult your Financial Intermediary for their account
policies. Your order’s price will be at the Fund’s NAV next determined after a
Financial Intermediary receives it. A Financial Intermediary may hold your
shares in an omnibus account in the Financial Intermediary’s name and the
Financial Intermediary may maintain your individual ownership records. The Funds
may pay the Financial Intermediary for maintaining individual ownership records
as well as providing other shareholder services. Financial Intermediaries may
charge fees for the services they provide to you in connection with processing
your transaction order or maintaining your account with them. Financial
Intermediaries are responsible for placing your order correctly and promptly
with the Funds, forwarding payment promptly, as well as ensuring that you
receive copies of the Funds’ Prospectus. If you transmit your order to these
Financial Intermediaries before the close of regular trading (generally 4:00
p.m., Eastern time) on a day that the NYSE is open for business, your order will
be priced at the Funds’ NAV next computed after it is received by the Financial
Intermediary. A Fund will be deemed to have received a purchase or redemption
order when an authorized broker or, if applicable, a broker’s authorized
designee, receives the order. Investors should check with their Financial
Intermediary to determine if it is subject to these arrangements.
Automatic
Investment Plan (“AIP”).
For your convenience, the Funds offer an AIP. Under the AIP, after your minimum
initial investment, you authorize the Funds to withdraw the amount you wish to
invest from your personal bank account on a monthly or quarterly basis. Each AIP
investment must be $100 or greater. If you wish to participate in the AIP,
please complete the “Automatic Investment Plan” section on the account
application and mail it to the Funds at the address listed under “Purchase by
Mail”, or call the Transfer Agent at 866.209.1962 for additional information. In
order to participate in the AIP, your bank or financial institution must be a
member of the ACH network. Any request to change or terminate your participation
in the AIP should be submitted to the Funds at least five calendar days prior to
the automatic investment date. If your payment is rejected by your bank, the
transfer agent will charge a $25 fee to your account. The Funds may terminate or
modify this privilege at any time.
The
AIP is a method of using dollar cost averaging as an investment strategy that
involves investing a fixed amount of money at regular time intervals. However, a
program of regular investment cannot ensure a profit or protect against a loss
as a result of declining markets. By continually investing the same
amount,
you will be purchasing more shares when the price is low and fewer shares when
the price is high. Please call 866.209.1962 for additional information regarding
the Funds’ AIP.
Retirement
Plans.
The Funds offer an IRA plan. You may obtain information about opening an IRA
account by calling 866.209.1962. If you wish to open a Keogh, Section 403(b) or
other retirement plan, please contact your Financial Intermediary.
How
to Sell Shares
In
general, orders to sell or “redeem” shares may be placed directly with the
Funds, the Transfer Agent or your Financial Intermediary. You may redeem part or
all of your shares at the next determined NAV after the Funds receive your
order. You should request your redemption prior to the close of the NYSE,
generally 4:00 p.m., Eastern time, to obtain that day’s closing NAV. Redemption
requests received after the close of the NYSE are treated as though received on
the next business day.
By
Mail. You
may redeem your shares by simply sending a written request to the Transfer
Agent. Please provide your account number and state whether you want some or all
of your shares redeemed. All of the shareholders whose names appear on the
account registration should sign the letter. Redemption requests will not become
effective until the Transfer Agent receives all documents in good order. “Good
order” means your redemption request includes: (1) the name of the Fund,
(2) the number of shares or dollar amount to be redeemed, (3) the
account number and (4) signatures by all of the shareholders whose names
appear on the account registration and a signature guarantee, if applicable.
Additional documents are required for certain types of shareholders, such as
corporations, partnerships, executors, trustees, administrators, or guardians
(i.e., corporate resolutions, or trust documents indicating proper
authorization). Shareholders should contact the Transfer Agent for further
information concerning documentation required for redemption of Fund
shares.
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For
Regular Mail Delivery:
Trillium
Funds
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701 |
For
Overnight Delivery:
Trillium
Funds
[Name
of Fund]
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, 3rd Floor
Milwaukee,
WI 53202 |
NOTE:
The Funds 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 U.S. Bank Global Fund Services post office box, of
purchase orders or redemption requests does not constitute receipt by the
transfer agent of the Funds. Receipt of purchase orders or redemption requests
is based on when the order is received at the Transfer Agent’s
offices.
Shareholders
who have an IRA or other retirement plan must indicate on their written
redemption request whether to withhold federal income tax. Redemption requests
failing to indicate an election not to have tax withheld will generally be
subject to a 10% withholding tax. Shares held in IRA accounts may be redeemed by
telephone at 866.209.1962. Investors will be asked whether or not to withhold
taxes from any distribution.
By
Telephone and by Wire. If
you accepted telephone options on the account application, you may redeem by
telephone. You may redeem up to $100,000 in shares by calling the Transfer Agent
at 866.209.1962 before the close of trading on the NYSE, normally 4:00 p.m.,
Eastern Time. The Transfer Agent will mail redemption proceeds to the address
that appears on the Transfer Agent’s records. At your request, redemption
proceeds will be wired or sent via electronic funds transfer through the ACH
network to a pre-designated bank account. Redemption proceeds will be sent on
the business day following the redemption of shares. There is a $15 wire charge
for each wire, which will be deducted from your account
balance
on dollar specific trades or from the proceeds on complete redemptions and share
specific trades. There is no charge when proceeds are sent via the ACH system;
however, funds may not be available in your account for two to three days.
Telephone redemptions cannot be made if you notify the Transfer Agent of a
change of address within 30 days before the redemption
request.
Once
you place a telephone transaction, you cannot cancel or modify it after the
close of regular trading on the NYSE (generally, 4:00 p.m., Eastern time).
During periods of high market activity, you may encounter longer than usual wait
times. Please allow sufficient time to ensure that you will be able to complete
your telephone transaction prior to market close. You may make your redemption
request in writing.
Prior
to executing an instruction received to redeem funds by telephone, the Funds and
the Transfer Agent will use reasonable procedures to confirm that the telephone
instructions are genuine. These procedures may include recording the telephone
call and asking the caller for a form of personal identification. If the Funds
and the Transfer Agent follow these procedures, they will not be liable for any
loss, expense, or cost arising out of any telephone redemption request that is
reasonably believed to be genuine. This includes any fraudulent or unauthorized
request. The Funds may change, modify or terminate these telephone and wire
redemption privileges at any time upon at least a 60-day notice to shareholders.
If an account has more than one owner or authorized person, the Funds will
accept telephone instructions from any one owner or authorized
person.
Through
a Financial Intermediary. You
may redeem Fund shares through your Financial Intermediary. Redemptions made
through a Financial Intermediary may be subject to procedures established by
that institution. Your Financial Intermediary is responsible for sending your
order to the Funds and for crediting your account with the proceeds. For
redemptions through Financial Intermediaries, orders will be processed at the
NAV next effective after receipt by the Fund or Financial Intermediary of the
order. Please keep in mind that your Financial Intermediary may charge
additional fees for its services. Investors should check with their Financial
Intermediary to determine if it is subject to these arrangements.
Systematic
Withdrawal Plan – Retail Class Shares Only
As
another convenience, you may redeem your Fund shares through the Systematic
Withdrawal Plan (“SWP”). Under the SWP, you may choose to receive a specified
dollar amount, generated from the redemption of shares in your account, on a
monthly, quarterly or annual basis. In order to participate in the SWP, your
account balance must be at least $10,000 and each withdrawal amount must be for
a minimum of $100. If you elect this method of redemption, the Funds will send a
check to your address of record, or will send the payment via electronic funds
transfer through the ACH network, directly to your bank account. For payment
through the ACH network, your bank must be an ACH member and your bank account
information must be maintained on your account. The Funds may terminate the SWP
at any time. You may also elect to change or terminate your participation in the
SWP at any time by contacting the Transfer Agent at least five days prior to the
next withdrawal.
A
withdrawal under the plan involves a redemption of shares and may result in a
gain or loss for federal income tax purposes. In addition, if the amount
withdrawn exceeds the dividends credited to your account, your account may
ultimately be depleted. To establish the SWP, complete the “Systematic
Withdrawal Plan” section of the Funds’ account application. Please call
866.209.1962 for additional information regarding the Funds’ SWP.
Redemption
Fees (SMID
Fund only).
The
Fund is intended for long-term investors. Short-term “market-timers” that engage
in frequent purchases and redemptions can disrupt the Fund’s investment program
and create additional transaction costs that are borne by all shareholders. For
these reasons, the Fund will assess a 2.00% fee on the redemption or exchange of
Fund shares held for 90 days or less. The Fund deducts the redemption fee from
your proceeds and retains it for the benefit of long-term shareholders.
The
“first in, first out” (“FIFO”) method is used to determine the holding period;
this means that if you purchase shares on different days, the shares you held
longest will be redeemed first for purposes of determining whether the
redemption fee applies. In addition, the Fund retains the right to waive the
redemption fee in circumstances it deems reasonable. The Fund reserves the right
to change the terms and amount of this fee upon at least 60 days’ notice to
shareholders.
This
fee does not apply to:
(1)shares
purchased through reinvested dividends or capital gains;
(2)Fund
redemptions under the Fund’s SWP;
(3)the
redemption of shares previously purchased under an AIP;
(4)the
involuntary redemption of low balance accounts;
(5)sales
of Fund shares made in connection with non-discretionary portfolio rebalancing
associated with certain asset-allocation programs managed by fee-based
investment advisers, certain wrap accounts and certain retirement
plans;
(6)minimum
required distributions from retirement accounts;
(7)premature
distributions from retirement accounts due to the disability or health of the
shareholder;
(8)redemptions
resulting in the settlement of an estate due to the death of the
shareholder;
(9)conversion
of shares from one share class to another in the same Fund;
(10)taking
out a distribution or loan from a defined contribution plan;
(11)to
effect, through a redemption and subsequent purchase, an account registration
change within the same Fund; or
(12)redemptions
in connection with charitable investment pool accounts.
Exchanging
Shares
You
may exchange all or a portion of your investment from one Trillium Fund to any
other Trillium Fund in an identically registered account. Telephone requests to
exchange shares can be made for a $5.00 exchange fee if you accepted telephone
options on the account application. Any new account established through an
exchange will be subject to the minimum investment requirements described above.
The Transfer Agent will execute exchanges based on the relative NAV of the
shares exchanged. Your exchange is a sale of shares for federal income tax
purposes, on which you may realize a taxable gain or loss subject to certain
limitations on losses. Since an exchange is a sale of shares, redemption fees
may apply. This exchange privilege may be terminated or modified by a Fund at
any time upon a 60-day notice to shareholders. Call the Funds (toll-free) at
866.209.1962 to learn more about exchanges. Before exchanging into any other
Fund, you should read its prospectus.
Waiver
or Reduction of Investment Minimum. Although
not limited to the list below, the Adviser may waive or reduce the initial
minimum investment in any of following circumstances:
•Retirement,
defined benefit and pension plans with plan assets of at least
$25 million;
•Bank
or Trust companies investing for their own accounts or acting in a fiduciary or
similar capacity;
•Institutional
clients of the Adviser;
•Trustees
and Officers of the Trust; and
•Employees
of the Adviser and its affiliates and their immediate families (i.
e.,
parent, child, spouse, domestic partner, sibling, step or adopted relationships,
grandparent, grandchild and Uniform Gifts or Transfers to Minors Act accounts
naming qualifying persons).
Payment
of Redemption Proceeds. The
Funds typically send redemption proceeds on the next business day (a day when
the NYSE is open for normal business) after the redemption request is received
in good order and prior to market close, regardless of whether the redemption
proceeds are sent via check, wire, or automated clearing house (ACH) transfer.
Under unusual circumstances, the Funds may suspend redemptions, or postpone
payment for up to seven days, as permitted by federal securities
law.
The
Funds typically expect that they will hold cash or cash equivalents to meet
redemption requests. The Funds may also use the proceeds from the sale of
portfolio securities to meet redemption requests if consistent with the
management of the Funds. In situations in which investment holdings in cash or
cash equivalents are not sufficient to meet redemption requests or when the sale
of portfolio securities is not sufficient to meet redemption requests, the
Global Equity Fund will typically borrow money through the Fund’s line of
credit. These redemption methods will be used regularly and may also be used in
stressed market conditions. The Funds reserve the right to pay redemption
proceeds to you in whole or in part through a redemption in-kind as described
under “Redemption In-Kind” below. Redemptions in-kind are typically used to meet
redemption requests that are a large percentage of a Fund’s net assets in order
to minimize the effect of large redemptions on a Fund and its remaining
shareholders. Redemptions in-kind may be used regularly in such circumstances
and may also be used in stressed market conditions.
Before
selling recently purchased shares, please note that if the Transfer Agent has
not yet collected payment for the shares you are selling, it may delay sending
the proceeds until the payment is collected, which may take up to 15 calendar
days from the purchase date. This delay will not apply if you purchased your
shares via wire payment. Furthermore, there are certain times when you may be
unable to sell the Funds’ shares or receive proceeds. Specifically, the Funds
may suspend the right to redeem shares or postpone the date of payment upon
redemption for more than seven days for:
(1)any
period during which the NYSE is closed (other than customary weekend or holiday
closings) or trading on the NYSE is restricted;
(2)any
period during which an emergency exists as a result of which disposal by the
Funds of securities owned by them is not reasonably practicable or it is not
reasonably practicable for the Funds fairly to determine the value of their net
assets; or
(3)such
other periods as the SEC may permit for the protection of the Funds’
shareholders.
Redemption
proceeds will be sent to the address of record. The Funds will not be
responsible for interest lost on redemption amounts due to lost or misdirected
mail. If you request the Transfer Agent to send the proceeds of redemption to an
address other than the address of record, or if you change the address of record
within 30 days of the redemption request, the request must be in writing with
your signature guaranteed.
Low
Balance Accounts. The
Funds may redeem the shares in your account if the value of your account is less
than $5,000 because of redemptions you have made. This does not apply to
retirement plan or Uniform Gifts or Transfers to Minors Act accounts. The
Transfer Agent will notify you that the value of your account is less than
$5,000 before making an involuntary redemption. You will then have 30 days in
which to make an additional investment to bring the value of your account to at
least $5,000 before the Funds take any action.
Redemption
In-Kind. The
Funds have reserved the right to pay redemption proceeds to you in whole or in
part by a distribution of securities from the Funds’ portfolio (a “redemption
in-kind”). It is not expected that the Funds would do so except during unusual
market conditions or if the redemption amount is large enough to affect the
Funds’ operations (e.g., if it represents more than 1% of the Funds’
assets). A redemption in-kind is a taxable event to you. If the Funds pay your
redemption proceeds by a distribution of securities, you could incur brokerage
or other charges in converting the securities to cash. A
redemption
in-kind is treated as a taxable transaction and a sale of the redeemed shares,
generally resulting in capital gain or loss to you, subject to certain loss
limitation rules. In addition to the possibility of a capital gain or loss,
there is the additional risk of market loss to you until you receive the
proceeds.
Signature
Guarantees. Signature
guarantees may be required for certain requests. A signature guarantee assures
that your signature is genuine and protects you from unauthorized
transactions.
A
signature guarantee, from either a Medallion program member or a non-Medallion
program member, of each owner is required in the following
situations:
•For
all redemption requests in excess of $100,000;
•When
a redemption request is received by the Transfer Agent and the account address
has changed within the last 30 calendar days;
•When
requesting a change in ownership on your account; or
•When
redemption proceeds are payable or sent to any person, address or bank account
not on record.
In
addition to the situations described above, the Funds and/or the Transfer Agent
may require a signature guarantee in other instances based on the facts and
circumstances relative to the particular situation. Signature guarantees will
generally be accepted from domestic banks, brokers, dealers, credit unions,
national securities exchanges, registered securities associations, clearing
agencies and savings associations, as well as from participants in the New York
Stock Exchange Medallion Signature Program and the Securities Transfer Agents
Medallion Program (“STAMP”). Non-financial transactions, including establishing
or modifying certain services on an account, may require a signature guarantee,
signature verification from a Signature Validation Program member, or other
acceptable form of authentication from a financial institution source. A notary
public is not an acceptable signature guarantor. The Adviser also reserves the
right to waive the signature guarantee requirement based upon the
circumstances.
Householding.
In
an effort to conserve resources, the Funds intend to reduce the number of
duplicate Prospectuses, supplements, and certain other shareholder documents you
receive by sending only one copy of each to addresses where we reasonably
believe two or more accounts are from the same family. If you would like to
discontinue householding for your accounts, please call 866.209.1962 to request
individual copies of documents. We will begin sending individual copies thirty
days after receiving your request to stop householding. This policy does not
apply to account statements.
Unclaimed
Property/Lost Shareholder. It
is important that each Fund maintain a correct address for each investor. An
incorrect address may cause an investor’s account statements and other mailings
to be returned to the Fund. Based upon statutory requirements for returned mail,
a Fund will attempt to locate the investor or rightful owner of the account. If
a Fund is unable to locate the investor, then it will determine whether the
investor’s account can legally be considered abandoned. Your mutual fund account
may be transferred to your state of residence if no activity occurs within your
account during the “inactivity period” specified in your state’s abandoned
property laws. Each Fund is legally obligated to escheat (or transfer) abandoned
property to the appropriate state’s unclaimed property administrator in
accordance with statutory requirements. The investor’s last known address of
record determines which state has jurisdiction. Please proactively contact the
Transfer Agent toll-free at 866.209.1962 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.
The
Board has adopted a policy regarding excessive trading. The Funds discourage
excessive, short-term trading and other abusive trading practices and the Funds
may use a variety of techniques to detect and discourage abusive trading
practices. These steps may include, among other things, monitoring trading
activity, imposing redemption fees and using fair value pricing, under
procedures as adopted by the Adviser when the Adviser determines that current
market prices are not readily available. As approved by the Board, these
techniques may change from time to time as determined by the Funds in their sole
discretion.
In
an effort to discourage abusive trading practices and minimize harm to the Funds
and their shareholders, the Funds reserve the right, in their sole discretion,
to reject any purchase order, in whole or in part, for any reason (including,
without limitation, purchases by persons whose trading activity in Fund shares
is believed by the Adviser to be harmful to the Funds) and without prior notice.
The Funds may decide to restrict purchase and sale activity in their shares
based on various factors, including whether frequent purchase and sale activity
will disrupt portfolio management strategies and adversely affect the Fund’s
performance or whether the shareholder has conducted four round trip
transactions within a 12-month period. Although the Funds have designed these
efforts to discourage abusive trading practices, these tools cannot eliminate
the possibility that such activity will occur. The Funds seek to exercise their
judgment in implementing these tools to the best of their ability in a manner
that they believe is consistent with shareholder interests. Except as noted in
the Prospectus, the Funds apply all restrictions uniformly in all applicable
cases.
Due
to the complexity and subjectivity involved in identifying abusive trading
activity and the volume of shareholder transactions the Funds handle, there can
be no assurance that the Funds’ efforts will identify all trades or trading
practices that may be considered abusive. In particular, since the Funds receive
purchase and sale orders through Financial Intermediaries that use group or
omnibus accounts, the Funds cannot always detect frequent trading. However, the
Funds will work with Financial Intermediaries as necessary to discourage
shareholders from engaging in abusive trading practices and to impose
restrictions on excessive trades. In this regard, the Funds have entered into
information sharing agreements with Financial Intermediaries, pursuant to which
these intermediaries are required to provide to the Funds, at the Funds’
request, certain information relating to their customers investing in the Funds
through non-disclosed or omnibus accounts. The Funds will use this information
to attempt to identify abusive trading practices. Financial Intermediaries are
contractually required to follow any instructions from the Funds to restrict or
prohibit future purchases from shareholders that are found to have engaged in
abusive trading in violation of the Funds’ policies. However, the Funds cannot
guarantee the accuracy of the information provided to them from Financial
Intermediaries and cannot ensure that it will always be able to detect abusive
trading practices that occur through non-disclosed and omnibus accounts. As a
consequence, the Funds’ ability to monitor and discourage abusive trading
practices in omnibus accounts may be limited.
Each
Fund’s Retail Class shares have adopted a Distribution Plan (the “Plan”)
pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, each Fund is
authorized to pay the distributor a fee for the sale and distribution of a
Fund’s shares and services it provides to shareholders. The maximum amount of
the fee authorized is 0.25% of a Fund’s average daily net assets annually.
Because these fees are paid out of a Fund’s assets on an ongoing basis, over
time these fees will increase the cost of your investment in a Fund’s
shares.
The
SMID Fund has adopted a Shareholder Servicing Plan on behalf of the Retail
Class. Under the Shareholder Servicing Plan, the Retail Class is authorized to
pay the Adviser an annual shareholder servicing fee of up to 0.10% of the Retail
Class’s average daily net assets. The Adviser uses this fee to finance certain
activities related to servicing and maintaining shareholder
accounts.
In
addition to paying fees under the Shareholder Servicing Plan, a Fund may pay
service fees to Financial Intermediaries such as banks, broker-dealers,
financial advisers or other financial institutions, for sub-administration,
sub-transfer agency and other shareholder services associated with shareholders
whose shares are held of record in omnibus, other group accounts or accounts
traded through registered securities clearing agents.
The
Funds have policies and procedures in place for the monitoring of payments to
broker-dealers and other financial intermediaries for distribution-related
activities and the following non-distribution activities: sub-transfer agent,
administrative, and other shareholder servicing services.
The
Adviser or distributor, out of its own resources, and without additional cost to
a Fund or its shareholders, may provide additional cash payments or non-cash
compensation to Financial Intermediaries who sell shares of the Fund, including
affiliates of the Adviser. Such payments and compensation are in addition to the
service fees paid by the Funds. These additional cash payments are generally
made to Financial Intermediaries that provide shareholder servicing, marketing
support and/or access to sales meetings, sales representatives and management
representatives of the Financial Intermediary. Cash compensation may also be
paid to Financial Intermediaries for inclusion of a Fund on a sales list,
including a preferred or select sales list, in other sales programs or as an
expense reimbursement in cases where the Financial Intermediary provides
shareholder services to a Fund’s shareholders. The Adviser or distributor may
also pay cash compensation in the form of finder’s fees that vary depending on
the dollar amount of the shares sold.
The
Funds will make distributions of dividends and capital gains, if any, at least
annually. The Funds will make a distribution of any undistributed capital gains
earned during the 12-month period ended October 31 on or about
December 31 of each year. The Funds may make an additional payment of
dividends or distributions if it deems it desirable at other times during any
year.
The
Funds will reinvest all distributions in shares of the Funds unless you choose
the following options: (1) receive dividends in cash; and/or
(2) receive capital gains in cash. Dividends are taxable whether reinvested
in additional shares or received in cash. If you wish to change your
distribution option, write or call the Transfer Agent at least five days prior
to the record date for the distribution. If you elect to receive distributions
and/or capital gains paid in cash, and the U.S. Postal Service cannot deliver
your check, or if a 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 and to reinvest all subsequent distributions.
The
Funds have elected and intend to continue to qualify to be taxed as regulated
investment companies under Subchapter M of the Internal Revenue Code of 1986, as
amended (the “Code”). As regulated investment companies, the Funds will not be
subject to federal income tax if they distribute their income as required by the
tax law and satisfy certain other requirements that are described in the SAI.
The Funds generally operate in a manner such that they will not be liable for
federal income or excise taxes on taxable income and capital gains distributed
to shareholders. The Funds intend to make distributions of
ordinary
income and capital gains. In general, Fund distributions are taxable to you
(unless your investment is through a qualified retirement plan), as either
ordinary income or capital gain depending on the source of the Funds’ income.
The Funds’ distributions of short-term capital gains are taxable to you as
ordinary income. The Funds’ distributions of long-term capital gains are taxable
to you as long-term capital gains. The rate you pay on capital gains
distributions from the Funds will depend on how long the Funds held the
securities that generated the gains, not how long you owned your Fund shares.
There is no requirement that the Funds take into consideration any tax
implications when implementing their investment strategy. A portion of the
dividends paid to you by the Funds may be qualified dividends eligible for
taxation at long-term capital gain rates. An additional 3.8% federal tax on net
investment income applies to taxpayers with adjusted gross incomes above
$200,000 for single filers and $250,000 for married joint filers. You will be
taxed in the same manner whether you receive your dividends and capital gain
distributions in cash or reinvest them in additional Fund shares. Shareholders
should note that the Funds may make taxable distributions of income and capital
gains even when share values have declined.
Dividends
declared by the Funds in October, November or December to shareholders of record
on a specified date in such a month and paid during January of the following
year will be treated as paid in December for tax purposes. Each year, you will
receive a statement that shows the tax status of distributions you received the
previous year.
All
distributions generally reduce the NAV of a Fund’s shares by the amount of the
distribution. If you purchase shares prior to a distribution, the distribution
will be taxable to you even though economically it may represent a return of
your investment.
Sale
of your Fund shares is considered a taxable event for you. Depending on the
purchase and sale price of the shares you sell, and any other adjustments to
your tax basis for your shares, you may have a gain or a loss on the
transaction. You are responsible for any tax liabilities generated by your
transaction.
By
law, the Funds must withhold as backup withholding a percentage (currently 24%)
of your taxable distributions and redemption proceeds if you do not provide your
correct Social Security or taxpayer identification number and certify that you
are not subject to backup withholding, or if the Internal Revenue Service
instructs the Funds to do so.
For
taxable years beginning after 2017 and before 2025, non-corporate taxpayers
generally may deduct 20% of “qualified business income” derived either directly
or through partnerships or S corporations. For this purpose, “qualified business
income” generally includes ordinary dividends paid by a real estate investment
trust (“REIT”) and certain income from publicly traded partnerships. Regulations
recently adopted by the United States Treasury allow non-corporate shareholders
of a Fund to benefit from the 20% deduction with respect to net REIT dividends
received by the Fund if the Fund meets certain reporting requirements, but do
not permit any such deduction with respect to publicly traded
partnerships.
Additional
information concerning the taxation of the Funds and their shareholders is
contained in the Statement of Additional Information. Because each person’s tax
situation is unique, always consult your tax professional about federal, state,
local or foreign tax consequences of an investment in the Funds.
SHAREHOLDER
DERIVATIVE ACTIONS
The
governing instruments of the Funds state that shareholders have power to the
same extent as the stockholders of a Massachusetts business corporation as to
whether or not a court action, proceeding or claim should or should not be
brought or maintained derivatively or as a class action on behalf of the Trust
or the shareholders.
The
Trust’s Declaration of Trust provides that the Business Litigation Section of
the Superior Court of the Commonwealth of Massachusetts sitting in Suffolk
County, Massachusetts shall be the exclusive forum in which certain types of
litigation may be brought. Any person purchasing or otherwise acquiring or
holding any interest in shares of beneficial interest of the Trust shall be (i)
deemed to have notice of and consented to the provisions of this provision, and
(ii) deemed to have waived any argument relating to the inconvenience of the
judicial forum referenced above in connection with any action or proceeding
described in provision. This provision does not apply to federal security law
claims.
The
following tables show the Global Equity Fund’s and SMID Fund’s financial
performance for the periods shown. Certain information reflects financial
results for a single Fund share. “Total return” shows how much your investment
in the Fund would have increased or decreased during the period, assuming you
had reinvested all dividends and distributions. This information has been
audited by Tait, Weller & Baker LLP, an independent registered public
accounting firm. Its report and the Funds’ financial statements are included in
the Annual Report to shareholders for the most recent fiscal period ended
June 30, which is available upon request.
Trillium
ESG Global Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
FINANCIAL
HIGHLIGHTS For a capital share outstanding throughout each
year |
Retail
Class
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year
Ended June 30, |
|
2022 |
| 2021 |
| 2020 |
| 2019 |
| 2018 |
Net
asset value, |
|
|
|
|
|
| |
| |
beginning
of year |
$ |
65.97 |
|
| $ |
45.99 |
|
| $ |
44.81 |
|
| $ |
43.21 |
|
| $ |
39.44 |
|
INCOME
(LOSS) FROM INVESTMENT OPERATIONS: |
Net
investment income (loss)1 |
0.20 |
|
| 0.06 |
|
| 0.10 |
|
| 0.23 |
|
| 0.30 |
|
Net
realized and unrealized |
|
|
|
|
|
| |
| |
gain
(loss) on investments |
(11.64) |
|
| 21.00 |
|
| 2.19 |
|
| 3.09 |
|
| 4.52 |
|
Total
from investment operations |
(11.44) |
|
| 21.06 |
|
| 2.29 |
|
| 3.32 |
|
| 4.82 |
|
LESS
DISTRIBUTIONS: |
Distributions
from |
|
|
|
|
|
|
|
| |
net
investment income |
(0.03) |
|
| (0.07) |
|
| (0.24) |
|
| (0.25) |
|
| (0.17) |
|
Distributions
from |
|
|
|
|
|
|
|
| |
net
realized gain |
(1.79) |
|
| (1.01) |
|
| (0.87) |
|
| (1.47) |
|
| (0.88) |
|
Total
distributions |
(1.82) |
|
| (1.08) |
|
| (1.11) |
|
| (1.72) |
|
| (1.05) |
|
Net
asset value, end of year |
$ |
52.71 |
|
| $ |
65.97 |
|
| $ |
45.99 |
|
| $ |
44.81 |
|
| $ |
43.21 |
|
Total
return |
(17.94) |
% |
| 46.14 |
% |
| 5.02 |
% |
| 8.52 |
% |
| 12.28 |
% |
SUPPLEMENTAL
DATA: |
Net
assets, end of year (000’s omitted) |
$ |
232.5 |
|
| $ |
297.8 |
|
| $ |
217.8 |
|
| $ |
239.3 |
|
| $ |
242.4 |
|
Portfolio
turnover rate |
7 |
% |
| 10 |
% |
| 11 |
% |
| 16 |
% |
| 12 |
% |
SUPPLEMENTAL
DATA: |
Ratio
of expenses |
|
|
|
|
|
| |
| |
to
average net assets |
1.30 |
% |
| 1.30 |
% |
| 1.30 |
% |
| 1.33 |
% |
| 1.34 |
% |
Ratio
of net investment income |
|
|
|
|
|
| |
| |
to
average net assets |
0.30 |
% |
| 0.11 |
% |
| 0.22 |
% |
| 0.55 |
% |
| 0.70 |
% |
1Calculated
using the average shares outstanding method.
Trillium
ESG Global Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
FINANCIAL
HIGHLIGHTS For a capital share outstanding throughout each
year |
Institutional
Class
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year
Ended June 30, |
|
2022 |
| 2021 |
| 2020 |
| 2019 |
| 2018 |
Net
asset value, beginning of year |
$ |
65.70 |
|
| $ |
45.80 |
|
| $ |
44.61 |
|
| $ |
43.05 |
|
| $ |
39.34 |
|
INCOME
(LOSS) FROM INVESTMENT OPERATIONS: |
Net
investment income (loss)1 |
0.41 |
|
| 0.23 |
|
| 0.22 |
|
| 0.37 |
|
| 0.43 |
|
Net
realized and unrealized |
|
|
|
|
|
| |
| |
gain
(loss) on investments |
(11.61) |
|
| 20.89 |
|
| 2.20 |
|
| 3.03 |
|
| 4.50 |
|
Total
from investment operations |
(11.20) |
|
| 21.12 |
|
| 2.42 |
|
| 3.40 |
|
| 4.93 |
|
LESS
DISTRIBUTIONS: |
|
|
|
|
|
| |
| |
Distributions
from |
|
|
|
|
|
|
|
| |
net
investment income |
(0.21) |
|
| (0.21) |
|
| (0.36) |
|
| (0.37) |
|
| (0.34) |
|
Distributions
from |
|
|
|
|
|
|
|
| |
net
realized gain |
(1.79) |
|
| (1.01) |
|
| (0.87) |
|
| (1.47) |
|
| (0.88) |
|
Total
distributions |
(2.00) |
|
| (1.22) |
|
| (1.23) |
|
| (1.84) |
|
| (1.22) |
|
Net
asset value, end of year |
$ |
52.50 |
|
| $ |
65.70 |
|
| $ |
45.80 |
|
| $ |
44.61 |
|
| $ |
43.05 |
|
Total
return |
(17.70) |
% |
| 46.52 |
% |
| 5.34 |
% |
| 8.81 |
% |
| 12.59 |
% |
SUPPLEMENTAL
DATA: |
|
|
|
|
|
| |
| |
Net
assets, end of year (000’s omitted) |
$ |
608.1 |
|
| $ |
622.1 |
|
| $ |
360.6 |
|
| $ |
319.9 |
|
| $ |
261.9 |
|
Portfolio
turnover rate |
7 |
% |
| 10 |
% |
| 11 |
% |
| 16 |
% |
| 12 |
% |
SUPPLEMENTAL
DATA: |
|
|
|
|
|
| |
| |
Ratio
of expenses |
|
|
|
|
|
| |
| |
to
average net assets |
1.01 |
% |
| 1.02 |
% |
| 1.03 |
% |
| 1.05 |
% |
| 1.07 |
% |
Ratio
of net investment income |
|
|
|
|
|
| |
| |
(loss)
to average net assets |
0.65 |
% |
| 0.40 |
% |
| 0.49 |
% |
| 0.87 |
% |
| 1.00 |
% |
1Calculated
using the average shares outstanding method.
Trillium
ESG Small/Mid Cap Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
FINANCIAL
HIGHLIGHTS For a capital share outstanding throughout each
year/period |
Institutional
Class
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year
Ended June 30, |
|
2022 |
| 2021 |
| 2020 |
| 2019 |
|
2018 |
|
Net
asset value, |
|
|
|
|
|
| |
|
|
|
beginning
of year |
$ |
16.96 |
|
| $ |
11.01 |
|
| $ |
12.36 |
|
| $ |
12.97 |
| |
$ |
11.46 |
| |
INCOME
FROM INVESTMENT OPERATIONS: |
Net
investment income (loss)1 |
(0.02) |
|
| (0.02) |
|
| 0.04 |
|
| 0.05 |
| |
0.002 |
|
Net
realized and unrealized |
|
|
|
|
|
| |
|
|
|
gain
(loss) on investments |
(2.82) |
|
| 5.99 |
|
| (0.90) |
|
| (0.13) |
|
| 1.73 |
| |
Total
from investment operations |
(2.84) |
|
| 5.97 |
|
| (0.86) |
|
| (0.08) |
|
| 1.73 |
| |
LESS
DISTRIBUTIONS: |
|
|
|
|
|
| |
|
|
|
Distributions
from |
|
|
|
|
|
|
|
|
| |
net
investment income |
— |
|
| (0.02) |
|
| (0.05) |
|
| (0.02) |
|
| — |
| |
Distributions
from |
|
|
|
|
|
|
|
|
| |
net
realized gain |
(0.39) |
|
| — |
|
| (0.45) |
|
| (0.51) |
|
| (0.22) |
| |
Total
distributions |
(0.39) |
|
| (0.02) |
|
| (0.50) |
|
| (0.53) |
|
| (0.22) |
| |
Proceeds
from redemption fees |
0.002 |
|
0.002 |
| 0.01 |
|
|
0.002 |
|
0.002 |
|
Net
asset value, end of year |
$ |
13.73 |
|
| $ |
16.96 |
|
| $ |
11.01 |
|
| $ |
12.36 |
| |
$ |
12.97 |
| |
Total
return |
(17.16) |
% |
| 54.23 |
% |
| (7.34) |
% |
| 0.32 |
% |
| 15.14 |
% |
|
SUPPLEMENTAL
DATA: |
|
|
|
|
|
| |
|
|
|
Net
assets, end of year |
|
|
|
|
|
| |
|
|
|
(000’s
omitted) |
$ |
33.2 |
|
| $ |
31.7 |
|
| $ |
14.0 |
|
| $ |
19.9 |
| |
$ |
17.0 |
| |
Portfolio
turnover rate |
21 |
% |
| 20 |
% |
| 35 |
% |
| 27 |
% |
| 19 |
% |
|
RATIO
OF EXPENSES TO AVERAGE NET ASSETS: |
Before
fees waived/recouped |
|
|
|
|
|
| |
|
|
|
and
expenses absorbed |
1.36 |
% |
| 1.77 |
% |
| 1.93 |
% |
| 1.85 |
% |
| 2.19 |
% |
|
After
fees waived/recouped |
|
|
|
|
|
| |
|
|
|
and
expenses absorbed |
0.98 |
% |
| 0.98 |
% |
| 0.98 |
% |
| 0.98 |
% |
| 0.98 |
% |
|
RATIO
OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS: |
Before
fees waived/recouped |
|
|
|
|
|
| |
|
|
|
and
expenses absorbed |
(0.50) |
% |
| (0.94) |
% |
| (0.61) |
% |
| (0.47) |
% |
| (1.21) |
% |
|
After
fees waived/recouped |
|
|
|
|
|
| |
|
|
|
and
expenses absorbed |
(0.12) |
% |
| (0.15) |
% |
| 0.34 |
% |
| 0.40 |
% |
|
0.00%3 |
|
1Calculated
using the average shares outstanding method.
2Does
not round to $0.01 or $(0.01), as applicable.
3Does
not round to $0.01% or (0.01%), as applicable.
The
Funds collect non-public information about you from the following
sources:
•Information
we receive about you on applications or other forms;
•Information
you give us orally; and
•Information
about your transactions with us or others.
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. We will provide unaffiliated third
parties with only the information necessary to carry out their assigned
responsibilities. 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 information with the same high degree of
confidentiality.
In
the event that you hold shares of a Fund through a financial intermediary,
including, but not limited to, a broker-dealer, bank, or trust company, the
privacy policy of your financial intermediary would govern how your nonpublic
personal information would be shared with unaffiliated third
parties.
You
can find more information about the Funds in the following
documents:
Statement
of Additional Information (“SAI”): The
SAI provides additional details about the investments and techniques of the
Funds and certain other additional information. A current SAI is on file with
the SEC and is herein incorporated into this Prospectus by reference. It is
legally considered a part of this Prospectus.
Annual/Semi-Annual
Reports:
Additional information about the Funds’ investments is available in the Funds’
Annual and Semi-Annual Reports to shareholders. In the Funds’ Annual Report, you
will find a discussion of market conditions and investment strategies that
significantly affected the Funds’ performance during the most recent fiscal
year.
You
can obtain free copies of these documents, request other information and discuss
your questions about the Funds by contacting the Funds at:
Trillium
Funds
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701
866.209.1962
http://www.trilliummutualfunds.com
Shareholder
reports and other information about the Funds are available:
▪Free
of charge from the Funds’ website at
http://www.trilliummutualfunds.com.
▪Free
of charge from the SEC’s EDGAR database on the SEC’s website at
http://www.sec.gov.
(The
Trust’s SEC Investment Company Act file number is 811-05037)